Welcome, ETFs

PBSM (0.14%), OSCV (1.06%), IUSS (0.09%), MGMT (2.77%) all appear to have taken positions in Texas Pacific Land Corp as of late. OSCV, IUSS, and MGMT appear to be an actively managed funds. PBSM is a passive fund that tracks the MSCI USA Small Cap Index. The commonality amongst all of these funds is a focus on small cap stocks.

To be sure, these are tiny positions and are in no way responsible for the recent move in share price. That said, these ETFs report positioning daily so as to facilitate create/redeems. Traditional MFs (active and passive) and some active ETFs are not required to report as frequently. We’ll get more clarity after 3/31 filings roll in.

Fun fact: As of this writing, the market cap of TPL is $9.1B. There are currently 36 constituents in the S&P500 with market capitalizations smaller than that of TPL.

12 thoughts on “Welcome, ETFs

  1. Interesting (thanks), not sure why funds picking it up so quickly is surprising to me.

    Wonder what is driving the ‘surge’ in price. It cant only be oil near $60/bbl. Maybe the quality of the balance sheet and assets that reprice with inflation make it a good place if fiscal+monetary polices gets out of hand? Or maybe its just the country is awash in cash and its gotta slosh somewhere and tech already took their share?

    Like

      • Yeah Mike, I have to agree that operations taking place on private lands in an oil friendly state is one of the reasons to have held this prior to the election. But I see the second reason you state as the one more likely to be driving share prices higher currently.
        Personally, I like the balance sheet aspects of this business model, that it holds rights to real assets and the relatively simple mechanics (with the exception of the water side) of how they make money for this current economic environment . the only question is when we have reached fully valued?

        Liked by 1 person

  2. So does the conversion change the fundamental purpose of the trust? Namely to retire shares? Or in their new structure do they not want to do that and do they become active instead of passive? Meaning do they go out and purchase land and make deals to acquisitions?

    Liked by 1 person

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