As filed with the Securities and Exchange Commission on September 4, 2009
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)
555 Taxter Road, Suite 175
Elmsford, NY 10523
(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, 2009
Date of reporting period: June 30, 2009
Item 1. Report to Stockholders.
| | | |
| | | |
| | | June 30, 2009 www.kineticsfunds.com |
|
| | | Semi-Annual Report |
|
| | | The Internet Fund
The Global Fund
The Paradigm Fund
The Medical Fund
The Small Cap Opportunities Fund
The Kinetics Government Money Market Fund
The Market Opportunities Fund
The Water Infrastructure Fund
The Multi-Disciplinary Fund
|
| | | |
| | | LOGO Each a series of Kinetics Mutual Funds, Inc. |
(Kinetics Mutual Funds, Inc.)
KINETICS MUTUAL FUNDS, INC.
Table of Contents
June 30, 2009
| | | | | |
| | | Page |
| |
| Shareholders’ Letter | | | 2 | |
| Year 2009 Semi-Annual Investment Commentary | | | 4 | |
| KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS | | | | |
| Expense Example | | | 8 | |
| Statement of Assets & Liabilities | | | 15 | |
| Statement of Operations | | | 20 | |
| Statements of Changes in Net Assets | | | 25 | |
| Notes to Financial Statements | | | 38 | |
| Financial Highlights | | | 52 | |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Allocation of Portfolio Assets | | | 74 | |
| Portfolio of Investments The Internet Portfolio | | | 79 | |
| Portfolio of Investments The Global Portfolio | | | 87 | |
| Portfolio of Investments The Paradigm Portfolio | | | 95 | |
| Portfolio of Investments The Medical Portfolio | | | 107 | |
| Portfolio of Investments The Small Cap Opportunities Portfolio | | | 110 | |
| Portfolio of Investments The Kinetics Government Money Market Portfolio | | | 118 | |
| Portfolio of Investments The Market Opportunities Portfolio | | | 119 | |
| Portfolio of Investments The Water Infrastructure Portfolio | | | 124 | |
| Portfolio of Investments The Multi-Disciplinary Portfolio | | | 127 | |
| Portfolio of Options Written The Internet Portfolio | | | 129 | |
| Portfolio of Options Written The Market Opportunities Portfolio | | | 130 | |
| Portfolio of Options Written The Multi-Disciplinary Portfolio | | | 131 | |
| Statement of Assets & Liabilities | | | 147 | |
| Statement of Operations | | | 152 | |
| Statements of Changes in Net Assets | | | 157 | |
| Notes to Financial Statements | | | 162 | |
1
KINETICS MUTUAL FUNDS, INC.
Dear Fellow Shareholders:
We are pleased to present the Kinetics Mutual Funds’ Semi-Annual Report for the period ending June 30, 2009. On balance, the Kinetics Family of Mutual Funds had respectable results for the first half of 2009, with gains of 18.30% for The Paradigm Fund, 33.11% for the Small Cap Opportunities Fund, 29.78% for the Market Opportunities Funds, 18.49% for the Internet Fund, 10.77% for the Medical Fund, 6.44% for the Water Infrastructure Fund, 39.41% for The Global Fund, and 9.49% for the Multi-Disciplinary Fund. This compares with first-half 2009 returns of 3.16% and 16.36% for the S&P 500 Index(1) and the NASDAQ Composite Index(2), respectively.
We have always maintained that our long-term investment results will be driven by the underlying business operations of the companies we own. In this regard, nothing has changed. As global investors have reassessed risk, those companies that have rebounded the most in price tended to be those which had performed well operationally throughout the crisis. We believe that our funds possess many of these types of businesses. At present, we still believe our Funds offer noteworthy value for long-term investors, as we believe the price recovery for our holdings is still in the earlier stages.
We continue to inform our shareholders through our website, www.kineticsfunds.com. This website provides a broad array of information, including recent portfolio holdings, quarterly investment commentaries, newsflashes, recent performance data, and online access to account information.
Kinetics offers the following funds to investors:
The Paradigm Fund focuses on companies that currently have, or which should soon have, sustainable high returns on equity. The Fund has produced attractive returns over the last 91/2 years. The Paradigm Fund is Kinetics’ flagship fund.
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 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.
2
KINETICS MUTUAL FUNDS, INC.
Shareholders’ Letter — (Continued)
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. In some cases, we view this Fund’s holdings as publicly traded venture capital and are quite aware that many of these investments will not fulfill their promise. However, we expect that, over time, some small percentage will develop into excellent investments, allowing the fund to produce overall attractive, albeit, lumpy returns.
The Global Fund’s mandate was changed in early April 2008 to an emphasis on international investments, with particular attention to China and other Asian markets.
The Market Opportunities Fund focuses on those companies that benefit from increasing transactional volume or throughput, such as publicly-traded exchanges, or that act as facilitators, such as gaming companies, airports and publicly-traded toll roads.
The Water Infrastructure Fund is a sector fund that invests in global companies engaged in water infrastructure and water-specific natural resources, as well as related activities.
The Multi-Disciplinary Fund is a fund that seeks to utilize stock options and fixed-income investments so as 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 Kinetics Government Money Market Fund is a short-term investment vehicle that provides a useful service for those participating in our equity product offerings.
Peter B. Doyle
President
Kinetics Mutual Funds, Inc.
| |
| (1) | The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. You cannot invest directly in an index. |
| (2) | The NASDAQ Composite Index is a market capitalization-weighted index that is designed to represent the performance of the National Market System which includes over 5,000 stocks traded only over-the-counter and not on an exchange. You cannot invest directly in an index. |
3
KINETICS MUTUAL FUNDS, INC.
Dear Fellow Shareholders,
Starting in March of 2009, investors have witnessed a rebound in global equity markets. Many of our funds participated fully in this rebound, which was the result of a reassessment of risk on the part of investors, as liquidity and funding demands lessened.
In our opinion, the primary impetus for the strong global equity performance was the noteworthy progress made in restarting global credit markets. The non-Treasury fixed income markets had, in effect, shut down between September 2008 and March 2009. This caused investors to turn to other sources of liquidity. The good news was that global equity markets functioned properly. The bad news was that global equity markets functioned properly and, accordingly, they were used as automatic teller machines to meet the cash needs of corporations and individuals around the world. This forced liquidation of stocks created a negative equity bubble which fed upon itself. Investors that do not have a focused objective benchmark, such as a company’s business operations, tend to latch on to the easiest piece of data obtainable, price, to make decisions. A price focus usually translates into a buy-high/sell-low strategy, which is not the path to financial success.
With the restoration of the fixed income markets, credit spreads between most non-Treasury debt and Treasuries tightened significantly during the first six months of 2009, indicating improved liquidity and a higher appetite for riskier assets, including equities. In many cases, the shares that appreciated the most were those of companies whose underlying businesses had not been impacted, or only minimally impacted, by the financial crisis, which is how we would characterize many of the holdings in our funds.
In a modern global economy, the importance of the circulation of money cannot be overstated. For a six-month period of time, from September 2008 to March 2009, money circulation ground to a halt. The impact of this dynamic had a significant effect on the global economy, which is still being reflected in weak global economic statistics. With the restoration of money circulation, the economic numbers should improve markedly.
4
KINETICS MUTUAL FUNDS, INC.
Investment Commentary — (Continued)
According to Dealogic, a leading consultant to the investment banking industry, over $1.5 trillion of debt and $260 billion of equity was issued globally during the second quarter of 2009. Eventually, we believe much of this capital will make its way into productive uses that should help stimulate a global economic recovery. The equity markets have already discounted some of the expected economic improvement, and negative sentiment seems to be losing its chokehold on investors. That being said, the vast majority of investors can remain on the sidelines with their cash, and we can still witness very strong global stock markets, as stock prices are set at the margins. If the marginal demand to buy dwarfs the marginal propensity to sell, stock prices will go higher. It would seem to be reasonable that the buyers of stocks over the last nine months are likely to be the strong hands in the market, and those who collect shares for investment are very unlikely to be sellers.
We are not unaware of the problems facing the United States economy, which is largely driven by consumption. It is hard to become overly optimistic about the chances of a robust economic recovery based upon such expectations, when many consumers are either being laid off or are highly indebted. This leads us to believe that the best opportunities in equities are generally in those businesses that are not dependent upon the American consumer. In broad terms, our exposure to financials is largely through those companies that facilitate transactions, which will continue to occur irrespective of consumption. Our exposure to commodities and oil is predicated on the global demand for these assets and the world’s limited supply. Our exposure to China is predicated on the belief that the world’s business axis is shifting from the Atlantic to the Pacific.
We remain quite hopeful about our country’s future because societies advance based on the application of knowledge and, in that regard, this country and the world are making tremendous strides. We do, however, believe that broad United States equity returns will be subdued because most of the large companies that drive those returns depend upon a hearty consumer.
We thank you for your continued support, and we appreciate your perseverance in these interesting times.
The Kinetics Investment Team
KINETICS MUTUAL FUNDS, INC.
Investment Commentary — (Continued)
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 program, 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 Water Infrastructure 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 and biotechnology stocks are subject to a rate of change in technology, obsolescence and competition that is generally higher than that of other industries and have experienced extreme price and volume fluctuations. International investing [for The Global Fund, The Water Infrastructure Fund, The Paradigm Fund, The Market Opportunities Fund, The Small Cap Opportunities Fund and The Internet Fund] presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. Accordingly, the share price for these Funds is expected to be more volatile than that of a U.S.-only fund. Past performance is no guarantee of future performance.
Because smaller companies [for The Global Fund, The Small Cap Opportunities Fund and the Water Infrastructure 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. Each Fund [other than The Kinetics Government Money Market Fund] may invest in futures, swaps and other derivative instruments, which 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 Fund. 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 Funds in a manner consistent with their respective investment objectives.
6
KINETICS MUTUAL FUNDS, INC.
Investment Commentary — (Continued)
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 [other than The Kinetics Government Money Market Fund], the value of Fund shares may fluctuate more than shares invested in a broader range of industries and companies.
An investment in the Kinetics Government Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
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 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, Inc. is not an affiliate of Kinetics Mutual Funds, Inc. Kinetics Funds Distributor, Inc. is an affiliate of Kinetics Asset Management, Inc., Investment Adviser to Kinetics Mutual Funds, Inc.
For more information, log onto www.kineticsfunds.com.
July 1, 2009 — Kinetics Asset Management, Inc.
7
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example
June 30, 2009 (Unaudited)
Shareholders incur two type of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvestments of dividends or other distributions made by the 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 the 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, 2009 and held for the entire period from January 1, 2009 to June 30, 2009.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. Unlike other mutual funds that directly acquire and manage their own portfolio securities, each Feeder Fund invests all of its investable assets in a corresponding Master Portfolio, 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. The Adviser for the Master Portfolios has directed a certain amount of the Master Portfolio’s trades to brokers believed to provide the best execution and, as a result, the Master Portfolios have generated direct brokerage credits to reduce certain service provider fees. 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 Feeder 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 the Feeder Fund and any other series of Kinetics Mutual Funds, Inc. The Feeder Fund’s transfer agent charges a $5.00 transaction fee to shareholder accounts for telephone exchanges between any two series of Kinetics Mutual Funds, Inc. The Feeder Fund’s 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 disadvantageous to the Feeder Funds or shareholders.
8
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example — (Continued)
June 30, 2009 (Unaudited)
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 second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Feeder Funds’ actual expense ratio 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 were included, one’s costs would have been higher.
9
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example — (Continued)
June 30, 2009 (Unaudited)
Expense Example
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Annualized
| | Expenses Paid
|
| | | Account
| | Account
| | Expense
| | During Period*
|
| | | Value (1/1/09) | | Value (6/30/09) | | Ratio | | (1/1/09 to 6/30/09) |
The Internet Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,184.94 | | | | 1.89 | % | | $ | 10.24 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89 | % | | $ | 9.44 | |
| |
| |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,182.93 | | | | 2.14 | % | | $ | 11.58 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,014.18 | | | | 2.14 | % | | $ | 10.69 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,180.20 | | | | 2.64 | % | | $ | 14.27 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,011.70 | | | | 2.64 | % | | $ | 13.17 | |
| |
| |
The Global Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,394.07 | | | | 1.39 | % | | $ | 8.25 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39 | % | | $ | 6.95 | |
| |
| |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,398.31 | | | | 1.64 | % | | $ | 9.75 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,383.97 | | | | 2.14 | % | | $ | 12.65 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,014.18 | | | | 2.14 | % | | $ | 10.69 | |
| |
| |
The Paradigm Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,182.95 | | | | 1.64 | % | | $ | 8.88 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| |
| |
10
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Annualized
| | Expenses Paid
|
| | | Account
| | Account
| | Expense
| | During Period*
|
| | | Value (1/1/09) | | Value (6/30/09) | | Ratio | | (1/1/09 to 6/30/09) |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,182.07 | | | | 1.89 | % | | $ | 10.23 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89 | % | | $ | 9.44 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,178.86 | | | | 2.39 | % | | $ | 12.91 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,012.94 | | | | 2.39 | % | | $ | 11.93 | |
| |
| |
| Institutional Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,184.90 | | | | 1.44 | % | | $ | 7.80 | |
| Institutional Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44 | % | | $ | 7.20 | |
| |
| |
The Medical Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,107.68 | | | | 1.39 | % | | $ | 7.26 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39 | % | | $ | 6.95 | |
| |
| |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,107.38 | | | | 1.64 | % | | $ | 8.57 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,103.84 | | | | 2.14 | % | | $ | 11.16 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,014.18 | | | | 2.14 | % | | $ | 10.69 | |
| |
| |
The Small Cap Opportunities Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,331.05 | | | | 1.64 | % | | $ | 9.48 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| |
| |
11
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Annualized
| | Expenses Paid
|
| | | Account
| | Account
| | Expense
| | During Period*
|
| | | Value (1/1/09) | | Value (6/30/09) | | Ratio | | (1/1/09 to 6/30/09) |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,329.75 | | | | 1.89 | % | | $ | 10.92 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89 | % | | $ | 9.44 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,325.85 | | | | 2.39 | % | | $ | 13.78 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,012.94 | | | | 2.39 | % | | $ | 11.93 | |
| |
| |
| Institutional Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,332.07 | | | | 1.44 | % | | $ | 8.33 | |
| Institutional Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44 | % | | $ | 7.20 | |
| |
| |
The Kinetics Government Money Market Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,000.00 | | | | 0.09 | % | | $ | 0.45 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,024.35 | | | | 0.09 | % | | $ | 0.45 | |
| |
| |
The Market Opportunities Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,297.78 | | | | 1.64 | % | | $ | 9.34 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| |
| |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,296.40 | | | | 1.89 | % | | $ | 10.76 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89 | % | | $ | 9.44 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,295.68 | | | | 2.39 | % | | $ | 13.60 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,012.94 | | | | 2.39 | % | | $ | 11.93 | |
| |
| |
12
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Annualized
| | Expenses Paid
|
| | | Account
| | Account
| | Expense
| | During Period*
|
| | | Value (1/1/09) | | Value (6/30/09) | | Ratio | | (1/1/09 to 6/30/09) |
| Institutional Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,300.97 | | | | 1.44 | % | | $ | 8.22 | |
| Institutional Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44 | % | | $ | 7.20 | |
| |
| |
The Water Infrastructure Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,064.39 | | | | 1.64 | % | | $ | 8.39 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.66 | | | | 1.64 | % | | $ | 8.20 | |
| |
| |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,063.24 | | | | 1.89 | % | | $ | 9.67 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.89 | % | | $ | 9.44 | |
| |
| |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,059.68 | | | | 2.39 | % | | $ | 12.21 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,012.94 | | | | 2.39 | % | | $ | 11.93 | |
| |
| |
| Institutional Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,066.84 | | | | 1.44 | % | | $ | 7.38 | |
| Institutional Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.65 | | | | 1.44 | % | | $ | 7.20 | |
| |
| |
The Multi-Disciplinary Fund | | | | | | | | | | | | | | | | |
| No Load Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,094.89 | | | | 1.49 | % | | $ | 7.74 | |
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,017.41 | | | | 1.49 | % | | $ | 7.45 | |
| |
| |
| Advisor Class A Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,093.90 | | | | 1.74 | % | | $ | 9.03 | |
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,016.17 | | | | 1.74 | % | | $ | 8.70 | |
| |
| |
13
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | Annualized
| | Expenses Paid
|
| | | Account
| | Account
| | Expense
| | During Period*
|
| | | Value (1/1/09) | | Value (6/30/09) | | Ratio | | (1/1/09 to 6/30/09) |
| Advisor Class C Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,090.58 | | | | 2.24 | % | | $ | 11.61 | |
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,013.69 | | | | 2.24 | % | | $ | 11.18 | |
| |
| |
| Institutional Class Actual — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,097.21 | | | | 1.29 | % | | $ | 6.71 | |
| Institutional Class Hypothetical (5% return before expenses) — after expense reimbursement | | $ | 1,000.00 | | | $ | 1,018.40 | | | | 1.29 | % | | $ | 6.46 | |
| |
| Note: | Each Feeder Fund records its proportionate share of the respective Master Portfolio’s expenses, including directed brokerage credits, on a daily basis. Any expense reductions includes Feeder Fund-specific expenses as well as the expenses allocated for the Master Portfolio. |
| |
| * | Expenses are equal to the Fund’s annualized expense ratio, which includes waived fees or reimbursed expenses, multiplied by the average account value over the period, multiplied by 181/365. |
14
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Assets & Liabilities
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Internet
| | | The Global
| |
| | | Fund | | | Fund | |
| | |
| |
ASSETS: | | | | | | | | |
| Investments in the Master Portfolios, at value* | | $ | 86,409,799 | | | $ | 3,565,738 | |
| Receivable from Adviser | | | 23,366 | | | | 13,442 | |
| Receivable for Fund shares sold | | | 27,627 | | | | 44,432 | |
| Prepaid expenses and other assets | | | 22,023 | | | | 21,531 | |
| | | | | | | | | |
| Total assets | | | 86,482,815 | | | | 3,645,143 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 15,431 | | | | 44,432 | |
| Payable to Directors and Officers | | | 1,200 | | | | 28 | |
| Payable for Fund shares repurchased | | | 12,196 | | | | — | |
| Payable for service fees | | | 17,845 | | | | 698 | |
| Payable for distribution fees | | | 174 | | | | 29 | |
| Accrued expenses and other liabilities | | | 60,636 | | | | 11,112 | |
| | | | | | | | | |
| Total liabilities | | | 107,482 | | | | 56,299 | |
| | | | | | | | | |
| Net assets | | $ | 86,375,333 | | | $ | 3,588,844 | |
| | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital | | $ | 258,357,828 | | | $ | 13,387,416 | |
| Accumulated net investment income (loss) | | | (634,042 | ) | | | 19,737 | |
| Accumulated net realized loss on investments, foreign currency and written option contracts | | | (178,880,222 | ) | | | (9,003,443 | ) |
| Net unrealized appreciation (depreciation) on: | | | | | | | | |
| Investments and foreign currency | | | 7,578,487 | | | | (814,866 | ) |
| Written option contracts | | | (46,718 | ) | | | — | |
| | | | | | | | | |
| Net Assets | | $ | 86,375,333 | | | $ | 3,588,844 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE —
NO LOAD CLASS: | | | | | | | | |
| Net assets | | $ | 85,913,011 | | | $ | 3,477,844 | |
| Shares outstanding | | | 3,501,318 | | | | 1,057,267 | |
| Net asset value per share (offering and redemption price) | | $ | 24.54 | | | $ | 3.29 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | | |
| Net assets | | $ | 363,460 | | | $ | 90,677 | |
| Shares outstanding | | | 14,987 | | | | 27,480 | |
| Net asset value per share (redemption price) | | $ | 24.25 | | | $ | 3.30 | |
| | | | | | | | | |
| Offering price per share ($24.25 divided by .9425 and $3.30 divided by .9425) | | $ | 25.73 | | | $ | 3.50 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | | |
| Net assets | | $ | 98,862 | | | $ | 20,323 | |
| Shares outstanding | | | 4,146 | | | | 6,206 | |
| Net asset value per share (offering and redemption price) | | $ | 23.85 | | | $ | 3.27 | |
| | | | | | | | | |
| |
| * | Each Feeder Fund invests 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 Fund’s financial statements. |
See Notes to the Financial Statements.
15
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Paradigm
| | | The Medical
| |
| | | Fund | | | Fund | |
| | |
| |
ASSETS: | | | | | | | | |
| Investments in the Master Portfolios, at value* | | $ | 1,330,724,399 | | | $ | 19,477,387 | |
| Receivable from Adviser | | | 97,802 | | | | 16,424 | |
| Receivable for Fund shares sold | | | 3,848,278 | | | | 156,926 | |
| Prepaid expenses and other assets | | | 101,304 | | | | 19,947 | |
| | | | | | | | | |
| Total assets | | | 1,334,771,783 | | | | 19,670,684 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 673,099 | | | | 153,113 | |
| Payable to Directors and Officers | | | 19,100 | | | | 285 | |
| Payable for Fund shares repurchased | | | 3,175,179 | | | | 3,813 | |
| Payable for service fees | | | 253,826 | | | | 3,972 | |
| Payable for distribution fees | | | 171,000 | | | | 946 | |
| Accrued expenses and other liabilities | | | 392,216 | | | | 16,171 | |
| | | | | | | | | |
| Total liabilities | | | 4,684,420 | | | | 178,300 | |
| | | | | | | | | |
| Net assets | | $ | 1,330,087,363 | | | $ | 19,492,384 | |
| | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital | | $ | 2,468,062,824 | | | $ | 22,874,267 | |
| Accumulated net investment income | | | 8,350,999 | | | | 137,530 | |
| Accumulated net realized loss on investments, foreign currency and written option contracts | | | (865,136,832 | ) | | | (455,745 | ) |
| Net unrealized depreciation on: | | | | | | | | |
| Investments and foreign currency | | | (281,189,628 | ) | | | (3,063,668 | ) |
| | | | | | | | | |
| Net Assets | | $ | 1,330,087,363 | | | $ | 19,492,384 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | | |
| Net assets | | $ | 807,516,039 | | | $ | 15,801,684 | |
| Shares outstanding | | | 47,296,442 | | | | 936,601 | |
| Net asset value per share (offering and redemption price) | | $ | 17.07 | | | $ | 16.87 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | | |
| Net assets | | $ | 242,890,367 | | | $ | 3,225,123 | |
| Shares outstanding | | | 14,499,743 | | | | 195,505 | |
| Net asset value per share (redemption price) | | $ | 16.75 | | | $ | 16.50 | |
| | | | | | | | | |
| Offering price per share ($16.75 divided by .9425 and $16.50 divided by .9425) | | $ | 17.77 | | | $ | 17.51 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | | |
| Net assets | | $ | 155,121,010 | | | $ | 465,577 | |
| Shares outstanding | | | 9,527,840 | | | | 28,444 | |
| Net asset value per share (offering and redemption price) | | $ | 16.28 | | | $ | 16.37 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | | | | | |
| Net assets | | $ | 124,559,947 | | | | | |
| Shares outstanding | | | 7,280,770 | | | | | |
| Net asset value per share (offering and redemption price) | | $ | 17.11 | | | | | |
| | | | | | | | | |
| |
| * | Each Feeder Fund invests 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 Fund’s financial statements. |
See Notes to the Financial Statements.
16
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | | | | The Kinetics
| |
| | | The Small Cap
| | | Government
| |
| | | Opportunities
| | | Money Market
| |
| | | Fund | | | Fund | |
| | |
| |
ASSETS: | | | | | | | | |
| Investments in the Master Portfolios, at value* | | $ | 251,304,143 | | | $ | 1,866,620 | |
| Receivable from Adviser | | | 16,575 | | | | 5,629 | |
| Receivable for Master Portfolio interest sold | | | — | | | | 26,382 | |
| Receivable for Fund shares sold | | | 670,223 | | | | — | |
| Prepaid expenses and other assets | | | 43,937 | | | | 10,748 | |
| | | | | | | | | |
| Total assets | | | 252,034,878 | | | | 1,909,379 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
| Payable for Master Portfolio interest purchased | | | 382,665 | | | | — | |
| Payable to Directors and Officers | | | 3,221 | | | | 24 | |
| Payable for Fund shares repurchased | | | 287,558 | | | | 26,382 | |
| Payable for service fees | | | 37,546 | | | | 401 | |
| Payable for distribution fees | | | 4,995 | | | | — | |
| Accrued expenses and other liabilities | | | 88,558 | | | | 6,839 | |
| | | | | | | | | |
| Total liabilities | | | 804,543 | | | | 33,646 | |
| | | | | | | | | |
| Net assets | | $ | 251,230,335 | | | $ | 1,875,733 | |
| | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital | | $ | 469,271,404 | | | $ | 1,875,733 | |
| Accumulated net investment loss | | | (310,203 | ) | | | — | |
| Accumulated net realized loss on investments and foreign currency | | | (175,268,528 | ) | | | — | |
| Net unrealized depreciation on: | | | | | | | | |
| Investments and foreign currency | | | (42,462,338 | ) | | | — | |
| | | | | | | | | |
| Net Assets | | $ | 251,230,335 | | | $ | 1,875,733 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | | |
| Net assets | | $ | 159,740,042 | | | $ | 1,875,733 | |
| Shares outstanding | | | 9,113,866 | | | | 1,875,733 | |
| Net asset value per share (offering and redemption price) | | $ | 17.53 | | | $ | 1.00 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | | |
| Net assets | | $ | 12,809,891 | | | | | |
| Shares outstanding | | | 740,559 | | | | | |
| Net asset value per share (redemption price) | | $ | 17.30 | | | | | |
| | | | | | | | | |
| Offering price per share ($17.30 divided by .9425) | | $ | 18.36 | | | | | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | | |
| Net assets | | $ | 3,464,398 | | | | | |
| Shares outstanding | | | 202,263 | | | | | |
| Net asset value per share (offering and redemption price) | | $ | 17.13 | | | | | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | | | | | |
| Net assets | | $ | 75,216,004 | | | | | |
| Shares outstanding | | | 4,280,509 | | | | | |
| Net asset value per share (offering and redemption price) | | $ | 17.57 | | | | | |
| | | | | | | | | |
| |
| * | Each Feeder Fund invests 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 Fund’s financial statements. |
See Notes to the Financial Statements.
