Kinetics Market Opportunities Fund
Fund
KMKAX
Price as of:
$47.96
- $0.45
- 0.93%
Primary Theme
fund company
Name
As of 04/24/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
16.6%
1 yr return
31.7%
3 Yr Avg Return
4.4%
5 Yr Avg Return
13.4%
Net Assets
$134 M
Holdings in Top 10
63.4%
52 WEEK LOW AND HIGH
$48.4
N/A
N/A
Expenses
OPERATING FEES
Expense Ratio 2.01%
SALES FEES
Front Load 5.75%
Deferred Load N/A
TRADING FEES
Turnover 2.00%
Redemption Fee 2.00%
Min Investment
Standard (Taxable)
$2,500
IRA
$2,500
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 04/24/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
KMKAX - Profile
Distributions
- YTD Total Return 16.6%
- 3 Yr Annualized Total Return 4.4%
- 5 Yr Annualized Total Return 13.4%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio -1.04%
- Dividend Yield 0.6%
- Dividend Distribution Frequency None
Fund Details
-
Legal NameKinetics Market Opportunities Fund
-
Fund Family Name7
-
Inception DateJan 31, 2006
-
Shares Outstanding216380
-
Share ClassAdv
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerPeter Doyle
Fund Description
The Market Opportunities Fund is a non-diversified fund that invests all of its investable assets in the Market Opportunities Portfolio, a series of Kinetics Portfolios Trust. Under normal circumstances, the Market Opportunities Portfolio invests at least 65% of its net assets in common stocks, convertible securities, warrants and other equity securities having the characteristics of common stocks (such as American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and International Depositary Receipts (“IDRs”)) of U.S. and foreign companies involved in capital markets or related to capital markets, as well as companies involved in the gaming industry. Capital market companies include companies that are engaged in or derive a substantial portion of their revenue from activities with a publicly traded securities exchange, such as equity exchanges and commodity exchanges, including but not limited to clearing firms and brokerage houses. The Market Opportunities Portfolio may also invest in exchange-traded funds (“ETFs”) and purchase and write options for hedging purposes and/or direct investment.
The Market Opportunities Portfolio may invest up to 20% of its total assets in convertible and non-convertible debt securities rated below investment grade, also known as junk bonds, or unrated securities that the Investment Adviser has determined to be of comparable quality.
The Market Opportunities Portfolio securities will be selected by the Investment Adviser from companies that are engaged in public exchanges, derivative exchanges, and capital markets; companies that experience operational scale from increased volume such as investment banks, credit card processing companies, electronic payment companies and companies in the gaming industry; and from companies that act as facilitators such as publicly traded expressways, airports, roads and railways. Companies that experience operational scale from increased volume are similar to capital markets companies because they have greater fixed costs than variable costs, operating margins that rise once fixed costs are covered, and an ability to generate higher operating margins once fixed costs are covered (referred to as operating leverage). High operating leverage describes a company’s ability to experience rising profit margins as revenues increase. These companies may be large, medium or small in size if, in the Investment Adviser’s opinion, these companies meet the Market Opportunities Portfolio’s investment criteria. The Investment Adviser seeks to invest in companies with high operating leverage that can expand capacity with negligible or limited associated costs. Generally, high returns on equity, long product life cycles, high barriers to entry and certain degrees of financial gearing are necessary for this. Financial gearing occurs with the use of loans and debt in companies where it is necessary to build capacity and infrastructure before operations can begin. Additionally, the Market Opportunities Portfolio may participate in securities lending arrangements up to 33-1/3% of the securities in its
portfolio with brokers, dealers, and financial institutions (but not individuals) in order to increase the return on its portfolio.
The Market Opportunities Portfolio may invest indirectly in bitcoins exclusively through a Delaware statutory trust (“Grayscale Bitcoin Trust”) that offers exposure to bitcoin. Grayscale Bitcoin Trust offers shares on an ongoing basis through private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act of 1933, as amended. Bitcoins are a digital commodity that are not issued by a government, bank or central organization. Bitcoins exist on an online, peer-to-peer computer network (the “Bitcoin Network”) that hosts a public transaction ledger where bitcoin transfers are recorded (the “Blockchain”). Bitcoins have no physical existence beyond the record of transactions on the Blockchain. The Grayscale Bitcoin Trust invests principallyin bitcoins.
