Ayalon (4D) Global Stocks, managed by Ayalon Trust Funds Ltd. on Texas Pacific Land Corporation
Thesis
Texas Pacific Land remains a highly profitable long-term holding that earns royalties from oil and water resources on its Texas land. The manager sees an additional source of upside from the possibility that data centers will be built on its acreage, potentially creating a new stream of profits. The fund has owned the shares for more than a decade and views the business as a durable compounder rather than a trading position. It explicitly intends to hold the shares for many more years.
“We intend to hold on to our shares for many more years, along with our other Compounders.”
Key risks
- Oil-related earnings remain exposed to energy-sector cyclicality
- The prospective data-center development is not guaranteed