17
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Market
| | | The Water
| |
| | | Opportunities
| | | Infrastructure
| |
| | | Fund | | | Fund | |
| | |
| |
ASSETS: | | | | | | | | |
| Investments in the Master Portfolios, at value* | | $ | 61,035,606 | | | $ | 15,844,421 | |
| Receivable from Adviser | | | 23,514 | | | | 14,918 | |
| Receivable for Master Portfolio interest sold | | | 46,874 | | | | — | |
| Receivable for Fund shares sold | | | 92,672 | | | | 32,526 | |
| Prepaid expenses and other assets | | | 29,328 | | | | 38,248 | |
| | | | | | | | | |
| Total assets | | | 61,227,994 | | | | 15,930,113 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
| Payable for Master Portfolio interest purchased | | | — | | | | 20,008 | |
| Payable to Directors and Officers | | | 827 | | | | 251 | |
| Payable for Fund shares repurchased | | | 139,546 | | | | 12,518 | |
| Payable for service fees | | | 12,714 | | | | 3,202 | |
| Payable for distribution fees | | | 7,238 | | | | 1,899 | |
| Accrued expenses and other liabilities | | | 23,103 | | | | 14,366 | |
| | | | | | | | | |
| Total liabilities | | | 183,428 | | | | 52,244 | |
| | | | | | | | | |
| Net assets | | $ | 61,044,566 | | | $ | 15,877,869 | |
| | | | | | | | | |
NET ASSETS CONSIST OF: | | | | | | | | |
| Paid in capital | | $ | 103,515,700 | | | $ | 24,141,298 | |
| Accumulated net investment income | | | 148,126 | | | | 29,619 | |
| Accumulated net realized loss on investments, foreign currency, options and written option contracts | | | (33,854,049 | ) | | | (6,819,047 | ) |
| Net unrealized appreciation (depreciation) on: | | | | | | | | |
| Investments and foreign currency | | | (8,968,784 | ) | | | (1,474,001 | ) |
| Written option contracts | | | 203,573 | | | | — | |
| | | | | | | | | |
| Net Assets | | $ | 61,044,566 | | | $ | 15,877,869 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | | | | | |
| Net assets | | $ | 36,492,775 | | | $ | 7,375,163 | |
| Shares outstanding | | | 3,895,312 | | | | 910,655 | |
| Net asset value per share (offering and redemption price) | | $ | 9.37 | | | $ | 8.10 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | | | | | |
| Net assets | | $ | 19,046,525 | | | $ | 6,052,075 | |
| Shares outstanding | | | 2,034,771 | | | | 749,846 | |
| Net asset value per share (redemption price) | | $ | 9.36 | | | $ | 8.07 | |
| | | | | | | | | |
| Offering price per share ($9.36 divided by .9425 and $8.07 divided by .9425) | | $ | 9.93 | | | $ | 8.56 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | | | | | |
| Net assets | | $ | 5,498,340 | | | $ | 2,213,075 | |
| Shares outstanding | | | 591,929 | | | | 276,834 | |
| Net asset value per share (offering and redemption price) | | $ | 9.29 | | | $ | 7.99 | |
| | | | | | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | | | | | |
| Net assets | | $ | 6,926 | | | $ | 237,556 | |
| Shares outstanding | | | 738 | | | | 29,173 | |
| Net asset value per share (offering and redemption price) | | $ | 9.38 | | | $ | 8.14 | |
| | | | | | | | | |
| |
| * | Each Feeder Fund invests 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 Fund’s financial statements. |
See Notes to the Financial Statements.
18
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | |
| | | The Multi-
| |
| | | Disciplinary
| |
| | | Fund | |
| | |
| |
ASSETS: | | | | |
| Investments in the Master Portfolios, at value* | | $ | 925,382 | |
| Receivable from Adviser | | | 13,720 | |
| Receivable for Fund shares sold | | | 3,000 | |
| Prepaid expenses and other assets | | | 24,659 | |
| | | | | |
| Total assets | | | 966,761 | |
| | | | | |
LIABILITIES: | | | | |
| Payable for Master Portfolio interest purchased | | | 3,000 | |
| Payable to Directors and Officers | | | 17 | |
| Payable for service fees | | | 178 | |
| Payable for distribution fees | | | 71 | |
| Accrued expenses and other liabilities | | | 11,552 | |
| | | | | |
| Total liabilities | | | 14,818 | |
| | | | | |
| Net assets | | $ | 951,943 | |
| | | | | |
NET ASSETS CONSIST OF: | | | | |
| Paid in capital | | $ | 943,351 | |
| Accumulated net investment loss | | | (3,726 | ) |
| Accumulated net realized loss on investments and written option contracts | | | (68,291 | ) |
| Net unrealized appreciation (depreciation) on: | | | | |
| Investments | | | (1,523 | ) |
| Written option contracts | | | 82,132 | |
| | | | | |
| Net Assets | | $ | 951,943 | |
| | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | | | | |
| Net assets | | $ | 680,656 | |
| Shares outstanding | | | 75,636 | |
| Net asset value per share (offering and redemption price) | | $ | 9.00 | |
| | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | | | | |
| Net assets | | $ | 91,827 | |
| Shares outstanding | | | 10,234 | |
| Net asset value per share (redemption price) | | $ | 8.97 | |
| | | | | |
| Offering price per share ($8.97 divided by .9425) | | $ | 9.52 | |
| | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | | | | |
| Net assets | | $ | 89,143 | |
| Shares outstanding | | | 10,000 | |
| Net asset value per share (offering and redemption price) | | $ | 8.91 | |
| | | | | |
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | | | | |
| Net assets | | $ | 90,317 | |
| Shares outstanding | | | 10,006 | |
| Net asset value per share (offering and redemption price) | | $ | 9.03 | |
| | | | | |
| |
| * | Each Feeder Fund invests 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 Fund’s financial statements. |
See Notes to the Financial Statements.
19
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Internet
| | | The Global
| |
| | | Fund | | | Fund | |
| | |
| |
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Dividends† | | $ | 305,969 | | | $ | 35,401 | |
| Interest | | | 206,761 | | | | 278 | |
| Income from securities lending | | | 62,557 | | | | 457 | |
| Expenses allocated from Master Portfolio | | | (525,604 | ) | | | (26,327 | ) |
| | | | | | | | | |
| Net investment income from Master Portfolio | | | 49,683 | | | | 9,809 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 372 | | | | 107 | |
| Distribution fees — Advisor Class C | | | 355 | | | | 42 | |
| Shareholder servicing fees — Advisor Class A | | | 372 | | | | 107 | |
| Shareholder servicing fees — Advisor Class C | | | 118 | | | | 13 | |
| Shareholder servicing fees — No Load Class | | | 93,902 | | | | 2,801 | |
| Transfer Agent fees and expenses | | | 52,191 | | | | 8,852 | |
| Reports to shareholders | | | 25,145 | | | | 1,349 | |
| Administration fees | | | 14,957 | | | | 438 | |
| Professional fees | | | 12,232 | | | | 3,322 | |
| Directors’ and Officers’ fees and expenses | | | 3,490 | | | | 100 | |
| Registration fees | | | 23,421 | | | | 27,628 | |
| Fund accounting fees | | | 1,071 | | | | 54 | |
| Other expenses | | | 6,106 | | | | 242 | |
| | | | | | | | | |
| Total expenses | | | 233,732 | | | | 45,055 | |
| Less, expense reimbursement | | | (45,004 | ) | | | (54,991 | ) |
| | | | | | | | | |
| Net expenses | | | 188,728 | | | | (9,936 | ) |
| | | | | | | | | |
| Net investment income (loss) | | | (139,045 | ) | | | 19,745 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 2,376,246 | | | | 5,152 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 10,744,771 | | | | 763,336 | |
| Written option contracts | | | 407,168 | | | | — | |
| | | | | | | | | |
| Net gain on investments | | | 13,528,185 | | | | 768,488 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 13,389,140 | | | $ | 788,233 | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 22,771 | | | $ | 2,602 | |
| | | | | | | | | |
See Notes to the Financial Statements.
20
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Paradigm
| | | The Medical
| |
| | | Fund | | | Fund | |
| | |
| |
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Dividends† | | $ | 11,964,354 | | | $ | 260,880 | |
| Interest | | | 2,330,320 | | | | 1,065 | |
| Income from securities lending | | | 2,166,282 | | | | 5,713 | |
| Expenses allocated from Master Portfolio | | | (7,864,848 | ) | | | (129,953 | ) |
| | | | | | | | | |
| Net investment income from Master Portfolio | | | 8,596,108 | | | | 137,705 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 274,031 | | | | 3,713 | |
| Distribution fees — Advisor Class C | | | 512,515 | | | | 1,501 | |
| Shareholder servicing fees — Advisor Class A | | | 274,031 | | | | 3,713 | |
| Shareholder servicing fees — Advisor Class C | | | 170,838 | | | | 500 | |
| Shareholder servicing fees — No Load Class | | | 847,992 | | | | 18,265 | |
| Shareholder servicing fees — Institutional Class | | | 115,623 | | | | — | |
| Transfer Agent fees and expenses | | | 194,308 | | | | 10,480 | |
| Reports to shareholders | | | 10,192 | | | | 2,994 | |
| Administration fees | | | 199,286 | | | | 3,398 | |
| Professional fees | | | 17,704 | | | | 7,755 | |
| Directors’ and Officers’ fees and expenses | | | 37,788 | | | | 941 | |
| Registration fees | | | 67,205 | | | | 20,140 | |
| Fund accounting fees | | | 27,825 | | | | 414 | |
| Other expenses | | | 59,849 | | | | 1,752 | |
| | | | | | | | | |
| Total expenses | | | 2,809,187 | | | | 75,566 | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (86,717 | ) | | | — | |
| Less, expense reimbursement | | | (487,111 | ) | | | (75,329 | ) |
| | | | | | | | | |
| Net expenses | | | 2,235,359 | | | | 237 | |
| | | | | | | | | |
| Net investment income | | | 6,360,749 | | | | 137,468 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | |
| Investments and foreign currency | | | (232,443,287 | ) | | | (196,227 | ) |
| Written option contracts expired or closed | | | — | | | | 19,458 | |
| Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
| Investments and foreign currency | | | 400,404,364 | | | | 1,874,230 | |
| Written option contracts | | | — | | | | (18,418 | ) |
| | | | | | | | | |
| Net gain on investments | | | 167,961,077 | | | | 1,679,043 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 174,321,826 | | | $ | 1,816,511 | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 861,806 | | | $ | 18,881 | |
| | | | | | | | | |
See Notes to the Financial Statements.
21
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | | | | The Kinetics
| |
| | | The Small Cap
| | | Government
| |
| | | Opportunities
| | | Money Market
| |
| | | Fund | | | Fund | |
| | |
| |
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Dividends† | | $ | 1,536,440 | | | $ | — | |
| Interest | | | 101,252 | | | | 1,093 | |
| Income from securities lending | | | 49,852 | | | | — | |
| Expenses allocated from Master Portfolio | | | (1,422,932 | ) | | | (11,169 | ) |
| | | | | | | | | |
| Net investment income (loss) from Master Portfolio | | | 264,612 | | | | (10,076 | ) |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 13,937 | | | | — | |
| Distribution fees — Advisor Class C | | | 10,672 | | | | — | |
| Shareholder servicing fees — Advisor Class A | | | 13,937 | | | | — | |
| Shareholder servicing fees — Advisor Class C | | | 3,557 | | | | — | |
| Shareholder servicing fees — No Load Class | | | 151,596 | | | | 3,028 | |
| Shareholder servicing fees — Institutional Class | | | 66,109 | | | | — | |
| Transfer Agent fees and expenses | | | 38,751 | | | | 2,774 | |
| Reports to shareholders | | | 17,511 | | | | 4,150 | |
| Administration fees | | | 40,927 | | | | 481 | |
| Professional fees | | | 13,536 | | | | 2,061 | |
| Directors’ and Officers’ fees and expenses | | | 7,014 | | | | 120 | |
| Registration fees | | | 35,560 | | | | 11,068 | |
| Fund accounting fees | | | 4,889 | | | | 67 | |
| Other expenses | | | 7,262 | | | | 668 | |
| | | | | | | | | |
| Total expenses | | | 425,258 | | | | 24,417 | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (49,582 | ) | | | — | |
| Less, expense reimbursement | | | (188,779 | ) | | | (34,591 | ) |
| | | | | | | | | |
| Net expenses | | | 186,897 | | | | (10,174 | ) |
| | | | | | | | | |
| Net investment income | | | 77,715 | | | | 98 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized loss on: | | | | | | | | |
| Investments and foreign currency | | | (33,738,882 | ) | | | (98 | ) |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 91,284,950 | | | | — | |
| Written option contracts | | | 1,310 | | | | — | |
| | | | | | | | | |
| Net gain (loss) on investments | | | 57,547,378 | | | | (98 | ) |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 57,625,093 | | | $ | — | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 78,522 | | | $ | — | |
| | | | | | | | | |
See Notes to the Financial Statements.
22
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Market
| | | The Water
| |
| | | Opportunities
| | | Infrastructure
| |
| | | Fund | | | Fund | |
| | |
| |
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Dividends† | | $ | 520,220 | | | $ | 190,018 | |
| Interest | | | 3,959 | | | | 3,305 | |
| Income from securities lending | | | 10,130 | | | | 2,797 | |
| Expenses allocated from Master Portfolio | | | (365,731 | ) | | | (114,104 | ) |
| | | | | | | | | |
| Net investment income from Master Portfolio | | | 168,578 | | | | 82,016 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Distribution fees — Advisor Class A | | | 21,091 | | | | 8,662 | |
| Distribution fees — Advisor Class C | | | 16,480 | | | | 6,635 | |
| Shareholder servicing fees — Advisor Class A | | | 21,091 | | | | 8,662 | |
| Shareholder servicing fees — Advisor Class C | | | 5,493 | | | | 2,211 | |
| Shareholder servicing fees — No Load Class | | | 37,716 | | | | 7,797 | |
| Shareholder servicing fees — Institutional Class | | | 6 | | | | 227 | |
| Transfer Agent fees and expenses | | | 14,669 | | | | 10,166 | |
| Reports to shareholders | | | 5,013 | | | | 3,402 | |
| Administration fees | | | 10,172 | | | | 2,657 | |
| Professional fees | | | 9,260 | | | | 6,635 | |
| Directors’ and Officers’ fees and expenses | | | 2,100 | | | | 881 | |
| Registration fees | | | 29,897 | | | | 27,449 | |
| Fund accounting fees | | | 1,270 | | | | 267 | |
| Other expenses | | | 4,420 | | | | 1,252 | |
| | | | | | | | | |
| Total expenses | | | 178,678 | | | | 86,903 | |
| | | | | | | | | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (4 | ) | | | (171 | ) |
| Less, expense reimbursement | | | (84,976 | ) | | | (61,428 | ) |
| | | | | | | | | |
| Net expenses | | | 93,698 | | | | 25,304 | |
| | | | | | | | | |
| Net investment income | | | 74,880 | | | | 56,712 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | | | | | | | | |
| Net realized loss on: | | | | | | | | |
| Investments and foreign currency | | | (7,158,619 | ) | | | (1,233,511 | ) |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 20,043,197 | | | | 1,831,025 | |
| Written option contracts | | | 203,580 | | | | — | |
| | | | | | | | | |
| Net gain on investments | | | 13,088,158 | | | | 597,514 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 13,163,038 | | | $ | 654,226 | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 32,340 | | | $ | 20,848 | |
| | | | | | | | | |
See Notes to the Financial Statements.
23
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | |
| | | The Multi-
| |
| | | Disciplinary
| |
| | | Fund | |
| | |
| |
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | | | | |
| Interest | | $ | 1,274 | |
| Expenses allocated from Master Portfolio | | | (12,626 | ) |
| | | | | |
| Net investment loss from Master Portfolio | | | (11,352 | ) |
| | | | | |
EXPENSES: | | | | |
| Distribution fees — Advisor Class A | | | 105 | |
| Distribution fees — Advisor Class C | | | 324 | |
| Shareholder servicing fees — Advisor Class A | | | 105 | |
| Shareholder servicing fees — Advisor Class C | | | 108 | |
| Shareholder servicing fees — No Load Class | | | 464 | |
| Shareholder servicing fees — Institutional Class | | | 83 | |
| Transfer Agent fees and expenses | | | 10,005 | |
| Reports to shareholders | | | 10 | |
| Administration fees | | | 119 | |
| Professional fees | | | 4,741 | |
| Directors’ and Officers’ fees and expenses | | | 30 | |
| Registration fees | | | 23,503 | |
| Fund accounting fees | | | 16 | |
| Other expenses | | | 260 | |
| | | | | |
| Total expenses | | | 39,873 | |
| Less, expense waiver for Institutional Class shareholder servicing fees | | | (62 | ) |
| Less, expense reimbursement | | | (47,437 | ) |
| | | | | |
| Net expenses | | | (7,626 | ) |
| | | | | |
| Net investment loss | | | (3,726 | ) |
| | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | | | | |
| Net realized gain (loss) on: | | | | |
| Investments | | | (27,566 | ) |
| Written option contracts expired or closed | | | 19,742 | |
| Net change in unrealized appreciation (depreciation) of: | | | | |
| Investments | | | (705 | ) |
| Written option contracts | | | 96,255 | |
| | | | | |
| Net gain on investments | | | 87,726 | |
| | | | | |
| Net increase in net assets resulting from operations | | $ | 84,000 | |
| | | | | |
See Notes to the Financial Statements.
24
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
| | | | | | | | | | | | | | | | | |
| | | The Internet Fund | | | The Global Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (139,045 | ) | | $ | 1,162,085 | | | $ | 19,745 | | | $ | 52,359 | |
| Net realized gain on sale of investments and foreign currency | | | 2,376,246 | | | | 1,853,798 | | | | 5,152 | | | | 188,701 | |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 11,151,939 | | | | (65,383,744 | ) | | | 763,336 | | | | (2,272,129 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 13,389,140 | | | | (62,367,861 | ) | | | 788,233 | | | | (2,031,069 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (180,775 | ) | | | — | | | | (42,183 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (180,775 | ) | | | — | | | | (42,183 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A:(1) | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (751 | ) | | | — | | | | (2,180 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (751 | ) | | | — | | | | (2,180 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: (1) | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (235 | ) | | | — | | | | (88 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (235 | ) | | | — | | | | (88 | ) |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 958,010 | | | | 6,464,409 | | | | 1,288,639 | | | | 1,558,631 | |
| Redemption fees | | | 226 | | | | 4,900 | | | | 6,341 | | | | 772 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 173,127 | | | | — | | | | 41,443 | �� |
| Cost of shares redeemed | | | (3,483,716 | ) | | | (36,080,016 | ) | | | (439,762 | ) | | | (862,547 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (2,525,480 | ) | | | (29,437,580 | ) | | | 855,218 | | | | 738,299 | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A:(1) | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 63,969 | | | | 156,223 | | | | 16,534 | | | | 182,086 | |
| Redemption fees | | | — | | | | 20 | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 615 | | | | — | | | | 2,065 | |
| Cost of shares redeemed | | | (66,201 | ) | | | (241,742 | ) | | | (54,977 | ) | | | (21,680 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (2,232 | ) | | | (84,884 | ) | | | (38,443 | ) | | | 162,471 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Advisor Class A shares and Advisor Class C shares of the Global Fund commenced operations on May 19, 2008. |
See Notes to the Financial Statements.
25
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Internet Fund | | | The Global Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C:(1) | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 200 | | | | 44,894 | | | | 10,000 | | | | 10,000 | |
| Redemption fees | | | — | | | | — | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 105 | | | | — | | | | 88 | |
| Cost of shares redeemed | | | (29,808 | ) | | | (147,129 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (29,608 | ) | | | (102,130 | ) | | | 10,000 | | | | 10,088 | |
| | | | | | | | | | | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | | | 10,831,820 | | | | (92,174,216 | ) | | | 1,615,008 | | | | (1,164,662 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 75,543,513 | | | | 167,717,729 | | | | 1,973,836 | | | | 3,138,498 | |
| | | | | | | | | | | | | | | | | |
| End of period* | | $ | 86,375,333 | | | $ | 75,543,513 | | | $ | 3,588,844 | | | $ | 1,973,836 | |
| | | | | | | | | | | | | | | | | |
| *Including undistributed net investment income (loss) of: | | $ | (634,042 | ) | | $ | (494,997 | ) | | $ | 19,737 | | | $ | (8 | ) |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 42,731 | | | | 208,819 | | | | 452,998 | | | | 372,985 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 8,491 | | | | — | | | | 17,711 | |
| Shares redeemed | | | (167,838 | ) | | | (1,231,700 | ) | | | (184,509 | ) | | | (243,058 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (125,107 | ) | | | (1,014,390 | ) | | | 268,489 | | | | 147,638 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A:(1) | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,779 | | | | 6,346 | | | | 6,579 | | | | 52,744 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 30 | | | | — | | | | 882 | |
| Shares redeemed | | | (3,323 | ) | | | (8,709 | ) | | | (23,871 | ) | | | (8,854 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (544 | ) | | | (2,333 | ) | | | (17,292 | ) | | | 44,772 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C:(1) | | | | | | | | | | | | | | | | |
| Shares sold | | | 9 | | | | 2,063 | | | | 3,976 | | | | 2,193 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 5 | | | | — | | | | 37 | |
| Shares redeemed | | | (1,462 | ) | | | (4,784 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (1,453 | ) | | | (2,716 | ) | | | 3,976 | | | | 2,230 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Advisor Class A shares and Advisor Class C shares of the Global Fund commenced operations on May 19, 2008. |
See Notes to the Financial Statements.
