Yahoo Finance Is it a Great Move to Invest in Pacific Coast Oil Trust (ROYTL)?
Cedar Creek Partners, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. Cedar Creek has achieved an average annual return of 14.5% over its 17-year history, considering fees and expenses. Since its inception, Cedar Creek has delivered cumulative returns of 1,006.6%, net of fees and expenses. As of the end of September 2023, the fund's holdings were trading at 6.2 times its earnings estimate for the upcoming year and 5.1 times expected earnings, factoring in cash at the respective businesses. Take a moment to review the fund's top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Cedar Creek Partners mentioned Pacific Coast Oil Trust (NYSE:ROYTL) and explained its insights for the company. Pacific Coast Oil Trust (NYSE:ROYTL) is a Houston, Texas-based statutory trust with a $15.8 million market capitalization. Pacific Coast Oil Trust (NYSE:ROYTL) delivered a -10.87% return since the beginning of the year, while its 12-month returns are down by -2.38%. The stock closed at $0.41 per share on November 3, 2023.
Here is what Cedar Creek Partners has to say about Pacific Coast Oil Trust (NYSE:ROYTL) in its Q3 2023 investor letter:
"Pacific Coast Oil Trust (ROYTL) units decreased from $0.47 to $0.455 per unit in the quarter. The special meeting was held on July 12. 96% of unitholders voting supported removal of Bank of New York Mellon as trustee. 93% of those who voted supported allocating the costs to the Trust instead of having them borne by the group who called the Special Meeting; however, it needed 75% of all units outstanding to be in favor and it only achieved 59% due to the 66% turnout. We were very pleased with the result. It was an important first step and we look forward to unitholders being better represented and ultimately being treated fairly, which we do not think is currently happening.
An arbitration decision was announced recently which provided mixed results – PCEC was allowed to assess legal fees to the Trust up through liquidation but not against proceeds from a sale, while Bank of New York Mellon was allowed to insist on waiting for completion of the Trust’s audits for the last four years before putting the net profit interest up for sale. We don’t see how the audits will magically be completed in the coming months if they haven’t been able to complete them up until now. BNY Mellon has not communicated what is causing the delay. The recent increase in oil prices was also a positive event. It allows for faster repayment of the ARO that has been assessed by PCEC. In a worst case situation of dissolution it should result in a higher valuation for the net profits interest."
A close-up of a hand signing a mortgage agreement, representing the company's consumer finance operations.
Our calculations show that Pacific Coast Oil Trust (NYSE:ROYTL) failed to make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Pacific Coast Oil Trust (NYSE:ROYTL) delivered a -31.67% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
