As filed with the Securities and Exchange Commission on 9/6/2013
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09303 & 811-09923
Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust
(Exact name of registrant as specified in charter)
470 Park Avenue South
New York, NY 10016
(Address of principal executive offices) (Zip code)
U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(Name and address of agent for service)
(800) 930-3828
Registrant's telephone number, including area code
Date of fiscal year end: December 31, 2013
Date of reporting period: June 30, 2013
Item 1. Reports to Stockholders.
KINETICS MUTUAL FUNDS, INC. Table of Contents June 30, 2013 |
| | Page |
| Shareholders’ Letter | 2 |
| Year 2013 Semi-Annual Investment Commentary | 7 |
| KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS | |
| Expense Example | 11 |
| Statements of Assets & Liabilities | 20 |
| Statements of Operations | 24 |
| Statements of Changes in Net Assets | 28 |
| Notes to Financial Statements | 39 |
| Financial Highlights | 54 |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS | |
| Allocation of Portfolio Assets | 83 |
| Portfolio of Investments — The Internet Portfolio | 91 |
| Portfolio of Investments — The Global Portfolio | 96 |
| Portfolio of Investments — The Paradigm Portfolio | 101 |
| Portfolio of Investments — The Medical Portfolio | 107 |
| Portfolio of Investments — The Small Cap Opportunities Portfolio | 110 |
| Portfolio of Investments — The Market Opportunities Portfolio | 115 |
| Portfolio of Investments — The Alternative Income Portfolio | 119 |
| Portfolio of Investments — The Multi-Disciplinary Portfolio | 127 |
| Portfolio of Options Written — The Alternative Income Portfolio | 132 |
| Portfolio of Options Written — The Multi-Disciplinary Portfolio | 150 |
| Statements of Assets & Liabilities | 169 |
| Statements of Operations | 173 |
| Statements of Changes in Net Assets | 177 |
| Notes to Financial Statements | 181 |
KINETICS MUTUAL FUNDS, INC. Shareholders’ Letter |
Dear Fellow Shareholders:
We are pleased to present the Kinetics Mutual Funds (“Funds”) Semi-Annual Report for the six-month period ended June 30, 2013. The investment team at Kinetics Asset Management LLC (“Kinetics”) has always followed a distinctly bottom-up value oriented investment strategy. By definition, this process emphasizes the fundamentals of each individual company within the portfolio over the prevailing macroeconomic factors. We remain constructive on the investment prospects for the Funds with respect to valuations combined with operating expectations, but remain cognizant of the fact that accommodative fiscal policies have likely been a boon to equity valuations. That being said, the Funds appreciated as follows during the first half of the year: The Paradigm Fund +20.55%, The Multi-Disciplinary Fund +0.63%, The Small Cap Opportunities Fund +28.33%, The Market Opportunities Fund +22.27%, The Internet Fund +15.63%, The Medical Fund +24.86%, The Alternative Income Fund +1.65% and The Global Fund +9.34%. This compares to returns of 13.82% for the S&P 500 Index and 6.05% for the MSCI All Country World Index.
Academics and modern investors often seek to add complexity to the investment process, whether it is through attempts at precise financial modeling or complex algorithmic analysis of revenue and earnings trends. We find little value in such approaches; in fact, we have always strived to simplify the investment process. This involves focusing on businesses and industries that have reasonably predictable operating characteristics and are easily understandable if one takes the time to look closely. Consider Howard Hughes Corporation (“HHC”), which is a top holding in several of the Funds. HHC is a real estate development company with assets in some of the most desirable locations in the United States including Honolulu, Hawaii and Manhattan, New York. These properties are in varying stages of development, and therefore the company is generating far less cash flow than it will once the development process is complete. However, it is clear from even a
cursory review of their properties that the company’s current market capitalization, while significantly higher than it was six months ago, does not reflect the intrinsic value of the business. We are content to own shares of HHC and wait patiently for other investors appreciate the future cash flow profile of the company.
The HHC example highlights another distinct element of our investment process: extending our investment time horizon. Just as the preponderance of investors are seeking to add complexity to the investment process, many of these individuals are similarly short-term oriented and attempt to forecast precise quarterly earnings or monthly sales figures (and trade based on those near-term data). We view equity investing no differently than one might view the purchase of an entire private business—accordingly we are far more concerned with the long-term, sustainable cash flow that a company can generate than we are with a quarterly accounting statement. It does not require any exceptional insight to appreciate the value potential that HHC offers; however, many investors are driven by near-term, artificial investment horizons and therefore are unwilling or unable to purchase shares without a tangible catalyst. We view this as an advantage for our investment team and other likeminded value investors.
An additional element of our investment process that is particularly pertinent in the current investment environment, and that we believe distinguishes us from most peers, is our equal focus devoted to qualitative and quantitative factors. The aforementioned mainstream investors devote most, if not all of the investment discovery process to quantitative analysis. For instance, these investors commonly run quantitative screens to focus upon companies with a low multiple of cash flow to enterprise value. We are wary of such quantitative screens for two primary reasons: 1) the numbers only tell half the story, and 2) presumably many hundreds or thousands of other investors are running similar screens. Revisiting our investment in HHC once again, any
type of purely quantitative screen would fail to identify the company for investment, as it has yet to generate its potential cash flows and values many of its assets well below our estimation of replacement value.
The Funds are all managed utilizing the distinct process briefly described above; we believe this will allow us to generate attractive absolute returns going forward. We further have confidence that it requires a unique approach to achieve the extraordinary results we seek.
Shareholders can continue to access additional information from our website, www.kineticsfunds.com. This website provides a broad array of information, including recent portfolio holdings, quarterly investment commentaries, conference call transcripts, newsflashes, recent performance data, and online access to account information.
Kinetics offers the following funds to investors:
The Paradigm Fund focuses on companies that are valued attractively and currently have, or are expected to soon have, sustainable high business returns. The Fund has produced attractive returns since its inception in an environment that should be described as difficult for equity investors. The Paradigm Fund is Kinetics’ flagship fund.
The Multi-Disciplinary Fund seeks to utilize stock options and fixed-income investments in order to provide investors with equity-like returns, but with more muted volatility. At times, the options strategies of the Fund may cause the manager to purchase equity securities.
The Small Cap Opportunities Fund focuses on undervalued and special situation small capitalization equities that have the potential for rewarding
long-term investment results. The same investment fundamentals employed by The Paradigm Fund are used to identify such opportunities.
The Medical Fund is a sector fund, offering an investment in scientific discovery within the promising field of medical research, particularly in the development of cancer treatments and therapies. As a sector fund, The Medical Fund is likely to have heightened volatility.
The Internet Fund is a sector fund that focuses on companies engaged in the evolution of Internet-related developments. As such, this Fund has been, and is likely to continue to be, quite volatile. The Internet Fund is not designed to be a major component of one’s equity exposure. More recently, this Fund has been focusing on content companies, which we believe will be the winners in the next generation of Internet development.
The Global Fund is focused on selecting long life cycle international companies that can generate long-term wealth through their business operations. This Fund is presently finding exciting opportunities in the more developed markets.
The Market Opportunities Fund focuses on those companies that benefit from increasing transactional volume or throughput, such as publicly-traded exchanges and credit card processors, or companies that act as facilitators, such as gaming companies, airports and publicly-traded toll roads.
The end of the second quarter of 2013 marks the first 6 months of performance under The Alternative Income Fund’s new investment strategy since undergoing a proxy vote on December 21, 2012 wherein Fund shareholders approved changes to the Fund’s investment objective and to one of the Fund’s fundamental investment restrictions. As a result of the proxy, The Water Infrastructure Fund was renamed The Alternative Income Fund. The
primary investment objective of the Alternative Income Fund is to provide current income and gains, with a secondary objective of obtaining long-term growth of capital. Consistent with this change, prospectively, the Fund will seek to generate a total return that exceeds most short-term U.S. fixed income indexes, with limited market value variability.
| | |
| | |
| . | Peter B. Doyle President Kinetics Mutual Funds, Inc. |
KINETICS MUTUAL FUNDS, INC. Investment Commentary |
Dear Fellow Shareholders,
The S&P 500 Index (“S&P 500”) and the Dow Jones Industrial Average (“DJ Industrial”) both crossed important psychological thresholds during the first half of 2013 by eclipsing 2007 peaks levels. It is inevitable that investors will benchmark investment returns following a prolonged market decline against the pre-decline peak levels, but it is important that our shareholders understand that when taken in isolation, the fact that various equity indexes are at all-time peak levels provides little information. There is greater utility in assessing the valuation of the individual constituents of the indexes and comparing them to previous peaks. That being said, the valuations of the constituents of these two indexes—which are, by definition, some of the largest companies in the United States—are, in aggregate, more attractive on a price to earnings basis than they were during the previous market peaks in 2000 and 2007. This does not imply that the companies are undervalued, but simply that the companies are “cheaper” than during previous market peaks.
The comparison of corporate earnings above only uses the price to earnings ratio to generalize valuations. This is a good starting point, but far from conclusive. In order to analyze the data on a more granular basis, let’s examine Proctor & Gamble (“P&G”) which is the 8th1 and 11th2 largest constituent in the S&P 500 and DJ Industrial, respectively. P&G is a $220 billion company with a diverse portfolio of household and personal care products that are sold across the globe. Given this breadth of products and geographies, we believe that P&G serves as a good barometer for the performance of a truly multi-national, diversified corporation. Using 2012 year-end figures (which are not materially different from the 2013 estimates) P&G has increased revenue at a compound annual growth rate of 1.8% dating back to 2007, while growing book value per share at 1.7%. The compounding effect of this growth has resulted in considerable aggregate
| | | |
| 1 | As of June 28, 2013. Source: http://us.spindices.com/indices/equity/sp-500 |
| 2 | As of July 23, 2013, using the SPDR® Dow Jones® Industrial Average ETF as a proxy. Source: https://www.spdrs.com/product/fund.seam?ticker=DIA |
increases in book value and revenues over the past five years, but it is none the less uninspiring. Let us assume that P&G continues to grow at these levels and compare this to the current price to earnings ratio of approximately 19x. Even when considering P&G’s average return on equity over the past five years of 17.3%, the valuation doesn’t stand out as attractive. One wonders whether investors are currently simply valuing P&G (and many other top U.S. companies) based upon its dividend yield of approximately 3%.
The point of the discussion above is that while we have been quite pleased with the post-crisis performance of the Kinetics Mutual Funds (“Funds”), many have yet to surpass 2007 peak levels. We are, however very optimistic that this will occur, simply due to the fact that, in general, the top companies in the Funds have materially grown in shareholder value over the past five or more years. Even more, these companies have far superior growth prospects than the markets in aggregate, while trading at lower valuation multiples. This should place our confidence in the Funds in context.
We encourage our shareholders to look beyond where the markets are currently trading and focus on the company specific fundamentals within each portfolio. The Funds represent very different exposures than the S&P 500 and DJ Industrial, thus we remain confident in the Funds despite our uninspired view of the markets in aggregate.
| | |
| | |
| . | Peter B. Doyle Chief Investment Strategist |
Disclosure
This material is intended to be reviewed in conjunction with a current prospectus, which includes all fees and expenses that apply to a continued investment, as well as information regarding the risk factors, policies and objectives of the Funds. Read it carefully before investing.
Mutual Fund investing involves risk. Principal loss is possible. Because The Internet Fund, The Medical Fund and The Market Opportunities Fund invest in a single industry or geographic region, their shares are subject to a higher degree of risk than funds with a higher level of diversification. Internet, biotechnology and certain capital markets or gaming stocks are subject to a rate of change in technology, obsolescence and competition that is generally higher than that of other industries, hence they may experience extreme price and volume fluctuations.
International investing [for all Funds] presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. Accordingly, the share prices for these Funds are expected to be more volatile than that of U.S.-only funds. Past performance is no guarantee of future performance.
Because smaller companies [for The Small Cap Opportunities Fund] often have narrower markets and limited financial resources, they present more risk than larger, more well established, companies.
Non-investment grade debt securities [for all Funds], i.e., junk bonds, are subject to greater credit risk, price volatility and risk of loss than investment grade securities.
Further, options contain special risks including the imperfect correlation between the value of the option and the value of the underlying asset. Investments [for The Multi- Disciplinary Fund and The Alternative Income Fund] in futures, swaps and other derivative instruments may result in loss as derivative instruments may be illiquid, difficult to price and leveraged so that small changes may produce disproportionate losses to the Funds. To the extent the Funds segregate assets to cover derivative positions, they may impair their ability to meet current obligations, to honor requests for redemption and to manage the investments in a manner consistent with their respective investment objectives. Purchasing and writing put and call
options and, in particular, writing “uncovered” options are highly specialized activities that entail greater than ordinary investment risk.
As non-diversified Funds, the value of Fund shares may fluctuate more than shares invested in a broader range of industries and companies. Unlike other investment companies that directly acquire and manage their own portfolios of securities, The Kinetics Mutual Funds pursue their investment objectives by investing all of their investable assets in a corresponding portfolio series of the Kinetics Portfolios Trust.
The information concerning the Funds included in the shareholder report contains certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
The Nasdaq Composite (NASDAQ) and the Standard & Poor’s 500 Index (S&P 500) each represent an unmanaged, broad-basket of stocks. They are typically used as a proxy for overall market performance.
Distributor: Kinetics Funds Distributor LLC is not an affiliate of Kinetics Mutual Funds, Inc. Kinetics Funds Distributor LLC is an affiliate of Kinetics Asset Management LLC, Investment Adviser to Kinetics Mutual Funds, Inc.
For more information, log onto www.kineticsfunds.com. July 1, 2013 — Kinetics Asset Management LLC ®
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example June 30, 2013 (Unaudited) |
Shareholders incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvestments of dividends or other distributions made by a Fund, redemption fees, and exchange fees, and (2), ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help investors understand the ongoing costs (in dollars) of investing in a series of Kinetics Mutual Funds, Inc. (each a “Feeder Fund” and collectively the “Feeder Funds”), and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested on January 1, 2013 and held for the entire period from January 1, 2013 to June 30, 2013.
Actual Expenses
The first line and second line items of the table below provide information about actual account values and actual expenses before and after expense reimbursement. Unlike other mutual funds that directly acquire and manage their own portfolio securities, each Feeder Fund invests all or generally all of its investable assets in a corresponding series of The Kinetics Portfolios Trust (each, a “Master Portfolio”, and together the “Master Portfolios”), a separately registered investment company. The Master Portfolio, in turn, invests in securities. With this type of organization, expenses can accrue specifically to the Master Portfolio or the Feeder Fund or both. Each Feeder Fund records its proportionate share of the Master Portfolio’s expenses, including directed brokerage credits, on a daily basis. Any expense reductions include Fund-specific expenses as well as the expenses allocated from the Master Portfolio.
The Feeder Funds will charge shareholder fees for outgoing wire transfers, returned checks, and exchanges executed by telephone between a Feeder Fund and any other Feeder Fund. The Feeder Funds’ transfer agent charges a $5.00 transaction fee to shareholder accounts for telephone exchanges between any two Feeder Funds. The Feeder Funds’ transfer agent does not charge a transaction fee for written exchange requests. IRA accounts are assessed a $15.00 annual fee. Finally, as a disincentive to market-timing transactions, the Feeder Funds will assess a 2.00% fee on the redemption or exchange of Fund shares held for less than 30 days. These fees will be paid to the Feeder Funds to help offset transaction costs. The Feeder Funds reserve the right to waive the redemption fee, subject to their sole discretion, in instances deemed not to be
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
disadvantageous to the Feeder Funds or shareholders as described in the Feeder Funds’ prospectus.
You may use the information provided in the first line, together with the amounts you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The third and fourth line items of the table below provide information about hypothetical account values and hypothetical expenses before and after expense reimbursements based on the Feeder Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Feeder Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses one paid for the period. You may use this information to compare the ongoing costs of investing in the Feeder Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight one’s ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help one determine the relative total costs of owning different funds. If these transactional costs had been included, one’s costs would have been higher.
.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| The Internet Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,156.30 | | | 1.84 | % | $ | 9.84 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,156.30 | | | 1.84 | % | $ | 9.84 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,015.68 | | | 1.84 | % | $ | 9.20 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,015.68 | | | 1.84 | % | $ | 9.20 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,154.90 | | | 2.09 | % | $ | 11.17 | |
| Advisor Class A Actual — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,154.90 | | | 2.09 | % | $ | 11.17 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.44 | | | 2.09 | % | $ | 10.44 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,014.44 | | | 2.09 | % | $ | 10.44 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,152.00 | | | 2.59 | % | $ | 13.82 | |
| Advisor Class C Actual — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,152.00 | | | 2.59 | % | $ | 13.82 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,011.96 | | | 2.59 | % | $ | 12.92 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,011.96 | | | 2.59 | % | $ | 12.92 | |
| | | | | | | | | | | | | | |
| The Global Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,093.40 | | | 2.92 | % | $ | 15.16 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,093.40 | | | 1.39 | % | $ | 7.21 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,010.32 | | | 2.92 | % | $ | 14.55 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,017.91 | | | 1.39 | % | $ | 6.95 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,091.30 | | | 3.17 | % | $ | 16.44 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,091.30 | | | 1.64 | % | $ | 8.50 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,009.08 | | | 3.17 | % | $ | 15.79 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.67 | | | 1.64 | % | $ | 8.20 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,090.90 | | | 3.67 | % | $ | 19.03 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,090.90 | | | 2.14 | % | $ | 11.09 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,006.60 | | | 3.67 | % | $ | 18.26 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,014.19 | | | 2.14 | % | $ | 10.69 | |
| | | | | | | | | | | | | | |
| The Paradigm Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,205.50 | | | 1.74 | % | $ | 9.52 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,205.50 | | | 1.64 | % | $ | 8.97 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,016.17 | | | 1.74 | % | $ | 8.70 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.67 | | | 1.64 | % | $ | 8.20 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,204.30 | | | 1.99 | % | $ | 10.88 | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,204.30 | | | 1.89 | % | $ | 10.33 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.93 | | | 1.99 | % | $ | 9.94 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,015.43 | | | 1.89 | % | $ | 9.44 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,201.70 | | | 2.49 | % | $ | 13.59 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,201.70 | | | 2.39 | % | $ | 13.05 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,012.45 | | | 2.49 | % | $ | 12.42 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,012.95 | | | 2.39 | % | $ | 11.93 | |
| Institutional Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,207.30 | | | 1.69 | % | $ | 9.25 | |
| Institutional Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,207.30 | | | 1.44 | % | $ | 7.88 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,016.42 | | | 1.69 | % | $ | 8.45 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,017.66 | | | 1.44 | % | $ | 7.20 | |
| | | | | | | | | | | | | | |
| The Medical Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,248.60 | | | 2.12 | % | $ | 11.82 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,248.60 | | | 1.39 | % | $ | 7.75 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.29 | | | 2.12 | % | $ | 10.59 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,017.91 | | | 1.39 | % | $ | 6.95 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,247.00 | | | 2.37 | % | $ | 13.20 | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,247.00 | | | 1.64 | % | $ | 9.14 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,013.05 | | | 2.37 | % | $ | 11.83 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.67 | | | 1.64 | % | $ | 8.20 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,243.70 | | | 2.87 | % | $ | 15.97 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,243.70 | | | 2.14 | % | $ | 11.91 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,010.57 | | | 2.87 | % | $ | 14.31 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,014.19 | | | 2.14 | % | $ | 10.69 | |
| | | | | | | | | | | | | | |
| The Small Cap Opportunities Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,283.30 | | | 1.78 | % | $ | 10.08 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,283.30 | | | 1.64 | % | $ | 9.28 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,015.97 | | | 1.78 | % | $ | 8.90 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.67 | | | 1.64 | % | $ | 8.20 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,281.80 | | | 2.03 | % | $ | 11.48 | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,281.80 | | | 1.89 | % | $ | 10.69 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.73 | | | 2.03 | % | $ | 10.14 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,015.43 | | | 1.89 | % | $ | 9.44 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,278.90 | | | 2.53 | % | $ | 14.30 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,278.90 | | | 2.39 | % | $ | 13.50 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,012.25 | | | 2.53 | % | $ | 12.62 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,012.95 | | | 2.39 | % | $ | 11.93 | |
| Institutional Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,284.80 | | | 1.73 | % | $ | 9.80 | |
| Institutional Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,284.80 | | | 1.44 | % | $ | 8.16 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,016.22 | | | 1.73 | % | $ | 8.65 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,017.66 | | | 1.44 | % | $ | 7.20 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| The Market Opportunities Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,222.70 | | | 1.88 | % | $ | 10.36 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,222.70 | | | 1.64 | % | $ | 9.04 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,015.48 | | | 1.88 | % | $ | 9.39 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.67 | | | 1.64 | % | $ | 8.20 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,221.20 | | | 2.13 | % | $ | 11.73 | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,221.20 | | | 1.89 | % | $ | 10.41 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.24 | | | 2.13 | % | $ | 10.64 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,015.43 | | | 1.89 | % | $ | 9.44 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,217.80 | | | 2.63 | % | $ | 14.46 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,217.80 | | | 2.39 | % | $ | 13.14 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,011.76 | | | 2.63 | % | $ | 13.12 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,012.95 | | | 2.39 | % | $ | 11.93 | |
| Institutional Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,224.80 | | | 1.83 | % | $ | 10.09 | |
| Institutional Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,224.80 | | | 1.44 | % | $ | 7.94 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,015.73 | | | 1.83 | % | $ | 9.15 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,017.66 | | | 1.44 | % | $ | 7.20 | |
| | | | | | | | | | | | | | |
| The Alternative Income Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,016.50 | | | 2.16 | % | $ | 10.80 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,016.50 | | | 0.95 | % | $ | 4.75 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.09 | | | 2.16 | % | $ | 10.79 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,020.09 | | | 0.95 | % | $ | 4.76 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,014.90 | | | 2.41 | % | $ | 12.04 | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,014.90 | | | 1.20 | % | $ | 6.00 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,012.85 | | | 2.41 | % | $ | 12.03 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,018.85 | | | 1.20 | % | $ | 6.01 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,013.00 | | | 2.91 | % | $ | 14.52 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,013.00 | | | 1.70 | % | $ | 8.48 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,010.37 | | | 2.91 | % | $ | 14.51 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.37 | | | 1.70 | % | $ | 8.50 | |
| Institutional Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,017.20 | | | 2.11 | % | $ | 10.55 | |
| Institutional Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,017.20 | | | 0.75 | % | $ | 3.75 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.34 | | | 2.11 | % | $ | 10.54 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,021.08 | | | 0.75 | % | $ | 3.76 | |
| | | | | | | | | | | | | | |
| The Multi-Disciplinary Fund | | | | | | | | | | | | | |
| No Load Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,006.30 | | | 1.85 | % | $ | 9.20 | |
| No Load Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,006.30 | | | 1.51 | % | $ | 7.51 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Expense Example — (Continued) June 30, 2013 (Unaudited) |
| | | | Beginning Account Value (1/1/13) | | | Ending Account Value (6/30/13) | | | Annualized Expense Ratio | | | Expenses Paid During Period* (1/1/13 to 6/30/13) | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,015.63 | | | 1.85 | % | $ | 9.25 | |
| No Load Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,017.31 | | | 1.51 | % | $ | 7.55 | |
| Advisor Class A Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,005.40 | | | 2.10 | % | $ | 10.44 | |
| Advisor Class A Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,005.40 | | | 1.76 | % | $ | 8.75 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,014.39 | | | 2.10 | % | $ | 10.49 | |
| Advisor Class A Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,016.07 | | | 1.76 | % | $ | 8.80 | |
| Advisor Class C Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,002.10 | | | 2.60 | % | $ | 12.91 | |
| Advisor Class C Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,002.10 | | | 2.26 | % | $ | 11.22 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,011.91 | | | 2.60 | % | $ | 12.97 | |
| Advisor Class C Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,013.59 | | | 2.26 | % | $ | 11.28 | |
| Institutional Class Actual — before | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,007.30 | | | 1.80 | % | $ | 8.96 | |
| Institutional Class Actual — after | | | | | | | | | | | | | |
| expense reimbursement | | $ | 1,000.00 | | $ | 1,007.30 | | | 1.31 | % | $ | 6.52 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | �� | | | | | | | | | | | | |
| before expense reimbursement | | $ | 1,000.00 | | $ | 1,015.87 | | | 1.80 | % | $ | 9.00 | |
| Institutional Class Hypothetical | | | | | | | | | | | | | |
| (5% return before expenses) — | | | | | | | | | | | | | |
| after expense reimbursement | | $ | 1,000.00 | | $ | 1,018.30 | | | 1.31 | % | $ | 6.56 | |
| | | |
| Note: | Each Feeder Fund records its proportionate share of the respective Master Portfolio’s expenses on a daily basis. Any expense reductions include Feeder Fund-specific expenses as well as the expenses allocated for the Master Portfolio. |
| * | Expenses are equal to the Feeder Fund’s annualized expense ratio before expense reimbursement and after expense reimbursement multiplied by the average account value over the period, multiplied by 181/365. |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Assets & Liabilities June 30, 2013 (Unaudited) |
| | | | The Internet Fund | | | The Global Fund | |
| ASSETS: | | | | | | | |
| Investments in the Master Portfolio, at value* | | $ | 177,698,444 | | $ | 8,966,259 | |
| Receivable from Adviser | | | 191 | | | 9,373 | |
| Receivable for Fund shares sold | | | 128,941 | | | 37,149 | |
| Prepaid expenses and other assets | | | 38,422 | | | 25,065 | |
| Total Assets | | | 177,865,998 | | | 9,037,846 | |
| LIABILITIES: | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 83,534 | | | 36,970 | |
| Payable to Directors and Officers | | | 3,007 | | | 124 | |
| Payable for Fund shares repurchased | | | 45,408 | | | 179 | |
| Payable for shareholder servicing fees | | | 36,555 | | | 1,844 | |
| Payable for distribution fees | | | 1,128 | | | 781 | |
| Accrued expenses and other liabilities | | | 69,619 | | | 11,418 | |
| Total Liabilities | | | 239,251 | | | 51,316 | |
| Net Assets | | $ | 177,626,747 | | $ | 8,986,530 | |
| NET ASSETS CONSIST OF: | | | | | | | |
| Paid in capital | | $ | 112,610,225 | | $ | 8,228,127 | |
| Accumulated net investment loss | | | (969,396 | ) | | (69,986 | ) |
| Accumulated net realized gain (loss) on investments and foreign currency | | | 4,947,567 | | | (330,923 | ) |
| Net unrealized appreciation on: | | | | | | | |
| Investments and foreign currency | | | 61,038,351 | | | 1,159,312 | |
| Net Assets | | $ | 177,626,747 | | $ | 8,986,530 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | |
| Net Assets | | $ | 174,976,379 | | $ | 6,905,834 | |
| Shares outstanding | | | 3,504,611 | | | 1,339,854 | |
| Net asset value per share (offering price and redemption price) | | $ | 49.93 | | $ | 5.15 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | |
| Net Assets | | $ | 2,192,375 | | $ | 1,092,225 | |
| Shares outstanding | | | 44,885 | | | 212,321 | |
| Net asset value per share (redemption price) | | $ | 48.84 | | $ | 5.14 | |
| Offering price per share ($48.84 divided by .9425 and $5.14 divided by .9425) | | $ | 51.82 | | $ | 5.45 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | |
| Net Assets | | $ | 457,993 | | $ | 988,471 | |
| Shares outstanding | | | 9,747 | | | 196,145 | |
| Net asset value per share (offering price and redemption price) | | $ | 46.99 | | $ | 5.04 | |
| | | |
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Assets & Liabilities — (Continued) June 30, 2013 (Unaudited) |
| | | | The Paradigm Fund | | | The Medical Fund | |
| ASSETS: | | | | | | | |
| Investments in the Master Portfolio, at value* | | $ | 1,053,442,124 | | $ | 22,404,343 | |
| Receivable from Adviser | | | 53,915 | | | 11,242 | |
| Receivable for Master Portfolio interest sold | | | — | | | 23,106 | |
| Receivable for Fund shares sold | | | 5,534,426 | | | 21,874 | |
| Prepaid expenses and other assets | | | 92,822 | | | 24,843 | |
| Total Assets | | | 1,059,123,287 | | | 22,485,408 | |
| LIABILITIES: | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 4,500,503 | | | — | |
| Payable to Directors and Officers | | | 17,039 | | | 358 | |
| Payable for Fund shares repurchased | | | 1,033,923 | | | 44,980 | |
| Payable for shareholder servicing fees | | | 170,238 | | | 4,693 | |
| Payable for distribution fees | | | 245,318 | | | 2,812 | |
| Accrued expenses and other liabilities | | | 261,199 | | | 15,292 | |
| Total Liabilities | | | 6,228,220 | | | 68,135 | |
| Net Assets | | $ | 1,052,895,067 | | $ | 22,417,273 | |
| NET ASSETS CONSIST OF: | | | | | | | |
| Paid in capital | | $ | 1,625,772,674 | | $ | 19,297,026 | |
| Accumulated net investment income (loss) | | | (11,513,102 | ) | | 202,996 | |
| Accumulated net realized gain (loss) on investments and foreign currency | | | (778,836,353 | ) | | 618,732 | |
| Net unrealized appreciation on: | | | | | | | |
| Investments and foreign currency | | | 217,471,848 | | | 2,298,519 | |
| Net Assets | | $ | 1,052,895,067 | | $ | 22,417,273 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | |
| Net Assets | | $ | 507,679,946 | | $ | 18,313,174 | |
| Shares outstanding | | | 17,551,863 | | | 822,868 | |
| Net asset value per share (offering price and redemption price) | | $ | 28.92 | | $ | 22.26 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | |
| Net Assets | | $ | 161,906,467 | | $ | 3,551,456 | |
| Shares outstanding | | | 5,699,835 | | | 164,307 | |
| Net asset value per share (redemption price) | | $ | 28.41 | | $ | 21.61 | |
| Offering price per share ($28.41 divided by .9425 and $21.61 divided by .9425) | | $ | 30.14 | | $ | 22.93 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | |
| Net Assets | | $ | 116,055,036 | | $ | 552,643 | |
| Shares outstanding | | | 4,262,682 | | | 25,852 | |
| Net asset value per share (offering price and redemption price) | | $ | 27.23 | | $ | 21.38 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | | | | |
| Net Assets | | $ | 267,253,618 | | | N/A | |
| Shares outstanding | | | 9,251,024 | | | N/A | |
| Net asset value per share (offering price and redemption price) | | $ | 28.89 | | | N/A | |
| | | |
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Assets & Liabilities — (Continued) June 30, 2013 (Unaudited) |
| | | | The Small Cap Opportunities Fund | | | The Market Opportunities Fund | |
| ASSETS: | | | | | | | |
| Investments in the Master Portfolio, at value* | | $ | 163,057,020 | | $ | 59,157,436 | |
| Receivable from Adviser | | | 7,753 | | | 16,524 | |
| Receivable for Fund shares sold | | | 729,346 | | | 63,778 | |
| Prepaid expenses and other assets | | | 42,452 | | | 35,547 | |
| Total Assets | | | 163,836,571 | | | 59,273,285 | |
| LIABILITIES: | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 669,272 | | | 61,293 | |
| Payable to Directors and Officers | | | 2,056 | | | 985 | |
| Payable for Fund shares repurchased | | | 60,074 | | | 2,486 | |
| Payable for shareholder servicing fees | | | 30,049 | | | 11,476 | |
| Payable for distribution fees | | | 11,678 | | | 9,679 | |
| Accrued expenses and other liabilities | | | 38,469 | | | 19,894 | |
| Total Liabilities | | | 811,598 | | | 105,813 | |
| Net Assets | | $ | 163,024,973 | | $ | 59,167,472 | |
| NET ASSETS CONSIST OF: | | | | | | | |
| Paid in capital | | $ | 287,767,373 | | $ | 76,296,031 | |
| Accumulated net investment loss | | | (805,438 | ) | | (1,081,462 | ) |
| Accumulated net realized loss on investments and foreign currency | | | (158,878,430 | ) | | (27,657,738 | ) |
| Net unrealized appreciation on: | | | | | | | |
| Investments and foreign currency | | | 34,941,468 | | | 11,610,641 | |
| Net Assets | | $ | 163,024,973 | | $ | 59,167,472 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | |
| Net Assets | | $ | 128,862,881 | | $ | 41,810,404 | |
| Shares outstanding | | | 3,989,026 | | | 2,830,945 | |
| Net asset value per share (offering price and redemption price) | | $ | 32.30 | | $ | 14.77 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | |
| Net Assets | | $ | 13,086,230 | | $ | 8,543,447 | |
| Shares outstanding | | | 412,134 | | | 579,460 | |
| Net asset value per share (redemption price) | | $ | 31.75 | | $ | 14.74 | |
| Offering price per share ($31.75 divided by .9425 and $14.74 divided by .9425) | | $ | 33.69 | | $ | 15.64 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | |
| Net Assets | | $ | 4,205,856 | | $ | 4,698,202 | |
| Shares outstanding | | | 135,061 | | | 323,140 | |
| Net asset value per share (offering price and redemption price) | | $ | 31.14 | | $ | 14.54 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | | | | |
| Net Assets | | $ | 16,870,006 | | $ | 4,115,419 | |
| Shares outstanding | | | 518,586 | | | 277,740 | |
| Net asset value per share (offering price and redemption price) | | $ | 32.53 | | $ | 14.82 | |
| | | |
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Assets & Liabilities — (Continued) June 30, 2013 (Unaudited) |
| | | | The Alternative Income Fund | | | The Multi- Disciplinary Fund | |
| ASSETS: | | | | | | | |
| Investments in the Master Portfolio, at value* | | $ | 17,609,981 | | $ | 92,919,915 | |
| Receivable from Adviser | | | 21,817 | | | 25,554 | |
| Receivable for Fund shares sold | | | 70,000 | | | 1,253,794 | |
| Prepaid expenses and other assets | | | 53,566 | | | 39,777 | |
| Total Assets | | | 17,755,364 | | | 94,239,040 | |
| LIABILITIES: | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 58,828 | | | 725,990 | |
| Payable to Directors and Officers | | | 265 | | | 1,385 | |
| Payable for Fund shares repurchased | | | 11,172 | | | 527,804 | |
| Payable for shareholder servicing fees | | | 3,111 | | | 16,745 | |
| Payable for distribution fees | | | 4,480 | | | 26,080 | |
| Accrued expenses and other liabilities | | | 11,828 | | | 23,673 | |
| Total Liabilities | | | 89,684 | | | 1,321,677 | |
| Net Assets | | $ | 17,665,680 | | $ | 92,917,363 | |
| NET ASSETS CONSIST OF: | | | | | | | |
| Paid in capital | | $ | 26,029,925 | | $ | 92,480,850 | |
| Accumulated net investment loss | | | (99,828 | ) | | (760,625 | ) |
| Accumulated net realized gain (loss) on investments, foreign currency and written options | | | (8,462,517 | ) | | 2,217,998 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | |
| Investments and foreign currency | | | (120,973 | ) | | (3,101,566 | ) |
| Written option contracts | | | 319,073 | | | 2,080,706 | |
| Net Assets | | $ | 17,665,680 | | $ | 92,917,363 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | |
| Net Assets | | $ | 10,918,067 | | $ | 19,832,072 | |
| Shares outstanding | | | 128,786 | | | 1,802,100 | |
| Net asset value per share (offering price and redemption price) | | $ | 84.78 | | $ | 11.00 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | |
| Net Assets | | $ | 1,811,956 | | $ | 47,368,592 | |
| Shares outstanding | | | 21,382 | | | 4,323,580 | |
| Net asset value per share (redemption price) | | $ | 84.74 | | $ | 10.96 | |
| Offering price per share ($84.74 divided by .9425 and $10.96 divided by .9425) | | $ | 89.91 | | $ | 11.63 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | |
| Net Assets | | $ | 1,627,048 | | $ | 10,772,319 | |
| Shares outstanding | | | 19,515 | | | 989,970 | |
| Net asset value per share (offering price and redemption price) | | $ | 83.37 | | $ | 10.88 | |
| CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | | | | |
| Net Assets | | $ | 3,308,609 | | $ | 14,944,380 | |
| Shares outstanding | | | 38,676 | | | 1,353,696 | |
| Net asset value per share (offering price and redemption price) | | $ | 85.55 | | $ | 11.04 | |
| | | |
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Operations For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Internet Fund | | | The Global Fund | |
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | |
| Dividends† | | $ | 524,093 | | | $ | 61,490 | |
| Interest | | | 1,233 | | | | 55 | |
| Income from securities lending | | | 43,239 | | | | 6,123 | |
| Expenses allocated from Master Portfolio | | | (1,174,573 | ) | | | (67,696 | ) |
| Net investment loss from Master Portfolio | | | (606,008 | ) | | | (28 | ) |
| EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 2,170 | | | | 1,252 | |
| Distribution fees — Advisor Class C | | | 990 | | | | 2,665 | |
| Shareholder servicing fees — Advisor Class A | | | 2,170 | | | | 1,252 | |
| Shareholder servicing fees — Advisor Class C | | | 330 | | | | 889 | |
| Shareholder servicing fees — No Load Class | | | 211,910 | | | | 7,855 | |
| Transfer agent fees and expenses | | | 85,418 | | | | 9,974 | |
| Reports to shareholders | | | 16,350 | | | | 1,791 | |
| Administration fees | | | 33,814 | | | | 2,530 | |
| Professional fees | | | 11,754 | | | | 4,203 | |
| Directors’ and Officers’ fees and expenses | | | 8,006 | | | | 354 | |
| Registration fees | | | 26,094 | | | | 19,720 | |
| Fund accounting fees | | | 4,378 | | | | 197 | |
| Other expenses | | | 3,845 | | | | 140 | |
| Total expenses | | | 407,229 | | | | 52,822 | |
| Less, expense reimbursement | | | — | | | | (61,050 | ) |
| Net expenses | | | 407,229 | | | | (8,228 | ) |
| Net investment income (loss) | | | (1,013,237 | ) | | | 8,200 | |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS | | | | | | | | |
| ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 2,511,710 | | | | 78,935 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 23,051,809 | | | | 521,131 | |
| Net gain on investments | | | 25,563,519 | | | | 600,066 | |
| Net increase in net assets resulting from operations | | $ | 24,550,282 | | | $ | 608,266 | |
| † Net of foreign taxes withheld of: | | $ | 8,003 | | | $ | 4,133 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Operations — (Continued) For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Paradigm Fund | | | The Medical Fund | |
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | |
| Dividends† | | $ | 5,666,371 | | | $ | 290,481 | |
| Interest | | | 242,965 | | | | 55 | |
| Income from securities lending | | | 342,212 | | | | 31,978 | |
| Expenses allocated from Master Portfolio | | | (6,539,606 | ) | | | (144,576 | ) |
| Net investment income (loss) from Master Portfolio | | | (288,058 | ) | | | 177,938 | |
| EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 189,714 | | | | 3,661 | |
| Distribution fees — Advisor Class C | | | 416,332 | | | | 1,904 | |
| Shareholder servicing fees — Advisor Class A | | | 189,714 | | | | 3,661 | |
| Shareholder servicing fees — Advisor Class C | | | 138,777 | | | | 635 | |
| Shareholder servicing fees — No Load Class | | | 585,494 | | | | 21,302 | |
| Shareholder servicing fees — Institutional Class | | | 237,925 | | | | — | |
| Transfer agent fees and expenses | | | 193,308 | | | | 13,848 | |
| Reports to shareholders | | | 115,845 | | | | 2,773 | |
| Administration fees | | | 192,349 | | | | 3,986 | |
| Professional fees | | | 44,454 | | | | 4,667 | |
| Directors’ and Officers’ fees and expenses | | | 42,318 | | | | 860 | |
| Registration fees | | | 42,957 | | | | 19,442 | |
| Fund accounting fees | | | 23,848 | | | | 479 | |
| Other expenses | | | 26,747 | | | | 604 | |
| Total expenses | | | 2,439,782 | | | | 77,822 | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (178,444 | ) | | | — | |
| Less, expense reimbursement | | | (486,099 | ) | | | (74,508 | ) |
| Net expenses | | | 1,775,239 | | | | 3,314 | |
| Net investment income (loss) | | | (2,063,297 | ) | | | 174,624 | |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS | | | | | | | | |
| ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 3,609,613 | | | | 545,136 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 173,485,809 | | | | 3,474,653 | |
| Net gains on investments | | | 177,095,422 | | | | 4,019,789 | |
| Net increase in net assets resulting from operations | | $ | 175,032,125 | | | $ | 4,194,413 | |
| † Net of foreign taxes withheld of: | | $ | 352,472 | | | $ | 13,528 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Operations — (Continued) For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Small Cap Opportunities Fund | | | The Market Opportunities Fund | |
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | |
| Dividends† | | $ | 920,710 | | | $ | 523,876 | |
| Interest | | | 481 | | | | 354 | |
| Income from securities lending | | | 32,089 | | | | 20,872 | |
| Expenses allocated from Master Portfolio | | | (821,000 | ) | | | (378,084 | ) |
| Net investment income from Master Portfolio | | | 132,280 | | | | 167,018 | |
| EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 12,326 | | | | 9,093 | |
| Distribution fees — Advisor Class C | | | 12,787 | | | | 16,883 | |
| Shareholder servicing fees — Advisor Class A | | | 12,326 | | | | 9,093 | |
| Shareholder servicing fees — Advisor Class C | | | 4,262 | | | | 5,628 | |
| Shareholder servicing fees — No Load Class | | | 122,446 | | | | 48,486 | |
| Shareholder servicing fees — Institutional Class | | | 10,347 | | | | 4,102 | |
| Transfer agent fees and expenses | | | 27,493 | | | | 14,848 | |
| Reports to shareholders | | | 10,211 | | | | 6,060 | |
| Administration fees | | | 23,621 | | | | 11,586 | |
| Professional fees | | | 8,507 | | | | 6,074 | |
| Directors’ and Officers’ fees and expenses | | | 4,823 | | | | 2,298 | |
| Registration fees | | | 25,760 | | | | 22,825 | |
| Fund accounting fees | | | 2,898 | | | | 1,299 | |
| Other expenses | | | 2,704 | | | | 1,316 | |
| Total expenses | | | 280,511 | | | | 159,591 | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (7,760 | ) | | | (3,077 | ) |
| Less, expense reimbursement | | | (82,071 | ) | | | (64,640 | ) |
| Net expenses | | | 190,680 | | | | 91,874 | |
| Net investment income (loss) | | | (58,400 | ) | | | 75,144 | |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS | | | | | | | | |
| ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 1,751,836 | | | | 2,093,051 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 25,219,701 | | | | 7,755,133 | |
| Net gains on investments | | | 26,971,537 | | | | 9,848,184 | |
| Net increase in net assets resulting from operations | | $ | 26,913,137 | | | $ | 9,923,328 | |
| † Net of foreign taxes withheld of: | | $ | 10,409 | | | $ | 32,327 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Operations — (Continued) For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Alternative Income Fund | | | The Multi- Disciplinary Fund | |
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | |
| Dividends | | $ | 14,673 | | | $ | 31,549 | |
| Interest | | | 34,671 | | | | 1,355,756 | |
| Income from securities lending | | | 514 | | | | 5,732 | |
| Expenses allocated from Master Portfolio | | | (92,483 | ) | | | (557,316 | ) |
| Net investment income (loss) from Master Portfolio | | | (42,625 | ) | | | 835,721 | |
| EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 2,703 | | | | 47,184 | |
| Distribution fees — Advisor Class C | | | 6,053 | | | | 34,572 | |
| Shareholder servicing fees — Advisor Class A | | | 2,703 | | | | 47,184 | |
| Shareholder servicing fees — Advisor Class C | | | 2,018 | | | | 11,524 | |
| Shareholder servicing fees — No Load Class | | | 10,770 | | | | 25,994 | |
| Shareholder servicing fees — Institutional Class | | | 2,562 | | | | 12,404 | |
| Transfer agent fees and expenses | | | 11,321 | | | | 19,148 | |
| Reports to shareholders | | | 3,687 | | | | 8,381 | |
| Administration fees | | | 2,923 | | | | 17,354 | |
| Professional fees | | | 4,499 | | | | 7,474 | |
| Directors’ and Officers’ fees and expenses | | | 618 | | | | 3,583 | |
| Registration fees | | | 26,406 | | | | 25,885 | |
| Fund accounting fees | | | 362 | | | | 2,098 | |
| Other expenses | | | 402 | | | | 1,240 | |
| Total expenses | | | 77,027 | | | | 264,025 | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (1,922 | ) | | | (9,303 | ) |
| Less, expense reimbursement | | | (90,357 | ) | | | (138,426 | ) |
| Net expenses | | | (15,252 | ) | | | 116,296 | |
| Net investment income (loss) | | | (27,373 | ) | | | 719,425 | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | | | | | | | | |
| ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | |
| Investments and foreign currency | | | (17,154 | ) | | | 929,904 | |
| Written option contracts expired or closed | | | (35,834 | ) | | | 409,002 | |
| Securities sold short | | | — | | | | (141,288 | ) |
| Realized gain distributions received from other investment companies | | | — | | | | 21,478 | |
| Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
| Investments and foreign currency | | | (71,372 | ) | | | (1,985,890 | ) |
| Written option contracts | | | 318,905 | | | | (370,076 | ) |
| Securities sold short | | | — | | | | (10,201 | ) |
| Net gain (loss) on investments | | | 194,545 | | | | (1,147,071 | ) |
| Net increase (decrease) in net assets resulting from operations | | $ | 167,172 | | | $ | (427,646 | ) |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets |
| | | The Internet Fund | | | The Global Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (1,013,237 | ) | | $ | (433,729 | ) | | $ | 8,200 | | | $ | 39,580 | |
| Net realized gain on sale of investments and foreign currency | | | 2,511,710 | | | | 4,839,728 | | | | 78,935 | | | | 104,946 | |
| Net change in unrealized appreciation of investments and foreign currency | | | 23,051,809 | | | | 19,949,877 | | | | 521,131 | | | | 1,011,339 | |
| Net increase in net assets resulting from operations | | | 24,550,282 | | | | 24,355,876 | | | | 608,266 | | | | 1,155,865 | |
| DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (123,429 | ) |
| Net realized gains | | | — | | | | (5,207,093 | ) | | | | | | | | |
| Total distributions | | | — | | | | (5,207,093 | ) | | | — | | | | (123,429 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (24,753 | ) |
| Net realized gains | | | — | | | | (46,661 | ) | | | | | | | | |
| Total distributions | | | — | | | | (46,661 | ) | | | — | | | | (24,753 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (8,334 | ) |
| Net realized gains | | | — | | | | (6,516 | ) | | | | | | | | |
| Total distributions | | | — | | | | (6,516 | ) | | | — | | | | (8,334 | ) |
| CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 14,958,109 | | | | 46,371,634 | | | | 2,093,968 | | | | 1,878,282 | |
| Redemption fees | | | 2,769 | | | | 4,548 | | | | 20 | | | | 6 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 5,050,816 | | | | — | | | | 115,580 | |
| Cost of shares redeemed | | | (19,309,482 | ) | | | (19,118,564 | ) | | | (740,363 | ) | | | (1,366,910 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (4,348,604 | ) | | | 32,308,434 | | | | 1,353,625 | | | | 626,958 | |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 656,948 | | | | 509,770 | | | | 276,622 | | | | 1,116,949 | |
| Redemption fees | | | — | | | | — | | | | — | | | | 385 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 38,332 | | | | — | | | | 22,174 | |
| Cost of shares redeemed | | | (77,321 | ) | | | (394,222 | ) | | | (363,998 | ) | | | (591,598 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 579,627 | | | | 153,880 | | | | (87,376 | ) | | | 547,910 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Internet Fund | | | The Global Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | | | | | |
| Proceeds from shares sold | | $ | 266,477 | | | $ | 82,925 | | | $ | 566,553 | | | $ | 238,490 | |
| Redemption fees | | | — | | | | — | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 4,595 | | | | — | | | | 7,789 | |
| Cost of shares redeemed | | | (21,463 | ) | | | (25,134 | ) | | | — | | | | (8,967 | ) |
| Net increase in net assets resulting from capital share transactions | | | 245,014 | | | | 62,386 | | | | 566,553 | | | | 237,312 | |
| TOTAL INCREASE IN NET ASSETS: | | | 21,026,319 | | | | 51,620,306 | | | | 2,441,068 | | | | 2,411,529 | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 156,600,428 | | | | 104,980,122 | | | | 6,545,462 | | | | 4,133,933 | |
| End of period* | | $ | 177,626,747 | | | $ | 156,600,428 | | | $ | 8,986,530 | | | $ | 6,545,462 | |
| Including undistributed net investment income (loss) of: | | $ | (969,396 | ) | | $ | 43,841 | | | $ | (69,986 | ) | | $ | (78,186 | ) |
| CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 323,852 | | | | 1,069,839 | | | | 409,561 | | | | 427,158 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 118,341 | | | | — | | | | 24,697 | |
| Shares redeemed | | | (409,706 | ) | | | (461,243 | ) | | | (145,902 | ) | | | (301,524 | ) |
