Russell Lucas runs Lucas Capital Management, a fund that has recently revealed its equity portfolio as of the end of the first quarter of 2015 and which is mainly focused on the energy market, specifically in North American oil and gas opportunities. Russell Lucas holds a Bachelor of Arts degree in Economics obtained in 1982 from Lehigh University in Bethlehem, Pennsylvania. Lucas Capital Managemeny was founded in 1996 and is headquartered in Red Bank, NJ with an additional office in Northport.
According to the latest 13F filing, Lucas Capital Management’s equity portfolio is valued at $247.89 million and the fund holds a total of 131 long positions. As alluded to, the fund has a lot of exposure to the energy sector, which amasses nearly 70% of the total value of the portfolio, while its largest holdings are represented by Sabine Royalty Trust (NYSE:SBR), Dorchester Minerals LP (NASDAQ:DMLP), Plains GP Holdings LP (NYSE:PAGP), Apple Inc. (NASDAQ:AAPL) and Noble Energy, Inc. (NYSE:NBL).
The reason we analyze Lucas’ 13F filings, alongside over 700 other prominent investors is because we determined that these filings can provide some investment opportunities despite a maximum delay of 45 days for each filing. According to our backtests, the 50 most popular large-cap stocks among hedge funds had a monthly alpha of about 6.0 basis points per month between 1999 and 2012, but underperformed the market by around 7.0 basis points per month. On the other hand, the 15 most popular small-cap stocks among hedge funds delivered a monthly alpha of 80 basis points and beat the market by nearly one percentage point per month. We have been tracking the performance of these stocks in real-time since the end of August 2012 and our system has beaten the market by around 80 percentage points (137% return vs. S&P 500′s 57% gain) over the last 32 months (see more details here).
Lucas Capital Management’s largest position is in Sabine Royalty Trust (NYSE:SBR), with the fund reporting ownership of nearly 308,800 shares valued at $12.15 million in its 13F filing. While the investor has cut the number of shares owned by 3% over the quarter, the stock price of Sabine Royalty Trust (NYSE:SBR) has appreciated by 13% during the first three months of 2015. Some of Sabine Royalty Trust (NYSE:SBR)’s other shareholders are Jim Simons’ Renaissance Technologies, Roger Ibbotson’s Zebra Capital Management, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
Dorchester Minerals LP (NASDAQ:DMLP) represents Lucas Capital Management’s second-largest position, the investor holding 465,700 shares of the company with a value of $10.59 million. Dorchester Minerals LP (NASDAQ:DMLP) is a Master Limited Partnership, which means that the company pays a solid dividend, which amounts to $0.31 for the first quarter (down from $0.49) and gives the stock a yield of over 7%. Similar to Sabine Royalty Trust, Lucas is the largest shareholder of Dorchester Minerals LP (NASDAQ:DMLP), among the funds that we track, followed by David Atterbury’s Whetstone Capital Advisors and Renaissance Technologies, which own much less significant stakes as per their latest 13F filings.
