Company Summary: Horizon Kinetics Holding Corporation

Business Overview

• Type of Business: Investment advisory and independent research firm.
• Main Activities: Manages assets for institutional, retail, and high-net-worth clients by providing investment management services, conducting proprietary research, and producing investment reports.
• Core Philosophy: Fundamental, contrarian value investing, aiming for long-term investment horizons rather than short-term risk-taking. Focuses on creating broad opportunities through in-house proprietary research rather than benchmark-oriented strategies.

Investment Strategies and Products

• Offers investment strategies via third-party products including mutual funds, ETFs, institutional and retail separately managed accounts, private funds, and other private investment vehicles.
• Manages a diverse range of proprietary funds:
  • Horizon Kinetics Inflation Beneficiaries ETF: Invests mainly in companies benefiting from inflation, assets whose value is derived from physical properties like commodities. Assets at December 31, 2024: ~$1.1 billion.
  • Paradigm Fund: Focuses on undervalued, misunderstood companies with high return on equity, long product cycles, barriers to entry. Assets at December 31, 2024: ~$1.3 billion.
  • Small Cap Opportunities Fund: Invests in undervalued small-cap companies, with market caps at or below the S&P 600 index component, seeking growth through revaluation or organic expansion. Assets: ~$465 million.
  • Polestar Funds: Capitalize on market inefficiencies caused by artificial structures, with long holding periods and concentrated positions. Assets: ~$703 million combined.
  • Horizon Kinetics Equity Opportunities Fund: Invests in digital assets, equities, and private investments. Assets: ~$511 million.
  • Horizon Multi-Strategy Fund: Roots in value investing, looks for asymmetric return opportunities through proprietary research. Assets: ~$245 million.
• Separately Managed Accounts: Custom investment portfolios across various themes (value, small-cap, Asian opportunities, etc.), totaling approximately $4.5 billion AUM as of December 31, 2024.

Revenue and Financials

• Assets Under Management (AUM): ~$9.8 billion as of December 31, 2024 (up from ~$6.5 billion in 2023).
• Revenue:
  • Total revenue for 2024: $57.2 million.
  • Growth driven by increased AUM and positive market performance.
  • Management and advisory fees: $55.5 million in 2024, mainly from assets under management via mutual funds, ETFs, SMA, and proprietary funds.
  • Incentive fees: $51.7 million from proprietary funds, though eliminated in consolidated revenue.
  • Other revenues include consumer products (~$1.4 million from Scott’s Liquid Gold post-acquisition).
• Net Income:
  • For 2024: $92.5 million, including unrealized gains on investments and deferred income tax expenses.
  • Reflects gains from investments, digital assets, and funds’ performance.

Employees and Customers

• Employees: 78 employees as of December 31, 2024.
  • 21 of these are investment professionals.
• Customers:
  • Estimated shareholders of record: approximately 117 shareholders as of February 28, 2025.
  • No specific customer count for individual investors, but significant assets managed through institutional and retail accounts.

Additional Financial Highlights

• Market Capitalization: Approximate market value of non-affiliates' holdings: $8,033,743 (as of June 30, 2024).
• Dividends: Declared and paid a cash dividend of $0.053 per share in December 2024, and a new dividend of $0.107 per share in March 2025.
• Property Holdings: Leases offices in New York, NY; White Plains, NY; Summit, NJ; and Charlotte, NC.
• Strategic Focus: Growing assets through superior long-term investment performance, diversifying products, and strategic acquisitions. The company emphasizes proprietary research and a culture of experienced senior leadership with minimal management turnover.

In Summary:
Horizon Kinetics is a research-driven investment manager based in New York, managing nearly $10 billion in assets through a variety of proprietary funds, ETFs, and separately managed accounts. It employs a long-term, contrarian value investment approach supported by in-house, proprietary research and innovation. The firm generates revenue primarily from management and incentive fees, with substantial profitability highlighted by a net income of $92.5 million in 2024. It has 78 employees and a modest shareholder base, with offices in four U.S. locations.