Wedgewood Partners, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, Wedgewood Composite’s net return was 5.5% compared to the Standard & Poor’s 2.4%, the Russell 1000 Growth Index’s 7.1%, and the Russell 1000 Value Index’s -2.0% return for the same period. Year to date, the composite returned 29.1% compared to the 25.0%, 33.4%, and 14.4% returns for the indexes, respectively. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Wedgewood Partners highlighted stocks like Texas Pacific Land Corporation (NYSE:TPL), in the fourth quarter 2024 investor letter. Texas Pacific Land Corporation (NYSE:TPL) engages in land and resource management, as well as water services and operations businesses. The one-month return of Texas Pacific Land Corporation (NYSE:TPL) was 25.42%, and its shares gained 177.89% of their value over the last 52 weeks. On January 15, 2025, Texas Pacific Land Corporation (NYSE:TPL) stock closed at $1,374.99 per share with a market capitalization of $31.59 billion.
Wedgewood Partners stated the following regarding Texas Pacific Land Corporation (NYSE:TPL) in its Q4 2024 investor letter:
“Texas Pacific Land Corporation (NYSE:TPL) was a top contributor to performance during both the quarter and the year. Texas Pacific Land continues to be an extraordinarily unique and profitable business. The Company owns over 800,000 surface acres of land in the Texas Permian Basin. The vast majority of this land was acquired in the year 1888 and more recently (i.e. the last 15 years) this land became highly productive oil and gas royalty acreage thanks to modern drilling and completion techniques and technologies. Despite all of these deserved accolades, we liquidated our positions after the stock rallied quite sharply upon being consecutively added to two major stock indexes over the past seven months. The earnings power of the Company has not substantially changed over the past seven months (for better or worse). However, passive indexes and the traders and managers that closely follow and benchmark against those indexes effectively tripled their appraisal of the Company’s corporate value, while that value never changed. We will continue to monitor Texas Paci7ic Land from the sidelines and would hope to invest in them again, perhaps after the market’s “animal spirits” subside.”
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 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Texas Pacific Land Corporation (NYSE:TPL) at the end of the third quarter which was 21 in the previous quarter. In the third quarter of 2024, Texas Pacific Land Corporation’s (NYSE:TPL) consolidated revenues came to about $174 million. 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 S&P 500 stocks on Jim Cramer’s radar. GreenWood Investors sold Texas Pacific Land Corporation (NYSE:TPL) in Q4 2024. In addition, please check out our hedge fund investor letters Q4 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.