The Market Opportunities Portfolio contributed a portion of its holdings in the Grayscale Bitcoin Trustto a wholly-owned and controlled subsidiary organized under the laws of the Cayman Islands (the “Cayman Subsidiary”).
The Market Opportunities Portfolio is also the sole shareholder of a wholly owned subsidiary organized under Delaware law (the “Delaware Subsidiary”). The Market Opportunities Portfolio contributed a portion of its holdings in the Grayscale Bitcoin Trust to the Delaware Subsidiary. Any net gains that the Delaware Subsidiary recognizes on future sales of the contributed Grayscale Bitcoin Trust shares will be subject to federal and state corporate income tax, but the dividends that the Delaware Subsidiary pays to the Market Opportunities Portfolio (i.e., those gains, net of the tax paid and any other expenses of the Delaware Subsidiary, such as its management and advisory fees) will be eligible to be treated as “qualified dividend income” under the Internal Revenue Code. The Delaware Subsidiary and the Cayman Subsidiary are each referred to herein as a “Subsidiary” and collectively as “Subsidiaries.” Additional information regarding the tax treatment of the Fund is provided in the “Taxes” section of the SAI.
In the future, the Market Opportunities Portfolio may seek to gain additional exposure to the Grayscale Bitcoin Trust that may not produce qualifying income for the Market Opportunities Fund under the Internal Revenue Code if directly held. The Market Opportunities Portfolio will not make any additional investments in the Grayscale Bitcoin Trust if as a result of such investment, its aggregate investment in the Grayscale Bitcoin Trust, either directly or through a Subsidiary, would be more than 15% of its assets at the time of investment. However, the Portfolio’s investment in the Grayscale Bitcoin Trust may, at times, exceed 15% of its net assets, due to appreciation.
Each Subsidiary invests primarily in the Grayscale Bitcoin Trust. The Market Opportunities Portfolio will invest in its Subsidiaries in a manner that is consistent with the limitations of the federal tax laws, rules and regulations that apply to the Market Opportunities Fund as a “regulated investment company” (“RIC”) under Subchapter M of Subtitle A, Chapter 1, of the Internal Revenue Code (“Subchapter M”). However, the Market Opportunities Portfolio and each Subsidiary comply with the same fundamental investment restrictions on an aggregate basis, to the extent those restrictions are applicable to the investment activities of each Subsidiary. Each Subsidiary also complies with Section 17 of the Investment Company Act of 1940 (the “1940 Act”) relating to affiliated transactions and custody. Unlike the Market Opportunities Fund, each Subsidiary does not, and will not, seek to qualify as a RIC. The Market Opportunities Portfolio is the sole shareholder of each Subsidiary and does not expect shares of the Subsidiaries to be offered or sold to other investors.
Sell decisions are generally triggered by either adequate value being achieved, as determined by the Investment Adviser, or by an adverse change in a company’s operating performance or a deterioration of
the company’s business model. A sell trigger may also occur if the Investment Adviser discovers a new investment opportunity that it believes is more compelling and represents a greater risk reward profile than other investment(s) held by the Market Opportunities Portfolio.
The Market Opportunities Portfolio may maintain during a temporary period, which could be for a short period or a longer period lasting several years or more, of abnormal conditions, a significant portion of its total assets in cash and securities, generally considered to be cash and cash equivalents, including, but not limited to: high quality, U.S. short-term debt securities and money market instruments. The Investment Adviser will invest in such short-term cash positions to the extent that the Investment Adviser is unable to find sufficient investments meeting its criteria and when the Investment Adviser believes the purchase of additional equity securities would not further the investment objective of the Market Opportunities Portfolio during such periods of time. Additionally, to respond to adverse market, economic, political or other conditions, which may persist for short or long periods of time, the Market Opportunities Portfolio may invest up to 100% of its assets in the types of high quality, U.S. short-term debt securities and money market instruments described above.