26
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | | | The Medical Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 6,360,749 | | | $ | 14,464,539 | | | $ | 137,468 | | | $ | 187,354 | |
| Net realized gain (loss) on sale of investments, foreign currency and written option contracts expired or closed | | | (232,443,287 | ) | | | (630,047,922 | ) | | | (176,769 | ) | | | 369,226 | |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 400,404,364 | | | | (1,574,418,489 | ) | | | 1,855,812 | | | | (5,656,013 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 174,321,826 | | | | (2,190,001,872 | ) | | | 1,816,511 | | | | (5,099,433 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (160,902 | ) |
| Net realized gains | | | — | | | | (4,119,453 | ) | | | — | | | | (379,210 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (4,119,453 | ) | | | — | | | | (540,112 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (25,786 | ) |
| Net realized gains | | | — | | | | (1,395,788 | ) | | | — | | | | (72,741 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (1,395,788 | ) | | | — | | | | (98,527 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (1,481 | ) |
| Net realized gains | | | — | | | | (850,989 | ) | | | — | | | | (7,780 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (850,989 | ) | | | — | | | | (9,261 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | N/A | | | | N/A | |
| Net realized gains | | | — | | | | (706,833 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (706,833 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 136,826,097 | | | | 777,766,342 | | | | 2,177,714 | | | | 12,391,571 | |
| Redemption Fees | | | 30,177 | | | | 414,514 | | | | 1,058 | | | | 5,119 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 3,983,262 | | | | — | | | | 534,949 | |
| Cost of shares redeemed | | | (174,314,022 | ) | | | (1,675,903,934 | ) | | | (3,550,850 | ) | | | (6,247,291 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (37,457,748 | ) | | | (893,739,816 | ) | | | (1,372,078 | ) | | | 6,684,348 | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 33,461,896 | | | | 237,905,995 | | | | 923,435 | | | | 3,411,318 | |
| Redemption Fees | | | 39,259 | | | | 85,557 | | | | 1,382 | | | | 5,045 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 1,172,121 | | | | — | | | | 67,566 | |
| Cost of shares redeemed | | | (70,612,649 | ) | | | (207,346,143 | ) | | | (970,262 | ) | | | (1,198,061 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (37,111,494 | ) | | | 31,817,530 | | | | (45,445 | ) | | | 2,285,868 | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
27
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | | | The Medical Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 8,806,590 | | | | 112,960,292 | | | | 263,744 | | | | 501,414 | |
| Redemption Fees | | | 472 | | | | 14,030 | | | | — | | | | 336 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 763,533 | | | | — | | | | 5,511 | |
| Cost of shares redeemed | | | (23,670,725 | ) | | | (86,079,004 | ) | | | (152,292 | ) | | | (240,952 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (14,863,663 | ) | | | 27,658,851 | | | | 111,452 | | | | 266,309 | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS : | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 22,412,909 | | | | 234,720,520 | | | | N/A | | | | N/A | |
| Redemption Fees | | | 1,278 | | | | 27,867 | | | | N/A | | | | N/A | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 624,496 | | | | N/A | | | | N/A | |
| Cost of shares redeemed | | | (43,666,253 | ) | | | (517,865,576 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net decrease in net assets resulting from capital share transactions | | | (21,252,066 | ) | | | (282,492,693 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | | | 63,636,855 | | | | (3,313,831,063 | ) | | | 510,440 | | | | 3,489,192 | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 1,266,450,508 | | | | 4,580,281,571 | | | | 18,981,944 | | | | 15,492,752 | |
| | | | | | | | | | | | | | | | | |
| End of period* | | $ | 1,330,087,363 | | | $ | 1,266,450,508 | | | $ | 19,492,384 | | | $ | 18,981,944 | |
| | | | | | | | | | | | | | | | | |
| *Including undistributed net investment income of: | | $ | 8,350,999 | | | $ | 1,990,250 | | | $ | 137,530 | | | $ | 62 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 8,672,853 | | | | 30,563,817 | | | | 140,008 | | | | 644,585 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 282,239 | | | | — | | | | 35,404 | |
| Shares redeemed | | | (12,763,102 | ) | | | (73,373,736 | ) | | | (236,191 | ) | | | (349,528 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (4,090,249 | ) | | | (42,527,680 | ) | | | (96,183 | ) | | | 330,461 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 2,302,027 | | | | 9,802,715 | | | | 62,740 | | | | 199,403 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 84,490 | | | | — | | | | 4,568 | |
| Shares redeemed | | | (5,415,836 | ) | | | (10,100,248 | ) | | | (64,568 | ) | | | (80,265 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (3,113,809 | ) | | | (213,043 | ) | | | (1,828 | ) | | | 123,706 | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
28
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | | | The Medical Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 631,212 | | | | 4,474,742 | | | | 17,762 | | | | 27,549 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 56,496 | | | | — | | | | 374 | |
| Shares redeemed | | | (1,820,074 | ) | | | (4,547,903 | ) | | | (10,486 | ) | | | (14,415 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (1,188,862 | ) | | | (16,665 | ) | | | 7,276 | | | | 13,508 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,603,871 | | | | 9,395,948 | | | | N/A | | | | N/A | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 44,196 | | | | N/A | | | | N/A | |
| Shares redeemed | | | (3,199,344 | ) | | | (26,545,295 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net decrease in shares outstanding | | | (1,595,473 | ) | | | (17,105,151 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
29
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | | | | The Kinetics Government
| |
| | | The Small Cap Opportunities Fund | | | Money Market Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 77,715 | | | $ | 1,530,590 | | | $ | 98 | | | $ | 17,670 | |
| Net realized loss on sale of investments, foreign currency and written option contracts expired or closed | | | (33,738,882 | ) | | | (139,814,506 | ) | | | (98 | ) | | | (83 | ) |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 91,286,260 | | | | (332,379,674 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 57,625,093 | | | | (470,663,590 | ) | | | — | | | | 17,587 | |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | — | | | | (17,587 | ) |
| Net realized gains | | | — | | | | (2,580,104 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (2,580,104 | ) | | | — | | | | (17,587 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | N/A | | | | N/A | |
| Net realized gains | | | — | | | | (242,741 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (242,741 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | N/A | | | | N/A | |
| Net realized gains | | | — | | | | (57,484 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (57,484 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | — | | | | N/A | | | | N/A | |
| Net realized gains | | | — | | | | (1,390,250 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (1,390,250 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 26,389,182 | | | | 124,972,348 | | | | 1,061,758 | | | | 4,422,225 | |
| Redemption fees | | | 4,093 | | | | 67,878 | | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 2,547,716 | | | | — | | | | 15,599 | |
| Cost of shares redeemed | | | (27,780,618 | ) | | | (447,983,662 | ) | | | (1,873,966 | ) | | | (2,939,399 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (1,387,343 | ) | | | (320,395,720 | ) | | | (812,208 | ) | | | 1,498,425 | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 1,154,959 | | | | 12,727,793 | | | | N/A | | | | N/A | |
| Redemption fees | | | 91 | | | | 4,012 | | | | N/A | | | | N/A | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 216,516 | | | | N/A | | | | N/A | |
| Cost of shares redeemed | | | (3,628,566 | ) | | | (16,402,510 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net decrease in net assets resulting from capital share transactions | | | (2,473,516 | ) | | | (3,454,189 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
30
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | | | | The Kinetics Government
| |
| | | The Small Cap Opportunities Fund | | | Money Market Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 169,779 | | | | 3,622,686 | | | | N/A | | | | N/A | |
| Redemption fees | | | 5 | | | | 59 | | | | N/A | | | | N/A | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 28,520 | | | | N/A | | | | N/A | |
| Cost of shares redeemed | | | (400,260 | ) | | | (2,146,275 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (230,476 | ) | | | 1,504,990 | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 7,570,363 | | | | 33,049,688 | | | | N/A | | | | N/A | |
| Redemption fees | | | 161 | | | | 1,510 | | | | N/A | | | | N/A | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 1,357,045 | | | | N/A | | | | N/A | |
| Cost of shares redeemed | | | (20,214,157 | ) | | | (114,107,993 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net decrease in net assets resulting from capital share transactions | | | (12,643,633 | ) | | | (79,699,750 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | | | 40,890,125 | | | | (876,978,838 | ) | | | (812,208 | ) | | | 1,498,425 | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 210,340,210 | | | | 1,087,319,048 | | | | 2,687,941 | | | | 1,189,516 | |
| | | | | | | | | | | | | | | | | |
| End of period* | | $ | 251,230,335 | | | $ | 210,340,210 | | | $ | 1,875,733 | | | $ | 2,687,941 | |
| | | | | | | | | | | | | | | | | |
| *Including undistributed net investment income (loss) of: | | $ | (310,203 | ) | | $ | (387,918 | ) | | $ | — | | | $ | 83 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 1,598,947 | | | | 4,796,386 | | | | 1,061,758 | | | | 4,422,225 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 196,884 | | | | — | | | | 15,599 | |
| Shares redeemed | | | (2,127,128 | ) | | | (18,197,054 | ) | | | (1,873,966 | ) | | | (2,939,399 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (528,181 | ) | | | (13,203,784 | ) | | | (812,208 | ) | | | 1,498,425 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 80,638 | | | | 530,590 | | | | N/A | | | | N/A | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 16,941 | | | | N/A | | | | N/A | |
| Shares redeemed | | | (269,273 | ) | | | (768,900 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net decrease in shares outstanding | | | (188,635 | ) | | | (221,369 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 12,111 | | | | 162,488 | | | | N/A | | | | N/A | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 2,247 | | | | N/A | | | | N/A | |
| Shares redeemed | | | (32,115 | ) | | | (99,012 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (20,004 | ) | | | 65,723 | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
31
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | | | | The Kinetics Government
| |
| | | The Small Cap Opportunities Fund | | | Money Market Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 549,552 | | | | 1,421,164 | | | | N/A | | | | N/A | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 104,710 | | | | N/A | | | | N/A | |
| Shares redeemed | | | (1,455,575 | ) | | | (6,261,434 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| Net decrease in shares outstanding | | | (906,023 | ) | | | (4,735,560 | ) | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
32
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Fund | | | The Water Infrastructure Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 74,880 | | | $ | 726,380 | | | $ | 56,712 | | | $ | 187,272 | |
| Net realized loss on sale of investments, foreign currency and written option contracts expired or closed | | | (7,158,619 | ) | | | (26,771,823 | ) | | | (1,233,511 | ) | | | (5,802,786 | ) |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 20,246,777 | | | | (46,310,390 | ) | | | 1,831,025 | | | | (3,337,404 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 13,163,038 | | | | (72,355,833 | ) | | | 654,226 | | | | (8,952,918 | ) |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (285,733 | ) | | | — | | | | — | |
| Net realized gains | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (285,733 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (62,736 | ) | | | — | | | | — | |
| Net realized gains | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (62,736 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (8,853 | ) | | | — | | | | — | |
| Net realized gains | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (8,853 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS:(1) | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (62 | ) | | | — | | | | — | |
| Net realized gains | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (62 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 3,244,296 | | | | 44,566,651 | | | | 1,830,456 | | | | 27,335,651 | |
| Redemption fees | | | 113,416 | | | | 27,450 | | | | 227 | | | | 489 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 283,718 | | | | — | | | | — | |
| Cost of shares redeemed | | | (8,868,873 | ) | | | (32,158,187 | ) | | | (1,407,762 | ) | | | (16,642,255 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (5,511,161 | ) | | | 12,719,632 | | | | 422,921 | | | | 10,693,885 | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 1,639,548 | | | | 19,183,719 | | | | 2,776,624 | | | | 7,936,561 | |
| Redemption fees | | | 1,907 | | | | 7,471 | | | | 750 | | | | 2,093 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 51,974 | | | | — | | | | — | |
| Cost of shares redeemed | | | (5,417,733 | ) | | | (18,476,958 | ) | | | (4,557,284 | ) | | | (869,788 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (3,776,278 | ) | | | 766,206 | | | | (1,779,910 | ) | | | 7,068,866 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Institutional Class shares of the Market Opportunities Fund commenced operations on May 19, 2008. |
See Notes to the Financial Statements.
33
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Fund | | | The Water Infrastructure Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | 905,273 | | | | 4,664,077 | | | | 690,051 | | | | 1,298,685 | |
| Redemption fees | | | 7 | | | | 186 | | | | 101 | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 7,291 | | | | — | | | | — | |
| Cost of shares redeemed | | | (1,272,685 | ) | | | (3,618,752 | ) | | | (167,303 | ) | | | (388,456 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (367,405 | ) | | | 1,052,802 | | | | 522,849 | | | | 910,229 | |
| | | | | | | | | | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS:(1) | | | | | | | | | | | | | | | | |
| Proceeds from shares sold | | | — | | | | 10,000 | | | | 16,238 | | | | 329,302 | |
| Redemption fees | | | — | | | | — | | | | 500 | | | | 69 | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 62 | | | | — | | | | — | |
| Cost of shares redeemed | | | — | | | | — | | | | (40,092 | ) | | | (116,019 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | — | | | | 10,062 | | | | (23,354 | ) | | | 213,352 | |
| | | | | | | | | | | | | | | | | |
TOTAL INCREASE (DECREASE) IN NET ASSETS: | | | 3,508,194 | | | | (58,164,515 | ) | | | (203,268 | ) | | | 9,933,414 | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 57,536,372 | | | | 115,700,887 | | | | 16,081,137 | | | | 6,147,723 | |
| | | | | | | | | | | | | | | | | |
| End of period* | | $ | 61,044,566 | | | $ | 57,536,372 | | | $ | 15,877,869 | | | $ | 16,081,137 | |
| | | | | | | | | | | | | | | | | |
| *Including undistributed net investment income (loss) of: | | $ | 148,126 | | | $ | 73,246 | | | $ | 29,619 | | | $ | (27,093 | ) |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | | | | | | | | | |
| Shares sold | | | 396,829 | | | | 3,752,788 | | | | 240,016 | | | | 2,786,011 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 40,416 | | | | — | | | | — | |
| Shares redeemed | | | (1,241,567 | ) | | | (2,962,139 | ) | | | (196,067 | ) | | | (2,153,711 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (844,738 | ) | | | 831,065 | | | | 43,949 | | | | 632,300 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | | | | | | | | | |
| Shares sold | | | 232,887 | | | | 1,638,020 | | | | 385,895 | | | | 875,948 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 7,414 | | | | — | | | | — | |
| Shares redeemed | | | (762,055 | ) | | | (1,813,295 | ) | | | (644,841 | ) | | | (108,948 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (529,168 | ) | | | (167,861 | ) | | | (258,946 | ) | | | 767,000 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Institutional Class shares of the Market Opportunities Fund commenced operations on May 19, 2008. |
See Notes to the Financial Statements.
34
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Fund | | | The Water Infrastructure Fund | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009 | | | December 31, 2008 | | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | | | (Unaudited) | | | | |
| | |
| |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | | | | | | | | | |
| Shares sold | | | 112,492 | | | | 445,382 | | | | 92,382 | | | | 141,741 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 1,047 | | | | — | | | | — | |
| Shares redeemed | | | (186,277 | ) | | | (329,688 | ) | | | (23,922 | ) | | | (51,559 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (73,785 | ) | | | 116,741 | | | | 68,460 | | | | 90,182 | |
| | | | | | | | | | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS:(1) | | | | | | | | | | | | | | | | |
| Shares sold | | | — | | | | 729 | | | | 2,020 | | | | 36,839 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 9 | | | | — | | | | — | |
| Shares redeemed | | | — | | | | — | | | | (5,707 | ) | | | (14,073 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | — | | | | 738 | | | | (3,687 | ) | | | 22,766 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Institutional Class shares of the Market Opportunities Fund commenced operations on May 19, 2008. |
See Notes to the Financial Statements.
35
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | |
| | | The Multi-Disciplinary Portfolio | |
| | | For the
| | | From February 11, 2008ˆ
| |
| | | Six Months Ended
| | | through
| |
| | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | |
| | |
| |
OPERATIONS: | | | | | | | | |
| Net investment loss | | $ | (3,726 | ) | | $ | (358 | ) |
| Net realized loss on sale of investments and written option contracts expired or closed | | | (7,824 | ) | | | (60,467 | ) |
| Net change in unrealized appreciation (depreciation) of investments and written options | | | 95,550 | | | | (14,941 | ) |
| | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 84,000 | | | | (75,766 | ) |
| | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | | | | | | | | |
| Net investment income | | | — | | | | (48 | ) |
| Net realized gains | | | — | | | | — | |
| | | | | | | | | |
| Total distributions | | | — | | | | (48 | ) |
| | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | | | | | | | | |
| Net investment income | | | — | | | | (27 | ) |
| Net realized gains | | | — | | | | — | |
| | | | | | | | | |
| Total distributions | | | — | | | | (27 | ) |
| | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | | | | | | | | |
| Net investment income | | | — | | | | (5 | ) |
| Net realized gains | | | — | | | | — | |
| | | | | | | | | |
| Total distributions | | | — | | | | (5 | ) |
| | | | | | | | | |
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | | | | | | | | |
| Net investment income | | | — | | | | (48 | ) |
| Net realized gains | | | — | | | | — | |
| | | | | | | | | |
| Total distributions | | | — | | | | (48 | ) |
| | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | | | | | | | | |
| Proceeds from shares sold | | | 521,000 | | | | 119,689 | |
| Redemption fees | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 44 | |
| Cost of shares redeemed | | | — | | | | (4 | ) |
| | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | 521,000 | | | | 119,729 | |
| | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | | | | | | | | |
| Proceeds from shares sold | | | — | | | | 102,357 | |
| Redemption fees | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 27 | |
| Cost of shares redeemed | | | — | | | | — | |
| | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | — | | | | 102,384 | |
| | | | | | | | | |
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | | | | | | | | |
| Proceeds from shares sold | | | — | | | | 107,839 | |
| Redemption fees | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 5 | |
| Cost of shares redeemed | | | (7,168 | ) | | | — | |
| | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (7,168 | ) | | | 107,844 | |
| | | | | | | | | |
| |
| ˆ | Commencement of operations. |
See Notes to the Financial Statements.
36
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | |
| | | The Multi-Disciplinary Portfolio | |
| | | For the
| | | From February 11, 2008ˆ
| |
| | | Six Months Ended
| | | through
| |
| | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | |
| | |
| |
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | | | | | | | | |
| Proceeds from shares sold | | | — | | | | 100,000 | |
| Redemption fees | | | — | | | | — | |
| Proceeds from shares issued to holders in reinvestment of dividends | | | — | | | | 48 | |
| Cost of shares redeemed | | | — | | | | — | |
| | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | — | | | | 100,048 | |
| | | | | | | | | |
TOTAL INCREASE IN NET ASSETS: | | | 597,832 | | | | 354,111 | |
NET ASSETS: | | | | | | | | |
| Beginning of period | | | 354,111 | | | | — | |
| | | | | | | | | |
| End of period* | | $ | 951,943 | | | $ | 354,111 | |
| | | | | | | | | |
| *Including undistributed net investment loss of: | | $ | (3,726 | ) | | $ | — | |
| | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | | | | | | | | |
| Shares sold | | | 63,540 | | | | 12,091 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 5 | |
| Shares redeemed | | | — | | | | — | |
| | | | | | | | | |
| Net increase in shares outstanding | | | 63,540 | | | | 12,096 | |
| | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | | | | | | | | |
| Shares sold | | | — | | | | 10,231 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 3 | |
| Shares redeemed | | | — | | | | — | |
| | | | | | | | | |
| Net increase in shares outstanding | | | — | | | | 10,234 | |
| | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | | | | | | | | |
| Shares sold | | | — | | | | 10,828 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 1 | |
| Shares redeemed | | | (829 | ) | | | — | |
| | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (829 | ) | | | 10,829 | |
| | | | | | | | | |
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | | | | | | | | |
| Shares sold | | | — | | | | 10,000 | |
| Shares issued in reinvestments of dividends and distributions | | | — | | | | 6 | |
| Shares redeemed | | | — | | | | — | |
| | | | | | | | | |
| Net increase in shares outstanding | | | — | | | | 10,006 | |
| | | | | | | | | |
| |
| ˆ | Commencement of operations. |
See Notes to the Financial Statements.
37
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
June 30, 2009 (Unaudited)
1. Organization
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 Kinetics Government Money Market Fund (“Government”), The Market Opportunities Fund (“Market Opportunities”), The Water Infrastructure Fund (“Water Infrastructure”) 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), February 3, 2000 (Government), March 20, 2000 (Small Cap), January 31, 2006 (Market Opportunities), June 29, 2007 (Water Infrastructure) 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 Water Infrastructure 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.
38
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
Each Feeder Fund’s respective interest in the corresponding Master Portfolio as of June 30, 2009 is as follows:
| | | | | |
| | | Interest in
|
| | | Master Portfolio |
| |
| Internet Fund | | | 99.992% | |
| Global Fund | | | 99.882% | |
| Paradigm Fund | | | 97.909% | |
| Medical Fund | | | 99.933% | |
| Small Cap Fund | | | 99.992% | |
| Government Fund | | | 98.539% | |
| Market Opportunities Fund | | | 99.987% | |
| Water Infrastructure Fund | | | 99.491% | |
| Multi-Disciplinary Fund | | | 91.529% | |
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, 2009, each of the Feeder Funds, except the Government Fund, offer 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 service 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, 2009 each of the Feeder Funds, except the Government Fund, offer 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 service fee of 0.25% of average daily net assets. Advisor Class C shares do not have a sales charge.
As of June 30, 2009 each of the Feeder Funds offer No Load Class shares. No Load Class shares are subject to a service fee of 0.25% of average daily net assets but do not have 12b-1 fees or a sales charge.
As of June 30, 2009 the Paradigm, Small Cap, Market Opportunities, Water Infrastructure and Multi-Disciplinary Funds offer Institutional Class shares. Institutional Class shares are subject to a service 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 service fees paid by the Advisor Class A, Advisor Class C, No Load Class and 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, except the
39
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
Government 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 (other than securities held by the Kinetics Government Money Market Portfolio) 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”). 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. Purchased non-exchange traded options, futures, 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 mean of the most recent bid and asked prices. Exchange traded options are valued at the last reported sale price on an exchange on which the option is traded. If no sales are reported on a particular day, the mean between the highest bid and lowest asked quotations at the close of the exchanges will be used. 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.
Investment securities in The Kinetics Government Money Market Portfolio and 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
40
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
quotations are readily available (including restricted securities) are valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. At June 30, 2009 0.03%, 0.29%, 0.00% and 0.00% fair valued securities were held by the Internet Portfolio, Paradigm Portfolio, Small Cap Opportunities Portfolio and Market Opportunities Portfolio, respectively. Please see the Notes to Financial Statements for the Master Portfolios for a Summary of Fair Value Exposure.
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 100% 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.
Options Written
The Portfolios are subject to equity price risk in the normal course of pursuing its investment objectives. The Portfolios may purchase or write options to gain exposure to, or hedge against changes in the value of equities. 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). Realized and unrealized gains or losses are included in the Statement of Operations. As collateral for
41
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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 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.
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, 2009 the Global Portfolio and Paradigm Portfolio had restricted securities with an aggregate value of $67,279 and $6,721,000 representing 1.88% and 0.49% , respectively, of its net assets. 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, 2009, the following Master Portfolios held illiquid securities:
| | | | | | | | | |
| | | Market
| | Percentage of
|
| | | Value | | Net Assets |
| |
| The Internet Portfolio | | $ | 24,393 | | | | 0.03 | % |
| The Paradigm Portfolio | | | 3,879,178 | | | | 0.29 | |
| The Small Cap Opportunities Portfolio | | | 2 | | | | 0.00 | |
| The Market Opportunities Portfolio | | | 0 | | | | 0.00 | |
42
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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 331/3% of the total assets of each Portfolio (including any collateral posted) or 50% of the total assets of each 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 interest 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 Portfolio will be subject to taxation on its share of the Portfolio’s ordinary income and capital gains. It is intended that each Master Portfolio’s assets will be managed so an investor in the Portfolio 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
43
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. The character of 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, 2009, open tax years include the tax years December 31, 2005 through 2008. The Funds have no examination in progress. 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 accounting principles generally accepted in the United States of America 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 and interest income is recognized on the accrual basis. 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.
In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through August 28, 2009, the date the financial statements were available to be issued.
3. Investment Adviser
The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management, Inc. (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Master Portfolios. Under the terms of the Agreements, the Master Portfolios
44
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets, except for The Kinetics Government Money Market Portfolio, which compensates the Adviser at an annual rate of 0.50% of the Master Portfolio’s average daily net assets.
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 six months ended June 30, 2009, the rate earned by the Adviser from the Master Portfolios and the waived fees/reimbursed expenses for the Feeder Funds are as follows:
| | | | | | | | | |
| | | Internet | | Global |
| |
| Annual Advisory Rate | | | 1.25% | | | | 1.25% | |
| Expenses Reimbursed by Adviser through voluntary waiver | | $ | 45,004 | | | $ | 54,991 | |
| Expenses Reimbursed by Adviser through Institutional Class shareholder servicing fee waiver | | $ | — | | | $ | — | |
| | | | | | | | | |
| | | | | | | | | |
| | | Paradigm | | Medical |
| |
| Annual Advisory Rate | | | 1.25% | | | | 1.25% | |
| Expenses Reimbursed by Adviser through voluntary waiver | | $ | 487,111 | | | $ | 75,329 | |
| Expenses Reimbursed by Adviser through Institutional Class shareholder servicing fee waiver | | $ | 86,717 | | | $ | — | |
| | | | | | | | | |
| | | | | | | | | |
| | | Small Cap | | Government |
| |
| Annual Advisory Rate | | | 1.25% | | | | 0.50% | |
| Expenses Reimbursed by Adviser through voluntary waiver | | $ | 188,779 | | | $ | 34,591 | |
| Expenses Reimbursed by Adviser through Institutional Class shareholder servicing fee waiver | | $ | 49,582 | | | $ | — | |
| | | | | | | | | |
| | | | | | | | | |
| | | Market
| | Water
|
| | | Opportunities | | Infrastructure |
| |
| Annual Advisory Rate | | | 1.25% | | | | 1.25% | |
| Expenses Reimbursed by Adviser through voluntary waiver | | $ | 84,976 | | | $ | 61,428 | |
| Expenses Reimbursed by Adviser through Institutional Class shareholder servicing fee waiver | | $ | 4 | | | $ | 171 | |
| | | | | | | | | |
| | | | | | | | | |
| | | Multi-
| | |
| | | Disciplinary | | |
| |
| Annual Advisory Rate | | | 1.25% | | | | | |
| Expenses Reimbursed by Adviser through voluntary waiver | | $ | 47,437 | | | | | |
| Expenses Reimbursed by Adviser through Institutional Class shareholder servicing fee waiver | | $ | 62 | | | | | |
45
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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 Investment 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, 2010. For the six months ended June 30, 2009, the Adviser waived amounts depicted in the above table in shareholder servicing fees for the Institutional Class of the Paradigm Fund, the Small Cap Fund, the Market Opportunities Fund, the Water Infrastructure Fund and the Multi-Disciplinary Fund. 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, 2009, the Feeder Funds were allocated $12,000 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-1 Plans”). 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, 2009, payments under the 12b-1 Plan for the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure 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, 2009, the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure and Multi-Disciplinary Funds incurred expenses of $372, $107, $274,031, $3,713, $13,937, $21,091, $8,662 and $105 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, 2009, Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure and Multi-Disciplinary Funds Advisor
46
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
Class C shares incurred expenses of $355, $42, $512,515, $1,501, $10,672, $16,480, $6,635, and $324 respectively, pursuant to the 12b-1 Plan.
Kinetics Funds Distributor, Inc. (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, 2009, the Distributor received $90, $68, $21,719, $2,136, $1,844, $3,268, $2,607, and $0 in sales loads from the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary Funds.
