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 cancer 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.
__________________________________________________________________
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.
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 Internet Emerging Growth 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 Internet Emerging Growth Fund 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.
| 
