LRT Capital Management, an investment management firm, released its October 2022 investor letter. A copy of the same can be downloaded here. The results in October were excellent, and its LRT Economic Moat strategy returned 7.38%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

LRT Capital discussed stocks like Texas Pacific Land Corporation (NYSE:TPL) in the investor letter. Headquartered in Dallas, Texas, Texas Pacific Land Corporation (NYSE:TPL) is in the business of land and resource management and water services and business operations. On November 16, 2022, Texas Pacific Land Corporation (NYSE:TPL) stock closed at $2,626.06 per share. One-month return of Texas Pacific Land Corporation (NYSE:TPL) was 28.10% and its shares gained 105.09% of their value over the last 52 weeks.  Texas Pacific Land Corporation (NYSE:TPL) has a market capitalization of $20.232 billion.

LRT Capital made the following comment about Texas Pacific Land Corporation (NYSE:TPL) in its October investor letter:

"Long time readers will know that we rarely invest in commodity businesses. However, there are periods in the market where commodity-based businesses outperform the broad indexes by a wide margin. Therefore, to have balance in the portfolio, we have long searched for a competitively advantaged company in the commodity space. We believe that Texas Pacific Land Corporation (NYSE:TPL), meets that criterion. Formed out of assets of formerly bankrupt railroads, TPL controls the largest acreage of land in the Permian basin – the center of the US shale oil industry. The company has two main sources of income: 1) royalties from oil & gas extracted on its properties – essentially a free call option on future oil prices and production; and 2) a water business which develops water resources and sells services to the fracking industry. We see TPL as an effective way to diversify the portfolio into a commodity exposed business that has a history of smart capital allocation and low risk of financial distress during periods of low oil prices. The company has no debt, and $281 million in cash. The company uses most of its cash flows to pay dividends and repurchase shares."

Image: Texas Pacific Land Trust Office/Credit: Google Maps

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 22 in the previous quarter.