Analysis of Institutional Ownership and Governance Impact of Kingsway Financial Services (KFS) Form 13G/13D

Based on the collected data, I now provide you with a comprehensive analysis of the Form 13G disclosures of Kingsway Financial Services Inc (KFS) and their implications.

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First, it is important to clarify that the SEC’s

and are two equity disclosure documents of different natures [0]:

Feature	Schedule 13G	Schedule 13D
Applicable Parties	Passive Investors	Activist/Active Investors
Holding Intent	Pure investment, no intent to control	Intends to influence company management
Disclosure Deadline	Within 45 days	Within 10 days
Information Requirements	Basic information	Detailed investment objectives and plans

According to the latest SEC filings [0][1], the institutional ownership of Kingsway Financial Services Inc exhibits the following characteristics:

Shareholder Name	Latest Disclosure Date	Shareholding Ratio	Number of Shares	Nature
Stilwell Value LLC Group	2025-12-17	12.70%	3,703,073	13D (Activist)
David Capital Partners, LLC	2025-12-17	9.00%	2,615,421	13D
Hannon Gregory Paul	2025-12-17	8.24%	2,386,119	13D
Mirabella Financial Services LLP	2025-12-31	6.85%	1,983,825	13G (Passive)
Greenhaven Road Investment Management	2025-10-30	6.80%	1,970,536	13G (Passive)
Charles Frischer	2025-04-11	6.80%	1,863,324	13D

[1]:

Time Point	Shareholding Ratio	Change
November 2023	26.90%	Initial Disclosure
December 2024	24.90%	-9.80%
February 2025	25.20%	+1.53%
April 2025	21.60%	-14.35%
August 2025	19.90%	-3.86%
December 2025	12.70%	-32.22%

Stilwell Value LLC has significantly reduced its stake from 26.9% in November 2023 to 12.7% in December 2025, which is a clear signal of

[1].

According to public data,

[1], including:

• Hedge funds hold approximately 18%
• Mutual funds and other institutions hold approximately 19%

• New Investors Entering:
  Greenhaven Road Investment Management entered with a new 6.8% position in October 2025 [0]
• Increased Holdings by Passive Investors:
  Mirabella Financial Services LLP increased its stake from 5.8% to 6.85% [0]

• Activist Investor Exiting:
  Stilwell Value LLC has continued to reduce its stake, from 26.9% to 12.7% [1]
• Founder Reducing Stake:
  Hannon Gregory Paul reduced his stake from 10.36% to 8.24% [0]

According to disclosed data,

[1], and this concentration indicates:

• A small number of institutional investors have significant influence on corporate decisions
• The ownership structure is relatively concentrated but is becoming more dispersed

• Reduced Risk of Proxy Fights:
  As a well-known activist investor, Stilwell Value’s stake reduction means that a proxy fight or board restructuring is unlikely in the short term [1]
• Enhanced Management Stability:
  Activist investors typically seek board seats or strategic changes, and their exit is conducive to the management team’s stable execution of established strategies

• Weakened Oversight:
  Activist investors often act as “watchdogs,” and their exit may lead to reduced external oversight
• Short-Term Stock Price Pressure:
  Large-scale stake reductions may send negative signals to the market

[0]:

• Demonstrates recognition of the company’s fundamentals and long-term value by professional institutions
• Passive investors typically do not interfere with corporate operations, which is conducive to independent decision-making by the management
• Brings a more stable shareholder base

According to the company’s disclosures [0][2], the governance characteristics of Kingsway Financial Services include:

• Decentralized Management Model:
  The company operates its subsidiaries using a decentralized management model
• Search Fund Model:
  As the only publicly listed company using a search fund model, its governance structure is unique
• Dual Business Segments:
  Two major business segments: Kingsway Search Xcelerator (KSX) and Extended Warranty

Investor Type	Typical Characteristics	Investment Horizon	Degree of Intervention
13D Investors (Activist)	Stilwell Value	Short-to-medium term	High Intervention
13G Investors (Passive)	Mirabella, Greenhaven	Long term	Low Intervention

• Mirabella Financial increased its stake from 5.8% to 6.85%, demonstrating confidence in the company’s long-term value [0]
• New investor Greenhaven’s entry demonstrates recognition of the company by professional institutions [0]

• Stilwell Value significantly reduced its stake from 26.9% to 12.7%, which may reflect the achievement of its investment objectives or an adjustment to its short-term outlook [1]
• Founder Hannon Paul reduced his stake by approximately 17%, which may be related to personal liquidity needs

• Institutional investors hold 37% of the shares in total, demonstrating recognition of the company’s fundamentals by professional institutions [1]
• The entry of new passive investors brings stable long-term capital
• The exit of activist investors reduces governance uncertainty

• The continuous stake reduction by the largest shareholder Stilwell Value requires attention to the underlying reasons
• Changes in the founder’s shareholdings may reflect insiders’ judgments on the company’s valuation

• Reduced intervention pressure from activist investors
• Management can focus more on the execution of long-term strategies
• Reduced governance risks such as proxy fights

• External oversight has weakened to some extent
• It is necessary to rely on independent directors and existing governance mechanisms to function effectively
• Investors should continue to monitor subsequent 13D/13G disclosures

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[0] SEC Form 13G/13D Filings History - Kingsway Financial Services (KFS). (2026). SEC Form 4. https://www.secform4.com/13dg-history/1072627.html

[1] Stilwell Value LLC 13D/A Filing - Kingsway Financial Services. (2025). WhaleWisdom. https://whalewisdom.com/filer/stilwell-value-llc

[2] Kingsway Financial Services Inc. - Q3 2025 Financial Results. (2025). Kingsway Financial Services. https://kingsway-financial.com/wp-content/uploads/2025/11/8-K-11.6.25.pdf

[3] Owning 37% shares, institutional owners seem interested in Kingsway Financial Services Inc. (NYSE:KFS). (2025). Yahoo Finance/Simply Wall St. https://finance.yahoo.com/news/owning-37-shares-institutional-owners-135450101.html