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Is Kinetics Global Fund No Load (WWWEX) a Strong Mutual Fund Pick Right Now?

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Having trouble finding a Global - Equity fund? Kinetics Global Fund No Load (WWWEX - Free Report) is a possible starting point. WWWEX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

WWWEX is classified in the Global - Equity segment by Zacks, an area full of possibilities. Even though Global - Equity mutual funds invest in bigger markets like the U.S., Europe, and Japan, these kinds of funds aren't limited by geography. Rather, they offer an investment strategy that utilizes the global economy to provide stable returns.

History of Fund/Manager

Kinetics is based in Sleepy Hollow, NY, and is the manager of WWWEX. Kinetics Global Fund No Load debuted in February of 2003. Since then, WWWEX has accumulated assets of about $20.35 million, according to the most recently available information. Murray Stahl is the fund's current manager and has held that role since February of 2003.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 17.1%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 14.01%, which places it in the top third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of WWWEX over the past three years is 22.31% compared to the category average of 17.39%. Looking at the past 5 years, the fund's standard deviation is 20.07% compared to the category average of 14.26%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

Investors should not forget about beta, an important way to measure a mutual fund's risk compared to the market as a whole. WWWEX has a 5-year beta of 0.77, which means it is likely to be less volatile than the market average. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. With a positive alpha of 4.15, managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, WWWEX is a no load fund. It has an expense ratio of 1.39% compared to the category average of 1.13%. Looking at the fund from a cost perspective, WWWEX is actually more expensive than its peers.

Investors need to be aware that with this product, the minimum initial investment is $2,500; each subsequent investment has no minimum amount.

Bottom Line

Overall, Kinetics Global Fund No Load ( WWWEX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a somewhat average choice for investors right now.

This could just be the start of your research on WWWEXin the Global - Equity category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.


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