The addition of 7.3M notional share swaps (13% of outstanding) signals Fund 1 is increasing its economic bet on Funko without crossing the 10% beneficial ownership line. Watch for a potential 13D amendment pushing for board representation, strategic alternatives, or operational changes — the activist is building leverage quietly.
Price Chart
Executive Summary
Fund 1 Investments, LLC filed Amendment No. 5 to its Schedule 13D on Funko, Inc., reporting beneficial ownership of 5,527,297 Class A common shares (9.9% of outstanding) as of October 14, 2026. The filing also discloses new cash-settled total return swaps on 7,287,462 notional shares (13.0% of outstanding), giving Fund 1 significant synthetic economic exposure beyond its direct stake. Recent trading shows net buying in October 2026, with 50,000 shares purchased and 20,116 sold, suggesting continued conviction.
Key Financial Metrics
Key Facts
- Fund 1 Investments, LLC beneficially owns 5,527,297 Class A common shares of Funko, representing 9.9% of outstanding shares.
- Fund 1 entered into cash-settled total return swaps on 7,287,462 notional shares (13.0% of outstanding), providing synthetic long exposure without voting or disposal power.
- Total economic exposure (direct + swaps) is approximately 12,814,759 shares, or ~22.9% of outstanding.
- Aggregate purchase price of direct stake is approximately $18,747,625.
- Since the prior 13D/A (filed September 22, 2026), Fund 1 purchased 50,000 shares and sold 20,116 shares in October 2026.
- The 9.9% direct ownership is just under the 10% threshold that would trigger additional regulatory requirements.
Financial Impact
Fund 1's total economic exposure (direct + swaps) represents ~22.9% of Funko's outstanding shares, implying significant influence potential. The swaps provide leverage without triggering beneficial ownership reporting above 10%.
Risk Factors
- Swaps introduce counterparty risk and potential forced unwinding if the stock moves against Fund 1's position.
- The 9.9% direct stake is just under the 10% threshold — any further direct purchases could trigger additional regulatory filing requirements.
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| SC 13D/A Filing (Primary) | 0000921895-26-002811 |
| Document: 0000921895-26-002811-index-headers.html | 0000921895-26-002811 |
| Document: 0000921895-26-002811-index.html | 0000921895-26-002811 |
| Document: 0000921895-26-002811.txt | 0000921895-26-002811 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | SC 13D/A | $6.57 | awaiting T+60 | — | $6.83 (+3.96%) |
Sep 22, 2026 4w ago | SC 13D/A | $5.32 | awaiting T+60 | — | $6.83 (+28.38%) |
Sep 4, 2026 7w ago | Insider Cluster | $5.68 | awaiting T+60 | — | $6.83 (−20.25%) |
Sep 3, 2026 7w ago | Insider Cluster | $5.68 | awaiting T+60 | — | $6.83 (+20.25%) |
Aug 28, 2026 8w ago | Insider Cluster | $6.72 | awaiting T+60 | — | $6.83 (+1.64%) |
Aug 26, 2026 8w ago | Insider Buy | $6.74 | awaiting T+60 | — | $6.83 (+1.34%) |
Jun 11, 2026 19w ago | Institutional Cluster | $5.42 $5.68 | ▲ +4.80% | ▲ +0.40% | $6.83 (+26.01%) |
Jun 11, 2026 19w ago | Institutional Cluster | $5.42 $5.68 | ▲ +4.80% | ▲ +0.40% | $6.83 (+26.01%) |
May 7, 2026 24w ago | 8-K | $5.26 $5.76 | ▲ +9.51% | ▲ +4.67% | $6.83 (+29.85%) |
Feb 28, 2026 34w ago | Institutional Cluster | $4.69 $5.27 | ▲ +12.37% | ▲ +3.04% | $6.83 (+45.63%) |
US Market Status
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