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Lucas Capital Management Loves Energy Stocks and Apple Inc (AAPL)

Russell Lucas’ Lucas Capital Management has filed its 13F with the SEC for the reporting period of June 30. Lucas Capital Management, which is known for its investments in the energy market, has more than $750 million worth of assets under management. Russell Lucas, along with his father George B. Lucas Jr., founded the firm in 1996. The hedge fund manager reported a public equity portfolio valued at $225.02 million, which was down by 9.23% in comparison to the previous reporting period. The investment firm has 62% of its equity investments in the energy sector and its top ten stock holdings account for 29.09% of its overall portfolio. Sabine Royalty Trust (NYSE:SBR), Dorchester Minerals LP (NASDAQ:DMLP), Apple Inc. (NASDAQ:AAPL), and Whiting Petroleum Corp (NYSE:WLL) were the largest equity positions held by Russell Lucas at the end of the second quarter.

Apple Inc. (NASDAQ:AAPL), Apple TV, Remote control, Tv, Video, Technology, digital, black, editorial,

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We don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 123%, which is more than 66 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

Russell Lucas
Russell Lucas
Lucas Capital Management

Lucas Capital Management had its largest equity investment in Sabine Royalty Trust (NYSE:SBR) as of June 30, holding 265,021 shares of the company valued at $10.01 million. However, the investment manager reduced its position in the Dallas, Texas-based energy company during the second quarter, dropping 43,378 shares during the period. Sabine Royalty Trust distributes its monthly revenues to its unit holders and Southwest Bank is the trustee of the express trust. The trust owns nearly 5,400 tracts of land in Florida, Louisiana, Texas, Mississippi, Oklahoma, and New Mexico. At the end of the first quarter of 2015, Sabine Royalty Trust (NYSE:SBR) reported net income of $15.11 million, out of which, $14.56 million was distributed among its unit holders through monthly distributions. These figures came in higher in comparison to the $13.78 million and distributable income of $13.17 million from a year ago. Ken Griffin’s Citadel Investment Group was another major shareholder of the company, owning 30,217 shares valued at $1.19 million as of March 31.

A similar investing sentiment was visible in Lucas Capital’s stake in Dorchester Minerals LP (NASDAQ:DMLP), as the investment manager cut its stake in the energy company by 7% by the end of the second quarter, with reported ownership of 429,042 shares valued at $9.18 million. The firm is involved in the ownership, administration, and acquisition of Royalty Properties and Net Profits Interests (NPIs). The cash distribution for the second quarter of fiscal 2015 came in lower than the prior year quarter, with distribution of $0.17 compared to $0.49 from one year ago. The firm reported net cash receipts of $7.22 million for the quarter, which was much lower than the cash receipts of $17.3 million year-over-year. The shares of Dorchester Minerals LP (NASDAQ:DMLP) are down by 30.4% year-to-date, lowering the firm’s market cap to $521.79 million. Whetstone Capital Advisors, led by David Atterbury, is among the major stockholders of the company with 102,140 shares of Dorchester Minerals LP (NASDAQ:DMLP) valued at $2.32 million in its portfolio.

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