4. Reclassification of Capital Accounts
Accounting principles generally accepted in the United States of America require 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, 2008, each Fund recorded the following reclassifications to the accounts listed below:
| | | | | | | | | | | | | |
| | | INCREASE (DECREASE) |
| | | | | Accumulated
| | |
| | | | | Net
| | Accumulated
|
| | | | | Investment
| | Net Realized
|
| | | Paid-in-Capital | | Income(Loss) | | Gain(Loss) |
| |
| The Internet Fund | | $ | — | | | $ | 91,823 | | | $ | (91,823 | ) |
| The Global Fund | | | (1,976,185 | ) | | | 118,566 | | | | 1,857,619 | |
| The Paradigm Fund | | | 3,142 | | | | (2,365,046 | ) | | | 2,361,904 | |
| The Medical Fund | | | — | | | | (6,421 | ) | | | 6,421 | |
| The Small Cap Opportunities Fund | | | (1,696,975 | ) | | | 730,590 | | | | 966,385 | |
| The Kinetics Government Money Market Fund | | | — | | | | — | | | | — | |
| The Market Opportunities Fund | | | (772 | ) | | | (217,864 | ) | | | 218,636 | |
| The Water Infrastructure Fund | | | (2,885 | ) | | | (214,365 | ) | | | 217,250 | |
| The Multi-Disciplinary Fund | | | (358 | ) | | | 358 | | | | — | |
5. Income Taxes
At December 31, 2008 the Internet, Global, Paradigm, Medical, Small Cap, Government, Market Opportunities, Water Infrastructure, and Multi-Disciplinary Funds had $169,733, $0, $4,066,980, $28,128, $0, $83, $0, $0 and $0, respectively, of undistributed net investment income on a tax basis.
At December 31, 2008 none of the funds had accumulated gains on a tax basis.
47
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
At December 31, 2008, the Feeder Funds had accumulated net realized capital loss carryforwards expiring in the following years.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Feeder Fund | | 2016 | | 2015 | | 2014 | | 2013 | | 2011 | | 2010 | | 2009 |
| |
| Internet | | $ | — | | | $ | — | | | $ | 16,077,777 | | | $ | 6,777,871 | | | $ | — | | | $ | 140,178,775 | | | $ | 17,319,359 | |
| Global | | | — | | | | — | | | | — | | | | 4,885 | | | | 887,154 | | | | 2,635,504 | | | | 5,481,052 | |
| Paradigm | | | 417,659,386 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Medical | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Small Cap | | | 78,193,634 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Government | | | 16 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Market Opportunities | | | 25,711,245 | | | | 40,803 | | | | 21 | | | | — | | | | — | | | | — | | | | — | |
| Water Infrastructure | | | 2,008,692 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Multi-Disciplinary | | | 43,829 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
To the extent that the Feeder Funds realize future net capital gains, those gains will be offset by any unused capital loss carryforwards. For the year ended December 31, 2008, Internet and Global Funds utilized $1,763,096 and $70,682, respectively, of capital loss carryforwards.
At December 31, 2008, the following Feeder Funds deferred, on a tax basis, post-October losses and straddle losses of:
| | | | | | | | | | | | | |
| | | | | Post-October
| | |
Feeder Fund | | Post-October Losses | | Currency Losses | | Straddle Losses |
| |
| Internet | | $ | 1,121 | | | $ | — | | | $ | — | |
| Global | | | — | | | | 8 | | | | — | |
| Paradigm | | | 183,653,239 | | | | 237,760 | | | | — | |
| Medical | | | 78,010 | | | | — | | | | 88,724 | |
| Small Cap | | | 52,575,883 | | | | 51,746 | | | | — | |
| Government | | | 67 | | | | — | | | | — | |
| Market Opportunities | | | — | | | | 1,805 | | | | — | |
| Water Infrastructure | | | 3,455,944 | | | | 27,093 | | | | — | |
| Multi-Disciplinary | | | 15,711 | | | | — | | | | — | |
The tax components of dividends paid during the years ended December 31, 2008 and December 31, 2007, are:
| | | | | | | | | | | | | | | | | |
| | | Internet | | Global |
| | | Ordinary Income
| | Long-Term Capital
| | Ordinary Income
| | Long-Term Capital
|
| | | Distribution | | Gains Distribution | | Distribution | | Gains Distribution |
| |
| 2008 | | $ | 181,761 | | | $ | — | | | $ | 44,451 | | | $ | — | |
| 2007 | | $ | 1,637,709 | | | $ | — | | | $ | 188,230 | | | $ | — | |
| | | | | | | | | | | | | | | | | |
| | | Paradigm | | Medical |
| | | Ordinary Income
| | Long-Term Capital
| | Ordinary Income
| | Long-Term Capital
|
| | | Distribution | | Gains Distribution | | Distribution | | Gains Distribution |
| |
| 2008 | | $ | — | | | $ | 7,073,063 | | | $ | 463,919 | | | $ | 183,981 | |
| 2007 | | $ | 21,702,378 | | | $ | 14,493,388 | | | $ | 219,441 | | | $ | 631,855 | |
48
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | Small Cap | | Government |
| | | Ordinary Income
| | Long-Term Capital
| | Ordinary Income
| | Long-Term Capital
|
| | | Distribution | | Gains Distribution | | Distribution | | Gains Distribution |
| |
| 2008 | | $ | — | | | $ | 4,270,579 | | | $ | 17,587 | | | $ | — | |
| 2007 | | $ | 5,786,962 | | | $ | 5,224,746 | | | $ | 43,527 | | | $ | — | |
| | | | | | | | | | | | | | | | | |
| | | Market Opportunities | | Water Infrastructure |
| | | Ordinary Income
| | Long-Term Capital
| | Ordinary Income
| | Long-Term Capital
|
| | | Distribution | | Gains Distribution | | Distribution | | Gains Distribution |
| |
| 2008 | | $ | 357,384 | | | $ | — | | | $ | — | | | $ | — | |
| 2007 | | $ | 141,323 | | | $ | — | | | $ | 51,156 | | | $ | — | |
| | | | | | | | | |
| | | Multi-Disciplinary |
| | | Ordinary Income
| | Long-Term Capital
|
| | | Distribution | | Gains Distribution |
| |
| 2008 | | $ | 128 | | | $ | — | |
| 2007 | | | N/A | | | | N/A | |
6. Tax Information
The Internet, Global, Medical, and Market Opportunities Funds designate 36%, 100%, 79%, and 100%, respectively, of dividends declared after December 31, 2008 from net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The Medical Fund hereby designates 72% as ordinary income distributions and 28% 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 Funds, the percentage of ordinary dividend income distributed for the year ended December 31, 2008, which is designated as qualifying for the dividends-received deduction, is as follows: Internet 30%, Global 24%, Medical 55%, and Market Opportunities 100%.
The Internet, Global, Medical, and Market Opportunities Funds designate 17%, 5%, 3%, and 13%, respectively, of their ordinary income distributions for the fiscal year as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C).
The Internet, Global, Paradigm, Medical, Small Cap, Government, Market Opportunities, Water Infrastructure, and Multi-Disciplinary Funds designate 0%, 0%, 0%, 59%, 0%, 0%, 0%, 0% and 0%, respectively, of their ordinary
49
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
income distributions as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C).
| |
| 7. | Temporary Guarantee Program for Money Market Funds (Unaudited) |
The Board of Directors (the “Board”) of Kinetics Mutual Funds, Inc. approved the participation of The Kinetics Government Money Market Fund (the “Fund”) in the U.S. Department of the Treasury’s (the “Treasury”) Temporary Guarantee Program for Money Market Funds (the “Program”) for the three-month period ended December 18, 2008. On November 24, 2008, the Treasury announced the extension of the Program until April 30, 2009 and the Board approved the Fund’s continued participation in the Program on December 5, 2008. The Board approved the Fund’s continued participation in the Program on March 18, 2009, and on March 31, 2009, the Treasury announced the extension of the Program until September 18, 2009. The Program seeks to protect the net asset value of shares held by a shareholder of record in a participating fund at the close of business on September 19, 2008. Any shares held by shareholders in a participating fund as of that date are insured against loss under the Program if the fund liquidates its holdings and market-based net asset value of the shares at the time of the liquidation is less than $0.995 per share. Shares acquired by a shareholder of record after the close of business on September 19, 2008 that exceed the number of shares the shareholder owned in the Fund on September 19, 2008 are not eligible for protection under the Program.
Participation in the Program for the three-month period ending December 18, 2008, required a payment to the Treasury in the amount of 0.01% of the net asset value of the Fund as of September 19, 2008. Continued participation in the Program for the period December 19, 2008 through April 30, 2009 and for the period from May 1, 2009 through September 18, 2009, required two payments to the Treasury in the amount of 0.015% each of the net asset value of the Fund as of September 19, 2008. The Fund will bear the expense of its participation in the Program without regard to any fee waivers or expense limitations currently in effect for the Fund.
8. Information about Proxy Voting
Information regarding how Kinetics Mutual Funds, Inc. 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
50
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
and by accessing the SEC’s website at www.sec.gov. Information regarding how the Funds 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.
9. Information about the Portfolio Holdings
The Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Form N-Q. The 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.
51
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Internet Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| |
| | | For The Six
| | | For The Six
| | | For The Six
| | | For the
| | | For the
| | | For the
| |
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | 2008 | | | 2008 | | | 2008 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 20.71 | | | $ | 20.50 | | | $ | 20.20 | | | $ | 35.94 | | | $ | 35.66 | | | $ | 35.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(2) | | | (0.04 | ) | | | (0.06 | ) | | | (0.11 | ) | | | 0.29 | | | | 0.22 | | | | 0.08 | |
| Net realized and unrealized gain (loss) on investments | | | 3.87 | | | | 3.81 | | | | 3.76 | | | | (15.47 | ) | | | (15.33 | ) | | | (15.15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 3.83 | | | | 3.75 | | | | 3.65 | | | | (15.18 | ) | | | (15.11 | ) | | | (15.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | — | | | | — | | | | 0.00 | (3) | | | 0.00 | (3) | | | — | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | | | | (0.05 | ) | | | (0.05 | ) | | | (0.04 | ) |
| From net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | | | | (0.05 | ) | | | (0.05 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 24.54 | | | $ | 24.25 | | | $ | 23.85 | | | $ | 20.71 | | | $ | 20.50 | | | $ | 20.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(4) | | | 18.49 | %(5) | | | 18.29 | %(5) | | | 18.02 | %(5) | | | -42.24 | % | | | -42.37 | % | | | -42.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 85,913 | | | $ | 363 | | | $ | 99 | | | $ | 75,112 | | | $ | 318 | | | $ | 113 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.01 | %(6) | | | 2.26 | %(6) | | | 2.76 | %(6) | | | 2.03 | % | | | 2.28 | % | | | 2.78 | % |
After expense reimbursement(7) | | | 1.89 | %(6) | | | 2.14 | %(6) | | | 2.64 | %(6) | | | 1.90 | % | | | 2.15 | % | | | 2.65 | % |
| Ratio of net investment income (loss) | | | | | | | | | | | | | | | | | | | | | | | | |
| to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.49 | )%(6) | | | (0.74 | )%(6) | | | (1.24 | )%(6) | | | 0.90 | % | | | 0.65 | % | | | 0.15 | % |
After expense reimbursement(7) | | | (0.37 | )%(6) | | | (0.62 | )%(6) | | | (1.12 | )%(6) | | | 1.03 | % | | | 0.78 | % | | | 0.28 | % |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
52
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Internet Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | No Load Class
| | | Advisor Class A
| | | No Load Class
| | | Advisor Class A
| | | No Load Class
| | | Advisor Class A
| |
| | | For the
| | | For the
| | | February 16, 2007ˆ
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | through
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2007 | | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2005 | | | 2005 | | | 2004 | | | 2004 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 28.62 | | | $ | 28.24 | | | $ | 28.66 | | | $ | 24.66 | | | $ | 24.40 | | | $ | 25.29 | | | $ | 24.93 | | | $ | 23.31 | | | $ | 22.88 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.30 | | | | 0.23 | | | | 0.07 | | | | (0.08 | ) | | | (0.14 | ) | | | 0.11 | | | | 0.05 | | | | 0.10 | | | | 0.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 7.37 | | | | 7.49 | | | | 6.87 | | | | 4.15 | | | | 4.09 | | | | (0.54 | ) | | | (0.44 | ) | | | 2.25 | | | | 2.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 7.67 | | | | 7.72 | | | | 6.94 | | | | 4.07 | | | | 3.95 | | | | (0.43 | ) | | | (0.39 | ) | | | 2.35 | | | | 2.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.00 | (3) | | | — | | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.35 | ) | | | (0.30 | ) | | | (0.29 | ) | | | (0.11 | ) | | | (0.11 | ) | | | (0.20 | ) | | | (0.14 | ) | | | (0.37 | ) | | | (0.23 | ) |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.35 | ) | | | (0.30 | ) | | | (0.29 | ) | | | (0.11 | ) | | | (0.11 | ) | | | (0.20 | ) | | | (0.14 | ) | | | (0.37 | ) | | | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 35.94 | | | $ | 35.66 | | | $ | 35.31 | | | $ | 28.62 | | | $ | 28.24 | | | $ | 24.66 | | | $ | 24.40 | | | $ | 25.29 | | | $ | 24.93 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 26.81 | % | | | 27.35 | % | | | 24.22 | %(5) | | | 16.50 | % | | | 16.18 | % | | | -1.69 | % | | | -1.55 | % | | | 10.06 | % | | | 9.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 166,787 | | | $ | 637 | | | $ | 294 | | | $ | 137,012 | | | $ | 235 | | | $ | 148,260 | | | $ | 300 | | | $ | 201,929 | | | $ | 354 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.99 | % | | | 2.24 | % | | | 2.73 | %(6) | | | 1.98 | % | | | 2.23 | % | | | 2.35 | % | | | 2.60 | % | | | 2.37 | % | | | 2.62 | % |
| | | | 1.98 | % | | | 2.23 | % | | | 2.72 | %(6) | | | 1.85 | % | | | 2.10 | % | | | 2.35 | % | | | 2.60 | % | | | 2.37 | % | | | 2.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.94 | % | | | 0.70 | % | | | 0.22 | %(6) | | | (0.42 | )% | | | (0.67 | )% | | | 0.46 | % | | | 0.21 | % | | | 0.44 | % | | | 0.19 | % |
| | | | 0.95 | % | | | 0.71 | % | | | 0.23 | %(6) | | | (0.29 | )% | | | (0.54 | )% | | | 0.46 | % | | | 0.21 | % | | | 0.44 | % | | | 0.19 | % |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
53
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | |
| | | The Global Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| |
| | | For The Six
| | | For The Six
| | | For The Six
| |
| | | Months Ended
| | | Months Ended
| | | Months Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 2.36 | | | $ | 2.36 | | | $ | 2.37 | |
| | | | | | | | | | | | | |
| Income from Investment Operations: |
| Net investment income | | | 0.02 | (2) | | | 0.02 | (2) | | | 0.01 | (2) |
| Net realized and unrealized gain (loss) on investments | | | 0.90 | | | | 0.92 | | | | 0.89 | |
| | | | | | | | | | | | | |
| Total from investment operations | | | 0.92 | | | | 0.94 | | | | 0.90 | |
| | | | | | | | | | | | | |
| Redemption Fees | | | 0.01 | | | | — | | | | — | |
| Less Distributions: | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | |
| From net realized gains | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 3.29 | | | $ | 3.30 | | | $ | 3.27 | |
| | | | | | | | | | | | | |
Total Return(4) | | | 39.41 | %(5) | | | 39.83 | %(5) | | | 38.40 | %(5) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end period (000’s) | | $ | 3,478 | | | $ | 91 | | | $ | 20 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | |
| Before expense reimbursement | | | 6.10 | %(6) | | | 6.35 | %(6) | | | 6.85 | %(6) |
After expense reimbursement(7) | | | 1.39 | %(6) | | | 1.64 | %(6) | | | 2.14 | %(6) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | |
| Before expense reimbursement | | | (3.01 | )%(6) | | | (3.26 | )%(6) | | | (3.76 | )%(6) |
After expense reimbursement(7) | | | 1.70 | %(6) | | | 1.45 | %(6) | | | 0.95 | %(6) |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
54
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Global Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | No Load Class
| | | No Load Class
| | | No Load Class
| | | No Load Class
| |
| | | For the
| | | May 19, 2008ˆ
| | | May 19, 2008ˆ
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | through
| | | through
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2008 | | | 2008 | | | 2008 | | | 2007 | | | 2006 | | | 2005 | | | 2004 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 4.90 | | | $ | 4.56 | | | $ | 4.56 | | | $ | 5.00 | | | $ | 4.43 | | | $ | 4.50 | | | $ | 4.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.07 | (2) | | | 0.03 | (2) | | | 0.02 | (2) | | | 0.22 | | | | 0.13 | | | | 0.15 | | | | 0.08 | |
| | | | (2.56 | ) | | | (2.18 | ) | | | (2.17 | ) | | | (0.01 | ) | | | 0.62 | | | | (0.03 | ) | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.49 | ) | | | (2.15 | ) | | | (2.15 | ) | | | 0.21 | | | | 0.75 | | | | 0.12 | | | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.00 | (3) | | | — | | | | — | | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.05 | ) | | | (0.05 | ) | | | (0.04 | ) | | | (0.31 | ) | | | (0.18 | ) | | | (0.19 | ) | | | (0.11 | ) |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.05 | ) | | | (0.05 | ) | | | (0.04 | ) | | | (0.31 | ) | | | (0.18 | ) | | | (0.19 | ) | | | (0.11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 2.36 | | | $ | 2.36 | | | $ | 2.37 | | | $ | 4.90 | | | $ | 5.00 | | | $ | 4.43 | | | $ | 4.50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | -50.72 | % | | | -47.12 | %(5) | | | -47.14 | %(5) | | | 4.27 | % | | | 16.90 | % | | | 2.65 | % | | | 7.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 1,863 | | | $ | 106 | | | $ | 5 | | | $ | 3,138 | | | $ | 3,991 | | | $ | 3,896 | | | $ | 4,584 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5.98 | % | | | 8.28 | %(6) | | | 8.78 | %(6) | | | 3.84 | % | | | 3.09 | % | | | 3.22 | % | | | 3.45 | % |
| | | | 1.41 | % | | | 1.65 | %(6) | | | 2.15 | %(6) | | | 1.48 | % | | | 1.39 | % | | | 2.69 | % | | | 2.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.72 | )% | | | (5.16 | )%(6) | | | (5.66 | )%(6) | | | 1.87 | % | | | 3.00 | % | | | 2.80 | % | | | 1.08 | % |
| | | | 1.85 | % | | | 1.47 | %(6) | | | 0.97 | %(6) | | | 4.23 | % | | | 1.30 | % | | | 3.33 | % | | | 1.84 | % |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
55
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | |
| | | | | | Advisor
| | | Advisor
| | | Institutional
| |
| | | No Load Class
| | | Class A
| | | Class C
| | | Class
| |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months
| | | Six Months
| | | Six Months
| | | Six Months
| |
| | | Ended
| | | Ended
| | | Ended
| | | Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 14.42 | | | $ | 14.16 | | | $ | 13.80 | | | $ | 14.44 | |
| | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
| Net investment income (loss) | | | 0.09 | (2) | | | 0.07 | (2) | | | 0.03 | (2) | | | 0.10 | (2) |
| Net realized and unrealized gain (loss) on investments | | | 2.56 | | | | 2.52 | | | | 2.45 | | | | 2.57 | |
| | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 2.65 | | | | 2.59 | | | | 2.48 | | | | 2.67 | |
| | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | | | | — | |
| From net realized gains | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 17.07 | | | $ | 16.75 | | | $ | 16.28 | | | $ | 17.11 | |
| | | | | | | | | | | | | | | | | |
Total Return(4) | | | 18.30 | %(5) | | | 18.21 | %(5) | | | 17.89 | %(5) | | | 18.49 | %(5) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 807,516 | | | $ | 242,890 | | | $ | 155,121 | | | $ | 124,560 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.72 | %(6) | | | 1.97 | %(6) | | | 2.47 | %(6) | | | 1.67 | %(6) |
After expense reimbursement(7) | | | 1.64 | %(6) | | | 1.89 | %(6) | | | 2.39 | %(6) | | | 1.44 | %(6) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.16 | %(6) | | | 0.91 | %(6) | | | 0.41 | %(6) | | | 1.21 | %(6) |
After expense reimbursement(7) | | | 1.24 | %(6) | | | 0.99 | %(6) | | | 0.49 | %(6) | | | 1.44 | %(6) |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
(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) | Includes adviser reimbursement from net realized losses on the disposal of investments in violation of restrictions and trading errors. This reimbursement comprises less than $0.005 of the NAVs for each class at the time of the reimbursement and 0.03% of the total return for the Institutional Class for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
See Notes to Financial Statements.