| Net increase (decrease) in shares outstanding | | | (85,854 | ) | | | 726,937 | | | | 263,659 | | | | 150,331 | |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 13,895 | | | | 12,322 | | | | 53,746 | | | | 258,844 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 917 | | | | — | | | | 4,738 | |
| Shares redeemed | | | (1,615 | ) | | | (10,094 | ) | | | (73,663 | ) | | | (131,342 | ) |
| Net increase (decrease) in shares outstanding | | | 12,280 | | | | 3,145 | | | | (19,917 | ) | | | 132,240 | |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 5,702 | | | | 2,130 | | | | 113,198 | | | | 54,697 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 114 | | | | — | | | | 1,693 | |
| Shares redeemed | | | (491 | ) | | | (674 | ) | | | — | | | | (2,056 | ) |
| Net increase in shares outstanding | | | 5,211 | | | | 1,570 | | | | 113,198 | | | | 54,334 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Paradigm Fund | | | The Medical Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (2,063,297 | ) | | $ | 1,073,108 | | | $ | 174,624 | | | $ | 305,849 | |
| Net realized gain on sale of investments and foreign currency | | | 3,609,613 | | | | 37,284,162 | | | | 545,136 | | | | 522,636 | |
| Net change in unrealized appreciation of investments and foreign currency | | | 173,485,809 | | | | 127,689,744 | | | | 3,474,653 | | | | 852,539 | |
| Net increase in net assets resulting from operations | | | 175,032,125 | | | | 166,047,014 | | | | 4,194,413 | | | | 1,681,024 | |
| DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (2,091,661 | ) | | | — | | | | (256,326 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (1,561,461 | ) |
| Total distributions | | | — | | | | (2,091,661 | ) | | | — | | | | (1,817,787 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (146,854 | ) | | | — | | | | (40,937 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (297,758 | ) |
| Total distributions | | | — | | | | (146,854 | ) | | | — | | | | (338,695 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (4,623 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (51,491 | ) |
| Total distributions | | | — | | | | — | | | | — | | | | (56,114 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (1,577,657 | ) | | | N/A | | | | N/A | |
| Total distributions | | | — | | | | (1,577,657 | ) | | | N/A | | | | N/A | |
| CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 63,044,453 | | | | 64,026,639 | | | | 4,427,476 | | | | 726,629 | |
| Redemption fees | | | 4,473 | | | | 3,832 | | | | 2,302 | | | | 179 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 1,971,657 | | | | — | | | | 1,796,827 | |
| Cost of shares redeemed | | | (57,138,479 | ) | | | (161,429,928 | ) | | | (3,886,692 | ) | | | (4,192,023 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 5,910,447 | | | | (95,427,800 | ) | | | 543,086 | | | | (1,668,388 | ) |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 15,186,696 | | | | 18,086,486 | | | | 1,166,985 | | | | 313,634 | |
| Redemption fees | | | 4,080 | | | | 796 | | | | 136 | | | | 2 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 132,398 | | | | — | | | | 201,396 | |
| Cost of shares redeemed | | | (16,725,518 | ) | | | (57,418,386 | ) | | | (770,613 | ) | | | (1,109,278 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (1,534,742 | ) | | | (39,198,706 | ) | | | 396,508 | | | | (594,246 | ) |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Paradigm Fund | | | The Medical Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CAPITAL SHARE TRANSACTIONS —ADVISOR CLASS C: | | | | | | | | | | | | |
| Proceeds from shares sold | | $ | 4,228,586 | | | $ | 3,849,753 | | | $ | 59,929 | | | $ | 36,059 | |
| Redemption fees | | | 4 | | | | 52 | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | — | | | | — | | | | 29,798 | |
| Cost of shares redeemed | | | (9,634,958 | ) | | | (25,024,304 | ) | | | (63,507 | ) | | | (181,789 | ) |
| Net decrease in net assets resulting from capital share transactions | | | (5,406,368 | ) | | | (21,174,499 | ) | | | (3,578 | ) | | | (115,932 | ) |
| CAPITAL SHARE TRANSACTIONS —INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 68,030,507 | | | | 81,609,346 | | | | N/A | | | | N/A | |
| Redemption fees | | | 3,708 | | | | 6,189 | | | | N/A | | | | N/A | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 1,311,574 | | | | N/A | | | | N/A | |
| Cost of shares redeemed | | | (35,466,250 | ) | | | (57,342,208 | ) | | | N/A | | | | N/A | |
| Net increase in net assets resulting from capital share transactions | | | 32,567,965 | | | | 25,584,901 | | | | N/A | | | | N/A | |
TOTAL INCREASE (DECREASE) IN NET ASSETS:. | | | 206,569,427 | | | | 32,014,738 | | | | 5,130,429 | | | | (2,910,138 | ) |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 846,325,640 | | | | 814,310,902 | | | | 17,286,844 | | | | 20,196,982 | |
| End of period* | | $ | 1,052,895,067 | | | $ | 846,325,640 | | | $ | 22,417,273 | | | $ | 17,286,844 | |
| * Including undistributed net investment income (loss) of: | | $ | (11,513,102 | ) | | $ | (9,449,805 | ) | | $ | 202,996 | | | $ | 28,372 | |
| CHANGES IN SHARES OUTSTANDING —NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,303,268 | | | | 2,761,190 | | | | 202,590 | | | | 36,993 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 83,157 | | | | — | | | | 101,230 | |
| Shares redeemed | | | (2,122,694 | ) | | | (7,210,869 | ) | | | (179,429 | ) | | | (211,946 | ) |
| Net increase (decrease) in shares outstanding | | | 180,574 | | | | (4,366,522 | ) | | | 23,161 | | | | (73,723 | ) |
| CHANGES IN SHARES OUTSTANDING —ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 571,541 | | | | 793,709 | | | | 55,133 | | | | 16,529 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 5,675 | | | | — | | | | 11,668 | |
| Shares redeemed | | | (627,132 | ) | | | (2,600,387 | ) | | | (39,855 | ) | | | (56,326 | ) |
| Net increase (decrease) in shares outstanding | | | (55,591 | ) | | | (1,801,003 | ) | | | 15,278 | | | | (28,129 | ) |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Paradigm Fund | | | The Medical Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | |
| Shares sold | | | 167,239 | | | | 180,440 | | | | 2,913 | | | | 1,995 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | — | | | | — | | | | 1,741 | |
| Shares redeemed | | | (379,002 | ) | | | (1,172,251 | ) | | | (3,243 | ) | | | (9,532 | ) |
| Net decrease in shares outstanding | | | (211,763 | ) | | | (991,811 | ) | | | (330 | ) | | | (5,796 | ) |
| CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,492,081 | | | | 3,733,029 | | | | N/A | | | | N/A | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 55,434 | | | | N/A | | | | N/A | |
| Shares redeemed | | | (1,282,907 | ) | | | (2,534,864 | ) | | | N/A | | | | N/A | |
| Net increase in shares outstanding | | | 1,209,174 | | | | 1,253,599 | | | | N/A | | | | N/A | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Small Cap Opportunities Fund | | | The Market Opportunities Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (58,400 | ) | | $ | 30,632 | | | $ | 75,144 | | | $ | 52,756 | |
| Net realized gain on sale of investments and foreign currency | | | 1,751,836 | | | | 7,834,606 | | | | 2,093,051 | | | | 4,862,677 | |
| Net change in unrealized appreciation of investments and foreign currency | | | 25,219,701 | | | | 12,106,767 | | | | 7,755,133 | | | | 2,198,282 | |
| Net increase in net assets resulting from operations | | | 26,913,137 | | | | 19,972,005 | | | | 9,923,328 | | | | 7,113,715 | |
| DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (532,781 | ) |
| Total distributions | | | — | | | | — | | | | — | | | | (532,781 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (84,630 | ) |
| Total distributions | | | — | | | | — | | | | — | | | | (84,630 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (33,350 | ) |
| Total distributions | | | — | | | | — | | | | — | | | | (33,350 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (4,195 | ) |
| Total distributions | | | — | | | | — | | | | — | | | | (4,195 | ) |
| CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 55,285,064 | | | | 1,841,937 | | | | 3,090,593 | | | | 630,318 | |
| Redemption fees | | | 2,014 | | | | 434 | | | | 2,177 | | | | 455 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | — | | | | — | | | | 531,266 | |
| Cost of shares redeemed | | | (12,110,701 | ) | | | (21,727,814 | ) | | | (1,608,338 | ) | | | (3,055,029 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 43,176,377 | | | | (19,885,443 | ) | | | 1,484,432 | | | | (1,892,990 | ) |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 4,536,975 | | | | 712,257 | | | | 2,105,360 | | | | 400,180 | |
| Redemption fees | | | 574 | | | | 23 | | | | 1,579 | | | | 280 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | — | | | | — | | | | 69,282 | |
| Cost of shares redeemed | | | (1,136,382 | ) | | | (2,129,011 | ) | | | (1,410,667 | ) | | | (3,721,538 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 3,401,167 | | | | (1,416,731 | ) | | | 696,272 | | | | (3,251,796 | ) |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Small Cap Opportunities Fund | | | The Market Opportunities Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | | | | | |
| Proceeds from shares sold | | $ | 1,137,305 | | | $ | 162,437 | | | $ | 200,968 | | | $ | 162,143 | |
| Redemption fees | | | — | | | | — | | | | 73 | | | | 101 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | — | | | | — | | | | 29,824 | |
| Cost of shares redeemed | | | (238,829 | ) | | | (634,738 | ) | | | (292,128 | ) | | | (1,117,534 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 898,476 | | | | (472,301 | ) | | | (91,087 | ) | | | (925,466 | ) |
| CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 8,491,076 | | | | 2,959,765 | | | | 12,103,715 | | | | 57,706 | |
| Redemption fees | | | — | | | | 532 | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 50 | | | | — | | | | 1,417 | |
| Cost of shares redeemed | | | (1,378,655 | ) | | | (2,620,000 | ) | | | (8,557,443 | ) | | | (48,403 | ) |
| Net increase in net assets resulting from capital share transactions | | | 7,112,421 | | | | 340,347 | | | | 3,546,272 | | | | 10,720 | |
TOTAL INCREASE (DECREASE) IN NET ASSETS:. | | | | | | | | | | | | | | | | |
| NET ASSETS: | | | 81,501,578 | | | | (1,462,123 | ) | | | 15,559,217 | | | | 399,227 | |
| Beginning of period | | | 81,523,395 | | | | 82,985,518 | | | | 43,608,255 | | | | 43,209,028 | |
| End of period* | | $ | 163,024,973 | | | $ | 81,523,395 | | | $ | 59,167,472 | | | $ | 43,608,255 | |
| * Including undistributed net investment loss of: | | $ | (805,438 | ) | | $ | (747,038 | ) | | $ | (1,081,462 | ) | | $ | (1,156,606 | ) |
| CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,846,599 | | | | 80,246 | | | | 214,526 | | | | 54,575 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | — | | | | — | | | | 44,495 | |
| Shares redeemed | | | (398,545 | ) | | | (953,945 | ) | | | (109,596 | ) | | | (263,041 | ) |
| Net increase (decrease) in shares outstanding | | | 1,448,054 | | | | (873,699 | ) | | | 104,930 | | | | (163,971 | ) |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 145,499 | | | | 30,501 | | | | 142,530 | | | | 34,816 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | — | | | | — | | | | 5,807 | |
| Shares redeemed | | | (38,558 | ) | | | (95,419 | ) | | | (102,975 | ) | | | (325,109 | ) |
| Net increase (decrease) in shares outstanding | | | 106,941 | | | | (64,918 | ) | | | 39,555 | | | | (284,486 | ) |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Small Cap Opportunities Fund | | | The Market Opportunities Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | |
| Shares sold | | | 39,260 | | | | 7,094 | | | | 14,537 | | | | 14,383 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | — | | | | — | | | | 2,527 | |
| Shares redeemed | | | (8,356 | ) | | | (29,018 | ) | | | (20,789 | ) | | | (97,683 | ) |
| Net increase (decrease) in shares outstanding | | | 30,904 | | | | (21,924 | ) | | | (6,252 | ) | | | (80,773 | ) |
| CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 268,698 | | | | 133,450 | | | | 837,123 | | | | 5,247 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 3 | | | | — | | | | 118 | |
| Shares redeemed | | | (45,625 | ) | | | (113,744 | ) | | | (578,329 | ) | | | (4,211 | ) |
| Net increase in shares outstanding | | | 223,073 | | | | 19,709 | | | | 258,794 | | | | 1,154 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Alternative Income Fund | | | The Multi- Disciplinary Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (27,373 | ) | | $ | 186,370 | | | $ | 719,425 | | | $ | 1,275,828 | |
| Net realized gain (loss) on sale of investments, foreign currency, written option contracts expired or closed, securities sold short and distributions received from other investment companies | | | (52,988 | ) | | | 309,517 | | | | 1,219,096 | | | | 1,177,010 | |
| Net change in unrealized appreciation(depreciation) of investments, foreign currency, written options and securities sold short | | | 247,533 | | | | 604,822 | | | | (2,366,167 | ) | | | 2,744,146 | |
| Net increase (decrease) in net assets resulting from operations | | | 167,172 | | | | 1,100,709 | | | | (427,646 | ) | | | 5,196,984 | |
| DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (121,802 | ) | | | (258,238 | ) | | | (679,067 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (200,492 | ) |
| Total distributions | | | — | | | | (121,802 | ) | | | (258,238 | ) | | | (879,559 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (54,584 | ) | | | (492,966 | ) | | | (647,761 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (258,629 | ) |
| Total distributions | | | — | | | | (54,584 | ) | | | (492,966 | ) | | | (906,390 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (29,650 | ) | | | (92,494 | ) | | | (173,702 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (77,474 | ) |
| Total distributions | | | — | | | | (29,650 | ) | | | (92,494 | ) | | | (251,176 | ) |
| DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (45,289 | ) | | | (203,351 | ) | | | (218,586 | ) |
| Net realized gains | | | — | | | | — | | | | — | | | | (67,014 | ) |
| Total distributions | | | — | | | | (45,289 | ) | | | (203,351 | ) | | | (285,600 | ) |
| CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 8,116,556 | | | | 1,553,283 | | | | 5,351,422 | | | | 9,228,811 | |
| Redemption fees | | | — | | | | 78 | | | | 334 | | | | 725 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 108,785 | | | | 205,424 | | | | 651,115 | |
| Cost of shares redeemed | | | (1,968,408 | ) | | | (2,871,859 | ) | | | (5,138,920 | ) | | | (5,059,428 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 6,148,148 | | | | (1,209,713 | ) | | | 418,260 | | | | 4,821,223 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Alternative Income Fund | | | The Multi- Disciplinary Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | |
| Proceeds from shares sold | | $ | 211,781 | | | $ | 255,900 | | | $ | 25,301,273 | | | $ | 22,935,328 | |
| Redemption fees | | | 313 | | | | — | | | | 1,537 | | | | 5,989 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 46,863 | | | | 477,525 | | | | 851,763 | |
| Cost of shares redeemed | | | (1,039,977 | ) | | | (2,604,163 | ) | | | (3,304,256 | ) | | | (3,459,167 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (827,883 | ) | | | (2,301,400 | ) | | | 22,476,079 | | | | 20,333,913 | |
| CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 417,356 | | | | 250,862 | | | | 3,546,702 | | | | 6,096,378 | |
| Redemption fees | | | — | | | | — | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 19,420 | | | | 86,580 | | | | 240,039 | |
| Cost of shares redeemed | | | (578,025 | ) | | | (992,794 | ) | | | (212,214 | ) | | | (801,065 | ) |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (160,669 | ) | | | (722,512 | ) | | | 3,421,068 | | | | 5,535,352 | |
| CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 1,901,750 | | | | 1,083,914 | | | | 8,549,166 | | | | 2,153,101 | |
| Redemption fees | | | — | | | | 159 | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 31,108 | | | | 197,983 | | | | 276,678 | |
| Cost of shares redeemed | | | (252,056 | ) | | | (327,778 | ) | | | (62,107 | ) | | | (240,894 | ) |
| Net increase in net assets resulting from capital share transactions | | | 1,649,694 | | | | 787,403 | | | | 8,685,042 | | | | 2,188,885 | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | | | 6,976,462 | | | | (2,596,838 | ) | | | 33,525,754 | | | | 35,753,632 | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 10,689,218 | | | | 13,286,056 | | | | 59,391,609 | | | | 23,637,977 | |
| End of period* | | $ | 17,665,680 | | | $ | 10,689,218 | | | $ | 92,917,363 | | | $ | 59,391,609 | |
| * Including undistributed net investment loss of: | | $ | (99,828 | ) | | $ | (72,455 | ) | | $ | (760,625 | ) | | $ | (433,001 | ) |
| CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 918,681 | | | | 183,153 | | | | 470,557 | | | | 848,038 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 13,044 | | | | 18,323 | | | | 59,656 | |
Shares redeemed(1) | | | (1,353,956 | ) | | | (352,741 | ) | | | (453,225 | ) | | | (467,948 | ) |
| Net increase (decrease) in shares outstanding | | | (435,275 | ) | | | (156,544 | ) | | | 35,655 | | | | 439,746 | |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Statements of Changes in Net Assets — (Continued) |
| | | The Alternative Income Fund | | | The Multi- Disciplinary Fund | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | | | | | |
| Shares sold | | | 24,303 | | | | 30,908 | | | | 2,239,789 | | | | 2,108,470 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 5,612 | | | | 42,908 | | | | 78,399 | |
Shares redeemed(1) | | | (314,412 | ) | | | (311,285 | ) | | | (294,643 | ) | | | (321,378 | ) |
| Net increase (decrease) in shares outstanding | | | (290,109 | ) | | | (274,765 | ) | | | 1,988,054 | | | | 1,865,491 | |
| CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 25,317 | | | | 30,770 | | | | 318,253 | | | | 570,311 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 2,357 | | | | 7,811 | | | | 22,235 | |
Shares redeemed(1) | | | (220,176 | ) | | | (120,473 | ) | | | (19,055 | ) | | | (74,099 | ) |
| Net increase (decrease) in shares outstanding | | | (194,859 | ) | | | (87,346 | ) | | | 307,009 | | | | 518,447 | |
| CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 206,476 | | | | 127,757 | | | | 749,729 | | | | 205,219 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 3,699 | | | | 17,613 | | | | 25,267 | |
Shares redeemed(1) | | | (361,741 | ) | | | (39,174 | ) | | | (5,500 | ) | | | (21,810 | ) |
| Net increase (decrease) in shares outstanding | | | (155,265 | ) | | | 92,282 | | | | 761,842 | | | | 208,676 | |
| | | |
| (1) | Shares redeemed include: 1,198,771 No Load Class shares, 210,478 Class A shares, 159,007 Class C shares and 332,551 Institutional Class shares respectively due to the reverse split. Please see Note 10 for more information. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements June 30, 2013 (Unaudited) |
Kinetics Mutual Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and is incorporated in the State of Maryland. The Company is an open-end management investment company issuing its shares in series. One billion shares are authorized for the Company with a par value of $0.001 per share. The series of the Company presently authorized are The Internet Fund (“Internet”), The Global Fund (“Global”), The Paradigm Fund (“Paradigm”), The Medical Fund (“Medical”), The Small Cap Opportunities Fund (“Small Cap”), The Market Opportunities Fund (“Market Opportunities”), The Alternative Income Fund (“Alternative Income”), and The Multi-Disciplinary Fund (“Multi-Disciplinary”). Investment operations of the Company began on October 21, 1996 (Internet), September 30, 1999 (Medical), December 31, 1999 (Global and Paradigm), March 20, 2000 (Small Cap), January 31, 2006 (Market Opportunities), June 29, 2007 (Alternative Income), and February 11, 2008 (Multi-Disciplinary). Each series, unlike many other investment companies which directly acquire and manage their own portfolios of securities, seeks to achieve its investment objective by investing all of its investable assets in a corresponding portfolio series (each a “Master Portfolio” and collectively the “Master Portfolios”) of Kinetics Portfolios Trust (the “Trust”).
On April 28, 2000 (January 31, 2006 with respect to Market Opportunities, June 29, 2007 with respect to Alternative Income, and February 11, 2008 with respect to Multi-Disciplinary), each series in the Company entered into a master-feeder fund structure. By entering into this structure, each series (each a “Feeder Fund” and collectively, the “Feeder Funds”) invested all of its assets in a corresponding Master Portfolio which had the same investment objective as the Feeder Fund. Each Master Portfolio has multiple feeder funds. Each Feeder Fund receives a proportionate amount of interest in the Master Portfolio equal to its relative contribution of capital. Thus, each Feeder Fund is allocated its portion of income, gains (losses) and expenses from the Master Portfolio.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Each Feeder Fund’s respective interest in the corresponding Master Portfolio as of June 30, 2013 is as follows:
| | |
| | Interest in |
| | Master Portfolio |
| Internet Fund | 99.991% |
| Global Fund | 99.921% |
| Paradigm Fund | 95.986% |
| Medical Fund | 99.896% |
| Small Cap Fund | 99.979% |
| Market Opportunities Fund | 99.976% |
| Alternative Income Fund | 99.385% |
| Multi-Disciplinary Fund | 99.842% |
Prior to the conversion to a master-feeder fund structure on April 28, 2000, each then existing series conducted its own investment operations.
As of June 30, 2013 each of the Feeder Funds offers Advisor Class A shares. Advisor Class A shares are subject to an annual Rule 12b-1 fee of 0.25% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. The Advisor Class A shares are also subject to a front-end sales charge of 5.75%.
As of June 30, 2013, each of the Feeder Funds offers Advisor Class C shares. Advisor Class C shares are subject to an annual Rule 12b-1 fee of 0.75% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. Advisor Class C shares do not have a sales charge.
As of June 30, 2013, each of the Feeder Funds offers No Load Class shares. No Load Class shares are subject to a shareholder servicing fee of 0.25% of average daily net assets but do not have 12b-1 fees or a sales charge.
As of June 30, 2013 the Paradigm, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds offer Institutional Class shares. Institutional Class shares are subject to a shareholder servicing fee of 0.20% of average daily net assets but do not have 12b-1 fees or a sales charge.
Each class of shares for each Fund has identical rights and privileges except with respect to the Rule 12b-1 fees paid by the Advisor Class A and Advisor Class C shares, the sales charge on the Advisor Class A shares, the shareholder servicing fees paid by the Advisor Class A, Advisor Class C, No Load Class and
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Institutional Class shares, voting rights on matters pertaining to a single class of shares and the exchange privileges of each class of shares. Shares of each Feeder Fund will assess a 2.00% redemption fee (with exceptions) on shares redeemed or exchanged within 30 days of purchase. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class based on its relative net assets.
Refer to the Master Portfolio’s financial statements to obtain information about the investment objective of the corresponding Feeder Fund. The financial statements of the Master Portfolios, including the portfolios of investments, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.
| 2. Significant Accounting Policies |
Security Valuation
Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which an option is quoted, thus providing a view across the entire U.S. options marketplace. Composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. If the composite option price is not available, the mean between the highest bid and the lowest asked quotations at the close of the exchanges will be used. If none of the above are available, exchange traded options are valued at the last
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
quoted sales price. Non-exchange traded options for which over-the-counter quotations are not readily available are valued at the mean of the current bid and asked prices. Fixed-income securities (other than obligations having a maturity of 60 days or less) are normally valued on the basis of quotes obtained from pricing services, which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data.
Instruments with remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value. Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Advisor or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Advisor; and (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At June 30, 2013, 0.00%, 0.00%, 0.00%, 0.00% and 0.00% of the net assets of The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Fund and The Market Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at June 30, 2013.
Repurchase Agreements
Each Master Portfolio may enter into repurchase agreements with banks that are members of the Federal Reserve System or securities dealers who are members of a national securities exchange or are primary dealers in U.S. Government Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 102% of the amount invested by the Master Portfolio in each repurchase
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
agreement. If the seller defaults and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.
Written Option Accounting
The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When the Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.
Foreign Currency Translations
The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market values of investment securities and other assets and liabilities are translated at the exchange rate of such currencies against the U.S. dollar, as provided by an approved pricing service, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes to market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
from investments. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.
Restricted and Illiquid Securities
The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At June 30, 2013 the following Master Portfolio held securities restricted to institutional investors (144A securities):
| | | | Percentage of |
| | Market Value | | Net Assets |
| The Multi-Disciplinary Portfolio | $8,991,437 | | 9.66% |
An illiquid asset is any asset which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the Master Portfolio has valued the investment. At June 30, 2013, the following Master Portfolios held illiquid securities:
| | | | Percentage of |
| Market Value | | Net Assets |
| The Internet Portfolio | $0.00 | | 0.00% |
| The Global Portfolio | 0.00 | | 0.00% |
| The Paradigm Portfolio | 0.00 | | 0.00% |
| The Medical Portfolio | 0.00 | | 0.00% |
| The Market Opportunities Portfolio | 0.00 | | 0.00% |
When-Issued Securities
The Master Portfolios may purchase securities on a when-issued or delayed delivery basis. Although the purchase amounts of these securities are established at the time the purchaser enters into the agreement, these securities may be delivered and paid for at a future date. The Master Portfolios record purchases of when-issued securities and reflect the values of such securities in determining net asset value in the same manner as other portfolio securities. The Master Portfolios maintain at all times cash or other liquid assets in an amount at least equal to the amount of outstanding commitments for when-issued securities.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Securities Lending
Each Master Portfolio may lend its portfolio securities to broker-dealers by entering directly into lending arrangements with such broker-dealers or indirectly through repurchase agreements with respect to no more than 331/3% of the total assets of each Master Portfolio (including any collateral posted) or 50% of the total assets of each Master Portfolio (excluding any collateral posted). Securities lending and repurchase transactions will be fully collateralized at all times with cash and/or short-term debt obligations. The Master Portfolios receive intere st on the collateral received as well as a fee for the securities loaned.
Expense Allocation
Common expenses incurred by Feeder Funds are allocated among the Feeder Funds (i) based upon relative average net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the Feeder Funds, depending on the nature of the expenditure.
Each Feeder Fund records its proportionate share of the corresponding Master Portfolio’s expenses on a daily basis. In addition, each Feeder Fund accrues its own separate expenses. Any cap on expenses includes Feeder Fund-specific expenses as well as the expenses allocated from the Master Portfolio.
Federal Income Taxes
Each Master Portfolio will be treated as a partnership for federal income tax purposes. As such, each investor in the Master Portfolio via its investment in a Feeder Fund will be subject to taxation on its share of the Master Portfolio’s ordinary income and capital gains. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio via its investment in a Feeder Fund can satisfy the requirements of subchapter M of the Internal Revenue Code.
It is the Feeder Funds’ policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and the Feeder Funds intend to distribute investment company net taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is recorded.
Dividends from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. The character of
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
distributions made during the year from net investment income or net realized gains may differ from the characterization for federal income tax purposes due to differences in the recognition of income, expenses and gain items for financial statement and tax purposes. Additionally, the Feeder Funds may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. Where appropriate, reclassifications between capital accounts are made for such differences that are permanent in nature.
There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. As of June 30, 2013, open tax years include the tax years ended December 31, 2009 through 2012. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Other
Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis and includes amortization of premiums and discounts on the interest method. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates.
The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management LLC (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Master Portfolios. The Adviser is a wholly-owned subsidiary of
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Horizon Kinetics LLC. Under the terms of the Agreements, the Master Portfolios, except the Alternative Income Portfolio, compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets. The Alternative Income Portfolio began compensating the Adviser for its management services at the annual rate of 0.90% of the Master Portfolio’s average daily net assets beginning January 1, 2013.
The Adviser has voluntarily agreed to waive a portion of its advisory fee and/or reimburse certain operating expenses as deemed appropriate. The Adviser may discontinue the voluntary waiver/reimbursement at any time; these waivers/reimbursements are not subject to recapture.
For the period ended June 30, 2013, the rate earned by the Adviser from the Master Portfolios and the waived fees/reimbursed expenses for the Feeder Funds are as follows:
| | | The Internet Fund | | | The Global Fund | |
| Annual advisory rate | | | 1.25 | % | | | 1.25 | % |
| Expenses reimbursed by Adviser through voluntary waiver | | $ | — | | | $ | 61,050 | |
| Expenses reimbursed by Adviser through institutional class shareholder servicing fee waiver | | $ | — | | | $ | — | |
| | | The Paradigm Fund | | | The Medical Fund | |
| Annual advisory rate | | | 1.25 | % | | | 1.25 | % |
| Expenses reimbursed by Adviser through voluntary waiver | | $ | 486,099 | | | $ | 74,508 | |
| Expenses reimbursed by Adviser through institutional class shareholder servicing fee waiver | | $ | 178,444 | | | $ | — | |
| | | The Small Cap Opportunities Fund | | | The Market Opportunities Fund | |
| Annual advisory rate | | | 1.25 | % | | | 1.25 | % |
| Expenses reimbursed by Adviser through voluntary waiver | | $ | 82,071 | | | $ | 64,640 | |
| Expenses reimbursed by Adviser through institutional class shareholder servicing fee waiver | | $ | 7,760 | | | $ | 3,077 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
| | | The Alternative Income Fund | | | The Multi- Disciplinary Fund | |
| Annual Advisory Rate | | | 0.90 | % | | | 1.25 | % |
| Expenses Reimbursed by Adviser through voluntary waiver | | $ | 90,357 | | | $ | 138,426 | |
| Expenses Reimbursed by Adviser through institutional class shareholder servicing fee waiver | | $ | 1,922 | | | $ | 9,303 | |
The Adviser receives a shareholder servicing fee from the No Load Class, Advisor Class A and Advisor Class C shares of a Feeder Fund pursuant to a Shareholder Servicing Agreement in the amount equal to 0.25% of the Feeder Fund’s average daily net assets attributable to No Load Class, Advisor Class A and Advisor Class C shares, respectively. For the Institutional Class, the Adviser receives a shareholder servicing fee pursuant to a shareholder servicing agreement in the amount equal to 0.20% of a Feeder Fund’s average daily net assets attributable to Institutional Class shares. At this time, the Adviser has contractually agreed to waive and/or reimburse the portion of the Institutional Class shareholder servicing fee in excess of 0.05% of a Feeder Fund’s average daily net assets attributable to Institutional Class shares until at least May 1, 2014. For the six months ended June 30, 2013, the Adviser waived amounts depicted in the above table in shareholder servicing fees for the Institutional Class of the Paradigm, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds. The Adviser is responsible for paying a portion of these shareholder servicing fees to various agents that have a written shareholder servicing agreement with the Adviser and that perform shareholder servicing functions and maintenance of shareholder accounts on behalf of their clients who own shares of the Feeder Funds.
For the six months ended June 30, 2013, the Feeder Funds were allocated $13,000 for the services of the Chief Compliance Officer employed by the Adviser.
The Company, on behalf of the Feeder Funds, has adopted two Retail Distribution Plans pursuant to Rule 12b-1 under the 1940 Act (the “12b-1Plans”). One Plan is for Advisor Class A shares, while the other Plan is for Advisor Class C shares. Under the first Plan, Advisor Class A shares may pay up to an annual rate of 0.50% of the average daily net asset value of Advisor Class A shares to the Distributor or other qualified recipients under the Plan. During the six months ended June 30, 2013, payments under the 12b-1 Plan for
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds were limited to 0.25% of the average daily net asset value of such shares of such Funds. During the six months ended June 30, 2013, the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds incurred expenses of $2,170, $1,252, $189,714, $3,661, $12,326, $9,093, $2,703 and $47,184, respectively, pursuant to the 12b-1 Plan. Under the second Plan, Advisor Class C shares pay an annual rate of 0.75% of the average daily net asset value of such shares. During the six months ended June 30, 2013, Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds Advisor Class C Shares incurred expenses of $990, $2,665, $416,332, $1,904, $12,787, $16,883, $6,053 and $34,572, respectively, pursuant to the 12b-1 Plan.
Kinetics Funds Distributor, LLC (the “Distributor”) acts as the Feeder Funds’ principal underwriter in a continuous public offering of the Feeder Funds’ shares. The Distributor is an affiliate of the Adviser. For the six months ended June 30, 2013, the Distributor received $1,280, $394, $19,504, $1,064, $1,944, $885, $670, and $9,970 from sales loads from the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds.
| 4. Reclassification of Capital Accounts |
GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended December 31, 2012, each Feeder Fund recorded the following reclassifications to the accounts listed below:
| | | INCREASE (DECREASE) | |
| | | Paid In Capital | | | Accumulated Net Investment Income (Loss) | | | Accumulated Net Realized Gain (Loss) | |
| The Internet Fund | | $ | (562,313 | ) | | $ | 554,229 | | | $ | 8,084 | |
| The Global Fund | | | — | | | | 53,089 | | | | (53,089 | ) |
| The Paradigm Fund | | | — | | | | 6,337,895 | | | | (6,337,895 | ) |
| The Medical Fund | | | — | | | | (3,259 | ) | | | 3,259 | |
| The Small Cap Fund | | | (536,024 | ) | | | 33,023 | | | | 503,001 | |
| The Market Opportunities Fund | | | (126,217 | ) | | | 1,593,523 | | | | (1,467,306 | ) |
| The Alternative Income Fund | | | (9,435. | ) | | | 101,358 | | | | (91,923 | ) |
| The Multi-Disciplinary Fund | | | (50,734 | ) | | | 143,373 | | | | (92,639 | ) |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
At December 31, 2012, the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds had $0, $12,171, $8,045,811, $28,372, $0, $220,821 $0, and $392,566, respectively, of undistributed net investment income on a tax basis.
At December 31, 2012, the Internet and Medical Funds had $3,213,576 and $144,235, respectively, of accumulated net realized gains on a tax basis.
At December 31, 2012, the Feeder Funds had accumulated net realized capital loss carryforwards expiring in the following years:
| Feeder Fund | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | |
| Global | | $ | — | | | $ | 391,787 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Paradigm | | | 115,786,082 | | | | 445,505,345 | | | | 206,726,423 | | | | — | | | | — | | | | — | |
| Small Cap | | | 8,224,702 | | | | 96,486,615 | | | | 53,815,879 | | | | — | | | | — | | | | — | |
| Market Opportunities | | | 2,108,533 | | | | 6,623,055 | | | | 20,630,375 | | | | — | | | | — | | | | — | |
| Alternative Income | | | 2,203,647 | | | | 4,868,599 | | | | 988,771 | | | | — | | | | — | | | | — | |
As a result of the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), losses incurred in this fiscal year and beyond retain their character, short-term or long-term, have no expiration date and are utilized prior to capital loss carryforwards accumulated before the enactment of the Modernization Act.
For the year ended December 31, 2012, the following Feeder Funds utilized capital loss carryforwards:
| Fund | | Capital Loss Carryforward | |
| Global | | $ | 60,657 | |
| Paradigm | | | 30,509,870 | |
| Small Cap | | | 9,136,443 | |
| Market Opportunities | | | 3,392,052 | |
| Alternative Income | | | 442,025 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSNotes to Financial Statements — (Continued)June 30, 2013 (Unaudited) |
At December 31, 2012, the following Feeder Funds deferred, on a tax basis, post-October losses:
| Feeder Fund | | Post-October Losses | | | Post-October Currency Losses | |
| Internet | | $ | — | | | $ | — | |
| Global | | | — | | | | — | |
| Paradigm | | | 591,431 | | | | — | |
| Medical | | | — | | | | — | |
| Small Cap | | | 32,888 | | | | 182,544 | |
| Market Opportunities | | | — | | | | — | |
| Alternative Income | | | 348,512 | | | | 72,455 | |
| Multi-Disciplinary | | | — | | | | — | |
The tax components of dividends paid during the years ended December 31, 2012 and December 31, 2011, are:
| | | Internet | | | Global | |
| | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | |
| 2012 | | $ | — | | | $ | 5,260,270 | | | $ | 156,516 | | | $ | — | |
| 2011 | | $ | — | | | $ | 734,212 | | | $ | 31,833 | | | $ | — | |
| | | Paradigm | | | Medical | |
| | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | |
| 2012 | | $ | 3,816,172 | | | $ | — | | | $ | 301,886 | | | $ | 1,910,710 | |
| 2011 | | $ | 7,652,859 | | | $ | — | | | $ | 237,948 | | | $ | 1,483,472 | |
| | | Small Cap | | | Market Opportunities | |
| | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | |
| 2012 | | $ | — | | | $ | — | | | $ | 654,956 | | | $ | — | |
| 2011 | | $ | 1,133,648 | | | $ | — | | | $ | 388,006 | | | $ | — | |
| | | Alternative Income | | | Multi-Disciplinary | |
| | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | | | Ordinary Income Distribution | | | Long-Term Capital Gains Distribution | |
| 2012 | | $ | 251,325 | | | $ | — | | | $ | 2,322,725 | | | $ | — | |
| 2011 | | $ | 268,563 | | | $ | — | | | $ | 727,453 | | | $ | 40,907 | |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSNotes to Financial Statements — (Continued)June 30, 2013 (Unaudited) |
6. Tax Information
The Global, Paradigm, Medical, and Market Opportunities Funds designate 54%, 100%, 100% and 100%, respectively, of dividends declared after December 31, 2012 from net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds hereby designate 0%, 100%, 100%, 14%, 0%, 100%, 100% and 100%, respectively, as ordinary income distributions and 100% and 86% for the Internet and Medical Funds as long-term capital gain distributions for the purposes of the dividends paid deduction, which include earnings and profits distributed to shareholders on redemptions of Fund shares.
For corporate shareholders in the Feeder Funds, the percentage of ordinary dividend income distributed for the year ended December 31, 2012, which is designated as qualifying for the dividends-received deduction, is as follows: Global 22%, Paradigm 100%, Medical 100%, and Market Opportunities 63%. The Alternative Income and Multi-Disciplinary Funds designate 96% and 91%, respectively, of their ordinary income distributions for the fiscal year ended December 31, 2012 as interest-related dividends under Internal Revenue Code Section 871(k) (l) (C).
The Multi-Disciplinary Fund designates 26% of its ordinary income distribution as a short-term capital gain distribution under Internal Revenue Code Section 871 (k) (2) (C).
7. Information about Proxy Voting
Information regarding how the Company and the Master Portfolios vote proxies relating to portfolio securities is available without charge, upon request by calling toll-free at 1-800-930-3828 or by accessing the Company’s website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Feeder Funds and the Master Portfolios voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSNotes to Financial Statements — (Continued)June 30, 2013 (Unaudited) |
8. Information about the Portfolio Holdings
The Feeder Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Form N-Q. The Feeder Funds’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
In preparing these financial statements, management has evaluated Fund related events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or translations that occurred during the period that materially impacted the amounts or disclosures in the Feeder Funds’ financial statements.
10. Reverse Stock Split
During the period ended June 30, 2013, shares of The Alternative Income Fund were adjusted to reflect a reverse stock split. The effect of the reverse stock split was to reduce the number of shares outstanding while maintaining the Fund’s and each shareholder’s aggregate net asset value. A summary of the reverse stock split is as follows:
| | Date | | Rate | | Net Asset Value Before Reverse Split | | Net Asset Value After Reverse Split | | Shares Outstanding Before Reverse Split | | Shares Outstanding After Reverse Split |
| Alternative Income Fund, | | | | | | | | | | | |
| No Load Class | 5/31/13 | | 1:10 | | 8.52 | | 85.20 | | 1,331,968 | | 133,197 |
| Alternative Income Fund, | | | | | | | | | | | |
| Class A | 5/31/13 | | 1:10 | | 8.52 | | 85.20 | | 233,864 | | 23,386 |
| Alternative Income Fund, | | | | | | | | | | | |
| Class C | 5/31/13 | | 1:10 | | 8.39 | | 83.90 | | 176,674 | | 17,667 |
| Alternative Income Fund, | | | | | | | | | | | |
| Institutional Class | 5/31/13 | | 1:10 | | 8.60 | | 86.00 | | 369,501 | | 36,950 |
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights |
| | | | The Internet Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 43.18 | | $ | 36.26 | | $ | 37.25 | | $ | 30.74 | | $ | 20.71 | | $ | 35.94 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.28 | ) | | (0.15 | ) | | (0.37 | ) | | (0.28 | ) | | (0.14 | ) | | 0.29 | |
| Net realized and unrealized gain (loss) on investments | | | 7.03 | | | 8.56 | | | (0.37 | ) | | 6.79 | | | 10.21 | | | (15.47 | ) |
| Total from investment operations | | | 6.75 | | | 8.41 | | | (0.74 | ) | | 6.51 | | | 10.07 | | | (15.18 | ) |
Redemption Fees(3) | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | — | | | — | | | (0.04 | ) | | (0.05 | ) |
| From net realized gains | | | — | | | (1.49 | ) | | (0.25 | ) | | — | | | — | | | — | |
| Total distributions | | | — | | | (1.49 | ) | | (0.25 | ) | | — | | | (0.04 | ) | | (0.05 | ) |
| Net Asset Value, End of Period | | $ | 49.93 | | $ | 43.18 | | $ | 36.26 | | $ | 37.25 | | $ | 30.74 | | $ | 20.71 | |
| Total return | | | 15.63 | %(4) | | 23.24 | % | | (1.98 | )% | | 21.18 | % | | 48.61 | % | | (42.24 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 174,976 | | $ | 155,036 | | $ | 103,828 | | $ | 113,085 | | $ | 104,666 | | $ | 75,112 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.84 | %(5) | | 1.94 | % | | 1.94 | % | | 1.95 | % | | 1.98 | % | | 2.03 | % |
After expense reimbursement(6) | | | 1.84 | %(5) | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.90 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.18 | )%(5) | | (0.41 | )% | | (0.99 | )% | | (0.91 | )% | | (0.64 | )% | | 0.90 | % |
After expense reimbursement(6) | | | (1.18 | )%(5) | | (0.36 | )% | | (0.94 | )% | | (0.85 | )% | | (0.55 | )% | | 1.03 | % |
Portfolio turnover rate(7) | | | 4 | % | | 9 | % | | 32 | % | | 12 | % | | 14 | % | | 19 | % |
| | | |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Internet Portfolio. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights — (Continued) |
| | | | The Internet Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 42.30 | | $ | 35.63 | | $ | 36.69 | | $ | 30.35 | | $ | 20.50 | | $ | 35.66 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.33 | ) | | (0.24 | ) | | (0.46 | ) | | (0.36 | ) | | (0.21 | ) | | 0.22 | |
| Net realized and unrealized gain (loss) on investments | | | 6.87 | | | 8.40 | | | (0.36 | ) | | 6.70 | | | 10.09 | | | (15.33 | ) |
| Total from investment operations | | | 6.54 | | | 8.16 | | | (0.82 | ) | | 6.34 | | | 9.88 | | | (15.11 | ) |
| Redemption Fees | | | — | | | — | | | 0.01 | | | 0.00 | (3) | | 0.01 | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | — | | | — | | | (0.04 | ) | | (0.05 | ) |
| From net realized gains | | | — | | | (1.49 | ) | | (0.25 | ) | | — | | | — | | | — | |
| Total distributions | | | — | | | (1.49 | ) | | (0.25 | ) | | — | | | (0.04 | ) | | (0.05 | ) |
| Net Asset Value, End of Period | | $ | 48.84 | | $ | 42.30 | | $ | 35.63 | | $ | 36.69 | | $ | 30.35 | | $ | 20.50 | |
Total return(4) | | | 15.49 | %(5) | | 22.92 | % | | (2.20 | )% | | 20.89 | % | | 48.23 | % | | (42.37 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 2,192 | | $ | 1,379 | | $ | 1,050 | | $ | 1,892 | | $ | 738 | | $ | 318 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.09 | %(6) | | 2.19 | % | | 2.19 | % | | 2.20 | % | | 2.23 | % | | 2.28 | % |
After expense reimbursement(7) | | | 2.09 | %(6) | | 2.14 | % | | 2.14 | % | | 2.14 | % | | 2.14 | % | | 2.15 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.43 | )%(6) | | (0.66 | )% | | (1.24 | )% | | (1.16 | )% | | (0.89 | )% | | 0.65 | % |
After expense reimbursement(7) | | | (1.43 | )%(6) | | (0.61 | )% | | (1.19 | )% | | (1.10 | )% | | (0.80 | )% | | 0.78 | % |
Portfolio turnover rate(8) | | | 4 | % | | 9 | % | | 32 | % | | 12 | % | | 14 | % | | 19 | % |
| | | |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Internet Portfolio. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights — (Continued) |
| | | | The Internet Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 40.79 | | $ | 34.58 | | $ | 35.79 | | $ | 29.76 | | $ | 20.20 | | $ | 35.31 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.43 | ) | | (0.43 | ) | | (0.63 | ) | | (0.51 | ) | | (0.31 | ) | | 0.08 | |
| Net realized and unrealized gain (loss) on investments | | | 6.63 | | | 8.13 | | | (0.34 | ) | | 6.54 | | | 9.91 | | | (15.15 | ) |
| Total from investment operations | | | 6.20 | | | 7.70 | | | (0.97 | ) | | 6.03 | | | 9.60 | | | (15.07 | ) |
| Redemption Fees | | | — | | | — | | | 0.01 | | | — | | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | — | | | — | | | (0.04 | ) | | (0.04 | ) |
| From net realized gains | | | — | | | (1.49 | ) | | (0.25 | ) | | — | | | — | | | — | |
| Total distributions | | | — | | | (1.49 | ) | | (0.25 | ) | | — | | | (0.04 | ) | | (0.04 | ) |
| Net Asset Value, End of Period | | $ | 46.99 | | $ | 40.79 | | $ | 34.58 | | $ | 35.79 | | $ | 29.76 | | $ | 20.20 | |
| Total return | | | 15.20 | %(3) | | 22.32 | % | | (2.67 | )% | | 20.26 | % | | 47.51 | % | | (42.67 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 458 | | $ | 185 | | $ | 103 | | $ | 196 | | $ | 120 | | $ | 113 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.59 | %(4) | | 2.69 | % | | 2.69 | % | | 2.70 | % | | 2.73 | % | | 2.78 | % |
After expense reimbursement(5) | | | 2.59 | %(4) | | 2.64 | % | | 2.64 | % | | 2.64 | % | | 2.64 | % | | 2.65 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.93 | )%(4) | | (1.16 | )% | | (1.74 | )% | | (1.66 | )% | | (1.39 | )% | | 0.15 | % |
After expense reimbursement(5) | | | (1.93 | )%(4) | | (1.11 | )% | | (1.69 | )% | | (1.60 | )% | | (1.30 | )% | | 0.28 | % |
Portfolio turnover rate(6) | | | 4 | % | | 9 | % | | 32 | % | | 12 | % | | 14 | % | | 19 | % |
| | | |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Not annualized. |
| (4) | Annualized. |
| (5) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Internet Portfolio. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights — (Continued) |
| | | | The Global Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 4.71 | | $ | 3.92 | | $ | 4.67 | | $ | 3.92 | | $ | 2.36 | | $ | 4.90 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.01 | | | 0.03 | | | 0.06 | | | 0.02 | | | 0.02 | | | 0.07 | |
| Net realized and unrealized gain (loss) on investments | | | 0.43 | | | 0.88 | | | (0.78 | ) | | 0.78 | | | 1.55 | | | (2.56 | ) |
| Total from investment operations | | | 0.44 | | | 0.91 | | | (0.72 | ) | | 0.80 | | | 1.57 | | | (2.49 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.01 | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.12 | ) | | (0.03 | ) | | (0.05 | ) | | (0.02 | ) | | (0.05 | ) |
| Total distributions | | | — | | | (0.12 | ) | | (0.03 | ) | | (0.05 | ) | | (0.02 | ) | | (0.05 | ) |
| Net Asset Value, End of Period | | $ | 5.15 | | $ | 4.71 | | $ | 3.92 | | $ | 4.67 | | $ | 3.92 | | $ | 2.36 | |
| Total return | | | 9.34 | %(4) | | 23.16 | % | | (15.41 | )% | | 20.30 | % | | 66.86 | % | | (50.72 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 6,906 | | $ | 5,069 | | $ | 3,631 | | $ | 4,541 | | $ | 4,370 | | $ | 1,863 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.92 | %(5) | | 3.38 | % | | 3.94 | % | | 4.17 | % | | 5.32 | % | | 5.98 | % |
After expense reimbursement(6) | | | 1.39 | %(5) | | 1.39 | % | | 1.39 | % | | 1.39 | % | | 1.39 | % | | 1.41 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.23 | )%(5) | | (1.22 | )% | | (1.11 | )% | | (2.26 | )% | | (3.27 | )% | | (2.72 | )% |
After expense reimbursement(6) | | | 0.30 | %(5) | | 0.77 | % | | 1.44 | % | | 0.52 | % | | 0.66 | % | | 1.85 | % |
Portfolio turnover rate(7) | | | 6 | % | | 23 | % | | 135 | % | | 122 | % | | 53 | % | | 98 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Global Portfolio. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights — (Continued) |
| | | | The Global Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | May 19, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 4.71 | | $ | 3.92 | | $ | 4.68 | | $ | 3.93 | | $ | 2.36 | | $ | 4.56 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.00 | (3) | | 0.02 | | | 0.05 | | | 0.01 | | | 0.01 | | | 0.03 | |
| Net realized and unrealized gain (loss) on investments | | | 0.43 | | | 0.88 | | | (0.78 | ) | | 0.78 | | | 1.57 | | | (2.18 | ) |
| Total from investment operations | | | 0.43 | | | 0.90 | | | (0.73 | ) | | 0.79 | | | 1.58 | | | (2.15 | ) |
| Redemption Fees | | | — | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.11 | ) | | (0.03 | ) | | (0.04 | ) | | (0.01 | ) | | (0.05 | ) |
| Total distributions | | | — | | | (0.11 | ) | | (0.03 | ) | | (0.04 | ) | | (0.01 | ) | | (0.05 | ) |
| Net Asset Value, End of Period | | $ | 5.14 | | $ | 4.71 | | $ | 3.92 | | $ | 4.68 | | $ | 3.93 | | $ | 2.36 | |
Total return(4) | | | 9.13 | %(5) | | 22.94 | % | | (15.59 | )% | | 20.04 | % | | 67.11 | % | | (47.12 | )%(5) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 1,092 | | $ | 1,093 | | $ | 392 | | $ | 707 | | $ | 368 | | $ | 106 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 3.17 | %(6) | | 3.63 | % | | 4.19 | % | | 4.42 | % | | 5.57 | % | | 8.28 | %(6) |
After expense reimbursement(7) | | | 1.64 | %(6) | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.65 | %(6) |
| Ratio of net investment income (loss)to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.48 | )%(6) | | (1.47 | )% | | (1.36 | )% | | (2.51 | )% | | (3.52 | )% | | (5.16 | )%(6) |
After expense reimbursement(7) | | | (0.05 | )%(6) | | 0.52 | % | | 1.19 | % | | 0.27 | % | | 0.41 | % | | 1.47 | %(6) |
Portfolio turnover rate(8) | | | 6 | % | | 23 | % | | 135 | % | | 122 | % | | 53 | % | | 98 | % |
| | | |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Global Portfolio. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights — (Continued) |
| |
| | | | The Global Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | May 19, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 4.62 | | $ | 3.87 | | $ | 4.64 | | $ | 3.90 | | $ | 2.37 | | $ | 4.56 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.01 | ) | | 0.00 | (3) | | 0.03 | | | (0.01 | ) | | 0.00 | (3) | | 0.02 | |
| Net realized and unrealized gain (loss) on investments | | | 0.43 | | | 0.85 | | | (0.77 | ) | | 0.77 | | | 1.53 | | | (2.17 | ) |
| Total from investment operations | | | 0.42 | | | 0.85 | | | (0.74 | ) | | 0.76 | | | 1.53 | | | (2.15 | ) |
| Redemption Fees | | | — | | | — | | | — | | | — | | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.10 | ) | | (0.03 | ) | | (0.02 | ) | | (0.00 | )(3) | | (0.04 | ) |
| Total distributions | | | — | | | (0.10 | ) | | (0.03 | ) | | (0.02 | ) | | (0.00 | )(3) | | (0.04 | ) |
| Net Asset Value, End of Period | | $ | 5.04 | | $ | 4.62 | | $ | 3.87 | | $ | 4.64 | | $ | 3.90 | | $ | 2.37 | |
| Total return | | | 9.09 | %(4) | | 22.04 | % | | (15.94 | )% | | 19.24 | % | | 65.08 | % | | (47.14 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 988 | | $ | 383 | | $ | 111 | | $ | 64 | | $ | 36 | | $ | 5 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 3.67 | %(5) | | 4.13 | % | | 4.69 | % | | 4.92 | % | | 6.07 | % | | 8.78 | %(5) |
After expense reimbursement(6) | | | 2.14 | %(5) | | 2.14 | % | | 2.14 | % | | 2.14 | % | | 2.14 | % | | 2.15 | %(5) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.98 | )%(5) | | (1.97 | )% | | (1.86 | )% | | (3.01 | )% | | (4.02 | )% | | (5.66 | )%(5) |
After expense reimbursement(6) | | | (0.45 | )%(5) | | 0.02 | % | | 0.69 | % | | (0.23 | )% | | (0.09 | )% | | 0.97 | %(5) |
Portfolio turnover rate(7) | | | 6 | % | | 23 | % | | 135 | % | | 122 | % | | 53 | % | | 98 | % |
| | | |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Global Portfolio. |
The accompanying notes are an integral part of these financial statements.
