15 thoughts on “Miserly In Sharing”

  1. A motion to compel means the defense (HK and Softvest) is not getting reasonable information that has been requested. And the level of delay and obfuscation from TPL management is significant enough they felt the need to ask the judge to rule specifically on this motion, because otherwise they won’t comply.

    Its a bad look for TPL management, as they brought this suit, and its fair for defendants to ask related questions and engage in discovery processes with email and other custodian level communication and documentation.

    This is just conjecture, but the lack of sharing requested information suggests there could be some relevant information that could further weaken TPL management’s suit.

    The ask by the defendants is justified over several pages, but essentially they are requesting: “We ask that the Court compel TPL to: (1) add Dobbs and Cook as custodians, (2) provide full hit reports for the original custodian’s firm email addresses, and (3) provide and review documents hitting on all counter-party names and codenames developed by TPL to refer to any transactions considered in 2022.”

    I have no idea how the judge will rule but there is risk to both parties in bringing this motion. If HK/Softvest loses the motion, they look like crybabies for bring it. If they win the motion it creates a mindset with the judge about the lack of transparency of the plaintiff.

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  3. It seems like the co-charis/management bit off more they can chew with this lawsuit. It will be interesting, given the alleged self dealing, if any of the two law firms of the co-chairs were involved…..

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  4. Thanks Ted for the explanation!

    Beside this, I came across the recent filings for TPL, which I am still puzzled by, does anyone have an answer to this (link below)? I see that Horizon has been buying AND SELLING shares frequently everyday, is that right? or there is something more to this essnentially “buying and selling”? It also seems like they are selling more than their buying everyday. Anyone has any clues would be greatly apprecaited!

    https://ir.stockpr.com/tpltrust/sec-filings-email/content/0001056823-23-000001/formsc13da.htm

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    • thanks for that! I checked their last couple months entries, and it does seem like they have been selling more than buying everyday, so it seems like Kinetics been getting outflows recently then?

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  6. their not” growing tired ” they have owned it for 30 years, the best is yet to come . Once the clown show is gone bck to business as usual make $ reduce share count .

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  7. with their kind of shareholding, if they are really unloading, it will make a material impact on the share price at least in the short term… Horizon havent been vocal about TPL in their latest commentary (4H22) either, so not sure what their latest thoughts are on TPL

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  8. This is a good discussion here about the impact of the inflows/outflows with the HK funds. Seeing only the daily SEC Form 4’s showing Murray Stahl on auto pilot buying 20-30 shares per day for his funds, I was not aware that the net sales out of the funds (thank Wil for the filing you found!) are currently far exceeding the buys. I know a lot of this is market-driven by redemption orders, but the imbalance is likely contributing to the downward slide we’ve seen since the peak. Couple this effect with Stahl’s inability to give commentary about his outlook, and there is a clear and present risk. The clown show lawsuit, obviously, is another negative as it seeps into the mainstream investment community. What horrible PR.

    Not sure what will kickstart the share price upward again in the near future. Maybe a strong earnings report and throwing us shareholders a bone with a special dividend that usually happens early in the year? Or what if management launched a big buyback while the price is down to actually show confidence in their outlook — wouldn’t that be a novel concept!

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  9. i think the real catalyst here is a geniune change to this client management once and for all, return to the holy grail of collecting royality and simply buying back and cancelling shares outstanding and push this to be the money making machine for investor that it has been in the past, not turn this into a M&A machine which allows management to conduct some diworsification acquisitions

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  10. remember HK manages accounts for individuals in SMA’s it is very likely that clients directed the sales, after all when a stock runs like this people want to take profits . But if we step back and consider the business it is doing great regardless of the deceitful management team. IMO the bull market for petrolem has just begun I mean TPL went up 100% when oil fell from 120 to 75 . How is TPL going to do when oil goes up ?

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  11. You are right.
    As a TPL investor since the 1960,s I appreciate your insight and updates.
    Have the investment bankers talked the board into trying to issue all the additional shares? I liked the old TPL when they worked for their current shareholders.

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