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Lucas Capital Management Bets Big on Energy in Q4

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In the most recent 13F filing, Russell Lucas Lucas Capital Management revealed that over 50% of its equity portfolio was invested in the energy sector. The New Jersey-based Lucas Capital focuses on the energy markets, specifically in North American oil and gas opportunities. It has about $730 million in assets under management. The value of Lucas Capital’s stood at around $172.5 million at the end of September. In this article, we will take a look at the fund’s top holdings, in term of value for the third quarter.


Russell Lucas
Russell Lucas
Lucas Capital Management

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#5 Johnson & Johnson (NYSE:JNJ)

Shares held (as of September 30): 51,075

Total Value (as of September 30): $4.8 million

Percent of Portfolio (as of September 30): 2.76%

Lucas Capital inched up its position in Johnson & Johnson (NYSE:JNJ) by 1% during the quarter. Johnson & Johnson has recently entered into an agreement to acquire Novira Therapeutics, which is engaged in developing novel therapies for curative treatment of chronic hepatitis B virus (HBV) infection. The deal is expected to close during the fourth quarter. Johnson & Johnson (NYSE:JNJ)’s earnings for the third quarter declined to $3.4 billion, compared to $4.74 billion in a year-ago period. Shares of Johnson & Johnson (NYSE:JNJ) have declined by 3.49% year-to-date. Another investor that sees value in Johnson & Johnson is Ken Fisher’s Fisher Asset Management, which held 10.69 million shares as of the end of September.

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#4 B&G Foods Inc. (NYSE:BGS)

Shares held (as of September 30): 143,567

Total Value (as of September 30): $5.2 million

Percent of Portfolio (as of September 30): 3.03%

Lucas Capital’s stake in B&G Foods Inc. (NYSE:BGS) was reduced by 8% during the third quarter. B&G Foods is a $2.08-billion market cap company engaged in selling a diversified portfolio of branded shelf-stable foods across the United States, Canada and Puerto Rico. The company’s stock is up over 20% year-to-date. Recently, B&G Foods Inc. (NYSE:BGS) has acquired the Green Giant and Le Sueur brands from General Mills, Inc. (NYSE:GIS) for $765 million in cash plus an inventory adjustment at closing of about $58 million. B&G Foods Inc. (NYSE:BGS) turned to a profit for the third quarter, as the company reported income of $19.8 million, or $0.34 per share, compared to a loss of $4.4 million, or $0.08 per share a year earlier. B&G Foods was also a favorite stock of Ric Dillon’s Diamond Hill Capital, which owned 1.88 million shares of the company at the end of June.

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On the next page, we will discuss the top three picks of Lucas Capital Management, namely, Dorchester Minerals LP (NASDAQ:DMLP), Apple Inc. (NASDAQ:AAPL), and Sabine Royalty Trust (NYSE:SBR).

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