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDSFinancial Highlights — (Continued) |
| | | | The Paradigm Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 23.99 | | $ | 19.81 | | $ | 23.31 | | $ | 20.18 | | $ | 14.42 | | $ | 30.99 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.05 | ) | | 0.05 | | | 0.02 | | | 0.11 | | | 0.15 | | | 0.12 | |
| Net realized and unrealized gain (loss) on investments | | | 4.98 | | | 4.25 | | | (3.34 | ) | | 3.39 | | | 5.78 | | | (16.62 | )(4) |
| Total from investment operations | | | 4.93 | | | 4.30 | | | (3.32 | ) | | 3.50 | | | 5.93 | | | (16.50 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.01 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.12 | ) | | (0.18 | ) | | (0.37 | ) | | (0.17 | ) | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.08 | ) |
| Total distributions | | | — | | | (0.12 | ) | | (0.18 | ) | | (0.37 | ) | | (0.17 | ) | | (0.08 | ) |
| Net Asset Value, End of Period | | $ | 28.92 | | $ | 23.99 | | $ | 19.81 | | $ | 23.31 | | $ | 20.18 | | $ | 14.42 | |
| Total return | | | 20.55 | %(5) | | 21.78 | % | | (14.27 | )% | | 17.37 | % | | 41.02 | % | | (53.17 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 507,680 | | $ | 416,696 | | $ | 430,528 | | $ | 687,056 | | $ | 825,278 | | $ | 740,983 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.74 | %(6) | | 1.78 | % | | 1.78 | % | | 1.76 | % | | 1.73 | % | | 1.72 | % |
After expense reimbursement(7) | | | 1.64 | %(6) | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.66 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.45 | )%(6) | | 0.08 | % | | (0.03 | )% | | 0.43 | % | | 0.78 | % | | 0.46 | % |
After expense reimbursement(7) | | | (0.35 | )%(6) | | 0.22 | % | | 0.11 | % | | 0.55 | % | | 0.87 | % | | 0.52 | % |
Portfolio turnover rate(8) | | | 2 | % | | 6 | % | | 58 | % | | 7 | % | | 15 | % | | 34 | % |
| | | |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Paradigm Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 23.59 | | $ | 19.45 | | $ | 22.95 | | $ | 19.88 | | $ | 14.16 | | $ | 30.52 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.08 | ) | | (0.01 | ) | | (0.03 | ) | | 0.06 | | | 0.10 | | | 0.06 | |
| Net realized and unrealized gain (loss) on investments | | | 4.90 | | | 4.18 | | | (3.29 | ) | | 3.33 | | | 5.68 | | | (16.34 | )(4) |
| Total from investment operations | | | 4.82 | | | 4.17 | | | (3.32 | ) | | 3.39 | | | 5.78 | | | (16.28 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | — | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.03 | ) | | (0.18 | ) | | (0.32 | ) | | (0.06 | ) | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.08 | ) |
| Total distributions | | | — | | | (0.03 | ) | | (0.18 | ) | | (0.32 | ) | | (0.06 | ) | | (0.08 | ) |
| Net Asset Value, End of Period | | $ | 28.41 | | $ | 23.59 | | $ | 19.45 | | $ | 22.95 | | $ | 19.88 | | $ | 14.16 | |
Total return(5) | | | 20.43 | %(6) | | 21.49 | % | | (14.49 | )% | | 17.11 | % | | 40.64 | % | | (53.30 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 161,906 | | $ | 135,747 | | $ | 146,939 | | $ | 226,264 | | $ | 252,106 | | $ | 249,424 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.99 | %(7) | | 2.03 | % | | 2.03 | % | | 2.01 | % | | 1.98 | % | | 1.97 | % |
After expense reimbursement(8) | | | 1.89 | %(7) | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.91 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.70 | )%(7) | | (0.17 | )% | | (0.28 | )% | | 0.18 | % | | 0.53 | % | | 0.21 | % |
After expense reimbursement(8) | | | (0.60 | )%(7) | | (0.03 | )% | | (0.14 | )% | | 0.30 | % | | 0.62 | % | | 0.27 | % |
Portfolio turnover rate(9) | | | 2 | % | | 6 | % | | 58 | % | | 7 | % | | 15 | % | | 34 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (6) | Not annualized. |
| (7) | Annualized. |
| (8) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. (9) Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Paradigm Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 22.66 | | $ | 18.76 | | $ | 22.25 | | $ | 19.33 | | $ | 13.80 | | $ | 29.90 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.14 | ) | | (0.11 | ) | | (0.14 | ) | | (0.04 | ) | | 0.02 | | | (0.05 | ) |
| Net realized and unrealized gain (loss) on investments | | | 4.71 | | | 4.01 | | | (3.17 | ) | | 3.22 | | | 5.51 | | | (15.97 | )(4) |
| Total from investment operations | | | 4.57 | | | 3.90 | | | (3.31 | ) | | 3.18 | | | 5.53 | | | (16.02 | ) |
Redemption Fees(3) | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | (0.18 | ) | | (0.26 | ) | | — | | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.08 | ) |
| Total distributions | | | — | | | — | | | (0.18 | ) | | (0.26 | ) | | — | | | (0.08 | ) |
| Net Asset Value, End of Period | | $ | 27.23 | | $ | 22.66 | | $ | 18.76 | | $ | 22.25 | | $ | 19.33 | | $ | 13.80 | |
| Total return | | | 20.17 | %(5) | | 20.85 | % | | (14.90 | )% | | 16.45 | % | | 39.97 | % | | (53.54 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 116,055 | | $ | 101,405 | | $ | 102,534 | | $ | 152,571 | | $ | 169,578 | | $ | 147,915 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.49 | %(6) | | 2.53 | % | | 2.53 | % | | 2.51 | % | | 2.48 | % | | 2.47 | % |
After expense reimbursement(7) | | | 2.39 | %(6) | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.41 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.20 | )%(6) | | (0.67 | )% | | (0.78 | )% | | (0.32 | )% | | 0.03 | % | | (0.29 | )% |
After expense reimbursement(7) | | | (1.10 | )%(6) | | (0.53 | )% | | (0.64 | )% | | (0.20 | )% | | 0.12 | % | | (0.23 | )% |
Portfolio turnover rate(8) | | | 2 | % | | 6 | % | | 58 | % | | 7 | % | | 15 | % | | 34 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Paradigm Fund | |
| | | | Institutional Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 23.93 | | $ | 19.79 | | $ | 23.25 | | $ | 20.13 | | $ | 14.44 | | $ | 30.97 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.02 | ) | | 0.10 | | | 0.07 | | | 0.16 | | | 0.18 | | | 0.18 | |
| Net realized and unrealized gain (loss) on investments | | | 4.98 | | | 4.24 | | | (3.35 | ) | | 3.38 | | | 5.78 | | | (16.63 | )(4) |
| Total from investment operations | | | 4.96 | | | 4.34 | | | (3.28 | ) | | 3.54 | | | 5.96 | | | (16.45 | ) |
Redemption Fees(3) | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.20 | ) | | (0.18 | ) | | (0.42 | ) | | (0.27 | ) | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.08 | ) |
| Total distributions | | | — | | | (0.20 | ) | | (0.18 | ) | | (0.42 | ) | | (0.27 | ) | | (0.08 | ) |
| Net Asset Value, End of Period | | $ | 28.89 | | $ | 23.93 | | $ | 19.79 | | $ | 23.25 | | $ | 20.13 | | $ | 14.44 | |
| Total return | | | 20.73 | %(5) | | 21.99 | % | | (14.13 | )% | | 17.62 | % | | 41.31 | % | | (53.11 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 267,254 | | $ | 192,478 | | $ | 134,309 | | $ | 142,261 | | $ | 125,372 | | $ | 128,129 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.69 | %(6) | | 1.73 | % | | 1.73 | % | | 1.71 | % | | 1.68 | % | | 1.67 | % |
After expense reimbursement(7) | | | 1.44 | %(6) | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.46 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.40 | )%(6) | | 0.13 | % | | 0.02 | % | | 0.48 | % | | 0.83 | % | | 0.51 | % |
After expense reimbursement(7) | | | (0.15 | )%(6) | | 0.42 | % | | 0.31 | % | | 0.75 | % | | 1.07 | % | | 0.72 | % |
Portfolio turnover rate(8) | | | 2 | % | | 6 | % | | 58 | % | | 7 | % | | 15 | % | | 34 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Medical Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 17.82 | | $ | 18.75 | | $ | 19.48 | | $ | 18.77 | | $ | 15.23 | | $ | 19.82 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.18 | | | 0.33 | | | 0.18 | | | 0.10 | | | 0.20 | | | 0.19 | |
| Net realized and unrealized gain (loss) on investments | | | 4.26 | | | 1.32 | | | 0.82 | | | 0.72 | | | 3.51 | | | (4.25 | ) |
| Total from investment operations | | | 4.44 | | | 1.65 | | | 1.00 | | | 0.82 | | | 3.71 | | | (4.06 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.01 | | | 0.01 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.36 | ) | | (0.25 | ) | | (0.11 | ) | | (0.16 | ) | | (0.16 | ) |
| From net realized gains | | | — | | | (2.22 | ) | | (1.48 | ) | | — | | | (0.02 | ) | | (0.38 | ) |
| Total distributions | | | — | | | (2.58 | ) | | (1.73 | ) | | (0.11 | ) | | (0.18 | ) | | (0.54 | ) |
| Net Asset Value, End of Period | | $ | 22.26 | | $ | 17.82 | | $ | 18.75 | | $ | 19.48 | | $ | 18.77 | | $ | 15.23 | |
| Total return | | | 24.86 | %(4) | | 8.86 | % | | 5.11 | % | | 4.30 | % | | 24.47 | % | | (20.42 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 18,313 | | $ | 14,254 | | $ | 16,376 | | $ | 25,777 | | $ | 21,126 | | $ | 15,727 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.12 | %(5) | | 2.22 | % | | 2.02 | % | | 2.00 | % | | 2.15 | % | | 2.26 | % |
After expense reimbursement(6) | | | 1.39 | %(5) | | 1.39 | % | | 1.39 | % | | 1.39 | % | | 1.39 | % | | 1.41 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.03 | %(5) | | 0.83 | % | | 0.24 | % | | (0.06 | )% | | 0.42 | % | | 0.18 | % |
After expense reimbursement(6) | | | 1.76 | %(5) | | 1.66 | % | | 0.87 | % | | 0.55 | % | | 1.17 | % | | 1.03 | % |
Portfolio turnover rate(7) | | | 7 | % | | 0 | % | | 5 | % | | 3 | % | | 13 | % | | 28 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Medical Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 17.33 | | $ | 18.29 | | $ | 19.06 | | $ | 18.36 | | $ | 14.90 | | $ | 19.39 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.15 | | | 0.27 | | | 0.12 | | | 0.05 | | | 0.15 | | | 0.13 | |
| Net realized and unrealized gain (loss) on investments | | | 4.13 | | | 1.29 | | | 0.80 | | | 0.71 | | | 3.44 | | | (4.15 | ) |
| Total from investment operations | | | 4.28 | | | 1.56 | | | 0.92 | | | 0.76 | | | 3.59 | | | (4.02 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.01 | | | 0.04 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.30 | ) | | (0.21 | ) | | (0.06 | ) | | (0.12 | ) | | (0.13 | ) |
| From net realized gains | | | — | | | (2.22 | ) | | (1.48 | ) | | — | | | (0.02 | ) | | (0.38 | ) |
| Total distributions | | | — | | | (2.52 | ) | | (1.69 | ) | | (0.06 | ) | | (0.14 | ) | | (0.51 | ) |
| Net Asset Value, End of Period | | $ | 21.61 | | $ | 17.33 | | $ | 18.29 | | $ | 19.06 | | $ | 18.36 | | $ | 14.90 | |
Total return(4) | | | 24.70 | %(5) | | 8.60 | % | | 4.79 | % | | 4.13 | % | | 24.17 | % | | (20.49 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 3,551 | | $ | 2,583 | | $ | 3,240 | | $ | 4,207 | | $ | 4,347 | | $ | 2,941 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.37 | %(6) | | 2.47 | % | | 2.27 | % | | 2.25 | % | | 2.40 | % | | 2.51 | % |
After expense reimbursement(7) | | | 1.64 | %(6) | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.66 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.78 | %(6) | | 0.58 | % | | (0.01 | )% | | (0.31 | )% | | 0.17 | % | | (0.07 | )% |
After expense reimbursement(7) | | | 1.51 | %(6) | | 1.41 | % | | 0.62 | % | | 0.30 | % | | 0.92 | % | | 0.78 | % |
Portfolio turnover rate(8) | | | 7 | % | | 0 | % | | 5 | % | | 3 | % | | 13 | % | | 28 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Medical Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 17.19 | | $ | 18.15 | | $ | 18.90 | | $ | 18.27 | | $ | 14.83 | | $ | 19.34 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | 0.10 | | | 0.17 | | | 0.02 | | | (0.04 | ) | | 0.07 | | | 0.05 | |
| Net realized and unrealized gain (loss) on investments | | | 4.09 | | | 1.29 | | | 0.80 | | | 0.69 | | | 3.41 | | | (4.13 | ) |
| Total from investment operations | | | 4.19 | | | 1.46 | | | 0.82 | | | 0.65 | | | 3.48 | | | (4.08 | ) |
| Redemption Fees | | | — | | | — | | | 0.00 | (3) | | — | | | 0.00 | (3) | | 0.02 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.20 | ) | | (0.09 | ) | | (0.02 | ) | | (0.02 | ) | | (0.07 | ) |
| From net realized gains | | | — | | | (2.22 | ) | | (1.48 | ) | | — | | | (0.02 | ) | | (0.38 | ) |
| Total distributions | | | — | | | (2.42 | ) | | (1.57 | ) | | (0.02 | ) | | (0.04 | ) | | (0.45 | ) |
| Net Asset Value, End of Period | | $ | 21.38 | | $ | 17.19 | | $ | 18.15 | | $ | 18.90 | | $ | 18.27 | | $ | 14.83 | |
| Total return | | | 24.37 | %(4) | | 8.08 | % | | 4.32 | % | | 3.55 | % | | 23.50 | % | | (20.97 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 553 | | $ | 450 | | $ | 580 | | $ | 692 | | $ | 454 | | $ | 314 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.87 | %(5) | | 2.97 | % | | 2.77 | % | | 2.75 | % | | 2.90 | % | | 3.01 | % |
After expense reimbursement(6) | | | 2.14 | %(5) | | 2.14 | % | | 2.14 | % | | 2.14 | % | | 2.14 | % | | 2.16 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.28 | %(5) | | 0.08 | % | | (0.51 | )% | | (0.81 | )% | | (0.33 | )% | | (0.57 | )% |
After expense reimbursement(6) | | | 1.01 | %(5) | | 0.91 | % | | 0.12 | % | | (0.20 | )% | | 0.42 | % | | 0.28 | % |
Portfolio turnover rate(7) | | | 7 | % | | 0 | % | | 5 | % | | 3 | % | | 13 | % | | 28 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Small Cap Opportunities Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 25.17 | | $ | 19.85 | | $ | 23.32 | | $ | 20.83 | | $ | 13.17 | | $ | 31.92 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.01 | ) | | 0.01 | | | (0.04 | ) | | (0.04 | ) | | (0.04 | ) | | 0.05 | |
| Net realized and unrealized gain (loss) on investments | | | 7.14 | | | 5.31 | | | (3.15 | ) | | 2.93 | | | 7.70 | | | (18.53 | )(4) |
| Total from investment operations | | | 7.13 | | | 5.32 | | | (3.19 | ) | | 2.89 | | | 7.66 | | | (18.48 | ) |
Redemption Fees(3) | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | (0.28 | ) | | (0.40 | ) | | — | | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.27 | ) |
| Total distributions | | | — | | | — | | | (0.28 | ) | | (0.40 | ) | | — | | | (0.27 | ) |
Net Asset Value, End of Period | | $ | 32.30 | | $ | 25.17 | | $ | 19.85 | | $ | 23.32 | | $ | 20.83 | | $ | 13.17 | |
| Total return | | | 28.33 | %(5) | | 26.74 | % | | (13.65 | )% | | 13.86 | % | | 58.16 | % | | (57.88 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 128,863 | | $ | 63,947 | | $ | 67,798 | | $ | 130,279 | | $ | 161,205 | | $ | 126,971 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.78 | %(6) | | 1.96 | % | | 1.90 | % | | 1.86 | % | | 1.86 | % | | 1.79 | % |
After expense reimbursement(7) | | | 1.64 | %(6) | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.67 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.21 | )%(6) | | (0.25 | )% | | (0.44 | )% | | (0.42 | )% | | (0.48 | )% | | 0.09 | % |
After expense reimbursement(7) | | | (0.07 | )%(6) | | 0.07 | % | | (0.18 | )% | | (0.20 | )% | | (0.26 | )% | | 0.21 | % |
Portfolio turnover rate(8) | | | 1 | % | | 22 | % | | 47 | % | | 4 | % | | 4 | % | | 16 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Small Cap Opportunities Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 24.77 | | $ | 19.59 | | $ | 22.98 | | $ | 20.53 | | $ | 13.01 | | $ | 31.63 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment loss(2) | | | (0.05 | ) | | (0.04 | ) | | (0.10 | ) | | (0.09 | ) | | (0.08 | ) | | (0.01 | ) |
| Net realized and unrealized gain (loss) on investments | | | 7.03 | | | 5.22 | | | (3.08 | ) | | 2.87 | | | 7.60 | | | (18.34 | )(4) |
| Total from investment operations | | | 6.98 | | | 5.18 | | | (3.18 | ) | | 2.78 | | | 7.52 | | | (18.35 | ) |
Redemption Fees(3) | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | (0.21 | ) | | (0.33 | ) | | — | | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.27 | ) |
| Total distributions | | | — | | | — | | | (0.21 | ) | | (0.33 | ) | | — | | | (0.27 | ) |
| Net Asset Value, End of Period | | $ | 31.75 | | $ | 24.77 | | $ | 19.59 | | $ | 22.98 | | $ | 20.53 | | $ | 13.01 | |
Total return(5) | | | 28.18 | %(6) | | 26.44 | % | | (13.85 | )% | | 13.56 | % | | 57.80 | % | | (58.00 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 13,086 | | $ | 7,558 | | $ | 7,250 | | $ | 11,509 | | $ | 14,244 | | $ | 12,090 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.03 | %(7) | | 2.21 | % | | 2.15 | % | | 2.11 | % | | 2.11 | % | | 2.04 | % |
After expense reimbursement(8) | | | 1.89 | %(7) | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.92 | % |
| Ratio of net investment loss to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.46 | )%(7) | | (0.50 | )% | | (0.69 | )% | | (0.67 | )% | | (0.73 | )% | | (0.16 | )% |
After expense reimbursement(8) | | | (0.32 | )%(7) | | (0.18 | )% | | (0.43 | )% | | (0.45 | )% | | (0.51 | )% | | (0.04 | )% |
Portfolio turnover rate(9) | | | 1 | % | | 22 | % | | 47 | % | | 4 | % | | 4 | % | | 16 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (6) | Not annualized. |
| (7) | Annualized. |
| (8) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (9) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Small Cap Opportunities Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 24.35 | | $ | 19.36 | | $ | 22.68 | | $ | 20.28 | | $ | 12.92 | | $ | 31.57 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment loss(2) | | | (0.12 | ) | | (0.15 | ) | | (0.20 | ) | | (0.20 | ) | | (0.16 | ) | | (0.12 | ) |
| Net realized and unrealized gain (loss) on investments | | | 6.91 | | | 5.14 | | | (3.04 | ) | | 2.84 | | | 7.52 | | | (18.26 | )(4) |
| Total from investment operations | | | 6.79 | | | 4.99 | | | (3.24 | ) | | 2.64 | | | 7.36 | | | (18.38 | ) |
| Redemption Fees | | | — | | | — | | | — | | | — | | | 0.00 | (3) | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | (0.08 | ) | | (0.24 | ) | | — | | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.27 | ) |
| Total distributions | | | — | | | — | | | (0.08 | ) | | (0.24 | ) | | — | | | (0.27 | ) |
| Net Asset Value, End of Period | | $ | 31.14 | | $ | 24.35 | | $ | 19.36 | | $ | 22.68 | | $ | 20.28 | | $ | 12.92 | |
| Total return | | | 27.89 | %(5) | | 25.77 | % | | (14.29 | )% | | 13.00 | % | | 56.97 | % | | (58.20 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 4,206 | | $ | 2,536 | | $ | 2,440 | | $ | 3,450 | | $ | 4,445 | | $ | 2,871 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.53 | %(6) | | 2.71 | % | | 2.65 | % | | 2.61 | % | | 2.61 | % | | 2.54 | % |
After expense reimbursement(7) | | | 2.39 | %(6) | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.42 | % |
| Ratio of net investment loss to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.96 | )%(6) | | (1.00 | )% | | (1.19 | )% | | (1.17 | )% | | (1.23 | )% | | (0.66 | )% |
After expense reimbursement(7) | | | (0.82 | )%(6) | | (0.68 | )% | | (0.93 | )% | | (0.95 | )% | | (1.01 | )% | | (0.54 | )% |
Portfolio turnover rate(8) | | | 1 | % | | 22 | % | | 47 | % | | 4 | % | | 4 | % | | 16 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Small Cap Opportunities Fund | |
| | | | Institutional Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 25.32 | | $ | 19.93 | | $ | 23.45 | | $ | 20.90 | | $ | 13.19 | | $ | 31.92 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | 0.02 | | | 0.06 | | | 0.00 | (3) | | 0.00 | (3) | | (0.01 | ) | | 0.10 | |
| Net realized and unrealized gain (loss) on investments | | | 7.19 | | | 5.33 | | | (3.17 | ) | | 2.95 | | | 7.72 | | | (18.56 | )(4) |
| Total from investment operations | | | 7.21 | | | 5.39 | | | (3.17 | ) | | 2.95 | | | 7.71 | | | (18.46 | ) |
| Redemption Fees | | | — | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | — | | | (0.35 | ) | | (0.40 | ) | | — | | | — | |
| From net realized gains | | | — | | | — | | | — | | | — | | | — | | | (0.27 | ) |
| Total distributions | | | — | | | — | | | (0.35 | ) | | (0.40 | ) | | — | | | (0.27 | ) |
Net Asset Value, End of Period | | $ | 32.53 | | $ | 25.32 | | $ | 19.93 | | $ | 23.45 | | $ | 20.90 | | $ | 13.19 | |
| Total return | | | 28.48 | %(5) | | 27.04 | % | | (13.51 | )% | | 14.10 | % | | 58.45 | % | | (57.82 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 16,870 | | $ | 7,482 | | $ | 5,498 | | $ | 9,808 | | $ | 19,749 | | $ | 68,408 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.73 | %(6) | | 1.91 | % | | 1.85 | % | | 1.81 | % | | 1.81 | % | | 1.74 | % |
After expense reimbursement(7) | | | 1.44 | %(6) | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.47 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.16 | )%(6) | | (0.20 | )% | | (0.39 | )% | | (0.37 | )% | | (0.43 | )% | | 0.14 | % |
After expense reimbursement(7) | | | 0.13 | %(6) | | 0.27 | % | | 0.02 | % | | 0.00 | % | | (0.06 | )% | | 0.41 | % |
Portfolio turnover rate(8) | | | 1 | % | | 22 | % | | 47 | % | | 4 | % | | 4 | % | | 16 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. The reimbursement comprises less than $0.005 of the NAVs for each class at the time of reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Market Opportunities Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 12.08 | | $ | 10.45 | | $ | 11.46 | | $ | 10.84 | | $ | 7.22 | | $ | 16.12 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.02 | | | 0.03 | | | 0.01 | | | 0.04 | | | 0.00 | (3) | | 0.11 | |
| Net realized and unrealized gain (loss) on investments | | | 2.67 | | | 1.80 | | | (0.91 | ) | | 1.18 | | | 3.62 | | | (9.02 | ) |
| Payment by adviser | | | — | | | — | | | — | | | — | | | — | | | 0.06 | (4) |
| Total from investment operations | | | 2.69 | | | 1.83 | | | (0.90 | ) | | 1.22 | | | 3.62 | | | (8.85 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.01 | | | 0.01 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.20 | ) | | (0.11 | ) | | (0.60 | ) | | (0.01 | ) | | (0.06 | ) |
| Total distributions | | | — | | | (0.20 | ) | | (0.11 | ) | | (0.60 | ) | | (0.01 | ) | | (0.06 | ) |
Net Asset Value, End of Period | | $ | 14.77 | | $ | 12.08 | | $ | 10.45 | | $ | 11.46 | | $ | 10.84 | | $ | 7.22 | |
| Total return | | | 22.27 | %(5) | | 17.52 | % | | (7.85 | )% | | 11.31 | % | | 50.21 | % | | (54.82 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 41,810 | | $ | 32,929 | | $ | 30,191 | | $ | 38,562 | | $ | 41,254 | | $ | 34,246 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.88 | %(6) | | 1.97 | % | | 1.93 | % | | 1.92 | % | | 1.93 | % | | 1.82 | % |
After expense reimbursement(7) | | | 1.64 | %(6) | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.66 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.12 | %(6) | | (0.10 | )% | | (0.20 | )% | | 0.06 | % | | (0.25 | )% | | 0.78 | % |
After expense reimbursement(7) | | | 0.36 | %(6) | | 0.23 | % | | 0.09 | % | | 0.34 | % | | 0.04 | % | | 0.94 | % |
Portfolio turnover rate(8) | | | 10 | % | | 26 | % | | 14 | % | | 12 | % | | 14 | % | | 77 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement contributed 0.38%, 0.37%, 0.38% and 0.44% to the returns of the No Load Class, the Advisor Class A, the Advisor Class C and the Institutional Class, respectively, for the year ended December 31, 2008. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Market Opportunities Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 12.07 | | $ | 10.43 | | $ | 11.43 | | $ | 10.80 | | $ | 7.22 | | $ | 16.07 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | 0.01 | | | 0.00 | (3) | | (0.02 | ) | | 0.01 | | | (0.02 | ) | | 0.08 | |
| Net realized and unrealized gain (loss) on investments | | | 2.66 | | | 1.80 | | | (0.90 | ) | | 1.19 | | | 3.61 | | | (8.97 | ) |
| Payment by adviser | | | — | | | — | | | — | | | — | | | — | | | 0.06 | (4) |
| Total from investment operations | | | 2.67 | | | 1.80 | | | (0.92 | ) | | 1.20 | | | 3.59 | | | (8.83 | ) |
Redemption Fees(3) | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.16 | ) | | (0.08 | ) | | (0.57 | ) | | (0.01 | ) | | (0.02 | ) |
| Total distributions | | | — | | | (0.16 | ) | | (0.08 | ) | | (0.57 | ) | | (0.01 | ) | | (0.02 | ) |
| Net Asset Value, End of Period | | $ | 14.74 | | $ | 12.07 | | $ | 10.43 | | $ | 11.43 | | $ | 10.80 | | $ | 7.22 | |
Total return(5) | | | 22.12 | %(6) | | 17.26 | % | | (8.08 | )% | | 11.11 | % | | 49.66 | % | | (54.91 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 8,543 | | $ | 6,518 | | $ | 8,600 | | $ | 14,167 | | $ | 18,770 | | $ | 18,514 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.13 | %(7) | | 2.22 | % | | 2.18 | % | | 2.17 | % | | 2.18 | % | | 2.07 | % |
After expense reimbursement(8) | | | 1.89 | %(7) | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.91 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.13 | )%(7) | | (0.35 | )% | | (0.45 | )% | | (0.19 | )% | | (0.50 | )% | | 0.53 | % |
After expense reimbursement(8) | | | 0.11 | %(7) | | (0.02 | )% | | (0.16 | )% | | 0.09 | % | | (0.21 | )% | | 0.69 | % |
Portfolio turnover rate(9) | | | 10 | % | | 26 | % | | 14 | % | | 12 | % | | 14 | % | | 77 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement contributed 0.38%, 0.37%, 0.38% and 0.44% to the returns of the No Load Class, the Advisor Class A, the Advisor Class C and the Institutional Class, respectively, for the year ended December 31, 2008. |
| (5) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (6) | Not annualized. |
| (7) | Annualized. |
| (8) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (9) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Market Opportunities Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | For the Year Ended December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 11.94 | | $ | 10.32 | | $ | 11.30 | | $ | 10.69 | | $ | 7.17 | | $ | 16.01 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.03 | ) | | (0.06 | ) | | (0.08 | ) | | (0.04 | ) | | (0.06 | ) | | 0.02 | |
| Net realized and unrealized gain (loss) on investments | | | 2.63 | | | 1.78 | | | (0.88 | ) | | 1.17 | | | 3.59 | | | (8.91 | ) |
| Payment by adviser | | | — | | | — | | | — | | | — | | | — | | | 0.06 | (4) |
| Total from investment operations | | | 2.60 | | | 1.72 | | | (0.96 | ) | | 1.13 | | | 3.53 | | | (8.83 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | — | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.10 | ) | | (0.02 | ) | | (0.52 | ) | | (0.01 | ) | | (0.01 | ) |
| Total distributions | | | — | | | (0.10 | ) | | (0.02 | ) | | (0.52 | ) | | (0.01 | ) | | (0.01 | ) |
| Net Asset Value, End of Period | | $ | 14.54 | | $ | 11.94 | | $ | 10.32 | | $ | 11.30 | | $ | 10.69 | | $ | 7.17 | |
| Total return | | | 21.78 | %(5) | | 16.70 | % | | (8.51 | )% | | 10.54 | % | | 49.17 | % | | (55.13 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 4,698 | | $ | 3,932 | | $ | 4,233 | | $ | 5,569 | | $ | 6,055 | | $ | 771 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.63 | %(6) | | 2.72 | % | | 2.68 | % | | 2.67 | % | | 2.68 | % | | 2.57 | % |
After expense reimbursement(7) | | | 2.39 | %(6) | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.41 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.63 | )%(6) | | (0.85 | )% | | (0.95 | )% | | (0.69 | )% | | (1.00 | )% | | 0.03 | % |
After expense reimbursement(7) | | | (0.39 | )%(6) | | (0.52 | )% | | (0.66 | )% | | (0.41 | )% | | (0.71 | )% | | 0.19 | % |
Portfolio turnover rate(8) | | | 10 | % | | 26 | % | | 14 | % | | 12 | % | | 14 | % | | 77 | % |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement contributed 0.38%, 0.37%, 0.38% and 0.44% to the returns of the No Load Class, the Advisor Class A, the Advisor Class C and the Institutional Class, respectively, for the year ended December 31, 2008. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Market Opportunities Fund | |
| | | | Institutional Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | May 19, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 12.10 | | $ | 10.46 | | $ | 11.48 | | $ | 10.86 | | $ | 7.21 | | $ | 13.71 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.04 | | | 0.05 | | | 0.03 | | | 0.06 | | | 0.02 | | | 0.08 | |
| Net realized and unrealized gain (loss) on investments | | | 2.68 | | | 1.81 | | | (0.92 | ) | | 1.19 | | | 3.64 | | | (6.55 | ) |
| Payment by adviser | | | — | | | — | | | — | | | — | | | — | | | 0.06 | (3) |
| Total from investment operations | | | 2.72 | | | 1.86 | | | (0.89 | ) | | 1.25 | | | 3.66 | | | (6.41 | ) |
| Redemption Fees | | | — | | | — | | | — | | | — | | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (0.22 | ) | | (0.13 | ) | | (0.63 | ) | | (0.01 | ) | | (0.09 | ) |
| Total distributions | | | — | | | (0.22 | ) | | (0.13 | ) | | (0.63 | ) | | (0.01 | ) | | (0.09 | ) |
Net Asset Value, End of Period | | $ | 14.82 | | $ | 12.10 | | $ | 10.46 | | $ | 11.48 | | $ | 10.86 | | $ | 7.21 | |
| Total return | | | 22.48 | %(4) | | 17.83 | % | | (7.71 | )% | | 11.54 | % | | 50.70 | % | | (46.77 | )%(3)(4) |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 4,115 | | $ | 229 | | $ | 186 | | $ | 212 | | $ | 19 | | $ | 5 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.83 | %(5) | | 1.92 | % | | 1.88 | % | | 1.87 | % | | 1.88 | % | | 1.82 | %(5) |
After expense reimbursement(6) | | | 1.44 | %(5) | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.44 | %(5) |
| Ratio of net investment income (loss)to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.17 | %(5) | | (0.05 | )% | | (0.15 | )% | | 0.11 | % | | (0.20 | )% | | 0.94 | %(5) |
After expense reimbursement(6) | | | 0.56 | %(5) | | 0.43 | % | | 0.29 | % | | 0.54 | % | | 0.24 | % | | 1.32 | %(5) |
Portfolio turnover rate(7) | | | 10 | % | | 26 | % | | 14 | % | | 12 | % | | 14 | % | | 77 | % |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement contributed 0.38%, 0.37%, 0.38% and 0.44% to the returns of the No Load Class, the Advisor Class A, the Advisor Class C and the Institutional Class, respectively, for the year ended December 31, 2008. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Alternative Income Fund | |
| | | | No Load Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012(1) | | | For the Year Ended December 31, 2011(1) | | | For the Year Ended December 31, 2010(1) | | | For the Year Ended December 31, 2009(1) | | | For the Year Ended December 31, 2008(1) | |
PER SHARE DATA:(2) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 83.30 | | $ | 77.90 | | $ | 83.80 | | $ | 88.60 | | $ | 76.10 | | $ | 101.70 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(3) | | | (0.12 | ) | | 1.50 | | | 1.00 | | | 0.70 | | | 0.40 | | | 1.00 | |
| Net realized and unrealized gain (loss) on investments | | | 1.60 | | | 6.10 | | | (5.10 | ) | | (4.80 | ) | | 12.10 | | | (26.60 | ) |
| Total from investment operations | | | 1.48 | | | 7.60 | | | (4.10 | ) | | (4.10 | ) | | 12.50 | | | (25.60 | ) |
| Redemption Fees | | | — | | | 0.00 | (4) | | 0.00 | (4) | | 0.00 | (4) | | 0.00 | (4) | | 0.00 | (4) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (2.20 | ) | | (1.80 | ) | | (0.70 | ) | | (0.00 | )(4) | | — | |
| Total distributions | | | — | | | (2.20 | ) | | (1.80 | ) | | (0.70 | ) | | (0.00 | )(4) | | — | |
| Net Asset Value, End of Period | | $ | 84.78 | | $ | 83.30 | | $ | 77.90 | | $ | 83.80 | | $ | 88.60 | | $ | 76.10 | |
| Total return | | | 1.65 | %(5) | | 9.90 | % | | (4.88 | )% | | (4.60 | )% | | 16.46 | % | | (25.17 | )% |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 10,918 | | $ | 4,699 | | $ | 5,613 | | $ | 7,001 | | $ | 7,176 | | $ | 6,598 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.16 | %(6) | | 2.55 | % | | 2.29 | % | | 2.17 | % | | 2.36 | % | | 2.20 | % |
After expense reimbursement(7) | | | 0.95 | %(6) | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.64 | % | | 1.65 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.49 | )%(6) | | 0.93 | % | | 0.59 | % | | 0.33 | % | | (0.26 | )% | | 0.55 | % |
After expense reimbursement(7) | | | (0.28 | )%(6) | | 1.84 | % | | 1.24 | % | | 0.86 | % | | 0.46 | % | | 1.10 | % |
Portfolio turnover rate(8) | | | 9 | % | | 56 | % | | 69 | % | | 111 | % | | 45 | % | | 66 | % |
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Alternative Income Fund | |
| | | | Advisor Class A | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012(1) | | | For the Year Ended December 31, 2011(1) | | | For the Year Ended December 31, 2010(1) | | | For the Year Ended December 31, 2009(1) | | | For the Year Ended December 31, 2008(1) | |
PER SHARE DATA:(2) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 83.40 | | $ | 77.80 | | $ | 83.50 | | $ | 88.20 | | $ | 75.90 | | $ | 101.70 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(3) | | | (0.22 | ) | | 1.30 | | | 0.80 | | | 0.50 | | | 0.20 | | | 0.70 | |
| Net realized and unrealized | | | | | | | | | | | | | | | | | | | |
| gain (loss) on investments | | | 1.56 | | | 6.10 | | | (5.00 | ) | | (4.70 | ) | | 12.10 | | | (26.50 | ) |
Total from investment operations | | | 1.34 | | | 7.40 | | | (4.20 | ) | | (4.20 | ) | | 12.30 | | | (25.80 | ) |
| Redemption Fees | | | 0.00 | (4) | | — | | | 0.00 | (4) | | 0.00 | (4) | | 0.00 | (4) | | 0.00 | (4) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (1.80 | ) | | (1.50 | ) | | (0.50 | ) | | — | | | — | |
| Total distributions | | | — | | | (1.80 | ) | | (1.50 | ) | | (0.50 | ) | | — | | | — | |
| Net Asset Value, End of Period | | $ | 84.74 | | $ | 83.40 | | $ | 77.80 | | $ | 83.50 | | $ | 88.20 | | $ | 75.90 | |
Total return(5) | | | 1.49 | %(6) | | 9.61 | % | | (5.08 | )% | | (4.80 | )% | | 16.21 | % | | (25.37 | )% |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 1,812 | | $ | 2,597 | | $ | 4,559 | | $ | 10,100 | | $ | 10,339 | | $ | 7,661 | |
| Ratio of operating expenses to | | | | | | | | | | | | | | | | | | | |
| average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.41 | %(7) | | 2.80 | % | | 2.54 | % | | 2.42 | % | | 2.61 | % | | 2.45 | % |
After expense reimbursement(8) | | | 1.20 | %(7) | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.89 | % | | 1.90 | % |
| Ratio of net investment income | | | | | | | | | | | | | | | | | | | |
| (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.74 | )%(7) | | 0.68 | % | | 0.34 | % | | 0.08 | % | | (0.51 | )% | | 0.30 | % |
After expense reimbursement(8) | | | (0.53 | )%(7) | | 1.59 | % | | 0.99 | % | | 0.61 | % | | 0.21 | % | | 0.85 | % |
Portfolio turnover rate(9) | | | 9 | % | | 56 | % | | 69 | % | | 111 | % | | 45 | % | | 66 | % |
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (6) | Not annualized. |
| (7) | Annualized. |
| (8) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (9) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Alternative Income Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012(1) | | | For the Year Ended December 31, 2011(1) | | | For the Year Ended December 31, 2010(1) | | | For the Year Ended December 31, 2009(1) | | | For the Year Ended December 31, 2008(1) | |
PER SHARE DATA:(2) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 82.30 | | $ | 76.80 | | $ | 82.50 | | $ | 87.10 | | $ | 75.40 | | $ | 101.60 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(3) | | | (0.43 | ) | | 0.90 | | | 0.40 | | | 0.10 | | | (0.20 | ) | | 0.30 | |
| Net realized and unrealized gain (loss) on investments | | | 1.50 | | | 6.00 | | | (4.90 | ) | | (4.60 | ) | | 11.90 | | | (26.50 | ) |
| Total from investment operations | | | 1.07 | | | 6.90 | | | (4.50 | ) | | (4.50 | ) | | 11.70 | | | (26.20 | ) |
| Redemption Fees | | | — | | | — | | | 0.00 | (4) | | — | | | 0.00 | (4) | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (1.40 | ) | | (1.20 | ) | | (0.10 | ) | | — | | | — | |
| Total distributions | | | — | | | (1.40 | ) | | (1.20 | ) | | (0.10 | ) | | — | | | — | |
| Net Asset Value, End of Period | | $ | 83.37 | | $ | 82.30 | | $ | 76.80 | | $ | 82.50 | | $ | 87.10 | | $ | 75.40 | |
| Total return | | | 1.30 | %(5) | | 8.96 | % | | (5.51 | )% | | (5.15 | )% | | 15.52 | % | | (25.79 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 1,627 | | $ | 1,763 | | $ | 2,316 | | $ | 2,840 | | $ | 2,700 | | $ | 1,571 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.91 | %(6) | | 3.30 | % | | 3.04 | % | | 2.92 | % | | 3.11 | % | | 2.95 | % |
After expense reimbursement(7) | | | 1.70 | %(6) | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.39 | % | | 2.40 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (2.24 | )%(6) | | 0.18 | % | | (0.16 | )% | | (0.42 | )% | | (1.01 | )% | | (0.20 | )% |
After expense reimbursement(7) | | | (1.03 | )%(6) | | 1.09 | % | | 0.49 | % | | 0.11 | % | | (0.29 | )% | | 0.35 | % |
Portfolio turnover rate(8) | | | 9 | % | | 56 | % | | 69 | % | | 111 | % | | 45 | % | | 66 | % |
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Alternative Income Fund | |
| | | | Institutional Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012(1) | | | For the Year Ended December 31, 2011(1) | | | For the Year Ended December 31, 2010(1) | | | For the Year Ended December 31, 2009(1) | | | For the Year Ended December 31, 2008(1) | |
PER SHARE DATA:(2) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 84.00 | | $ | 78.50 | | $ | 84.20 | | $ | 89.00 | | $ | 76.30 | | $ | 101.80 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(3) | | | (0.04 | ) | | 1.70 | | | 1.20 | | | 0.90 | | | 0.50 | | | 1.20 | |
| Net realized and unrealized gain (loss) on investments | | | 1.59 | | | 6.20 | | | (5.10 | ) | | (4.80 | ) | | 12.30 | | | (26.70 | ) |
| Total from investment operations | | | 1.55 | | | 7.90 | | | (3.90 | ) | | (3.90 | ) | | 12.80 | | | (25.50 | ) |
| Redemption Fees | | | — | | | 0.00 | (4) | | 0.20 | | | 0.00 | (4) | | 0.10 | | | 0.00 | (4) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | (2.40 | ) | | (2.00 | ) | | (0.90 | ) | | (0.20 | ) | | — | |
| Total distributions | | | — | | | (2.40 | ) | | (2.00 | ) | | (0.90 | ) | | (0.20 | ) | | — | |
| Net Asset Value, End of Period | | $ | 85.55 | | $ | 84.00 | | $ | 78.50 | | $ | 84.20 | | $ | 89.00 | | $ | 76.30 | |
| Total return | | | 1.72 | %(5) | | 10.17 | % | | (4.43 | )% | | (4.38 | )% | | 16.94 | % | | (25.05 | )% |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 3,309 | | $ | 1,629 | | $ | 798 | | $ | 4,182 | | $ | 2,905 | | $ | 251 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.11 | %(6) | | 2.50 | % | | 2.24 | % | | 2.12 | % | | 2.31 | % | | 2.15 | % |
After expense reimbursement(7) | | | 0.75 | %(6) | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.44 | % | | 1.45 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (1.44 | )%(6) | | 0.98 | % | | 0.64 | % | | 0.38 | % | | (0.21 | )% | | 0.60 | % |
After expense reimbursement(7) | | | (0.08 | )%(6) | | 2.04 | % | | 1.44 | % | | 1.06 | % | | 0.66 | % | | 1.30 | % |
Portfolio turnover rate(8) | | | 9 | % | | 56 | % | | 69 | % | | 111 | % | | 45 | % | | 66 | % |
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Multi-Disciplinary Fund | |
| | | | No Load Class | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | February 11, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 11.08 | | $ | 10.09 | | $ | 10.47 | | $ | 9.86 | | $ | 8.22 | | $ | 10.00 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.11 | | | 0.34 | | | 0.83 | | | 0.35 | | | 0.09 | | | 0.01 | |
| Net realized and unrealized gain (loss) on investments | | | (0.05 | ) | | 1.20 | | | (0.80 | ) | | 0.91 | | | 1.79 | | | (1.79 | ) |
| Total from investment operations | | | 0.06 | | | 1.54 | | | 0.03 | | | 1.26 | | | 1.88 | | | (1.78 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | 0.00 | (3) | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (0.14 | ) | | (0.43 | ) | | (0.36 | ) | | (0.35 | ) | | (0.08 | ) | | (0.00 | )(3) |
| From net realized gains | | | — | | | (0.12 | ) | | (0.05 | ) | | (0.30 | ) | | (0.16 | ) | | — | |
| Total distributions | | | (0.14 | ) | | (0.55 | ) | | (0.41 | ) | | (0.65 | ) | | (0.24 | ) | | (0.00 | )(3) |
| Net Asset Value, End of Period | | $ | 11.00 | | $ | 11.08 | | $ | 10.09 | | $ | 10.47 | | $ | 9.86 | | $ | 8.22 | |
| Total return | | | 0.63 | %(4) | | 15.38 | % | | 0.24 | % | | 13.04 | % | | 22.90 | % | | (17.76 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 19,832 | | $ | 19,566 | | $ | 13,389 | | $ | 3,489 | | $ | 938 | | $ | 99 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.85 | %(5)(9) | | 2.00 | % | | 2.38 | % | | 6.11 | % | | 13.11 | % | | 17.58 | %(5) |
After expense reimbursement(6) | | | 1.51 | %(5)(9) | | 1.49 | % | | 1.49 | % | | 1.49 | % | | 1.49 | % | | 1.49 | %(5) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.62 | %(5)(10) | | 2.65 | % | | 7.09 | % | | (1.19 | )% | | (10.69 | )% | | (15.99 | )%(5) |
After expense reimbursement(6) | | | 1.96 | %(5)(10) | | 3.16 | % | | 7.98 | % | | 3.43 | % | | 0.93 | % | | 0.10 | %(5) |
Portfolio turnover rate(7) | | | 36 | % | | 41 | % | | 74 | % | | 38 | % | | 77 | % | | N/A | (8) |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Multi-Disciplinary Portfolio. |
| (8) | Portfolio turnover is not applicable because The Multi-Disciplinary Portfolio did not hold any long-term securities from inception date through year end. |
| (9) | The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 1.83% before expense reimbursement and 1.49% after expense reimbursement. |
| (10) | The ratio of net investment income includes borrowing expense on securities sold short. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Multi-Disciplinary Fund | |
| | | | Advisor Class A | |
| | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | February 11, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 11.03 | | $ | 10.05 | | $ | 10.44 | | $ | 9.85 | | $ | 8.20 | | $ | 10.00 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | 0.10 | | | 0.31 | | | 0.78 | | | 0.33 | | | 0.06 | | | (0.01 | ) |
| Net realized and unrealized gain (loss) on investments | | | (0.04 | ) | | 1.20 | | | (0.78 | ) | | 0.89 | | | 1.80 | | | (1.79 | ) |
| Total from investment operations | | | 0.06 | | | 1.51 | | | — | | | 1.22 | | | 1.86 | | | (1.80 | ) |
| Redemption Fees | | | 0.00 | (3) | | 0.00 | (3) | | — | | | — | | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (0.13 | ) | | (0.41 | ) | | (0.34 | ) | | (0.33 | ) | | (0.05 | ) | | (0.00 | )(3) |
| From net realized gains | | | — | | | (0.12 | ) | | (0.05 | ) | | (0.30 | ) | | (0.16 | ) | | — | |
| Total distributions | | | (0.13 | ) | | (0.53 | ) | | (0.39 | ) | | (0.63 | ) | | (0.21 | ) | | (0.00 | )(3) |
| Net Asset Value, End of Period | | $ | 10.96 | | $ | 11.03 | | $ | 10.05 | | $ | 10.44 | | $ | 9.85 | | $ | 8.20 | |
Total return(4) | | | 0.54 | %(5) | | 15.12 | % | | (0.01 | )% | | 12.64 | % | | 22.73 | % | | (17.97 | )%(5) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 47,369 | | $ | 25,764 | | $ | 4,726 | | $ | 356 | | $ | 103 | | $ | 84 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.10 | %(6)(10) | | 2.25 | % | | 2.63 | % | | 6.36 | % | | 13.36 | % | | 17.83 | %(6) |
After expense reimbursement(7) | | | 1.76 | %(6)(10) | | 1.74 | % | | 1.74 | % | | 1.74 | % | | 1.74 | % | | 1.74 | %(6) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.37 | %(6)(11) | | 2.40 | % | | 6.84 | % | | (1.44 | )% | | (10.94 | )% | | (16.24 | )%(6) |
After expense reimbursement(7) | | | 1.71 | %(6)(11) | | 2.91 | % | | 7.73 | % | | 3.18 | % | | 0.68 | % | | (0.15 | )%(6) |
Portfolio turnover rate(8) | | | 36 | % | | 41 | % | | 74 | % | | 38 | % | | 77 | % | | N/A | (9) |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Multi-Disciplinary Portfolio. |
| (9) | Portfolio turnover is not applicable because The Multi-Disciplinary Portfolio did not hold any long-term securities from inception date through year end. |
| (10) | The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 2.08% before expense reimbursement and 1.74% after expense reimbursement. |
| (11) | The ratio of net investment income includes borrowing expense on securities sold short. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Multi-Disciplinary Fund | |
| | | | Advisor Class C | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | February 11, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 10.96 | | $ | 10.00 | | $ | 10.40 | | $ | 9.80 | | $ | 8.17 | | $ | 10.00 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | 0.07 | | | 0.26 | | | 0.74 | | | 0.27 | | | 0.02 | | | (0.05 | ) |
| Net realized and unrealized gain (loss) on investments | | | (0.04 | ) | | 1.18 | | | (0.78 | ) | | 0.90 | | | 1.78 | | | (1.78 | ) |
| Total from investment operations | | | 0.03 | | | 1.44 | | | (0.04 | ) | | 1.17 | | | 1.80 | | | (1.83 | ) |
| Redemption Fees | | | — | | | — | | | — | | | — | | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (0.11 | ) | | (0.36 | ) | | (0.31 | ) | | (0.27 | ) | | (0.01 | ) | | (0.00 | )(3) |
| From net realized gains | | | — | | | (0.12 | ) | | (0.05 | ) | | (0.30 | ) | | (0.16 | ) | | — | |
| Total distributions | | | (0.11 | ) | | (0.48 | ) | | (0.36 | ) | | (0.57 | ) | | (0.17 | ) | | (0.00 | )(3) |
| Net Asset Value, End of Period | | $ | 10.88 | | $ | 10.96 | | $ | 10.00 | | $ | 10.40 | | $ | 9.80 | | $ | 8.17 | |
| Total return | | | 0.21 | %(4) | | 14.48 | % | | (0.49 | )% | | 12.13 | % | | 22.03 | % | | (18.30 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 10,772 | | $ | 7,485 | | $ | 1,645 | | $ | 128 | | $ | 105 | | $ | 88 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.60 | %(5)(9) | | 2.75 | % | | 3.13 | % | | 6.86 | % | | 13.86 | % | | 18.33 | %(5) |
After expense reimbursement(6) | | | 2.26 | %(5)(9) | | 2.24 | % | | 2.24 | % | | 2.24 | % | | 2.24 | % | | 2.24 | %(5) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.87 | %(5)(10) | | 1.90 | % | | 6.34 | % | | (1.94 | )% | | (11.44 | )% | | (16.74 | )%(5) |
After expense reimbursement(6) | | | 1.21 | %(5)(10) | | 2.41 | % | | 7.23 | % | | 2.68 | % | | 0.18 | % | | (0.65 | )%(5) |
Portfolio turnover rate(7) | | | 36 | % | | 41 | % | | 74 | % | | 38 | % | | 77 | % | | N/A | (8) |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Multi-Disciplinary Portfolio. |
| (8) | Portfolio turnover is not applicable because The Multi-Disciplinary Portfolio did not hold any long-term securities from inception date through year end. |
| (9) | The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 2.58% before expense reimbursement and 2.24% after expense reimbursement. |
| (10) | The ratio of net investment income includes borrowing expense on securities sold short. |
The accompanying notes are an integral part of these financial statements.
