Is Kinetics Global Fund No Load (WWWEX) a Strong Mutual Fund Pick Right Now?
Global - Equity fund seekers should not consider taking a look at Kinetics Global Fund No Load (WWWEX) at this time. WWWEX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes WWWEX as Global - Equity, which is a segment packed with options. Global - Equity mutual funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. They also provide an investment technique that leverages the diverse nature of the global economy in the hopes of providing a stable return.
History of Fund/Manager
Kinetics is based in Sleepy Hollow, NY, and is the manager of WWWEX. The Kinetics Global Fund No Load made its debut in February of 2003 and WWWEX has managed to accumulate roughly $5.67 million in assets, as of the most recently available information. The fund's current manager, Murray Stahl, has been in charge of the fund since February of 2003.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of -0.23%, and is in the bottom 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 9.23%, 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 16.61% compared to the category average of 11.56%. The fund's standard deviation over the past 5 years is 15.67% compared to the category average of 11.5%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
One cannot ignore the volatility of this segment, however, as it is always important for investors to remember the downside to any potential investment. In WWWEX's case, the fund lost 58.45% in the most recent bear market and underperformed its peer group by 5.88%. This could mean that the fund is a worse choice than comparable funds during a bear market.
Nevertheless, with a 5-year beta of 0.72, the fund is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a negative alpha over the past 5 years of -5.35, which shows that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, WWWEX is a no load fund. It has an expense ratio of 1.39% compared to the category average of 1.16%. So, WWWEX is actually more expensive than its peers from a cost perspective.
This fund requires a minimum initial investment of $2,500, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Kinetics Global Fund No Load ( WWWEX ) has a low Zacks Mutual Fund rank, weak performance, average downside risk, and higher fees compared to its peers.
For additional information on this product, or to compare it to other mutual funds in the Global - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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