56
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | |
| | | No Load
| | | Advisor
| | | Advisor
| | | Institutional
| | | No Load
| | | Advisor
| | | Advisor
| |
| | | Class
| | | Class A
| | | Class C
| | | Class
| | | Class
| | | Class A
| | | Class C
| |
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | | | 2007 | | | 2007 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 30.99 | | | $ | 30.52 | | | $ | 29.90 | | | $ | 30.97 | | | $ | 25.79 | | | $ | 25.43 | | | $ | 24.98 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.12 | (2) | | | 0.06 | (2) | | | (0.05 | )(2) | | | 0.18 | (2) | | | 0.11 | (2) | | | 0.04 | (2) | | | (0.10 | )(2) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (16.62 | )(8) | | | (16.34 | )(8) | | | (15.97 | )(8) | | | (16.63 | )(8) | | | 5.35 | | | | 5.27 | | | | 5.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (16.50 | ) | | | (16.28 | ) | | | (16.02 | ) | | | (16.45 | ) | | | 5.46 | | | | 5.31 | | | | 5.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.01 | | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | — | | | | — | | | | (0.13 | ) | | | (0.09 | ) | | | (0.00 | ) |
| | | | (0.08 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.13 | ) | | | (0.13 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.08 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.08 | ) | | | (0.26 | ) | | | (0.22 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 14.42 | | | $ | 14.16 | | | $ | 13.80 | | | $ | 14.44 | | | $ | 30.99 | | | $ | 30.52 | | | $ | 29.90 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | -53.17 | %(8) | | | -53.30 | %(8) | | | -53.54 | %(8) | | | -53.11 | %(8) | | | 21.15 | % | | | 20.87 | % | | | 20.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 740,983 | | | $ | 249,424 | | | $ | 147,915 | | | $ | 128,129 | | | $ | 2,910,518 | | | $ | 544,046 | | | $ | 320,962 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.72 | % | | | 1.97 | % | | | 2.47 | % | | | 1.67 | % | | | 1.68 | % | | | 1.93 | % | | | 2.43 | % |
| | | | 1.66 | % | | | 1.91 | % | | | 2.41 | % | | | 1.46 | % | | | 1.68 | % | | | 1.93 | % | | | 2.43 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.46 | % | | | 0.21 | % | | | (0.29 | )% | | | 0.51 | % | | | 0.39 | % | | | 0.14 | % | | | (0.36 | )% |
| | | | 0.52 | % | | | 0.27 | % | | | (0.23 | )% | | | 0.72 | % | | | 0.39 | % | | | 0.14 | % | | | (0.36 | )% |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
57
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | |
| | | Institutional
| | | No Load
| | | Advisor
| | | Advisor
| |
| | | Class
| | | Class
| | | Class A
| | | Class C
| |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2007 | | | 2006 | | | 2006 | | | 2006 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 25.76 | | | $ | 20.33 | | | $ | 20.08 | | | $ | 19.76 | |
| | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
| Net investment income (loss) | | | 0.17 | (2) | | | 0.14 | (2) | | | 0.08 | (2) | | | (0.03 | )(2) |
| Net realized and unrealized gain (loss) on investments | | | 5.34 | | | | 5.52 | | | | 5.43 | | | | 5.33 | |
| | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 5.51 | | | | 5.66 | | | | 5.51 | | | | 5.30 | |
| | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | |
| From net investment income | | | (0.17 | ) | | | (0.16 | ) | | | (0.12 | ) | | | (0.04 | ) |
| From net realized gains | | | (0.13 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.30 | ) | | | (0.20 | ) | | | (0.16 | ) | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 30.97 | | | $ | 25.79 | | | $ | 25.43 | | | $ | 24.98 | |
| | | | | | | | | | | | | | | | | |
Total Return(4) | | | 21.37 | % | | | 27.81 | % | | | 27.42 | % | | | 26.82 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 804,755 | | | $ | 1,337,761 | | | $ | 183,031 | | | $ | 116,226 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.63 | % | | | 1.79 | % | | | 2.04 | % | | | 2.54 | % |
After expense reimbursement(7) | | | 1.48 | % | | | 1.63 | % | | | 1.88 | % | | | 2.38 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.44 | % | | | 0.44 | % | | | 0.19 | % | | | (0.31 | )% |
After expense reimbursement(7) | | | 0.59 | % | | | 0.60 | % | | | 0.35 | % | | | (0.15 | )% |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
58
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Paradigm Fund | |
| | | Institutional
| | | No Load
| | | Advisor
| | | Advisor
| | | Institutional
| | | No Load
| | | Advisor
| | | Advisor
| |
| | | Class
| | | Class
| | | Class A
| | | Class C
| | | Class
| | | Class
| | | Class A
| | | Class C
| |
| | | For the
| | | For the
| | | For the
| | | For the
| | | May 27, 2005ˆ
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | through
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2006 | | | 2005 | | | 2005 | | | 2005 | | | 2005 | | | 2004 | | | 2004 | | | 2004 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 20.31 | | | $ | 17.54 | | | $ | 17.40 | | | $ | 17.21 | | | $ | 18.13 | | | $ | 14.91 | | | $ | 14.82 | | | $ | 14.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.19 | (2) | | | (0.03 | )(2) | | | (0.07 | )(2) | | | (0.17 | )(2) | | | 0.01 | (2) | | | (0.06 | )(2) | | | (0.10 | ) | | | (0.18 | ) |
| | | | 5.49 | | | | 2.82 | | | | 2.77 | | | | 2.74 | | | | 2.23 | | | | 3.17 | | | | 3.16 | | | | 3.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5.68 | | | | 2.79 | | | | 2.70 | | | | 2.57 | | | | 2.24 | | | | 3.11 | | | | 3.06 | | | | 2.96 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | 0.03 | | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.19 | ) | | | (0.01 | ) | | | — | | | | — | | | | (0.04 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.02 | ) |
| | | | (0.04 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.46 | ) | | | (0.46 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.23 | ) | | | (0.03 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.06 | ) | | | (0.48 | ) | | | (0.48 | ) | | | (0.48 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 25.76 | | | $ | 20.33 | | | $ | 20.08 | | | $ | 19.76 | | | $ | 20.31 | | | $ | 17.54 | | | $ | 17.40 | | | $ | 17.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 27.96 | % | | | 16.11 | % | | | 15.54 | % | | | 14.96 | % | | | 12.35 | %(5) | | | 20.84 | % | | | 20.63 | % | | | 20.08 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 507,314 | | | $ | 418,914 | | | $ | 60,421 | | | $ | 38,740 | | | $ | 10,895 | | | $ | 89,313 | | | $ | 26,525 | | | $ | 9,426 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.74 | % | | | 1.93 | % | | | 2.18 | % | | | 2.68 | % | | | 1.88 | %(6) | | | 2.10 | % | | | 2.35 | % | | | 2.85 | % |
| | | | 1.43 | % | | | 1.69 | % | | | 1.94 | % | | | 2.44 | % | | | 1.49 | %(6) | | | 1.74 | % | | | 1.99 | % | | | 2.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.48 | % | | | (0.41 | )% | | | (0.66 | )% | | | (1.16 | )% | | | (0.37 | )%(6) | | | (0.77 | )% | | | (1.02 | )% | | | (1.52 | )% |
| | | | 0.79 | % | | | (0.17 | )% | | | (0.42 | )% | | | (0.92 | )% | | | 0.02 | %(6) | | | (0.41 | )% | | | (0.66 | )% | | | (1.16 | )% |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
59
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Medical Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| |
| | | For the Six
| | | For the Six
| | | For the Six
| | | For the
| | | For the
| | | For the
| |
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | 2008 | | | 2008 | | | 2008 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 15.23 | | | $ | 14.90 | | | $ | 14.83 | | | $ | 19.82 | | | $ | 19.39 | | | $ | 19.34 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
Net investment income (loss)(2) | | | 0.12 | | | | 0.10 | | | | 0.06 | | | | 0.19 | | | | 0.13 | | | | 0.05 | |
| Net realized and unrealized gain (loss) on investments | | | 1.52 | | | | 1.49 | | | | 1.48 | | | | (4.25 | ) | | | (4.15 | ) | | | (4.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 1.64 | | | | 1.59 | | | | 1.54 | | | | (4.06 | ) | | | (4.02 | ) | | | (4.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | 0.01 | | | | — | | | | 0.01 | | | | 0.04 | | | | 0.02 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | | | | (0.16 | ) | | | (0.13 | ) | | | (0.07 | ) |
| From net realized gains | | | — | | | | — | | | | — | | | | (0.38 | ) | | | (0.38 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | | | | (0.54 | ) | | | (0.51 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 16.87 | | | $ | 16.50 | | | $ | 16.37 | | | $ | 15.23 | | | $ | 14.90 | | | $ | 14.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Return(4) | | | 10.77 | %(5) | | | 10.74 | %(5) | | | 10.38 | %(5) | | | -20.42 | % | | | -20.49 | % | | | -20.97 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 15,802 | | | $ | 3,225 | | | $ | 466 | | | $ | 15,727 | | | $ | 2,941 | | | $ | 314 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.23 | %(6) | | | 2.48 | %(6) | | | 2.98 | %(6) | | | 2.26 | % | | | 2.51 | % | | | 3.01 | % |
After expense reimbursement(7) | | | 1.39 | %(6) | | | 1.64 | %(6) | | | 2.14 | %(6) | | | 1.41 | % | | | 1.66 | % | | | 2.16 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.75 | %(6) | | | 0.50 | %(6) | | | 0.00 | %(6) | | | 0.18 | % | | | (0.07 | )% | | | (0.57 | )% |
After expense reimbursement(7) | | | 1.59 | %(6) | | | 1.34 | %(6) | | | 0.84 | %(6) | | | 1.03 | % | | | 0.78 | % | | | 0.28 | % |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
60
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Medical Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | No Load Class
| | | Advisor Class A
| | | No Load Class
| | | Advisor Class A
| | | No Load Class
| | | Advisor Class A
| |
| | | For the
| | | For the
| | | February 16, 2007ˆ
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | through
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2007 | | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2005 | | | 2005 | | | 2004 | | | 2004 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 17.83 | | | $ | 17.47 | | | $ | 18.29 | | | $ | 16.64 | | | $ | 16.34 | | | $ | 16.76 | | | $ | 16.49 | | | $ | 15.67 | | | $ | 15.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.10 | | | | 0.05 | | | | (0.04 | ) | | | 0.06 | | | | 0.01 | | | | (0.18 | ) | | | (0.22 | ) | | | (0.10 | ) | | | (0.11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.67 | | | | 2.62 | | | | 1.79 | | | | 2.40 | | | | 2.35 | | | | 0.06 | | | | 0.07 | | | | 1.19 | | | | 1.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.77 | | | | 2.67 | | | | 1.75 | | | | 2.46 | | | | 2.36 | | | | (0.12 | ) | | | (0.15 | ) | | | 1.09 | | | | 1.02 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.01 | | | | 0.00(3 | ) | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | 0.00 | (3) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.10 | ) | | | (0.06 | ) | | | (0.01 | ) | | | (0.04 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | (0.69 | ) | | | (0.69 | ) | | | (0.69 | ) | | | (1.23 | ) | | | (1.23 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.79 | ) | | | (0.75 | ) | | | (0.70 | ) | | | (1.27 | ) | | | (1.23 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 19.82 | | | $ | 19.39 | | | $ | 19.34 | | | $ | 17.83 | | | $ | 17.47 | | | $ | 16.64 | | | $ | 16.34 | | | $ | 16.76 | | | $ | 16.49 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 15.47 | % | | | 15.16 | % | | | 9.55 | %(5) | | | 14.81 | % | | | 14.49 | % | | | -0.72 | % | | | -0.91 | % | | | 6.96 | % | | | 6.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 13,917 | | | $ | 1,427 | | | $ | 148 | | | $ | 15,527 | | | $ | 711 | | | $ | 13,943 | | | $ | 559 | | | $ | 19,583 | | | $ | 696 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.41 | % | | | 2.66 | % | | | 3.19 | %(6) | | | 2.28 | % | | | 2.53 | % | | | 2.48 | % | | | 2.73 | % | | | 2.54 | % | | | 2.79 | % |
| | | | 1.40 | % | | | 1.65 | % | | | 2.15 | %(6) | | | 1.44 | % | | | 1.69 | % | | | 2.44 | % | | | 2.69 | % | | | 2.39 | % | | | 2.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.51 | )% | | | (0.76 | )% | | | (1.30 | )%(6) | | | (0.51 | )% | | | (0.76 | )% | | | (1.14 | )% | | | (1.39 | )% | | | (1.31 | )% | | | (1.56 | )% |
| | | | 0.50 | % | | | 0.25 | % | | | (0.26 | )%(6) | | | 0.33 | % | | | 0.08 | % | | | (1.10 | )% | | | (1.35 | )% | | | (1.16 | )% | | | (1.41 | )% |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
61
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Small Cap Opportunities Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| |
| | | For the Six
| | | For the Six
| | | For the Six
| | | For the Six
| |
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Months Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 13.17 | | | $ | 13.01 | | | $ | 12.92 | | | $ | 13.19 | |
| | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
Net investment income (loss)(2) | | | 0.00 | (3) | | | (0.01 | ) | | | (0.05 | ) | | | 0.02 | |
| Net realized and unrealized gain on investments | | | 4.36 | | | | 4.30 | | | | 4.26 | | | | 4.36 | |
| | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 4.36 | | | | 4.29 | | | | 4.21 | | | | 4.38 | |
| | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | | | | — | |
| From net realized gain | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 17.53 | | | $ | 17.30 | | | $ | 17.13 | | | $ | 17.57 | |
| | | | | | | | | | | | | | | | | |
Total Return(4) | | | 33.11 | %(5) | | | 32.97 | %(5) | | | 32.59 | %(5) | | | 33.21 | %(5) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 159,740 | | | $ | 12,810 | | | $ | 3,464 | | | $ | 75,216 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.83 | %(6) | | | 2.08 | %(6) | | | 2.58 | %(6) | | | 1.78 | %(6) |
After expense reimbursement(7) | | | 1.64 | %(6) | | | 1.89 | %(6) | | | 2.39 | %(6) | | | 1.44 | %(6) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.15 | )%(6) | | | (0.40 | )%(6) | | | (0.90 | )%(6) | | | (0.10 | )%(6) |
After expense reimbursement(7) | | | 0.04 | %(6) | | | (0.21 | )%(6) | | | (0.71 | )%(6) | | | 0.24 | %(6) |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement comprises less than $0.005 of the NAVs for each class at the time of the reimbursement and 0.03% of the total return for Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
See Notes to Financial Statements.
62
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| The Small Cap Opportunities Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| |
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| | | February 16, 2007ˆ
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | through
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 31.92 | | | $ | 31.63 | | | $ | 31.57 | | | $ | 31.92 | | | $ | 26.92 | | | $ | 26.71 | | | $ | 28.70 | | | $ | 26.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.05 | | | | (0.01 | ) | | | (0.12 | ) | | | 0.10 | | | | 0.01 | | | | (0.07 | ) | | | (0.21 | ) | | | 0.07 | |
| | | | (18.53 | )(8) | | | (18.34 | )(8) | | | (18.26 | )(8) | | | (18.56 | )(8) | | | 5.29 | | | | 5.25 | | | | 3.33 | | | | 5.29 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (18.48 | ) | | | (18.35 | ) | | | (18.38 | ) | | | (18.46 | ) | | | 5.30 | | | | 5.18 | | | | 3.12 | | | | 5.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.02 | | | | 0.00 | (3) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | — | | | | — | | | | (0.23 | ) | | | (0.19 | ) | | | (0.20 | ) | | | (0.28 | ) |
| | | | (0.27 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.07 | ) | | | (0.07 | ) | | | (0.07 | ) | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.27 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.27 | ) | | | (0.30 | ) | | | (0.26 | ) | | | (0.27 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 13.17 | | | $ | 13.01 | | | $ | 12.92 | | | $ | 13.19 | | | $ | 31.92 | | | $ | 31.63 | | | $ | 31.57 | | | $ | 31.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | -57.88 | %(8) | | | -58.00 | %(8) | | | -58.20 | %(8) | | | -57.82 | %(8) | | | 19.65 | % | | | 19.36 | % | | | 10.94 | %(5) | | | 19.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 126,971 | | | $ | 12,090 | | | $ | 2,871 | | | $ | 68,408 | | | $ | 729,278 | | | $ | 36,390 | | | $ | 4,942 | | | $ | 316,709 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.79 | % | | | 2.04 | % | | | 2.54 | % | | | 1.74 | % | | | 1.71 | % | | | 1.96 | % | | | 2.47 | %(6) | | | 1.66 | % |
| | | | 1.67 | % | | | 1.92 | % | | | 2.42 | % | | | 1.47 | % | | | 1.69 | % | | | 1.94 | % | | | 2.45 | %(6) | | | 1.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.09 | % | | | (0.16 | )% | | | (0.66 | )% | | | 0.14 | % | | | 0.00 | % | | | (0.25 | )% | | | (0.76 | )%(6) | | | 0.05 | % |
| | | | 0.21 | % | | | (0.04 | )% | | | (0.54 | )% | | | 0.41 | % | | | 0.02 | % | | | (0.23 | )% | | | (0.75 | )%(6) | | | 0.22 | % |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
63
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Small Cap Opportunities Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Institutional Class
| | | No Load Class
| |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2006 | | | 2006 | | | 2006 | | | 2005 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 21.02 | | | $ | 20.89 | | | $ | 21.00 | | | $ | 18.69 | |
| | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
Net investment income (loss)(2) | | | 0.03 | | | | (0.03 | ) | | | 0.08 | | | | 0.12 | |
| Net realized and unrealized gain on investments | | | 5.92 | | | | 5.88 | | | | 5.91 | | | | 2.35 | |
| | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 5.95 | | | | 5.85 | | | | 5.99 | | | | 2.47 | |
| | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | |
| From net investment income | | | (0.05 | ) | | | (0.03 | ) | | | (0.08 | ) | | | (0.01 | ) |
| From net realized gain | | | — | | | | — | | | | — | | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.05 | ) | | | (0.03 | ) | | | (0.08 | ) | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 26.92 | | | $ | 26.71 | | | $ | 26.91 | | | $ | 21.02 | |
| | | | | | | | | | | | | | | | | |
Total Return(4) | | | 28.37 | % | | | 28.03 | % | | | 28.52 | % | | | 13.17 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 268,875 | | | $ | 12,144 | | | $ | 209,592 | | | $ | 55,979 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.83 | % | | | 2.08 | % | | | 1.78 | % | | | 1.93 | % |
After expense reimbursement(7) | | | 1.58 | % | | | 1.83 | % | | | 1.38 | % | | | 1.66 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (0.14 | )% | | | (0.39 | )% | | | (0.09 | )% | | | 0.18 | % |
After expense reimbursement(7) | | | 0.11 | % | | | (0.14 | )% | | | 0.31 | % | | | 0.45 | % |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
64
| | | | | | | | | | | | | | | | | |
| The Small Cap Opportunities Fund | |
| | | Advisor Class A
| | | Institutional Class
| | | No Load Class
| | | Advisor Class A
| |
| | | For the
| | | August 12, 2005ˆ
| | | For the
| | | For the
| |
| | | Year Ended
| | | through
| | | Year Ended
| | | Year Ended
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2005 | | | 2005 | | | 2004 | | | 2004 | |
| | |
| |
| | | | | | | | | | | | | | | | | |
| | | $ | 18.63 | | | $ | 20.48 | | | $ | 16.55 | | | $ | 16.50 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | 0.02 | | | | 0.00 | (3) | | | 0.22 | | | | 0.18 | |
| | | | 2.38 | | | | 0.67 | | | | 2.49 | | | | 2.49 | |
| | | | | | | | | | | | | | | | | |
| | | | 2.40 | | | | 0.67 | | | | 2.71 | | | | 2.67 | |
| | | | | | | | | | | | | | | | | |
| | | | 0.00 | (3) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | (0.01 | ) | | | (0.02 | ) | | | (0.16 | ) | | | (0.13 | ) |
| | | | (0.13 | ) | | | (0.13 | ) | | | (0.41 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | |
| | | | (0.14 | ) | | | (0.15 | ) | | | (0.57 | ) | | | (0.54 | ) |
| | | | | | | | | | | | | | | | | |
| | | $ | 20.89 | | | $ | 21.00 | | | $ | 18.69 | | | $ | 18.63 | |
| | | | | | | | | | | | | | | | | |
| | | | 12.83 | % | | | 3.23 | %(5) | | | 16.40 | % | | | 16.17 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | $ | 5,205 | | | $ | 67,586 | | | $ | 35,702 | | | $ | 2,929 | |
| | | | | | | | | | | | | | | | | |
| | | | 2.16 | % | | | 1.77 | %(6) | | | 2.03 | % | | | 2.28 | % |
| | | | 1.94 | % | | | 1.59 | %(6) | | | 1.74 | % | | | 1.99 | % |
| | | | | | | | | | | | | | | | | |
| | | | (0.17 | )% | | | (0.21 | )%(6) | | | 1.01 | % | | | 0.76 | % |
| | | | 0.06 | % | | | (0.03 | )%(6) | | | 1.30 | % | | | 1.05 | % |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
65
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Kinetics Government Money Market Fund | |
| | | For the
| | | | | | | | | | | | | | | | |
| | | Six Months
| | | | | | | | | | | | | | | | |
| | | Ended
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | June 30,
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | 2009
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | (Unaudited) | | | 2008 | | | 2007 | | | 2006 | | | 2005 | | | 2004 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
| Net investment income | | | — | | | | 0.01 | | | | 0.04 | | | | 0.04 | | | | 0.02 | | | | — | |
| Net realized and unrealized gain on investments | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | — | | | | 0.01 | | | | 0.04 | | | | 0.04 | | | | 0.02 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | (0.01 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.02 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (0.01 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.02 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return | | | 0.00 | %(3) | | | 0.91 | % | | | 3.77 | % | | | 4.45 | % | | | 1.88 | % | | | 0.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 1,876 | | | $ | 2,688 | | | $ | 1,190 | | | $ | 1,425 | | | $ | 1,052 | | | $ | 1,166 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.94 | %(4) | | | 3.55 | % | | | 6.42 | % | | | 3.94 | % | | | 5.08 | % | | | 2.11 | % |
After expense reimbursement(2) | | | 0.09 | %(4) | | | 0.76 | % | | | 0.98 | % | | | 0.22 | % | | | 1.06 | % | | | 0.98 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | (2.84 | )%(4) | | | (1.98 | )% | | | (1.74 | )% | | | 0.73 | % | | | (2.17 | )% | | | (1.13 | )% |
After expense reimbursement(2) | | | 0.01 | %(4) | | | 0.81 | % | | | 3.70 | % | | | 4.45 | % | | | 1.85 | % | | | 0.00 | % |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (3) | Not annualized. |
| (4) | Annualized. |
See Notes to Financial Statements.
66
(This page intentionally left blank)
See Notes to Financial Statements.
67
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| | | No Load Class
| |
| | | For the Six
| | | For the Six
| | | For the Six
| | | For the Six
| | | For the
| |
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Year Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | December 31,
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | 2008 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 7.22 | | | $ | 7.22 | | | $ | 7.17 | | | $ | 7.21 | | | $ | 16.12 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
| Net investment income (loss) | | | 0.02 | (2) | | | 0.01 | (2) | | | (0.01 | )(2) | | | 0.02 | (2) | | | 0.11 | (2) |
| Net realized and unrealized gain (loss) on investments | | | 2.10 | | | | 2.13 | | | | 2.13 | | | | 2.15 | | | | (9.02 | ) |
| Payment by adviser | | | — | | | | — | | | | — | | | | — | | | | 0.06 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 2.12 | | | | 2.14 | | | | 2.12 | | | | 2.17 | | | | (8.85 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.03 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | 0.01 | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | | | | — | | | | (0.06 | ) |
| From net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | | | | — | | | | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 9.37 | | | $ | 9.36 | | | $ | 9.29 | | | $ | 9.38 | | | $ | 7.22 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Return(4) | | | 29.78 | %(5) | | | 29.64 | %(5) | | | 29.57 | %(5) | | | 30.10 | %(5) | | | -54.82 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 36,493 | | | $ | 19,047 | | | $ | 5,498 | | | $ | 7 | | | $ | 34,246 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 1.97 | %(6) | | | 2.22 | %(6) | | | 2.72 | %(6) | | | 1.92 | %(6) | | | 1.82 | % |
After expense reimbursement(7) | | | 1.64 | %(6) | | | 1.89 | %(6) | | | 2.39 | %(6) | | | 1.44 | %(6) | | | 1.66 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.11 | %(6) | | | (0.14 | )%(6) | | | (0.64 | )%(6) | | | 0.16 | %(6) | | | 0.78 | % |
After expense reimbursement(7) | | | 0.44 | %(6) | | | 0.19 | %(6) | | | (0.31 | )%(6) | | | 0.64 | %(6) | | | 0.94 | % |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
68
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Fund | |
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | No Load Class
| | | Advisor Class A
| | | | |
| | | For the
| | | For the
| | | May 19, 2008ˆ
| | | For the
| | | For the
| | | February 16, 2007ˆ
| | | January 31, 2006ˆ
| | | January 31, 2006ˆ
| | | | |
| | | Year Ended
| | | Year Ended
| | | through
| | | Year Ended
| | | Year Ended
| | | through
| | | through
| | | through
| | | | |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | | |
| | | 2008 | | | 2008 | | | 2008 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 16.07 | | | $ | 16.01 | | | $ | 13.71 | | | $ | 12.05 | | | $ | 12.04 | | | $ | 12.99 | | | $ | 10.00 | | | $ | 10.00 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.08 | (2) | | | 0.02 | (2) | | | 0.08 | (2) | | | 0.04 | (2) | | | 0.00 | (2) | | | (0.05 | )(2) | | | 0.04 | | | | 0.02 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (8.97 | ) | | | (8.91 | ) | | | (6.55 | ) | | | 4.05 | | | | 4.04 | | | | 3.07 | | | | 2.05 | | | | 2.05 | | | | | |
| | | | 0.06 | | | | 0.06 | | | | 0.06 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (8.83 | ) | | | (8.83 | ) | | | (6.41 | ) | | | 4.09 | | | | 4.04 | | | | 3.02 | | | | 2.09 | | | | 2.07 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | 0.01 | | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.02 | ) | | | (0.01 | ) | | | (0.09 | ) | | | (0.03 | ) | | | (0.01 | ) | | | — | | | | (0.04 | ) | | | (0.03 | ) | | | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.02 | ) | | | (0.01 | ) | | | (0.09 | ) | | | (0.03 | ) | | | (0.01 | ) | | | — | | | | (0.04 | ) | | | (0.03 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7.22 | | | $ | 7.17 | | | $ | 7.21 | | | $ | 16.12 | | | $ | 16.07 | | | $ | 16.01 | | | $ | 12.05 | | | $ | 12.04 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | -54.91 | % | | | -55.13 | % | | | -46.77 | %(5) | | | 34.03 | % | | | 33.54 | % | | | 23.25 | %(5) | | | 20.85 | %(5) | | | 20.68 | %(5) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 18,514 | | | $ | 4,771 | | | $ | 5 | | | $ | 63,004 | | | $ | 43,907 | | | $ | 8,790 | | | $ | 7,994 | | | $ | 9,591 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.07 | % | | | 2.57 | % | | | 1.82 | %(6) | | | 1.91 | % | | | 2.16 | % | | | 2.66 | %(6) | | | 2.68 | %(6) | | | 2.93 | %(6) | | | | |
| | | | 1.91 | % | | | 2.41 | % | | | 1.44 | %(6) | | | 1.74 | % | | | 1.99 | % | | | 2.49 | %(6) | | | 1.46 | %(6) | | | 1.71 | %(6) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.53 | % | | | 0.03 | % | | | 0.94 | %(6) | | | 0.12 | % | | | (0.14 | )% | | | (0.60 | )%(6) | | | (0.76 | )%(6) | | | (1.01 | )%(6) | | | | |
| | | | 0.69 | % | | | 0.19 | % | | | 1.32 | %(6) | | | 0.29 | % | | | 0.03 | % | | | (0.43 | )%(6) | | | 0.46 | %(6) | | | (0.21 | )%(6) | | | | |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | | |
See Notes to Financial Statements.
