SCHEDULE: Funko, Inc. Schedule 13D Filing: Fund 1 Investments, LLC Discloses Stake

Fund 1 Investments, LLC has amended its Schedule 13D filing to report beneficial ownership of 5,257,086 shares of Funko, Inc. Class A Common Stock, representing 9.41% of the outstanding shares.

Summary

• Fund 1 Investments, LLC, through its Funds, beneficially owns 5,257,086 shares of Funko, Inc. Class A Common Stock.
• This ownership stake represents approximately 9.41% of the total outstanding shares as of May 5, 2026.
• The shares were purchased using working capital of the Funds, with an aggregate purchase price of approximately $41,723,700, including brokerage commissions.
• Fund 1 Investments, LLC also has economic exposure to an additional 5,248,201 notional shares through cash-settled total return swap agreements, representing approximately 9.40% of outstanding shares.
• The filing details various transactions in Funko, Inc. shares by Fund 1 Investments, LLC between May 7, 2026, and June 17, 2026, involving both purchases and sales.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it primarily reports on an investor's stake and trading activity without providing new operational or financial performance data for the company itself.

Positives

• Fund 1 Investments, LLC has a significant economic interest in Funko, Inc., holding a substantial percentage of the outstanding shares both directly and through derivative instruments.
• The company has actively managed its position through a series of transactions, indicating engagement with the stock.

Negatives

• The filing indicates a net sale of shares between May 7, 2026, and June 17, 2026, with total sales exceeding total purchases during this period.
• The use of cash-settled total return swaps suggests a strategy to gain economic exposure without direct voting or disposal power for a significant portion of their interest.

Risks

• The economic exposure through total return swaps carries counterparty risk with the unaffiliated third-party financial institution.
• Market volatility in Funko, Inc.'s stock price could significantly impact the value of both directly held shares and the notional shares under the swap agreements.

Future Outlook

No specific forward-looking statements or guidance were provided in this Schedule 13D amendment regarding Funko, Inc.'s future performance or strategy.

Management Comments

• The Shares beneficially owned by the Reporting Person were purchased with working capital of the Funds (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business).
• The Cash-Settled Swaps provide the Reporting Person with economic exposure to an aggregate of 5,248,201 notional Shares, representing approximately 9.40% of the outstanding Shares.
• The Cash-Settled Swaps provide the Reporting Person with economic results that are comparable to the economic results of ownership, but do not provide the Reporting Person with the power to vote or direct the voting or dispose of or direct the disposition of the Shares that are the subject of the Cash-Settled Swaps.

Industry Context

StockSavvy.ai notes that this filing reflects a significant investor's active management of its stake in the collectibles and pop culture merchandise industry, utilizing both direct ownership and derivative instruments to manage exposure.

Stakeholder Impact

• Shareholders: The active trading and significant stake held by Fund 1 Investments, LLC, along with its use of derivatives, could influence market dynamics and share price volatility.
• Management: The substantial economic interest held by Fund 1 Investments, LLC may lead to increased engagement or scrutiny from the investor regarding company strategy and performance.

Next Steps

• Fund 1 Investments, LLC will continue to monitor its investments and may engage in further transactions with respect to the Issuer's securities.

Key Dates

Keywords

Funko Inc, Schedule 13D, Fund 1 Investments, Beneficial Ownership, Class A Common Stock, Total Return Swap, SEC Filing, Investment, Securities