RENN Fund, Inc.

Semi-Annual Report

June 30, 2022

RENN FUND, INC.

TABLE OF CONTENTS

JUNE 30, 2022

Shareholder Letter � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

1

Consolidated Financial Statements:

Consolidated Schedule of Investments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

2

Consolidated Statement of Assets and Liabilities � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

5

Consolidated Statement of Operations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

6

Consolidated Statements of Changes in Net Assets � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

7

Consolidated Statement of Cash Flows � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

8

Consolidated Financial Highlights � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

9

Consolidated Notes to Financial Statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

10

Other Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

20

Service Providers � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

21

RENN FUND, INC.

SHAREHOLDER LETTER

JUNE 30, 2022 (UNAUDITED)

Dear Shareholders,

We are pleased to present the Renn Fund Inc. ("Fund") Semi-Annual Report for the six-month period ending June 30, 2022. The portfolio is concentrated in companies which we believe represent attractive investment opportunities that are not overly dependent upon the performance of the broader equity market. It has served investors well to have a high exposure to the broader market for much of the past decade, as low interest rates and government bond yields below the inflation rate supported equity valuations. However, the first half of 2022 has witnessed high reported inflation (as measured by the CPI1) and rising interest rates, and the broader equity markets have fallen significantly. As a result, we believe that strong equity returns will need to come from idiosyncratic sources.

The top three holdings in the Fund, Apyx Medical Corp., Texas Pacific Land Corp., and Fitlife Brands Inc., had mixed returns in the first half of the year, with Texas Pacific rising, while Apyx and Fitlife shares fell. Apyx had an eventful first half of the year, amidst a very challenging capital markets environment for the biotechnology sector. The company started the year by reporting preliminary 4th quarter revenue growth of approximately 50% year-over-year. Complications arose when the FDA issued a "Safety Communication" related to use of their advanced energy products for non-indicated procedures. This was related to physicians using the products for various dermal resurfacing procedures, despite not having FDA clearance. This resulted in a steep decline in the shares' prices, which was partially remedied by successive 510(k) approvals from the FDA for certain end uses for dermal surfacing. Shortly after quarter- end, the company received approval for lax skin in the submental region (below the chin). This opens a very large addressable market with full FDA approval. The company has yet to update its financial guidance following this approval, but we expect the company to operate very close to break-even by the end of the year.

Texas Pacific's shares rose mostly in response to a 40% and 51% year-to-date rise in oil and gas prices, which drove nearly 100% earnings growth in the first quarter compared to a year ago. Higher energy prices are likely to translate into higher production levels and land use through the back half of the year. We believe that global energy markets are structurally undersupplied, while the market is vastly overestimating the demand "destruction" from a potential recession. The company has a one- of- a- kind asset base, in the most prolific energy field in the western world. We believe that recent geopolitical tensions only enhance the value of these assets.

FitLife continues to execute on its turnaround strategy, while navigating a challenging environment for retail supplement sales. The health/nutrition market is consolidating following the bankruptcy of GNC Holdings, the nation's largest supplement retailer. GNC emerged from bankruptcy in later 2020, and many of its franchisees continue to operate. However, the company has sought to diversify its sales channels, specifically targeting online and other direct to consumer channels. The company grew its revenues by approximately 16% in the first quarter and holds over $10 million in cash.

The balance of the portfolio is allocated to similarly unique companies that we believe can drive shareholder returns regardless of the macroeconomic environment. This is based on high- quality, long- lived assets and undemanding valuations. We are holding a sizeable cash balance given the macroeconomic uncertainty, but remain eager to allocate capital as capital market conditions permit.

1 CPI: The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

1

RENN FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2022 (UNAUDITED)

Shares or

Principal

Amount

Company

Cost

Value

MONEY MARKET FUNDS - 34.27%

83,987

Fidelity Government Cash

Reserves Portfolio -

$ 83,987

$ 83,987

Institutional Class, 0.01% �

5,005,810

Fidelity Investment

Money Market Funds

Government Portfolio -

5,005,810

5,005,810

Institutional Class, 0.01% �

Total Money Market Funds ���

5,089,797

CONVERTIBLE BONDS - 0.00%

Oil and Gas - 0.00%

1,000,000

PetroHunter Energy

Corporation 8.50%

Maturity 12/31/2014(1)(2)(5) ���

541,331

-

Total Convertible Bonds ���������

-

COMMON EQUITIES - 64.42%

Accomodations - 0.63%

3,608

Civeo Corp.(2) ������������������������

127,364

93,339

Aerospace & Defense - 0.02%

20

Boeing Co.(2) ��������������������������

4,267

2,735

Asset Management - 1.23%

973

Associated Capital Group,

40,594

34,863

Inc. - Class A ���������������������

7,098

Gamco Investors, Inc. �����������

189,620

148,348

230,214

183,211

Diversified Financial Services - 0.05%

1,800

Galaxy Digital Holdings

31,086

6,754

Ltd.(2)(4) ������������������������������

Marine Shipping - 0.07%

300

Clarkson PLC(4) ���������������������

16,197

10,992

Metal Mining - 3.94%

580

Franco-Nevada Corp. ������������

83,192

76,316

18,478

Mesabi Trust ��������������������������

496,054

453,081

1,560

Wheaton Precious Metals

65,121

56,207

Corp. ����������������������������������

644,367

585,604

Shares or

Principal

Amount

Company

Cost

Value

COMMON EQUITIES - 64.42% (Continued)

