Should You Invest in LandBridge Company LLC (LB)?

Investment management company Ave Maria recently released its “Ave Maria Focused Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 5.65% compared to the S&P MidCap 400 Growth Index’s 4.63% return and the S&P500 Index’s 5.89% return. The operational performance of the Fund’s holdings has been strong throughout 2024. Unfortunately, the stock prices of some of these holdings have not mirrored their robust operating performance. The firm expects that, over time, the operating performance and stock price performance will align. You can check the fund’s top 5 holdings for its best picks for 2024.

Ave Maria Focused Fund highlighted stocks like LandBridge Company LLC (NYSE:LB), in the third quarter 2024 investor letter. LandBridge Company LLC (NYSE:LB) manages land and resources to support oil and natural gas development in the United States. The one-month return of LandBridge Company LLC (NYSE:LB) was 41.03%, and its shares gained 115.06% of their value over the last three months. On November 27, 2024, LandBridge Company LLC (NYSE:LB) stock closed at $79.12 per share with a market capitalization of $5.788 billion.

Ave Maria Focused Fund stated the following regarding LandBridge Company LLC (NYSE:LB) in its Q3 2024 investor letter:

“LandBridge Company LLC (NYSE:LB): LandBridge is a land management company that operates in the Permian Basin, where it owns ~220,000 acres. Similar to another Fund holding, Texas Pacific Land Corp., it receives royalties from oil and gas produced on its land. It also sells water for the fracking of oil and gas wells and receives payments for the surface use of its land. LandBridge is at the forefront of bringing data center operators to the Permian Basin, given the area’s abundance of land, water, and low-cost natural gas. Since the Fund purchased a position, LandBridge’s stock price is up 130% through the end of the third quarter.”

10 Most Promising Energy Stocks According to Hedge Funds

A row of massive oil rigs in a desert landscape, against a setting sun.

LandBridge Company LLC (NYSE:LB) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held LandBridge Company LLC (NYSE:LB) at the end of the third quarter which was 15 in the previous quarter. LandBridge Company LLC’s (NYSE:LB) third quarter revenues increased to $28.5 million, up 9.8% sequentially and 60% year-over-year. While we acknowledge the potential of LandBridge Company LLC (NYSE:LB) 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 LandBridge Company LLC (NYSE:LB) and shared the list of best performing energy stocks in 2024. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.