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Financial Highlights — (Continued) |
| | | | The Multi-Disciplinary Fund | |
| | | | Institutional Class | |
| | | | For the Six Months Ended June 30, 2013 (Unaudited) | | | For the Year Ended December 31, 2012 | | | For the Year Ended December 31, 2011 | | | For the Year Ended December 31, 2010 | | | For the Year Ended December 31, 2009 | | | February 11, 2008^ through December 31, 2008 | |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | |
| Net Asset Value | | | | | | | | | | | | | | | | | | | |
| Beginning of Period | | $ | 11.11 | | $ | 10.12 | | $ | 10.50 | | $ | 9.89 | | $ | 8.23 | | $ | 10.00 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | |
Net investment income(2) | | | 0.12 | | | 0.36 | | | 0.85 | | | 0.37 | | | 0.10 | | | 0.02 | |
| Net realized and unrealized gain (loss) on investments | | | (0.04 | ) | | 1.20 | | | (0.80 | ) | | 0.91 | | | 1.81 | | | (1.79 | ) |
| Total from investment operations | | | 0.08 | | | 1.56 | | | 0.05 | | | 1.28 | | | 1.91 | | | (1.77 | ) |
| Redemption Fees | | | — | | | — | | | — | | | — | | | — | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | (0.15 | ) | | (0.45 | ) | | (0.38 | ) | | (0.37 | ) | | (0.09 | ) | | (0.00 | )(3) |
| From net realized gains | | | — | | | (0.12 | ) | | (0.05 | ) | | (0.30 | ) | | (0.16 | ) | | — | |
| Total distributions | | | (0.15 | ) | | (0.57 | ) | | (0.43 | ) | | (0.67 | ) | | (0.25 | ) | | (0.00 | )(3) |
| Net Asset Value, End of Period | | $ | 11.04 | | $ | 11.11 | | $ | 10.12 | | $ | 10.50 | | $ | 9.89 | | $ | 8.23 | |
| Total return | | | 0.73 | %(4) | | 15.55 | % | | 0.42 | % | | 13.19 | % | | 23.25 | % | | (17.65 | )%(4) |
| | | | | | | | | | | | | | | | | | | | |
| SUPPLEMENTAL DATA AND RATIOS | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | 14,944 | | $ | 6,576 | | $ | 3,878 | | $ | 142 | | $ | 101 | | $ | 82 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.80 | %(5)(9) | | 1.95 | % | | 2.33 | % | | 6.06 | % | | 13.06 | % | | 17.53 | %(5) |
After expense reimbursement(6) | | | 1.31 | %(5)(9) | | 1.29 | % | | 1.29 | % | | 1.29 | % | | 1.29 | % | | 1.29 | %(5) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.67 | %(5)(10) | | 2.70 | % | | 7.14 | % | | (1.14 | )% | | (10.64 | )% | | (15.94 | )%(5) |
After expense reimbursement(6) | | | 2.16 | %(5)(10) | | 3.36 | % | | 8.18 | % | | 3.63 | % | | 1.13 | % | | 0.30 | %(5) |
Portfolio turnover rate(7) | | | 36 | % | | 41 | % | | 74 | % | | 38 | % | | 77 | % | | N/A | (8) |
| ^ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Multi-Disciplinary Portfolio. |
| (8) | Portfolio turnover is not applicable because The Multi-Disciplinary Portfolio did not hold any long-term securities from inception date through year end. |
| (9) | The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 1.78% before expense reimbursement and 1.29% after expense reimbursement. |
| (10) | The ratio of net investment income includes borrowing expense on securities sold short. |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
| June 30, 2013 (Unaudited) |
The Internet Portfolio
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | Net Assets | |
| Information | | $ | 87,292,163 | | | 49.1 | % |
| Retail Trade | | | 24,760,362 | | | 13.9 | % |
| Arts, Entertainment, and Recreation | | | 13,178,657 | | | 7.4 | % |
| Management of Companies and Enterprises | | | 12,270,201 | | | 6.9 | % |
| Finance and Insurance | | | 12,191,921 | | | 6.9 | % |
| Manufacturing | | | 6,265,588 | | | 3.5 | % |
| Administrative and Support and Waste Management and Remediation Services | | | 1,422,531 | | | 0.8 | % |
| Professional, Scientific, and Technical Services | | | 1,420,889 | | | 0.8 | % |
| Transportation and Warehousing | | | 1,076,268 | | | 0.6 | % |
| Real Estate and Rental and Leasing | | | 940,176 | | | 0.5 | % |
| | | |
| * | Excludes Short-Term Investments |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Global Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Country Allocation* | | | Value | | | Net Assets | |
| United States | | $ | 3,881,180 | | | 43.3 | % |
| Canada | | | 1,674,141 | | | 18.7 | % |
| France | | | 622,365 | | | 6.9 | % |
| Switzerland | | | 344,974 | | | 3.8 | % |
| Bermuda | | | 234,672 | | | 2.6 | % |
| Singapore | | | 183,309 | | | 2.0 | % |
| Cayman Islands | | | 154,539 | | | 1.7 | % |
| Hong Kong | | | 98,086 | | | 1.1 | % |
| China | | | 91,335 | | | 1.0 | % |
| United Kingdom | | | 88,216 | | | 1.0 | % |
| Spain | | | 81,660 | | | 0.9 | % |
| Guernsey | | | 72,626 | | | 0.8 | % |
| Jersey | | | 69,168 | | | 0.8 | % |
| Brazil | | | 52,032 | | | 0.6 | % |
| Australia | | | 33,341 | | | 0.4 | % |
| Greece | | | 31,135 | | | 0.3 | % |
| Argentina | | | 13,114 | | | 0.1 | % |
| | | |
| * | Excludes Short-Term Investments |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Paradigm Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | Net Assets | |
| Information | | $ | 269,190,510 | | | 24.5 | % |
| Real Estate and Rental and Leasing | | | 165,338,593 | | | 15.1 | % |
| Management of Companies and Enterprises | | | 127,243,367 | | | 11.6 | % |
| Finance and Insurance | | | 127,068,787 | | | 11.6 | % |
| Retail Trade | | | 92,491,807 | | | 8.4 | % |
| Arts, Entertainment, and Recreation | | | 73,164,048 | | | 6.7 | % |
| Manufacturing | | | 54,724,192 | | | 5.0 | % |
| Mining, Quarrying, and Oil and Gas Extraction | | | 51,803,185 | | | 4.7 | % |
| Petroleum and Gas | | | 23,546,328 | | | 2.1 | % |
| Transportation and Warehousing | | | 19,834,534 | | | 1.8 | % |
| Utilities | | | 2,407,764 | | | 0.2 | % |
| Construction | | | 947,852 | | | 0.1 | % |
| Accommodation and Food Services | | | 241,924 | | | 0.0 | % |
| Wholesale Trade | | | 49,671 | | | 0.0 | % |
| | | |
| * | Excludes Short-Term Investments |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Medical Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | Net Assets | |
| Manufacturing | | $ | 21,068,399 | | | 93.9 | % |
| Professional, Scientific, and Technical Services | | | 1,169,120 | | | 5.2 | % |
| Finance and Insurance | | | 1,756 | | | 0.0 | % |
| Health Care and Social Assistance | | | 400 | | | 0.0 | % |
| | | |
| * | Excludes Short-Term Investments |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Small Cap Opportunities Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | Net Assets | |
| Real Estate and Rental and Leasing | | $ | 35,043,869 | | | 21.5 | % |
| Manufacturing | | | 29,032,585 | | | 17.8 | % |
| Finance and Insurance | | | 25,365,258 | | | 15.6 | % |
| Information | | | 24,385,591 | | | 15.0 | % |
| Management of Companies and Enterprises | | | 13,666,306 | | | 8.4 | % |
| Arts, Entertainment, and Recreation | | | 10,028,500 | | | 6.1 | % |
| Retail Trade | | | 7,453,811 | | | 4.6 | % |
| Petroleum and Gas | | | 7,196,124 | | | 4.4 | % |
| Mining, Quarrying, and Oil and Gas Extraction | | | 1,910,581 | | | 1.2 | % |
| Wholesale Trade | | | 876,096 | | | 0.5 | % |
| Transportation Equipment | | | 596,140 | | | 0.4 | % |
| Accommodation and Food Services | | | 53,280 | | | 0.0 | % |
| | | |
| * | Excludes Short-Term Investments |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Market Opportunities Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | Net Assets | |
| Finance and Insurance | | $ | 33,295,551 | | | 56.3 | % |
| Real Estate and Rental and Leasing | | | 7,156,028 | | | 12.1 | % |
| Management of Companies and Enterprises | | | 7,017,678 | | | 11.9 | % |
| Petroleum and Gas | | | 2,593,656 | | | 4.4 | % |
| Retail Trade | | | 2,125,549 | | | 3.6 | % |
| Information | | | 802,134 | | | 1.4 | % |
| Arts, Entertainment, and Recreation | | | 635,160 | | | 1.1 | % |
| Mining, Quarrying, and Oil and Gas Extraction | | | 300,468 | | | 0.5 | % |
| Accommodation and Food Services | | | 136,160 | | | 0.2 | % |
| Utilities | | | 102,840 | | | 0.2 | % |
| Manufacturing | | | 46,607 | | | 0.1 | % |
| | | |
| * | Excludes Short-Term Investments |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Alternative Income Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | Net Assets | |
| Finance and Insurance | | $ | 6,738,405 | | | 38.0 | % |
| Manufacturing | | | 3,905,292 | | | 22.0 | % |
| Information | | | 1,805,463 | | | 10.2 | % |
| Retail Trade | | | 1,074,592 | | | 6.1 | % |
| Utilities | | | 360,241 | | | 2.0 | % |
| Management of Companies and Enterprises | | | 346,069 | | | 2.0 | % |
| Mining, Quarrying, and Oil and Gas Extraction | | | 331,253 | | | 1.9 | % |
| Wholesale Trade | | | 199,584 | | | 1.1 | % |
Administrative and Support and Waste Management and Remediation Services | | | 108,983 | | | 0.6 | % |
| Transportation and Warehousing | | | 104,302 | | | 0.6 | % |
| | | |
| * | Excludes Short-Term Investments & Options |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets |
June 30, 2013 (Unaudited) — (Continued) |
The Multi-Disciplinary Portfolio
| | | | | | | | |
| | | | | | | Percentage | |
| | | | Market | | | of Total | |
| Sector Allocation* | | | Value | | | m | |
| Mining, Quarrying, and Oil and Gas Extraction | | $ | 14,324,655 | | | 15.4 | % |
| Manufacturing | | | 11,848,756 | | | 12.7 | % |
| Finance and Insurance | | | 6,981,795 | | | 7.5 | % |
| Information | | | 6,953,438 | | | 7.5 | % |
Administrative and Support and Waste Management and Remediation Services | | | 4,927,750 | | | 5.3 | % |
| Management of Companies and Enterprises | | | 3,405,100 | | | 3.7 | % |
| Health Care and Social Assistance | | | 2,835,338 | | | 3.0 | % |
| Utilities | | | 2,828,250 | | | 3.0 | % |
| Arts, Entertainment, and Recreation | | | 2,802,718 | | | 3.0 | % |
| Other Services (except Public Administration) | | | 1,524,510 | | | 1.6 | % |
| Retail Trade | | | 1,050,000 | | | 1.1 | % |
| Real Estate and Rental and Leasing | | | 851,439 | | | 0.9 | % |
| Transportation and Warehousing | | | 525,000 | | | 0.6 | % |
| | | |
| * | Excludes Short-Term Investments & Options |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
| Portfolio of Investments — June 30, 2013 (Unaudited) |
| Identifier | | COMMON STOCKS — 90.49% | Shares | | | Value |
| | | Administrative and Support Services — 0.80% | | | | |
| CRMZ | | CreditRiskMonitor.com, Inc. | 600 | | $ | 1,722 |
| CTRP | | Ctrip.com International Ltd. — ADR*^ | 6,000 | | | 195,780 |
| EXPE | | Expedia, Inc. | 20,300 | | | 1,221,045 |
| IILG | | Interval Leisure Group, Inc. | 200 | | | 3,984 |
| | | | | | | 1,422,531 |
| | | Broadcasting (except Internet) — 18.46% | | | | |
| CBS | | CBS Corporation — Class B | 55,200 | | | 2,697,624 |
| DISCA | | Discovery Communications, Inc. — Class A*^ | 101,700 | | | 7,852,257 |
| SNI | | Scripps Networks Interactive — Class A^ | 75,800 | | | 5,060,408 |
| SIRI | | Sirius XM Radio, Inc.^ | 46,000 | | | 154,100 |
| STRZA | | Starz — Class A* | 128,200 | | | 2,833,220 |
| TWX | | Time Warner, Inc. | 80,000 | | | 4,625,600 |
| VIAB | | Viacom Inc. — Class B | 108,000 | | | 7,349,400 |
| DIS | | The Walt Disney Company^ | 34,600 | | | 2,184,990 |
| YOKU | | Youku.com, Inc. — ADR*^ | 2,160 | | | 41,450 |
| | | | | | | 32,799,049 |
| | | Computer and Electronic Product Manufacturing — 0.28% | | | | |
| QCOM | | QUALCOMM Inc. | 8,000 | | | 488,640 |
| ZNGA | | Zynga, Inc. — Class A*^ | 2,000 | | | 5,560 |
| | | | | | | 494,200 |
| | | Credit Intermediation and Related Activities — 0.10% | | | | |
| TREE | | Tree.com, Inc. | 10,033 | | | 171,966 |
| | | Data Processing, Hosting and Related Services — 0.14% | | | | |
| CSGP | | CoStar Group, Inc.*^ | 2,000 | | | 258,140 |
| | | Data Processor — 3.74% | | | | |
| MA | | MasterCard, Inc. — Class A | 5,000 | | | 2,872,500 |
| VRSK | | Verisk Analytics, Inc. — Class A* | 8,000 | | | 477,600 |
| V | | Visa, Inc. — Class A^ | 18,000 | | | 3,289,500 |
| | | | | | | 6,639,600 |
| | | Defense — 2.77% | | | | |
| CACI | | CACI International, Inc. — Class A*^ | 48,000 | | | 3,047,520 |
| MANT | | ManTech International Corporation — Class A^ | 72,000 | | | 1,880,640 |
| | | | | | | 4,928,160 |
| | | E-Commerce — 3.05% | | | | |
| IACI | | IAC/InterActiveCorp | 113,800 | | | 5,412,328 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | Shares | | | Value |
| | | Gaming — 1.49% | | | | |
| 200 HK | | Melco International Development Limited | 1,400,000 | | $ | 2,646,192 |
| | | Global Exchanges — 0.85% | | | | |
| EXAE GA | | Hellenic Exchanges S.A. Holding Clearing | | | | |
| | | Settlement and Registry | 20,000 | | | 155,676 |
| JSE SJ | | JSE Limited | 51,000 | | | 366,311 |
| SGX SP | | Singapore Exchange Limited | 180,000 | | | 998,343 |
| | | | | | | 1,520,330 |
| | | Holding Company — 12.89% | | | | |
| GBLS BB | | Groupe Bruxelles Lambert S.A. Strip VVPR*+ | 2,000 | | | — |
| IEP | | Icahn Enterprises LP | 36,251 | | | 2,637,985 |
| JSHLY | | Jardine Strategic Holdings Limited — ADR^ | 6,000 | | | 108,540 |
| LMCA | | Liberty Media Corporation — Class A* | 118,900 | | | 15,071,764 |
| LVNTA | | Liberty Ventures — Series A* | 59,800 | | | 5,083,598 |
| | | | | | | 22,901,887 |
| | | Insurance Carriers and Related Activities — 0.00% | | | | |
| AFSI | | AmTrust Financial Services, Inc.^ | 100 | | | 3,570 |
| | | Motion Picture and Sound Recording Industries — 3.03% | | | | |
| DWA | | DreamWorks Animation SKG, Inc. — Class A*^ | 210,100 | | | 5,391,166 |
| | | Motor Vehicle and Parts Dealers — 1.75% | | | | |
| AN | | AutoNation, Inc.* | 71,900 | | | 3,119,741 |
| | | Non-Store Retailers — 9.36% | | | | |
| CPRT | | Copart, Inc.* | 40,060 | | | 1,233,848 |
| EBAY | | eBay, Inc.* | 81,290 | | | 4,204,319 |
| HSNI | | HSN, Inc. | 24,600 | | | 1,321,512 |
| LINTA | | Liberty Interactive Corporation — Class A* | 238,600 | | | 5,490,186 |
| OSTK | | Overstock.com, Inc.* | 1,000 | | | 28,200 |
| RBA | | Ritchie Bros. Auctioneers, Inc.^ | 109,800 | | | 2,110,356 |
| SOHU | | Sohu.com Inc.* | 18,000 | | | 1,109,160 |
| BID | | Sotheby’s^ | 30,000 | | | 1,137,300 |
| | | | | | | 16,634,881 |
| | | Other Exchanges — 0.35% | | | | |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | 144,000 | | | 309,600 |
| URB/A CN | | Urbana Corporation — Class A* | 240,000 | | | 317,201 |
| | | | | | | 626,801 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | Shares | | | Value |
| | | Other Information Services — 6.50% | | | | |
| GOOG | | Google Inc. — Class A* | 9,000 | | $ | 7,923,330 |
| NTES | | NetEase.com Inc. — ADR | 7,000 | | | 442,190 |
| SINA | | SINA Corporation* | 30,000 | | | 1,671,900 |
| YHOO | | Yahoo! Inc.* | 60,000 | | | 1,506,600 |
| | | | | | | 11,544,020 |
| | | Performing Arts, Spectator Sports, and Related Industries — 4.70% | | | | |
| LYV | | Live Nation Entertainment, Inc.*^ | 205,600 | | | 3,186,800 |
| MSG | | The Madison Square Garden Company — Class A* | 87,100 | | | 5,160,675 |
| | | | | | | 8,347,475 |
| | | Professional, Scientific, and Technical Services — 0.80% | | | | |
| CTSH | | Cognizant Technology Solutions Corporation — Class A* | 11,400 | | | 713,754 |
| ICGE | | ICG Group Inc.* | 15,000 | | | 171,000 |
| INFY | | Infosys Technologies Limited — ADR^ | 12,000 | | | 494,280 |
| MWW | | Monster Worldwide, Inc.*^ | 2,000 | | | 9,820 |
| WYY | | WidePoint Corp.* | 39,062 | | | 32,035 |
| | | | | | | 1,420,889 |
| | | Publishing Industries (except Internet) — 0.70% | | | | |
| SSP | | The E.W. Scripps Company — Class A*^ | 80,000 | | | 1,246,400 |
| | | Rental and Leasing Services — 0.53% | | | | |
| CDCO | | Comdisco Holding Company, Inc.* | 194,400 | | | 938,952 |
| | | Satellite Telecommunications — 13.76% | | | | |
| DISH | | DISH Network Corp. — Class A | 146,600 | | | 6,233,432 |
| SATS | | EchoStar Corporation — Class A* | 190,600 | | | 7,454,366 |
| LBTYK | | Liberty Global PLC — Series C*^ | 96,000 | | | 6,517,440 |
| LORL | | Loral Space & Communications Inc. | 34,500 | | | 2,069,310 |
| 2008 HK | | Phoenix Satellite Television Holdings Limited | 3,760,000 | | | 1,333,153 |
| VSAT | | ViaSat, Inc.*^ | 11,800 | | | 843,228 |
| | | | | | | 24,450,929 |
| | | Securities, Commodity Contracts, and Other Financial | | | | |
| | | Investments and Related Activities — 1.35% | | | | |
| CBOE | | CBOE Holdings Inc. | 1,800 | | | 83,952 |
| ICE | | IntercontinentalExchange Inc.*^ | 11,500 | | | 2,044,240 |
| MKTX | | MarketAxess Holdings, Inc. | 6,000 | | | 280,500 |
| | | | | | | 2,408,692 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | Shares | | | Value |
| | | Security System Services — 1.33% | | | | |
| ASCMA | | Ascent Capital Group LLC — Class A* | 30,400 | | $ | 2,373,328 |
| | | Special Purpose Entity — 0.00% | | | | |
| ADPAO | | Adelphia Contingent Value Vehicle CVV Series ACC-4 Int*+ | 250,827 | | | — |
| ADPAL | | Adelphia Recovery Trust Series ACC-6 E/F Int*+ | 4,878,645 | | | — |
| | | | | | | — |
| | | Telecommunications — 0.69% | | | | |
| CHU | | China Unicom (Hong Kong) Limited — ADR | 8,800 | | | 115,632 |
| 215 HK | | Hutchison Telecommunications Hong Kong Holdings Limited | 1,620,000 | | | 856,364 |
| HTHKY | | Hutchison Telecommunications Hong Kong Holdings | | | | |
| | | Limited — ADR^ | 28,000 | | | 220,360 |
| ICTG | | ICTC Group Inc.*^ | 149 | | | 3,367 |
| 9984 JP | | SoftBank Corp. | 400 | | | 23,352 |
| | | | | | | 1,219,075 |
| | | U.S. Equity Exchanges — 0.46% | | | | |
| NYX | | NYSE Euronext | 19,830 | | | 820,962 |
| | | Warehousing and Storage — 0.61% | | | | |
| IRM | | Iron Mountain Inc. | 40,446 | | | 1,076,268 |
| | | TOTAL COMMON STOCKS | | | | |
| | | (cost $97,134,112) | | | | 160,817,532 |
| | | | | | | |
| | | | Principal | | | |
| | | ESCROW NOTES — 0.00% | Amount | | | |
| | | Special Purpose Entity — 0.00% | | | | |
| 006ESCBG1 | | Adelphia Communications Corp.*+ | $200,000 | | | — |
| 006ESC958 | | Adelphia Communications Corp. Preferred*+ | 190,000 | | | — |
| | | TOTAL ESCROW NOTES | | | | |
| | | (cost $0) | | | | — |
| | | | | | | |
| | | RIGHTS — 0.00% | Shares | | | |
| | | Rental and Leasing Services — 0.00% | | | | |
| CDCOR | | Comdisco Holding Company, Inc. | | | | |
| | | Expiration Date: 12/31/2050, Strike Price: $1.00*# | 12,240,699 | | | 1,224 |
| | | TOTAL RIGHTS | | | | |
| . | | (cost $2,643,576) | | | | 1,224 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | SHORT-TERM INVESTMENTS — 9.46% | | Amount | | | Value |
| | | Commercial Paper — 4.95% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 8,800,000 | | $ | 8,800,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 4.51% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 0.01%b | | 8,007,797 | | | 8,007,797 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $16,807,797) | | | | | 16,807,797 |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS FROM | | | | | |
| | | SECURITIES LENDING — 21.78% | | | | | |
| | | Money Market Funds — 21.78% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b | | 38,696,520 | | | 38,696,520 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $38,696,520) | | | | | 38,696,520 |
| | | TOTAL INVESTMENTS — 121.73% | | | | | |
| | | (cost $155,282,005) | | | | $ | 216,323,073 |
| | | |
| Percentages are stated as a percent of net assets. |
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $37,536,613 at June 30, 2013. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. |
| # — | Contingent value right (contingent upon profitability of company). |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
| ADR — | American Depository Receipt. |
| GDR — | Global Depository Receipt. |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | COMMON STOCKS — 86.10% | Shares | | | Value |
| | | Apparel Manufacturing — 2.53% | | | | |
| MC FP | | LVMH Moet Hennessy Louis Vuitton SA | 1,400 | | $ | 226,876 |
| | | Arts, Entertainment, and Recreation — 0.12% | | | | |
| 585 HK | | Imagi International Holdings Limited* | 1,000,000 | | | 10,701 |
| | | Asset Management — 14.43% | | | | |
| APO | | Apollo Global Management LLC — Class A^ | 300 | | | 7,230 |
| BX | | The Blackstone Group LP^ | 2,150 | | | 45,279 |
| BAM | | Brookfield Asset Management Inc. — Class A | 4,900 | | | 176,498 |
| DDEJF | | Dundee Corporation — Class A*^ | 13,200 | | | 267,897 |
| JZCP LN | | JZ Capital Partners Ltd. | 10,000 | | | 72,626 |
| OAK | | Oaktree Capital Group LLC^ | 2,700 | | | 141,885 |
| ONEXF | | Onex Corporation | 8,700 | | | 397,590 |
| RCP LN | | RIT Capital Partners PLC | 5,000 | | | 88,215 |
| 806 HK | | Value Partners Group Limited | 182,000 | | | 98,086 |
| | | | | | | 1,295,306 |
| | | Beverage and Tobacco Product Manufacturing — 0.13% | | | | |
| CWGL | | Crimson Wine Group Ltd.* | 1,350 | | | 11,495 |
| | | Broadcasting (except Internet) — 0.69% | | | | |
| STRZA | | Starz — Class A*^ | 2,794 | | | 61,748 |
| | | Building Material and Garden Equipment and Supplies Dealers — 0.00% | | | | |
| OSHWQ | | Orchard Supply Hardware Stores Corporation — Class A*^ | 132 | | | 40 |
| | | Construction of Buildings — 2.56% | | | | |
| BRP | | Brookfield Residential Properties Inc.* | 10,100 | | | 222,806 |
| LEN | | Lennar Corporation — Class A^ | 200 | | | 7,208 |
| | | | | | | 230,014 |
| | | Crop Production — 0.15% | | | | |
| CRESY | | Cresud S.A.C.I.F. y A. — ADR | 1,765 | | | 13,114 |
| | | Electronics and Appliance Stores — 0.88% | | | | |
| SHOS | | Sears Hometown and Outlet Stores Inc.* | 1,800 | | | 78,696 |
| | | European Exchanges — 0.85% | | | | |
| BME SM | | Bolsas y Mercados Espanoles | 3,130 | | | 76,655 |
| | | Gaming — 2.19% | | | | |
| WYNN | | Wynn Resorts Limited | 1,535 | | | 196,480 |
| | | General Merchandise Stores — 1.96% | | | | |
| JCP | | J.C. Penney Company, Inc.*^ | 400 | | | 6,832 |
| SEARF | | Sears Canada Inc. | 1,520 | | | 15,808 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | Shares | | | Value |
| | | General Merchandise Stores — 1.96% (Continued) | | | | |
| SHLD | | Sears Holdings Corporation*^ | 3,650 | | $ | 153,592 |
| | | | | | | 176,232 |
| | | Global Exchanges — 1.50% | | | | |
| BVMF3 BZ | | BM&FBOVESPA SA | 9,470 | | | 52,032 |
| EXAE GA | | Hellenic Exchanges S.A. Holding Clearing | | | | |
| | | Settlement and Registry | 4,000 | | | 31,135 |
| SGX SP | | Singapore Exchange Limited | 9,275 | | | 51,443 |
| | | | | | | 134,610 |
| | | Holding Company — 22.87% | | | | |
| BOL FP | | Bollore SA | 925 | | | 385,106 |
| HPAR SP | | Haw Par Corporation Limited | 7,260 | | | 41,412 |
| IEP | | Icahn Enterprises LP^ | 5,690 | | | 414,061 |
| JS SP | | Jardine Strategic Holdings Limited | 6,170 | | | 223,971 |
| LUK | | Leucadia National Corporation | 13,800 | | | 361,836 |
| LMCA | | Liberty Media Corporation — Class A* | 3,000 | | | 380,280 |
| LVNTA | | Liberty Ventures — Series A* | 2,600 | | | 221,026 |
| PVF CN | | Partners Value Fund Inc.* | 1,200 | | | 24,383 |
| | | | | | | 2,052,075 |
| | | Insurance Carriers and Related Activities — 2.38% | | | | |
| FFH CN | | Fairfax Financial Holdings Limited | 150 | | | 58,986 |
| GLRE | | Greenlight Capital Re, Ltd. — Class A*^ | 6,300 | | | 154,539 |
| | | | | | | 213,525 |
| | | Jewelry, Watch, Precious Stone, and Precious Metal | | | | |
| | | Merchant Wholesalers — 3.84% | | | | |
| CFR VX | | Compagnie Financiere Richemont SA | 3,900 | | | 344,974 |
| | | Lessors of Nonresidential Buildings (except Miniwarehouses) — 2.06% | | | | |
| RSE | | Rouse Properties, Inc.^ | 9,400 | | | 184,428 |
| | | Merchant Wholesalers, Nondurable Goods — 0.77% | | | | |
| GLEN LN | | Glencore Xstrata PLC | 16,710 | | | 69,168 |
| | | Mining (except Oil and Gas) — 0.51% | | | | |
| ELT AU | | Elementos Limited* | 9,081 | | | 125 |
| FNV | | Franco-Nevada Corporation | 1,000 | | | 35,770 |
| NCQ | | NovaCopper Inc.* | 666 | | | 1,165 |
| NG | | NovaGold Resources Inc.* | 4,000 | | | 8,440 |
| | | | | | | 45,500 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | Shares | | | Value |
| | | Motion Picture and Sound Recording Industries — 2.69% | | | | |
| DWA | | DreamWorks Animation SKG, Inc. — Class A*^ | 9,400 | | $ | 241,204 |
| | | Non-Store Retailers — 2.41% | | | | |
| LINTA | | Liberty Interactive Corporation — Class A* | 9,400 | | | 216,294 |
| | | Oil and Gas — 1.70% | | | | |
| TPL | | Texas Pacific Land Trust^ | 1,800 | | | 152,568 |
| | | Oil and Gas Extraction — 2.76% | | | | |
| CLR | | Continental Resources, Inc.*^ | 1,050 | | | 90,363 |
| MPI FP | | MPI | 1,000 | | | 4,374 |
| POU CN | | Paramount Resources Ltd. — Class A* | 1,410 | | | 47,795 |
| TOU CN | | Tourmaline Oil Corp.* | 2,615 | | | 104,754 |
| | | | | | | 247,286 |
| | | Pharmaceutical and Biotechnology — 0.06% | | | | |
| VLAP AV | | Valneva SE* | 1,300 | | | 415 |
| VLA FP | | Valneva SE* | 1,300 | | | 5,364 |
| | | | | | | 5,779 |
| | | Publishing Industries (except Internet) — 0.06% | | | | |
| PRS SM | | Promotora de Informaciones S.A. — Class A* | 18,310 | | | 5,005 |
| | | Real Estate — 8.61% | | | | |
| ABP AU | | Abacus Property Group | 16,000 | | | 33,217 |
| BPY | | Brookfield Property Partners LP^ | 281 | | | 5,704 |
| BRE CN | | Brookfield Real Estate Services, Inc. | 5,050 | | | 58,581 |
| CWT-U CN | | Calloway — REIT | 5,100 | | | 124,675 |
| CIT SP | | City Developments Limited | 10,715 | | | 90,454 |
| DRM CN | | Dream Unlimited Corp. — Class A* | 11,900 | | | 128,991 |
| FCE/A | | Forest City Enterprises, Inc. — Class A* | 18,505 | | | 331,425 |
| | | | | | | 773,047 |
| | | Restaurants — 4.59% | | | | |
| BKW | | Burger King Worldwide Inc.^ | 2,000 | | | 39,020 |
| WEN | | The Wendy’s Company^ | 64,000 | | | 373,120 |
| | | | | | | 412,140 |
| | | Satellite Telecommunications — 1.78% | | | | |
| DISH | | DISH Network Corp. — Class A | 2,000 | | | 85,040 |
| SATS | | EchoStar Corporation — Class A* | 1,900 | | | 74,309 |
| | | | | | | 159,349 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Support Activities for Transportation — 1.02% | | | | | |
| 694 HK | | Beijing Capital International Airport Company Limited — | | | | | |
| | | Class H | | 140,000 | | $ | 91,335 |
| | | TOTAL COMMON STOCKS | | | | | |
| | | (cost $6,557,282) | | | | | 7,725,644 |
| | | | | | | | |
| | | PREFERRED STOCKS — 0.00% | | | | | |
| | | Building Material and Garden Equipment and Supplies Dealers — 0.00% | | | | | |
| OSHUS | | Orchard Supply Hardware Stores Corporation — Series A* | | 132 | | | 19 |
| | | TOTAL PREFERRED STOCKS | | | | | |
| | | (cost $191) | | | | | 19 |
| | | | | | | | |
| | | RIGHTS — 0.00% | | | | | |
| | | Pharmaceutical and Biotechnology — 0.00% | | | | | |
| IJE GR | | Intercell AG NPV* | | 4,000 | | | — |
| VLADS FP | | Valneva SE | | | | | |
| | | Expiration Date: 6/26/2013, Strike Price: €2.65*+ | | 1,300 | | | — |
| | | TOTAL RIGHTS | | | | | |
| | | (cost $7,690) | | | | | — |
| | | | | | | | |
| | | WARRANTS — 0.00% | | | | | |
| | | Oil and Gas and Consumable Fuels — 0.00% | | | | | |
| MAUBS FP | | Etablissements Maurel et Prom | | | | | |
| | | Expiration Date: 6/30/2014 | | | | | |
| | | Exercise Price: $14.20* | | 1,000 | | | 230 |
| | | TOTAL WARRANTS | | | | | |
| | | (cost $0) | | | | | 230 |
| | | | | | | | |
| | | | | Principal | | | |
| | | SHORT-TERM INVESTMENTS — 8.97% | | Amount | | | |
| | | Commercial Paper — 4.46% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 400,000 | | | 400,000 |
The accompanying notes are an integral part of these financial statements.
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | Shares | | | Value |
| | | Money Market Funds — 4.51% | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 0.01%b | 404,898 | | $ | 404,898 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | |
| | | (cost $804,898) | | | | 804,898 |
| | | | | | | |
| | | INVESTMENTS PURCHASED WITH | | | | |
| | | THE CASH PROCEEDS FROM | | | | |
| | | SECURITIES LENDING — 21.65% | | | | |
| | | Money Market Funds — 21.65% | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | |
| | | Portfolio, 0.19%b | 1,943,040 | | | 1,943,040 |
| | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | |
| | | (cost $1,943,040) | | | | 1,943,040 |
| | | TOTAL INVESTMENTS — 116.72% | | | | |
| | | (cost $9,313,101) | | | $ | 10,473,831 |
| | | |
| Percentages are stated as a percent of net assets. |
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $1,884,990 at June 30, 2013. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. |
| b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
| ADR — | American Depository Receipt. |
| REIT — | Real Estate Investment Trust. |
€ — | Euro. |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Paradigm Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | COMMON STOCKS — 91.40% | | Shares | | | Value |
| | | Apparel Manufacturing — 0.13% | | | | | |
| LTD | | L Brands, Inc.^ | | 25,600 | | $ | 1,260,800 |
| LVMUY | | LVMH Moet Hennessy Louis Vuitton SA — ADR | | 5,200 | | | 168,589 |
| | | | | | | | 1,429,389 |
| | | Asset Management — 6.13% | | | | | |
| APO | | Apollo Global Management LLC — Class A^ | | 1,000 | | | 24,100 |
| BAM | | Brookfield Asset Management Inc. — Class A^ | | 1,267,300 | | | 45,648,146 |
| CG | | The Carlyle Group LP | | 100 | | | 2,570 |
| DDEJF | | Dundee Corporation — Class A* | | 93,400 | | | 1,895,572 |
| JZCP LN | | JZ Capital Partners Ltd. | | 15,200 | | | 110,391 |
| KKR | | KKR & Co. LP^ | | 900 | | | 17,694 |
| OAK | | Oaktree Capital Group LLC^ | | 13,900 | | | 730,445 |
| ONEXF | | Onex Corporation | | 327,000 | | | 14,943,900 |
| RCP LN | | RIT Capital Partners PLC | | 26,600 | | | 469,307 |
| 806 HK | | Value Partners Group Limited | | 3,081,000 | | | 1,660,456 |
| WETF | | WisdomTree Investments, Inc.* | | 150,000 | | | 1,735,500 |
| | | | | | | | 67,238,081 |
| | | Beverage and Tobacco Product Manufacturing — 0.14% | | | | | |
| BF/A | | Brown-Forman Corporation — Class A | | 450 | | | 30,447 |
| CWGL | | Crimson Wine Group Ltd.*^ | | 171,860 | | | 1,463,388 |
| PM | | Philip Morris International, Inc. | | 750 | | | 64,965 |
| | | | | | | | 1,558,800 |
| | | Broadcasting (except Internet) — 8.06% | | | | | |
| CBS | | CBS Corporation — Class B | | 559,720 | | | 27,353,516 |
| DISCA | | Discovery Communications, Inc. — Class A*^ | | 389,623 | | | 30,082,792 |
| SNI | | Scripps Networks Interactive — Class A^ | | 69,973 | | | 4,671,398 |
| STRZA | | Starz — Class A* | | 588,500 | | | 13,005,850 |
| VIAB | | Viacom Inc. — Class B | | 196,400 | | | 13,365,020 |
| | | | | | | | 88,478,576 |
| | | Building Material and Garden Equipment and Supplies Dealers — 0.00% | | | | | |
| OSHWQ | | Orchard Supply Hardware Stores Corporation — Class A*^ | | 23,155 | | | 6,947 |
| | | Chemical Manufacturing — 1.08% | | | | | |
| OPK | | OPKO Health, Inc.*^ | | 4,000 | | | 28,400 |
| SIAL | | Sigma-Aldrich Corporation^ | | 145,815 | | | 11,717,693 |
| VHI | | Valhi, Inc.^ | | 6,000 | | | 82,440 |
| | | | | | | | 11,828,533 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Paradigm Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Construction of Buildings — 0.14% | | | | | |
| BRP | | Brookfield Residential Properties Inc.* | | 28,600 | | $ | 630,916 |
| LEN | | Lennar Corporation — Class A^ | | 26,300 | | | 947,852 |
| | | | | | | | 1,578,768 |
| | | Credit Intermediation and Related Activities — 0.00% | | | | | |
| UCBHQ | | UCBH Holdings, Inc.*^+ | | 112,751 | | | — |
| | | E-Commerce — 0.19% | | | | | |
| IACI | | IAC/InterActiveCorp | | 44,700 | | | 2,125,932 |
| | | Electronics and Appliance Stores — 0.41% | | | | | |
| SHOS | | Sears Hometown and Outlet Stores Inc.* | | 102,900 | | | 4,498,788 |
| | | Gaming — 3.89% | | | | | |
| LVS | | Las Vegas Sands Corp | | 360,000 | | | 19,054,800 |
| MGM | | MGM Resorts International*^ | | 481,600 | | | 7,118,048 |
| WYNN | | Wynn Resorts Limited | | 129,000 | | | 16,512,000 |
| | | | | | | | 42,684,848 |
| | | Gasoline Stations — 0.02% | | | | | |
| SUSS | | Susser Holdings Corporation* | | 5,200 | | | 248,976 |
| | | General Merchandise Stores — 2.55% | | | | | |
| FDO | | Family Dollar Stores, Inc. | | 4,800 | | | 299,088 |
| JCP | | J.C. Penney Company, Inc.*^ | | 300,000 | | | 5,124,000 |
| SEARF | | Sears Canada Inc.^ | | 479,800 | | | 4,989,920 |
| SHLD | | Sears Holdings Corporation*^ | | 416,300 | | | 17,517,904 |
| | | | | | | | 27,930,912 |
| | | Global Exchanges — 0.83% | | | | | |
| EXAE GA | | Hellenic Exchanges S.A. Holding Clearing Settlement | | | | | |
| | | and Registry | | 33,600 | | | 261,536 |
| 8697 JP | | Japan Exchange Group Inc. | | 56,800 | | | 5,738,415 |
| JSE SJ | | JSE Limited | | 432,000 | | | 3,102,868 |
| | | | | | | | 9,102,819 |
| | | Holding Company — 17.26% | | | | | |
| BOL FP | | Bollore SA | | 5,200 | | | 2,164,918 |
| GBLS BB | | Groupe Bruxelles Lambert S.A. Strip VVPR*+ | | 23,520 | | | — |
| IEP | | Icahn Enterprises LP | | 789,389 | | | 57,443,837 |
| JS SP | | Jardine Strategic Holdings Limited | | 64,800 | | | 2,352,240 |
| JSHLY | | Jardine Strategic Holdings Limited — ADR^ | | 14,400 | | | 260,496 |
| LUK | | Leucadia National Corporation | | 1,718,600 | | | 45,061,692 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Paradigm Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Holding Company — 17.26% (Continued) | | | | | |
| LMCA | | Liberty Media Corporation — Class A* | | 587,600 | | $ | 74,484,176 |
| LVNTA | | Liberty Ventures — Series A* | | 90,400 | | | 7,684,904 |
| PVF CN | | Partners Value Fund Inc.* | | 800 | | | 16,256 |
| | | | | | | | 189,468,519 |
| | | Insurance Carriers and Related Activities — 1.16% | | | | | |
| MKL | | Markel Corporation* | | 22,732 | | | 11,978,627 |
| WTM | | White Mountains Insurance Group Ltd. | | 1,400 | | | 804,916 |
| | | | | | | | 12,783,543 |
| | | Lessors of Nonresidential Buildings (except Miniwarehouses) — 8.79% | | | | | |
| ALX | | Alexander’s, Inc. — REIT^ | | 5,091 | | | 1,495,278 |
| HHC | | The Howard Hughes Corporation* | | 792,900 | | | 88,876,161 |
| RSE | | Rouse Properties, Inc.^ | | 309,900 | | | 6,080,238 |
| | | | | | | | 96,451,677 |
| | | Lessors of Residential Buildings and Dwellings — 1.76% | | | | | |
| ELS | | Equity Lifestyle Properties, Inc. — REIT | | 245,870 | | | 19,322,923 |
| | | Machinery Manufacturing — 0.08% | | | | | |
| CFX | | Colfax Corporation* | | 17,300 | | | 901,503 |
| | | Manufactured Brands — 2.14% | | | | | |
| JAH | | Jarden Corporation* | | 536,000 | | | 23,450,000 |
| | | Merchant Wholesalers, Nondurable Goods — 0.00% | | | | | |
| GLEN LN | | Glencore Xstrata PLC | | 12,000 | | | 49,671 |
| | | Mining (except Oil and Gas) — 0.93% | | | | | |
| FNV | | Franco-Nevada Corporation^ | | 286,800 | | | 10,258,836 |
| | | Motion Picture and Sound Recording Industries — 4.37% | | | | | |
| DWA | | DreamWorks Animation SKG, Inc. — Class A*^ | | 1,868,700 | | | 47,950,842 |
| | | Motor Vehicle and Parts Dealers — 4.44% | | | | | |
| AN | | AutoNation, Inc.* | | 1,123,100 | | | 48,731,309 |
| | | Non-Store Retailers — 2.41% | | | | | |
| LINTA | | Liberty Interactive Corporation — Class A* | | 1,149,600 | | | 26,452,296 |
| | | Oil and Gas — 2.15% | | | | | |
| TPL | | Texas Pacific Land Trust | | 277,800 | | | 23,546,328 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Paradigm Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Oil and Gas Extraction — 3.79% | | | | | |
| CNQ | | Canadian Natural Resources Ltd. | | 390,200 | | $ | 11,027,052 |
| CLR | | Continental Resources, Inc.*^ | | 112,990 | | | 9,723,919 |
| SEMUF | | Siem Industries Inc. | | 200 | | | 15,200 |
| TOU CN | | Tourmaline Oil Corp.* | | 518,690 | | | 20,778,178 |
| | | | | | | | 41,544,349 |
| | | Other Exchanges — 0.05% | | | | | |
| URB/A CN | | Urbana Corporation — Class A* | | 398,178 | | | 526,260 |
| | | Other Information Services — 0.00% | | | | | |
| GOOG | | Google Inc. — Class A* | | 30 | | | 26,411 |
| | | Performing Arts, Spectator Sports, and Related Industries — 2.78% | | | | | |
| LYV | | Live Nation Entertainment, Inc.*^ | | 1,966,400 | | | 30,479,200 |
| | | Real Estate — 4.00% | | | | | |
| BPY | | Brookfield Property Partners LP^ | | 73,064 | | | 1,483,199 |
| CWT-U CN | | Calloway — REIT | | 19,200 | | | 469,366 |
| DRM CN | | Dream Unlimited Corp. — Class A* | | 81,400 | | | 882,343 |
| FCE/A | | Forest City Enterprises, Inc. — Class A*^ | | 1,551,400 | | | 27,785,574 |
| 12 HK | | Henderson Land Development Company Limited | | 860,000 | | | 5,133,799 |
| VNO | | Vornado Realty Trust — REIT | | 98,869 | | | 8,191,296 |
| | | | | | | | 43,945,577 |
| | | Restaurants — 1.45% | | | | | |
| BKW | | Burger King Worldwide Inc.^ | | 12,400 | | | 241,924 |
| WEN | | The Wendy’s Company^ | | 2,678,600 | | | 15,616,238 |
| | | | | | | | 15,858,162 |
| | | Satellite Telecommunications — 4.68% | | | | | |
| DISH | | DISH Network Corp. — Class A | | 709,100 | | | 30,150,932 |
| SATS | | EchoStar Corporation — Class A* | | 509,900 | | | 19,942,189 |
| LORL | | Loral Space & Communications Inc. | | 300 | | | 17,994 |
| VSAT | | ViaSat, Inc.*^ | | 16,800 | | | 1,200,528 |
| | | | | | | | 51,311,643 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Paradigm Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Securities, Commodity Contracts, and Other Financial | | | | | |
| | | Investments and Related Activities — 3.41% | | | | | |
| CBOE | | CBOE Holdings Inc. | | 801,926 | | $ | 37,401,829 |
| | | Security System Services — 0.15% | | | | | |
| ASCMA | | Ascent Capital Group LLC — Class A* | | 21,100 | | | 1,647,277 |
| | | Support Activities for Transportation — 1.81% | | | | | |
| 694 HK | | Beijing Capital International Airport Company | | | | | |
| | | Limited — Class H | | 26,555,000 | | | 17,324,321 |
| 357 HK | | Hainan Meilan International Airport Company | | | | | |
| | | Limited — Class H | | 2,578,720 | | | 2,510,213 |
| | | | | | | | 19,834,534 |
| | | Utilities — 0.22% | | | | | |
| BIP | | Brookfield Infrastructure Partners LP | | 65,930 | | | 2,407,764 |
| | | TOTAL COMMON STOCKS | | | | | |
| | | (cost $777,052,997) | | | | | 1,003,061,822 |
| | | | | | | | |
| | | PREFERRED STOCKS — 0.00% | | | | | |
| | | Building Material and Garden Equipment and | | | | | |
| | | Supplies Dealers — 0.00% | | | | | |
| OSHUS | | Orchard Supply Hardware Stores Corporation — Series A*^ | | 23,155 | | | 3,240 |
| | | TOTAL PREFERRED STOCKS | | | | | |
| | | (cost $42,130) | | | | | 3,240 |
| | | | | | | | |
| | | | | Principal | | | |
| | | CONVERTIBLE BONDS — 0.45% | | Amount | | | |
| | | Real Estate — 0.45% | | | | | |
| 34555OAK3 | | Forest City Enterprises, Inc. | | | | | |
| | | 3.625%, 10/15/2014 | $ | 4,000,000 | | | 4,987,500 |
| | | TOTAL CONVERTIBLE BONDS | | | | | |
| | | (cost $3,894,943) | | | | | 4,987,500 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Paradigm Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | SHORT-TERM INVESTMENTS — 7.75% | | Amount | | | Value |
| | | Commercial Paper — 4.92% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 54,000,000 | | $ | 54,000,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 2.83% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 001%b | | 31,028,631 | | | 31,028,631 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $85,028,631) | | | | | 85,028,631 |
| | | | | | | | |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS FROM | | | | | |
| | | SECURITIES LENDING — 16.94% | | | | | |
| | | Money Market Funds — 16.94% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b | | 185,945,676 | | | 185,945,676 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $185,945,676) | | | | | 185,945,676 |
| | | TOTAL INVESTMENTS — 116.54% | | | | | |
| | | (cost $1,051,964,377) | | | | $ | 1,279,026,869 |
__________________________
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $180,103,335 at June 30, 2013. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 000% of net assets. |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
ADR — American Depository Receipt. REIT — Real Estate Investment Trust. |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Medical Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | COMMON STOCKS — 98.99% | | Shares | | | Value |
| | | Ambulatory Health Care Services — 0.00% | | | | | |
| AVXT | | AVAX Technologies, Inc.* | | 50,000 | | $ | 400 |
| | | Chemical Manufacturing — 10.02% | | | | | |
| AGEN | | Agenus, Inc.* | | 148 | | | 561 |
| ALKS | | Alkermes PLC*^ | | 25,000 | | | 717,000 |
| APHB | | Ampliphi Biosciences Corp.* | | 1,000 | | | 175 |
| LONN VX | | Lonza Group AG* | | 4,000 | | | 301,307 |
| MMRF | | MMRGlobal Inc.* | | 43,000 | | | 2,778 |
| OSIR | | Osiris Therapeutics, Inc.*^ | | 16,000 | | | 161,120 |
| RHHBY | | Roche Holding AG Ltd. — ADR | | 8,000 | | | 494,920 |
| SHPG | | Shire PLC — ADR | | 6,000 | | | 570,660 |
| | | | | | | | 2,248,521 |
| | | Computer and Electronic Product Manufacturing — 0.01% | | | | | |
| TGX | | Theragenics Corporation* | | 655 | | | 1,356 |
| | | Pharmaceutical and Biotechnology — 83.75% | | | | | |
| ABT | | Abbott Laboratories | | 16,000 | | | 558,080 |
| ABBV | | AbbVie Inc. | | 14,000 | | | 578,760 |
| AEZS | | AEterna Zentaris Inc.*^ | | 17,083 | | | 31,774 |
| ARNA | | Arena Pharmaceuticals, Inc.*^ | | 45,000 | | | 346,500 |
| AZN | | AstraZeneca PLC — ADR^ | | 12,000 | | | 567,600 |
| ATB CN | | Atrium Innovations Inc.* | | 4,884 | | | 67,848 |
| BIIB | | Biogen Idec, Inc.* | | 7,250 | | | 1,560,200 |
| BPAX | | BioSante Pharmaceuticals, Inc.* | | 2,246 | | | 2,246 |
| BMY | | Bristol-Myers Squibb Company^ | | 34,000 | | | 1,519,460 |
| CLDX | | Celldex Therapeutics Inc.*^ | | 26,294 | | | 410,449 |
| CBST | | Cubist Pharmaceuticals, Inc.*^ | | 24,000 | | | 1,159,200 |
| DNDN | | Dendreon Corporation*^ | | 34,000 | | | 140,080 |
| LLY | | Eli Lilly & Company | | 23,000 | | | 1,129,760 |
| EPCT | | EpiCept Corporation* | | 680 | | | 45 |
| GSK | | GlaxoSmithKline PLC — ADR | | 22,673 | | | 1,132,970 |
| ISIS | | Isis Pharmaceuticals, Inc.*^ | | 17,000 | | | 456,790 |
| ISA CN | | Isotechnika Pharma Inc.* | | 40,000 | | | 1,236 |
| JNJ | | Johnson & Johnson^ | | 14,000 | | | 1,202,040 |
| LIFE | | Life Technologies Corporation* | | 18,000 | | | 1,332,180 |
| MAXY | | Maxygen, Inc. | | 41,000 | | | 101,680 |
| MRK | | Merck & Co., Inc. | | 16,000 | | | 743,200 |
| MYRX | | Myrexis Inc. | | 74,000 | | | 5,550 |
| COX FP | | NicOx SA* | | 41,535 | | | 137,160 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Medical Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Pharmaceutical and Biotechnology — 83.75% (Continued) | | | | | |
| NVS | | Novartis AG — ADR | | 18,000 | | $ | 1,272,780 |
| ONTY | | Oncothyreon, Inc.*^ | | 32,333 | | | 50,440 |
| PTIE | | Pain Therapeutics, Inc.^* | | 38,000 | | | 83,980 |
| PFE | | Pfizer, Inc. | | 46,000 | | | 1,288,460 |
| PGNX | | Progenics Pharmaceuticals, Inc.* | | 67,200 | | | 299,712 |
| SNY | | Sanofi — ADR | | 26,000 | | | 1,339,260 |
| SCR | | Simcere Pharmaceutical Group — ADR* | | 48,000 | | | 455,040 |
| TELK | | Telik, Inc.* | | 3,866 | | | 5,219 |
| VICL | | Vical Inc.*^ | | 84,500 | | | 264,485 |
| VPHM | | ViroPharma Inc.*^ | | 19,000 | | | 544,350 |
| | | | | | | | 18,788,534 |
| | | Professional, Scientific, and Technical Services — 5.21% | | | | | |
| AFFX | | Affymetrix, Inc.*^ | | 104,000 | | | 461,760 |
| AMRI | | Albany Molecular Research, Inc.* | | 56,000 | | | 664,720 |
| CDXS | | Codexis, Inc.*^ | | 5,611 | | | 12,400 |
| PACB | | Pacific Biosciences of California Inc.* | | 12,000 | | | 30,240 |
| | | | | | | | 1,169,120 |
| | | TOTAL COMMON STOCKS | | | | | |
| | | (cost $19,938,285) | | | | | 22,207,931 |
| | | | | | | | |
| | | RIGHTS — 0.14% | | | | | |
| | | Funds, Trusts, and Other Financial Vehicles — 0.01% | | | | | |
| LGNYZ | | Ligand Pharmaceuticals Inc. | | 44,000 | | | 1,056 |
| LGNDZ | | Ligand Pharmaceuticals Inc.* | | 44,000 | | | 612 |
| LGNXZ | | Ligand Pharmaceuticals Inc.* | | 44,000 | | | 44 |
| LGNZZ | | Ligand Pharmaceuticals Inc.* | | 44,000 | | | 44 |
| | | | | | | | 1,756 |
| | | Pharmaceutical and Biotechnology — 0.13% | | | | | |
| 09065VCVR | | BioSante Pharmaceuticals, Inc.*+ | | 2,246 | | | — |
| GCVRZ | | Sanofi* | | 15,538 | | | 29,988 |
| | | | | | | | 29,988 |
| | | TOTAL RIGHTS | | | | | |
| | | (cost $0) | | | | | 31,744 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Medical Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | SHORT-TERM INVESTMENTS — 0.94% | | Amount | | | Value |
| | | Commercial Paper — 0.71% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 160,000 | | $ | 160,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 0.23% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 0.01% b | | 50,876 | | | 50,876 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $210,876) | | | | | 210,876 |
| | | | | | | | |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS | | | | | |
| | | FROM SECURITIES LENDING — 37.68% | | | | | |
| | | Money Market Funds — 37.68% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b | | 8,452,914 | | | 8,452,914 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $8,452,914) | | | | | 8,452,914 |
| | | TOTAL INVESTMENTS — 137.75% | | | | | |
| | | (cost $28,602,075) | | | | $ | 30,903,465 |
___________________________
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $7,887,464 at June 30, 2013. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
ADR — American Depository Receipt.