Medicinal Chemicals and Botanical Products - 5.46%

77,228

FitLife Brands, Inc.(2) ������������

$ 9,131,688 $

810,894

Oil and Gas - 22.26%

15,759

Permian Basin Royalty Trust

218,303

260,811

808,445

PetroHunter Energy

101,056

-

Corporation(1)(2)(5) ��������������

16,300

PrairieSky Royalty Ltd.(4) �����

193,455

205,270

1,908

Texas Pacific Land Corp. ������

1,079,739

2,839,142

1,592,553

3,305,223

Other Financial Investment Activities - 0.15%

100

CF Acquisition Corp.VI -

1,206

997

Class A. (2) �������������������������

1

Morgan Group Holding

16

1

Co.(2) ����������������������������������

7,000

Urbana Corp.(4) ����������������������

22,499

21,698

23,721

22,696

Real Estate - 0.38%

3,600

Tejano Ranch Co.(2) ���������������

68,859

55,872

Securities and Commodity Exchanges - 1.63%

685

Cboe Global Markets, Inc. ����

80,892

77,535

204

CME Group, Inc. �������������������

46,086

41,759

240

Intercontinental Exchange,

30,806

22,570

Inc. �������������������������������������

14,000

Miami International

105,000

100,800

Holdings, Inc.(1)(2)(3) �����������

262,784

242,664

Securities, Commodity Contracts, and Other Financial

Investments and Related Activities - 0.44%

5,460

Grayscale Bitcoin Trust(2) ������

258,912

65,848

Live Sports (Spectator Sports) - 1.89%

5,091

Big League

280,000

280,005

Advance, LLC.(1)(2)(3) ���������

Surgical & Medical Instruments & Apparatus - 24.27%

615,000

Apyx Medical Corp.(2) �����������

1,470,958

3,603,900

See accompanying Notes to Consolidated Financial Statements.

2

RENN FUND, INC.

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED) AS OF JUNE 30, 2022 (UNAUDITED)

Shares or

Principal

Amount

Company

Cost

Value

COMMON EQUITIES - 64.42% (Continued)

Technology Services - 2.00%

550

Core Scientific, Inc.(2) ������������

$ 7,513

$

819

1,048

CACI International,�������������������������Inc. -

296,485

295,305

Class A. (2)

303,998

296,124

Total Common Equities ����������

9,565,861

EXCHANGE TRADED FUNDS - 0.05%

124

ProShares Short VIX Short����������-

7,201

5,978

Term Futures ETF(2)

Total Exchange Traded Funds ���

5,978

OPEN ENDED MUTUAL FUNDS - 0.10%

824 Kinetics Spin-Off and Corporate Restructuring

Fund(6) ��������������������������������

13,167

15,541

Total Open Ended

Mutual Funds ����������������������

13,167

15,541

PREFERRED STOCKS - 1.25%

30,966

Diamond Standard,

185,798

185,798

Inc.(1)(2)(3) ����������������������������

Total Preferred Stocks ������������

185,798

185,798

WARRANTS - 0.02%

Diamond Standard, Inc.,

Exercise Price: $9.00,

837

Expiration Date:

January 15, 2026(1)(2)(3) ��

-

25

Miami International

Holdings, Inc.,

Exercise Price: $7.50,

2,132

Expiration Date:

March 31, 2026(1)(2)(3) ����

-

3,390

Total Warrants �������������������������

-

3,415

TOTAL INVESTMENTS - 100.11% ��������

$20,284,261

$14,866,390

LIABILITIES LESS

OTHER ASSETS - -0.11% ����������������������

(15,859)

NET ASSETS - 100.00% ����������������������������

$14,850,531

Shares or

Principal

AmountCompany

Proceeds

Value

SECURITIES SOLD SHORT - 0.00%

EXCHANGE TRADED FUNDS - 0.00%

  1. Direxion Daily Gold Miners Index Bear 2X Shares

ETF ������������������������������������

$

(202)

$

(252)

  1. Direxion Daily Junior Gold
    Miners Index Bear 2X

Shares ETF(2) ���������������������

(123)

(167)

(7)

ProShares Ultra VIX Short-

(1,102)

(102)

Term Futures ETF(2) ����������

Total Exchange Traded Funds ���

(1,427)

(521)

TOTAL SECURITIES

$ (1,427) $

(521)

SOLD SHORT - 0.00% ������

  1. See Semi-Annual Report Note 5 - Fair Value Measurements.
  2. Non-IncomeProducing.
  3. Big League Advance, LLC., Diamond Standard, Inc. and Miami International Holdings, Inc. are each currently a private company. These securities are illiquid and valued at fair value.
  4. Foreign security denominated in U.S. Dollars.
  5. The PetroHunter Energy Corporation ("PetroHunter") securities are in bankruptcy. The securities are valued at fair value.
  6. Affiliated security, given that the security is managed by the same Investment Advisor as the Fund.

See accompanying Notes to Consolidated Financial Statements.

3

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RENN Fund Inc. published this content on 29 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 August 2022 15:30:44 UTC.