Our Differentiated, 2-Pronged Approach

In the current, low interest rate environment, many investors are reaching for yield. In many cases, they are looking to historically high income-generating investments, which may not produce the desired yield going forward. We believe our income strategies offer a differentiated, 2-pronged approach which seeks to:

Part I: Generate income by investing in a diversified portfolio of limited duration fixed income securities.

Part II: Collect additional cash premiums via our conservative equity option writing discipline.

Income Investing Chart

Kinetics Income Portfolios

Our income focused portfolios seek to generate stable income and total return by employing investment disciplines that utilize both fixed income securities and equity options. The portfolios’ fixed income exposures are achieved by investing in individual bonds and fixed income securities. Further, the portfolios seek to collect additional cash premiums by writing out-of-the-money options on a diversified set of common stocks. Option strategy implementations, which vary across portfolios, are intended to supplement returns and income generation consistent with each portfolio’s investment objective. We believe our multifaceted approach provides concurrent, cumulative exposure to attractive income generating assets which in aggregate aim to provide investors with above average income potential, strong risk-adjusted returns consistent with major bond indexes and the benefits of portfolio risk diversification.

Learn more about our Income-Oriented Mutual Funds, the Multi-Disciplinary Income Fund (KMDNX) and the Alternative Income Fund (KWINX).

Investment Philosophy

Our fundamental investment approach seeks to capitalize on the long-term price inefficiencies that can be created by the collective, short-term focus of the markets.