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Small Cap Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | COMMON STOCKS — 95.41% | | Shares | | | Value |
| | | Accommodation — 0.03% | | | | | |
| TPCA | | Tropicana Entertainment Inc.* | | 3,600 | | $ | 53,280 |
| | | Asset Management — 7.89% | | | | | |
| DDEJF | | Dundee Corporation — Class A*^ | | 241,400 | | | 4,899,261 |
| JZCP LN | | JZ Capital Partners Ltd. | | 88,000 | | | 639,107 |
| OCX CN | | Onex Corporation | | 24,860 | | | 1,128,001 |
| RCP LN | | RIT Capital Partners PLC | | 135,200 | | | 2,385,350 |
| SII CN | | Sprott, Inc. | | 1,680 | | | 4,473 |
| 806 HK | | Value Partners Group Limited | | 3,375,000 | | | 1,818,903 |
| WETF | | WisdomTree Investments, Inc.* | | 171,900 | | | 1,988,883 |
| | | | | | | | 12,863,978 |
| | | Automobile and Other Motor Vehicle Merchant Wholesalers — 0.36% | | | | | |
| VTU LN | | Vertu Motors PLC | | 975,000 | | | 596,140 |
| | | Broadcasting (except Internet) — 4.01% | | | | | |
| STRZA | | Starz — Class A*^ | | 296,000 | | | 6,541,600 |
| | | Chemical Manufacturing — 2.71% | | | | | |
| IPAR | | Inter Parfums, Inc.^ | | 155,100 | | | 4,423,452 |
| | | Construction of Buildings — 4.01% | | | | | |
| BRP | | Brookfield Residential Properties Inc.* | | 296,300 | | | 6,536,378 |
| | | Credit Intermediation and Related Activities — 0.45% | | | | | |
| BOKF | | BOK Financial Corporation | | 11,400 | | | 730,170 |
| | | Electronics and Appliance Stores — 1.02% | | | | | |
| SHOS | | Sears Hometown and Outlet Stores Inc.* | | 37,900 | | | 1,656,988 |
| | | Forestry and Logging — 0.02% | | | | | |
| KEWL | | Keweenaw Land Association Ltd.* | | 380 | | | 31,160 |
| | | Gasoline Stations — 1.99% | | | | | |
| SUSS | | Susser Holdings Corporation* | | 67,800 | | | 3,246,264 |
| | | Global Exchanges — 0.91% | | | | | |
| EXAE GA | | Hellenic Exchanges S.A. Holding Clearing Settlement | | | | | |
| | | and Registry | | 190,000 | | | 1,478,926 |
| | | Holding Company — 9.98% | | | | | |
| IEP | | Icahn Enterprises LP^ | | 176,262 | | | 12,826,586 |
| LVNTA | | Liberty Ventures — Series A* | | 16,100 | | | 1,368,661 |
| PVF CN | | Partners Value Fund Inc.* | | 102,800 | | | 2,088,843 |
| | | | | | | | 16,284,090 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Small Cap Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Insurance Carriers and Related Activities — 4.15% | | | | | |
| AFSI | | AmTrust Financial Services, Inc.^ | | 72,050 | | $ | 2,572,185 |
| GLRE | | Greenlight Capital Re, Ltd. — Class A*^ | | 171,400 | | | 4,204,442 |
| | | | | | | | 6,776,627 |
| | | Lessors of Nonresidential Buildings (except Miniwarehouses) — 12.56% | | | | | |
| ALX | | Alexander’s, Inc. — REIT | | 1,400 | | | 411,194 |
| HHC | | The Howard Hughes Corporation* | | 85,300 | | | 9,561,277 |
| RSE | | Rouse Properties, Inc.^ | | 207,400 | | | 4,069,188 |
| FUR | | Winthrop Realty Trust — REIT | | 536,000 | | | 6,448,080 |
| | | | | | | | 20,489,739 |
| | | Lessors of Residential Buildings and Dwellings — 2.90% | | | | | |
| ELS | | Equity Lifestyle Properties, Inc. — REIT | | 60,100 | | | 4,723,259 |
| | | Machinery Manufacturing — 1.10% | | | | | |
| CFX | | Colfax Corporation* | | 34,500 | | | 1,797,795 |
| | | Manufactured Brands — 6.53% | | | | | |
| JAH | | Jarden Corporation* | | 199,050 | | | 8,708,438 |
| MOV | | Movado Group, Inc. | | 57,200 | | | 1,935,076 |
| | | | | | | | 10,643,514 |
| | | Merchant Wholesalers, Durable Goods — 0.54% | | | | | |
| DORM | | Dorman Products, Inc.^ | | 19,200 | | | 876,096 |
| | | Mining (except Oil and Gas) — 0.52% | | | | | |
| FM CN | | First Quantum Minerals Ltd. | | 39,366 | | | 583,921 |
| MUX | | McEwen Mining Inc.*^ | | 160,600 | | | 269,808 |
| | | | | | | | 853,729 |
| | | Motion Picture and Sound Recording Industries — 6.51% | | | | | |
| DWA | | DreamWorks Animation SKG, Inc. — Class A*^ | | 413,700 | | | 10,615,542 |
| | | Motor Vehicle and Parts Dealers — 0.72% | | | | | |
| PAG | | Penske Automotive Group, Inc. | | 38,700 | | | 1,181,898 |
| | | Oil and Gas — 4.41% | | | | | |
| TPL | | Texas Pacific Land Trust | | 84,900 | | | 7,196,124 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Small Cap Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Oil and Gas Extraction — 0.65% | | | | | |
| BLMC | | Biloxi Marsh Lands Corporation | | 100 | | $ | 1,477 |
| WPX | | WPX Energy Inc.*^ | | 55,800 | | | 1,056,852 |
| | | | | | | | 1,058,329 |
| | | Other Exchanges — 0.39% | | | | | |
| URB/A CN | | Urbana Corporation — Class A* | | 477,071 | | | 630,530 |
| | | Performing Arts, Spectator Sports, and Related Industries — 6.15% | | | | | |
| LYV | | Live Nation Entertainment, Inc.*^ | | 647,000 | | | 10,028,500 |
| | | Publishing Industries (except Internet) — 0.24% | | | | | |
| PRIS | | Promotora de Informaciones S.A. — ADR*^ | | 44,030 | | | 46,232 |
| PRIS/B US | | Promotora de Informaciones S.A. — Class B — ADR* | | 251,600 | | | 281,792 |
| VALU | | Value Line, Inc.^ | | 7,615 | | | 64,727 |
| | | | | | | | 392,751 |
| | | Real Estate — 1.98% | | | | | |
| DRM CN | | Dream Unlimited Corp. — Class A* | | 297,500 | | | 3,224,779 |
| | | Rental and Leasing Services — 0.02% | | | | | |
| CDCO | | Comdisco Holding Company, Inc.*^ | | 7,560 | | | 36,515 |
| | | Restaurants — 5.99% | | | | | |
| WEN | | The Wendy’s Company^ | | 1,675,900 | | | 9,770,497 |
| | | Satellite Telecommunications — 092% | | | | | |
| LORL | | Loral Space & Communications Inc. | | 14,000 | | | 839,720 |
| VSAT | | ViaSat, Inc.* | | 9,200 | | | 657,432 |
| | | | | | | | 1,497,152 |
| | | Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 049% | | | | | |
| CBOE | | CBOE Holdings Inc. | | 16,990 | | | 792,414 |
| RHJI BB | | RHJ International* | | 800 | | | 3,769 |
| | | | | | | | 796,183 |
| | | Security System Services — 4.15% | | | | | |
| ASCMA | | Ascent Capital Group LLC — Class A* | | 86,800 | | | 6,776,476 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Small Cap Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Telecommunications — 0.04% | | | | | |
| CIBY | | CIBL, Inc.* | | 18 | | $ | 17,640 |
| ICTG | | ICTC Group Inc.* | | 208 | | | 4,701 |
| LICT | | Lynch Interactive Corporation* | | 16 | | | 36,881 |
| | | | | | | | 59,222 |
| | | Transportation Equipment Manufacturing — 1.07% | | | | | |
| ARII | | American Railcar Industries, Inc.^ | | 24,500 | | | 820,995 |
| FDML | | Federal-Mogul Corporation* | | 90,000 | | | 918,900 |
| | | | | | | | 1,739,895 |
| | | TOTAL COMMON STOCKS | | | | | |
| | | (cost $119,361,005) | | | | | 155,607,578 |
| | | | | | | | |
| | | RIGHTS — 0.00% | | | | | |
| | | Rental and Leasing Services — 0.00% | | | | | |
| CDCOR | | Comdisco Holding Company, Inc. | | | | | |
| | | Expiration Date: 12/31/2050, Strike Price: $1.00*# | | 5,634,807 | | | 563 |
| | | TOTAL RIGHTS | | | | | |
| | | (cost $1,296,169) | | | | | 563 |
| | | | | Principal | | | |
| | | SHORT-TERM INVESTMENTS — 5.05% | | Amount | | | |
| | | Commercial Paper — 4.60% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 7,500,000 | | | 7,500,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 0.45% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 0.01%b | | 739,174 | | | 739,174 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $8,239,174) | | | | | 8,239,174 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Small Cap Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS FROM | | | | | |
| Identifier | | SECURITIES LENDING — 27.65% | | Shares | | | Value |
| | | Money Market Funds — 27.65% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b | | 45,095,910 | | $ | 45,095,910 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $45,095,910) | | | | | 45,095,910 |
| | | TOTAL INVESTMENTS – 128.11% | | | | | |
| | | (cost $173,992,258) | | | | $ | 208,943,225 |
_______________________________
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $43,583,684 at June 30, 2013. |
| # — | Contingent value right (contingent upon profitability of company). |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
ADR — American Depository Receipt.
REIT — Real Estate Investment Trust.
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Market Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | COMMON STOCKS — 91.61% | | Shares | | | Value |
| | | Accommodation — 0.23% | | | | | |
| TPCA | | Tropicana Entertainment, Inc.* | | 9,200 | | $ | 136,160 |
| | | Asset Management — 25.80% | | | | | |
| APO | | Apollo Global Management LLC — Class A^ | | 13,600 | | | 327,760 |
| BX | | The Blackstone Group LP^ | | 68,399 | | | 1,440,483 |
| BAM | | Brookfield Asset Management Inc. — Class A | | 64,440 | | | 2,321,129 |
| CG | | The Carlyle Group LP | | 100 | | | 2,570 |
| CNS | | Cohen & Steers, Inc.^ | | 10,000 | | | 339,800 |
| DDEJF | | Dundee Corporation — Class A*^ | | 74,600 | | | 1,514,022 |
| JZCP LN | | JZ Capital Partners Ltd. | | 60,600 | | | 440,112 |
| KKR | | KKR & Co. LP^ | | 2,400 | | | 47,184 |
| OAK | | Oaktree Capital Group LLC^ | | 32,500 | | | 1,707,875 |
| OZM | | Och-Ziff Capital Management Group — Class A^ | | 2,400 | | | 25,056 |
| ONEXF | | Onex Corporation | | 60,100 | | | 2,746,570 |
| RCP LN | | RIT Capital Partners PLC | | 22,300 | | | 393,442 |
| SII CN | | Sprott, Inc. | | 41,155 | | | 109,569 |
| TROW | | T. Rowe Price Group, Inc. | | 3,000 | | | 219,450 |
| 806 HK | | Value Partners Group Limited | | 960,000 | | | 517,377 |
| WETF | | WisdomTree Investments, Inc.* | | 269,200 | | | 3,114,644 |
| | | | | | | | 15,267,043 |
| | | Beverage and Tobacco Product Manufacturing — 0.07% | | | | | |
| CWGL | | Crimson Wine Group Ltd.* | | 5,080 | | | 43,256 |
| | | Construction of Buildings — 0.61% | | | | | |
| BRP | | Brookfield Residential Properties Inc.* | | 16,400 | | | 361,784 |
| | | Credit Intermediation and Related Activities — 0.30% | | | | | |
| BBCN | | BBCN Bancorp, Inc. | | 6,164 | | | 87,652 |
| EWBC | | East West Bancorp, Inc. | | 3,204 | | | 88,110 |
| UCBHQ | | UCBH Holdings, Inc.*^+ | | 6,803 | | | — |
| | | | | | | | 175,762 |
| | | Data Processor — 4.22% | | | | | |
| FISV | | Fiserv, Inc.* | | 3,000 | | | 262,230 |
| MA | | MasterCard, Inc. — Class A | | 1,600 | | | 919,200 |
| V | | Visa, Inc. — Class A^ | | 7,200 | | | 1,315,800 |
| | | | | | | | 2,497,230 |
| | | Electronics and Appliance Stores — 0.05% | | | | | |
| SHOS | | Sears Hometown and Outlet Stores Inc.* | | 610 | | | 26,669 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Market Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | European Exchanges — 0.63% | | | | | |
| DB1 GR | | Deutsche Boerse AG | | 5,650 | | $ | 371,906 |
| | | Gaming — 1.07% | | | | | |
| LVS | | Las Vegas Sands Corp | | 12,000 | | | 635,160 |
| | | General Merchandise Stores — 0.20% | | | | | |
| SHLD | | Sears Holdings Corporation*^ | | 2,800 | | | 117,824 |
| | | Global Exchanges — 3.15% | | | | | |
| EXAE GA | | Hellenic Exchanges S.A. Holding Clearing Settlement | | | | | |
| | | and Registry | | 21,600 | | | 168,130 |
| JSE SJ | | JSE Limited | | 120,000 | | | 861,908 |
| SGX SP | | Singapore Exchange Limited | | 150,000 | | | 831,953 |
| | | | | | | | 1,861,991 |
| | | Holding Company — 13.99% | | | | | |
| HPAR SP | | Haw Par Corporation Limited | | 21,400 | | | 122,068 |
| IEP | | Icahn Enterprises LP^ | | 59,160 | | | 4,305,073 |
| LUK | | Leucadia National Corporation | | 98,800 | | | 2,590,536 |
| LVNTA | | Liberty Ventures — Series A* | | 4,574 | | | 388,836 |
| PVF CN | | Partners Value Fund Inc.* | | 42,900 | | | 871,706 |
| | | | | | | | 8,278,219 |
| | | Insurance Carriers and Related Activities — 5.16% | | | | | |
| AFSI | | AmTrust Financial Services, Inc.^ | | 1,100 | | | 39,270 |
| GLRE | | Greenlight Capital Re, Ltd. — Class A*^ | | 1,200 | | | 29,436 |
| MKL | | Markel Corporation* | | 523 | | | 275,595 |
| PWF CN | | Power Financial Corporation | | 12,000 | | | 348,921 |
| WTM | | White Mountains Insurance Group Ltd. | | 4,100 | | | 2,357,254 |
| | | | | | | | 3,050,476 |
| | | Lessors of Nonresidential Buildings (except Miniwarehouses) — 9.57% | | | | | |
| HHC | | The Howard Hughes Corporation* | | 25,900 | | | 2,903,131 |
| RSE | | Rouse Properties, Inc.^ | | 140,600 | | | 2,758,572 |
| | | | | | | | 5,661,703 |
| | | Mining (except Oil and Gas) — 0.51% | | | | | |
| FNV | | Franco-Nevada Corporation^ | | 8,400 | | | 300,468 |
| | | Non-Store Retailers — 3.58% | | | | | |
| LINTA | | Liberty Interactive Corporation — Class A* | | 22,900 | | | 526,929 |
| BID | | Sotheby’s^ | | 42,000 | | | 1,592,220 |
| | | | | | | | 2,119,149 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Market Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Shares | | | Value |
| | | Oil and Gas — 4.38% | | | | | |
| TPL | | Texas Pacific Land Trust^ | | 30,600 | | $ | 2,593,656 |
| | | Other Exchanges — 1.78% | | | | | |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | | 96,180 | | | 206,787 |
| IMAREX NO | | IMAREX ASA | | 1,850 | | | 548 |
| NZX NZ | | NZX Ltd. | | 359,002 | | | 372,798 |
| URB/A CN | | Urbana Corporation — Class A* | | 356,004 | | | 470,520 |
| | | | | | | | 1,050,653 |
| | | Real Estate — 1.91% | | | | | |
| BPY | | Brookfield Property Partners LP^ | | 3,641 | | | 73,912 |
| CWT-U CN | | Calloway — REIT | | 12,000 | | | 293,354 |
| DRM CN | | Dream Unlimited Corp. — Class A* | | 70,600 | | | 765,275 |
| | | | | | | | 1,132,541 |
| | | Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 12.38% | | | | | |
| CBOE | | CBOE Holdings Inc.^ | | 103,571 | | | 4,830,552 |
| CME | | CME Group, Inc. | | 9,140 | | | 694,457 |
| ICE | | IntercontinentalExchange Inc.*^ | | 7,600 | | | 1,350,976 |
| IVZ | | Invesco Ltd. | | 6,000 | | | 190,800 |
| LSE LN | | London Stock Exchange Group plc | | 12,800 | | | 260,291 |
| | | | | | | | 7,327,076 |
| | | Telecommunications — 0.02% | | | | | |
| IRDM | | Iridium Communications, Inc.*^ | | 1,672 | | | 12,975 |
| | | Transportation Equipment Manufacturing — 0.01% | | | | | |
| ARII | | American Railcar Industries, Inc.^ | | 100 | | | 3,351 |
| | | U.S. Equity Exchanges — 1.82% | | | | | |
| NDAQ | | The NASDAQ OMX Group, Inc. | | 6,400 | | | 209,856 |
| NYX | | NYSE Euronext | | 20,920 | | | 866,088 |
| | | | | | | | 1,075,944 |
| | | Utilities — 0.17% | | | | | |
| BIP | | Brookfield Infrastructure Partners LP | | 2,816 | | | 102,840 |
| | | TOTAL COMMON STOCKS | | | | | |
| | | (cost $42,590,984) | | | | | 54,203,836 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Market Opportunities Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | MUTUAL FUNDS — 0.01% | | Shares | | | Value |
| | | Funds, Trusts, and Other Financial Vehicles — 0.01% | | | | | |
| PFN | | PIMCO Income Strategy Fund II | | 760 | | $ | 7,995 |
| | | TOTAL MUTUAL FUNDS | | | | | |
| | | (cost $6,726) | | | | | 7,995 |
| | | | | Principal | | | |
| | | SHORT-TERM INVESTMENTS — 7.39% | | Amount | | | |
| | | Commercial Paper — 4.73% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 2,800,000 | | | 2,800,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 2.66% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 0.01%b | | 1,572,318 | | | 1,572,318 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $4,372,318) | | | | | 4,372,318 |
| | | | | | | | |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS FROM | | | | | |
| | | SECURITIES LENDING — 22.92% | | | | | |
| | | Money Market Funds — 22.92% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b | | 13,561,294 | | | 13,561,294 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $13,561,294) | | | | | 13,561,294 |
| | | TOTAL INVESTMENTS – 121.93% | | | | | |
| | | (cost $60,531,322) | | | | $ | 72,145,443 |
___________________________
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $13,196,155 at June 30, 2013. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
GDR — Global Depository Receipt.
REIT — Real Estate Investment Trust.
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | CONVERTIBLE BONDS — 1.36% | | Amount | | | Value |
| | | Holding Company — 1.36% | | | | | |
| 451102AB3 | | Icahn Enterprises LP | | | | | |
| | | 4.000%, 08/15/2013# | $ | 240,000 | | $ | 240,360 |
| | | TOTAL CONVERTIBLE BONDS | | | | | |
| | | (cost $239,357) | | | | | 240,360 |
| | | | | | | | |
| | | CORPORATE BONDS — 57.17% | | | | | |
| | | Beverage and Tobacco Product Manufacturing — 4.65% | | | | | |
| 02209SAK9 | | Altria Group, Inc. | | | | | |
| | | 4.125%, 09/11/2015^ | | 100,000 | | | 106,620 |
| 03523TBL1 | | Anheuser-Busch InBev Worldwide Inc. | | | | | |
| | | 1.500%, 07/14/2014 | | 126,000 | | | 127,362 |
| 10138MAH8 | | Bottling Group LLC | | | | | |
| | | 6.950%, 03/15/2014^ | | 100,000 | | | 104,379 |
| 191216AP5 | | The Coca-Cola Company | | | | | |
| | | 1.500%, 11/15/2015 | | 100,000 | | | 102,071 |
| 26138EAM1 | | Dr. Pepper Snapple Group, Inc. | | | | | |
| | | 2.900%, 01/15/2016 | | 200,000 | | | 208,360 |
| 761713AV8 | | Reynolds American, Inc. | | | | | |
| | | 1.050%, 10/30/2015 | | 175,000 | | | 175,051 |
| | | | | | | | 823,843 |
| | | Broadcasting (except Internet) — 4.08% | | | | | |
| 25459HAY1 | | DIRECTV Holdings LLC | | | | | |
| | | 3.500%, 03/01/2016 | | 150,000 | | | 157,678 |
| 25470DAB5 | | Discovery Communications | | | | | |
| | | 3.700%, 06/01/2015 | | 100,000 | | | 104,986 |
| 63946BAB6 | | NBCUniversal Media, LLC | | | | | |
| | | 3.650%, 04/30/2015 | | 100,000 | | | 105,120 |
| 88732JAQ1 | | Time Warner Cable Inc. | | | | | |
| | | 8.250%, 02/14/2014 | | 100,000 | | | 104,599 |
| 92553PAK8 | | Viacom Inc. | | | | | |
| | | 1.250%, 02/27/2015 | | 150,000 | | | 150,496 |
| 25468PCU8 | | The Walt Disney Company | | | | | |
| | | 0.450%, 12/01/2015 | | 100,000 | | | 99,601 |
| | | | | | | | 722,480 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Chemical Manufacturing — 4.15% | | | | | |
| 031162AJ9 | | Amgen Inc. | | | | | |
| | | 4.850%, 11/18/2014 | $ | 140,000 | | $ | 147,862 |
| 19416QDQ0 | | Colgate-Palmolive Company | | | | | |
| | | 1.375%, 11/01/2015 | | 150,000 | | | 152,308 |
| | | Ecolab Inc. | | | | | |
| 278865AJ9 | | 2.375%, 12/08/2014 | | 125,000 | | | 127,530 |
| 278865AN0 | | 1.000%, 08/09/2015 | | 55,000 | | | 54,969 |
| 74005PAQ7 | | Praxair, Inc. | | | | | |
| | | 5.250%, 11/15/2014 | | 100,000 | | | 106,351 |
| 88166CAA6 | | Teva Pharmaceuticals Finance | | | | | |
| | | 3.000%, 06/15/2015 | | 100,000 | | | 103,957 |
| 983024AE0 | | Wyeth LLC | | | | | |
| | | 5.500%, 02/01/2014 | | 42,000 | | | 43,245 |
| | | | | | | | 736,222 |
| | | Computer and Electronic Product Manufacturing — 4.55% | | | | | |
| 22303QAK6 | | Covidien International Finance SA | | | | | |
| | | 2.800%, 06/15/2015 | | 100,000 | | | 103,551 |
| | | Hewlett-Packard Co. | | | | | |
| 428236AT0 | | 6.125%, 03/01/2014 | | 50,000 | | | 51,701 |
| 428236BC6 | | 2.125%, 09/13/2015 | | 100,000 | | | 101,263 |
| 459200HD6 | | IBM Corp. | | | | | |
| | | 0.750%, 05/11/2015 | | 100,000 | | | 100,355 |
| 585055AR7 | | Medtronic, Inc. | | | | | |
| | | 3.000%, 03/15/2015 | | 100,000 | | | 103,781 |
| 883556AS1 | | Thermo Fisher Scientific Inc. | | | | | |
| | | 3.200%, 05/01/2015 | | 140,000 | | | 144,615 |
| 902133AL1 | | Tyco Electronics Group SA | | | | | |
| | | 1.600%, 02/03/2015 | | 200,000 | | | 201,511 |
| | | | | | | | 806,777 |
| | | Credit Intermediation and Related Activities — 7.28% | | | | | |
| 0258M0CZ0 | | American Express Credit Corporation | | | | | |
| | | 5.125%, 08/25/2014 | | 100,000 | | | 104,837 |
| 06406HCD9 | | The Bank of New York Mellon Corporation | | | | | |
| | | 0.700%, 10/23/2015 | | 200,000 | | | 199,420 |
| 120568AM2 | | Bunge Limited Finance Corporation | | | | | |
| | | 5.350%, 04/15/2014 | | 115,000 | | | 118,572 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Credit Intermediation and Related Activities — 7.28% (Continued) | | | | | |
| 14040HAS4 | | Capital One Financial Corporation | | | | | |
| | | 7.375%, 05/23/2014 | $ | 100,000 | | $ | 105,709 |
| 14912L5B3 | | Caterpillar Financial Services Corporation | | | | | |
| | | 1.050%, 03/26/2015 | | 100,000 | | | 100,692 |
| 31677QAX7 | | Fifth Third Bank | | | | | |
| | | 0.900%, 02/26/2016 | | 150,000 | | | 148,045 |
| | | General Electric Capital Corp. | | | | | |
| 36966RS98 | | 5.450%, 06/15/2014 | | 10,000 | | | 10,407 |
| 36962G6M1 | | 1.000%, 12/11/2015 | | 200,000 | | | 199,821 |
| 24422ERQ4 | | John Deere Capital Corporation | | | | | |
| | | 0.875%, 04/17/2015 | | 100,000 | | | 100,458 |
| 69371RK62 | | PACCAR Financial Corporation | | | | | |
| | | 1.050%, 06/05/2015 | | 100,000 | | | 100,730 |
| 92976GAB7 | | Wachovia Bank NA | | | | | |
| | | 4.800%, 11/01/2014 | | 96,000 | | | 101,077 |
| | | | | | | | 1,289,768 |
| | | Food Manufacturing — 4.80% | | | | | |
| 205887BH4 | | ConAgra Foods, Inc. | | | | | |
| | | 1.350%, 09/10/2015^ | | 100,000 | | | 100,739 |
| 370334BN3 | | General Mills, Inc. | | | | | |
| | | 0.875%, 01/29/2016 | | 200,000 | | | 198,966 |
| 423074AL7 | | HJ Heinz Co. | | | | | |
| | | 2.000%, 09/12/2016 | | 150,000 | | | 147,000 |
| 487836BG2 | | Kellogg Company | | | | | |
| | | 1.125%, 05/15/2015 | | 200,000 | | | 200,952 |
| 50076QAK2 | | Kraft Foods Group Inc. | | | | | |
| | | 1.625%, 06/04/2015 | | 200,000 | | | 202,228 |
| | | | | | | | 849,885 |
| | | Funds, Trusts, and Other Financial Vehicles — 0.85% | | | | | |
| 65339KAC4 | | NextEra Energy Capital Holding Inc. | | | | | |
| | | 1.611%, 06/01/2014 | | 150,000 | | | 151,265 |
| | | General Merchandise Stores – 1.27% | | | | | |
| 22160KAD7 | | Costco Wholesale Corporation | | | | | |
| | | 0.650%, 12/07/2015^ | | 150,000 | | | 149,794 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | General Merchandise Stores – 1.27% (Continued) | | | | | |
| 931142CX9 | | Wal-Mart Stores, Inc. | | | | | |
| | | 1.500%, 10/25/2015^ | $ | 74,000 | | $ | 75,479 |
| | | | | | | | 225,273 |
| | | Health and Personal Care Stores — 1.72% | | | | | |
| 126650BT6 | | CVS Caremark Corporation | | | | | |
| | | 3.250%, 05/18/2015 | | 100,000 | | | 104,117 |
| 931422AG4 | | Walgreen Company | | | | | |
| | | 1.000%, 03/13/2015 | | 200,000 | | | 200,714 |
| | | | | | | | 304,831 |
| | | Insurance Carriers and Related Activities — 2.31% | | | | | |
| 74432QAE5 | | Prudential Financial, Inc. | | | | | |
| | | 5.100%, 09/20/2014 | | 100,000 | | | 105,111 |
| 91324PBX9 | | UnitedHealth Group Inc. | | | | | |
| | | 0.850%, 10/15/2015^ | | 100,000 | | | 100,187 |
| | | WellPoint, Inc. | | | | | |
| 94973VAQ0 | | 6.000%, 02/15/2014 | | 100,000 | | | 103,276 |
| 94973VAZ0 | | 1.250%, 09/10/2015 | | 100,000 | | | 100,221 |
| | | | | | | | 408,795 |
| | | Management of Companies and Enterprises — 0.57% | | | | | |
| 38141GDQ4 | | The Goldman Sachs Group, Inc. | | | | | |
| | | 5.250%, 10/15/2013 | | 100,000 | | | 101,241 |
| | | Merchant Wholesalers, Nondurable Goods — 1.70% | | | | | |
| 30219GAB4 | | Express Scripts Holding Company | | | | | |
| | | 2.100%, 02/12/2015 | | 100,000 | | | 101,739 |
| 581557AY1 | | McKesson Corp. | | | | | |
| | | 0.950%, 12/04/2015 | | 200,000 | | | 199,584 |
| | | | | | | | 301,323 |
| | | Mining (except Oil and Gas) — 1.13% | | | | | |
| 067901AE8 | | Barrick Gold Corporation | | | | | |
| | | 1.750%, 05/30/2014 | | 100,000 | | | 100,125 |
| 76720AAA4 | | Rio Tinto Financial USA PLC | | | | | |
| | | 1.125%, 03/20/2015 | | 100,000 | | | 100,032 |
| | | | | | | | 200,157 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Miscellaneous Manufacturing — 0.95% | | | | | |
| 067383AB5 | | CR Bard, Inc. | | | | | |
| | | 2.875%, 01/15/2016 | $ | 150,000 | | $ | 156,024 |
| 418056AR8 | | Hasbro, Inc. | | | | | |
| | | 6.125%, 05/15/2014 | | 12,000 | | | 12,544 |
| | | | | | | | 168,568 |
| | | Motor Vehicle and Parts Dealers — 0.58% | | | | | |
| 053332AH5 | | Autozone, Inc. | | | | | |
| | | 6.500%, 01/15/2014 | | 100,000 | | | 103,023 |
| | | Non-Store Retailers — 1.92% | | | | | |
| 023135AK2 | | Amazon.com, Inc. | | | | | |
| | | 0.650%, 11/27/2015 | | 200,000 | | | 199,491 |
| 278642AD5 | | eBay, Inc. | | | | | |
| | | 0.700%, 07/15/2015 | | 140,000 | | | 140,234 |
| | | | | | | | 339,725 |
| | | Oil and Gas Extraction — 1.30% | | | | | |
| 136385AQ4 | | Canadian Natural Resources Ltd. | | | | | |
| | | 1.450%, 11/14/2014 | | 130,000 | | | 131,096 |
| 565849AJ5 | | Marathon Oil Corporation | | | | | |
| | | 0.900%, 11/01/2015 | | 100,000 | | | 99,502 |
| | | | | | | | 230,598 |
| | | Other Information Services — 1.30% | | | | | |
| 38259PAC6 | | Google Inc. | | | | | |
| | | 2.125%, 05/19/2016 | | 222,000 | | | 229,584 |
| | | Paper Manufacturing — 0.36% | | | | | |
| 460146CB7 | | International Paper Co. | | | | | |
| | | 7.400%, 06/15/2014^ | | 60,000 | | | 63,481 |
| | | Pharmaceutical and Biotechnology — 2.00% | | | | | |
| 377372AG2 | | GlaxoSmithKline Capital Inc. | | | | | |
| | | 0.700%, 03/18/2016^ | | 200,000 | | | 198,298 |
| 53217VAD1 | | Life Technologies Corporation | | | | | |
| | | 3.500%, 01/15/2016 | | 150,000 | | | 156,213 |
| | | | | | | | 354,511 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Pipeline Transportation — 0.59% | | | | | |
| 96950FAB0 | | Williams Partners LP | | | | | |
| | | 3.800%, 02/15/2015 | $ | 100,000 | | $ | 104,302 |
| | | Publishing Industries (except Internet) — 2.02% | | | | | |
| 00724FAA9 | | Adobe Systems, Inc. | | | | | |
| | | 3.250%, 02/01/2015 | | 100,000 | | | 103,661 |
| 871503AG3 | | Symantec Corp. | | | | | |
| | | 2.750%, 09/15/2015 | | 150,000 | | | 154,743 |
| 884903BL8 | | Thomson Reuters Corporation | | | | | |
| | | 0.875%, 05/23/2016 | | 100,000 | | | 99,082 |
| | | | | | | | 357,486 |
| | | Securities, Commodity Contracts, and Other Financial | | | | | |
| | | Investments and Related Activities — 1.64% | | | | | |
| 472319AD4 | | Jefferies Group LLC | | | | | |
| | | 5.875%, 06/08/2014 | | 150,000 | | | 156,375 |
| 59018SN83 | | Merrill Lynch & Co. | | | | | |
| | | 0.995%, 08/30/2013g | | 33,000 | | | 32,964 |
| 61747WAD1 | | Morgan Stanley | | | | | |
| | | 2.875%, 01/24/2014 | | 100,000 | | | 101,053 |
| | | | | | | | 290,392 |
| | | Telecommunications — 1.68% | | | | | |
| 00206RBL5 | | AT&T, Inc. | | | | | |
| | | 0.800%, 12/01/2015^ | | 200,000 | | | 199,205 |
| 92857WBA7 | | Vodafone Group PLC | | | | | |
| | | 0.900%, 02/19/2016 | | 100,000 | | | 98,410 |
| | | | | | | | 297,615 |
| | | Transportation Equipment Manufacturing — 1.13% | | | | | |
| 89233P6J0 | | Toyota Motor Credit Corp. | | | | | |
| | | 0.875%, 07/17/2015 | | 200,000 | | | 200,800 |
| | | Utilities — 2.03% | | | | | |
| 693304AN7 | | PECO Energy Company | | | | | |
| | | 5.000%, 10/01/2014 | | 52,000 | | | 54,720 |
| 843646AF7 | | Southern Power Company | | | | | |
| | | 4.875%, 07/15/2015^ | | 100,000 | | | 107,219 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Utilities — 2.03% (Continued) | | | | | |
| 98389BAP5 | | Xcel Energy, Inc. | | | | | |
| | | 0.750%, 05/09/2016 | $ | 200,000 | | $ | 197,102 |
| | | | | | | | 359,041 |
| | | Waste Management and Remediation Services — 0.61% | | | | | |
| 94106LAT6 | | Waste Management, Inc. | | | | | |
| | | 6.375%, 03/11/2015 | | 100,000 | | | 108,983 |
| | | TOTAL CORPORATE BONDS | | | | | |
| | | (cost $10,184,221) | | | | | 10,129,969 |
| | | | | | | | |
| | | U.S. GOVERNMENT AGENCY ISSUES — 5.30%1 | | | | | |
| | | U.S. Government Agency Issues — 5.30% | | | | | |
| | | Federal Home Loan Banks | | | | | |
| 313371ZY5 | | 1.875%, 12/11/2015 | | 175,000 | | | 180,946 |
| 313375RN9 | | 1.000%, 03/11/2016 | | 200,000 | | | 202,104 |
| 3134G3J50 | | Federal Home Loan Mortgage Corporation | | | | | |
| | | 0.495%, 09/10/2015# | | 300,000 | | | 299,784 |
| 31398A4K5 | | Federal National Mortgage Association | | | | | |
| | | 1.875%, 10/15/2015 | | 250,000 | | | 257,165 |
| | | TOTAL U.S. GOVERNMENT AGENCY ISSUES | | | | | |
| | | (cost $943,145) | | | | | 939,999 |
| | | | | | | | |
| | | EXCHANGE TRADED FUNDS — 20.67% | | Shares | | | |
| | | Funds, Trusts, and Other Financial Vehicles — 20.67% | | | | | |
| CSJ | | iShares Barclays 1-3 Year Credit Bond ETF | | 26,000 | | | 2,730,780 |
| MINT | | PIMCO Enhanced Short Maturity ETF^ | | 1,950 | | | 197,476 |
| SCPB | | SPDR Barclays Short Term Corporate Bond ETF# | | 24,000 | | | 734,400 |
| | | TOTAL EXCHANGE TRADED FUNDS | | | | | |
| | | (cost $3,680,408) | | | | | 3,662,656 |
| | | | | | | | |
| | | WARRANTS — 0.01% | | | | | |
| | | Utilities — 0.01% | | | | | |
| CHC/WS | | China Hydroelectric Corporation | | | | | |
| | | Expiration Date: 1/25/2014 | | | | | |
| | | Exercise Price: $15.00* | | 40,000 | | | 1,200 |
| | | TOTAL WARRANTS | | | | | |
| | | (cost $48,000) | | | | | 1,200 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | SHORT-TERM INVESTMENTS — 8.26% | | Amount | | | Value |
| | | Commercial Paper — 4.23% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 750,000 | | $ | 750,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 4.03% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — | | | | | |
| | | Class I, 0.01%b | | 713,320 | | | 713,320 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $1,463,320) | | | | | 1,463,320 |
| | | | | | | | |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS FROM | | | | | |
| | | SECURITIES LENDING — 7.67% | | | | | |
| | | Money Market Funds — 7.67% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b. | | 1,358,632 | | | 1,358,632 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $1,358,632) | | | | | 1,358,632 |
| | | TOTAL INVESTMENTS – 100.44% | | | | | |
| | | (cost $17,917,083) | | | | $ | 17,796,136 |
_________________________
Percentages are stated as a percent of net assets.
| # — | All or a portion of the shares have been committed as collateral for written option contracts. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $1,323,456 at June 30, 2013. |
| * — | Non-income producing security. |
g — | The rate shown is the purchased yield on a zero coupon bond. |
1 — | The obligations of certain U.S. Government-Sponsored entities are neither issued nor guaranteed by the United States Treasury. |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
ETF — Exchange Traded Fund.
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | CONVERTIBLE BONDS — 44.62% | | Amount | | | Value |
| | | Administrative and Support Services — 5.29% | | | | | |
| | | WebMD Health Corporation | | | | | |
| 94770VAH5 | | 2.250%, 03/31/2016# | $ | 400,000 | | $ | 394,000 |
| 94770VAF9 | | 2.500%, 01/31/2018# | | 4,875,000 | | | 4,533,750 |
| | | | | | | | 4,927,750 |
| | | Computer and Electronic Product Manufacturing — 3.28% | | | | | |
| 502413AW7 | | L-3 Communications Holdings, Inc. | | | | | |
| | | 3.000%, 08/01/2035# | | 2,450,000 | | | 2,503,594 |
| 747906AH8 | | Quantum Corporation | | | | | |
| | | 4.500%, 11/15/2017, Acquired 10/26/2012 at $500,000■ | | 500,000 | | | 552,187 |
| | | | | | | | 3,055,781 |
| | | Holding Company — 3.66% | | | | | |
| 451102AB3 | | Icahn Enterprises LP | | | | | |
| | | 4.000%, 08/15/2013# | | 3,400,000 | | | 3,405,100 |
| | | Mining (except Oil and Gas) — 5.26% | | | | | |
| 250669AA6 | | Detour Gold Corporation | | | | | |
| | | 5.500%, 11/30/2017 | | 1,000,000 | | | 887,500 |
| B7W1RP3 | | Kirkland Lake Gold Inc. | | | | | |
| | | 6.000%, 06/30/2017CAD | | 350,000 | | | 249,629 |
| 608753AA7 | | Molycorp Inc. | | | | | |
| | | 3.250%, 06/15/2016# | | 1,500,000 | | | 1,011,562 |
| 780287AA6 | | Royal Gold, Inc. | | | | | |
| | | 2.875%, 06/15/2019 | | 3,014,000 | | | 2,744,624 |
| | | | | | | | 4,893,315 |
| | | Nonmetallic Mineral Product Manufacturing — 5.65% | | | | | |
| 69073TAQ6 | | Owens-Brockway Glass Container | | | | | |
| | | 3.000%, 06/01/2015, Acquired 7/6/2011-3/15/2013 | | | | | |
| | | at $5,151,373#■ | | 5,170,000 | | | 5,260,475 |
| | | Oil and Gas Extraction — 7.14% | | | | | |
| | | Arcan Resources Ltd. | | | | | |
| B4MT4X3 | | 6.250%, 02/28/2016# CAD | | 1,719,000 | | | 1,103,285 |
| B57ZB98 | | 6.500%, 10/31/2018# CAD | | 2,592,000 | | | 1,515,718 |
| | | Chesapeake Energy Corporation | | | | | |
| 165167BW6 | | 2.750%, 11/15/2035# | | 650,000 | | | 648,375 |
| 165167CB1 | | 2.250%, 12/15/2038^ | | 3,830,000 | | | 3,375,187 |
| | | | | | | | 6,642,565 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Performing Arts, Spectator Sports, and Related Industries — 3.01% | | | | | |
| 538034AB5 | | Live Nation Entertainment, Inc. | | | | | |
| | | 2.875%, 07/15/2027# | $ | 2,763,000 | | $ | 2,802,718 |
| | | Personal and Laundry Services — 1.64% | | | | | |
| 758932AA5 | | Regis Corporation | | | | | |
| | | 5.000%, 07/15/2014 | | 1,303,000 | | | 1,524,510 |
| | | Primary Metal Manufacturing — 2.75% | | | | | |
| 03938LAK0 | | ArcelorMittal | | | | | |
| | | 5.000%, 05/15/2014 | | 2,500,000 | | | 2,556,250 |
| | | Publishing Industries (except Internet) — 4.22% | | | | | |
| 285512AA7 | | Electronic Arts, Inc. | | | | | |
| | | 0.750%, 07/15/2016 | | 3,750,000 | | | 3,923,438 |
| | | Real Estate — 091% | | | | | |
| 029169AA7 | | American Real Estate | | | | | |
| | | 4.000%, 08/15/2013, Acquired 6/24/2011-10/26/2011 | | | | | |
| | | at $348,511#■ | | 350,000 | | | 350,525 |
| 345550AP2 | | Forest City Enterprises, Inc. | | | | | |
| | | 4.250%, 08/15/2018# | | 446,000 | | | 500,914 |
| | | | | | | | 851,439 |
| | | Transportation Equipment Manufacturing — 1.05% | | | | | |
| 63934EAL2 | | Navistar International Corp. | | | | | |
| | | 3.000%, 10/15/2014^ | | 1,000,000 | | | 976,250 |
| | | U.S. Equity Exchanges — 0.76% | | | | | |
| 631103AA6 | | The NASDAQ OMX Group, Inc. | | | | | |
| | | 2.500%, 08/15/2013 | | 705,000 | | | 707,644 |
| | | TOTAL CONVERTIBLE BONDS | | | | | |
| | | (cost $42,659,107 ) | | | | | 41,527,235 |
| | | | | | | | |
| | | CORPORATE BONDS — 16.77% | | | | | |
| | | Ambulatory Health Care Services — 3.05% | | | | | |
| 23918KAL2 | | DaVita Health Care Partners, Inc. | | | | | |
| | | 6.375%, 11/01/2018#^ | | 2,710,000 | | | 2,835,338 |
| | | General Merchandise Stores — 1.13% | | | | | |
| 708130AD1 | | J.C. Penney Company Inc. | | | | | |
| | | 5.650%, 06/01/2020 | | 1,250,000 | | | 1,050,000 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | Mining (except Oil and Gas) — 3.00% | | | | | |
| 20854PAD1 | | Consol Energy, Inc. | | | | | |
| | | 8.000%, 04/01/2017# | $ | 1,495,000 | | $ | 1,580,963 |
| | | Peabody Energy Corporation | | | | | |
| 704549AK0 | | 6.000%, 11/15/2018 | | 950,000 | | | 955,937 |
| 704549AH7 | | 6.500%, 09/15/2020# | | 250,000 | | | 251,875 |
| | | | | | | | 2,788,775 |
| | | Satellite Telecommunications — 3.25% | | | | | |
| 25470XAH8 | | DISH DBS Corp. | | | | | |
| | | 4.625%, 07/15/2017 | | 3,000,000 | | | 3,030,000 |
| | | Securities, Commodity Contracts, and Other Financial | | | | | |
| | | Investments and Related Activities — 3.30% | | | | | |
| 52107QAC9 | | Lazard Group LLC | | | | | |
| | | 7.125%, 05/15/2015# | | 67,000 | | | 72,785 |
| 683797AB0 | | Oppenheimer Holdings, Inc. | | | | | |
| | | 8.750%, 04/15/2018 | | 2,839,000 | | | 3,002,242 |
| | | | | | | | 3,075,027 |
| | | Utilities — 3.04% | | | | | |
| 131347BP0 | | Calpine Corp. | | | | | |
| | | 7.250%, 10/15/2017, Acquired 11/15/2011-4/13/2012 | | | | | |
| | | at $2,794,659#■ | | 2,700,000 | | | 2,828,250 |
| | | TOTAL CORPORATE BONDS | | | | | |
| | | (cost $15,696,238) | | | | | 15,607,390 |
| | | | | | | | |
| | | MUNICIPAL BONDS — 0.56% | | | | | |
| | | Air Transportation — 0.56% | | | | | |
| | | Branson Missouri Regional Airport Transportation | | | | | |
| | | Development District | | | | | |
| 105459AB7 | | 6.000%, 07/01/2025c | | 2,000,000 | | | 300,000 |
| 105459AC5 | | 6.000%, 07/01/2037c | | 1,500,000 | | | 225,000 |
| | | | | | | | 525,000 |
| | | TOTAL MUNICIPAL BONDS | �� | | | | |
| | | (cost $2,245,112) | | | | | 525,000 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | EXCHANGE TRADED FUNDS — 1.41% | | Shares | | | Value |
| | | Funds, Trusts, and Other Financial Vehicles — 1.41% | | | | | |
| BOND | | PIMCO Total Return ETF^ | | 12,400 | | $ | 1,307,952 |
| | | TOTAL EXCHANGE TRADED FUNDS | | | | | |
| | | (cost $1,318,860) | | | | | 1,307,952 |
| | | | | | | | |
| | | MUTUAL FUNDS — 2.03% | | | | | |
| | | Funds, Trusts, and Other Financial Vehicles — 2.03% | | | | | |
| DSL | | DoubleLine Income Solutions Fund | | 400 | | | 9,284 |
| HAV | | Helios Advantage Income Fund, Inc. | | 200 | | | 1,660 |
| HSA | | Helios Strategic Income Fund, Inc. | | 200 | | | 1,220 |
| TLI | | LMP Corporate Loan Fund Inc. | | 1,100 | | | 14,300 |
| MTS | | Montgomery Street Income Securities, Inc. | | 9,200 | | | 148,672 |
| JFR | | Nuveen Floating Rate Income Fund | | 200 | | | 2,520 |
| PCN | | PIMCO Corporate Income Fund | | 1,400 | | | 24,402 |
| PCI | | PIMCO Dynamic Credit Income Fund | | 18,000 | | | 412,380 |
| PDI | | PIMCO Dynamic Income Fund | | 22,200 | | | 649,350 |
| PKO | | PIMCO Income Opportunity Fund | | 4,200 | | | 120,120 |
| PFL | | PIMCO Income Strategy Fund | | 2,800 | | | 33,488 |
| PFN | | PIMCO Income Strategy Fund II | | 2,400 | | | 25,248 |
| DMO | | Western Asset Mortgage Defined Opportunity Fund Inc. | | 19,400 | | | 448,528 |
| | | TOTAL MUTUAL FUNDS | | | | | |
| | | (cost $2,043,421) | | | | | 1,891,172 |
| | | | | | | | |
| | | | | Principal | | | |
| | | SHORT-TERM INVESTMENTS — 6.13% | | Amount | | | |
| | | Commercial Paper — 2.26% | | | | | |
| 035018925 | | U.S. Bank N.A., 0.02%, 07/01/2013 | $ | 2,100,000 | | | 2,100,000 |
| | | | | | | | |
| | | | | Shares | | | |
| | | Money Market Funds — 2.26% | | | | | |
| FIGXX | | Fidelity Institutional Government Portfolio — Class I, 0.01%b | | 2,100,000 | | | 2,100,000 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Investments — June 30, 2013 (Unaudited) — (Continued) |
| | | | | Principal | | | |
| Identifier | | | | Amount | | | Value |
| | | U.S. Treasury Obligations — 1.61% | | | | | |
| 912796AT6 | | United States Treasury Bill | | | | | |
| | | Maturity Date: 7/18/2013, Yield to Maturity 0.01% | $ | 1,500,000 | | $ | 1,499,989 |
| | | TOTAL SHORT-TERM INVESTMENTS | | | | | |
| | | (cost $5,699,989) | | | | | 5,699,989 |
| | | INVESTMENTS PURCHASED WITH | | | | | |
| | | THE CASH PROCEEDS FROM | | | | | |
| | | SECURITIES LENDING — 1.57% | | Shares | | | |
| | | Money Market Funds — 1.57% | | | | | |
| | | Mount Vernon Securities Lending Trust — Prime | | | | | |
| | | Portfolio, 0.19%b | | 1,462,640 | | | 1,462,640 |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH | | | | | |
| | | PROCEEDS FROM SECURITIES LENDING | | | | | |
| | | (cost $1,462,640) | | | | | 1,462,640 |
| | | TOTAL INVESTMENTS – 73.09% | | | | | |
| | | (cost $71,125,367) | | | | $ | 68,021,378 |
_____________________________
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ^ — | This security or a portion of this security was out on loan at June 30, 2013. Total loaned securities had a market value of $1,438,865 at June 30, 2013. |
| # — | All or a portion of the shares have been committed as collateral for written option contracts. |
■ — | Restricted security restricted to institutional investors (144a securities); the percentage of net assets comprised of 144a securities was 9.66%. |
c — | The security missed January 1, 2012 interest payment and has ceased to accrue income. A forbearance agreement is currently in place. |
b — | The rate quoted is the annualized seven-day yield as of June 30, 2013. |
CAD — Canadian Dollars.
ETF — Exchange Traded Fund.