If the market advances during periods when the Market Opportunities Portfolio is holding a large cash position, the Portfolio may not participate as much as it would have if it had been more fully invested in securities. In the aforementioned temporary defensive periods, the Investment Adviser believes that an additional amount of liquidity in the Market Opportunities Portfolio is desirable both to meet operating requirements and to take advantage of new investment opportunities. When the Market Opportunities Portfolio holds a significant portion of assets in cash and cash equivalents, it may not meet its investment objective.
The Market Opportunities Portfolio held 48.6% of its net assets in the Texas Pacific Land Corporation (the “Land Corporation”) as of March 31, 2023. The Land Corporation is a corporation organized under the laws of the state of New York. One of the largest land owners in Texas, the Land Corporation derives most of its income from oil and gas royalty revenue, land easements and water royalties and sales. The Land Corporation has historically operated with minimal operating expenses, little to no debt and utilized cash flow to return capital to unitholders through share repurchases and dividends. While the Land Corporation has held the majority of its assets since its formation in 1888, the development of energy resources subject to its royalty interests and related land use have experienced rapid growth in recent years due to advances in energy exploration and extraction technologies.
KMKAX - Performance
Return Ranking - Trailing
| Period | KMKAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 16.6% | -16.7% | 22.3% | 0.74% |
| 1 Yr | 31.7% | -7.4% | 56.2% | 4.28% |
| 3 Yr | 4.4%* | -29.9% | 79.0% | 4.77% |
| 5 Yr | 13.4%* | -4.8% | 97.9% | 3.67% |
| 10 Yr | 12.4%* | -0.1% | 36.9% | 7.69% |
* Annualized
Return Ranking - Calendar
| Period | KMKAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -8.2% | -27.7% | 68.0% | 98.51% |
| 2022 | 13.3% | -85.6% | 350.1% | 2.43% |
| 2021 | 26.1% | -77.0% | 238.3% | 2.69% |
| 2020 | 19.3% | -44.1% | 2474.5% | 72.76% |
| 2019 | 22.3% | -50.2% | 44.0% | 67.62% |
Total Return Ranking - Trailing
| Period | KMKAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 16.6% | -16.7% | 22.3% | 0.74% |
| 1 Yr | 31.7% | -7.4% | 56.2% | 4.28% |
| 3 Yr | 4.4%* | -29.9% | 79.0% | 4.77% |
| 5 Yr | 13.4%* | -4.8% | 97.9% | 3.67% |
| 10 Yr | 12.4%* | -0.1% | 36.9% | 7.69% |
* Annualized
Total Return Ranking - Calendar
| Period | KMKAX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -7.6% | -26.1% | 68.0% | 98.33% |
| 2022 | 14.7% | -67.0% | 440.7% | 2.43% |
| 2021 | 27.7% | -23.5% | 342.2% | 3.65% |
| 2020 | 19.3% | 2.6% | 2549.1% | 92.45% |
| 2019 | 22.4% | 14.6% | 44.8% | 98.16% |
NAV & Total Return History
KMKAX - Holdings
Concentration Analysis
| KMKAX | Category Low | Category High | KMKAX % Rank | |
|---|---|---|---|---|
| Net Assets | 134 M | 2.73 M | 100 B | 85.74% |
| Number of Holdings | 64 | 25 | 3644 | 68.15% |
| Net Assets in Top 10 | 85.8 M | 449 K | 9.69 B | 75.00% |
| Weighting of Top 10 | 63.40% | 0.4% | 99.9% | 4.26% |
Top 10 Holdings
- Texas Pacific Land Corp 36.29%
- Texas Pacific Land 27.34%
- Grayscale Bitcoin Trust (BTC) 13.58%
- DREAM Unlimited Corp Registered Shs -A- Subord Vtg 3.54%
- Dream Unlimited 2.49%
- Partners Value Investments LP Unit 1.96%
- Associated Capital Group Inc Class A 1.85%
- Wheaton Precious Metals Corp 1.62%
- Galaxy Digital Holdings Ltd 1.44%
