Horizon Kinetics Holding Corporation · OTC:HKHC
Horizon Kinetics — Investor Presentation (2023)
26 slides from Horizon Kinetics's investor presentation, May 1, 2023
Slide 1: Kinetics Market Opportunities Fund 4th Quarter 2022
Kinetics Market Opportunities Fund (KMKAX, KMKCX, KMKYX, KMKNX) 4th Quarter 2022 © 2023 Horizon Kinetics LLC ®. All rights reserved.
Slide 2: Important Risk Disclosures
Important Risk Disclosures You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. For a free copy of the fund’s prospectus, which contains this and other information, visit our website at www.kineticsfunds.com or call 1-800-930-3828. You sh
Slide 3: Agenda
Agenda I. Firm Overview II. Investment Philosophy & Process III. Kinetics Market Opportunities Fund Review IV. Appendix – Management Bios – Research Publications – Contact Information – Definitions © 2023 Horizon Kinetics LLC ®. All rights reserved. 3
Slide 4: Firm Overview
Firm Overview © 2023 Horizon Kinetics LLC ®. All rights reserved. 4
Slide 5: Firm Overview: At a Glance
Firm Overview At a Glance Horizon Kinetics LLC Investment Approach Independent, employee owned, serving clients since 1994. Independent Thinking $8.0 billion in firm-wide assets under management1. − Primary source data driven process. 75 employees. − Research analysts culturally guided to ov
Slide 6: Firm Overview: Guiding Principles
Firm Overview Guiding Principles Background: Our co-founders created Horizon Asset Management LLC in 1994 and Kinetics Asset Management LLC in 1996, both are now consolidated under Horizon Kinetics Asset Management LLC, in answer to the extraordinary structural changes that were occurring in the per
Slide 7: Strategy and Client Type Overview
Firm Overview Strategy and Client Type Overview Firmwide Assets Under Management1 $8.0 B Client Assets by Type1 Separately Managed Accounts2 $3.8 B – Equities – High-Yield – Opportunistic Investments, i.e. Distressed Debt Kinetics Mutual Funds and Active ETF3 $3.2 B – Broad Markets – Specialty Marke
Slide 8: Investment Philosophy & Process
Investment Philosophy & Process © 2023 Horizon Kinetics LLC ®. All rights reserved. 8
Slide 9: Investment Philosophy: The Equity Yield Curve
Investment Philosophy The Equity Yield Curve Investors’ short-term interests can create significant mispricing of long-term investments. We believe a long-term investment horizon is essential to reducing chance of loss and earning excess return. Equity Yield Curve Return Dynamics Typical Investors L
Slide 10: Investment Philosophy: Capitalizing on Market Inefficiencies
Investment Philosophy Capitalizing on Market Inefficiencies Why are securities mispriced? Information asymmetry and human emotion (fear and greed) were once the drivers for significant market pricing discrepancies. As markets have modernized, adherents have long advocated an “efficient market” due t
Slide 11: Investment Process: Idea Generation
Investment Process Idea Generation Dynamic, unconventional thinking is required IDEA GENERATION in order to consistently find successful long- Conventional Screens Unconventional Attributes term investments over the course of a full (Mainstream Investors) (Horizon Kinetics) business cycle. Style Own
Slide 12: Investment Process: Portfolio Construction
Investment Process Portfolio Construction Avoid attempting to time the market, and instead average into and out Time Diversification of positions over time. Positions are sized by portfolio managers’ judgment of discount rate Initial Position Sizing/ magnitude along with an assessment of unconventio
Slide 13: Fundamental Risk Management
Fundamental Risk Management Quantifiable Risk versus Actual Risk Result Diversification •Eliminate single security risk Risk Parameters • Generic portfolio with exposure Conventional to all companies, good and bad Standard Deviation •Minimize return variability • “Predictable” lower long-term Tracki
