Paradigm Fund

WWNPX No Load Class

Overview

THE FUND
  • U.S. focused all-cap fund comprised of investments in misunderstood or underappreciated companies whose businesses exhibit long product life cycles and have substantial barriers to entry.
  • Proprietary in-house research sources original investment opportunities in companies for which investors fail to distinguish between permanent and transitory problems.
  • The strategy seeks to capture long-term results commensurate with the returns of companies’ underlying businesses, and has low turnover.

Paradigm Fund Commentary

Read more about the Paradigm Fund in this commentary.

Paradigm Fund Fact Sheet

Learn more about the Paradigm Fund in this fact sheet.

Performance Overview

GROWTH OF $10,000 SINCE INCEPTION

The Paradigm Fund No Load Class inception date is 12/31/1999.  Figures include changes in principal value, reinvested dividends and capital gains distributions.  Performance data quoted represents past performance and does not guarantee future results.  Investment return and principal value will vary, and shares may be worth more or less at redemption than at original purchase.  The most recent month-end performance data is listed below, or you may obtain it by calling us at 1-800-930-3828.  Current performance may be lower or higher than the performance data quoted.  Performance data does not reflect the deduction of the sales load or fee which, if reflected, would reduce the performance quoted.  You will be charged a redemption fee equal to 2.00% of the net amount of the redemption if you redeem or exchange your shares 30 days or less after you purchase them.

Portfolio Characteristics

As of March 31, 2015

Portfolio Managers


Peter Doyle

President Kinetics Mutual Funds, Inc., Co-Founder, Senior Portfolio Manager

Peter is a Senior Member of Horizon Kinetics’ Research Team. He is a member of the Investment Committee and the Board and manages customized portfol...

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Murray Stahl

Chairman, Chief Investment Officer, Co-Founder

Murray is Chairman of the Board of Horizon Kinetics and was a co-founder of the Firm. He has over thirty years of investing experience and is responsi...

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Daily Performance

As of May 22, 2015
Benchmark Daily NAV One Day Return (%) Month to Date Quarter to Date Year to Date
WWNPX $36.31 -0.41% 1.31% 0.86% 6.54%
S&P 500 Index TR $8,490.75 -0.22% 2.14% 3.12% 4.10%
MSCI ACW Index $201.28 -0.30% 1.40% 4.34% 6.75%

Total Return (Annualized)

As of March 31, 2015
Benchmark 1YR 3YR 5YR 10YR Since Inception
WWNPX 3.51% 16.63% 12.36% 8.05% 9.47%
S&P 500 Index TR 12.73% 16.11% 14.47% 8.01% 4.24%
MSCI ACW Index 5.42% 10.75% 8.99% 6.44% 3.36%

Historical Total Return

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
WWNPX 4.00% 2.02% -4.62% 47.77% 20.93% 16.11% 27.81% 21.14% -53.17% 41.02% 17.37% -14.27% 21.78% 44.07% -0.79% 5.63%
S&P 500 Index TR -9.10% -11.89% -22.10% 28.68% 10.88% 4.91% 15.79% 5.49% -37.00% 26.46% 15.06% 2.11% 16.00% 32.39% 13.69% 0.95%
MSCI ACW Index -14.21% -16.21% -19.32% 33.99% 15.23% 10.84% 20.95% 11.66% -42.20% 34.63% 12.67% -7.35% 16.13% 22.80% 4.16% 2.31%

Class Information

 
Class Ticker CUSIP 12b-1 Fee Net Expense Ratio Gross Expense Ratio
No Load Class WWNPX 494613607 - 1.64% 1.68%
Advisor A KNPAX 494613854 0.25% 1.89% 1.93%
Advisor C KNPCX 494613821 1.00% 2.39% 2.43%
Institutional KNPYX 494613797 - 1.44% 1.63%

Fund Statistics

As of March 31, 2015
WWNPX S&P 500 Index TR
Beta 0.93 0.00
Standard Deviation 17.66 15.23
Up Market Capture Ratio 1.11 -
Down Market Capture Ratio 0.85 -
Sharpe Ratio 0.42 0.15
Weighted Avg. Mkt. Cap ($mil) $10,525 $132,989
Median Market Capitalization $5,076 $18,759
Price to Book 2.59 2.79
Price to Earnings 24.07 19.27
Return on Equity 9.32% 20.00%
Active Share 99.17% -

Top 10 Holdings (%)

As of March 31, 2015
Holdings Percent
The Howard Hughes Corporation 12.6%
Texas Pacific Land Trust 7.5%
Icahn Enterprises LP 7.4%
AutoNation, Inc. 5.0%
Brookfield Asset Management Inc. - Class A 4.8%
DISH Network Corp. - Class A 3.9%
Live Nation Entertainment, Inc. 3.7%
Jarden Corporation 3.6%
Liberty Media Corporation - Class C 3.5%
CBOE Holdings Inc. 3.5%

