It's not often that a value fund piles into a stock with a $5m market cap. Especially a fund with billions under management, but that's exactly what's happened with Winland Electronics (WELX). The small company was noted in FRMO
's latest quarterly remarks (read here
). FRMO, a part owner of Horizon Kinetics a multi-billion dollar asset manager purchased 15% of the company, a strange acquisition given FRMO's size. The second largest shareholder after FRMO is another value investor named Thomas Braziel, the manager at B.E. Capital. (note: If you're looking for some interesting reading this interview with Braziel is a must read
Between FRMO, Braziel, and Matthew Houk (an associate of FRMO) 41% of the company's shares are spoken for.
Apparently more than a few FRMO shareholders reached out to Murray Stahl (one of the company's two executives) and asked why a $390m market cap company making a roughly $500k investment, and was it even worth their time? We know this because Stahl took the time to write about FRMO's Winland Electronics investment in the company's Q3 report.