— HORIZON KINETICS LLC —
Under the Hood Revived: What’s In Your Index? The Metamorphosis of the Mega-cap IT Company Business Model
Here at Horizon Kinetics, we’ve spilled plenty of ink on the immense weighting of technology giants in the S&P 500 Index. But there’s more to the story. A look under the (index) hood reveals the changing nature of these mega-cap tech giants to “hyperscalers,” as they are now required to invest in and operate enormous data centers. Recent data exposes a surge in capital expenditures—for which the consequences are unavoidable.
James Davolos on Far From The Finishing Post Podcast with Troy Asset Management
(Recorded on March 27, 2026)
Horizon Kinetics Launches an Actively Managed Texas Exchange Traded Fund (TEXX)
Guiding Principles
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Value Driven
We are committed to long-horizon, value driven investing and building long-term, continuous relationships with our clients.
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Research Driven
We rely on our own independent research. Written research, and its discipline, has been the cornerstone of our investment process.
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Contrarian
We are contrarian (fact-based) investors. Our vision is typically opposite the movement of the crowd.
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Long Term Investment Horizon
We measure risk as an impairment of capital. Temporary price variability – ‘quotational’ risk – is not synonymous with capital risk. Returns can be increased by extension of the investment horizon rather than by extension of risk.
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Absolute Returns
Our investment approach stresses absolute returns, integrating fundamental research, discipline and patience with the goal of long-term preservation and compounding of capital.
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Opportunistic
Our strategies are driven by fundamental research and opportunity, not capacity for asset gathering.
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Skin in the Game
We invest alongside our clients and believe that a skin in the game approach is critical to aligning interests.