Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Russell Midcap® Index fell in Q2 as investors prioritized mega-cap technology businesses over smaller ones. IT, communications, and utilities were among the midcap industries with significant links to AI and attractive returns, as they matched the power requirements of AI servers. Surprisingly, the generally less cyclical consumer staples and healthcare sectors underperformed despite the index’s negative returns in the quarter. Overall, the U.S. economy appears steady going into the second half of the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Scout Mid Cap Fund highlighted stocks like Texas Pacific Land Corporation (NYSE:TPL), in the second quarter 2024 investor letter. Texas Pacific Land Corporation (NYSE:TPL) engages in the land and resource management, as well as water services and operations. The one-month return of Texas Pacific Land Corporation (NYSE:TPL) was -3.42%, and its shares gained 31.11% of their value over the last 52 weeks. On September 9, 2024, Texas Pacific Land Corporation (NYSE:TPL) stock closed at $791.52 per share with a market capitalization of $18.19 billion.
Carillon Scout Mid Cap Fund stated the following regarding Texas Pacific Land Corporation (NYSE:TPL) in its Q2 2024 investor letter:
“Texas Pacific Land Corporation (NYSE:TPL) rounds out the top five contributors. Standard & Poor’s announced in early June that the company will join the S&P MidCap 400® Index. Texas Pacific Land has relatively illiquid stock, so this announcement created significant buying pressure as traders sought to get ahead of index funds’ upcoming forced ownership. At the end of the quarter we maintained a small allocation to the company because we like the oil and gas mineral rights business model.”
A pipeline running through a rural landscape, a reminder of the companies oil and gas Royalty Interest.
Texas Pacific Land Corporation (NYSE:TPL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Texas Pacific Land Corporation (NYSE:TPL) at the end of the second quarter which was 24 in the previous quarter. Consolidated revenues of Texas Pacific Land Corporation (NYSE:TPL) for Q2 2024 were approximately $172 million and consolidated adjusted EBITDA was $153 million, and adjusted EBITDA margin was 89%. While we acknowledge the potential of Texas Pacific Land Corporation (NYSE:TPL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Texas Pacific Land Corporation (NYSE:TPL) and shared the list of best land and timber stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