69
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | The Water Infrastructure Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| | | No Load Class
| |
| | | For the Six
| | | For the Six
| | | For the Six
| | | For the Six
| | | For the
| |
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Months Ended
| | | Year Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| | | December 31,
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | 2008 | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 7.61 | | | $ | 7.59 | | | $ | 7.54 | | | $ | 7.63 | | | $ | 10.17 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: |
Net investment income(2) | | | 0.03 | | | | 0.02 | | | | 0.01 | | | | 0.04 | | | | 0.10 | |
| Net realized and unrealized gain (loss) on investments | | | 0.46 | | | | 0.46 | | | | 0.44 | | | | 0.45 | | | | (2.66 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.49 | | | | 0.48 | | | | 0.45 | | | | 0.49 | | | | (2.56 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Redemption Fees | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.00 | (3) | | | 0.02 | | | | 0.00 | (3) |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | | | | — | | | | — | |
| From net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 8.10 | | | $ | 8.07 | | | $ | 7.99 | | | $ | 8.14 | | | $ | 7.61 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Return(4) | | | 6.44 | %(5) | | | 6.32 | %(5) | | | 5.97 | %(5) | | | 6.68 | %(5) | | | -25.17 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 7,375 | | | $ | 6,052 | | | $ | 2,213 | | | $ | 238 | | | $ | 6,598 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 2.45 | %(6) | | | 2.70 | %(6) | | | 3.20 | %(6) | | | 2.40 | %(6) | | | 2.20 | % |
After expense reimbursement(7) | | | 1.64 | %(6) | | | 1.89 | %(6) | | | 2.39 | %(6) | | | 1.44 | %(6) | | | 1.65 | % |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
| Before expense reimbursement | | | 0.14 | %(6) | | | (0.11 | )%(6) | | | (0.61 | )%(6) | | | 0.19 | %(6) | | | 0.55 | % |
After expense reimbursement(7) | | | 0.95 | %(6) | | | 0.70 | %(6) | | | 0.20 | %(6) | | | 1.15 | %(6) | | | 1.10 | % |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
70
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Water Infrastructure Fund | |
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| |
| | | For the
| | | For the
| | | For the
| | | June 29, 2007ˆ
| | | June 29, 2007ˆ
| | | June 29, 2007ˆ
| | | June 29, 2007ˆ
| |
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | through
| | | through
| | | through
| | | through
| |
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2008 | | | 2008 | | | 2008 | | | 2007 | | | 2007 | | | 2007 | | | 2007 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 10.17 | | | $ | 10.16 | | | $ | 10.18 | | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.07 | | | | 0.03 | | | | 0.12 | | | | 0.06 | | | | 0.05 | | | | 0.02 | | | | 0.06 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.65 | ) | | | (2.65 | ) | | | (2.67 | ) | | | 0.20 | | | | 0.20 | | | | 0.21 | | | | 0.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.58 | ) | | | (2.62 | ) | | | (2.55 | ) | | | 0.26 | | | | 0.25 | | | | 0.23 | | | | 0.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.00 | (3) | | | — | | | | 0.00 | (3) | | | — | | | | 0.00 | (3) | | | 0.00 | (3) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | — | | | | (0.04 | ) | | | (0.03 | ) | | | (0.02 | ) | | | (0.04 | ) |
| | | | — | | | | — | | | | — | | | | (0.05 | ) | | | (0.05 | ) | | | (0.05 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | — | | | | (0.09 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7.59 | | | $ | 7.54 | | | $ | 7.63 | | | $ | 10.17 | | | $ | 10.17 | | | $ | 10.16 | | | $ | 10.18 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | -25.37 | % | | | -25.79 | % | | | -25.05 | % | | | 2.64 | %(5) | | | 2.55 | %(5) | | | 2.33 | %(5) | | | 2.76 | %(5) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7,661 | | | $ | 1,571 | | | $ | 251 | | | $ | 2,385 | | | $ | 2,459 | | | $ | 1,201 | | | $ | 103 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.45 | % | | | 2.95 | % | | | 2.15 | % | | | 3.62 | %(6) | | | 3.87 | %(6) | | | 4.37 | %(6) | | | 3.58 | %(6) |
| | | | 1.90 | % | | | 2.40 | % | | | 1.45 | % | | | 1.74 | %(6) | | | 1.99 | %(6) | | | 2.49 | %(6) | | | 1.54 | %(6) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.30 | % | | | (0.20 | )% | | | 0.60 | % | | | (0.73 | )%(6) | | | (0.98 | )%(6) | | | (1.48 | )%(6) | | | (0.69 | )%(6) |
| | | | 0.85 | % | | | 0.35 | % | | | 1.30 | % | | | 1.15 | %(6) | | | 0.90 | %(6) | | | 0.40 | %(6) | | | 1.35 | %(6) |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
71
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Financial Highlights — (Continued)
| | | | | | | | | | | | | |
| | | The Multi-Disciplinary Fund | |
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| |
| | | For the
| | | For the
| | | For the
| |
| | | Six Months
| | | Six Months
| | | Six Months
| |
| | | Ended
| | | Ended
| | | Ended
| |
| | | June 30, 2009
| | | June 30, 2009
| | | June 30, 2009
| |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
| | |
| |
PER SHARE DATA:(1) | | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 8.22 | | | $ | 8.20 | | | $ | 8.17 | |
| | | | | | | | | | | | | |
| Income from Investment Operations: |
Net investment income (loss)(2) | | | (0.05 | ) | | | (0.05 | ) | | | (0.07 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.83 | | | | 0.82 | | | | 0.81 | |
| | | | | | | | | | | | | |
| Total from investment operations | | | 0.78 | | | | 0.77 | | | | 0.74 | |
| | | | | | | | | | | | | |
| Redemption Fees | | | — | | | | — | | | | — | |
| Less Distributions: | | | | | | | | | | | | |
| From net investment income | | | — | | | | — | | | | — | |
| From net realized gains | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | |
| Total distributions | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | |
| Net Asset Value, End of Period | | $ | 9.00 | | | $ | 8.97 | | | $ | 8.91 | |
| | | | | | | | | | | | | |
Total Return(4) | | | 9.49 | %(5) | | | 9.39 | %(5) | | | 9.06 | %(5) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| SUPPLEMENTAL DATA AND RATIOS |
| Net assets, end of period (000’s) | | $ | 681 | | | $ | 92 | | | $ | 89 | |
| Ratio of operating expenses to average net assets: | | | | | | | | | | | | |
| Before expense reimbursement | | | 16.68 | %(6) | | | 16.93 | %(6) | | | 17.43 | %(6) |
After expense reimbursement(7) | | | 1.49 | %(6) | | | 1.74 | %(6) | | | 2.24 | %(6) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | |
| Before expense reimbursement | | | (16.27 | )%(6) | | | (16.52 | )%(6) | | | (17.02 | )%(6) |
After expense reimbursement(7) | | | (1.08 | )%(6) | | | (1.33 | )%(6) | | | (1.83 | )%(6) |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | |
| |
| ˆ | 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. |
See Notes to Financial Statements.
72
| | | | | | | | | | | | | | | | | | | | | |
| | | The Multi-Disciplinary Fund | |
| | | Institutional Class
| | | No Load Class
| | | Advisor Class A
| | | Advisor Class C
| | | Institutional Class
| |
| | | For the
| | | For the Period
| | | For the Period
| | | For the Period
| | | For the Period
| |
| | | Six Months
| | | February 11, 2008ˆ
| | | February 11, 2008ˆ
| | | February 11, 2008ˆ
| | | February 11, 2008ˆ
| |
| | | Ended
| | | through
| | | through
| | | through
| | | through
| |
| | | June 30, 2009
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | (Unaudited) | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| | |
| |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 8.23 | | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | | | $ | 10.00 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | (0.04 | ) | | | 0.01 | | | | (0.01 | ) | | | (0.05 | ) | | | 0.02 | |
| | | | 0.84 | | | | (1.79 | ) | | | (1.79 | ) | | | (1.78 | ) | | | (1.79 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 0.80 | | | | (1.78 | ) | | | (1.80 | ) | | | (1.83 | ) | | | (1.77 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | (0.00 | )(3) | | | (0.00 | )(3) | | | (0.00 | )(3) | | | (0.00 | )(3) |
| | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | (0.00 | ) | | | (0.00 | ) | | | (0.00 | ) | | | (0.00 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 9.03 | | | $ | 8.22 | | | $ | 8.20 | | | $ | 8.17 | | | $ | 8.23 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 9.72 | %(5) | | | -17.76 | %(5) | | | -17.97 | %(5) | | | -18.30 | %(5) | | | -17.65 | %(5) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 90 | | | $ | 99 | | | $ | 84 | | | $ | 88 | | | $ | 82 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 16.63 | %(6) | | | 17.58 | %(6) | | | 17.83 | %(6) | | | 18.33 | %(6) | | | 17.53 | %(6) |
| | | | 1.29 | %(6) | | | 1.49 | %(6) | | | 1.74 | %(6) | | | 2.24 | %(6) | | | 1.29 | %(6) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | (16.22 | )%(6) | | | (15.99 | )%(6) | | | (16.24 | )%(6) | | | (16.74 | )%(6) | | | (15.94 | )%(6) |
| | | | (0.88 | )%(6) | | | 0.10 | %(6) | | | (0.15 | )%(6) | | | (0.65 | )%(6) | | | 0.30 | %(6) |
| | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
See Notes to Financial Statements.
73
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
June 30, 2009 (Unaudited)
The Internet Portfolio
The Global Portfolio
74
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
ALLOCATION OF PORTFOLIO ASSETS
June 30, 2009 (Unaudited) — (Continued)
The Paradigm Portfolio
The Medical Portfolio
75
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
ALLOCATION OF PORTFOLIO ASSETS
June 30, 2009 (Unaudited) — (Continued)
The Small Cap Opportunities Portfolio
The Kinetics Government Money Market Portfolio
76
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
ALLOCATION OF PORTFOLIO ASSETS
June 30, 2009 (Unaudited) — (Continued)
The Market Opportunities Portfolio
The Water Infrastructure Portfolio
77
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
ALLOCATION OF PORTFOLIO ASSETS
June 30, 2009 (Unaudited) — (Continued)
The Multi-Disciplinary Portfolio
78
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 94.11% | | Shares | | | Value | |
| | |
| | | Aerospace & Defense — 2.72% | | | | | | | | |
| CAI | | CACI International, Inc. — Class A*(1) | | | 55,000 | | | $ | 2,349,050 | |
| | | | | | | | | | | |
| | | Asian Exchanges — 2.78% |
| 388 HK | | Hong Kong Exchanges & Clearing Limited | | | 110,000 | | | | 1,713,150 | |
| 8697 JP | | Osaka Securities Exchange Co., Ltd. | | | 144 | | | | 692,085 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,405,235 | |
| | | | | | | | | | | |
| | | Asset Management — 0.91% |
| URB/A CN | | Urbana Corp. — Class A* | | | 240,000 | | | | 313,631 | |
| GROW | | US Global Investors, Inc. — Class A(1) | | | 48,000 | | | | 444,480 | |
| WSDT | | WisdomTree Investments, Inc.*(1) | | | 24,000 | | | | 26,400 | |
| | | | | | | | | | | |
| | | | | | | | | | 784,511 | |
| | | | | | | | | | | |
| | | Capital Markets — 1.53% |
| CLST LN | | Collins Stewart plc | | | 4,000 | | | | 4,738 | |
| LAB | | LaBranche & Co. Inc.* | | | 210,000 | | | | 903,000 | |
| NTRS | | Northern Trust Corp. | | | 2,000 | | | | 107,360 | |
| RMG | | Riskmetrics Group Inc.*(1) | | | 5,700 | | | | 100,662 | |
| STT | | State Street Corporation(1) | | | 4,000 | | | | 188,800 | |
| TLPR LN | | Tullett Prebon plc | | | 4,000 | | | | 19,479 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,324,039 | |
| | | | | | | | | | | |
| | | Commercial Services & Supplies — 6.16% |
| CDCO | | Comdisco Holding Company, Inc.*(1) | | | 194,400 | | | | 1,419,120 | |
| CSGP | | CoStar Group, Inc.*(1) | | | 2,000 | | | | 79,740 | |
| MWW | | Monster Worldwide, Inc.* | | | 2,000 | | | | 23,620 | |
| RBA | | Ritchie Bros. Auctioneers, Incorporated(1) | | | 162,000 | | | | 3,798,900 | |
| | | | | | | | | | | |
| | | | | | | | | | 5,321,380 | |
| | | | | | | | | | | |
| | | Communications Equipment — 1.27% |
| SATS | | EchoStar Corporation — Class A* | | | 10,000 | | | | 159,400 | |
| JDSU | | JDS Uniphase Corporation* | | | 45,000 | | | | 257,400 | |
| QCOM | | QUALCOMM Inc. | | | 15,000 | | | | 678,000 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,094,800 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
79
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Computers & Peripherals — 3.97% |
| AAPL | | Apple, Inc.* | | | 5,000 | | | $ | 712,150 | |
| EMC | | EMC Corporation*(1) | | | 140,000 | | | | 1,834,000 | |
| NTAP | | NetApp, Inc.* | | | 45,000 | | | | 887,400 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,433,550 | |
| | | | | | | | | | | |
| | | Consumer Finance — 0.27% |
| AXP | | American Express Company(1) | | | 10,000 | | | | 232,400 | |
| | | | | | | | | | | |
| | | Diversified Consumer Services — 0.93% |
| APOL | | Apollo Group, Inc. — Class A* | | | 2,000 | | | | 142,240 | |
| EDU | | New Oriental Education & Technology Group, Inc. — ADR* | | | 3,550 | | | | 239,128 | |
| BID | | Sotheby’s(1) | | | 30,000 | | | | 423,300 | |
| | | | | | | | | | | |
| | | | | | | | | | 804,668 | |
| | | | | | | | | | | |
| | | Diversified Financial Services — 3.62% |
| CLE LN | | Climate Exchange PLC* | | | 40,000 | | | | 563,644 | |
| CME | | CME Group, Inc.(1) | | | 3,300 | | | | 1,026,663 | |
| ICE | | IntercontinentalExchange Inc.*(1) | | | 13,000 | | | | 1,485,120 | |
| MKTX | | MarketAxess Holdings, Inc.* | | | 6,000 | | | | 57,180 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,132,607 | |
| | | | | | | | | | | |
| | | Diversified Telecommunication Services — 0.47% |
| 215 HK | | Hutchison Telecommunications Hong Kong Holdings Limited* | | | 2,300,000 | | | | 314,579 | |
| HTHKY | | Hutchison Telecommunications Hong Kong Holdings Limited — ADR* | | | 45,000 | | | | 94,500 | |
| | | | | | | | | | | |
| | | | | | | | | | 409,079 | |
| | | | | | | | | | | |
| | | Electronic Equipment & Instruments — 0.18% |
| ID | | L-1 Identity Solutions, Inc.* | | | 20,000 | | | | 154,800 | |
| | | | | | | | | | | |
| | | European Exchanges — 0.36% |
| DB1 GR | | Deutsche Boerse AG | | | 4,000 | | | | 310,200 | |
| | | | | | | | | | | |
| | | Funds, Trusts, and Other Financial Vehicles — 0.17% |
| HHH | | Internet HOLDRs Trust | | | 3,500 | | | | 149,800 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
80
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Global Exchanges — 3.95% |
| JSE SJ | | JSE Limited | | | 60,000 | | | $ | 377,293 | |
| SGX SP | | Singapore Exchange Limited | | | 620,000 | | | | 3,039,216 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,416,509 | |
| | | | | | | | | | | |
| | | Holding Company — 9.43% |
| GBLB BB | | Groupe Bruxelles Lambert S.A. | | | 18,000 | | | | 1,315,601 | |
| GBLS BB | | Groupe Bruxelles Lambert S.A. Strip VVPR* | | | 2,000 | | | | 28 | |
| LUK | | Leucadia National Corporation* | | | 324,000 | | | | 6,833,160 | |
| | | | | | | | | | | |
| | | | | | | | | | 8,148,789 | |
| | | | | | | | | | | |
| | | Hotels, Restaurants & Leisure — 1.12% |
| CTRP | | Ctrip.com International Ltd. — ADR*(1) | | | 3,000 | | | | 138,900 | |
| IILG | | Interval Leisure Group, Inc.* | | | 200 | | | | 1,864 | |
| 200 HK | | Melco International Development Limited* | | | 1,500,000 | | | | 824,511 | |
| | | | | | | | | | | |
| | | | | | | | | | 965,275 | |
| | | | | | | | | | | |
| | | Household Durables — 0.82% |
| IEP | | Icahn Enterprises LP(1) | | | 18,000 | | | | 705,960 | |
| | | | | | | | | | | |
| | | Internet & Catalog Retail — 0.99% |
| EBAY | | eBay, Inc.* | | | 40,000 | | | | 685,200 | |
| EXPE | | Expedia, Inc.* | | | 4,000 | | | | 60,440 | |
| HSNI | | HSN, Inc.* | | | 200 | | | | 2,114 | |
| NFLX | | Netflix, Inc.* | | | 1,000 | | | | 41,340 | |
| OSTK | | Overstock.com, Inc.*(1) | | | 1,000 | | | | 11,960 | |
| PCLN | | Priceline.com Incorporated*(1) | | | 500 | | | | 55,775 | |
| TKTM | | Ticketmaster* | | | 200 | | | | 1,284 | |
| | | | | | | | | | | |
| | | | | | | | | | 858,113 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
81
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Internet Software & Services — 8.59% |
| BIDU | | Baidu.com, Inc. — ADR*(1) | | | 9,700 | | | $ | 2,920,573 | |
| JRJC | | China Finance Online Company — ADR*(1) | | | 10,000 | | | | 103,550 | |
| GOOG | | Google Inc. — Class A*(1) | | | 3,200 | | | | 1,349,088 | |
| IACI | | IAC/InterActiveCorp* | | | 60,740 | | | | 974,877 | |
| ICGE | | Internet Capital Group, Inc.*(1) | | | 15,000 | | | | 100,950 | |
| NTES | | NetEase.com Inc. — ADR* | | | 200 | | | | 7,036 | |
| SINA | | SINA Corp*(1) | | | 26,000 | | | | 766,480 | |
| SOHU | | Sohu.com Inc.*(1) | | | 18,000 | | | | 1,130,940 | |
| UNTD | | United Online, Inc. | | | 10,000 | | | | 65,100 | |
| | | | | | | | | | | |
| | | | | | | | | | 7,418,594 | |
| | | | | | | | | | | |
| | | IT Services — 12.22% |
| ACXM | | Acxiom Corporation | | | 30,150 | | | | 266,225 | |
| BR | | Broadridge Financial Solutions Inc.(1) | | | 100,000 | | | | 1,658,000 | |
| CTSH | | Cognizant Technology Solutions Corporation — Class A* | | | 39,000 | | | | 1,041,300 | |
| INFY | | Infosys Technologies Limited — ADR(1) | | | 30,000 | | | | 1,103,400 | |
| IRM | | Iron Mountain Incorporated*(1) | | | 6,000 | | | | 172,500 | |
| MANT | | ManTech International Corporation — Class A* | | | 82,000 | | | | 3,529,280 | |
| MA | | Mastercard, Inc. — Class A(1) | | | 6,000 | | | | 1,003,860 | |
| SAPE | | Sapient Corporation* | | | 20,000 | | | | 125,800 | |
| V | | Visa, Inc. — Class A(1) | | | 20,000 | | | | 1,245,200 | |
| WU | | Western Union Company | | | 25,000 | | | | 410,000 | |
| | | | | | | | | | | |
| | | | | | | | | | 10,555,565 | |
| | | | | | | | | | | |
| | | Leisure Equipment & Products — 0.01% |
| MVL | | Marvel Entertainment, Inc.* | | | 322 | | | | 11,460 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
82
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Media — 18.13% |
| DWA | | DreamWorks Animation SKG, Inc. — Class A* | | | 150,000 | | | $ | 4,138,500 | |
| SSP | | The E.W. Scripps Company — Class A(1) | | | 898,065 | | | | 1,876,956 | |
| IAR | | Idearc Inc.*(1) | | | 364,000 | | | | 13,504 | |
| LBTYK | | Liberty Global, Inc. — Series C*(1) | | | 100,707 | | | | 1,592,178 | |
| SNI | | Scripps Networks Interactive — Class A | | | 65,000 | | | | 1,808,950 | |
| SIRI | | Sirius XM Radio, Inc.*(1) | | | 46,000 | | | | 19,780 | |
| TWC | | Time Warner Cable, Inc.(1) | | | 21,754 | | | | 688,949 | |
| TWX | | Time Warner, Inc.(1) | | | 86,666 | | | | 2,183,117 | |
| DIS | | The Walt Disney Co. | | | 11,380 | | | | 265,495 | |
| WMG | | Warner Music Group Corp.* | | | 310,000 | | | | 1,813,500 | |
| WPO | | The Washington Post Company — Class B | | | 3,600 | | | | 1,267,848 | |
| | | | | | | | | | | |
| | | | | | | | | | 15,668,777 | |
| | | | | | | | | | | |
| | | Other Exchanges — 0.69% |
| ASX AU | | ASX Ltd. | | | 18,000 | | | | 536,519 | |
| NZX NZ | | NZX Ltd.* | | | 12,000 | | | | 55,745 | |
| | | | | | | | | | | |
| | | | | | | | | | 592,264 | |
| | | | | | | | | | | |
| | | Prepackaged Software — 0.57% |
| CHKP | | Check Point Software Technologies Ltd.*(1) | | | 21,000 | | | | 492,870 | |
| | | | | | | | | | | |
| | | Publishing — 0.15% |
| MCO | | Moody’s Corporation(1) | | | 4,000 | | | | 105,400 | |
| RHD | | R.H. Donnelley Corporation*(1) | | | 484,000 | | | | 26,620 | |
| | | | | | | | | | | |
| | | | | | | | | | 132,020 | |
| | | | | | | | | | | |
| | | Software — 6.25% |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | | | 144,000 | | | | 612,000 | |
| MVSN | | Macrovision Solutions Corporation*(1) | | | 152,880 | | | | 3,334,313 | |
| MFE | | McAfee, Inc.* | | | 15,000 | | | | 632,850 | |
| MSFT | | Microsoft Corp. | | | 15,000 | | | | 356,550 | |
| SYMC | | Symantec Corporation* | | | 30,000 | | | | 466,800 | |
| | | | | | | | | | | |
| | | | | | | | | | 5,402,513 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
83
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Special Purpose Entity — 0.03% |
| ADPAO | | Adelphia Contingent Value Vehicle CVV Servies ACC-4 Int*+ | | | 250,827 | | | $ | 0 | |
| ADPAL | | Adelphia Recovery Trust Ser ACC-6 E/F Int*+ | | | 4,878,645 | | | | 24,393 | |
| | | | | | | | | | | |
| | | | | | | | | | 24,393 | |
| | | | | | | | | | | |
| | | Thrifts & Mortgage Finance — 0.11% |
| TREE | | Tree.com, Inc.* | | | 10,033 | | | | 96,317 | |
| | | | | | | | | | | |
| | | U.S. Equity Exchanges — 2.42% |
| NDAQ | | The Nasdaq OMX Group* | | | 54,470 | | | | 1,160,756 | |
| NYX | | NYSE Euronext | | | 34,000 | | | | 926,500 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,087,256 | |
| | | | | | | | | | | |
| | | Wireless Telecommunication Services — 3.29% |
| CHU | | China Unicom (Hong Kong) Limited — ADR | | | 159,793 | | | | 2,131,639 | |
| 2332 HK | | Hutchison Telecommunications International Limited | | | 2,300,000 | | | | 540,125 | |
| HTX | | Hutchison Telecommunications International Limited — ADR | | | 45,000 | | | | 159,750 | |
| SNSHA | | Sunshine PCS Corp. — Class A* | | | 149,890 | | | | 13,490 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,845,004 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS (cost $72,021,975) | | | | | | | 81,327,798 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| | | ESCROW NOTES — 0.00% | | Amount | | | | |
| | |
| |
| | | Special Purpose Entity — 0.00% |
| 006ESCBG1 | | Adelphia Communications Corp.*+ | | $ | 200,000 | | | | 0 | |
| 006ESC958 | | Adelphia Communications Corp. Preferred*+ | | | 190,000 | | | | 0 | |
| | | | | | | | | | | |
| | | TOTAL ESCROW NOTES
(cost $0) | | | | | | | 0 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
84
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| Identifier | | CONVERTIBLE BONDS — 2.31% | | Amount | | | Value | |
| | |
| |
| | | Diversified Telecommunication Services — 2.31% |
| 52729NAS9 | | Level 3 Communications, Inc., CLB(1) | | | | | | | | |
| | | 6.000%, 03/15/2010 | | $ | 2,000,000 | | | $ | 2,000,000 | |
| | | | | | | | | | | |
| | | TOTAL CONVERTIBLE BONDS (cost $1,786,332) | | | | | | | 2,000,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | RIGHTS — 1.52% | | Shares | | | | |
| | |
| |
| | | Commercial Services & Supplies — 1.52% |
| CDCOR | | Comdisco Holding Company, Inc.(1)
Expiration Date: 12/31/2050
Strike Price $1.00# | | | 12,240,699 | | | | 1,310,979 | |
| | | | | | | | | | | |
| | | TOTAL RIGHTS
(cost $3,253,775) | | | | | | | 1,310,979 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM INVESTMENTS — 2.04% | | | | | | |
| | |
| |
| | | Money Market Funds — 2.04% |
| FIUXX | | First American Prime Obligations Fund — Class I@ | | | 1,760,117 | | | | 1,760,117 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS (cost $1,760,117) | | | | | | | 1,760,117 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING — 40.31% | | | | | | |
| | |
| |
| | | Investment Companies — 40.31% |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 34,839,206 | | | | 34,839,206 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $34,839,206) | | | | | | | 34,839,206 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 140.29%
(cost $113,661,405) | | | | | | $ | 121,238,100 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
85
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
@ All or a portion of the shares have been committed as collateral for written option contracts.
| |
| # — | Contingent value right (contingent upon profitability of company). |
| |
| + — | Security is considered illiquid. The aggregate value of such securities is $24,393 or 0.03% of net assets. |
| |
| ADR — | American Depository Receipt. |
| |
| GDR — | Global Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Total loaned securities had a market value of $32,986,828 at June 30, 2009. |
See Notes to the Financial Statements.
