Ayalon Trust Fund (4D) Global Stocks on Texas Pacific Land Corporation
Thesis
Texas Pacific Land remains a highly profitable long-term holding supported by royalties from oil and water resources on its Texas acreage. The fund also sees a meaningful optionality from potential data-center construction on its land, which could generate additional annual profits. The position has been owned for more than a decade and the manager intends to continue holding it for many more years. The thesis combines existing royalty economics with potential monetization of land for new infrastructure uses.
“We intend to hold on to our shares for many more years, along with our other Compounders.”
Key risks
- The stock remains exposed to the cyclicality affecting oil-related companies