Kinetics Internet Fund

Scorecard
3 / 5 Stars
Lipper
5 4 3 1 3
Zacks Investment Research
4 (Sell)
Standard & Poor's
4 / 5 Stars
TheStreet.com
C- (Hold)

#56 in Mid-Cap Growth

U.S. News evaluated 221 Mid-Cap Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 21.53 percent over the past year, 15.03 percent over the past three years, 20.65 percent over the past five years, and 11.10 percent over the past decade.

Trailing Returns Updated 06.30.2014
Year to date -2.5%
1 Year 21.5%
3 Years (Annualized) 15.0%
5 Years (Annualized) 20.6%
10 Years (Annualized) 11.1%

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Summary

Kinetics Internet's portfolio isn't as tech-heavy has its name would imply.

As of July 03, 2014, the fund has assets totaling almost $168.06 million invested in 55 different holdings. Its portfolio consists primarily of shares of large and mid-sized companies.

This fund invests almost exclusively in companies whose business models depend in large part on the Internet. But that doesn't mean that it only invests in the tech sector. Indeed, as of the end of the first quarter, more than 60 percent of its portfolio was invested outside of the tech sector, according to Morningstar. One popular theme in the fund's portfolio is media companies, with names like Time Warner and Viacom occupying prominent spots. As of the end of the first quarter, the fund's single largest position was in the Chinese search engine Baidu, which represented nearly 9 percent of its portfolio. That position has been particularly helpful this year. Another Chinese tech name, Sina Corporation, is also among the fund's top holdings. The fund has returned 21.53 percent over the past year and 15.03 percent over the past three years. 

Relative to other funds that focus on Internet-related picks, this fund has shown it can play fairly decent defense. Management has a patient, long-term approach, as evidenced by the fund's 12 percent turnover ratio. By comparison, a fund that replenished its entire portfolio once a year would have a ratio of 100 percent. Despite some missteps in the early 2000s, the fund has put up respectable long-term numbers. The fund has returned 20.65 percent over the past five years and 11.10 percent over the past decade.

Investment Strategy

According to the fund's prospectus: "The Internet Fund is a non-diversified fund that invests all of its investable assets in the Internet Portfolio, a series of Kinetics Portfolios Trust.  Under normal circumstances, the Internet Portfolio invests at least 80% of its net assets plus any borrowings for investment purposes in [securities] of U.S. and foreign companies engaged in the Internet and Internet-related activities and whose businesses are vastly improved through the distribution of content and reduction of costs with the use of the Internet . . ."

Role in Portfolio

Morningstar calls this fund a "specialty" holding.

Management

A team of four managers runs the fund.

Fees

Kinetics Internet Fund has an expense ratio of 2.09 percent.

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Risk

Like all stock fund, this one comes with some risks.

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