• Peter Doyle’s Kinetic Paradigm Fund rose 39% in November, leading all funds.
• The fund’s success is based on a 65% stake in Texas Pacific Land Trust.
• Doyle is the BI Investor of the Month for November after also receiving this distinction in October.

For the second consecutive month, Peter Doyle of Horizon Kinetics is BI’s Investor of the Month.

And it wasn’t even close.

After its Kinetic Paradigm fund (WWNPX) brought in 24% in October alone, you would think this would be a tough act to follow.

But Doyle not only repeated his performance, he far exceeded it. The fund is up 39% so far in November, bringing its year-to-date return to 165%. The next closest fund was the Morgan Stanley Institutional Inception Fund (MSSLX), up 25% so far for the month, according to data from Lipper and Dow Jones.

The secret to WWNPX’s success lies in its heavy concentration in a single title: Texas Pacific Land (BPD). It represents 65% of the fund and is up 201% this year.

TPL is a company that owns a lot of land in West Texas and collects royalties from oil companies looking to drill there. The territory is also becoming a hot spot for new data centers used to boost artificial intelligence capabilities, in part due to the region’s low energy costs. The company also earns royalties by leasing land for data centers.

“They own valuable real estate, and I know that real estate isn’t going anywhere. And I know people want to build AI data centers, and I know that’s the place logical for this to happen in a very important context.” way,” Doyle told BI last month.

He added: “If 100% of my net worth was in BPD, I would sleep just fine. That’s how good I think it is.”

WWNPX’s second largest holding is the Grayscale Bitcoin Trust (BTC) at 8.8%.

Doyle’s fund has not outperformed recently. Over the last five years, that’s an increase of 283%. Over the past 15 years, the return has been 729%. The S&P 500, for comparison, is up 90% and 448% over these respective periods.

TPL has also run other funds that Doyle manages to outperform. This is by far the biggest holding in the Kinetic Market Opportunities Fund (KMKNX) and the Small Cap Opportunities Fund (KSCYX), both up more than 120% since the start of the year.

While high concentration levels can lead to impressive performance for a fund, they can also make it vulnerable to declines if an individual stock begins to underperform. Time will tell how long Doyle’s impressive run with BPD can continue. He said one of the main reasons for the high concentration was TPL’s huge advance, despite its efforts to reduce the position.

Investor of the Month criteria includes: those who are U.S.-listed mutual fund or ETF managers; those whose fund outperformed its peers in a given month; and those whose fund outperforms a benchmark index (in most cases this will be the S&P 500) on a rolling 12-month basis. Leveraged funds are not taken into account.