Horizon Kinetics Holding Corporation · OTC:HKHC
Horizon Kinetics — Q1 2026 Earnings Presentation
28 slides from Horizon Kinetics's earnings presentation, May 19, 2026
Slide 1: 1st Quarter Commentary
MARKET COMMENTARY 1st Quarter 2026 April 2026 1st Quarter Commentary April 2026 © 2026 Horizon Kinetics LLC ® Page | 1 of 28
Slide 2: Table of Contents
MARKET COMMENTARY 1st Quarter 2026 April 2026 Table of Contents Prefatory Note 1: The Market Many in Service of the Long-Term-Investor Few – It’s a Real Thing ................................................................................................................................. 3 Prefatory
Slide 3: Prefatory Note 1: The Market Many in Service of the Long-Term-Investor Few
MARKET COMMENTARY 1st Quarter 2026 April 2026 Prefatory Note 1: The Market Many in Service of the Long-Term-Investor Few – It’s a Real Thing Almost no thing in the �inan- cial markets is permanent— even permanence de�ined as only a few years. A thing like the popularity of an industry sector or inve
Slide 4: Crowd behavior and bubble collateral effects
MARKET COMMENTARY 1st Quarter 2026 April 2026 milling about in a marketplace, each constituent acting with a different analysis, expectations and vested interests, all of them moving money. This goes on every day and is usually fairly random. Once in a while, though, some plurality of buying interes
Slide 5: Fund flows redirected to indexed investing
MARKET COMMENTARY 1st Quarter 2026 April 2026 Investors didn’t look back; the fund �lows from those sectors were redirected to indexed investing, particularly to the IT sector. There was a good reason indexation was the choice and had already become the predominant mode of investing. An awful lot of
Slide 6: Indexation and the collapse of commodity prices
MARKET COMMENTARY 1st Quarter 2026 April 2026 Indexation was an antidote to selection error. It could effortlessly diversify across an entire sector or the entire market. And ETFs were a better mousetrap: unlike mutual funds, they could be traded mid- day like stocks, cheaper and with no sales commi
Slide 7: Royalty companies and the commodity cycle reversal
MARKET COMMENTARY 1st Quarter 2026 April 2026 free revenues. In a business like that, you could be positively exposed to and await the eventual commodity demand and pricing recovery, no matter how long the wait. With a constantly pro�itable and compounding business, time is a friend, not the enemy.
Slide 8: The Great Yield Famine
MARKET COMMENTARY 1st Quarter 2026 April 2026 This period lasted 14 years, long enough for existing normal-coupon bonds of the 5% and 6% variety to eventually be called or mature. For over 60% of those 3,455 trading days until July 2022, the 1- year Treasury yielded less than 0.5%. The 2-year Treasu
Slide 9: Total return versus income and principal
MARKET COMMENTARY 1st Quarter 2026 April 2026 investment world benchmarks its results. Total return presumes that the income is reinvested (without reduction for taxes) to buy additional bonds, so it presents the appearance of an investment that grows over time. No one who spends that income, though
Slide 10: Cheniere Notes purchase example
MARKET COMMENTARY 1st Quarter 2026 April 2026 accretion to the 100% face value, so there you had the 10% long-term stock market return benchmark in hand, but with the protections of a bond. The Notes were discounted for a reason. Cheniere’s credit rating was a steep couple of steps below investment
Slide 11: Inflation-hedged income securities
MARKET COMMENTARY 1st Quarter 2026 April 2026 least in�lation-level book value and income growth above that yield. That solves the bond wasting- asset challenge, with the likelihood of achieving or surpassing the equity 10% return challenge. If one is truly allergic to K-1s 2, there is even an ETF o
Slide 12: Persistent Market Structure Discounts—Private Investments
MARKET COMMENTARY 1st Quarter 2026 April 2026 Persistent Market Structure Discounts—Private Investments Here are three examples of private market income investing. The last will be highlighted at greater length, because it falls squarely in the more familiar bond investing universe: it has an explic
Slide 13: Permian Basin royalty partnership acquisition
MARKET COMMENTARY 1st Quarter 2026 April 2026 is not even practicable for any but a strategic, highly knowledgeable and capable operator. It will change hands at the kind of low clearing prices that can’t be replicated in the public market. Much will be explained by two investments the fund has made
Slide 14: Haynesville natural gas minerals acreage
MARKET COMMENTARY 1st Quarter 2026 April 2026 One of the most effective ways to create value in minerals is by acquiring acreage “ahead of the drill bit”—before development and production begin. Executing this strategy requires strong relationships, deep experience, forward-looking insight, and, at