- Visa Inc Class A 1.31%
Asset Allocation
| Weighting | Return Low | Return High | KMKAX % Rank | |
|---|---|---|---|---|
| Stocks | 58.72% | 0.92% | 101.30% | 99.07% |
| Cash | 26.94% | 0.00% | 99.08% | 0.74% |
| Other | 14.15% | -0.18% | 16.96% | 0.93% |
| Preferred Stocks | 0.17% | 0.00% | 5.46% | 10.56% |
| Bonds | 0.01% | -3.27% | 1.87% | 6.30% |
| Convertible Bonds | 0.00% | 0.00% | 0.40% | 78.33% |
Stock Sector Breakdown
| Weighting | Return Low | Return High | KMKAX % Rank | |
|---|---|---|---|---|
| Energy | 62.10% | 0.00% | 62.10% | 0.19% |
| Financial Services | 23.80% | 0.00% | 43.01% | 3.70% |
| Real Estate | 6.37% | 0.00% | 19.28% | 14.07% |
| Basic Materials | 5.05% | 0.00% | 17.25% | 14.26% |
| Industrials | 2.43% | 0.00% | 38.23% | 94.26% |
| Consumer Cyclical | 0.17% | 0.00% | 57.41% | 99.26% |
| Technology | 0.04% | 0.04% | 62.17% | 99.44% |
| Consumer Defense | 0.03% | 0.00% | 16.40% | 80.74% |
| Utilities | 0.00% | 0.00% | 12.94% | 84.26% |
| Healthcare | 0.00% | 0.00% | 37.06% | 99.07% |
| Communication Services | 0.00% | 0.00% | 18.33% | 96.85% |
Stock Geographic Breakdown
| Weighting | Return Low | Return High | KMKAX % Rank | |
|---|---|---|---|---|
| US | 46.79% | 0.64% | 101.30% | 99.07% |
| Non US | 11.93% | 0.00% | 34.57% | 1.30% |
Bond Sector Breakdown
| Weighting | Return Low | Return High | KMKAX % Rank | |
|---|---|---|---|---|
| Cash & Equivalents | 99.32% | 0.00% | 100.00% | 2.59% |
| Corporate | 0.68% | 0.00% | 100.00% | 11.13% |
| Derivative | 0.00% | -0.18% | 16.96% | 77.96% |
| Securitized | 0.00% | 0.00% | 30.57% | 76.72% |
| Municipal | 0.00% | 0.00% | 0.02% | 76.72% |
| Government | 0.00% | 0.00% | 99.86% | 76.92% |
Bond Geographic Breakdown
| Weighting | Return Low | Return High | KMKAX % Rank | |
|---|---|---|---|---|
| US | 0.01% | -3.27% | 1.87% | 6.30% |
| Non US | 0.00% | 0.00% | 0.02% | 78.70% |
KMKAX - Expenses
Operational Fees
| KMKAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 2.01% | 0.02% | 17.54% | 8.75% |
| Management Fee | 1.25% | 0.00% | 1.50% | 98.14% |
| 12b-1 Fee | 0.50% | 0.00% | 1.00% | 76.67% |
| Administrative Fee | N/A | 0.00% | 0.40% | 14.36% |
Sales Fees
| KMKAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | 5.75% | 3.00% | 5.75% | 39.06% |
| Deferred Load | N/A | 1.00% | 5.00% | N/A |
Trading Fees
| KMKAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | 2.00% | 1.00% | 2.00% | 63.64% |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| KMKAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | 2.00% | 0.00% | 250.31% | 3.91% |
KMKAX - Distributions
Dividend Yield Analysis
| KMKAX | Category Low | Category High | KMKAX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 0.59% | 0.00% | 33.99% | 12.22% |
Dividend Distribution Analysis
| KMKAX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | None | Annual | Annual | Annual |
Net Income Ratio Analysis
| KMKAX | Category Low | Category High | KMKAX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | -1.04% | -2.24% | 2.75% | 82.71% |
Capital Gain Distribution Analysis
| KMKAX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Dec 28, 2023 | $0.284 | OrdinaryDividend |
| Dec 29, 2021 | $0.509 | OrdinaryDividend |
| Dec 30, 2020 | $0.007 | OrdinaryDividend |
| Dec 30, 2019 | $0.018 | OrdinaryDividend |
| Dec 28, 2017 | $0.135 | OrdinaryDividend |
| Dec 30, 2013 | $0.065 | OrdinaryDividend |
| Dec 27, 2012 | $0.158 | OrdinaryDividend |
| Dec 29, 2011 | $0.077 | OrdinaryDividend |