Slide 14: Investment Team
Investment Team Portfolio Management and Research Team Investment Oversight Committee Steven Bregman Murray Stahl Peter Doyle President CEO, CIO President, Kinetics Mutual Funds, Inc. (38 years of Industry Experience) (45 years of Industry Experience) (38 years of Industry Experience) Strategies Cor
Slide 15: Kinetics Market Opportunities Fund Performance & Strategy Update
Kinetics Market Opportunities Fund Performance & Strategy Update © 2023 Horizon Kinetics LLC ®. All rights reserved. 15
Slide 16: Historical Performance Results
Historical Performance Results The Kinetics Market Opportunities Fund - KMKNX – U.S. focused global fund invests in companies engaged in capital markets related activities and services, which trade at attractive valuations. – Investments are focused on companies that generally benefit from increasin
Slide 17: Fund Information and Monthly Performance
Kinetics Market Opportunities Fund The Kinetics Market Opportunities Fund - Fund Information Inception Expense Ratios Class Assets* (MM) Ticker CUSIP 12b-1 fee Date Gross Net Advisor A 9.7 Jan-06 KMKAX 494613771 0.50% 2.00% 1.65% Advisor C 12.6 Feb-07 KMKCX 494613730 1.00% 2.50% 2.15% Institutional
Slide 18: Portfolio Top 10 Holdings
Portfolio Top 10 Holdings The Kinetics Market Opportunities Fund – December 31, 2022 % of Name Horizon Kinetics’ Perspective Portfolio Texas Pacific Land Corp. is a real estate company that generates cash flow via periodic land sales, oil royalties from Texas Pacific Land Corporation 60.8% owned lan
Slide 19: Portfolio Statistics
Portfolio Statistics The Kinetics Market Opportunities Fund – December 31, 2022 Fund Characteristics Top 10 Sectors,4 % Total Net Assets $140.0 mm Total Number of Positions* 60 Investment Style Global Equity Minimum Purchase(1) $2,500 Inception Date 1/31/06 *Calculated such that all securities issue
Slide 20: Recent Insights
Recent Insights Kinetics Mutual Fund 4Q2022 Conference Call Transcript Kinetics Mutual Fund 2Q2022 Conference Call Transcript Peter Doyle, President of Kinetics Mutual Funds, Inc., hosted a conference call on January Peter Doyle, President of Kinetics Mutual Funds, Inc., hosted a conference call on
Slide 21: Appendix
Appendix © 2023 Horizon Kinetics LLC ®. All rights reserved. 21
Slide 22: Management Bios
Management Bios Murray Stahl Steven Bregman Chairman, Chief Executive Officer, Chief Investment Officer President Murray is Chief Executive Officer, Chairman of the Board of Horizon Kinetics Steven is the President of Horizon Kinetics and is a co-founder of the Firm. and is a co-founder of the Firm.
Slide 23: Management Bios
Management Bios Alun Williams Jay Kesslen Chief Operating Officer General Counsel Alun joined the Firm in 2009 and, after 12 years as the firm’s Director of Jay joined the Firm in 1999 and currently serves as General Counsel, Trading and Operations, took over the role of Chief Operating Officer Mana
Slide 24: Written Research
Written Research At The Foundation of Our Process Horizon Kinetics Research Reports Horizon Kinetics White Papers Contrarian Research The Equity Yield Curve Eclectic Musings Report Established April 1995 • The Equity Yield Curve, 2012 • Russell 2000® Index Construction: When Small Caps Became a Big
Slide 25: Contact Information
Contact Information Offices: New York, NY 470 Park Avenue South New York, NY 10016 White Plains, NY 1 North Lexington Avenue White Plains, NY 10601 Summit, NJ 25 Deforest Avenue Summit, NJ 07901 Telephone: 646.495.7334 Fax: 646.495.0078 Email: [email protected] Website(s) www.horizonkinetics.co
Slide 26: Definitions
Definitions Beta: A statistic that measures the volatility of the fund, as compared to that of the overall market. The market’s beta is set at 1.00; a beta higher than 1.00 is considered to be more volatile than the market, while a beta lower than 1.00 is considered to be less volatile. The Beta has