Slide 15: Archive anecdote on early research reports
MARKET COMMENTARY 1st Quarter 2026 April 2026 investment strategies that no one asked us for in the �irst place. And in the second place, when the powers that be did �ind out, they weren’t so thrilled at our crossing-the-lane-markers initiative. We did ultimately persuade them of the bene�its of two
Slide 16: CLO structure explained
MARKET COMMENTARY 1st Quarter 2026 April 2026 Back to the focus of this Commentary: CLOs. A person only passingly familiar with the term or who recalls a past article about it is unlikely to know what they really are and how well they can be used to your advantage. They can be used advantageously be
Slide 17: CLO tranche yields and safeguards
MARKET COMMENTARY 1st Quarter 2026 April 2026 As to investors in these CLO tranches, they could earn a yield premium over short-term rates ranging from about 1.25% (AAA), up to 6.0% (BB). Currently, the AAA and AA tranches offer coupons that are comparable to 5-year corporate bonds of similar credit
Slide 18: Horizon Kinetics CLO strategy
MARKET COMMENTARY 1st Quarter 2026 April 2026 vehicles. There is untapped demand for CLOs as an income solution. With an active secondary market and pricing transparency, liquidity is available and improving. The Horizon Kinetics CLO strategy to date has focused on the AAA and AA rated CLO tranches
Slide 19: And a final note
MARKET COMMENTARY 1st Quarter 2026 April 2026 On a pure price basis, the high yield index is lower today than it was in 2007, which itself was 25% below its inception price. Here, again, in chart-picture form, is the difference between the total- return-calculated high-yield index, which is relevant
Slide 20: Hawaiian Electric investment view
MARKET COMMENTARY 1st Quarter 2026 April 2026 We believe Hawaiian Electric will be a superb investment. If it’s established as a large core position, it won’t be because of how high it might go, but because of how low the risk of permanent capital loss is in a recovery-stage regulated utility. Yet,
Slide 21: Fortress balance sheet and strategic investments
MARKET COMMENTARY 1st Quarter 2026 April 2026 Murray put us on the �irmest foundation imaginable in our line of business. True to our �irst strategic business planning meeting in 1994, at our �irst conference facility (a table at a Burger King down the block from our employer, Bankers Trust Company,
Slide 22: Tangible assets and the financialization of wealth
MARKET COMMENTARY 1st Quarter 2026 April 2026 For most of human history, people kept their wealth in tangible assets: from money stones in Micronesia to precious stones everywhere else, precious metals, land, coins, art. Especially assets that generated income, like farm- land. In 18th and 19th cent
Slide 23: Resource and energy demand of AI and datacenters
MARKET COMMENTARY 1st Quarter 2026 April 2026 silicon and precious and rare earth metals that comprise them, but enormous amounts of the ultra- pure water required in the manufacturing process, and the natural gas required to melt sand and quartz into electronics-grade silicon. Once the photo is in
Slide 24: From the Archives
MARKET COMMENTARY 1st Quarter 2026 April 2026 From the Archives What’s old is new again—or can be, in the true strategic asset universe. At HK central, we’ve been preparing to move for well over a year, since our lease is expiring. Very near the bottom of the to-do list is making the keep/discard de
Slide 25: Texas Pacific Land Trust annual report 2004
MARKET COMMENTARY 1st Quarter 2026 April 2026 at the bottom of the �irst page instructs the reader to turn the page over to access all further data. The senior trustee indicated that future reports would be issued every six months. By 2004, the annual report had graduated to booklet sized. One will
Slide 26: 1995 buy recommendation share repurchase scenario
MARKET COMMENTARY 1st Quarter 2026 April 2026 An abridged excerpt from our 1995 buy recommendation included this 15-year scenario of continued share repurchases, based on 3% annual revenue growth, a constant share price, and funded through free cash �low. The Trust would have repurchased 95.9% of it
Slide 27: Important Disclosures
MARKET COMMENTARY 1st Quarter 2026 April 2026 Important Disclosures Past performance is not indicative of future results. The information contained herein is subject to explanation during a presentation. Note that indices are unmanaged and the �igures shown herein do not re�lect any investment manag
Slide 28: Important Disclosures (continued)
MARKET COMMENTARY 1st Quarter 2026 April 2026 may have personal investments in TPL and/or MIAX stock or the stock of a company that has a material business relationship with TPL and/or MIAX. These personal investments may also present potential or actual con�licts of interest. The Adviser has adopte
Horizon Kinetics Holding — Q1 2026 Earnings Presentation on 6ix