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) |
| Identifier | | PUT OPTIONS WRITTEN | | Contracts | * | | Value |
| | | Accommodation | | | | | |
| | | Carnival Corporation | | | | | |
| CCL 140118P00024500 | | Expiration: January 2014, Exercise Price: $24.50 | | 13 | | $ | 487 |
| CCL 140118P00029500 | | Expiration: January 2014, Exercise Price: $29.50 | | 10 | | | 1,075 |
| CCL 150117P00024500 | | Expiration: January 2015, Exercise Price: $24.50 | | 33 | | | 4,950 |
| | | Starwood Hotels & Resorts Worldwide, Inc. | | | | | |
| HOT 140118P00038000 | | Expiration: January 2014, Exercise Price: $38.00 | | 15 | | | 623 |
| HOT 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 2,092 |
| | | | | | | | 9,227 |
| | | Administrative and Support Services | | | | | |
| | | Accenture PLC — Class A | | | | | |
| ACN 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 10 | | | 500 |
| ACN 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 10 | | | 1,975 |
| | | Expedia, Inc. | | | | | |
| EXPE 140118P00034480 | | Expiration: January 2014, Exercise Price: $34.48 | | 15 | | | 525 |
| EXPE 150117P00034480 | | Expiration: January 2015, Exercise Price: $34.48 | | 15 | | | 3,338 |
| | | Priceline.com Inc. | | | | | |
| PCLN 150117P00410000 | | Expiration: January 2015, Exercise Price: $410.00 | | 1 | | | 990 |
| | | | | | | | 7,328 |
| | | Apparel Manufacturing | | | | | |
| | | L Brands, Inc. | | | | | |
| LTD 140118P00032000 | | Expiration: January 2014, Exercise Price: $32.00 | | 11 | | | 385 |
| LTD 150117P00032000 | | Expiration: January 2015, Exercise Price: $32.00 | | 11 | | | 1,787 |
| | | | | | | | 2,172 |
| | | Asset Management | | | | | |
| | | The Blackstone Group LP | | | | | |
| BX 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 30 | | | 1,335 |
| BX 150117P00012000 | | Expiration: January 2015, Exercise Price: $12.00 | | 30 | | | 2,670 |
| | | KKR & Co. LP | | | | | |
| KKR 150117P00013000 | | Expiration: January 2015, Exercise Price: $13.00 | | 50 | | | 4,125 |
| | | Legg Mason, Inc. | | | | | |
| LM 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 25 | | | 1,875 |
| | | | | | | | 10,005 |
| | | Beverage and Tobacco Product Manufacturing | | | | | |
| | | The Coca-Cola Company | | | | | |
| KO 140222P00034000 | | Expiration: February 2014, Exercise Price: $34.00 | | 5 | | | 345 |
| KO 150117P00032500 | | Expiration: January 2015, Exercise Price: $32.50 | | 5 | | | 930 |
| KO 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 8 | | | 2,096 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts | * | | Value |
| | | Beverage and Tobacco Product Manufacturing — (Continued) | | | | | |
| | | Constellation Brands, Inc. — Class A | | | | | |
| STZ 140118P00032500 | | Expiration: January 2014, Exercise Price: $32.50 | | 5 | | $ | 50 |
| STZ 150117P00022500 | | Expiration: January 2015, Exercise Price: $22.50 | | 20 | | | 700 |
| STZ 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 5 | | | 500 |
| | | Molson Coors Brewing Company — Class B | | | | | |
| TAP 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 9 | | | 495 |
| TAP 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 6 | | | 795 |
| TAP 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 23 | | | 4,312 |
| | | Philip Morris International, Inc. | | | | | |
| PM 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 5 | | | 575 |
| PM 140118P00072500 | | Expiration: January 2014, Exercise Price: $72.50 | | 10 | | | 1,505 |
| PM 150117P00075000 | | Expiration: January 2015, Exercise Price: $75.00 | | 5 | | | 3,125 |
| | | | | | | | 15,428 |
| | | Broadcasting (except Internet) | | | | | |
| | | CBS Corporation — Class B | | | | | |
| CBS 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 13 | | | 163 |
| CBS 140118P00032000 | | Expiration: January 2014, Exercise Price: $32.00 | | 20 | | | 800 |
| CBS 150117P00025000 | | Expiration: January 2015, Exercise Price: $25.00 | | 13 | | | 1,105 |
| | | Comcast Corporation — Class A | | | | | |
| CMCSA 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 11 | | | 446 |
| CMCSA 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 5 | | | 485 |
| CMCSA 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 29 | | | 3,581 |
| | | Time Warner Inc. | | | | | |
| TWX 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 15 | | | 1,200 |
| | | Viacom Inc. — Class B | | | | | |
| VIAB 140118P00047000 | | Expiration: January 2014, Exercise Price: $47.00 | | 10 | | | 450 |
| VIAB 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 5 | | | 475 |
| VIAB 150117P00038000 | | Expiration: January 2015, Exercise Price: $38.00 | | 15 | | | 2,250 |
| | | The Walt Disney Company | | | | | |
| DIS 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 10 | | | 570 |
| DIS 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 5 | | | 520 |
| DIS 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 1,402 |
| | | | | | | | 13,447 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Building Equipment Contractors | | | | | |
| | | Honeywell International Inc. | | | | | |
| HON 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 10 | | $ | 855 |
| HON 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 5 | | | 522 |
| HON 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 12 | | | 1,224 |
| | | | | | | | 2,601 |
| | | Building Material and Garden Equipment and Supplies Dealers | | | | | |
| | | Fastenal Company | | | | | |
| FAST 140118P00033000 | | Expiration: January 2014, Exercise Price: $33.00 | | 5 | | | 313 |
| FAST 140118P00039500 | | Expiration: January 2014, Exercise Price: $39.50 | | 8 | | | 1,400 |
| FAST 150117P00032500 | | Expiration: January 2015, Exercise Price: $32.50 | | 15 | | | 3,112 |
| FAST 150117P00034500 | | Expiration: January 2015, Exercise Price: $34.50 | | 10 | | | 2,550 |
| | | The Home Depot, Inc. | | | | | |
| HD 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 5 | | | 372 |
| HD 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 20 | | | 4,130 |
| | | Lowe’s Companies, Inc. | | | | | |
| LOW 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 20 | | | 280 |
| LOW 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 5 | | | 140 |
| LOW 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 5 | | | 243 |
| LOW 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 1,720 |
| LOW 150117P00025000 | | Expiration: January 2015, Exercise Price: $25.00 | | 5 | | | 565 |
| LOW 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 5 | | | 1,047 |
| | | The Sherwin-Williams Company | | | | | |
| SHW 140118P00125000 | | Expiration: January 2014, Exercise Price: $125.00 | | 5 | | | 750 |
| SHW 140118P00150000 | | Expiration: January 2014, Exercise Price: $150.00 | | 2 | | | 920 |
| SHW 150117P00150000 | | Expiration: January 2015, Exercise Price: $150.00 | | 2 | | | 2,590 |
| | | | | | | | 20,132 |
| | | Chemical Manufacturing | | | | | |
| | | Amgen Inc. | | | | | |
| AMGN 140118P00067500 | | Expiration: January 2014, Exercise Price: $67.50 | | 10 | | | 815 |
| AMGN 140118P00077500 | | Expiration: January 2014, Exercise Price: $77.50 | | 5 | | | 878 |
| AMGN 150117P00060000 | | Expiration: January 2015, Exercise Price: $60.00 | | 10 | | | 2,215 |
| | | Celgene Corporation | | | | | |
| CELG 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 10 | | | 405 |
| CELG 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 10 | | | 2,385 |
| | | The Dow Chemical Company | | | | | |
| DOW 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 25 | | | 663 |
| DOW 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 9 | | | 427 |
| DOW 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 10 | | | 695 |
| DOW 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 29 | | | 3,016 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Chemical Manufacturing — (Continued) | | | | | |
| | | E.I. du Pont de Nemours & Comapny | | | | | |
| DD 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 5 | | $ | 310 |
| DD 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 20 | | | 1,600 |
| DD 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 10 | | | 1,365 |
| | | Eastman Chemical Company | | | | | |
| EMN 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 10 | | | 700 |
| EMN 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 5 | | | 700 |
| EMN 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 10 | | | 2,750 |
| | | Monsanto Company | | | | | |
| MON 140118P00080000 | | Expiration: January 2014, Exercise Price: $80.00 | | 4 | | | 788 |
| MON 140118P00082500 | | Expiration: January 2014, Exercise Price: $82.50 | | 5 | | | 1,207 |
| MON 150117P00075000 | | Expiration: January 2015, Exercise Price: $75.00 | | 10 | | | 4,675 |
| | | The Mosaic Company | | | | | |
| MOS 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | | 608 |
| MOS 140118P00042500 | | Expiration: January 2014, Exercise Price: $42.50 | | 5 | | | 585 |
| MOS 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 5 | | | 835 |
| MOS 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 2,527 |
| | | The Procter & Gamble Company | | | | | |
| PG 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 10 | | | 2,405 |
| | | | | | | | 32,554 |
| | | Clothing and Clothing Accessories Stores | | | | | |
| | | The Gap, Inc. | | | | | |
| GPS 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 20 | | | 710 |
| | | Nordstrom, Inc. | | | | | |
| JWN 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | | 255 |
| JWN 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 1,875 |
| | | Tiffany & Co. | | | | | |
| TIF 140118P00042500 | | Expiration: January 2014, Exercise Price: $42.50 | | 10 | | | 295 |
| TIF 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 3 | | | 120 |
| TIF 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 5 | | | 490 |
| TIF 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 13 | | | 2,444 |
| | | | | | | | 6,189 |
| | | Computer and Electronic Product Manufacturing | | | | | |
| | | Agilent Technologies, Inc. | | | | | |
| A 140118P00028000 | | Expiration: January 2014, Exercise Price: $28.00 | | 20 | | | 750 |
| A 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 10 | | | 1,110 |
| A 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 20 | | | 2,910 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Computer and Electronic Product Manufacturing — (Continued) | | | | | |
| | | Altera Corporation | | | | | |
| ALTR 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 20 | | $ | 800 |
| ALTR 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 3,000 |
| | | Apple, Inc. | | | | | |
| AAPL 140118P00320000 | | Expiration: January 2014, Exercise Price: $320.00 | | 1 | | | 853 |
| AAPL 140118P00350000 | | Expiration: January 2014, Exercise Price: $350.00 | | 2 | | | 3,180 |
| AAPL 150117P00350000 | | Expiration: January 2015, Exercise Price: $350.00 | | 1 | | | 4,275 |
| | | Broadcom Corporation — Class A | | | | | |
| BRCM 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 20 | | | 630 |
| BRCM 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 2,690 |
| | | Cisco Systems, Inc. | | | | | |
| CSCO 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 30 | | | 960 |
| CSCO 150117P00013000 | | Expiration: January 2015, Exercise Price: $13.00 | | 35 | | | 1,347 |
| | | EMC Corporation | | | | | |
| EMC 150117P00018000 | | Expiration: January 2015, Exercise Price: $18.00 | | 27 | | | 3,253 |
| | | International Business Machines Corporation | | | | | |
| IBM 140621P00150000 | | Expiration: June 2014, Exercise Price: $150.00 | | 2 | | | 840 |
| IBM 150117P00160000 | | Expiration: January 2015, Exercise Price: $160.00 | | 5 | | | 4,988 |
| | | QUALCOMM Inc. | | | | | |
| QCOM 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 15 | | | 1,620 |
| QCOM 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 5 | | | 760 |
| QCOM 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 10 | | | 2,355 |
| | | Sony Corporation | | | | | |
| SNE 140118P00014000 | | Expiration: January 2014, Exercise Price: $14.00 | | 30 | | | 975 |
| SNE 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 20 | | | 1,000 |
| SNE 150117P00012000 | | Expiration: January 2015, Exercise Price: $12.00 | | 10 | | | 800 |
| SNE 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 20 | | | 3,300 |
| | | St. Jude Medical, Inc. | | | | | |
| STJ 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 10 | | | 350 |
| STJ 140118P00032500 | | Expiration: January 2014, Exercise Price: $32.50 | | 10 | | | 450 |
| STJ 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 1,150 |
| STJ 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 10 | | | 1,375 |
| | | Texas Instruments Inc. | | | | | |
| TXN 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 25 | | | 325 |
| TXN 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 25 | | | 1,675 |
| | | | | | | | 47,721 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Construction of Buildings | | | | | |
| | | Lennar Corporation — Class A | | | | | |
| LEN 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 20 | | $ | 2,280 |
| LEN 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 5 | | | 937 |
| LEN 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 8 | | | 1,428 |
| LEN 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 20 | | | 6,750 |
| | | | | | | | 11,395 |
| | | Couriers and Messengers | | | | | |
| | | FedEx Corp. | | | | | |
| FDX 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 7 | | | 2,170 |
| FDX 150117P00082500 | | Expiration: January 2015, Exercise Price: $82.50 | | 7 | | | 4,375 |
| | | | | | | | 6,545 |
| | | Credit Intermediation and Related Activities | | | | | |
| | | American Express Company | | | | | |
| AXP 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 10 | | | 270 |
| AXP 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 3 | | | 167 |
| AXP 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 5 | | | 335 |
| AXP 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 10 | | | 1,085 |
| AXP 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 3 | | | 678 |
| | | Bank of America Corporation | | | | | |
| BAC 140222P00010000 | | Expiration: February 2014, Exercise Price: $10.00 | | 20 | | | 620 |
| BAC 150117P00007000 | | Expiration: January 2015, Exercise Price: $7.00 | | 70 | | | 1,855 |
| | | The Bank of New York Mellon Corporation | | | | | |
| BK 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 25 | | | 587 |
| BK 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 12 | | | 432 |
| BK 150117P00018000 | | Expiration: January 2015, Exercise Price: $18.00 | | 25 | | | 2,200 |
| BK 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 10 | | | 1,295 |
| | | Capital One Financial Corporation | | | | | |
| COF 140118P00038000 | | Expiration: January 2014, Exercise Price: $38.00 | | 15 | | | 638 |
| COF 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 2,167 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Credit Intermediation and Related Activities — (Continued) | | | | | |
| | | Citigroup Inc. | | | | | |
| C 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 15 | | $ | 368 |
| C 140118P00032000 | | Expiration: January 2014, Exercise Price: $32.00 | | 10 | | | 495 |
| C 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 15 | | | 1,747 |
| | | U.S. Bancorp | | | | | |
| USB 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 40 | | | 1,360 |
| | | Wells Fargo & Company | | | | | |
| WFC 140118P00028000 | | Expiration: January 2014, Exercise Price: $28.00 | | 30 | | | 945 |
| WFC 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 1,340 |
| | | | | | | | 18,584 |
| | | Data Processor | | | | | |
| | | MasterCard, Inc. — Class A | | | | | |
| MA 150117P00390000 | | Expiration: January 2015, Exercise Price: $390.00 | | 1 | | | 1,700 |
| MA 150117P00400000 | | Expiration: January 2015, Exercise Price: $400.00 | | 2 | | | 3,740 |
| | | Visa, Inc. — Class A | | | | | |
| V 140118P00130000 | | Expiration: January 2014, Exercise Price: $130.00 | | 10 | | | 1,515 |
| V 150117P00135000 | | Expiration: January 2015, Exercise Price: $135.00 | | 5 | | | 4,100 |
| | | | | | | | 11,055 |
| | | E-Commerce | | | | | |
| | | IAC/InterActiveCorp | | | | | |
| IACI 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 10 | | | 425 |
| IACI 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 10 | | | 1,700 |
| | | | | | | | 2,125 |
| | | Electrical Equipment, Appliance, and | | | | | |
| | | Component Manufacturing | | | | | |
| | | Corning Inc. | | | | | |
| GLW 150117P00008000 | | Expiration: January 2015, Exercise Price: $8.00 | | 60 | | | 1,890 |
| | | Emerson Electric Co. | | | | | |
| EMR 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 5 | | | 600 |
| EMR 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 10 | | | 3,800 |
| | | Whirlpool Corporation | | | | | |
| WHR 140118P00067500 | | Expiration: January 2014, Exercise Price: $67.50 | | 5 | | | 473 |
| WHR 150117P00070000 | | Expiration: January 2015, Exercise Price: $70.00 | | 5 | | | 2,750 |
| | | | | | | | 9,513 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Electronics and Appliance Stores | | | | | |
| | | Best Buy Co., Inc. | | | | | |
| BBY 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 20 | | $ | 1,200 |
| | | Fabricated Metal Product Manufacturing | | | | | |
| | | Danaher Corporation | | | | | |
| DHR 140118P00047000 | | Expiration: January 2014, Exercise Price: $47.00 | | 10 | | | 550 |
| DHR 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 10 | | | 2,675 |
| | | McDermott International, Inc. | | | | | |
| MDR 140118P00008000 | | Expiration: January 2014, Exercise Price: $8.00 | | 80 | | | 7,200 |
| MDR 150117P00008000 | | Expiration: January 2015, Exercise Price: $8.00 | | 30 | | | 4,725 |
| | | Parker Hannifin Corporation | | | | | |
| PH 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00 | | 10 | | | 1,900 |
| | | | | | | | 17,050 |
| | | Food Manufacturing | | | | | |
| | | Archer-Daniels-Midland Company | | | | | |
| ADM 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 30 | | | 1,665 |
| ADM 150117P00027000 | | Expiration: January 2015, Exercise Price: $27.00 | | 20 | | | 3,780 |
| | | | | | | | 5,445 |
| | | Food Services and Drinking Places | | | | | |
| | | Starbucks Corporation | | | | | |
| SBUX 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | | 203 |
| SBUX 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 5 | | | 395 |
| SBUX 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 1,237 |
| | | Yum! Brands, Inc. | | | | | |
| YUM 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 7 | | | 340 |
| YUM 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 5 | | | 612 |
| YUM 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 7 | | | 1,330 |
| YUM 150117P00047500 | | Expiration: January 2015, Exercise Price: $47.50 | | 10 | | | 2,345 |
| | | | | | | | 6,462 |
| | | Funds, Trusts, and Other Financial Vehicles | | | | | |
| | | CBRE Group, Inc. | | | | | |
| CBG 140118P00017000 | | Expiration: January 2014, Exercise Price: $17.00 | | 30 | | | 1,200 |
| CBG 150117P00017000 | | Expiration: January 2015, Exercise Price: $17.00 | | 7 | | | 962 |
| | | Market Vectors Gold Miners ETF | | | | | |
| GDX 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 20 | | | 2,680 |
| GDX 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 30 | | | 8,295 |
| | | | | | | | 13,137 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Gaming | | | | | |
| | | Las Vegas Sands Corp. | | | | | |
| LVS 140118P00030250 | | Expiration: January 2014, Exercise Price: $30.25 | | 15 | | $ | 690 |
| LVS 150117P00030250 | | Expiration: January 2015, Exercise Price: $30.25 | | 15 | | | 2,595 |
| | | Wynn Resorts Limited | | | | | |
| WYNN 140118P00080000 | | Expiration: January 2014, Exercise Price: $80.00 | | 5 | | | 373 |
| WYNN 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 5 | | | 580 |
| WYNN 150117P00080000 | | Expiration: January 2015, Exercise Price: $80.00 | | 5 | | | 1,650 |
| | | | | | | | 5,888 |
| | | General Merchandise Stores | | | | | |
| | | Family Dollar Stores, Inc. | | | | | |
| FDO 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 7 | | | 298 |
| FDO 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 10 | | | 675 |
| FDO 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 11 | | | 1,952 |
| | | J.C. Penney Company, Inc. | | | | | |
| JCP 140118P00008000 | | Expiration: January 2014, Exercise Price: $8.00 | | 100 | | | 1,850 |
| JCP 150117P00008000 | | Expiration: January 2015, Exercise Price: $8.00 | | 50 | | | 4,575 |
| | | Macy’s, Inc. | | | | | |
| M 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 1,090 |
| | | Wal-Mart Stores, Inc. | | | | | |
| WMT 150117P00062500 | | Expiration: January 2015, Exercise Price: $62.50 | | 5 | | | 1,587 |
| WMT 150117P00065000 | | Expiration: January 2015, Exercise Price: $65.00 | | 4 | | | 1,570 |
| | | | | | | | 13,597 |
| | | Health and Personal Care Stores | | | | | |
| | | CVS Caremark Corporation | | | | | |
| CVS 150117P00047000 | | Expiration: January 2015, Exercise Price: $47.00 | | 5 | | | 1,588 |
| | | Walgreen Company | | | | | |
| WAG 140118P00033000 | | Expiration: January 2014, Exercise Price: $33.00 | | 30 | | | 2,100 |
| WAG 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 5 | | | 468 |
| WAG 150117P00033000 | | Expiration: January 2015, Exercise Price: $33.00 | | 5 | | | 1,157 |
| WAG 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 5 | | | 1,420 |
| | | | | | | | 6,733 |
| | | Holding Company | | | | | |
| | | Leucadia National Corporation | | | | | |
| LUK2 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 20 | | | 2,200 |
| LUK2 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 33 | | | 2,228 |
| LUK2 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 20 | | | 4,500 |
| | | | | | | | 8,928 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Insurance Carriers and Related Activities | | | | | |
| | | Aflac, Inc. | | | | | |
| AFL 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | $ | 578 |
| AFL 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 2,010 |
| AFL 150117P00038000 | | Expiration: January 2015, Exercise Price: $38.00 | | 10 | | | 1,720 |
| | | American International Group, Inc. | | | | | |
| AIG 140118P00022000 | | Expiration: January 2014, Exercise Price: $22.00 | | 20 | | | 270 |
| AIG 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 10 | | | 505 |
| AIG 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 1,670 |
| | | Lincoln National Corporation | | | | | |
| LNC 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 25 | | | 400 |
| LNC 150117P00018000 | | Expiration: January 2015, Exercise Price: $18.00 | | 25 | | | 1,937 |
| | | MetLife, Inc. | | | | | |
| MET 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 25 | | | 350 |
| MET 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 10 | | | 240 |
| MET 140118P00028000 | | Expiration: January 2014, Exercise Price: $28.00 | | 10 | | | 350 |
| MET 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 25 | | | 1,375 |
| | | Prudential Financial, Inc. | | | | | |
| PRU 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | | 458 |
| PRU 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 1,747 |
| | | UnitedHealth Group Inc. | | | | | |
| UNH 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | | 300 |
| UNH 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 5 | | | 260 |
| UNH 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 1,680 |
| | | WellPoint, Inc. | | | | | |
| WLP 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 5 | | | 243 |
| WLP 150117P00047500 | | Expiration: January 2015, Exercise Price: $47.50 | | 15 | | | 2,692 |
| | | | | | | | 18,785 |
| | | Leather and Allied Product Manufacturing | | | | | |
| | | Coach, Inc. | | | | | |
| COH 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 9 | | | 563 |
| COH 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 9 | | | 2,587 |
| | | NIKE, Inc. — Class B | | | | | |
| NKE 140118P00042500 | | Expiration: January 2014, Exercise Price: $42.50 | | 8 | | | 324 |
| NKE 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 12 | | | 1,716 |
| NKE 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 13 | | | 2,301 |
| | | | | | | | 7,491 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Machinery Manufacturing | | | | | |
| | | Cameron International Corporation | | | | | |
| CAM 140118P00038000 | | Expiration: January 2014, Exercise Price: $38.00 | | 15 | | $ | 750 |
| CAM 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 15 | | | 3,637 |
| | | Caterpillar Inc. | | | | | |
| CAT 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 10 | | | 520 |
| CAT 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 10 | | | 2,475 |
| | | Cummins Inc. | | | | | |
| CMI 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00 | | 8 | | | 1,060 |
| CMI 150117P00075000 | | Expiration: January 2015, Exercise Price: $75.00 | | 8 | | | 4,440 |
| | | Deere & Company | | | | | |
| DE 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 10 | | | 550 |
| DE 140118P00067500 | | Expiration: January 2014, Exercise Price: $67.50 | | 5 | | | 885 |
| DE 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 10 | | | 2,485 |
| | | Eaton Corporation PLC | | | | | |
| ETN 150117P00038000 | | Expiration: January 2015, Exercise Price: $38.00 | | 20 | | | 3,350 |
| | | General Electric Company | | | | | |
| GE 140118P00017000 | | Expiration: January 2014, Exercise Price: $17.00 | | 20 | | | 460 |
| GE 150117P00018000 | | Expiration: January 2015, Exercise Price: $18.00 | | 50 | | | 5,375 |
| | | Illinois Tool Works Inc. | | | | | |
| ITW 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 12 | | | 300 |
| ITW 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 12 | | | 1,320 |
| | | Ingersoll-Rand PLC | | | | | |
| IR 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 15 | | | 225 |
| IR 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 15 | | | 1,425 |
| | | National Oilwell Varco, Inc. | | | | | |
| NOV 140222P00050000 | | Expiration: February 2014, Exercise Price: $50.00 | | 5 | | | 595 |
| NOV 150117P00047500 | | Expiration: January 2015, Exercise Price: $47.50 | | 5 | | | 1,490 |
| | | | | | | | 31,342 |
| | | Management of Companies and Enterprises | | | | | |
| | | The Goldman Sachs Group, Inc. | | | | | |
| GS 140118P00085000 | | Expiration: January 2014, Exercise Price: $85.00 | | 5 | | | 415 |
| GS 140118P00110000 | | Expiration: January 2014, Exercise Price: $110.00 | | 3 | | | 686 |
| GS 150117P00085000 | | Expiration: January 2015, Exercise Price: $85.00 | | 5 | | | 1,407 |
| | | JPMorgan Chase & Co. | | | | | |
| JPM 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 11 | | | 259 |
| JPM 140118P00037000 | | Expiration: January 2014, Exercise Price: $37.00 | | 10 | | | 525 |
| JPM 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 11 | | | 1,133 |
| | | | | | | | 4,425 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Merchant Wholesalers, Nondurable Goods | | | | | |
| | | Cardinal Health, Inc. | | | | | |
| CAH 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 8 | | $ | 760 |
| CAH 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 8 | | | 2,460 |
| | | Express Scripts Holding Company | | | | | |
| ESRX 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 15 | | | 1,305 |
| ESRX 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 12 | | | 1,902 |
| | | McKesson Corp. | | | | | |
| MCK 140118P00082500 | | Expiration: January 2014, Exercise Price: $82.50 | | 6 | | | 600 |
| MCK 150117P00085000 | | Expiration: January 2015, Exercise Price: $85.00 | | 5 | | | 2,100 |
| | | Ralph Lauren Corporation | | | | | |
| RL 140118P00105000 | | Expiration: January 2014, Exercise Price: $105.00 | | 5 | | | 375 |
| RL 150117P00105000 | | Expiration: January 2015, Exercise Price: $105.00 | | 5 | | | 1,675 |
| | | | | | | | 11,177 |
| | | Mining (except Oil and Gas) | | | | | |
| | | BHP Billiton Limited — ADR | | | | | |
| BHP 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 10 | | | 2,665 |
| BHP 150117P00047500 | | Expiration: January 2015, Exercise Price: $47.50 | | 10 | | | 5,475 |
| | | Freeport-McMoRan Copper & Gold Inc. | | | | | |
| FCX 140118P00022000 | | Expiration: January 2014, Exercise Price: $22.00 | | 25 | | | 2,663 |
| FCX 150117P00019000 | | Expiration: January 2015, Exercise Price: $19.00 | | 10 | | | 1,905 |
| FCX 150117P00022000 | | Expiration: January 2015, Exercise Price: $22.00 | | 15 | | | 4,462 |
| | | Rio Tinto PLC — ADR | | | | | |
| RIO 140118P00037500 | | Expiration: January 2014, Exercise Price: $37.50 | | 15 | | | 4,088 |
| RIO 150117P00037500 | | Expiration: January 2015, Exercise Price: $37.50 | | 15 | | | 8,775 |
| | | | | | | | 30,033 |
| | | Miscellaneous Manufacturing | | | | | |
| | | Baxter International Inc. | | | | | |
| BAX 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 20 | | | 1,310 |
| BAX 150117P00052500 | | Expiration: January 2015, Exercise Price: $52.50 | | 5 | | | 1,238 |
| | | International Game Technology | | | | | |
| IGT 140118P00010000 | | Expiration: January 2014, Exercise Price: $10.00 | | 45 | | | 675 |
| IGT 150117P00010000 | | Expiration: January 2015, Exercise Price: $10.00 | | 45 | | | 2,700 |
| IGT 150117P00012000 | | Expiration: January 2015, Exercise Price: $12.00 | | 20 | | | 2,150 |
| | | | | | | | 8,073 |
| | | Non-Store Retailers | | | | | |
| | | Amazon.com, Inc. | | | | | |
| AMZN 140118P00160000 | | Expiration: January 2014, Exercise Price: $160.00 | | 4 | | | 572 |
| AMZN 150117P00160000 | | Expiration: January 2015, Exercise Price: $160.00 | | 4 | | | 2,580 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Non-Store Retailers — (Continued) | | | | | |
| | | eBay, Inc. | | | | | |
| EBAY 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | $ | 788 |
| EBAY 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 10 | | | 1,045 |
| EBAY 150117P00033000 | | Expiration: January 2015, Exercise Price: $33.00 | | 15 | | | 2,617 |
| | | | | | | | 7,602 |
| | | Oil and Gas Extraction | | | | | |
| | | Anadarko Petroleum Corporation | | | | | |
| APC 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 10 | | | 220 |
| APC 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 10 | | | 1,750 |
| | | Apache Corporation | | | | | |
| APA 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 10 | | | 620 |
| APA 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 10 | | | 2,560 |
| | | Canadian Natural Resources Ltd. | | | | | |
| CNQ 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 25 | | | 563 |
| CNQ 150117P00018000 | | Expiration: January 2015, Exercise Price: $18.00 | | 25 | | | 2,437 |
| CNQ 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 15 | | | 2,100 |
| CNQ 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 10 | | | 2,275 |
| | | Encana Corporation | | | | | |
| ECA 140118P00013000 | | Expiration: January 2014, Exercise Price: $13.00 | | 25 | | | 938 |
| ECA 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 15 | | | 1,313 |
| ECA 150117P00013000 | | Expiration: January 2015, Exercise Price: $13.00 | | 25 | | | 3,062 |
| ECA 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 15 | | | 3,112 |
| | | EOG Resources, Inc. | | | | | |
| EOG 140118P00080000 | | Expiration: January 2014, Exercise Price: $80.00 | | 5 | | | 633 |
| EOG 150117P00080000 | | Expiration: January 2015, Exercise Price: $80.00 | | 5 | | | 2,037 |
| | | Marathon Oil Corporation | | | | | |
| MRO 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 25 | | | 488 |
| MRO 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 25 | | | 2,212 |
| | | Occidental Petroleum Corporation | | | | | |
| OXY 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 10 | | | 365 |
| OXY 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 10 | | | 1,725 |
| OXY 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 5 | | | 1,160 |
| | | | | | | | 29,570 |
| | | Other Information Services | | | | | |
| | | Google Inc. — Class A | | | | | |
| GOOG 140118P00630000 | | Expiration: January 2014, Exercise Price: $630.00 | | 1 | | | 450 |
| GOOG 150117P00600000 | | Expiration: January 2015, Exercise Price: $600.00 | | 1 | | | 2,015 |
| | | | | | | | 2,465 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Paper Manufacturing | | | | | |
| | | Kimberly-Clark Corporation | | | | | |
| KMB 150117P00082500 | | Expiration: January 2015, Exercise Price: $82.50 | | 8 | | $ | 4,720 |
| | | Performing Arts, Spectator Sports, and Related Industries | | | | | |
| | | Live Nation Entertainment, Inc. | | | | | |
| LYV 140118P00010000 | | Expiration: January 2014, Exercise Price: $10.00 | | 75 | | | 2,250 |
| | | Petroleum and Coal Products Manufacturing | | | | | |
| | | Chevron Corporation | | | | | |
| CVX 140118P00095000 | | Expiration: January 2014, Exercise Price: $95.00 | | 5 | | | 840 |
| | | ConocoPhillips | | | | | |
| COP 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 10 | | | 1,825 |
| COP 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 11 | | | 2,536 |
| | | Hess Corporation | | | | | |
| HES 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 10 | | | 870 |
| HES 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 15 | | | 1,703 |
| HES 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 2,017 |
| | | Phillips 66 | | | | | |
| PSX 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 15 | | | 637 |
| PSX 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 5 | | | 750 |
| PSX 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 15 | | | 3,150 |
| PSX 150117P00042000 | | Expiration: January 2015, Exercise Price: $42.00 | | 5 | | | 1,900 |
| | | Valero Energy Corporation | | | | | |
| VLO1 140118P00022000 | | Expiration: January 2014, Exercise Price: $22.00 | | 25 | | | 512 |
| VLO1 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 2,790 |
| | | | | | | | 19,530 |
| | | Pharmaceutical and Biotechnology | | | | | |
| | | Bristol-Myers Squibb Company | | | | | |
| BMY 140118P00031000 | | Expiration: January 2014, Exercise Price: $31.00 | | 10 | | | 525 |
| BMY 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 10 | | | 1,630 |
| | | Eli Lilly & Company | | | | | |
| LLY 150117P00043000 | | Expiration: January 2015, Exercise Price: $43.00 | | 10 | | | 3,975 |
| | | Gilead Sciences, Inc. | | | | | |
| GILD 140118P00041250 | | Expiration: January 2014, Exercise Price: $41.25 | | 15 | | | 2,168 |
| GILD 150117P00022500 | | Expiration: January 2015, Exercise Price: $22.50 | | 20 | | | 1,100 |
| | | Merck & Co., Inc. | | | | | |
| MRK 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 30 | | | 1,365 |
| MRK 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 15 | | | 1,552 |
| MRK 150117P00038000 | | Expiration: January 2015, Exercise Price: $38.00 | | 6 | | | 1,536 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Pharmaceutical and Biotechnology — (Continued) | | | | | |
| | | Pfizer, Inc. | | | | | |
| PFE 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 20 | | $ | 1,510 |
| PFE 150117P00022000 | | Expiration: January 2015, Exercise Price: $22.00 | | 50 | | | 6,450 |
| | | | | | | | 21,811 |
| | | Pipeline Transportation | | | | | |
| | | The Williams Companies, Inc. | | | | | |
| WMB 150117P00025000 | | Expiration: January 2015, Exercise Price: $25.00 | | 40 | | | 8,620 |
| | | Primary Metal Manufacturing | | | | | |
| | | Nucor Corporation | | | | | |
| NUE 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 45 | | | 8,123 |
| | | Professional, Scientific, and Technical Services | | | | | |
| | | Cerner Corporation | | | | | |
| CERN 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 5 | | | 588 |
| CERN 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00 | | 5 | | | 900 |
| .CERN 150117P00070000 | | Expiration: January 2015, Exercise Price: $70.00 | | 10 | | | 4,600 |
| CERN 150117P00075000 | | Expiration: January 2015, Exercise Price: $75.00 | | 5 | | | 2,950 |
| | | Computer Sciences Corporation | | | | | |
| CSC 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 20 | | | 600 |
| CSC 150117P00025000 | | Expiration: January 2015, Exercise Price: $25.00 | | 20 | | | 2,500 |
| | | Fluor Corporation | | | | | |
| FLR 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 9 | | | 585 |
| FLR 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 5 | | | 600 |
| FLR 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 4 | | | 650 |
| FLR 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 9 | | | 2,295 |
| FLR 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 4 | | | 1,280 |
| | | Foster Wheeler AG | | | | | |
| FWLT 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 20 | | | 920 |
| FWLT 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 20 | | | 2,580 |
| | | The Interpublic Group of Companies, Inc. | | | | | |
| IPG 150117P00008000 | | Expiration: January 2015, Exercise Price: $8.00 | | 50 | | | 1,750 |
| | | SAIC, Inc. | | | | | |
| SAI 140118P00007000 | | Expiration: January 2014, Exercise Price: $7.00 | | 50 | | | 250 |
| SAI 140118P00009000 | | Expiration: January 2014, Exercise Price: $9.00 | | 25 | | | 250 |
| SAI 150117P00007000 | | Expiration: January 2015, Exercise Price: $7.00 | | 50 | | | 875 |
| | | | | | | | 24,173 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Publishing Industries (except Internet) | | | | | |
| | | News Corporation — Class A | | | | | |
| NWSA 150117P00022000 | | Expiration: January 2015, Exercise Price: $22.00 | | 30 | | $ | 3,150 |
| | | Rail Transportation | | | | | |
| | | CSX Corporation | | | | | |
| CSX 140118P00017500 | | Expiration: January 2014, Exercise Price: $17.50 | | 10 | | | 370 |
| CSX 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 20 | | | 1,570 |
| CSX 150117P00012500 | | Expiration: January 2015, Exercise Price: $12.50 | | 40 | | | 1,500 |
| CSX 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 30 | | | 2,175 |
| | | Norfolk Southern Corporation | | | | | |
| NSC 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 10 | | | 1,050 |
| NSC 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 5 | | | 900 |
| NSC 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 12 | | | 1,410 |
| | | | | | | | 8,975 |
| | | Satellite Telecommunications | | | | | |
| | | DISH Network Corp. — Class A | | | | | |
| DISH 140118P00024000 | | Expiration: January 2014, Exercise Price: $24.00 | | 34 | | | 935 |
| DISH 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 10 | | | 325 |
| DISH 150117P00024000 | | Expiration: January 2015, Exercise Price: $24.00 | | 14 | | | 1,505 |
| | | | | | | | 2,765 |
| | | Securities, Commodity Contracts, and Other Financial | | | | | |
| | | Investments and Related Activities | | | | | |
| | | The Charles Schwab Corporation | | | | | |
| SCHW 150117P00012000 | | Expiration: January 2015, Exercise Price: $12.00 | | 41 | | | 2,255 |
| | | CME Group Inc. | | | | | |
| CME 140118P00046000 | | Expiration: January 2014, Exercise Price: $46.00 | | 7 | | | 263 |
| CME 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 11 | | | 1,650 |
| CME 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 7 | | | 1,207 |
| | | Morgan Stanley | | | | | |
| MS 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 10 | | | 325 |
| MS 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 10 | | | 675 |
| MS 150117P00013000 | | Expiration: January 2015, Exercise Price: $13.00 | | 40 | | | 2,780 |
| | | | | | | | 9,155 |
| | | Software Publishers | | | | | |
| | | Citrix Systems, Inc. | | | | | |
| CTXS 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 10 | | | 1,150 |
| CTXS 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 5 | | | 800 |
| CTXS 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 10 | | | 3,800 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Software Publishers — (Continued) | | | | | |
| | | Microsoft Corporation | | | | | |
| MSFT 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 30 | | $ | 645 |
| MSFT 150117P00018000 | | Expiration: January 2015, Exercise Price: $18.00 | | 25 | | | 1,163 |
| MSFT 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 10 | | | 640 |
| | | Oracle Corporation | | | | | |
| ORCL 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 10 | | | 655 |
| ORCL 140118P00028000 | | Expiration: January 2014, Exercise Price: $28.00 | | 10 | | | 1,330 |
| ORCL 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 25 | | | 2,312 |
| ORCL 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 10 | | | 3,100 |
| | | | | | | | 15,595 |
| | | Support Activities for Mining | | | | | |
| | | Halliburton Company | | | | | |
| HAL 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 20 | | | 390 |
| HAL 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 4 | | | 250 |
| HAL 150117P00023000 | | Expiration: January 2015, Exercise Price: $23.00 | | 20 | | | 1,820 |
| HAL 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 5 | | | 850 |
| | | Helmerich & Payne, Inc. | | | | | |
| HP 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 10 | | | 1,100 |
| HP 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 15 | | | 5,025 |
| | | Schlumberger Limited | | | | | |
| SLB 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 10 | | | 570 |
| SLB 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 10 | | | 1,080 |
| SLB 150117P00047500 | | Expiration: January 2015, Exercise Price: $47.50 | | 10 | | | 2,230 |
| | | | | | | | 13,315 |
| | | Support Activities for Transportation | | | | | |
| | | Expeditors International of Washington, Inc. | | | | | |
| EXPD 140118P00027500 | | Expiration: January 2014, Exercise Price: $27.50 | | 25 | | | 875 |
| EXPD 150117P00025000 | | Expiration: January 2015, Exercise Price: $25.00 | | 15 | | | 1,612 |
| | | | | | | | 2,487 |
| | | Transportation Equipment Manufacturing | | | | | |
| | | The Boeing Company | | | | | |
| BA 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 5 | | | 158 |
| BA 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 10 | | | 1,095 |
| BA 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 5 | | | 725 |
| | | General Dynamics Corporation | | | | | |
| GD 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 10 | | | 1,550 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Alternative Income Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Transportation Equipment Manufacturing — (Continued) | | | | | |
| | | Harley-Davidson, Inc. | | | | | |
| HOG 140118P00033000 | | Expiration: January 2014, Exercise Price: $33.00 | | 15 | | $ | 503 |
| HOG 150117P00033000 | | Expiration: January 2015, Exercise Price: $33.00 | | 15 | | | 2,377 |
| | | Johnson Controls, Inc. | | | | | |
| JCI 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 25 | | | 438 |
| JCI 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 25 | | | 1,812 |
| | | PACCAR Inc. | | | | | |
| PCAR 140118P00028500 | | Expiration: January 2014, Exercise Price: $28.50 | | 20 | | | 500 |
| PCAR 140118P00038500 | | Expiration: January 2014, Exercise Price: $38.50 | | 10 | | | 750 |
| PCAR 150117P00029200 | | Expiration: January 2015, Exercise Price: $29.20 | | 15 | | | 1,725 |
| | | Textron Inc. | | | | | |
| TXT 140118P00017000 | | Expiration: January 2014, Exercise Price: $17.00 | | 25 | | | 625 |
| TXT 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 15 | | | 900 |
| TXT 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 25 | | | 1,912 |
| | | United Technologies Corporation | | | | | |
| UTX 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 10 | | | 1,775 |
| | | | | | | | 16,845 |
| | | U.S. Equity Exchanges | | | | | |
| | | The NASDAQ OMX Group, Inc. | | | | | |
| NDAQ 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 30 | | | 1,050 |
| | | TOTAL PUT OPTIONS WRITTEN | | | | | |
| | | (premiums received $939,037) | | | | $ | 617,988 |
____________________
* — 100 Shares Per Contract.
ADR — American Depository Receipt.
PLC — Public Limited Company.