86
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 96.98% | | Shares | | | Value | |
| | |
| | | Airlines — 2.99% | | | | | | | | |
| 753 HK | | Air China Limited — Class H* | | | 50,000 | | | $ | 24,516 | |
| 670 HK | | China Eastern Airlines Corporation Limited — Class H* | | | 100,000 | | | | 22,451 | |
| 1055 HK | | China Southern Airlines Company Limited — Class H* | | | 96,000 | | | | 26,632 | |
| JAARF | | Jazz Air Income Fund | | | 11,775 | | | | 33,205 | |
| | | | | | | | | | | |
| | | | | | | | | | 106,804 | |
| | | | | | | | | | | |
| | | Asset Management — 5.53% |
| CML SJ | | Coronation Fund Managers Ltd. | | | 30,000 | | | | 23,770 | |
| DC/A CN | | Dundee Corporation — Class A* | | | 1,600 | | | | 9,299 | |
| URB/A CN | | Urbana Corp. — Class A* | | | 39,300 | | | | 51,357 | |
| GROW | | US Global Investors, Inc. — Class A(1) | | | 7,000 | | | | 64,820 | |
| 806 HK | | Value Partners Group Limited | | | 111,000 | | | | 48,267 | |
| | | | | | | | | | | |
| | | | | | | | | | 197,513 | |
| | | | | | | | | | | |
| | | Automobiles — 0.84% |
| TTM | | Tata Motors Limited — ADR | | | 3,500 | | | | 29,820 | |
| | | | | | | | | | | |
| | | Beverages — 2.49% |
| 168 HK | | Tsingtao Brewery Co. Limited — Class H | | | 28,000 | | | | 88,877 | |
| | | | | | | | | | | |
| | | Brokerage & Investment Banking — 0.68% |
| NMR | | Nomura Holdings, Inc. — ADR(1) | | | 2,900 | | | | 24,447 | |
| | | | | | | | | | | |
| | | Chemicals — 0.72% |
| 3402 JP | | Toray Industries, Inc. | | | 5,000 | | | | 25,536 | |
| | | | | | | | | | | |
| | | Commercial Banks — 9.72% |
| 3988 HK | | Bank of China Ltd. — Class H | | | 136,000 | | | | 64,753 | |
| 939 HK | | China Construction Bank Corp. — Class H | | | 70,000 | | | | 54,283 | |
| HDB | | HDFC Bank Ltd. — ADR | | | 620 | | | | 63,941 | |
| IBN | | ICICI Bank Ltd. — ADR | | | 1,500 | | | | 44,250 | |
| 1398 HK | | Industrial & Commercial Bank of China — Class H | | | 80,000 | | | | 55,742 | |
| SBKFF | | State Bank of India — GDR | | | 900 | | | | 63,900 | |
| | | | | | | | | | | |
| | | | | | | | | | 346,869 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
87
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Commercial Services & Supplies — 0.29% |
| BXB AU | | Brambles Limited | | | 2,145 | | | $ | 10,302 | |
| | | | | | | | | | | |
| | | Construction & Engineering — 2.51% |
| 1186 HK | | China Railway Construction Corp. — Class H | | | 26,000 | | | | 40,123 | |
| 390 HK | | China Railway Group Ltd. — Class H* | | | 24,000 | | | | 19,293 | |
| BOKA NA | | Koninklijke Boskalis Westminster NV | | | 400 | | | | 9,068 | |
| NTBC LN | | Noida Toll Bridge Company Ltd. — GDR* | | | 6,000 | | | | 21,000 | |
| | | | | | | | | | | |
| | | | | | | | | | 89,484 | |
| | | | | | | | | | | |
| | | Construction Materials — 0.43% |
| 3323 HK | | China National Building Material Company Ltd. — Class H | | | 8,000 | | | | 15,504 | |
| | | | | | | | | | | |
| | | Consumer Finance — 1.74% |
| COMPARTO MM | | Banco Compartamos SA de CV | | | 8,000 | | | | 26,014 | |
| IX | | ORIX Corporation — ADR | | | 800 | | | | 23,632 | |
| 8564 JP | | Takefuji Corporation | | | 2,270 | | | | 12,442 | |
| | | | | | | | | | | |
| | | | | | | | | | 62,088 | |
| | | | | | | | | | | |
| | | Diversified Consumer Services — 1.76% |
| 4668 JP | | Meiko Network Japan Co., Ltd. | | | 5,800 | | | | 29,742 | |
| 2437 JP | | Shinwa Art Auction Co., Ltd.* | | | 110 | | | | 32,999 | |
| | | | | | | | | | | |
| | | | | | | | | | 62,741 | |
| | | | | | | | | | | |
| | | Diversified Financial Services — 1.37% |
| | | Crisil Ltd. — PN | | | 240 | | | | 17,203 | |
| | | ICRA Limited — PN | | | 650 | | | | 10,447 | |
| IFSS LI | | Indiabulls Financial Services Ltd. — GDR | | | 1,000 | | | | 2,660 | |
| | | Power Finance Corporation — PN | | | 4,620 | | | | 18,714 | |
| | | | | | | | | | | |
| | | | | | | | | | 49,024 | |
| | | | | | | | | | | |
| | | Diversified Telecommunication Services — 0.55% |
| TCL | | Tata Communications Limited — ADR | | | 1,000 | | | | 19,660 | |
| | | | | | | | | | | |
| | | Electronic Equipment & Instruments — 0.57% |
| 6861 JP | | Keyence Corp. | | | 100 | | | | 20,449 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
88
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Electronic Equipment, Instruments & Components — 0.54% | | | | | | | | |
| 6592 JP | | Mabuchi Motor Co., Ltd. | | | 400 | | | $ | 19,349 | |
| | | | | | | | | | | |
| | | Food — 0.15% |
| PJP IX | | X5 Retail Group N.V. — GDR* | | | 350 | | | | 5,337 | |
| | | | | | | | | | | |
| | | Food & Staples Retailing — 0.27% |
| LIQ-U CN | | Liquor Stores Income Fund | | | 870 | | | | 9,821 | |
| | | | | | | | | | | |
| | | Food Products — 2.29% |
| CRESY | | Cresud S.A.C.I.F.y A. — ADR | | | 1,500 | | | | 14,145 | |
| KWS GR | | KWS Saat AG | | | 200 | | | | 35,916 | |
| MEW-U CN | | Menu Foods Income Fund — UT* | | | 8,040 | | | | 10,023 | |
| VT CN | | Viterra, Inc.* | | | 2,500 | | | | 21,708 | |
| | | | | | | | | | | |
| | | | | | | | | | 81,792 | |
| | | | | | | | | | | |
| | | Funds, Trusts and Other Financial Vehicles — 0.69% | | | | | | | | |
| 1615 JP | | TOPIX Banks Exchange Traded Fund | | | 13,400 | | | | 24,759 | |
| | | | | | | | | | | |
| | | Global Exchanges — 8.48% |
| BURSA MK | | Bursa Malaysia Bhd | | | 10,200 | | | | 20,023 | |
| 388 HK | | Hong Kong Exchanges & Clearing Limited | | | 6,500 | | | | 101,232 | |
| JSE SJ | | JSE Limited | | | 2,225 | | | | 13,991 | |
| PSE PM | | Philippine Stock Exchange, Inc. | | | 3,200 | | | | 17,953 | |
| SGX SP | | Singapore Exchange Limited | | | 30,500 | | | | 149,510 | |
| | | | | | | | | | | |
| | | | | | | | | | 302,709 | |
| | | | | | | | | | | |
| | | Health Care Equipment & Supplies — 0.43% |
| 3593 JP | | Hogy Medical Co., Ltd. | | | 300 | | | | 15,259 | |
| | | | | | | | | | | |
| | | Hotels, Restaurants & Leisure — 1.62% |
| IHTD LI | | Indian Hotels Company Limited — GDR | | | 5,000 | | | | 6,894 | |
| MPEL | | Melco Crown Entertainment Ltd. — ADR* | | | 4,000 | | | | 18,000 | |
| 200 HK | | Melco International Development Limited* | | | 60,000 | | | | 32,980 | |
| | | | | | | | | | | |
| | | | | | | | | | 57,874 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
89
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Insurance — 3.85% |
| LFC | | China Life Insurance Co., Limited — ADR | | | 500 | | | $ | 27,720 | |
| 2628 HK | | China Life Insurance Co., Limited — Class H | | | 16,000 | | | | 58,838 | |
| 2318 HK | | Ping An Insurance Group Company of China Limited — Class H | | | 7,500 | | | | 50,758 | |
| | | | | | | | | | | |
| | | | | | | | | | 137,316 | |
| | | | | | | | | | | |
| | | Leisure Equipment & Products — 0.64% |
| 7309 JP | | Shimano Inc. | | | 600 | | | | 22,982 | |
| | | | | | | | | | | |
| | | Machinery — 0.68% |
| 6954 JP | | Fanuc Ltd. | | | 300 | | | | 24,166 | |
| | | | | | | | | | | |
| | | Media — 0.85% |
| 4765 JP | | Morningstar Japan K. K | | | 75 | | | | 30,363 | |
| | | | | | | | | | | |
| | | Metals & Mining — 3.08% |
| HNDNF | | Hindalco Industries Limited — GDR (Acquired 08/06/08-10/01/08 at $43,060)ˆ | | | 14,285 | | | | 25,779 | |
| 358 HK | | Jiangxi Copper Company Ltd. — Class H | | | 14,000 | | | | 22,942 | |
| SLT | | Sterlite Industries India Ltd. — ADR | | | 4,000 | | | | 49,760 | |
| VED LN | | Vedanta Resources Plc | | | 550 | | | | 11,654 | |
| | | | | | | | | | | |
| | | | | | | | | | 110,135 | |
| | | | | | | | | | | |
| | | Multiline Retail — 0.27% |
| | | Pantaloon Retail India Limited — PN | | | 1,500 | | | | 9,622 | |
| | | | | | | | | | | |
| | | Office Electronics — 0.77% |
| CAJ | | Canon Inc. — ADR(1) | | | 840 | | | | 27,325 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
90
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Oil, Gas & Consumable Fuels — 8.97% |
| SNP | | China Petroleum & Chemical Corp. — ADR | | | 450 | | | $ | 34,137 | |
| 386 HK | | China Petroleum & Chemical Corp. — Class H | | | 64,000 | | | | 48,805 | |
| 1088 HK | | China Shenhua Energy Company Limited — Class H | | | 14,000 | | | | 51,574 | |
| CEO | | CNOOC Limited — ADR(1) | | | 300 | | | | 36,909 | |
| GAID LI | | Gail India Limited — GDR | | | 1,500 | | | | 54,525 | |
| PTR | | PetroChina Company Limited — ADR | | | 350 | | | | 38,668 | |
| | | Petronet LNG Ltd. — PN | | | 9,615 | | | | 14,100 | |
| RIGD LI | | Reliance Industries Ltd. — GDR (Acquired 04/03/08-05/06/08 at $63,073)ˆ | | | 500 | | | | 41,500 | |
| | | | | | | | | | | |
| | | | | | | | | | 320,218 | |
| | | | | | | | | | | |
| | | Real Estate — 6.65% |
| 1 HK | | Cheung Kong (Holdings) Limited | | | 4,000 | | | | 45,987 | |
| | | DLF Ltd. — PN | | | 2,330 | | | | 15,117 | |
| 12 HK | | Henderson Land Development Company Limited | | | 12,000 | | | | 68,825 | |
| | | Housing Development & Infrastructure Limited — PN* | | | 3,120 | | | | 15,221 | |
| 823 HK | | The Link REIT | | | 31,000 | | | | 66,160 | |
| XIN | | Xinyuan Real Estate Co. Ltd. — ADR* | | | 4,000 | | | | 25,920 | |
| | | | | | | | | | | |
| | | | | | | | | | 237,230 | |
| | | | | | | | | | | |
| | | Road & Rail — 0.83% |
| CNI | | Canadian National Railway Company | | | 345 | | | | 14,821 | |
| CP | | Canadian Pacific Railway Limited | | | 375 | | | | 14,925 | |
| | | | | | | | | | | |
| | | | | | | | | | 29,746 | |
| | | | | | | | | | | |
| | | Software — 3.10% |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | | | 20,800 | | | | 88,400 | |
| 4733 JP | | Obic Business Consultants Co., Ltd. | | | 550 | | | | 22,380 | |
| | | | | | | | | | | |
| | | | | | | | | | 110,780 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
91
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Tobacco — 1.76% |
| ITC IX | | ITC Limited — GDR | | | 7,000 | | | $ | 27,873 | |
| PM | | Philip Morris International, Inc. | | | 800 | | | | 34,896 | |
| | | | | | | | | | | |
| | | | | | | | | | 62,769 | |
| | | | | | | | | | | |
| | | Transportation Infrastructure — 13.94% |
| 995 HK | | Anhui Expressway Co. Ltd. — Class H | | | 66,000 | | | | 37,300 | |
| 694 HK | | Beijing Capital International Airport Company Limited — Class H* | | | 125,000 | | | | 87,580 | |
| 357 HK | | Hainan Meilan International Airport Company Limited — Class H | | | 65,000 | | | | 40,174 | |
| 737 HK | | Hopewell Highway Infrastructure Limited | | | 35,600 | | | | 19,936 | |
| 54 HK | | Hopewell Holdings Limited | | | 16,000 | | | | 50,167 | |
| ICT PM | | International Container Terminal Services, Inc. | | | 60,600 | | | | 19,518 | |
| 9706 JP | | Japan Airport Terminal Co., Ltd. | | | 800 | | | | 9,733 | |
| 177 HK | | Jiangsu Expressway Company Ltd. — Class H | | | 54,000 | | | | 39,646 | |
| | | Mundra Port And Special Economic Zone Ltd. — PN | | | 830 | | | | 10,466 | |
| NCSP LI | | Novorossiysk Sea Trade Port — GDR* | | | 800 | | | | 7,680 | |
| 548 HK | | Shenzhen Expressway Company Limited — Class H | | | 54,000 | | | | 25,711 | |
| 107 HK | | Sichuan Expressway Co. Limited — Class H* | | | 114,000 | | | | 47,071 | |
| 3382 HK | | Tianjin Port Development Holdings Ltd. | | | 148,000 | | | | 64,738 | |
| 576 HK | | Zhejiang Expressway Co., Limited. — Class H | | | 48,000 | | | | 38,090 | |
| | | | | | | | | | | |
| | | | | | | | | | 497,810 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
92
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Utilities — 4.93% |
| 855 HK | | China Water Affairs Group Limited* | | | 76,000 | | | $ | 19,221 | |
| 991 HK | | Datang International Power Generation Company Limited — Class H | | | 96,000 | | | | 58,467 | |
| HNP | | Huaneng Power International, Inc. — ADR(1) | | | 1,200 | | | | 33,684 | |
| | | Power Grid Corporation of India Limited — PN | | | 12,460 | | | | 28,455 | |
| RIFS LI | | Reliance Infrastructure Ltd. — GDR | | | 450 | | | | 36,000 | |
| | | | | | | | | | | |
| | | | | | | | | | 175,827 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS
(cost $4,276,632) | | | | | | | 3,462,307 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | PREFERRED STOCKS — 0.00% | | | | | | |
| | |
| |
| | | Diversified Telecommunication Services — 0.00% |
| PTVI | | PTV, Inc. — Series A, CLB* | | | 487 | | | | 117 | |
| | | | | | | | | | | |
| | | TOTAL PREFERRED STOCKS (cost $3,399) | | | | | | | 117 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM INVESTMENTS — 6.16% | | | | | | |
| | |
| |
| | | Money Market Funds — 6.16% |
| FIUXX | | First American Prime Obligations Fund — Class I | | | 118,445 | | | | 118,445 | |
| FAIXX | | First American Prime Obligations Fund — Class Y | | | 101,283 | | | | 101,283 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS (cost $219,728) | | | | | | | 219,728 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
93
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING — 5.56% | | Shares | | | Value | |
| | |
| |
| | | Investment Companies — 5.56% |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 198,369 | | | $ | 198,369 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $198,369) | | | | | | | 198,369 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 108.70%
(cost $4,698,128) | | | | | | $ | 3,880,521 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
| |
| ˆ — | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified, institutional buyers. The aggregate value of such securities is $67,279 or 1.88% of net assets. |
| |
| ADR — | American Depository Receipt. |
| |
| GDR — | Global Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Total loaned securities had a market value of $184,695 at June 30, 2009. |
See Notes to the Financial Statements.
94
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 97.46% | | Shares | | | Value | |
| | |
| | | Aerospace & Defense — 0.48% | | | | | | | | |
| CAI | | CACI International, Inc. — Class A*(1) | | | 151,612 | | | $ | 6,475,348 | |
| | | | | | | | | | | |
| | | Airlines — 0.45% |
| 670 HK | | China Eastern Airlines Corporation Limited — Class H* | | | 8,807,000 | | | | 1,977,301 | |
| 1055 HK | | China Southern Airlines Company Limited — Class H* | | | 14,738,000 | | | | 4,088,580 | |
| | | | | | | | | | | |
| | | | | | | | | | 6,065,881 | |
| | | | | | | | | | | |
| | | Asian Exchanges — 1.93% |
| 8697 JP | | Osaka Securities Exchange Co., Ltd. | | | 5,454 | | | | 26,212,716 | |
| | | | | | | | | | | |
| | | Asset Management — 4.96% |
| BLK | | BlackRock, Inc.(1) | | | 42,003 | | | | 7,368,166 | |
| BX | | The Blackstone Group LP(1) | | | 218,942 | | | | 2,307,649 | |
| BAM | | Brookfield Asset Management Inc. — Class A | | | 1,850,324 | | | | 31,585,031 | |
| CNS | | Cohen & Steers, Inc.(1) | | | 187,454 | | | | 2,802,437 | |
| EV | | Eaton Vance Corp.(1) | | | 313,188 | | | | 8,377,779 | |
| LM | | Legg Mason, Inc.(1) | | | 112,847 | | | | 2,751,210 | |
| POW CN | | Power Corporation of Canada(1) | | | 383,190 | | | | 8,842,213 | |
| PZN | | Pzena Investment Management, Inc. — Class A(1) | | | 222,280 | | | | 1,684,882 | |
| URB/A CN | | Urbana Corp. — Class A* | | | 449,500 | | | | 587,405 | |
| GROW | | US Global Investors, Inc. — Class A(1) | | | 86,078 | | | | 797,082 | |
| 806 HK | | Value Partners Group Limited | | | 707,000 | | | | 307,429 | |
| WSDT | | WisdomTree Investments, Inc.*(1) | | | 12,000 | | | | 13,200 | |
| | | | | | | | | | | |
| | | | | | | | | | 67,424,483 | |
| | | | | | | | | | | |
| | | Beverages — 1.48% |
| RI FP | | Pernod-Ricard SA | | | 35,050 | | | | 2,206,267 | |
| 168 HK | | Tsingtao Brewery Co. Limited — Class H | | | 5,643,000 | | | | 17,911,859 | |
| | | | | | | | | | | |
| | | | | | | | | | 20,118,126 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
95
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Capital Markets — 2.15% |
| BK | | The Bank of New York Mellon Corp.(1) | | | 538,980 | | | $ | 15,797,504 | |
| JEF | | Jefferies Group, Inc.*(1) | | | 59,600 | | | | 1,271,268 | |
| LAB | | LaBranche & Co. Inc.* | | | 1,145,250 | | | | 4,924,575 | |
| NTRS | | Northern Trust Corp. | | | 42,748 | | | | 2,294,712 | |
| STT | | State Street Corporation(1) | | | 105,605 | | | | 4,984,556 | |
| | | | | | | | | | | |
| | | | | | | | | | 29,272,615 | |
| | | | | | | | | | | |
| | | Chemicals — 1.94% |
| SIAL | | Sigma-Aldrich Corp.(1) | | | 530,920 | | | | 26,312,395 | |
| | | | | | | | | | | |
| | | Commercial Banks — 1.60% |
| 3988 HK | | Bank of China Ltd. — Class H | | | 7,746,000 | | | | 3,688,072 | |
| CATY | | Cathay General Bancorp(1) | | | 92,022 | | | | 875,129 | |
| CLFC | | Center Financial Corporation | | | 147,872 | | | | 372,637 | |
| 939 HK | | China Construction Bank Corp. — Class H | | | 5,697,500 | | | | 4,418,291 | |
| EWBC | | East West Bancorp, Inc.(1) | | | 79,458 | | | | 515,682 | |
| HAFC | | Hanmi Financial Corporation(1) | | | 158,143 | | | | 276,750 | |
| 1398 HK | | Industrial & Commercial Bank of China — Class H | | | 5,893,000 | | | | 4,106,064 | |
| MTB | | M&T Bank Corporation(1) | | | 18,522 | | | | 943,326 | |
| NARA | | Nara Bancorp, Inc.(1) | | | 143,364 | | | | 742,626 | |
| SBID LI | | State Bank of India — GDR(1) | | | 68,600 | | | | 4,870,600 | |
| UCBH | | UCBH Holdings, Inc.(1) | | | 115,052 | | | | 144,966 | |
| WIBC | | Wilshire Bancorp, Inc.(1) | | | 143,266 | | | | 823,780 | |
| | | | | | | | | | | |
| | | | | | | | | | 21,777,923 | |
| | | | | | | | | | | |
| | | Consumer Finance — 0.05% |
| STU | | The Student Loan Corporation | | | 16,660 | | | | 619,752 | |
| | | | | | | | | | | |
| | | Diversified Consumer Services — 0.40% |
| BID | | Sotheby’s(1) | | | 381,975 | | | | 5,389,667 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
96
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Diversified Financial Services — 8.53% |
| AGO | | Assured Guaranty Ltd.(1) | | | 1,338,347 | | | $ | 16,568,736 | |
| CLE LN | | Climate Exchange PLC* | | | 68,640 | | | | 967,214 | |
| CME | | CME Group, Inc.(1) | | | 98,013 | | | | 30,492,824 | |
| ICE | | IntercontinentalExchange Inc.*(1) | | | 358,115 | | | | 40,911,058 | |
| LSE LN | | London Stock Exchange Group plc | | | 1,549,570 | | | | 17,909,167 | |
| PARG SW | | Pargesa Holding SA | | | 62,170 | | | | 3,879,367 | |
| TPL | | Texas Pacific Land Trust(1) | | | 157,445 | | | | 5,195,685 | |
| | | | | | | | | | | |
| | | | | | | | | | 115,924,051 | |
| | | | | | | | | | | |
| | | Electric Utilities — 0.07% |
| BIP | | Brookfield Infrastucture Partners LP(1) | | | 83,176 | | | | 1,025,560 | |
| | | | | | | | | | | |
| | | European Exchanges — 0.70% |
| BME SM | | Bolsas y Mercados Espanoles | | | 37,200 | | | | 1,100,089 | |
| DB1 GR | | Deutsche Boerse AG | | | 107,975 | | | | 8,373,466 | |
| | | | | | | | | | | |
| | | | | | | | | | 9,473,555 | |
| | | | | | | | | | | |
| | | Funds, Trusts, and Other Financial Vehicles — 0.62% |
| GDX | | Market Vectors Gold Miners ETF*(1) | | | 223,507 | | | | 8,439,624 | |
| | | | | | | | | | | |
| | | Gaming — 1.47% |
| LVS | | Las Vegas Sands Corp.*(1) | | | 156,310 | | | | 1,228,596 | |
| MGM | | MGM Mirage*(1) | | | 269,020 | | | | 1,719,038 | |
| WYNN | | Wynn Resorts Limited*(1) | | | 482,797 | | | | 17,042,734 | |
| | | | | | | | | | | |
| | | | | | | | | | 19,990,368 | |
| | | | | | | | | | | |
| | | Global Exchanges — 9.05% |
| 388 HK | | Hong Kong Exchanges & Clearing Limited | | | 5,750,600 | | | | 89,560,380 | |
| JSE SJ | | JSE Limited | | | 581,020 | | | | 3,653,579 | |
| SGX SP | | Singapore Exchange Limited | | | 6,071,500 | | | | 29,762,255 | |
| | | | | | | | | | | |
| | | | | | | | | | 122,976,214 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
97
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Holding Company — 7.87% |
| BRK/A | | Berkshire Hathaway Inc. — Class A*(1) | | | 331 | | | $ | 29,790,000 | |
| BRK/B | | Berkshire Hathaway Inc. — Class B*(1) | | | 5,720 | | | | 16,563,575 | |
| GBLB BB | | Groupe Bruxelles Lambert S.A. | | | 173,190 | | | | 12,658,276 | |
| GBLS BB | | Groupe Bruxelles Lambert S.A. Strip VVPR* | | | 24,000 | | | | 337 | |
| LUK | | Leucadia National Corporation*(1) | | | 2,272,934 | | | | 47,936,178 | |
| | | | | | | | | | | |
| | | | | | | | | | 106,948,366 | |
| | | | | | | | | | | |
| | | Hotels, Restaurants & Leisure — 0.09% |
| 200 HK | | Melco International Development Limited* | | | 2,303,000 | | | | 1,265,899 | |
| | | | | | | | | | | |
| | | Household Durables — 1.72% |
| IEP | | Icahn Enterprises LP(1) | | | 402,265 | | | | 15,776,833 | |
| JAH | | Jarden Corporation*(1) | | | 403,584 | | | | 7,567,200 | |
| | | | | | | | | | | |
| | | | | | | | | | 23,344,033 | |
| | | | | | | | | | | |
| | | Independent Power Producers & Energy Traders — 2.78% |
| CPN | | Calpine Corporation*(1) | | | 1,910,230 | | | | 21,299,065 | |
| DYN | | Dynegy, Inc. — Class A* | | | 1,785,347 | | | | 4,052,738 | |
| RRI | | RRI Energy, Inc.*(1) | | | 2,479,935 | | | | 12,424,474 | |
| | | | | | | | | | | |
| | | | | | | | | | 37,776,277 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
98
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Insurance — 4.24% |
