Horizon Kinetics, the US-based asset manager known for its value-oriented approach, has acquired approximately $413m (around £320m) of stock in Texas Pacific Land Corporation, according to a regulatory filing. The firm already held roughly a 10% stake in the company, making this latest purchase a significant vote of confidence in the landowner's business model.
Texas Pacific Land, which traces its roots to the 19th-century railroad land grants, is one of the largest private landowners in the United States, with holdings concentrated in the Permian Basin of West Texas. The company generates revenue from oil and gas royalties, surface leases, and water sales, benefiting from the region's booming energy production. Its shares have been a standout performer in recent years, driven by rising energy demand and limited land availability.
For UK investors, the move highlights the continued appeal of natural resource assets amid global supply constraints and inflationary pressures. While Texas Pacific Land is not directly listed on the FTSE, many British pension funds and investment trusts hold US equities as part of their diversified portfolios. Analysts suggest that the purchase by Horizon Kinetics — a firm with a reputation for concentrated, long-term bets — may prompt other institutional investors to reassess their exposure to real asset plays.
“This is a clear signal that sophisticated value managers see enduring worth in land and resource rights, particularly in energy-rich jurisdictions,” said a UK-based portfolio manager who tracks US equities. “For UK pension holders, indirect exposure to such assets can provide a hedge against inflation and currency volatility, though it also carries sector-specific risks tied to oil prices and regulatory changes.”
The broader US equity market has been mixed in recent sessions, with the S&P 500 trading around 5,580 points, down 0.3% on the day, as investors weigh corporate earnings against interest rate uncertainty. Texas Pacific Land shares closed at $1,650, up 1.2% on the news, reflecting the market's positive reception to insider buying. The FTSE 100, meanwhile, edged 0.1% higher to 8,210, supported by gains in energy and mining stocks.