Kinetics New Paradigm Fund - Advisor Class A
The Paradigm Fund seeks to provide investors with long-term capital growth by investing primarily in large, medium and small domestic and foreign companies. The Fund will invest in companies that the investment adviser believes are priced below their intrinsic value, have high returns on equity and will reduce their costs, extend the reach of their distribution channels and experience significant growth in their assets or revenues. A fundamental principle is to regard the investments as representing fractional ownership in the underlying companies' assets. The Paradigm Portfolio may also write and sell options on securities in which it invests for hedging purposes and/or direct investment.
Securities in the Fund will be selected by the investment adviser from companies that are engaged in various industries that will facilitate an increase in the growth of traditional business lines, entry into new distribution channels, an ability to leverage brand identity, and an improvement in the underlying cost/profitability dynamics of the business. Accordingly, the Fund seeks to invest in the equity securities of a company whose research and development efforts may result in higher stock values. Such companies include, but are not limited to the following:
Retailers: Companies that sell retail products and services via traditional stores, catalogues, telemarketing and website means
Media: Companies that provide print, broadcast, cable, satellite and web-based information and entertainment content
Financial Services: Companies that engage in financial service transactions such as banking, credit cards, investment services, etc.
Real Estate Development: Companies that provide commercial real estate property and services.
Business Services: Companies that provided business-to-business products and services.
Travel & Leisure: Companies that provide transportation and recreational services.
You should consider the investment objectives, risks, charges and expenses of the Funds before investing. For a free copy of the Funds' prospectus, which contains this and other information, visit our website at www.kineticsfunds.com or call 1-800-930-3828. You should read the prospectus carefully before you invest.
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 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 presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. 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 (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.
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.
You will be charged a redemption fee of 2.0% of the net amount of the redemption if you redeem or exchange your shares 30 days or less after you purchase them.
Distributor: Kinetics Funds Distributor LLC is an affiliate of Kinetics Asset Management LLC, and is not an affiliate of Kinetics Mutual Funds, Inc.