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The investment objective of the Kinetics Global Fund is long-term growth of capital through the ownership of (under normal circumstances) at least 65% of its net assets in common stocks, convertible securities, warrants and other equity securities having the characteristics of common stocks (such as ADRs, GDRs, IDRs, P-notes, equity linked notes) of foreign companies and US companies with business operations and/or equity or business interests in international markets. The Kinetics Global Fund will seek to invest in companies that have high returns on equity. A fundamental principle is to regard the investments as representing fractional ownership in the underlying companies' assets. The driver of appreciation for the classic value investor is a high return on equity, an intrinsic characteristic of the investment, not a reappraisal of the stock's worth by the market, an external factor. The Investment Adviser will not attempt to hedge currency risks and the long-term appreciation of the investments in the Kinetics Global portfolio will be driven by the success or failure of the business operations of the portfolio companies.
Such companies include, but are not limited to, the following:
Infrastructure: Companies that are involved in the financing, building, operation and holding equity stakes in infrastructure assets including electric generation and transmission, airports, toll roads, railways, ports, etc.,
Transportation: Companies that are involved in owning and operating airlines, railways and other modes of transportation
Energy: Companies that explore for, finance, produce, market, distribute energy oriented products and services, including oil and natural gas, coal and alternate energy sources.
Utilities: Companies and industries involved in gas, electric and communication services.
Financial Services: Companies that engage in financial service transactions such as
banking, credit cards, investment services, insurance and financing activities
Real Estate Development: Companies that provide commercial real estate property and
services.
Business Services: Companies that provide business-to-business products and services.
Healthcare: Companies and industries such as pharmaceuticals, healthcare services, contracting services, hospitals, medical devices, medical equipment, etc.,
Media: Companies that provide print, broadcast, cable, satellite and web-based information
and entertainment content.
Travel & Leisure: Companies that provide recreational and leisure services.
Disclosure
Past performance and does not guarantee future results. Due to market volatility, current performance may be more or less than for the rankings shown. Investment return and principal value will vary, and an investment in the fund can lose money.
Because the Funds [other than The Paradigm Fund and The Small Cap Opportunities Fund] invest in a single industry, their shares do not represent a complete investment program. Internet and biotechnology stocks are subject to a rate of change in technology, obsolescence and competition that is generally higher than that of other industries, and have experienced extreme price and volume fluctuations.
International investing [for The Global Fund] presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. The Fund's share price is expected to be more volatile than that of a U.S.-only fund. Because smaller companies [for The Global and Small Cap Opportunities Fund] often have narrower markets and limited financial resources, they present more risk than larger, more well established companies.
Non-investment grade debt securities [for all Funds], i.e., junk bonds, are subject to greater credit risk, price volatility and risk of loss than investment grade securities. Further, options contain special risks including the imperfect correlation between the value of the option and the value of the underlying asset. Small and medium-size companies often have narrower markets and more limited managerial and financial resources than do larger, more established companies. As a result, their performance can be more volatile and they may face a greater risk of business failure.
As non-diversified and single industry funds, the value of their shares may fluctuate more than shares invested in a broader range of industries and companies.
Unlike other investment companies that directly acquire and manage their own portfolios of securities, the Funds pursue their investment objectives by investing all of their investable assets in a corresponding portfolio series of Kinetics Portfolios Trust.
Distributor: Kinetics Funds Distributor, Inc. is an affiliate of Kinetics Asset Management, Inc., and is not an affiliate of Kinetics Mutual Funds, Inc.
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