Top 10 Sectors (%)

As of March 31, 2015
Percent
Information 24.0%
Real Estate and Rental and Leasing 16.5%
Finance and Insurance 12.4%
Management of Companies and Enterprises 11.2%
Retail Trade 9.2%
Petroleum and Gas 7.4%
Manufacturing 6.9%
Arts, Entertainment, and Recreation 5.7%
Mining, Quarrying, and Oil and Gas Extraction 3.4%
Utilities 0.2%

Disclosure

The Paradigm Fund is classified as a non-diversified fund. Therefore, the value of its shares may fluctuate more than shares invested in a broader range of industries. You should consult the Fund’s prospectus for a complete list of risks associated with your investment.

You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing.  For a free copy of the fund’s prospectus, which contains this and other information, you may click here or call us at 1-800-930-3828.  You should read the prospectus carefully before you invest.

S&P 500 Index statistics data is based on the iShares S&P 500 Index Fund.

The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Standard & Poor’s 500 Index represents an unmanaged, broad-based basket of stocks. It is typically used as a proxy for overall market performance. The S&P 500 Index returns assume that dividends are reinvested. An investor cannot invest directly in an index.

The Growth of $10,000 chart illustrates the performance of a hypothetical $10,000 investment made in No Load Class shares commencement of operations (12/31/99). It assumes reinvestment of capital gains and dividends. This chart is not intended to imply any future performance.

Holdings are expressed as a percentage of total net investments and may vary over time. Equity holdings are subject to change, and may not be indicative of actual market position due to the use of call and put options.

The Top 10 Sectors displayed represent a percentage of the net assets and excludes cash equivalents and other assets in excess of liabilities.

Assets represent the total net assets for the specified portfolio, which includes all fund classes.

Gross expense ratio listed for No-Load Class, Advisor Class A, Advisor Class C and Institutional Class are referenced in the April 30, 2015 respective prospectus.

The Fund’s adviser, Kinetics Asset Management LLC, has voluntarily agreed to waive management fees and reimburse fund expenses so that net annual fund operating expenses of the No Load Class do not exceed certain levels through May 1, 2016 and may be discontinued at any time by the Fund’s adviser after May 1, 2016.

Definitions:

Beta: A statistic that measures the volatility of the fund, as compared to the overall market. The market’s beta is set at 1.00; therefore a beta higher than 1.00 is considered to be more volatile than the market, while a beta lower than 1.00 is considered to be less volatile. It is important to note that a low beta for a fund does not necessarily imply that the fund has a low level of volatility, a low beta signifies only that the fund’s market-related risk is low.  The Beta has been calculated for the past five years.

Standard Deviation: A statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund’s volatility. The standard deviation has been calculated since inception.

Up Market Capture Ratio: A statistical measure of an investment manager’s overall performance in up-markets. The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The up-market capture ratio has been calculated since inception.

Down Market Capture Ratio: A statistical measure of an investment manager’s overall performance in down-markets. The down-market capture ratio is used to evaluate how well or poorly an investment manager performed relative to an index during periods when that index has dropped. The down-market capture ratio has been calculated since inception.

Sharpe Ratio: A statistical measure that uses standard deviation and excess return to determine reward per unit of risk. A higher Sharpe ratio implies a better historical risk-adjusted performance. The Sharpe ratio has been calculated since inception using the 3-month treasury bill for the risk-free rate of return.

Weighted Avg. Mkt. Cap: The mean market capitalization (value of outstanding shares) of a basket of stocks, taking into account the relative weight of each investment.

Median Market Capitalization: The median market capitalization (value of outstanding shares) of a basket of stocks.

Price to Book Ratio: The harmonic weighted average of the price/book (P/B) ratios of the equity securities referenced. The ratio calculated by dividing the current price of the stock by the company’s book value per share (assets minus liabilities).

Price to Earnings Ratio: The harmonic weighted average of the price/earnings (P/E) ratios of the equity securities referenced. The P/E ratio is calculated by dividing the current price of the stock by the trailing one year earnings.

Return on Equity: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.

Turnover Ratio: A measure of how frequently assets within a fund are bought and sold by the managers represented over a one year period.

Active share: A measure of the percentage of holdings in a portfolio that differ from a benchmark index.  It is calculated by taking the sum of the differences of the weight of each holding in the portfolio and the weight of each holding in the benchmark index and dividing by two. Active Share Ratio: Active share is measured against the iShares S&P 500 ETF.