Yahoo Finance Is Kinetics Small Cap Opportunity Adviser A (KSOAX) a Strong Mutual Fund Pick Right Now?
Mutual Fund Equity Report fund seekers should consider taking a look at Kinetics Small Cap Opportunity Adviser A (KSOAX). KSOAX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
Kinetics is based in Sleepy Hollow, NY, and is the manager of KSOAX. Since Kinetics Small Cap Opportunity Adviser A made its debut in February of 2003, KSOAX has garnered more than $24.10 million in assets. A team of investment professionals is the fund's current manager.
Performance
Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 21.82%, and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 30.69%, 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. Over the past three years, KSOAX's standard deviation comes in at 38.29%, compared to the category average of 19.12%. The standard deviation of the fund over the past 5 years is 31.8% compared to the category average of 16.9%. 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. KSOAX has a 5-year beta of 1.28, which means it is likely to be more 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. Over the past 5 years, the fund has a positive alpha of 10.75. This means that 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, KSOAX is a load fund. It has an expense ratio of 1.89% compared to the category average of 1.19%. From a cost perspective, KSOAX 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 Small Cap Opportunity Adviser A ( KSOAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, Kinetics Small Cap Opportunity Adviser A ( KSOAX ) looks like a good potential choice for investors right now.
Want even more information about KSOAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Get Your Free (KSOAX): Fund Analysis Report