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | PUT OPTIONS WRITTEN | | Contracts* | | | Value |
| | | Accommodation | | | | | |
| | | Carnival Corporation | | | | | |
| CCL 140118P00029500 | | Expiration: January 2014, Exercise Price: $29.50 | | 251 | | $ | 26,982 |
| CCL 150117P00032500 | | Expiration: January 2015, Exercise Price: $32.50 | | 16 | | | 6,880 |
| | | Marriott International Inc. — Class A | | | | | |
| MAR 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 16 | | | 5,280 |
| | | Royal Caribbean Cruises Ltd. | | | | | |
| RCL 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 160 | | | 28,240 |
| | | | | | | | 67,382 |
| | | Administrative and Support Services | | | | | |
| | | Expedia, Inc. | | | | | |
| EXPE 140118P00049480 | | Expiration: January 2014, Exercise Price: $49.48 | | 2 | | | 530 |
| EXPE 150117P00039480 | | Expiration: January 2015, Exercise Price: $39.48 | | 9 | | | 3,015 |
| | | | | | | | 3,545 |
| | | Ambulatory Health Care Services | | | | | |
| | | Laboratory Corporation of America Holdings | | | | | |
| LH 130817P00080000 | | Expiration: August 2013, Exercise Price: $80.00 | | 20 | | | 200 |
| | | Apparel Manufacturing | | | | | |
| | | Cintas Corp. | | | | | |
| CTAS 140118P00037500 | | Expiration: January 2014, Exercise Price: $37.50 | | 15 | | | 1,013 |
| | | L Brands, Inc. | | | | | |
| LTD 140118P00041000 | | Expiration: January 2014, Exercise Price: $41.00 | | 15 | | | 2,137 |
| LTD 140118P00044000 | | Expiration: January 2014, Exercise Price: $44.00 | | 2 | | | 435 |
| LTD 150117P00042000 | | Expiration: January 2015, Exercise Price: $42.00 | | 18 | | | 7,740 |
| | | | | | | | 11,325 |
| | | Asset Management | | | | | |
| | | Apollo Global Management LLC — Class A | | | | | |
| APO 130921P00020000 | | Expiration: September 2013, Exercise Price: $20.00 | | 10 | | | 625 |
| | | BlackRock, Inc. | | | | | |
| BLK 140118P00160000 | | Expiration: January 2014, Exercise Price: $160.00 | | 15 | | | 2,662 |
| | | The Blackstone Group LP | | | | | |
| BX 140118P00010000 | | Expiration: January 2014, Exercise Price: $10.00 | | 400 | | | 2,400 |
| | | The Carlyle Group LP | | | | | |
| CG 130921P00025000 | | Expiration: September 2013, Exercise Price: $25.00 | | 100 | | | 13,750 |
| CG 131221P00022500 | | Expiration: December 2013, Exercise Price: $22.50 | | 165 | | | 18,150 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Asset Management — (Continued) | | | | | |
| | | Federated Investors, Inc. — Class B | | | | | |
| FII 130720P00020000 | | Expiration: July 2013, Exercise Price: $20.00 | | 25 | | $ | 125 |
| FII 130720P00022500 | | Expiration: July 2013, Exercise Price: $22.50 | | 47 | | | 352 |
| FII 131019P00022500 | | Expiration: October 2013, Exercise Price: $22.50 | | 30 | | | 1,650 |
| | | Franklin Resources, Inc. | | | | | |
| BEN 140118P00102000 | | Expiration: January 2014, Exercise Price: $102.00 | | 10 | | | 2,525 |
| | | KKR & Co. LP | | | | | |
| KKR 150117P00017000 | | Expiration: January 2015, Exercise Price: $17.00 | | 52 | | | 11,440 |
| | | Legg Mason, Inc. | | | | | |
| LM 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 206 | | | 15,450 |
| LM 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 100 | | | 11,250 |
| LM 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 18 | | | 2,835 |
| | | Oaktree Capital Group LLC | | | | | |
| OAK 130720P00040000 | | Expiration: July 2013, Exercise Price: $40.00 | | 35 | | | 788 |
| OAK 131019P00045000 | | Expiration: October 2013, Exercise Price: $45.00 | | 65 | | | 4,875 |
| | | | | | | | 88,877 |
| | | Beverage and Tobacco Product Manufacturing | | | | | |
| | | Anheuser-Busch InBev NV | | | | | |
| BUD 130921P00075000 | | Expiration: September 2013, Exercise Price: $75.00 | | 50 | | | 1,625 |
| BUD 130921P00080000 | | Expiration: September 2013, Exercise Price: $80.00 | | 28 | | | 2,310 |
| | | Coca-Cola Enterprises Inc. | | | | | |
| CCE 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 150 | | | 4,125 |
| | | Companhia de Bebidas das Americas | | | | | |
| ABV 140118P00034990 | | Expiration: January 2014, Exercise Price: $34.99 | | 30 | | | 6,225 |
| | | Constellation Brands, Inc. — Class A | | | | | |
| STZ 140118P00022500 | | Expiration: January 2014, Exercise Price: $22.50 | | 156 | | | 780 |
| STZ 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 129 | | | 645 |
| | | Molson Coors Brewing Company — Class B | | | | | |
| TAP 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 147 | | | 19,477 |
| TAP 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 50 | | | 16,000 |
| | | PepsiCo, Inc. | | | | | |
| PEP 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 25 | | | 1,088 |
| PEP 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 18 | | | 954 |
| | | Pernod Ricard SA | | | | | |
| RI1 131220P00090000 | | Expiration: December 2013, Exercise Price: €90.00 | | 30 | | | 33,778 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Beverage and Tobacco Product Manufacturing — (Continued) | | | | | |
| | | Philip Morris International, Inc. | | | | | |
| PM 140118P00082500 | | Expiration: January 2014, Exercise Price: $82.50 | | 30 | | $ | 11,700 |
| PM 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 20 | | | 12,550 |
| PM 150117P00087500 | | Expiration: January 2015, Exercise Price: $87.50 | | 1 | | | 1,217 |
| | | | | | | | 112,474 |
| | | Broadcasting | | | | | |
| | | Charter Communications, Inc. | | | | | |
| CHTR 130921P00080000 | | Expiration: September 2013, Exercise Price: $80.00 | | 10 | | | 425 |
| | | Broadcasting (except Internet) | | | | | |
| | | CBS Corporation — Class B | | | | | |
| CBS 150117P00037000 | | Expiration: January 2015, Exercise Price: $37.00 | | 3 | | | 1,035 |
| CBS 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 6 | | | 2,700 |
| CBS 150117P00042000 | | Expiration: January 2015, Exercise Price: $42.00 | | 10 | | | 5,300 |
| | | Comcast Corporation — Class A | | | | | |
| CMCSA 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 70 | | | 2,835 |
| CMCSA 150117P00037000 | | Expiration: January 2015, Exercise Price: $37.00 | | 16 | | | 5,920 |
| | | Grupo Televisa S.A.B. — ADR | | | | | |
| TV 131019P00025000 | | Expiration: October 2013, Exercise Price: $25.00 | | 75 | | | 10,875 |
| | | Starz — Class A | | | | | |
| STRZ1 130720P00095000 | | Expiration: July 2013, Exercise Price: $95.00 | | 12 | | | 960 |
| | | Time Warner Cable Inc. | | | | | |
| TWC 140118P00082500 | | Expiration: January 2014, Exercise Price: $82.50 | | 39 | | | 5,265 |
| TWC 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 48 | | | 9,240 |
| | | Time Warner Inc. | | | | | |
| TWX 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 59 | | | 1,445 |
| TWX 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 47 | | | 1,927 |
| | | Viacom Inc. — Class B | | | | | |
| VIAB 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 30 | | | 1,125 |
| VIAB 140118P00047000 | | Expiration: January 2014, Exercise Price: $47.00 | | 43 | | | 1,935 |
| VIAB 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 50 | | | 9,000 |
| VIAB 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 8 | | | 4,000 |
| VIAB 150117P00057500 | | Expiration: January 2015, Exercise Price: $57.50 | | 10 | | | 5,800 |
| | | The Walt Disney Company | | | | | |
| DIS 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 25 | | | 788 |
| DIS 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 2 | | | 114 |
| | | | | | | | 70,264 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Building Material and Garden Equipment and Supplies Dealers | | | | | |
| | | Fastenal Company | | | | | |
| FAST 140118P00039500 | | Expiration: January 2014, Exercise Price: $39.50 | | 70 | | $ | 12,250 |
| FAST 150117P00037500 | | Expiration: January 2015, Exercise Price: $37.50 | | 6 | | | 2,040 |
| FAST 150117P00042500 | | Expiration: January 2015, Exercise Price: $42.50 | | 7 | | | 3,955 |
| | | Lowe’s Companies, Inc. | | | | | |
| LOW 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 25 | | | 350 |
| LOW 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 4 | | | 76 |
| | | The Sherwin-Williams Company | | | | | |
| SHW 150117P00160000 | | Expiration: January 2015, Exercise Price: $160.00 | | 5 | | | 8,325 |
| | | | | | | | 26,996 |
| | | Chemical Manufacturing | | | | | |
| | | Calgon Carbon Corporation | | | | | |
| CCC 131019P00015000 | | Expiration: October 2013, Exercise Price: $15.00 | | 150 | | | 6,750 |
| | | The Clorox Company | | | | | |
| CLX 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 22 | | | 715 |
| CLX 140118P00065000 | | Expiration: January 2014, Exercise Price: $65.00 | | 5 | | | 288 |
| | | Kronos Worldwide, Inc. | | | | | |
| KRO 130817P00015000 | | Expiration: August 2013, Exercise Price: $15.00 | | 300 | | | 12,750 |
| | | Monsanto Company | | | | | |
| MON 140118P00085000 | | Expiration: January 2014, Exercise Price: $85.00 | | 1 | | | 293 |
| MON 150117P00090000 | | Expiration: January 2015, Exercise Price: $90.00 | | 6 | | | 5,730 |
| | | Novo Nordisk A/S | | | | | |
| NVO 130921P00150000 | | Expiration: September 2013, Exercise Price: $150.00 | | 15 | | | 6,750 |
| | | The Procter & Gamble Company | | | | | |
| PG 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 4 | | | 280 |
| | | Scotts Miracle-Gro Company — Class A | | | | | |
| SMG 130921P00040000 | | Expiration: September 2013, Exercise Price: $40.00 | | 15 | | | 450 |
| | | Sigma-Aldrich Corporation | | | | | |
| SIAL 130720P00065000 | | Expiration: July 2013, Exercise Price: $65.00 | | 14 | | | 70 |
| SIAL 130720P00070000 | | Expiration: July 2013, Exercise Price: $70.00 | | 4 | | | 20 |
| SIAL 131019P00070000 | | Expiration: October 2013, Exercise Price: $70.00 | | 91 | | | 4,322 |
| | | Westlake Chemical Corporation | | | | | |
| WLK 131019P00075000 | | Expiration: October 2013, Exercise Price: $75.00 | | 75 | | | 18,000 |
| | | | | | | | 56,418 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Clothing and Clothing Accessories Stores | | | | | |
| | | The Estee Lauder Companies Inc. — Class A | | | | | |
| EL 140118P00047500 | | Expiration: January 2014, Exercise Price: $47.50 | | 29 | | $ | 2,392 |
| EL 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 15 | | | 2,700 |
| | | Tiffany & Co. | | | | | |
| TIF 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 22 | | | 880 |
| TIF 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 46 | | | 4,508 |
| TIF 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 70 | | | 11,725 |
| TIF 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 95 | | | 25,887 |
| TIF 150117P00060000 | | Expiration: January 2015, Exercise Price: $60.00 | | 4 | | | 2,450 |
| TIF 150117P00065000 | | Expiration: January 2015, Exercise Price: $65.00 | | 9 | | | 7,403 |
| | | | | | | | 57,945 |
| | | Computer and Electronic Product Manufacturing | | | | | |
| | | America Movil SAB de C.V. — Series L — ADR | | | | | |
| AMX 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 180 | | | 9,000 |
| AMX 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 200 | | | 20,000 |
| | | Apple, Inc. | | | | | |
| AAPL 140118P00360000 | | Expiration: January 2014, Exercise Price: $360.00 | | 23 | | | 44,390 |
| | | Bruker Corporation | | | | | |
| BRKR 130921P00015000 | | Expiration: September 2013, Exercise Price: $15.00 | | 70 | | | 4,025 |
| | | Rockwell Collins, Inc. | | | | | |
| COL 130720P00050000 | | Expiration: July 2013, Exercise Price: $50.00 | | 56 | | | 560 |
| COL 131019P00050000 | | Expiration: October 2013, Exercise Price: $50.00 | | 10 | | | 325 |
| | | SONY Corporation | | | | | |
| SNE 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 24 | | | 3,960 |
| SNE 150117P00017000 | | Expiration: January 2015, Exercise Price: $17.00 | | 76 | | | 18,430 |
| | | Vicor Corporation | | | | | |
| VICR 131019P00005000 | | Expiration: October 2013, Exercise Price: $5.00 | | 250 | | | 2,500 |
| | | | | | | | 103,190 |
| | | Construction of Buildings | | | | | |
| | | Lennar Corporation — Class A | | | | | |
| LEN 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 3 | | | 563 |
| LEN 150117P00033000 | | Expiration: January 2015, Exercise Price: $33.00 | | 16 | | | 8,960 |
| | | | | | | | 9,523 |
| | | Couriers and Messengers | | | | | |
| | | FedEx Corp. | | | | | |
| FDX 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 6 | | | 381 |
| FDX 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00 | | 10 | | | 1,015 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Couriers and Messengers — (Continued) | | | | | |
| FDX 140118P00077500 | | Expiration: January 2014, Exercise Price: $77.50 | | 10 | | $ | 1,280 |
| FDX 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 74 | | | 22,940 |
| | | United Parcel Service, Inc. — Class B | | | | | |
| UPS 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 8 | | | 328 |
| UPS 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 11 | | | 891 |
| UPS 140118P00072500 | | Expiration: January 2014, Exercise Price: $72.50 | | 61 | | | 6,344 |
| UPS 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00 | | 21 | | | 2,856 |
| UPS 140118P00077500 | | Expiration: January 2014, Exercise Price: $77.50 | | 11 | | | 1,974 |
| | | | | | | | 38,009 |
| | | Credit Intermediation and Related Activities | | | | | |
| | | Altisource Portfolio Solutions SA | | | | | |
| ASPS 131019P00060000 | | Expiration: October 2013, Exercise Price: $60.00 | | 56 | | | 2,240 |
| | | American Express Company | | | | | |
| AXP 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 60 | | | 3,330 |
| AXP 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 10 | | | 850 |
| | | BOK Financial Corporation | | | | | |
| BOKF 130921P00050000 | | Expiration: September 2013, Exercise Price: $50.00 | | 12 | | | 570 |
| | | Citigroup Inc. | | | | | |
| C 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 50 | | | 3,700 |
| | | M&T Bank Corporation | | | | | |
| MTB 130720P00080000 | | Expiration: July 2013, Exercise Price: $80.00 | | | | | |
| MTB 131019P00095000 | | Expiration: October 2013, Exercise Price: $95.00 | | 35 | | | 2,362 |
| | | Northern Trust Corp. | | | | | |
| NTRS 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 71 | | | 2,307 |
| | | State Street Corporation | | | | | |
| STT 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 11 | | | 226 |
| | | Wells Fargo & Company | | | | | |
| WFC 140118P00028000 | | Expiration: January 2014, Exercise Price: $28.00 | | 80 | | | 2,520 |
| WFC 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 30 | | | 1,275 |
| WFC 140118P00032000 | | Expiration: January 2014, Exercise Price: $32.00 | | 3 | | | 173 |
| | | | | | | | 19,578 |
| | | Defense | | | | | |
| | | CACI International Inc. — Class A | | | | | |
| CACI 130921P00047500 | | Expiration: September 2013, Exercise Price: $47.50 | | 18 | | | 585 |
| CACI 130921P00050000 | | Expiration: September 2013, Exercise Price: $50.00 | | 27 | | | 1,147 |
| | | Northrop Grumman Corporation | | | | | |
| NOC 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 20 | | | 1,150 |
| | | | | | | | 2,882 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | E-Commerce | | | | | |
| | | IAC/InterActiveCorp | | | | | |
| IACI 130720P00035000 | | Expiration: July 2013, Exercise Price: $35.00 | | 117 | | $ | 585 |
| IACI 131019P00035000 | | Expiration: October 2013, Exercise Price: $35.00 | | 30 | | | 1,200 |
| IACI 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 25 | | | 4,438 |
| IACI 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 4 | | | 1,780 |
| | | | | | | | 8,003 |
| | | Electric Power Distribution | | | | | |
| | | GDF Suez | | | | | |
| GA1 131220P00014000 | | Expiration: December 2013, Exercise Price: €14.00 | | 200 | | | 22,649 |
| | | RWE AG | | | | | |
| RWE 131220P00028000 | | Expiration: December 2013, Exercise Price: €28.00 | | 150 | | | 77,122 |
| | | | | | | | 99,771 |
| | | European Exchanges | | | | | |
| | | Deutsche Boerse AG | | | | | |
| DB1 131220P00044000 | | Expiration: December 2013, Exercise Price: €44.00 | | 140 | | | 18,405 |
| | | Fabricated Metal Product Manufacturing | | | | | |
| | | Danaher Corporation | | | | | |
| DHR 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 85 | | | 4,037 |
| DHR 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 52 | | | 5,590 |
| | | McDermott International, Inc. | | | | | |
| MDR 140118P00008000 | | Expiration: January 2014, Exercise Price: $8.00 | | 85 | | | 7,650 |
| MDR 140118P00010000 | | Expiration: January 2014, Exercise Price: $10.00 | | 580 | | | 127,600 |
| MDR 150117P00010000 | | Expiration: January 2015, Exercise Price: $10.00 | | 46 | | | 12,995 |
| | | | | | | | 157,872 |
| | | Food Manufacturing | | | | | |
| | | Archer-Daniels-Midland Company | | | | | |
| ADM 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 25 | | | 550 |
| ADM 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 225 | | | 7,875 |
| | | Bunge Limited | | | | | |
| BG 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 46 | | | 3,910 |
| BG 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 21 | | | 2,468 |
| BG 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 40 | | | 6,000 |
| BG 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 14 | | | 2,870 |
| | | Kellogg Company | | | | | |
| K 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 37 | | | 1,110 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Food Manufacturing — (Continued) | | | | | |
| | | Mead Johnson Nutrition Company | | | | | |
| MJN 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 58 | | $ | 4,727 |
| MJN 140118P00065000 | | Expiration: January 2014, Exercise Price: $65.00 | | 48 | | | 7,152 |
| MJN 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 12 | | | 3,228 |
| | | Mondelez International Inc. — Class A | | | | | |
| MDLZ1 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 30 | | | 660 |
| MDLZ1 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 2 | | | 121 |
| | | | | | | | 40,671 |
| | | Food Services and Drinking Places | | | | | |
| | | Starbucks Corporation | | | | | |
| SBUX 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 118 | | | 1,593 |
| SBUX 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 2 | | | 85 |
| SBUX 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 30 | | | 1,545 |
| SBUX 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 2 | | | 402 |
| SBUX 150117P00052500 | | Expiration: January 2015, Exercise Price: $52.50 | | 5 | | | 1,862 |
| SBUX 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 9 | | | 4,028 |
| SBUX 150117P00057500 | | Expiration: January 2015, Exercise Price: $57.50 | | 4 | | | 2,150 |
| | | | | | | | 11,665 |
| | | Funds, Trusts, and Other Financial Vehicles | | | | | |
| | | iShares MSCI Japan Index Fund | | | | | |
| EWJ 140118P00009000 | | Expiration: January 2014, Exercise Price: $9.00 | | 605 | | | 7,865 |
| | | iShares Russell 2000 Value Index Fund | | | | | |
| IWM 140118P00079000 | | Expiration: January 2014, Exercise Price: $79.00 | | 1 | | | 168 |
| | | Market Vectors Gold Miners ETF | | | | | |
| GDX 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 50 | | | 13,825 |
| | | Market Vectors Junior Gold Miners ETF | | | | | |
| GDXJ 150117P00007000 | | Expiration: January 2015, Exercise Price: $7.00 | | 50 | | | 6,750 |
| | | ProShares Short S&P 500 ETF | | | | | |
| SH 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 90 | | | 15,975 |
| | | SPDR S&P 500 ETF Trust | | | | | |
| SPY 140118P00135000 | | Expiration: January 2014, Exercise Price: $135.00 | | 20 | | | 4,700 |
| SPY 140118P00138000 | | Expiration: January 2014, Exercise Price: $138.00 | | 20 | | | 5,520 |
| SPY 141220P00140000 | | Expiration: December 2014, Exercise Price: $140.00 | | 1 | | | 842 |
| | | | | | | | 55,645 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Gaming | | | | | |
| | | Las Vegas Sands Corp. | | | | | |
| LVS 140118P00027250 | | Expiration: January 2014, Exercise Price: $27.25 | | 70 | | $ | 2,415 |
| LVS 140118P00032250 | | Expiration: January 2014, Exercise Price: $32.25 | | 32 | | | 1,776 |
| LVS 140118P00035250 | | Expiration: January 2014, Exercise Price: $35.25 | | 3 | | | 228 |
| LVS 140118P00042250 | | Expiration: January 2014, Exercise Price: $42.25 | | 52 | | | 8,970 |
| LVS 150117P00044250 | | Expiration: January 2015, Exercise Price: $44.25 | | 9 | | | 5,265 |
| | | Wynn Resorts Limited | | | | | |
| WYNN 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 46 | | | 1,449 |
| WYNN 140118P00067500 | | Expiration: January 2014, Exercise Price: $67.50 | | 12 | | | 444 |
| WYNN 140118P00072500 | | Expiration: January 2014, Exercise Price: $72.50 | | 8 | | | 396 |
| WYNN 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 4 | | | 464 |
| WYNN 140118P00095000 | | Expiration: January 2014, Exercise Price: $95.00 | | 8 | | | 1,472 |
| WYNN 150117P00120000 | | Expiration: January 2015, Exercise Price: $120.00 | | 5 | | | 8,313 |
| | | | | | | | 31,192 |
| | | General Merchandise Stores | | | | | |
| | | Family Dollar Stores, Inc. | | | | | |
| FDO 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 138 | | | 14,490 |
| FDO 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 6 | | | 915 |
| FDO 150117P00050000 | | Expiration: January 2015, Exercise Price: $50.00 | | 14 | | | 5,110 |
| FDO 150117P00052500 | | Expiration: January 2015, Exercise Price: $52.50 | | 9 | | | 4,050 |
| | | J.C. Penney Company, Inc. | | | | | |
| JCP 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 6 | | | 2,070 |
| | | Sears Holdings Corporation | | | | | |
| SHLD 140118P00030420 | | Expiration: January 2014, Exercise Price: $30.42 | | 54 | | | 8,748 |
| SHLD 140222P00030420 | | Expiration: February 2014, Exercise Price: $30.42 | | 23 | | | 4,738 |
| SHLD 140621P00047920 | | Expiration: June 2014, Exercise Price: $47.92 | | 2 | | | 2,350 |
| SHLD 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 6 | | | 3,960 |
| | | | | | | | 46,431 |
| | | Heavy and Civil Engineering Construction | | | | | |
| | | Bouygues SA | | | | | |
| EN1 131220P00020000 | | Expiration: December 2013, Exercise Price: €20.00 | | 150 | | | 35,535 |
| | | Holding Company | | | | | |
| | | Berkshire Hathaway Inc. — Class B | | | | | |
| BRKB 140118P00080000 | | Expiration: January 2014, Exercise Price: $80.00 | | 23 | | | 1,897 |
| | | Icahn Enterprises LP | | | | | |
| IEP 131221P00065000 | | Expiration: December 2013, Exercise Price: $65.00 | | 4 | | | 2,220 |
| IEP 131221P00070000 | | Expiration: December 2013, Exercise Price: $70.00 | | 4 | | | 3,160 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Holding Company — (Continued) | | | | | |
| | | Leucadia National Corporation | | | | | |
| LUK 130921P00022500 | | Expiration: September 2013, Exercise Price: $22.50 | | 40 | | $ | 900 |
| LUK2 150117P00025000 | | Expiration: January 2015, Exercise Price: $25.00 | | 19 | | | 10,070 |
| | | | | | | | 18,247 |
| | | Hospitals | | | | | |
| | | Universal Health Services, Inc. — Class B | | | | | |
| UHS 131019P00065000 | | Expiration: October 2013, Exercise Price: $65.00 | | 1 | | | 325 |
| | | Insurance Carriers and Related Activities | | | | | |
| | | American International Group, Inc. | | | | | |
| AIG 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 71 | | | 3,586 |
| | | Greenlight Capital Re, Ltd. — Class A | | | | | |
| GLRE 130817P00025000 | | Expiration: August 2013, Exercise Price: $25.00 | | 45 | | | 4,950 |
| | | Loews Corporation | | | | | |
| L 130921P00040000 | | Expiration: September 2013, Exercise Price: $40.00 | | 70 | | | 2,275 |
| | | Marsh & McLennan Companies, Inc. | | | | | |
| MMC 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 16 | | | 200 |
| | | Mercury General Corporation | | | | | |
| MCY 130921P00035000 | | Expiration: September 2013, Exercise Price: $35.00 | | 30 | | | 450 |
| | | UnitedHealth Group Inc. | | | | | |
| UNH 140118P00047000 | | Expiration: January 2014, Exercise Price: $47.00 | | 60 | | | 3,840 |
| | | W. R. Berkley Corporation | | | | | |
| WRB 130720P00040000 | | Expiration: July 2013, Exercise Price: $40.00 | | 75 | | | 1,312 |
| | | | | | | | 16,613 |
| | | Leather and Allied Product Manufacturing | | | | | |
| | | Coach, Inc. | | | | | |
| COH 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 11 | | | 4,730 |
| | | Lessors of Nonfinancial Intangible Assets | | | | | |
| | | (except Copyrighted Works) | | | | | |
| | | Hugoton Royalty Trust | | | | | |
| HGT 130817P00007500 | | Expiration: August 2013, Exercise Price: $7.50 | | 125 | | | 1,250 |
| | | IntercontinentalExchange Inc. | | | | | |
| ICE 140118P00150000 | | Expiration: January 2014, Exercise Price: $150.00 | | 1 | | | 485 |
| | | San Juan Basin Royalty Trust | | | | | |
| SJT 131019P00012500 | | Expiration: October 2013, Exercise Price: $12.50 | | 60 | | | 2,550 |
| | | | | | | | 4,285 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Machinery Manufacturing | | | | | |
| | | AGCO Corporation | | | | | |
| AGCO 131116P00040000 | | Expiration: November 2013, Exercise Price: $40.00 | | 45 | | $ | 2,475 |
| AGCO 131116P00045000 | | Expiration: November 2013, Exercise Price: $45.00 | | 145 | | | 21,388 |
| | | Illinois Tool Works Inc. | | | | | |
| ITW 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 30 | | | 3,975 |
| | | National Oilwell Varco Inc. | | | | | |
| NOV 150117P00057500 | | Expiration: January 2015, Exercise Price: $57.50 | | 4 | | | 2,330 |
| | | | | | | | 30,168 |
| | | Management of Companies and Enterprises | | | | | |
| | | Cheung Kong (Holdings) Limited | | | | | |
| 1HK 131230P00110000 | | Expiration: December 2013, Exercise Price: | | | | | |
| | | HKD $110.00e | | 50 | | | 62,596 |
| | | JPMorgan Chase & Co. | | | | | |
| JPM 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 100 | | | 2,350 |
| JPM 140118P00032000 | | Expiration: January 2014, Exercise Price: $32.00 | | 25 | | | 738 |
| JPM 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 12 | | | 498 |
| | | Power Corporation of Canada | | | | | |
| POW 131019P00026000 | | Expiration: October 2013, Exercise Price: | | | | | |
| | | CAD $26.00 | | 90 | | | 4,279 |
| | | Swire Pacific LTD — Class A | | | | | |
| 19HK 131230P00090000 | | Expiration: December 2013, Exercise Price: | | | | | |
| | | HKD $90.00f | | 42 | | | 13,240 |
| | | | | | | | 83,701 |
| | | Merchant Wholesalers, Durable Goods | | | | | |
| | | Airgas, Inc. | | | | | |
| ARG 140118P00090000 | | Expiration: January 2014, Exercise Price: $90.00 | | 40 | | | 17,600 |
| | | Merchant Wholesalers, Nondurable Goods | | | | | |
| | | Cardinal Health, Inc. | | | | | |
| CAH 150117P00042000 | | Expiration: January 2015, Exercise Price: $42.00 | | 7 | | | 2,660 |
| | | Express Scripts Holding Company | | | | | |
| ESRX 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 20 | | | 1,250 |
| ESRX 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 40 | | | 6,640 |
| | | McCormick & Company, Inc. | | | | | |
| MKC 130921P00055000 | | Expiration: September 2013, Exercise Price: $55.00 | | 80 | | | 1,800 |
| | | | | | | | 12,350 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Mining (except Oil and Gas) | | | | | |
| | | Barrick Gold Corporation | | | | | |
| ABX 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 116 | | $ | 46,400 |
| ABX 150117P00015000 | | Expiration: January 2015, Exercise Price: $15.00 | | 42 | | | 15,540 |
| | | Cameco Corporation | | | | | |
| CCJ 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 65 | | | 1,950 |
| CCJ 140118P00017000 | | Expiration: January 2014, Exercise Price: $17.00 | | 219 | | | 14,235 |
| | | Dominion Diamond Corporation | | | | | |
| DDC 130817P00012500 | | Expiration: August 2013, Exercise Price: $12.50 | | 180 | | | 2,700 |
| DDC 130817P00015000 | | Expiration: August 2013, Exercise Price: $15.00 | | 170 | | | 22,100 |
| | | Franco-Nevada Corporation | | | | | |
| FNV 131019P00030000 | | Expiration: October 2013, Exercise Price: $30.00 | | 89 | | | 10,457 |
| | | Freeport-McMoRan Copper & Gold Inc. | | | | | |
| FCX 140118P00024000 | | Expiration: January 2014, Exercise Price: $24.00 | | 58 | | | 9,541 |
| | | McEwen Mining Inc. | | | | | |
| MUX 140118P00002500 | | Expiration: January 2014, Exercise Price: $2.50 | | 48 | | | 4,680 |
| | | Natural Resource Partners LP | | | | | |
| NRP 130720P00020000 | | Expiration: July 2013, Exercise Price: $20.00 | | 370 | | | 12,025 |
| NRP 131019P00020000 | | Expiration: October 2013, Exercise Price: $20.00 | | 30 | | | 3,525 |
| | | Newmont Mining Corporation | | | | | |
| NEM 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 50 | | | 20,000 |
| | | Rio Tinto PLC — ADR | | | | | |
| RIO 140118P00032500 | | Expiration: January 2014, Exercise Price: $32.50 | | 35 | | | 4,375 |
| RIO 140118P00037500 | | Expiration: January 2014, Exercise Price: $37.50 | | 36 | | | 9,810 |
| RIO 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 50 | | | 19,000 |
| RIO 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 5 | | | 3,575 |
| | | Silver Wheaton Corporation | | | | | |
| SLW 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 25 | | | 8,563 |
| | | Vale SA | | | | | |
| VALE 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 100 | | | 27,000 |
| | | | | | | | 235,476 |
| | | Miscellaneous Manufacturing | | | | | |
| | | 3M Co. | | | | | |
| MMM 140118P00080000 | | Expiration: January 2014, Exercise Price: $80.00 | | 10 | | | 765 |
| MMM 140118P00090000 | | Expiration: January 2014, Exercise Price: $90.00 | | 33 | | | 4,900 |
| | | Hasbro, Inc. | | | | | |
| HAS 150117P00040000 | | Expiration: January 2015, Exercise Price: $40.00 | | 7 | | | 2,835 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Miscellaneous Manufacturing — (Continued) | | | | | |
| | | International Game Technology | | | | | |
| IGT 140118P00010000 | | Expiration: January 2014, Exercise Price: $10.00 | | 104 | | $ | 1,560 |
| IGT 140118P00013000 | | Expiration: January 2014, Exercise Price: $13.00 | | 457 | | | 22,850 |
| IGT 150117P00010000 | | Expiration: January 2015, Exercise Price: $10.00 | | 20 | | | 1,200 |
| | | | | | | | 34,110 |
| | | Motion Picture and Sound Recording Industries | | | | | |
| | | DreamWorks Animation SKG, Inc. — Class A | | | | | |
| DWA 130921P00015000 | | Expiration: September 2013, Exercise Price: $15.00 | | 82 | | | 410 |
| DWA 130921P00017500 | | Expiration: September 2013, Exercise Price: $17.50 | | 293 | | | 2,197 |
| | | | | | | | 2,607 |
| | | Motor Vehicle and Parts Dealers | | | | | |
| | | AutoNation, Inc. | | | | | |
| AN 130720P00038000 | | Expiration: July 2013, Exercise Price: $38.00 | | 30 | | | 375 |
| AN 131019P00038000 | | Expiration: October 2013, Exercise Price: $38.00 | | 40 | | | 3,100 |
| | | Penske Automotive Group, Inc. | | | | | |
| PAG 131116P00025000 | | Expiration: November 2013, Exercise Price: $25.00 | | 30 | | | 2,850 |
| | | | | | | | 6,325 |
| | | Nonmetallic Mineral Product Manufacturing | | | | | |
| | | USG Corporation | | | | | |
| USG 150117P00020000 | | Expiration: January 2015, Exercise Price: $20.00 | | 16 | | | 6,160 |
| | | Non-Store Retailers | | | | | |
| | | eBay, Inc. | | | | | |
| EBAY 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 2 | | | 411 |
| | | Liberty Interactive Corporation — Class A | | | | | |
| LINTA 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 72 | | | 5,040 |
| | | Sotheby’s | | | | | |
| BID 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 133 | | | 5,320 |
| BID 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 120 | | | 16,500 |
| BID 150117P00028000 | | Expiration: January 2015, Exercise Price: $28.00 | | 17 | | | 5,100 |
| | | | | | | | 32,371 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Oil and Gas Extraction | | | | | |
| | | Canadian Natural Resources Ltd. | | | | | |
| CNQ 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 117 | | $ | 14,625 |
| CNQ 140118P00028000 | | Expiration: January 2014, Exercise Price: $28.00 | | 193 | | | 47,285 |
| | | Canadian Oil Sands Ltd. | | | | | |
| COS 140118P00020000 | | Expiration: January 2014, Exercise Price: | | | | | |
| | | CAD $20.00 | | 275 | | | 48,374 |
| | | Continental Resources, Inc. | | | | | |
| CLR 150117P00055000 | | Expiration: January 2015, Exercise Price: $55.00 | | 1 | | | 390 |
| CLR 150117P00070000 | | Expiration: January 2015, Exercise Price: $70.00 | | 9 | | | 7,335 |
| | | Encana Corporation | | | | | |
| ECA 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 18 | | | 1,575 |
| ECA 140118P00018000 | | Expiration: January 2014, Exercise Price: $18.00 | | 419 | | | 100,560 |
| | | EXCO Resources, Inc. | | | | | |
| XCO 140118P00005000 | | Expiration: January 2014, Exercise Price: $5.00 | | 600 | | | 10,500 |
| | | Occidental Petroleum Corporation | | | | | |
| OXY 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 91 | | | 4,686 |
| OXY 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00 | | 40 | | | 9,800 |
| OXY 140118P00077500 | | Expiration: January 2014, Exercise Price: $77.50 | | 4 | | | 1,202 |
| | | Penn West Petroleum Ltd. | | | | | |
| PWE 130921P00008000 | | Expiration: September 2013, Exercise Price: $8.00 | | 100 | | | 1,250 |
| | | StatoilHydro ASA — ADR | | | | | |
| STO 130720P00022500 | | Expiration: July 2013, Exercise Price: $22.50 | | 88 | | | 16,060 |
| STO 131019P00022500 | | Expiration: October 2013, Exercise Price: $22.50 | | 125 | | | 27,188 |
| | | Suncor Energy, Inc. | | | | | |
| SU 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 100 | | | 5,650 |
| SU 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 32 | | | 2,960 |
| | | Total SA — ADR | | | | | |
| TOT 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 14 | | | 1,155 |
| TOT 140118P00042500 | | Expiration: January 2014, Exercise Price: $42.50 | | 22 | | | 2,970 |
| TOT 140118P00045000 | | Expiration: January 2014, Exercise Price: $45.00 | | 35 | | | 7,175 |
| | | WPX Energy Inc. | | | | | |
| WPX 140118P00012500 | | Expiration: January 2014, Exercise Price: $12.50 | | 302 | | | 5,285 |
| WPX 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 229 | | | 13,740 |
| WPX 140118P00017500 | | Expiration: January 2014, Exercise Price: $17.50 | | 10 | | | 1,400 |
| | | | | | | | 331,165 |
| | | Performing Arts, Spectator Sports, and Related Industries | | | | | |
| | | Live Nation Entertainment, Inc. | | | | | |
| LYV 150117P00012000 | | Expiration: January 2015, Exercise Price: $12.00 | | 14 | | | 1,960 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Petroleum and Coal Products Manufacturing | | | | | |
| | | CVR Refining LP | | | | | |
| CVRR 130921P00025000 | | Expiration: September 2013, Exercise Price: $25.00 | | 170 | | $ | 8,075 |
| | | Exxon Mobile Corporation | | | | | |
| XOM 140118P00082500 | | Expiration: January 2014, Exercise Price: $82.50 | | 20 | | | 5,180 |
| | | Hess Corporation | | | | | |
| HES 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 134 | | | 31,758 |
| | | Imperial Oil Ltd. | | | | | |
| IMO 131116P00035000 | | Expiration: November 2013, Exercise Price: $35.00 | | 100 | | | 9,500 |
| | | Murphy Oil Corporation | | | | | |
| MUR 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 138 | | | 27,945 |
| MUR 140118P00055000 | | Expiration: January 2014, Exercise Price: $55.00 | | 14 | | | 3,885 |
| | | | | | | | 86,343 |
| | | Pharmaceutical and Biotechnology | | | | | |
| | | Novartis AG — ADR | | | | | |
| NVS 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 15 | | | 375 |
| | | Sanofi — ADR | | | | | |
| SNY 130921P00041000 | | Expiration: September 2013, Exercise Price: $41.00 | | 95 | | | 2,613 |
| | | | | | | | 2,988 |
| | | Pipeline Transportation | | | | | |
| | | The Williams Companies, Inc. | | | | | |
| WMB 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 7 | | | 2,993 |
| | | Primary Metal Manufacturing | | | | | |
| | | ArcelorMittal | | | | | |
| MT 140118P00010000 | | Expiration: January 2014, Exercise Price: $10.00 | | 100 | | | 7,900 |
| | | Mueller Industries, Inc. | | | | | |
| MLI 130921P00050000 | | Expiration: September 2013, Exercise Price: $50.00 | | 10 | | | 2,100 |
| | | | | | | | 10,000 |
| | | Professional, Scientific, and Technical Services | | | | | |
| | | Automatic Data Processing, Inc. | | | | | |
| ADP 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 52 | | | 2,210 |
| ADP 140118P00052500 | | Expiration: January 2014, Exercise Price: $52.50 | | 3 | | | 158 |
| | | Charles River Laboratories International, Inc. | | | | | |
| CRL 130817P00030000 | | Expiration: August 2013, Exercise Price: $30.00 | | 50 | | | 375 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Professional, Scientific, and Technical Services — (Continued) | | | | | |
| | | Iron Mountain Inc. | | | | | |
| IRM 150117P00030000 | | Expiration: January 2015, Exercise Price: $30.00 | | 13 | | $ | 9,555 |
| | | | | | | | 12,298 |
| | | Publishing Industries (except Internet) | | | | | |
| | | News Corporation — Class A | | | | | |
| NWSA 140118P00022000 | | Expiration: January 2014, Exercise Price: $22.00 | | 84 | | | 1,680 |
| NWSA 150117P00027000 | | Expiration: January 2015, Exercise Price: $27.00 | | 37 | | | 8,603 |
| | | | | | | | 10,283 |
| | | Rail Transportation | | | | | |
| | | Canadian National Railway Company | | | | | |
| CNI 130720P00085000 | | Expiration: July 2013, Exercise Price: $85.00 | | 2 | | | 10 |
| CNI 130720P00090000 | | Expiration: July 2013, Exercise Price: $90.00 | | 7 | | | 105 |
| | | CSX Corporation | | | | | |
| CSX 140118P00017500 | | Expiration: January 2014, Exercise Price: $17.50 | | 69 | | | 2,553 |
| CSX 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 308 | | | 24,178 |
| | | Norfolk Southern Corporation | | | | | |
| NSC 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 22 | | | 3,080 |
| NSC 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 8 | | | 1,440 |
| NSC 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 56 | | | 12,880 |
| NSC 140118P00065000 | | Expiration: January 2014, Exercise Price: $65.00 | | 37 | | | 10,915 |
| NSC 150117P00065000 | | Expiration: January 2015, Exercise Price: $65.00 | | 7 | | | 4,900 |
| | | Union Pacific Corporation | | | | | |
| UNP 140118P00095000 | | Expiration: January 2014, Exercise Price: $95.00 | | 11 | | | 803 |
| UNP 140118P00100000 | | Expiration: January 2014, Exercise Price: $100.00 | | 5 | | | 462 |
| | | | | | | | 61,326 |
| | | Real Estate | | | | | |
| | | General Growth Properties, Inc. | | | | | |
| GGP 140118P00017000 | | Expiration: January 2014, Exercise Price: $17.00 | | 345 | | | 18,803 |
| | | Vornado Realty Trust — REIT | | | | | |
| VNO 140118P00079000 | | Expiration: January 2014, Exercise Price: $79.00 | | 1 | | | 425 |
| | | | | | | | 19,228 |
| | | Restaurants | | | | | |
| | | The Wendy’s Company | | | | | |
| WEN 130817P00005000 | | Expiration: August 2013, Exercise Price: $5.00 | | 150 | | | 1,125 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Satellite Telecommunications | | | | | |
| | | DISH Network Corp. — Class A | | | | | |
| DISH 140118P00029000 | | Expiration: January 2014, Exercise Price: $29.00 | | 3 | | $ | 202 |
| DISH 150117P00032000 | | Expiration: January 2015, Exercise Price: $32.00 | | 4 | | | 1,070 |
| | | | | | | | 1,272 |
| | | Securities, Commodity Contracts, and Other | | | | | |
| | | Financial Investments and Related Activities | | | | | |
| | | CBOE Holdings Inc. | | | | | |
| CBOE 140118P00024250 | | Expiration: January 2014, Exercise Price: $24.25 | | 33 | | | 495 |
| CBOE 140118P00026250 | | Expiration: January 2014, Exercise Price: $26.25 | | 82 | | | 1,640 |
| | | The Charles Schwab Corporation | | | | | |
| SCHW 140118P00012000 | | Expiration: January 2014, Exercise Price: $12.00 | | 110 | | | 1,100 |
| SCHW 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 140 | | | 4,200 |
| | | CME Group Inc. | | | | | |
| CME 140118P00042000 | | Expiration: January 2014, Exercise Price: $42.00 | | 28 | | | 770 |
| CME 140118P00048000 | | Expiration: January 2014, Exercise Price: $48.00 | | 75 | | | 3,375 |
| CME 140118P00052000 | | Expiration: January 2014, Exercise Price: $52.00 | | 2 | | | 125 |
| CME 150117P00047500 | | Expiration: January 2015, Exercise Price: $47.50 | | 25 | | | 5,250 |
| CME 150117P00057500 | | Expiration: January 2015, Exercise Price: $57.50 | | 2 | | | 810 |
| | | Interactive Brokers Group, Inc. — Class A | | | | | |
| IBKR 140118P00012000 | | Expiration: January 2014, Exercise Price: $12.00 | | 250 | | | 3,750 |
| | | Invesco Ltd. | | | | | |
| IVZ 130720P00022000 | | Expiration: July 2013, Exercise Price: $22.00 | | 110 | | | 550 |
| IVZ 131019P00026000 | | Expiration: October 2013, Exercise Price: $26.00 | | 120 | | | 5,700 |
| | | Morgan Stanley | | | | | |
| MS 140118P00015000 | | Expiration: January 2014, Exercise Price: $15.00 | | 232 | | | 7,540 |
| MS 140118P00017000 | | Expiration: January 2014, Exercise Price: $17.00 | | 232 | | | 12,296 |
| | | | | | | | 47,601 |
| | | Support Activities for Mining | | | | | |
| | | Halliburton Company | | | | | |
| HAL 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 180 | | | 11,250 |
| | | Transocean Ltd. | | | | | |
| RIG 150117P00045000 | | Expiration: January 2015, Exercise Price: $45.00 | | 20 | | | 14,000 |
| | | | | | | | 25,250 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | Support Activities for Transportation | | | | | |
| | | Expeditors International of Washington, Inc. | | | | | |
| EXPD 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 110 | | $ | 6,600 |
| EXPD 140118P00035000 | | Expiration: January 2014, Exercise Price: $35.00 | | 84 | | | 14,700 |
| EXPD 150117P00035000 | | Expiration: January 2015, Exercise Price: $35.00 | | 30 | | | 11,700 |
| | | | | | | | 33,000 |
| | | Telecommunications | | | | | |
| | | DIRECTV | | | | | |
| DTV 140118P00043000 | | Expiration: January 2014, Exercise Price: $43.00 | | 15 | | | 1,110 |
| DTV 140118P00050000 | | Expiration: January 2014, Exercise Price: $50.00 | | 2 | | | 304 |
| | | Vivendi SA | | | | | |
| EX1 131220P00015000 | | Expiration: December 2013, Exercise Price: €15.00 | | 250 | | | 44,913 |
| VVU 131220P00015000 | | Expiration: December 2013, Exercise Price: €15.00 | | 50 | | | 8,721 |
| | | Vodafone Group PLC — ADR | | | | | |
| VOD 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 321 | | | 13,643 |
| | | | | | | | 68,691 |
| | | Transportation Equipment Manufacturing | | | | | |
| | | American Railcar Industries, Inc. | | | | | |
| ARII 131221P00030000 | | Expiration: December 2013, Exercise Price: $30.00 | | 2 | | | 445 |
| | | The Boeing Company | | | | | |
| BA 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 31 | | | 1,364 |
| BA 140118P00065000 | | Expiration: January 2014, Exercise Price: $65.00 | | 14 | | | 721 |
| BA 140118P00067500 | | Expiration: January 2014, Exercise Price: $67.50 | | 9 | | | 562 |
| BA 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 12 | | | 912 |
| BA 140118P00072500 | | Expiration: January 2014, Exercise Price: $72.50 | | 1 | | | 90 |
| | | General Dynamics Corporation | | | | | |
| GD 140118P00057500 | | Expiration: January 2014, Exercise Price: $57.50 | | 20 | | | 1,750 |
| GD 140118P00060000 | | Expiration: January 2014, Exercise Price: $60.00 | | 25 | | | 2,813 |
| GD 140118P00062500 | | Expiration: January 2014, Exercise Price: $62.50 | | 60 | | | 8,400 |
| | | Honda Motor Co., Ltd. — ADR | | | | | |
| HMC 130720P00030000 | | Expiration: July 2013, Exercise Price: $30.00 | | 80 | | | 600 |
| | | Toyota Motor Corporation — ADR | | | | | |
| TM 140118P00070000 | | Expiration: January 2014, Exercise Price: $70.00 | | 16 | | | 632 |
| TM 140118P00075000 | | Expiration: January 2014, Exercise Price: $75.00. | | 14 | | | 770 |
| TM 140118P00085000 | | Expiration: January 2014, Exercise Price: $85.00 | | 15 | | | 1,702 |
| TM 140118P00087500 | | Expiration: January 2014, Exercise Price: $87.50 | | 25 | | | 3,413 |
| | | | | | | | 24,174 |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Multi-Disciplinary Portfolio Portfolio of Options Written — June 30, 2013 (Unaudited) — (Continued) |
| Identifier | | | | Contracts* | | | Value |
| | | U.S. Equity Exchanges | | | | | |
| | | The NASDAQ OMX Group, Inc. | | | | | |
| NDAQ 140118P00020000 | | Expiration: January 2014, Exercise Price: $20.00 | | 30 | | $ | 450 |
| NDAQ 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 100 | | | 3,500 |
| NDAQ 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 170 | | | 9,350 |
| NDAQ 140118P00027000 | | Expiration: January 2014, Exercise Price: $27.00 | | 51 | | | 4,462 |
| | | NYSE Euronext | | | | | |
| NYX 140118P00023000 | | Expiration: January 2014, Exercise Price: $23.00 | | 74 | | | 481 |
| NYX 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 4 | | | 20 |
| | | | | | | | 18,263 |
| | | Utilities | | | | | |
| | | FirstEnergy Corp. | | | | | |
| FE 140118P00040000 | | Expiration: January 2014, Exercise Price: $40.00 | | 75 | | | 33,375 |
| | | Veolia Environnement — ADR | | | | | |
| VE 130720P00010000 | | Expiration: July 2013, Exercise Price: $10.00 | | 130 | | | 650 |
| | | | | | | | 34,025 |
| | | Waste Management and Remediation Services | | | | | |
| | | Republic Services, Inc. | | | | | |
| RSG 130720P00030000 | | Expiration: July 2013, Exercise Price: $30.00 | | 100 | | | 1,250 |
| | | Waste Management, Inc. | | | | | |
| WM 140118P00025000 | | Expiration: January 2014, Exercise Price: $25.00 | | 35 | | | 350 |
| WM 140118P00030000 | | Expiration: January 2014, Exercise Price: $30.00 | | 57 | | | 1,425 |
| | | | | | | | 3,025 |
| | | TOTAL PUT OPTIONS WRITTEN | | | | | |
| | | (premiums received $4,558,317) | | | | $ | 2,474,301 |
| * | — 100 Shares Per Contract. |
| € | — Euros. |
| ADR | — American Depository Receipt. |
| e | — 1,000 shares per contract. |
| f | — 500 shares per contract. |
| ETF | — Exchange Traded Fund. |
| REIT | — Real Estate Investment Trust. |
| HKD | — Hong Kong Dollars. |
| CAD | — Canadian Dollars. |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Assets & Liabilities June 30, 2013 (Unaudited) |
| | | The Internet | | | The Global | |
| | | Portfolio | | | Portfolio | |
| ASSETS: | | | | | | |
Investments, at value (1)(2) | | $ | 216,323,073 | | | $ | 10,473,831 | |
| Cash | | | — | | | | 446,274 | |
| Receivable for contributed capital | | | 128,941 | | | | 37,149 | |
| Receivable for investments sold | | | 15,435 | | | | 7,162 | |
| Dividends and interest receivable | | | 115,194 | | | | 10,833 | |
| Other accounts receivable | | | 99,877 | | | | 956 | |
| Other assets | | | 13,086 | | | | 1,886 | |
| Total Assets | | | 216,695,606 | | | | 10,978,091 | |
| LIABILITIES: | | | | | | | | |
| Payable to Adviser | | | 182,834 | | | | 9,174 | |
| Payable to Trustees and Officers | | | 2,975 | | | | 145 | |
| Payable for securities purchased | | | 19,549 | | | | 40,384 | |
| Payable for collateral received for securities loaned | | | 38,696,520 | | | | 1,943,040 | |
| Payable for withdrawn capital | | | 45,408 | | | | 179 | |
| Accrued expenses and other liabilities | | | 34,047 | | | | 11,863 | |
| Total Liabilities | | | 38,981,333 | | | | 2,004,785 | |
| Net Assets | | $ | 177,714,273 | | | $ | 8,973,306 | |
(1) Cost of investments | | $ | 155,282,005 | | | $ | 9,313,101 | |
(2) Includes loaned securities with a market value of | | $ | 37,536,613 | | | $ | 1,884,990 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Assets & Liabilities — (Continued) June 30, 2013 (Unaudited) |
| | | The Paradigm | | | The Medical | |
| | | Portfolio | | | Portfolio | |
| ASSETS: | | | | | | |
Investments, at value (1)(2) | | $ | 1,279,026,869 | | | $ | 30,903,465 | |
| Cash | | | 28,350 | | | | — | |
| Receivable for contributed capital | | | 5,534,426 | | | | 21,874 | |
| Dividends and interest receivable | | | 1,253,513 | | | | 26,347 | |
| Other accounts receivable | | | 4,873 | | | | — | |
| Other assets | | | 90,563 | | | | 8,537 | |
| Total Assets | | | 1,285,938,594 | | | | 30,960,223 | |
| LIABILITIES: | | | | | | | | |
| Payable to Adviser | | | 1,114,337 | | | | 23,470 | |
| Payable to Trustees and Officers | | | 17,628 | | | | 366 | |
| Payable for securities purchased | | | 168,183 | | | | — | |
| Payable for collateral received for securities loaned | | | 185,945,676 | | | | 8,452,914 | |
| Payable for withdrawn capital | | | 1,033,923 | | | | 44,980 | |
| Accrued expenses and other liabilities | | | 161,122 | | | | 10,803 | |
| Total Liabilities | | | 188,440,869 | | | | 8,532,533 | |
| Net Assets | | $ | 1,097,497,725 | | | $ | 22,427,690 | |
(1) Cost of investments | | $ | 1,051,964,377 | | | $ | 28,602,075 | |
(2) Includes loaned securities with a market value of | | $ | 180,103,335 | | | $ | 7,887,464 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Assets & Liabilities — (Continued) June 30, 2013 (Unaudited) |
| | | The Small Cap | | | The Market | |
| | | Opportunities | | | Opportunities | |
| | | Portfolio | | | Portfolio | |
| ASSETS: | | | | | | |
Investments, at value (1)(2) | | $ | 208,943,225 | | | $ | 72,145,443 | |
| Cash | | | — | | | | 749 | |
| Receivable for contributed capital | | | 729,346 | | | | 63,778 | |
| Receivable for investments sold | | | — | | | | 538,310 | |
| Dividends and interest receivable | | | 326,192 | | | | 72,371 | |
| Other accounts receivable | | | 20,976 | | | | 243 | |
| Other assets | | | 10,109 | | | | 6,010 | |
| Total Assets | | | 210,029,848 | | | | 72,826,904 | |
| LIABILITIES: | | | | | | | | |
| Payable to Adviser | | | 160,509 | | | | 62,935 | |
| Payable to Trustees and Officers | | | 2,090 | | | | 971 | |
| Payable for securities purchased | | | 1,593,591 | | | | 9,656 | |
| Payable for collateral received for securities loaned | | | 45,095,910 | | | | 13,561,294 | |
| Payable for withdrawn capital | | | 60,074 | | | | 2,486 | |
| Accrued expenses and other liabilities | | | 27,079 | | | | 18,164 | |
| Total Liabilities | | | 46,939,253 | | | | 13,655,506 | |
| Net Assets | | $ | 163,090,595 | | | $ | 59,171,398 | |
(1) Cost of investments | | $ | 173,992,258 | | | $ | 60,531,322 | |
(2) Includes loaned securities with a market value of | | $ | 43,583,684 | | | $ | 13,196,155 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Assets & Liabilities — (Continued) June 30, 2013 (Unaudited) |
| | | The Alternative | | | The Multi- | |
| | | Income | | | Disciplinary | |
| | | Portfolio | | | Portfolio | |
| ASSETS: | | | | | | |
Investments, at value (1)(2) | | $ | 17,796,136 | | | $ | 68,021,378 | |
| Cash | | | 1,799,474 | | | | 27,820,230 | |
| Receivable for contributed capital | | | 70,000 | | | | 1,253,794 | |
| Receivable for investments sold | | | 3,772 | | | | 1,794 | |
| Dividends and interest receivable | | | 65,131 | | | | 581,203 | |
| Other assets | | | 730 | | | | 3,136 | |
| Total Assets | | �� | 19,735,243 | | | | 97,681,535 | |
| LIABILITIES: | | | | | | | | |
Written options, at value (3) | | | 617,988 | | | | 2,474,301 | |
| Payable to Adviser | | | 13,117 | | | | 96,206 | |
| Payable to Trustees and Officers | | | 288 | | | | 1,363 | |
| Payable for securities purchased | | | 750 | | | | 28,355 | |
| Payable for collateral received for securities loaned | | | 1,358,632 | | | | 1,462,640 | |
| Payable for withdrawn capital | | | 11,172 | | | | 527,804 | |
| Accrued expenses and other liabilities | | | 14,416 | | | | 24,315 | |
| Total Liabilities | | | 2,016,363 | | | | 4,614,984 | |
| Net Assets | | $ | 17,718,880 | | | $ | 93,066,551 | |
(1) Cost of investments | | $ | 17,917,083 | | | $ | 71,125,367 | |
(2) Includes loaned securities with a market value of | | $ | 1,323,456 | | | $ | 1,438,865 | |
(3) Premiums received | | $ | 939,037 | | | $ | 4,558,317 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Operations For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Internet | | | The Global | |
| | | Portfolio | | | Portfolio | |
| INVESTMENT INCOME: | | | | | | |
| Dividends† | | $ | 524,139 | | | $ | 61,525 | |
| Interest | | | 1,233 | | | | 54 | |
| Income from securities lending | | | 43,243 | | | | 6,128 | |
| Total investment income | | | 568,615 | | | | 67,707 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 1,071,912 | | | | 49,712 | |
| Administration fees | | | 39,737 | | | | 1,815 | |
| Professional fees | | | 10,460 | | | | 4,143 | |
| Fund accounting fees | | | 18,984 | | | | 3,467 | |
| Trustees’ and Officers’ fees and expenses | | | 8,923 | | | | 422 | |
| Custodian fees and expenses | | | 20,895 | | | | 8,045 | |
| Other expenses | | | 3,764 | | | | 151 | |
| Total expenses | | | 1,174,675 | | | | 67,755 | |
| Net investment loss | | | (606,060 | ) | | | (48 | ) |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 2,511,921 | | | | 79,014 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 23,053,815 | | | | 521,674 | |
| Net realized and unrealized gain on investments | | | 25,565,736 | | | | 600,688 | |
| Net increase in net assets resulting from operations | | $ | 24,959,676 | | | $ | 600,640 | |
| † Net of foreign taxes withheld of: | | $ | 8,004 | | | $ | 4,137 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Operations — (Continued) For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Paradigm | | | The Medical | |
| | | Portfolio | | | Portfolio | |
| INVESTMENT INCOME: | | | | | | |
| Dividends† | | $ | 5,901,264 | | | $ | 290,815 | |
| Interest | | | 253,258 | | | | 56 | |
| Income from securities lending | | | 356,690 | | | | 32,011 | |
| Total investment income | | | 6,511,212 | | | | 322,882 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 6,310,013 | | | | 127,789 | |
| Administration fees | | | 234,479 | | | | 4,690 | |
| Professional fees | | | 39,259 | | | | 4,556 | |
| Fund accounting fees | | | 97,108 | | | | 3,322 | |
| Trustees’ and Officers’ fees and expenses | | | 49,665 | | | | 976 | |
| Custodian fees and expenses | | | 59,339 | | | | 2,823 | |
| Other expenses | | | 27,048 | | | | 574 | |
| Total expenses | | | 6,816,911 | | | | 144,730 | |
| Net investment income (loss) | | | (305,699 | ) | | | 178,152 | |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 3,763,970 | | | | 545,772 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 180,925,422 | | | | 3,478,493 | |
| Net realized and unrealized gain on investments | | | 184,689,392 | | | | 4,024,265 | |
| Net increase in net assets resulting from operations | | $ | 184,383,693 | | | $ | 4,202,417 | |
| † Net of foreign taxes withheld of: | | $ | 367,486 | | | $ | 13,542 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Operations — (Continued) For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Small Cap | | | The Market | |
| | | Opportunities | | | Opportunities | |
| | | Portfolio | | | Portfolio | |
| INVESTMENT INCOME: | | | | | | |
| Dividends† | | $ | 920,941 | | | $ | 523,753 | |
| Interest | | | 481 | | | | 354 | |
| Income from securities lending | | | 32,097 | | | | 20,878 | |
| Total investment income | | | 953,519 | | | | 544,985 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 756,126 | | | | 340,453 | |
| Administration fees | | | 27,686 | | | | 12,478 | |
| Professional fees | | | 7,760 | | | | 5,693 | |
| Fund accounting fees | | | 12,854 | | | | 7,551 | |
| Trustees’ and Officers’ fees and expenses | | | 5,450 | | | | 2,600 | |
| Custodian fees and expenses | | | 8,698 | | | | 8,114 | |
| Other expenses | | | 2,634 | | | | 1,286 | |
| Total expenses | | | 821,208 | | | | 378,175 | |
| Net investment income | | | 132,311 | | | | 166,810 | |
| REALIZED AND UNREALIZED GAIN ON INVESTMENTS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 1,752,375 | | | | 2,093,589 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 25,226,637 | | | | 7,757,384 | |
| Net realized and unrealized gain on investments | | | 26,979,012 | | | | 9,850,973 | |
| Net increase in net assets resulting from operations | | $ | 27,111,323 | | | $ | 10,017,783 | |
| † Net of foreign taxes withheld of: | | $ | 10,412 | | | $ | 32,334 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Operations — (Continued) For the Six Months Ended June 30, 2013 (Unaudited) |
| | | The Alternative | | | The Multi- | |
| | | Income | | | Disciplinary | |
| | | Portfolio | | | Portfolio | |
| INVESTMENT INCOME: | | | | | | |
| Dividends | | $ | 16,312 | | | $ | 31,605 | |
| Interest | | | 34,911 | | | | 1,358,233 | |
| Income from securities lending | | | 518 | | | | 5,742 | |
| Total investment income | | | 51,741 | | | | 1,395,580 | |
| EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 67,395 | | | | 497,366 | |
| Administration fees | | | 3,444 | | | | 19,804 | |
| Professional fees | | | 4,364 | | | | 6,833 | |
| Fund accounting fees | | | 13,516 | | | | 17,583 | |
| Trustees’ and Officers’ fees and expenses | | | 714 | | | | 3,870 | |
| Custodian fees and expenses | | | 3,320 | | | | 5,075 | |
| Borrowing expense on securities sold short | | | — | | | | 7,109 | |
| Other expenses | | | 392 | | | | 1,152 | |
| Total expenses | | | 93,145 | | | | 558,792 | |
| Net investment income (loss) | | | (41,404 | ) | | | 836,788 | |
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | |
| Investments and foreign currency | | | (14,412 | ) | | | 937,810 | |
| Written option contracts expired or closed | | | (40,219 | ) | | | 409,648 | |
| Securities sold short | | | — | | | | (141,511 | ) |
| Realized gain distributions received from other investment companies | | | — | | | | 21,512 | |
| Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
| Investments and foreign currency | | | (70,987 | ) | | | (1,989,348 | ) |
| Written option contracts | | | 320,879 | | | | (372,738 | ) |
| Securities sold short | | | — | | | | (10,217 | ) |
| Net realized and unrealized gain (loss) on investments | | | 195,261 | | | | (1,144,844 | ) |
| Net increase (decrease) in net assets resulting from operations | | $ | 153,857 | | | $ | (308,056 | ) |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Changes in Net Assets |
| | | The Internet Portfolio | | | The Global Portfolio | |
| | | For the | | | For the | | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | | | Six Months Ended | | | Year Ended | |
| | | June 30, 2013 | | | December 31, | | | June 30, 2013 | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | (Unaudited) | | | 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (606,060 | ) | | $ | 189,258 | | | $ | (48 | ) | | $ | 22,327 | |
| Net realized gain on sale of investments and foreign currency | | | 2,511,921 | | | | 4,840,072 | | | | 79,014 | | | | 105,224 | |
| Net change in unrealized appreciation of investments and foreign currency | | | 23,053,815 | | | | 19,951,987 | | | | 521,674 | | | | 1,012,392 | |
| Net increase in net assets resulting from operations | | | 24,959,676 | | | | 24,981,317 | | | | 600,640 | | | | 1,139,943 | |
| NET INCREASE (DECREASE) IN NET | | | | | | | | | | | | | | | | |
| ASSETS RESULTING FROM | | | | | | | | | | | | | | | | |
| BENEFICIAL INTEREST | | | | | | | | | | | | | | | | |
| TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 5,822,534 | | | | 40,015,908 | | | | 2,474,391 | | | | 2,922,314 | |
| Withdrawals | | | (9,779,385 | ) | | | (13,342,552 | ) | | | (639,134 | ) | | | (1,645,472 | ) |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | (3,956,851 | ) | | | 26,673,356 | | | | 1,835,257 | | | | 1,276,842 | |
| Total increase in net assets | | | 21,002,825 | | | | 51,654,673 | | | | 2,435,897 | | | | 2,416,785 | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 156,711,448 | | | | 105,056,775 | | | | 6,537,409 | | | | 4,120,624 | |
| End of period | | $ | 177,714,273 | | | $ | 156,711,448 | | | $ | 8,973,306 | | | $ | 6,537,409 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Changes in Net Assets — (Continued) |
| | | The Paradigm Portfolio | | | The Medical Portfolio | |
| | | For the | | | For the | | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | | | Six Months Ended | | | Year Ended | |
| | | June 30, 2013 | | | December 31, | | | June 30, 2013 | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | (Unaudited) | | | 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (305,699 | ) | | $ | 4,387,305 | | | $ | 178,152 | | | $ | 308,836 | |
| Net realized gain on sale of investments and foreign currency | | | 3,763,970 | | | | 38,634,514 | | | | 545,772 | | | | 524,454 | |
| Net change in unrealized appreciation of investments and foreign currency | | | 180,925,422 | | | | 132,659,116 | | | | 3,478,493 | | | | 852,320 | |
| Net increase in net assets resulting from operations | | | 184,383,693 | | | | 175,680,935 | | | | 4,202,417 | | | | 1,685,610 | |
| NET INCREASE (DECREASE) IN NET | | | | | | | | | | | | | | | | |
| ASSETS RESULTING FROM | | | | | | | | | | | | | | | | |
| BENEFICIAL INTEREST | | | | | | | | | | | | | | | | |
| TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 72,476,185 | | | | 52,951,684 | | | | 4,152,403 | | | | 486,550 | |
| Withdrawals | | | (42,613,102 | ) | | | (190,008,480 | ) | | | (3,236,046 | ) | | | (5,069,761 | ) |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | 29,863,083 | | | | (137,056,796 | ) | | | 916,357 | | | | (4,583,211 | ) |
| Total increase (decrease) in net assets | | | 214,246,776 | | | | 38,624,139 | | | | 5,118,774 | | | | (2,897,601 | ) |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 883,250,949 | | | | 844,626,810 | | | | 17,308,916 | | | | 20,206,517 | |
| End of period | | $ | 1,097,497,725 | | | $ | 883,250,949 | | | $ | 22,427,690 | | | $ | 17,308,916 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Changes in Net Assets — (Continued) |
| | | The Small Cap | | | The Market | |
| | | Opportunities Portfolio | | | Opportunities Portfolio | |
| | | For the | | | For the | | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | | | Six Months Ended | | | Year Ended | |
| | | June 30, 2013 | | | December 31, | | | June 30, 2013 | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | (Unaudited) | | | 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 132,311 | | | $ | 225,038 | | | $ | 166,810 | | | $ | 196,072 | |
| Net realized gain on sale of investments and foreign currency | | | 1,752,375 | | | | 7,836,504 | | | | 2,093,589 | | | | 4,863,610 | |
| Net change in unrealized appreciation of investments and foreign currency | | | 25,226,637 | | | | 12,110,059 | | | | 7,757,384 | | | | 2,198,782 | |
| Net increase in net assets resulting from operations | | | 27,111,323 | | | | 20,171,601 | | | | 10,017,783 | | | | 7,258,464 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 56,193,154 | | | | 355,647 | | | | 16,098,837 | | | | 104,996 | |
| Withdrawals | | | (1,801,865 | ) | | | (21,968,834 | ) | | | (10,583,759 | ) | | | (6,941,845 | ) |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | 54,391,289 | | | | (21,613,187 | ) | | | 5,515,078 | | | | (6,836,849 | ) |
| Total increase (decrease) in net assets | | | 81,502,612 | | | | (1,441,586 | ) | | | 15,532,861 | | | | 421,615 | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 81,587,983 | | | | 83,029,569 | | | | 43,638,537 | | | | 43,216,922 | |
| End of period | | $ | 163,090,595 | | | $ | 81,587,983 | | | $ | 59,171,398 | | | $ | 43,638,537 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Statements of Changes in Net Assets — (Continued) |
| | | The Alternative | | | The Multi- | |
| | | Income Portfolio | | | Disciplinary Portfolio | |
| | | For the | | | For the | | | For the | | | For the | |
| | | Six Months Ended | | | Year Ended | | | Six Months Ended | | | Year Ended | |
| | | June 30, 2013 | | | December 31, | | | June 30, 2013 | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | (Unaudited) | | | 2012 | |
| OPERATIONS: | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (41,404 | ) | | $ | 229,919 | | | $ | 836,788 | | | $ | 1,367,871 | |
| Net realized gain (loss) on sale of investments, foreign currency, written options, securities sold short and distributions received from other investment companies | | | (54,631 | ) | | | 315,020 | | | | 1,227,459 | | | | 1,191,225 | |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency, written options and securities sold short | | | 249,892 | | | | 608,301 | | | | (2,372,303 | ) | | | 2,750,170 | |
| Net increase (decrease) in net assets resulting from operations | | | 153,857 | | | | 1,153,240 | | | | (308,056 | ) | | | 5,309,266 | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 8,700,083 | | | | 2,343,426 | | | | 36,063,351 | | | | 34,091,277 | |
| Withdrawals | | | (1,930,398 | ) | | | (6,080,519 | ) | | | (2,239,627 | ) | | | (3,583,117 | ) |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | 6,769,685 | | | | (3,737,093 | ) | | | 33,823,724 | | | | 30,508,160 | |
| Total increase (decrease) in net assets | | | 6,923,542 | | | | (2,583,853 | ) | | | 33,515,668 | | | | 35,817,426 | |
| NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 10,795,338 | | | | 13,379,191 | | | | 59,550,883 | | | | 23,733,457 | |
| End of period | | $ | 17,718,880 | | | $ | 10,795,338 | | | $ | 93,066,551 | | | $ | 59,550,883 | |
The accompanying notes are an integral part of these financial statements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements June 30, 2013 (Unaudited) |
The Kinetics Portfolios Trust (the “Trust”) was organized as a Delaware Statutory Trust on March 14, 2000 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company issuing its beneficial interests in series, each series representing a distinct portfolio with its own investment objective and policies. The series currently authorized are: The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Alternative Income Portfolio and The Multi-Disciplinary Portfolio (collectively, the “Master Portfolios”). Pursuant to the 1940 Act, the Master Portfolios, are “non-diversified” series of the Trust. The Market Opportunities Portfolio commenced operations on January 31, 2006, The Alternative Income Portfolio commenced operations on June 29, 2007 and The Multi-Disciplinary Portfolio commenced operations on February 11, 2008. Each of the remaining Master Portfolios commenced operations on April 28, 2000.
