A Golden Trim: Louisbourg & OR Royalties

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Louisbourg Investments, an institution not entirely unfamiliar with the vagaries of the market, recently parted with 73,600 shares of OR Royalties. A mere $2.58 million, one supposes, a sum that would scarcely register in the accounts of a more ambitious undertaking. Still, a trim, as the moderns say.

A Modest Reduction

The transaction, dutifully recorded in an SEC filing on January 16th, represents a reduction in Louisbourg’s holding of OR Royalties. The fund retains a respectable 219,271 shares, representing 1.55% of their reported assets under management. One pictures a portfolio manager, not panicking, merely…rebalancing. A tedious exercise, but necessary, especially when dealing with assets that have exhibited a disconcerting tendency to appreciate.

The Usual Suspects

Louisbourg’s remaining holdings, as revealed by the same filing, read like a catalogue of respectable, if unexciting, investments. Canadian National Railways, Wheaton Precious Metals, and, of course, the ubiquitous Google and Microsoft. The very pillars of modern finance. One might almost suspect a lack of imagination.

A Golden Run

OR Royalties, it must be admitted, has enjoyed a rather exceptional year. The share price, as of January 15th, stood at $40.84, a staggering 119.5% increase over the previous twelve months. A performance that rather puts the S&P’s modest 17% gain to shame. The company itself, with a market capitalization of $7.75 billion and revenues of $243.65 million, appears, on the surface, to be a perfectly sound concern. They deal in precious metals royalties, streams, and related interests, primarily focused on the Canadian Malartic mine – a venture one imagines involving a great deal of mud and even more money.

A Snapshot of the Enterprise

  • Price (as of January 15): $40.84
  • Market capitalization: $7.75 billion
  • Revenue (TTM): $243.65 million
  • Net income (TTM): $147.95 million

OR Royalties, one gathers, operates on the principle of acquiring rights to a portion of production or revenues from mining operations. A rather clever arrangement, allowing them to profit from the industry’s excesses without actually having to get their hands dirty. Or, more accurately, without having to oversee the excavation of vast quantities of earth.

The Meaning of It All

After such a meteoric rise, a little prudence is hardly amiss. Louisbourg’s $2.6 million trim, therefore, appears less a vote of no confidence and more a simple acknowledgment of reality. The fund still holds a substantial stake in OR Royalties, placing it comfortably alongside their other durable holdings. Exceptional performance, one suspects, justifies a little selective pruning. When fundamentals remain intact, and capital continues to flow, a partial profit-taking exercise is merely a matter of good housekeeping. It says more about portfolio balance than about the inherent merits of the business itself. A perfectly sensible, if slightly uninspired, maneuver. One might almost admire it.

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2026-01-17 07:32