Horizon Kinetics Approves Twenty-Five Million Dollar Buyback Despite Quarterly Investment Loss

Horizon Kinetics Approves Twenty-Five Million Dollar Buyback Despite Quarterly Investment Loss

2026-11-13 companies

New York, Thursday, 12 November 2026.
Despite posting an $18.4 million third-quarter loss from falling investment values, Horizon Kinetics demonstrated financial confidence by authorizing a $25 million share repurchase program backed by resilient management fees.

Third-Quarter Loss Driven by Investment Declines

Horizon Kinetics Holding Corporation (OTCQX: HKHC) reported a significant net loss of $18.4 million, or $0.98 per common share, for the third quarter ended September 30, 2026. The loss was attributed to unrealized declines in the fair value of key investment holdings, including consolidated investment products [1]. This contrasted sharply with the year-to-date net income of $35.8 million, or $1.92 per share, reflecting broader market volatility and sector-specific challenges [1]. The quarter’s results highlighted the firm’s exposure to high-value yet volatile assets such as Texas Pacific Land Corporation (TPL), whose market value contributed substantially to the unrealized losses [2]. Despite the quarterly downturn, Horizon Kinetics maintained its core asset management operations, reporting operating income of $1.8 million under GAAP and $4.3 million in non-GAAP advisor-only results [1].

A key stabilizing factor for Horizon Kinetics in Q3 2026 was its fee structure, which demonstrated notable resilience. Management and advisory fees remained flat year-over-year at $17.8 million for the three months ended September 30, 2026, compared to the same period in 2025 [1]. This stability was further bolstered by a 26% increase in revenues from the company’s exchange-traded funds (ETFs), particularly the Inflation Beneficiaries ETF, which posted 30% year-to-date growth [2]. Separately managed accounts (SMAs) also contributed to revenue growth, with fees rising 2.0% quarter-over-quarter and 4.3% year-to-date [1]. However, the firm faced headwinds from mutual fund revenue declines and net outflows from private funds holding shares of Miami International Holdings, Inc., which offset some of these gains [2]. Assets under management (AUM) totaled $10.0 billion as of September 30, 2026, a 7.3% decrease from the prior quarter but still up 3.9% year-to-date from $9.6 billion at the end of 2025 [1].

Capital Return Initiatives Amid Market Turbulence

In a strategic move underscoring its confidence in long-term value creation, Horizon Kinetics’ board of directors declared a quarterly dividend of $0.13 per share and authorized a new $25.0 million share repurchase program on November 11, 2026 [1][3]. The dividend, payable on December 10, 2026, to shareholders of record as of November 23, 2026, signaled the firm’s commitment to returning capital to shareholders despite near-term market pressures [3]. The share repurchase program, structured as a three-year initiative, reflects the board’s belief in the intrinsic value of Horizon Kinetics’ holdings, particularly its concentrated positions in assets like TPL, which represented 39.77% of the firm’s portfolio as of Q3 2026 [4]. This buyback authorization comes at a time when TPL and other Permian Basin-related holdings, including LandBridge and Permian Basin Royalty Trust, experienced severe selloffs following the Texas mid-term elections in early November 2026 [2][4]. The market reaction was further amplified by algorithmic trading, which exacerbated the decline in these high-momentum stocks [2].

Strategic Shifts and Long-Term Investment Thesis

Horizon Kinetics’ investment approach remains rooted in a contrarian, long-term value philosophy, as outlined in its fund profile and investor letters. The firm emphasizes extending investment horizons to capitalize on idiosyncratic risks and undervalued securities, a strategy encapsulated in its ‘Equity Yield Curve’ concept [5]. This approach has led to concentrated portfolio positions in assets like TPL, which Horizon Kinetics first analyzed in 1995 for its vast land holdings and anti-dilutive share repurchases rather than its energy sector classification [2]. The firm’s recent 13F filing for Q3 2026 revealed significant portfolio adjustments, including a dramatic increase in exposure to Grayscale Bitcoin Trust (GBTC) and Bitcoin-related assets, which now account for 9.04% and 6.22% of the portfolio, respectively [4]. Concurrently, the firm reduced stakes in traditional holdings like TPL by 1.11%, reflecting a tactical reallocation amid evolving market dynamics [4]. The long-term thesis for TPL and related assets hinges on their role in supporting critical infrastructure, such as the 3 GW Project Kilby power generation facility in West Texas, developed in partnership with Chevron and Microsoft [2]. Despite short-term volatility, Horizon Kinetics’ actions suggest a steadfast commitment to its core investment principles and capital return strategies.

Sources


Asset management Earnings report