Each Master Portfolio is a Master Investment Portfolio in a master-feeder fund structure. Each Master Portfolio has multiple feeder funds invested in the Master Portfolio. By contributing assets to the Master Portfolio, the feeder funds receive a beneficial interest in the Master Portfolio. The Master Portfolio then invests the contributed assets in portfolio securities and allocates income, gains (losses) and expenses to the feeder funds based on the feeder funds’ proportionate interests in the Master Portfolio.
Each of the Master Portfolios, except for The Alternative Income Portfolio and The Multi-Disciplinary Portfolio, seeks to provide investors with long-term capital growth. The Alternative Income Portfolio seeks to provide current income and gains. The Multi-Disciplinary Portfolio seeks to provide investors with total return. The Internet Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in the Internet and Internet-related activities. The Global Portfolio generally invests in the equity securities of foreign companies that have the ability to facilitate an increase in the growth of their traditional business lines and in U.S. companies benefiting from international economic growth. The Paradigm Portfolio invests primarily in the equity securities of U.S. and foreign companies that the investment adviser believes are undervalued and that have high returns on equity and are well positioned to reduce their costs, extend the reach of their distribution channels and experience significant growth in their assets or revenues. The Medical Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in medical research, pharmaceutical
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
treatments and related medical technology industries and related technology industries, generally, with a focus on companies engaged in cancer research and drug development. The Small Cap Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign small capitalized companies that provide attractive valuation opportunities due to special situations such as lack of institutional ownership, lack of significant analyst coverage or companies with sound fundamentals that have experienced a short-term earnings shortfall. The Market Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in capital markets or related to capital markets, as well as companies involved in the gaming industry. The Alternative Income and Multi-Disciplinary Portfolios utilizes a two-part investment strategy, which includes fixed income and derivatives components.
2. Significant Accounting Policies
Security Valuation
Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which an option is quoted thus providing a view across the entire U.S. options marketplace. Composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. If the composite option price is not available, the mean between the highest bid and the lowest asked quotations at the close of the exchanges will be used. If none of the above are available, exchange traded options are valued at the last quoted sales price. Non-exchange traded options for which over-the-counter quotations are not readily available are valued at the
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
mean of the current bid and asked prices. Fixed-income securities (other than obligations having a maturity of 60 days or less) are normally valued on the basis of quotes obtained from pricing services, which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Instruments with remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value. Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Advisor or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Advisor; (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At June 30, 2013, 0.00%, 0.00%, 0.00%, 0.00% and 0.00% of the net assets of The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio and The Market Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at June 30, 2013.
Repurchase Agreements
Each Master Portfolio may enter into repurchase agreements with banks that are members of the Federal Reserve System or securities dealers who are members of a national securities exchange or are primary dealers in U.S. Government Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 102% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults, and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Written Options
The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When a Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.
Foreign Currency Translations
The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market value of investment securities and other assets and liabilities are translated at the exchange rate of such currencies against the U.S. dollar, as provided by an approved pricing service, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. The Master Portfolios do not isolate and treat as ordinary income that portion of the results of operations arising as a result of changes in the exchange rate from the fluctuations arising from changes in the market prices of securities held during the period. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Restricted and Illiquid Securities
The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At June 30, 2013 the following Master Portfolios held securities restricted to institutional investors (144A Securities):
| | | | | | Percentage of |
| | | Market Value | | Net Assets |
| The Multi-Disciplinary Portfolio | | $ | 8,991,437 | | | | 9.66 | % |
An illiquid asset is any asset which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the Master Portfolio has valued the investment. At June 30, 2013, the following Master Portfolios held illiquid securities:
| | | | | | Percentage of |
| | | Market Value | | Net Assets |
| The Internet Portfolio | | $ | 0.00 | | | | 0.00 | % |
| The Global Portfolio | | | 0.00 | | | | 0.00 | % |
| The Paradigm Portfolio | | | 0.00 | | | | 0.00 | % |
| The Medical Portfolio | | | 0.00 | | | | 0.00 | % |
| The Market Opportunities Portfolio | | | 0.00 | | | | 0.00 | % |
When-Issued Securities
The Master Portfolios may purchase securities on a when-issued or delayed delivery basis. Although the purchase amounts of these securities are established at the time the purchaser enters into the agreement, these securities may be delivered and paid for at a future date. The Master Portfolios record purchases of when-issued securities and reflect the values of such securities in determining net asset value in the same manner as other portfolio securities. The Master Portfolios maintain at all times cash or other liquid assets in an amount at least equal to the amount of outstanding commitments for when-issued securities.
Securities Lending
Each Master Portfolio may lend its portfolio securities to broker-dealers by entering directly into lending arrangements with such broker dealers or indirectly through repurchase agreements with respect to no more than 33 1/3% of the total assets of each Master Portfolio (including any collateral posted) or 50% of the total assets of each Master Portfolio (excluding any collateral posted).
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Securities lending and repurchase transactions will be fully collateralized at all times with cash and/or short-term debt obligations. The Master Portfolios receive interest on the collateral received as well as a fee for the securities loaned.
Short-Term Investments
The Portfolios may invest in money market funds and short-term high quality debt securities such as commercial paper, repurchase agreements and certificates of deposit. Money market funds typically invest in short-term instruments and attempt to maintain a stable net asset value. While the risk is low, these funds may lose value. At June 30, 2013, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Alternative Income Portfolio, and The Multi-Disciplinary Portfolio invested approximately 22%, 22%, 17%, 38%, 28%, 23%, 8% and 2%, respectively, of net assets in the Mount Vernon Securities Lending Trust-Prime Portfolio which normally invests in short-term instruments with an objective of maximizing current income to the extent consistent with the preservation of capital and liquidity. Mount Vernon Securities Lending Trust-Prime Portfolio’s financial statements are available on the SEC website www.sec.gov.
Expense Allocation
Common expenses incurred by the Master Portfolios are allocated among the Master Portfolios (i) based upon relative average net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the Master Portfolios, depending on the nature of the expenditure. All expenses incurred by the Master Portfolios are allocated to the feeder funds daily based on their proportionate interests in the respective Master Portfolios.
Federal Income Taxes
Each Master Portfolio will be treated as a partnership for federal income tax purposes. As such, each investor in a Master Portfolio will be subject to taxation on its share of the Master Portfolio’s ordinary income and capital gains. It is intended that each Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of subchapter M of the Internal Revenue Code.
There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
returns. As of June 30, 2013, open tax years include the tax years ended December 31, 2009 through 2012. The Master Portfolios are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Other
Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis and includes amortization of premiums and discounts on the interest method. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
3. Investment Adviser
The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management LLC (the “Adviser”), with whom certain Officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Master Portfolios. The Adviser is a wholly-owned subsidiary of Horizon Kinetics LLC. Under the terms of the Agreements, the Master Portfolios, except the Alternative Income Portfolio, compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets. The Alternative Income Portfolio began compensating the Adviser for its management services at the annual rate of 0.90% of the Master Portfolio’s average daily net assets beginning January 1, 2013.
For the six months ended June 30, 2013, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Alternative Income Portfolio and The Multi-Disciplinary Portfolio incurred expenses of $1,071,912, $49,712, $6,310,013, $127,789, $756,126, $340,453, $67,395 and $497,366, respectively, pursuant to the Agreements.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
For the six months ended June 30, 2013, the Trust was allocated $13,000 for the services of the Chief Compliance Officer employed by the Adviser.
4. Approval of Investment Advisory Contracts by Trustees of Kinetics Portfolios Trust
At a meeting of the Board of Trustees of the Trust held on March 11, 2013, the Board, including all of the Trustees who are not interested persons under the 1940 Act (the “Independent Trustees”), approved the Agreements with respect to each Master Portfolio. In reaching a decision to renew the Advisory Agreements, the Board of Trustees, including all of the Independent Trustees, considered, among others (1) the nature, extent and quality of the services provided by the Adviser; (2) the performance of the Master Portfolios over the previous three months as well as the one, three and five-year periods ended December 31, 2012, as compared to the median of their relevant Lipper, Inc. (“Lipper”) peer group(s); (3) the contractual and actual compensation to be paid under the Agreements as compared to the compensation paid to relevant Lipper peer groups; (4) the expense ratios of the Master Portfolios, with expense waivers, as compared to expense ratios for relevant peer groups of Lipper portfolios; (5) the experience and qualifications of the Adviser’s personnel and the Adviser’s portfolio management capabilities and investment methodologies; (6) the Adviser’s operations, compliance program and policies with respect to the Code of Ethics; (7) the financial condition of the Adviser; (8) the cost of services to be provided by the Adviser and the Adviser’s profitability from each Master Portfolio for the year ended December 31, 2012; (9) the “fall-out” benefits to the Adviser and its affiliates from the relationship with the Master Portfolios; (10) the extent to which economies of scale are relevant given the Master Portfolios’ current asset size and current asset growth potential; and (11) that each Master Portfolio is designed for long-term investors. The Lipper peer group information was provided by U.S. Bancorp Fund Services, LLC, the Trust’s administrator. The Independent Trustees also discussed the continuing viability of the Master Portfolios.
The Board of Trustees, including a majority of the Independent Trustees, concluded that: they were satisfied with the quality of services provided by the Adviser in advising the Master Portfolios, the profits earned by the Adviser were reasonable in light of the nature, extent and quality of the services provided to
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
each Master Portfolio; and that each Master Portfolio was not large enough to attain significant economies of scale. Based on the factors considered, the Board of Trustees, including a majority of the Independent Trustees, concluded that it was appropriate to renew the Agreements.
5. Securities Transactions
Purchases and sales of investment securities, other than short-term investments, for the six months ended June 30, 2013 were as follows:
| | | Purchases | | | Sales | |
| | | U.S. | | | | | | U.S. | | | | |
| | | Government | | | Other | | | Government | | | Other | |
| The Internet Portfolio | | $ | — | | | $ | 7,464,917 | | | $ | — | | | $ | 5,456,626 | |
| The Global Portfolio | | | — | | | | 1,424,527 | | | | — | | | | 430,386 | |
| The Paradigm Portfolio | | | — | | | | 22,257,740 | | | | — | | | | 18,330,273 | |
| The Medical Portfolio | | | — | | | | 2,517,282 | | | | — | | | | 1,415,385 | |
| The Small Cap Opportunities Portfolio | | | — | | | | 50,041,688 | | | | — | | | | 1,180,096 | |
| The Market Opportunities Portfolio | | | — | | | | 8,242,662 | | | | — | | | | 4,734,767 | |
| The Alternative Income Portfolio | | | 944,181 | | | | 12,333,722 | | | | — | | | | 964,275 | |
| The Multi-Disciplinary Portfolio | | | — | | | | 26,884,818 | | | | — | | | | 22,856,791 | |
As of December 31, 2012, the cost of investments and unrealized appreciation (depreciation) on investment securities for federal income tax purposes was as follows:
| | | Net | | | | | | | | | | |
| | | Unrealized | | | | | | | | | | |
| | | Appreciation | | | Unrealized | | | Unrealized | | | Tax Cost of | |
| | | (Depreciation) | | | Appreciation | | | Depreciation | | | Investments | |
| The Internet Portfolio | | $ | 37,389,100 | | | $ | 47,503,009 | | | $ | (10,113,909 | ) | | $ | 141,405,165 | |
| The Global Portfolio | | | 530,504 | | | | 971,345 | | | | (440,841 | ) | | | 7,254,536 | |
| The Paradigm Portfolio | | | 14,767,687 | | | | 141,174,440 | | | | (126,406,753 | ) | | | 1,011,194,563 | |
| The Medical Portfolio | | | (1,247,742 | ) | | | 3,320,860 | | | | (4,568,602 | ) | | | 24,573,223 | |
| The Small Cap Opportunities Portfolio | | | 7,281,567 | | | | 15,654,118 | | | | (8,372,551 | ) | | | 91,276,180 | |
| The Market Opportunities Portfolio | | | 2,202,755 | | | | 7,989,874 | | | | (5,787,119 | ) | | | 52,034,968 | |
| The Alternative Income Portfolio | | | (50,313 | ) | | | 73,341 | | | | (123,654 | ) | | | 2,714,513 | |
| The Multi-Disciplinary Portfolio | | | (869,404 | ) | | | 4,870,213 | | | | (5,739,617 | ) | | | 62,524,120 | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
For the six months ended June 30, 2013, the Master Portfolios wrote the following options:
| | | Number | | | Premium | |
| | | of Contracts | | | Amount | |
| The Alternative Income Portfolio | | | | | | |
| Outstanding at the Beginning of the Year | | | 1,766 | | | $ | 301,071 | |
| Options Written | | | 4,637 | | | | 703,205 | |
| Options Expired | | | (5 | ) | | | (1,386 | ) |
| Options Closed | | | (652 | ) | | | (63,853 | ) |
| Outstanding at June 30, 2013 | | | 5,746 | | | $ | 939,037 | |
| | | | | | | | | |
| The Multi-Disciplinary Portfolio | | | | | | | | |
| Outstanding at the Beginning of the Year | | | 24,136 | | | $ | 5,091,981 | |
| Options Written | | | 24,808 | | | | 4,247,722 | |
| Options Exercised | | | (1,215 | ) | | | (302,011 | ) |
| Options Expired | | | (13,650 | ) | | | (2,450,811 | ) |
| Options Closed | | | (11,285 | ) | | | (2,028,564 | ) |
| Outstanding at June 30, 2013 | | | 22,794 | | | $ | 4,558,317 | |
6. Portfolio Securities Loaned
As of June 30, 2013, the Master Portfolios had loaned securities that were collateralized by cash. The cash collateral is invested by the custodian in a money market pooled account approved by the Adviser. Although risk is mitigated by the collateral, a Master Portfolio could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. The Master Portfolio receives interest on the collateral received as well as a fee for the securities loaned. The Master Portfolios will continue to receive dividends and interest on all securities loaned. Gain or loss in the fair value of the securities loaned that may occur during the term of the loan will be accounted for by the Master Portfolios. The value of the securities on loan and the value of the related collateral at June 30, 2013, were as follows:
| | | Securities | | | Collateral | |
| The Internet Portfolio | | $ | 37,536,613 | | | $ | 38,696,520 | |
| The Global Portfolio | | | 1,884,990 | | | | 1,943,040 | |
| The Paradigm Portfolio | | | 180,103,335 | | | | 185,945,676 | |
| The Medical Portfolio | | | 7,887,464 | | | | 8,452,914 | |
| The Small Cap Opportunities Portfolio | | | 43,583,684 | | | | 45,095,910 | |
| The Market Opportunities Portfolio | | | 13,196,155 | | | | 13,561,294 | |
| The Alternative Income Portfolio | | | 1,323,456 | | | | 1,358,632 | |
| The Multi-Disciplinary Portfolio | | | 1,438,865 | | | | 1,462,640 | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
7. Selected Financial Highlights
Financial highlights for the Master Portfolios were as follows:
| | | The Internet Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.37 | %(1) | | | 1.37 | % | | | 1.38 | % | | | 1.37 | % | | | 1.37 | % | | | 1.34 | % |
| After expense reduction | | | 1.37 | %(1) | | | 1.37 | % | | | 1.38 | % | | | 1.37 | % | | | 1.37 | % | | | 1.34 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | (0.71 | )%(1) | | | 0.16 | % | | | (0.43 | )% | | | (0.33 | )% | | | (0.04 | )% | | | 1.59 | % |
| After expense reduction | | | (0.71 | )%(1) | | | 0.16 | % | | | (0.43 | )% | | | (0.33 | )% | | | (0.04 | )% | | | 1.59 | % |
| Portfolio turnover rate | | | 4 | % | | | 9 | % | | | 32 | % | | | 12 | % | | | 14 | % | | | 19 | % |
(1) Annualized.
| | | The Global Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.70 | %(1) | | | 1.77 | % | | | 2.23 | % | | | 2.43 | % | | | 2.81 | % | | | 2.46 | % |
| After expense reduction | | | 1.70 | %(1) | | | 1.77 | % | | | 2.23 | % | | | 2.43 | % | | | 2.81 | % | | | 2.46 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.00 | %(1) | | | 0.40 | % | | | 0.61 | % | | | (0.51 | )% | | | (0.74 | )% | | | 0.83 | % |
| After expense reduction | | | 0.00 | %(1) | | | 0.40 | % | | | 0.61 | % | | | (0.51 | )% | | | (0.74 | )% | | | 0.83 | % |
| Portfolio turnover rate | | | 6 | % | | | 23 | % | | | 135 | % | | | 122 | % | | | 53 | % | | | 98 | % |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
| | | The Paradigm Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.35 | %(1) | | | 1.36 | % | | | 1.37 | % | | | 1.36 | % | | | 1.36 | % | | | 1.33 | % |
| After expense reduction | | | 1.35 | %(1) | | | 1.36 | % | | | 1.37 | % | | | 1.36 | % | | | 1.36 | % | | | 1.33 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | (0.06 | )%(1) | | | 0.50 | % | | | 0.37 | % | | | 0.83 | % | | | 1.15 | % | | | 0.86 | % |
| After expense reduction | | | (0.06 | )%(1) | | | 0.50 | % | | | 0.37 | % | | | 0.83 | % | | | 1.15 | % | | | 0.86 | % |
| Portfolio turnover rate | | | 2 | % | | | 6 | % | | | 58 | % | | | 7 | % | | | 15 | % | | | 34 | % |
| | | The Medical Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.42 | %(1) | | | 1.44 | % | | | 1.40 | % | | | 1.39 | % | | | 1.43 | % | | | 1.42 | % |
| After expense reduction | | | 1.42 | %(1) | | | 1.44 | % | | | 1.40 | % | | | 1.39 | % | | | 1.43 | % | | | 1.42 | % |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.74 | %(1) | | | 1.62 | % | | | 0.86 | % | | | 0.55 | % | | | 1.14 | % | | | 1.02 | % |
| After expense reduction | | | 1.74 | %(1) | | | 1.62 | % | | | 0.86 | % | | | 0.55 | % | | | 1.14 | % | | | 1.02 | % |
| Portfolio turnover rate | | | 7 | % | | | 0 | % | | | 5 | % | | | 3 | % | | | 13 | % | | | 28 | % |
(1) Annualized.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
| | | The Small Cap Opportunities Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.36 | %(1) | | | 1.44 | % | | | 1.43 | % | | | 1.42 | % | | | 1.42 | % | | | 1.36 | % |
| After expense reduction | | | 1.36 | %(1) | | | 1.44 | % | | | 1.43 | % | | | 1.42 | % | | | 1.42 | % | | | 1.36 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.22 | %(1) | | | 0.27 | % | | | 0.03 | % | | | 0.02 | % | | | (0.05 | )% | | | 0.51 | % |
| After expense reduction | | | 0.22 | %(1) | | | 0.27 | % | | | 0.03 | % | | | 0.02 | % | | | (0.05 | )% | | | 0.51 | % |
| Portfolio turnover rate | | | 1 | % | | | 22 | % | | | 47 | % | | | 4 | % | | | 4 | % | | | 16 | % |
(1) Annualized.
| | | The Market Opportunities Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.39 | %(1) | | | 1.43 | % | | | 1.42 | % | | | 1.42 | % | | | 1.42 | % | | | 1.36 | % |
| After expense reduction | | | 1.39 | %(1) | | | 1.43 | % | | | 1.42 | % | | | 1.42 | % | | | 1.42 | % | | | 1.36 | % |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.61 | %(1) | | | 0.44 | % | | | 0.30 | % | | | 0.56 | % | | | 0.26 | % | | | 1.25 | % |
| After expense reduction | | | 0.61 | %(1) | | | 0.44 | % | | | 0.30 | % | | | 0.56 | % | | | 0.26 | % | | | 1.25 | % |
| Portfolio turnover rate | | | 10 | % | | | 26 | % | | | 14 | % | | | 12 | % | | | 14 | % | | | 77 | % |
(1) Annualized.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
| | | The Alternative Income Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.24 | %(1) | | | 1.49 | % | | | 1.42 | % | | | 1.47 | % | | | 1.49 | % | | | 1.49 | % |
| After expense reduction | | | 1.24 | %(1) | | | 1.49 | % | | | 1.42 | % | | | 1.47 | % | | | 1.49 | % | | | 1.49 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | (0.55 | )%(1) | | | 1.99 | % | | | 1.47 | % | | | 1.04 | % | | | 0.63 | % | | | 1.27 | % |
| After expense reduction | | | (0.55 | )%(1) | | | 1.99 | % | | | 1.47 | % | | | 1.04 | % | | | 0.63 | % | | | 1.27 | % |
| Portfolio turnover rate | | | 9 | % | | | 56 | % | | | 69 | % | | | 111 | % | | | 45 | % | | | 66 | % |
(1) Annualized.
| | | The Multi-Disciplinary Portfolio |
| | | For the Six | | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | February 11, | |
| | | Months Ended | | | Ended | | | Ended | | | Ended | | | Ended | | | 2008^ through | |
| | | June 30, 2013 | | | December 31, | | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.40 | %(1) | | | 1.45 | % | | | 1.54 | % | | | 2.41 | % | | | 3.66 | % | | | 5.09 | %(1) |
| After expense reduction | | | 1.40 | %(1) | | | 1.45 | % | | | 1.54 | % | | | 2.41 | % | | | 3.66 | % | | | 5.09 | %(1) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 2.10 | %(1) | | | 3.23 | % | | | 8.00 | % | | | 2.58 | % | | | (1.20 | )% | | | (3.49 | )%(1) |
| After expense reduction | | | 2.10 | %(1) | | | 3.23 | % | | | 8.00 | % | | | 2.58 | % | | | (1.20 | )% | | | (3.49 | )%(1) |
| Portfolio turnover rate | | | 36 | % | | | 41 | % | | | 74 | % | | | 38 | % | | | 77 | % | | | N/A | (2) |
^ Commencement of operations.
(1) Annualized.
(2) The Portfolio did not hold any long-term securities during the period, therefore the portfolio turnover is not applicable.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
8. Summary of Fair Value Exposure
Various inputs are used in determining the value of a Portfolio’s investments. These inputs are summarized in the three broad levels listed below:
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that a Portfolio has the ability to access.
Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing a Master Portfolio’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
The Internet Portfolio
The following is a summary of the inputs used to value The Internet Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Common Stocks | | $ | 159,873,491 | | | $ | 944,041 | (1) | | $ | — | (2)* | | $ | 160,817,532 | |
| Escrow Notes | | | — | | | | — | | | | — | * | | | — | * |
| Rights | | | — | | | | 1,224 | | | | — | | | | 1,224 | |
| Short-Term Investments | | | 8,007,797 | | | | 8,800,000 | + | | | — | | | | 16,807,797 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 38,696,520 | | | | — | | | | — | | | �� | 38,696,520 | |
| Total Investments in Securities | | $ | 206,577,808 | | | $ | 9,745,265 | | | $ | — | * | | $ | 216,323,073 | |
(1) The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
| Administrative and Support Services | | $ | 1,722 | |
| Rental and Leasing Services | | | 938,952 | |
| Telecommunications | | | 3,367 | |
| | | $ | 944,041 | |
(2) The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industries:
| Holding Company | | $ | — | * |
| Special Purpose Entity | | | — | * |
| | | $ | — | * |
| | | | | |
| Transfers out of Level 1 into Level 2 | | $ | 941,898 | |
Transfers were made between Level 1 into Level 2 due to a decrease in market activity. Transfers between levels are recognized at the end of the reporting period.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |
| Balance as of December 31, 2012 | | $ | 3 | |
| Accrued discounts/premiums | | | — | |
| Realized gain (loss) | | | — | |
| Change in unrealized appreciation (depreciation) | | | (3 | ) |
| Net purchases | | | — | |
| Net sales | | | — | |
| Transfer in and/or out of Level 3 | | | — | |
| Balance as of June 30, 2013 | | $ | — | * |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
| | | Fair Value at | | Valuation | | Unobservable | | |
| Description | | 06/30/2013 | | Techniques | | Input | | Range |
| Common Stocks | | $ —* | | Conservative Value Assigned Pending Bankruptcy Litigation Proceedings/Market Comparables | | No active market | | $0.00-$0.00 |
| Escrow Notes | | —* | | Conservative Value Assigned Pending Bankruptcy Litigation Proceedings/Market Comparables | | No active market | | $0.00-$0.00 |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.
^ See Portfolio of Investments for breakout of investments by industry classification.
* Amount is less than $0.50.
+ Priced at amortized cost.
The Global Portfolio
The following is a summary of the inputs used to value The Global Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Common Stocks | | $ | 7,465,074 | | | $ | 260,570 | (1) | | $ | — | | | $ | 7,725,644 | |
| Preferred Stocks | | | 19 | | | | — | | | | — | | | | 19 | |
| Rights | | | — | | | | — | * | | | — | * | | | — | * |
| Warrants | | | 230 | | | | — | | | | — | | | | 230 | |
| Short-Term Investments | | | 404,898 | | | | 400,000 | + | | | — | | | | 804,898 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 1,943,040 | | | | — | | | | — | | | | 1,943,040 | |
| Total Investments in Securities | | $ | 9,813,261 | | | $ | 660,570 | | | $ | — | * | | $ | 10,473,831 | |
(1) The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
| Holding Company | | $ | 24,383 | |
| Insurance Carriers and Related Activities | | | 58,986 | |
| Oil and Gas Extraction | | | 47,795 | |
| Pharmaceutical and Biotechnology | | | 415 | |
| Real Estate | | | 128,991 | |
| | | $ | 260,570 | |
| Transfers out of Level 1 into Level 2 | | $ | 47,795 | |
| Transfers out of Level 2 into Level 1 | | | 15,808 | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Transfers were made between Level 1 into Level 2 due to a decrease in market activity.
Transfers were made between Level 2 into Level 1 due to an increase in market activity.
Transfers between levels are recognized at the end of the reporting period.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |
| Balance as of December 31, 2012 | | $ | — | |
| Accrued discounts/premiums | | | — | |
| Realized gain (loss) | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | |
| Net purchases | | | — | * |
| Net sales | | | — | |
| Transfer in and/or out of Level 3 | | | — | |
| Balance as of June 30, 2013 | | $ | — | * |
| | | Fair Value at | Valuation | | Unobservable | | |
| Description | 06/30/2013 | Techniques | | Input | Range | |
| Rights | | $—* | Market | | No active | $0.00-$0.00 | |
| | | | Comparables | | market | | |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.
^ See Portfolio of Investments for breakout of investments by industry classification.
* Amount is less than $0.50.
+ Priced at amortized cost.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
The Paradigm Portfolio
The following is a summary of the inputs used to value The Paradigm Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Common Stocks | | $ | 1,002,163,223 | | | $ | 898,599 | (1) | | $ | — | (2)* | | $ | 1,003,061,822 | |
| Convertible Bonds | | | — | | | | 4,987,500 | | | | — | | | | 4,987,500 | |
| Preferred Stocks | | | 3,240 | | | | — | | | | — | | | | 3,240 | |
| Short-Term Investments | | | 31,028,631 | | | | 54,000,000 | + | | | — | | | | 85,028,631 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 185,945,676 | | | | — | | | | — | | | | 185,945,676 | |
| Total Investments in Securities | | $ | 1,219,140,770 | | | $ | 59,886,099 | | | $ | — | * | | $ | 1,279,026,869 | |
(1) The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
| Holding Company | | $ | 16,256 | |
| Real Estate | | | 882,343 | |
| | | $ | 898,599 | |
| | | | | |
| Transfers out of Level 2 into Level 1 | | $ | 4,989,920 | |
Transfers were made between Level 2 into Level 1 due to an increase in market activity. Transfers between levels are recognized at the end of the reporting period.
(2) The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industries:
| Credit Intermediation and Related Activities | | $ | — | * |
| Holding Company | | | — | * |
| | | $ | — | * |
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |
| Balance as of December 31, 2012 | | $ | 31 | |
| Accrued discounts/premiums | | | — | |
| Realized gain (loss) | | | — | |
| Change in unrealized appreciation (depreciation) | | | (31 | ) |
| Net purchases | | | — | |
| Net sales | | | — | |
| Transfer in and/or out of Level 3 | | | — | |
| Balance as of June 30, 2013 | | $ | — | * |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
| | | Fair Value at | Valuation | Unobservable | |
| Description | | 6/30/2013 | Techniques | Input | Range |
| Common Stocks | | $—* | Delisted-Acquired | No active | $0.00-$0.00 |
| | | | by the U.S. | market | |
| | | | Government/Market | | |
| | | | Comparables | | |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.
^ See Portfolio of Investments for breakout of investments by industry classification.
* Amount is less than $0.50.
+ Priced at amortized cost.
The Medical Portfolio
The following is a summary of the inputs used to value The Medical Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Common Stocks | | $ | 22,138,847 | | | $ | 69,084 | (1) | | $ | — | | | $ | 22,207,931 | |
| Rights | | | 31,044 | | | | 700 | | | | — | * | | | 31,744 | |
| Short-Term Investments | | | 50,876 | | | | 160,000 | + | | | — | | | | 210,876 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 8,452,914 | | | | — | | | | — | | | | 8,452,914 | |
| Total Investments in Securities | | $ | 30,673,681 | | | $ | 229,784 | | | $ | — | * | | $ | 30,903,465 | |
(1) The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
| Pharmaceutical and Biotechnology | | $ | 69,084 | |
| | | $ | 69,084 | |
| Transfers out of Level 1 into Level 2 | | $ | 1,936 | |
Transfers were made between Level 1 into Level 2 due to a decrease in market activity. Transfers between levels are recognized at the end of the reporting period.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |
| Balance as of December 31, 2012 | | $ | — | |
| Accrued discounts/premiums | | | — | |
| Realized gain (loss) | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | |
| Net purchases | | | — | * |
| Net sales | | | — | |
| Transfer in and/or out of Level 3 | | | — | |
| Balance as of June 30, 2013 | | $ | — | * |
| | | Fair Value at | Valuation | Unobservable | | |
| Description | 6/30/2013 | Techniques | Input | Range | |
| Rights | | $—* | Market Comparables | No active | $0.00-$0.00 | |
| | | | | market | | |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists
^ See Portfolio of Investments for breakout of investments by industry classification.
* Amount is less than $0.50.
+ Priced at amortized cost.
The Small Cap Opportunities Portfolio
The following is a summary of the inputs used to value The Small Cap Opportunities Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Common Stocks | | $ | 148,471,300 | | | $ | 7,136,278 | (1) | | $ | — | | | $ | 155,607,578 | |
| Rights | | | — | | | | 563 | | | | — | | | | 563 | |
| Short-Term Investments | | | 739,174 | | | | 7,500,000 | + | | | — | | | | 8,239,174 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 45,095,910 | | | | — | | | | — | | | | 45,095,910 | |
| Total Investments in Securities | | $ | 194,306,384 | | | $ | 14,636,841 | | | $ | — | | | $ | 208,943,225 | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
(1) The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
| Asset Management | | $ | 1,128,001 | |
| Forestry and Logging | | | 31,160 | |
| Holding Company | | | 2,088,843 | |
| Mining (except Oil and Gas) | | | 583,921 | |
| Oil and Gas Extraction | | | 1,477 | |
| Real Estate | | | 3,224,779 | |
| Rental and Leasing Services | | | 36,515 | |
| Telecommunications | | | 41,582 | |
| | | $ | 7,136,278 | |
| | | | | |
| Transfers out of Level 1 into Level 2 | | $ | 106,596 | |
| Transfers out of Level 2 into Level 1 | | | 17,640 | |
Transfers were made between Level 1 into Level 2 due to a decrease in market activity.
Transfers were made between Level 2 into Level 1 due to an increase in market activity.
Transfers between levels are recognized at the end of the reporting period.
For the six months ended June 30, 2013 the Portfolio did not invest in Level 3 securities.
^ See Portfolio of Investments for breakout of investments by industry classification.
+ Priced at amortized cost.
The Market Opportunities Portfolio
The following is a summary of the inputs used to value The Market Opportunities Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Common Stocks | | $ | 52,566,855 | | | $ | 1,636,981 | (1) | | $ | — | (2)* | | $ | 54,203,836 | |
| Mutual Funds | | | 7,995 | | | | — | | | | — | | | | 7,995 | |
| Short-Term Investments | | | 1,572,318 | | | | 2,800,000 | + | | | — | | | | 4,372,318 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 13,561,294 | | | | — | | | — | | | | 13,561,294 | |
| Total Investments in Securities | | $ | 67,708,462 | | | $ | 4,436,981 | | | $— | | | $ | 72,145,443 | |
(1) The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:
| Holding Company | | $ | 871,706 | |
| Real Estate | | | 765,275 | |
| | | $ | 1,636,981 | |
(2) The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industry:
| Credit Intermediation and Related Activities | | $ | — | |
For the six months June 30, 2013, there were no transfers into or out of Level 1 or Level 2.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |
| Balance as of December 31, 2012 | | $ | — | * |
| Accrued discounts/premiums | | | — | |
| Realized gain (loss) | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | |
| Net purchases | | | — | |
| Net sales | | | — | |
| Transfer in and/or out of Level 3 | | | — | |
| Balance as of June 30, 2013 | | $ | — | * |
| | | Fair Value at | Valuation | Unobservable | | |
| Description | | 6/30/2013 | Techniques | Input | Range | |
| Common Stocks | | $—* | Delisted-Acquired | No active | $0.00-$0.00 | |
| | | | by the U.S. | market/Market | |
| | | | Government/Market | Comparables | |
| | | | Comparables | | | |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists
^ See Portfolio of Investments for breakout of investments by industry classification.
* Amount is less than $0.50.
+ Priced at amortized cost.
The Alternative Income Portfolio
The following is a summary of the inputs used to value The Alternative Income Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Convertible Bonds | | $ | — | | | $ | 240,360 | | | $ | — | | | $ | 240,360 | |
| Corporate Bonds | | | — | | | | 10,129,969 | | | | — | | | | 10,129,969 | |
| Exchange Traded Funds | | | 3,662,656 | | | | — | | | | — | | | | 3,662,656 | |
| U.S. Government Agency Issue | | | — | | | | 939,999 | | | | — | | | | 939,999 | |
| Warrants | | | 1,200 | | | | — | | | | — | | | | 1,200 | |
| Short-Term Investments | | | 713,320 | | | | 750,000 | + | | | — | | | | 1,463,320 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 1,358,632 | | | | — | | | | — | | | | 1,358,632 | |
| Total Investments in Securities | | $ | 5,735,808 | | | $ | 12,060,328 | | | $ | — | | | $ | 17,796,136 | |
| | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
| Written Options | | $ | — | | | $ | 617,988 | | | $ | — | | | $ | 617,988 | |
For the six months ended June 30, 2013, there were no transfers into or out of Level 1 or Level 2, or investment in Level 3 securities.
^ See Portfolio of Investments for breakout of investments by industry classification.
+ Priced at amortized cost.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
The Multi-Disciplinary Portfolio
The following is a summary of the inputs used to value The Multi-Disciplinary Portfolio’s net assets as of June 30, 2013:
| Assets^ | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Convertible Bonds | | $ | — | | | $ | 41,527,235 | | | $ | — | | | $ | 41,527,235 | |
| Corporate Bonds | | | — | | | | 15,607,390 | | | | — | | | | 15,607,390 | |
| Municipal Bonds | | | — | | | | 525,000 | | | | — | | | | 525,000 | |
| Exchange Traded Funds | | | 1,307,952 | | | | — | | | | — | | | | 1,307,952 | |
| Mutual Funds | | | 1,891,172 | | | | — | | | | — | | | | 1,891,172 | |
| Short-Term Investments | | | 2,100,000 | | | | 3,599,989 | + | | | — | | | | 5,699,989 | |
| Investments Purchased with the Cash Proceeds from Securities Lending | | | 1,462,640 | | | | — | | | | — | | | | 1,462,640 | |
| | | $ | 6,761,764 | | | $ | 61,259,614 | | | $ | — | | | $ | 68,021,378 | |
| Liabilities | | | | | | | | | | | | | | | | |
| Written Options | | $ | — | | | $ | 2,474,301 | | | $ | — | | | $ | 2,474,301 | |
For the six months ended June 30, 2013, there were no transfers into or out of Level 1 or Level 2, or investments in Level 3 securities.
^ See Portfolio of Investments for breakout of investments by industry classification.
+ Priced at amortized cost.
9. Disclosures about Derivative Instruments and Hedging Activities
The Master Portfolios have adopted enhanced disclosure regarding derivatives and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why a Master Portfolio uses derivatives, how derivatives are accounted for by the Master Portfolios, and how derivative instruments affect a Master Portfolio’s results of operations and financial position. The Master Portfolios utilized options to implement or to gain further exposure to their respective investment strategies.
The Alternative Income Portfolio
Statement of Assets and Liabilities
Fair values of derivative instruments as of June 30, 2013:
| | Assets | | Liabilities | |
| Equity Contracts | Description | | Fair Value | | Description | | Fair Value | |
| | | | | | Written option | | | |
| Written Options | | | $ | — | | contracts, at value | | $ | 617,988 | |
| Total | | | $ | — | | | | $ | 617,988 | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Statement of Operations
The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2013:
| Amount of Realized Gain (Loss) on Equity Contracts | |
| Equity Contracts | | | |
| Written Options | | $ | (40,219 | ) |
| Total | | $ | (40,219 | ) |
Change in Unrealized Appreciation (Depreciation) on Equity Contracts
| Equity Contracts | | | |
| Written Options | | $ | 320,879 | |
| Total | | $ | 320,879 | |
The Alternative Income Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For the six months ended June 30, 2013: written option contracts (4,637 contracts) were opened and $703,205 premiums were received during the period.
The Multi-Disciplinary Portfolio
Statement of Assets and Liabilities
Fair values of derivative instruments as of June 30, 2013:
| | Assets | | Liabilities | |
| Equity Contracts | Description | | Fair Value | | Description | | Fair Value | |
| | | | | | Written option | | | |
| Written Options | | | $ | — | | contracts, at value | | $ | 2,474,301 | |
| Total | | | $ | — | | | | $ | 2,474,301 | |
Statement of Operations
The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2013:
Amount of Realized Gain (Loss) on Equity Contracts
| Equity Contracts | | | |
| Written Options | | $ | 409,648 | |
| Total | | $ | 409,648 | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
Change in Unrealized Appreciation (Depreciation) on Equity Contracts
| Equity Contracts | | | |
| Written Options | | $ | (372,738 | ) |
| Total | | $ | (372,738 | ) |
The Multi-Disciplinary Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For the six months ended June 30, 2013: written option contracts (24,808 contracts) were opened and $4,247,722 premiums were received during the period.
10. Offsetting Assets and Liabilities
The Portfolios are subject to various Master Netting Arrangements, which govern the terms of certain transactions with select counterparties. The Master Netting Arrangements allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. The Master Netting Arrangements also specify collateral posting arrangements at pre-arranged exposure levels. Under the Master Netting Arrangements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Netting Arrangement with a counterparty in a given account exceeds a specified threshold depending on the counterparty and the type of Master Netting Arrangement.
The Internet Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Internet Portfolio as of June 30, 2013:
| Liabilities: | | | Gross Amounts Offset in the Statement | | Net Amounts Presented in the Statement | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | |
| | Gross Amounts of Recognized Liabilities | | of Assets & Liabilities | | of Assets & Liabilities | | Financial Instruments | | Collateral Pledged | | Net Amount | |
| Description | | | | | | | | | | | | |
| Securities Lending | | 38,696,520 | | | — | | | 38,696,520 | | | 38,696,520 | | | — | | | — | |
| | $ | 38,696,520 | | $ | — | | $ | 38,696,520 | | $ | 38,696,520 | | $ | — | | $ | — | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
The Global Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Global Portfolio as of June 30, 2013:
| Liabilities: | | | Gross Amounts Offset in the Statement | | Net Amounts Presented in the Statement | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | |
| | Gross Amounts of Recognized Liabilities | | of Assets & Liabilities | | of Assets & Liabilities | | Financial Instruments | | Collateral Pledged | | Net Amount | |
| Description | | | | | | | | | | | | |
| Securities Lending | | 1,943,040 | | | — | | | 1,943,040 | | | 1,943,040 | | | — | | | — | |
| | $ | 1,943,040 | | $ | — | | $ | 1,943,040 | | $ | 1,943,040 | | $ | — | | $ | — | |
The Paradigm Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Paradigm Portfolio as of June 30, 2013:
| Liabilities: | | | Gross Amounts Offset in the Statement | | Net Amounts Presented in the Statement | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | |
| | Gross Amounts of Recognized Liabilities | | of Assets & Liabilities | | of Assets & Liabilities | | Financial Instruments | | Collateral Pledged | | Net Amount | |
| Description | | | | | | | | | | | | |
| Securities Lending | | 185,945,676 | | | — | | | 185,945,676 | | | 185,945,676 | | | — | | | — | |
| | $ | 185,945,676 | | $ | — | | $ | 185,945,676 | | $ | 185,945,676 | | $ | — | | $ | — | |
The Medical Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Medical Portfolio as of June 30, 2013:
| Liabilities: | | | Gross Amounts Offset in the Statement | | Net Amounts Presented in the Statement | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | |
| | Gross Amounts of Recognized Liabilities | | of Assets & Liabilities | | of Assets & Liabilities | | Financial Instruments | | Collateral Pledged | | Net Amount | |
| Description | | | | | | | | | | | | |
| Securities Lending | | 8,452,914 | | | — | | | 8,452,914 | | | 8,452,914 | | | — | | | — | |
| | $ | 8,452,914 | | $ | — | | $ | 8,452,914 | | $ | 8,452,914 | | $ | — | | $ | — | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
The Small Cap Opportunities Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Small Cap Opportunities Portfolio as of June 30, 2013:
| Liabilities: | | | Gross Amounts Offset in the Statement | | Net Amounts Presented in the Statement | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | |
| | Gross Amounts of Recognized Liabilities | | of Assets & Liabilities | | of Assets & Liabilities | | Financial Instruments | | Collateral Pledged | | Net Amount | |
| Description | | | | | | | | | | | | |
| Securities Lending | | 45,095,910 | | | — | | | 45,095,910 | | | 45,095,910 | | | — | | | — | |
| | $ | 45,095,910 | | $ | — | | $ | 45,095,910 | | $ | 45,095,910 | | $ | — | | $ | — | |
The Market Opportunities Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Market Opportunities Portfolio as of June 30, 2013:
| Liabilities: | | | Gross Amounts Offset in the Statement | | Net Amounts Presented in the Statement | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | |
| | Gross Amounts of Recognized Liabilities | | of Assets & Liabilities | | of Assets & Liabilities | | Financial Instruments | | Collateral Pledged | | Net Amount | |
| Description | | | | | | | | | | | | |
| Securities Lending | | 13,561,294 | | | — | | | 13,561,294 | | | 13,561,294 | | | — | | | — | |
| | $ | 13,561,294 | | $ | — | | $ | 13,561,294 | | $ | 13,561,294 | | $ | — | | $ | — | |
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
The Alternative Income Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Alternative Income Portfolio as of June 30, 2013:
| Liabilities: | | | | | Gross Amounts Offset in the Statement | | | Net Amounts Presented in the Statement | | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | | |
| | | Gross Amounts of Recognized Liabilities | | | of Assets & Liabilities | | | of Assets & Liabilities | | | Financial Instruments | | | Collateral Pledged | | | Net Amount | |
| Description | | | | | | | | | | | | | | | | | | |
| Written Options | | | 617,988 | | | | — | | | | 617,988 | | | | — | | | | 617,988 | | | | — | |
| Securities Lending | | | 1,358,632 | | | | — | | | | 1,358,632 | | | | 1,358,632 | | | | — | | | | — | |
| | | $ | 1,976,620 | | | $ | — | | | $ | 1,976,620 | | | $ | 1,358,632 | | | $ | 617,988 | | | $ | — | |
The Multi-Disciplinary Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Multi-Disciplinary Portfolio as of June 30, 2013:
| Liabilities: | | | | | Gross Amounts Offset in the Statement | | | Net Amounts Presented in the Statement | | | Gross Amounts not offset in the Statement of Assets & Liabilities | | | | |
| | | Gross Amounts of Recognized Liabilities | | | of Assets & Liabilities | | | of Assets & Liabilities | | | Financial Instruments | | | Collateral Pledged | | | Net Amount | |
| Description | | | | | | | | | | | | | | | | | | |
| Written Options | | | 2,474,301 | | | | — | | | | 2,474,301 | | | | — | | | | 2,474,301 | | | | — | |
| Securities Lending | | | 1,462,640 | | | | — | | | | 1,462,640 | | | | 1,462,640 | | | | — | | | | — | |
| | | $ | 3,936,941 | | | $ | — | | | $ | 3,936,941 | | | $ | 1,462,640 | | | $ | 2,474,301 | | | $ | — | |
11. Information about Proxy Voting
Information regarding how Kinetics Portfolios votes proxies relating to portfolio securities is available without charge upon request by calling toll-free at 1-800-930-3828 or by accessing the Funds’ website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Master Portfolios voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Notes to Financial Statements — (Continued) June 30, 2013 (Unaudited) |
12. Information about the Portfolio Holdings
The Kinetics Portfolios Trust files its complete schedules of portfolio holdings for its first and third fiscal quarters with the SEC on Form N-Q. The Master Portfolios’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
13. Subsequent Events
In preparing these financial statements, management has evaluated Portfolio related events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or translations that occurred during the period that materially impacted the amounts or disclosures in the Master Portfolios’ financial statements.
14. Reverse Stock Split
During the period ended June 30, 2013, shares of The Alternative Income Fund were adjusted to reflect a reverse stock split. The effect of the reverse stock split was to reduce the number of shares outstanding while maintaining the Fund’s and each shareholder’s aggregate net asset value. A summary of the reverse stock split is as follows:
| | | | | | | Net Asset | | Net Asset | | Shares | | Shares |
| | | | | | | Value | | Value | | Outstanding | | Outstanding |
| | | | | | | Before | | After | | Before | | After |
| | | | | | | Reverse | | Reverse | | Reverse | | Reverse |
| | | Date | | Rate | | Split | | Split | | Split | | Split |
| Alternative Income Fund, | | | | | | | | | | | | |
| No Load Class | | 5/31/13 | | 1:10 | | 8.52 | | 85.20 | | 1,331,968 | | 133,197 |
| Alternative Income Fund, | | | | | | | | | | | | |
| Class A | | 5/31/13 | | 1:10 | | 8.52 | | 85.20 | | 233,864 | | 23,386 |
| Alternative Income Fund, | | | | | | | | | | | | |
| Class C | | 5/31/13 | | 1:10 | | 8.39 | | 83.90 | | 176,674 | | 17,667 |
| Alternative Income Fund, | | | | | | | | | | | | |
| Institutional Class | | 5/31/13 | | 1:10 | | 8.60 | | 86.00 | | 369,501 | | 36,950 |
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Kinetics Mutual
Funds, Inc.
615 East Michigan Street
Milwaukee, WI 53202
INVESTMENT ADVISER AND
SHAREHOLDER SERVICING AGENT
Kinetics Asset Management LLC
470 Park Avenue South
New York NY, 10016
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Tait, Weller & Baker LLP
1818 Market Street
Suite 2400
Philadelphia, PA 19103
DISTRIBUTOR
Kinetics Funds Distributor LLC
470 Park Avenue South
New York, NY 10016
ADMINISTRATOR
FUND ACCOUNTANT AND
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
CUSTODIAN
U.S. Bank, N.A.
Custody Operations
1555 River Center Drive, Suite 302
Milwaukee, WI 53212
THIS MATERIAL MUST BE PRECEDED OR
ACCOMPANIED BY A PROSPECTUS
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Schedule of Investments.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.
Item 11. Controls and Procedures.
| (a) | The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
| (b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Exhibits.
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Not applicable to open-end investment companies.
| (b) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust
By (Signature and Title)*_ /s/ Peter B. Doyle
Peter B. Doyle, President
Date 8/27/2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ Peter B. Doyle
Peter B. Doyle, President
Date_____________8/27/2013_____________________________________
By (Signature and Title)* /s/ Leonid Polyakov
Leonid Polyakov, Treasurer
Date___8/26/2013_______________________________________________
