Horizon Kinetics buys $33.9M in Hawaiian Electric shares

What's the deal? Horizon KineticsDealroom has a profile for this one. Try Dealroom →, a New York-based asset manager, has significantly increased its stake in Hawaiian Electric Industries (HEI) with a $33.9M share purchase. The investment firm bought additional shares in the Honolulu-based utility, which has been navigating a turbulent period since the devastating 2023 Maui wildfires.

Why now? Hawaiian Electric's stock has been trading at depressed levels since the wildfires, which killed over 100 people and led to massive liability claims against the utility. The company reached a $4B settlement agreement, and its share price — once above $40 — has hovered in the low teens. For a value-oriented firm like Horizon Kinetics, this kind of dislocation can signal opportunity.

What could go wrong? Hawaiian Electric still faces significant financial risk. The wildfire settlement is enormous relative to the company's size, and questions linger about its long-term ability to absorb those costs. Regulatory scrutiny of the utility's infrastructure and fire-prevention practices adds further uncertainty. If additional liabilities emerge or the settlement terms shift, the stock could face more pressure.

The signal: Horizon Kinetics, classified on Dealroom as an investment fund rather than a typical venture or growth equity player, has a well-documented appetite for contrarian, long-duration bets — making a $33.9M wager on a utility buried under wildfire liabilities consistent with its broader strategy. The move underscores a growing pattern of value-oriented funds treating post-crisis utilities as mispriced assets, a thesis that has played out unevenly across the sector in recent years.

Read more: intellectia.ai