There are plenty of choices in the Global – Equity category, but where should you start your research? Well, one fund that may not be worth investigating is Kinetics Small Cap Opportunity Adviser A (KSOAX). KSOAX possesses a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

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Zacks categorizes KSOAX 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.

Kinetics is based in Sleepy Hollow, NY, and is the manager of KSOAX. Kinetics Small Cap Opportunity Adviser A made its debut in February of 2003, and since then, KSOAX has accumulated about $31.21 million in assets, per the most up-to-date date available. The fund’s current manager is a team of investment professionals.

Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 31.33%, and it sits 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 34.66%, which places it in the top third during this time-frame.

It is important to note that the product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund’s [%] sale charge. If sales charges were included, total returns would have been lower.

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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. Compared to the category average of 16.16%, the standard deviation of KSOAX over the past three years is 28.63%. The fund’s standard deviation over the past 5 years is 34.3% compared to the category average of 17.34%. This makes the fund more volatile than its peers over the past half-decade.

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 1.19, which means it is likely to be more volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a positive alpha of 15.22. This means that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

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