Kinetics Medical Fund - Advisor Class A
This is a time with no precedent in the history of medical science. The unexpectedly early success in mapping the human genome has accelerated the race to prevent, treat and cure disease and illness. In particular, the massive global search for a cure for caner has reached a new juncture. For the first time, there are reports of "breakthroughs." Revolutionary new treatments are being prepared for approval and use -- eagerly watched by a worldwide market that spends billions of dollars on cancer treatment each year. Kinetics was quick to recognize that these remarkable scientific advances are also creating remarkable investment opportunities -- The Fund focuses primarily on companies engaged in cancer research and treatment.
We invest in a diverse array of companies, such as medical research, pharmaceutical development and manufacturing. What they all have in common is a significant investment in research and development. Kinetics believes that dollars invested in research today may have a substantial effect on future growth. Several research themes offer special promise:
Genome Research: The mapping of the human genome is enabling companies to develop drugs to attack cancer and other diseases at the mollecular and cellular level.
Anti-angiogenisis: Compounds that "starve" tumors by targeting blood vessels that nourish them.
Immunotherapy: Vaccines that teach the immune system to recognize and kill cancer cells.
Contract Research Companies: Develop the tests and protocols needed to achieve FDA approval.
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Because the Fund invests in a single industry, its shares do not represent a complete investment program. Biotech and pharmaceutical stocks are subject to a rate of change in technology, obsolescence and competition which is generally higher than that of other industries, and have experienced extreme price and volume fluctuations. As a non-diversified and single industry fund, the value of its shares may fluctuate more than shares invested in a broader range of industries and companies.
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