FRMO Corp | Investing along Murray Stahl & Steve Bregman

FRMO Corporation (OTCMKTS: FRMO) is the publicly traded investment vehicle of Murray Stahl and Steve Bregman. FRMO Corp owns a significant stake in Horizon Kinetics, an asset management company, controlled by Stahl and Bregman as well as various other smaller investments.

The company was originally incorporated in Delaware in 1993. In 2001, FRMO spun off its operations and Stahl and Bregman took over the shell. Since that time, FRMO has focused its activities on making strategic investments in public and private companies and providing investment-related advisory services.

FRMO Corp Write-ups

Horizon Kinetics

FRMO Corp’s principal investment is its stake in Horizon Kinetics, which consists of ownership interest and a revenue sharing interest. Horizon was co-founded by Murray Stahl and Steven Bregman, who are officers and principal stockholders of the Company. Horizon is an investment advisory and independent research firm, the research activities serving primarily institutional investors.

Horizon provides an in-depth analysis of information-poor, under-researched companies and strategies to identify the complex or overlooked situations that can offer an advantage to the investor.

Kinetics Funds

Kinetics Asset Management LLC serves as investment adviser to Kinetics Mutual Funds, Inc., a series of nine mutual funds with combined assets under management of $1.5 billion as of June 30, 2018.

The Funds’ investment team is led by Peter Doyle and Murray Stahl. The investment team consists of 17 seasoned investment professionals that have an average tenure of 15 years with the Firm and 25 years in the industry. The firm and employee invest significant capital alongside its investors.

Horizon Kinetics Hard Assets

Horizon Kinetics Hard Assets is a New York limited liability company formed by Horizon, and certain officers, principal stockholders and directors of the Company for the purpose of investing in companies that own ‘hard assets’ with intrinsic value such as commodities including oil, natural gas, precious metals as well as land assets including industrial and commercial real estate, and other similar assets.

Investments in Exchanges

Stahl and Bregman favour, what they refer to as, Croupier Business Models or companies that serve as intermediaries between buyers and sellers. FRMO Corp holds stakes in several exchanges for securities and other financial instruments. Current holdings include:

  • The Bermuda Stock Exchange (BSX)
  • Minneapolis Grain Exchange (MGEX)
  • OneChicago, LLC
  • CNSX Markets, Inc.
  • Miami International Holdings, Inc.
  • National Stock Exchange Holdings, Inc

Investments in Cryptocurrencies

Through both FRMO directly and indirectly through various Horizon Kinetics portfolios, FRMO holds an interest in cryptocurrencies and cryptocurrency mining operations. FRMO Corp acquired 353 shares of Digital Currency Group, Inc. for $76,261 on February 26, 2016.

Winland Holdings (WELX)

FRMO Corp owns 15% of the outstanding shares of Winland Holdings (WELX). Winland was originally named Winland Electronics, as the operating company specialises in environment monitoring solutions and sensors. In 2018, Winland changed its structure by moving Winland Electronics to a subsidiary and changing the name of the holding company to Winland Electronics. Subsequently, the holding company has begun investing in bankruptcy claims and corporate claims.