The Internet Fund is seeking to reorganize as a Maryland corporation.
Incorporation in Maryland will give the fund more flexibility, according to a proxy statement the fund filed with the SEC Aug. 19. Shareholders are being asked to vote on the proposal on Oct. 20. Kinetics Asset Management of North Babylon, N.Y, manages the fund.
As a New York corporation, the enormously popular fund had problems. The fund, which has returned 176 percent over the past 12 months, nearly ran out of shares early in the year and had to ask shareholders to increase the amount of shares that could be sold from 10 million to 50 million. That measure was approved March 29. In Maryland, funds do not need to seek shareholder approval for a new series or classes of stock, according to the fund's proxy statement.
The fund will become one of a new family of funds - Kinetics Mutual Funds - with an authorized capitalization of two billion shares, if approved by shareholders. Another fund, The Cancer Research Investment Fund, is also planned as another of the Kinetics funds, according to the proxy statement.