Horizon Kinetics’ Q1 2019 Market Commentary

Horizon Kinetics, LLC is an investment adviser that was launched back in 1994. It offers two main offices in New York City and White Plains. Its investment strategy is long-term and contrarian oriented, and the fund usually holds a concentrated portfolio with original stock picks. Recently, Horizon Kinetics released its Q1 2019 Market Commentary, a copy of which you can download below.

“It’s Your 20thAnniversary, ETFs, Congrats! (Some Tough Love and Real Talk About Indexation) ETFs attracted $311 billion of cash inflows in 2018. While lower than the $471 billion record in 2017, it exceeds the prior record of $284 billion in 20161. Equity mutual funds had record net outflows in the most recently tabulated year – that’s inclusive of inflows into index-based mutual funds, so the withdrawals from actively managed funds were even greater. Those index mutual funds – the mutual fund equivalent of ETFs – have doubled their share of mutual fund assets in the past 10 years and are now over one-quarter of the total. There are year-by-year statistics for the proportion of investment advisers and brokers who recommend investing via ETFs – in the past five years, that proportion is up by roughly 135%. There is no dissension that indexation and ETFs have become the accepted mode of investing, and that with every passing month greater proportions of investors’ portfolios are invested in this manner.”

You can download a copy of Horizon Kinetics’ Q1 2019 Market Commentary here:


You can also see the list of our 2019 Q1 investor letters and download them on this page.