| Dec 30, 2010 | $0.568 | OrdinaryDividend |
| Dec 30, 2009 | $0.005 | OrdinaryDividend |
| Dec 30, 2008 | $0.025 | OrdinaryDividend |
| Dec 27, 2007 | $0.009 | OrdinaryDividend |
| Dec 27, 2006 | $0.028 | OrdinaryDividend |
KMKAX - Fund Manager Analysis
Managers
Peter Doyle
Start Date
Tenure
Tenure Rank
Jan 31, 2006
16.34
16.3%
Peter is a Senior Member of Horizon Kinetics’ Research Team. He is a member of the Investment Committee and the Board and manages customized portfolios for a number of Horizon Kinetics’ private clients. Peter is also the President of the Kinetics Mutual Funds, Inc., a series of U.S. mutual funds managed by Kinetics Asset Management LLC, a subsidiary of Horizon Kinetics. Previously, Peter was with Bankers Trust Company as a Senior Investment Officer, where he also served on the Finance, Utility and REIT Research sub-group teams. Peter received a BS from St. John’s University and an MBA from Fordham University
Murray Stahl
Start Date
Tenure
Tenure Rank
Jan 31, 2006
16.34
16.3%
Mr. Stahl is a Portfolio Manager at Horizon and is Chief Executive Officer, Chairman of the Board and is a co-founder of Horizon Kinetics. Mr. Stahl serves as the Firm's Chief Investment Officer, and chairs the Firm's Investment Committee, which is responsible for portfolio management decisions across the entire firm. Previously, Murray spent 16 years at Bankers Trust Company (1978-1994) as a senior portfolio manager and research analyst. He was also a member of the Equity Strategy Group and the Investment Strategy Group, which established asset allocation guidelines for the Private Bank. Murray received a BA and MA from Brooklyn College and an MBA from Pace University.
James Davolos
Start Date
Tenure
Tenure Rank
Apr 30, 2006
16.1
16.1%
James joined the firm in 2005 and currently serves as an Assistant Portfolio Manager for several funds. He began his investment career with the firm in 2005, as a member of the trading desk and transitioned to the investment team in December 2006. James began his tenure on the investment team as a junior analyst covering investment and research opportunities for various strategies managed by the firm. James received a BBA in Finance from Loyola University in Maryland and was a member of the Sellinger Scholars business honors program.
Eric Sites
Start Date
Tenure
Tenure Rank
Oct 01, 2011
10.67
10.7%
Eric Sites has been an Investment Team Member for the Company since 2013. He joined Horizon in 2004 as a research analyst and Portfolio Manager
Steven Bregman
Start Date
Tenure
Tenure Rank
May 01, 2016
6.08
6.1%
Steven is the Portfolio Manager of Horizon’s Core Value strategy and was a co-founder of the Firm. Steven serves on the Investment Committee, the Board and is a senior member of Horizon Kinetics’ Research Team, with oversight responsibilities for all research reports produced by the Firm. Previously, he was a senior investment officer in the Private Bank at Bankers Trust Company (1985-1994), where he was a member of the Institutional/Individual Group responsible for the bank’s larger individual relationships and for setting equity investment guidelines for the Private Bank. Steven also served as a member of the Special Situations Equity Strategy Group, and in a variety of new product development projects. By 1994 Steven managed approximately $600 million in private client assets. He received a BA from Hunter College.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.04 | 36.3 | 9.35 | 11.76 |