| ABK | | Ambac Financial Group, Inc.(1) | | | 1,220,414 | | | $ | 1,122,781 | |
| LFC | | China Life Insurance Co., Limited — ADR(1) | | | 252,389 | | | | 13,992,446 | |
| 2628 HK | | China Life Insurance Co., Limited — Class H | | | 564,000 | | | | 2,074,051 | |
| MKL | | Markel Corporation*(1) | | | 54,095 | | | | 15,238,562 | |
| MBI | | MBIA Inc.*(1) | | | 1,369,910 | | | | 5,931,710 | |
| 2328 HK | | PICC Property & Casualty Co. Ltd. — Class H* | | | 3,136,000 | | | | 2,164,838 | |
| 2318 HK | | Ping An Insurance Group Company of China Limited — Class H | | | 1,640,000 | | | | 11,099,025 | |
| WSC | | Wesco Financial Corporation | | | 1,382 | | | | 402,162 | |
| WTM | | White Mountains Insurance Group Ltd. | | | 24,488 | | | | 5,605,548 | |
| | | | | | | | | | | |
| | | | | | | | | | 57,631,123 | |
| | | | | | | | | | | |
| | | IT Services — 1.12% |
| BR | | Broadridge Financial Solutions, Inc.(1) | | | 66,827 | | | | 1,107,992 | |
| MA | | Mastercard, Inc. — Class A(1) | | | 68,865 | | | | 11,521,803 | |
| V | | Visa, Inc. — Class A(1) | | | 4,735 | | | | 294,801 | |
| WU | | The Western Union Company | | | 140,287 | | | | 2,300,707 | |
| | | | | | | | | | | |
| | | | | | | | | | 15,225,303 | |
| | | | | | | | | | | |
| | | Media — 2.85% |
| DWA | | DreamWorks Animation SKG, Inc. — Class A*(1) | | | 352,306 | | | | 9,720,122 | |
| SSP | | The E.W. Scripps Company — Class A(1) | | | 47,980 | | | | 100,278 | |
| SNI | | Scripps Networks Interactive — Class A | | | 96,560 | | | | 2,687,265 | |
| TWC | | Time Warner Cable, Inc.(1) | | | 75,410 | | | | 2,388,235 | |
| TWX | | Time Warner, Inc.(1) | | | 300,430 | | | | 7,567,832 | |
| DIS | | The Walt Disney Co.(1) | | | 15,023 | | | | 350,487 | |
| WMG | | Warner Music Group Corp.*(1) | | | 1,733,719 | | | | 10,142,256 | |
| WPO | | The Washington Post Company — Class B | | | 16,451 | | | | 5,793,713 | |
| | | | | | | | | | | |
| | | | | | | | | | 38,750,188 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
99
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Metals & Mining — 5.08% |
| AAUK | | Anglo American PLC — ADR(1) | | | 2,068,788 | | | $ | 30,287,056 | |
| FNV CN | | Franco-Nevada Corporation | | | 1,170,462 | | | | 28,135,767 | |
| RTP | | Rio Tinto Plc — ADR(1) | | | 57,478 | | | | 9,418,920 | |
| 1171 HK | | Yanzhou Coal Mining Company Limited — Class H | | | 841,000 | | | | 1,156,775 | |
| | | | | | | | | | | |
| | | | | | | | | | 68,998,518 | |
| | | | | | | | | | | |
| | | Multiline Retail — 0.77% |
| SHLD | | Sears Holdings Corporation*(1) | | | 157,256 | | | | 10,460,669 | |
| | | | | | | | | | | |
| | | Multi-Utilities — 0.31% |
| NRG | | NRG Energy, Inc.* | | | 164,828 | | | | 4,278,935 | |
| | | | | | | | | | | |
| | | Oil, Gas & Consumable Fuels — 12.71% |
| CCJ | | Cameco Corporation(1) | | | 156,114 | | | | 3,996,518 | |
| CNQ | | Canadian Natural Resources Ltd.(1) | | | 504,396 | | | | 26,475,746 | |
| COS-U CN | | Canadian Oil Sands Trust | | | 1,365 | | | | 32,613 | |
| COSWF | | Canadian Oil Sands Trust(1) | | | 1,562,573 | | | | 37,333,021 | |
| 1898 HK | | China Coal Energy Company — Class H | | | 2,357,000 | | | | 2,791,887 | |
| CEO | | CNOOC Limited — ADR(1) | | | 45,100 | | | | 5,548,653 | |
| 135 HK | | CNPC Hong Kong Limited | | | 973,000 | | | | 803,504 | |
| EP | | El Paso Corporation | | | 732,452 | | | | 6,760,532 | |
| ECA | | EnCana Corporation(1) | | | 339,305 | | | | 16,785,418 | |
| OGZPY | | Gazprom OAO — ADR(1) | | | 395,650 | | | | 8,324,476 | |
| IMO | | Imperial Oil Ltd.(1) | | | 251,063 | | | | 9,655,883 | |
| NXY | | Nexen Inc.(1) | | | 469,603 | | | | 10,166,905 | |
| PWE | | Penn West Energy Trust(1) | | | 367,872 | | | | 4,683,011 | |
| PCZ | | Petro-Canada | | | 124,979 | | | | 4,801,693 | |
| PBR | | Petroleo Brasileiro S.A. — ADR | | | 37,955 | | | | 1,555,396 | |
| SD | | SandRidge Energy, Inc.*(1) | | | 126,577 | | | | 1,078,436 | |
| STO | | StatoilHydro ASA — ADR(1) | | | 112,749 | | | | 2,229,048 | |
| SU | | Suncor Energy, Inc.(1) | | | 966,098 | | | | 29,311,413 | |
| WZR CN | | WesternZagros Resources Ltd.* | | | 297,410 | | | | 411,667 | |
| | | | | | | | | | | |
| | | | | | | | | | 172,745,820 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
100
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Other Exchanges — 1.56% |
| ASX AU | | ASX Ltd. | | | 592,643 | | | $ | 17,664,677 | |
| X CN | | TMX Group Inc. | | | 124,080 | | | | 3,609,910 | |
| | | | | | | | | | | |
| | | | | | | | | | 21,274,587 | |
| | | | | | | | | | | |
| | | Pharmaceuticals — 1.55% |
| FRX | | Forest Laboratories, Inc.* | | | 120,746 | | | | 3,031,932 | |
| MYL | | Mylan, Inc.*(1) | | | 38,867 | | | | 507,214 | |
| NVO | | Novo-Nordisk A/S — ADR(1) | | | 65,493 | | | | 3,566,749 | |
| PFE | | Pfizer, Inc. | | | 728,514 | | | | 10,927,710 | |
| SNY | | Sanofi-Aventis — ADR(1) | | | 102,332 | | | | 3,017,771 | |
| | | | | | | | | | | |
| | | | | | | | | | 21,051,376 | |
| | | | | | | | | | | |
| | | Publishing — 0.00% |
| RHD | | R.H. Donnelley Corporation*(1) | | | 49,000 | | | | 2,695 | |
| | | | | | | | | | | |
| | | Real Estate — 3.35% |
| 1 HK | | Cheung Kong (Holdings) Limited | | | 1,321,000 | | | | 15,187,141 | |
| 12 HK | | Henderson Land Development Company Limited | | | 3,231,000 | | | | 18,531,229 | |
| 823 HK | | The Link REIT | | | 5,539,000 | | | | 11,821,222 | |
| | | | | | | | | | | |
| | | | | | | | | | 45,539,592 | |
| | | | | | | | | | | |
| | | Real Estate Investment Trusts (REITs) — 0.23% |
| ALX | | Alexander’s, Inc.(1) | | | 6,418 | | | | 1,730,293 | |
| VNO | | Vornado Realty Trust(1) | | | 32,072 | | | | 1,444,202 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,174,495 | |
| | | | | | | | | | | |
| | | Real Estate Management & Development — 1.31% |
| FCE/A | | Forest City Enterprises, Inc. — Class A(1) | | | 1,031,626 | | | | 6,808,731 | |
| 10 HK | | Hang Lung Group Limited | | | 249,000 | | | | 1,172,702 | |
| JOE | | The St. Joe Company*(1) | | | 177,027 | | | | 4,689,445 | |
| 4 HK | | Wharf Holdings Ltd. | | | 1,225,000 | | | | 5,192,386 | |
| | | | | | | | | | | |
| | | | | | | | | | 17,863,264 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
101
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Road & Rail — 4.11% |
| BNI | | Burlington Northern Santa Fe Corp. | | | 275,782 | | | $ | 20,281,008 | |
| CSX | | CSX Corp. | | | 313,571 | | | | 10,858,964 | |
| NSC | | Norfolk Southern Corp. | | | 290,070 | | | | 10,926,937 | |
| UNP | | Union Pacific Corp.(1) | | | 266,384 | | | | 13,867,951 | |
| | | | | | | | | | | |
| | | | | | | | | | 55,934,860 | |
| | | | | | | | | | | |
| | | Software — 0.09% |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | | | 283,000 | | | | 1,202,750 | |
| | | | | | | | | | | |
| | | Thrifts & Mortgage Finance — 0.59% |
| FRE | | Federal Home Loan Mortgage Corporation*(1) | | | 6,978,903 | | | | 4,326,920 | |
| FNM | | Federal National Mortgage Association(1) | | | 6,272,118 | | | | 3,637,828 | |
| | | | | | | | | | | |
| | | | | | | | | | 7,964,748 | |
| | | | | | | | | | | |
| | | Transportation Infrastructure — 3.38% |
| 995 HK | | Anhui Expressway Co. Ltd. — Class H | | | 4,079,000 | | | | 2,305,278 | |
| 694 HK | | Beijing Capital International Airport Company Limited — Class H* | | | 31,460,000 | | | | 22,042,154 | |
| 357 HK | | Hainan Meilan International Airport Company Limited — Class H | | | 3,198,720 | | | | 1,977,003 | |
| 177 HK | | Jiangsu Expressway Company Ltd. — Class H | | | 4,632,500 | | | | 3,401,130 | |
| 548 HK | | Shenzhen Expressway Company Limited — Class H | | | 6,923,000 | | | | 3,296,220 | |
| 107 HK | | Sichuan Expressway Co. Limited — Class H* | | | 18,696,000 | | | | 7,719,589 | |
| 3382 HK | | Tianjin Port Development Holdings Ltd. | | | 1,656,000 | | | | 724,362 | |
| 576 HK | | Zhejiang Expressway Co., Limited — Class H | | | 5,659,000 | | | | 4,490,661 | |
| | | | | | | | | | | |
| | | | | | | | | | 45,956,397 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
102
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | U.S. Equity Exchanges — 3.62% |
| NDAQ | | The Nasdaq OMX Group*(1) | | | 1,332,004 | | | $ | 28,385,005 | |
| NYX | | NYSE Euronext | | | 762,282 | | | | 20,772,185 | |
| | | | | | | | | | | |
| | | | | | �� | | | | 49,157,190 | |
| | | | | | | | | | | |
| | | Utilities — 1.11% |
| 991 HK | | Datang International Power Generation Company Limited — Class H | | | 24,703,000 | | | | 15,044,827 | |
| | | | | | | | | | | |
| | | Wireless Telecommunication Services — 1.14% |
| CHL | | China Mobile Limited — ADR(1) | | | 134,652 | | | | 6,743,372 | |
| CHU | | China Unicom (Hong Kong) Limited — ADR(1) | | | 612,000 | | | | 8,164,080 | |
| 762 HK | | China Unicom Limited | | | 466,000 | | | | 616,920 | |
| | | | | | | | | | | |
| | | | | | | | | | 15,524,372 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS (cost $1,603,494,210) | | | | | | | 1,324,614,562 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
103
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| Identifier | | ESCROW NOTES — 0.00% | | Amount | | | Value | |
| | |
| |
| | | Special Purpose Entity — 0.00% |
| | | Calpine Corporation (converted from Calpine Corp.,
10.500%, 05/15/2015)*+ | | $ | 300,000 | | | $ | 0 | |
| | | Calpine Corporation (converted from Calpine Corp.,
8.750%, 07/15/2008)*+ | | | 200,000 | | | | 0 | |
| | | Calpine Corporation (converted from Calpine Corp.,
8.500%, 02/15/2011)*+ | | | 1,000,000 | | | | 0 | |
| | | Calpine Corporation (converted from Calpine Corp.,
7.875%, 04/01/2008)*+ | | | 200,000 | | | | 0 | |
| | | Calpine Corporation (converted from Calpine Corp.,
7.625%, 04/15/2050)*+ | | | 100,000 | | | | 0 | |
| | | Calpine Corporation (converted from Calpine Corp.,
4.750%, 11/15/2023)*+ | | | 42,200,000 | | | | 4 | |
| | | | | | | | | | | |
| | | TOTAL ESCROW NOTES
(cost $0) | | | | | | | 4 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | CONVERTIBLE BONDS — 0.75% | | | | |
| | |
| |
| | | Real Estate — 0.50% |
| 029169AA7 | | American Real Estate | | | | | | | | |
| | | 4.100%, 08/15/2013 (Acquired 04/25/2007, at $519,745) ˆ | | | 10,000,000 | | | | 6,721,000 | |
| | | | | | | | | | | |
| | | Real Estate Management & Development — 0.25% |
| 345550AH0 | | Forest City Enterprises, Inc.
3.625%, 10/15/2011(1) | | | 4,000,000 | | | | 3,400,000 | |
| | | | | | | | | | | |
| | | TOTAL CONVERTIBLE BONDS
(cost $8,967,523) | | | | | | | 10,121,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
104
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| Identifier | | CORPORATE BONDS — 0.78% | | Amount | | | Value | |
| | |
| |
| | | Diversified Financial Services — 0.05% |
| 317928AA7 | | Finova Group, Inc.
7.500%, 11/15/2009, Acquired
10/19/2006-3/29/2007 at $2,775,288 | | | | | | | | |
| | | (Default Effective 4/29/2005) | | $ | 9,503,880 | | | $ | 736,551 | |
| | | | | | | | | | | |
| | | IT Services — 0.73% |
| 319963AP9 | | First Data Corporation | | | | | | | | |
| | | 9.875%, 09/24/2015 | | | 3,966,000 | | | | 2,815,860 | |
| 867363AH6 | | SunGard Data Systems, Inc. | | | | | | | | |
| | | 9.125%, 08/15/2013 | | | 7,500,000 | | | | 7,087,500 | |
| | | | | | | | | | | |
| | | | | | | | | | 9,903,360 | |
| | | | | | | | | | | |
| | | TOTAL CORPORATE BONDS (cost $17,002,992) | | | | | | | 10,639,911 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM
| | | | | | |
| | | INVESTMENTS — 1.97% | | Shares | | | | |
| | |
| |
| | | Money Market Funds — 1.97% |
| FIUXX | | First American Prime Obligations Fund — Class I | | | 26,721,105 | | | | 26,721,105 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS (cost $26,721,105) | | | | | | | 26,721,105 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
105
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | INVESTMENTS PURCHASED
| | | | | | |
| | | WITH THE CASH PROCEEDS
| | | | | | |
| | | FROM SECURITIES
| | | | | | |
| Identifier | | LENDING — 28.86% | | Shares | | | Value | |
| | |
| |
| | | Investment Companies — 28.86% |
| | | First American Prime Obligations Fund | | | 110,935,000 | | | $ | 110,935,000 | |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 268,438,177 | | | | 268,438,177 | |
| | | JP Morgan Prime Money Market Fund | | | 9,035,479 | | | | 9,035,479 | |
| | | Reserve Primary Fund+ | | | 3,879,174 | | | | 3,879,174 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $392,287,830) | | | | | | | 392,287,830 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 129.82%
(cost $2,048,473,660) | | | | | | $ | 1,764,384,412 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
| |
| ˆ — | Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified, institutional buyers. The aggregate value of such securities is $6,721,000 or 0.49% of net assets. |
| |
| + — | Security is considered illiquid. The aggregate value of such securities is $3,879,178 or 0.29% of net assets. |
| |
| ADR — | American Depository Receipt. |
| GDR — | Global Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Cash collateral for loaned securities totaled $392,287,830 of which $3,879,174 was illiquid. Total loaned securities had a market value of $368,525,822 at June 30, 2009. |
See Notes to the Financial Statements.
106
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 95.87% | | Shares | | | Value | |
| | |
| | | Biotechnology — 29.16% | | | | | | | | |
| AEZS | | AEterna Zentaris Inc.*(1) | | | 102,500 | | | $ | 177,325 | |
| AFFX | | Affymetrix, Inc.* | | | 125,000 | | | | 741,250 | |
| AMRI | | Albany Molecular Research, Inc.* | | | 44,000 | | | | 369,160 | |
| ARNA | | Arena Pharmaceuticals, Inc.*(1) | | | 40,000 | | | | 199,600 | |
| AVXT | | AVAX Technologies, Inc.* | | | 50,000 | | | | 1,245 | |
| AVGN | | Avigen, Inc.* | | | 51,000 | | | | 67,320 | |
| BIIB | | Biogen Idec, Inc.* | | | 29,250 | | | | 1,320,637 | |
| CEGE | | Cell Genesys, Inc.*(1) | | | 73,725 | | | | 21,528 | |
| CBST | | Cubist Pharmaceuticals, Inc.*(1) | | | 20,000 | | | | 366,600 | |
| CRGN | | CuraGen Corporation* | | | 96,000 | | | | 138,240 | |
| DCGN | | deCODE genetics, Inc.*(1) | | | 11,000 | | | | 5,830 | |
| DNDN | | Dendreon Corporation*(1) | | | 29,000 | | | | 720,650 | |
| HGSI | | Human Genome Sciences, Inc.*(1) | | | 21,000 | | | | 60,060 | |
| IMGN | | ImmunoGen, Inc.* | | | 14,000 | | | | 120,540 | |
| ISA CN | | Isotechnika Pharma Inc.* | | | 40,000 | | | | 7,566 | |
| MEDX | | Medarex, Inc.* | | | 31,000 | | | | 258,850 | |
| MBRX | | Metabasis Therapeutics, Inc.* | | | 44,000 | | | | 24,640 | |
| COX FP | | NicOx SA* | | | 20,000 | | �� | | 249,709 | |
| ONTY | | Oncothyreon, Inc.*(1) | | | 15,333 | | | | 57,345 | |
| PGNX | | Progenics Pharmaceuticals, Inc.* | | | 28,200 | | | | 145,230 | |
| SVNT | | Savient Pharmaceuticals Inc.*(1) | | | 25,000 | | | | 346,500 | |
| TGEN | | Targeted Genetics Corp.* | | | 1,000 | | | | 349 | |
| TELK | | Telik, Inc.*(1) | | | 111,000 | | | | 94,239 | |
| VICL | | Vical Incorporated*(1) | | | 69,500 | | | | 188,345 | |
| | | | | | | | | | | |
| | | | | | | | | | 5,682,758 | |
| | | | | | | | | | | |
| | | Chemicals — 0.26% |
| ATB CN | | Atrium Innovations Inc.*(1) | | | 4,884 | | | | 51,269 | |
| | | | | | | | | | | |
| | | Health Care Equipment & Supplies — 0.01% |
| TGX | | Theragenics Corporation* | | | 2,000 | | | | 2,580 | |
| | | | | | | | | | | |
| | | Health Care Providers & Services — 0.03% |
| IBLTZ | | IMPATH Bankruptcy Liquidating Trust — Class A* | | | 26,000 | | | | 6,760 | |
| | | | | | | | | | | |
| | | Health Care Technology — 0.03% |
| MMRF | | MMR Information Systems Inc.*(1) | | | 43,000 | | | | 6,020 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
107
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Medical Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Life Sciences Tools & Services — 12.54% |
| LIFE | | Life Technologies Corporation* | | | 30,000 | | | $ | 1,251,600 | |
| LONN VX | | Lonza Group AG | | | 12,000 | | | | 1,191,662 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,443,262 | |
| | | | | | | | | | | |
| | | Pharmaceuticals — 53.84% |
| ABT | | Abbott Laboratories | | | 19,000 | | | | 893,760 | |
| AGEN | | Antigenics, Inc.*(1) | | | 892 | | | | 1,873 | |
| BMY | | Bristol-Myers Squibb Company(1) | | | 35,000 | | | | 710,850 | |
| 1093 HK | | China Pharmaceutical Group Limited | | | 1,640,000 | | | | 844,330 | |
| LLY | | Eli Lilly & Company(1) | | | 29,000 | | | | 1,004,560 | |
| EPCT | | EpiCept Corporation*(1) | | | 2,039 | | | | 1,590 | |
| GENZ | | Genzyme Corporation*(1) | | | 19,538 | | | | 1,087,681 | |
| GSK | | GlaxoSmithKline plc — ADR(1) | | | 31,673 | | | | 1,119,324 | |
| JNJ | | Johnson & Johnson | | | 23,000 | | | | 1,306,400 | |
| 4508 JP | | Mitsubishi Tanabe Pharma Corporation | | | 19,000 | | | | 218,924 | |
| NVS | | Novartis AG — ADR | | | 29,000 | | | | 1,182,910 | |
| PTIE | | Pain Therapeutics, Inc.* | | | 30,000 | | | | 161,100 | |
| PFE | | Pfizer, Inc. | | | 46,000 | | | | 690,000 | |
| SNY | | Sanofi-Aventis — ADR(1) | | | 28,000 | | | | 825,720 | |
| SCR | | Simcere Pharmaceutical Group — ADR*(1) | | | 51,000 | | | | 444,210 | |
| | | | | | | | | | | |
| | | | | | | | | | 10,493,232 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS (cost $21,751,087) | | | | | | | 18,685,881 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM
| | | | | | |
| | | INVESTMENTS — 3.20% | | | | | | |
| | |
| |
| | | Money Market Funds — 3.20% |
| FIUXX | | First American Prime Obligations Fund — Class I | | | 623,194 | | | | 623,194 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS (cost $623,194) | | | | | | | 623,194 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
108
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Medical Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | INVESTMENTS PURCHASED WITH
| | | | | | |
| | | THE CASH PROCEEDS FROM
| | | | | | |
| Identifier | | SECURITIES LENDING — 31.02% | | Shares | | | Value | |
| | |
| |
| | | Investment Companies — 31.02% |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 6,046,114 | | | $ | 6,046,114 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $6,046,114) | | | | | | | 6,046,114 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 130.09% (cost $28,420,395) | | | | | | $ | 25,355,189 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
| |
| ADR — | American Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Total loaned securities had a market value of $5,681,624 at June 30, 2009. |
See Notes to the Financial Statements.
109
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 93.50% | | Shares | | | Value | |
| | |
| | | Aerospace & Defense — 0.68% | | | | | | | | |
| BBD/B CN | | Bombardier Inc. — Class B | | | 188,000 | | | $ | 557,624 | |
| CAI | | CACI International, Inc. — Class A* | | | 27,200 | | | | 1,161,712 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,719,336 | |
| | | | | | | | | | | |
| | | Airlines — 2.99% |
| CEA | | China Eastern Airlines Corporation Limited — ADR*(1) | | | 44,600 | | | | 1,001,337 | |
| 670 HK | | China Eastern Airlines Corporation Limited — Class H* | | | 5,056,000 | | | | 1,135,146 | |
| ZNH | | China Southern Airlines Company Limited — ADR*(1) | | | 105,000 | | | | 1,467,900 | |
| 1055 HK | | China Southern Airlines Company Limited — Class H* | | | 14,098,000 | | | | 3,911,033 | |
| | | | | | | | | | | |
| | | | | | | | | | 7,515,416 | |
| | | | | | | | | | | |
| | | Asian Exchanges — 2.56% |
| 8697 JP | | Osaka Securities Exchange Co., Ltd. | | | 1,339 | | | | 6,435,428 | |
| | | | | | | | | | | |
| | | Asset Management — 3.27% |
| CNS | | Cohen & Steers, Inc.(1) | | | 127,292 | | | | 1,903,016 | |
| EV | | Eaton Vance Corp.(1) | | | 91,107 | | | | 2,437,112 | |
| PZN | | Pzena Investment Management, Inc. — Class A(1) | | | 156,262 | | | | 1,184,466 | |
| SII CN | | Sprott, Inc. | | | 1,680 | | | | 4,405 | |
| URB/A CN | | Urbana Corp. — Class A* | | | 663,950 | | | | 867,647 | |
| GROW | | US Global Investors, Inc. — Class A(1) | | | 155,800 | | | | 1,442,708 | |
| 806 HK | | Value Partners Group Limited(1) | | | 815,000 | | | | 354,391 | |
| WSDT | | WisdomTree Investments, Inc.*(1) | | | 14,420 | | | | 15,862 | |
| | | | | | | | | | | |
| | | | | | | | | | 8,209,607 | |
| | | | | | | | | | | |
| | | Beverages — 6.74% |
| 168 HK | | Tsingtao Brewery Co. Limited — Class H | | | 5,334,000 | | | | 16,931,039 | |
| | | | | | | | | | | |
| | | Capital Markets — 6.85% |
| JEF | | Jefferies Group, Inc.*(1) | | | 786,700 | | | | 16,780,311 | |
| LAB | | LaBranche & Co. Inc.* | | | 98,045 | | | | 421,593 | |
| SWS | | SWS Group, Inc. | | | 1,000 | | | | 13,970 | |
| | | | | | | | | | | |
| | | | | | | | | | 17,215,874 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
110
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Commercial Banks — 2.16% |
| BMBZF | | BLOM Bank SAL — GDR* | | | 27,000 | | | $ | 1,964,250 | |
| CATY | | Cathay General Bancorp(1) | | | 74,423 | | | | 707,763 | |
| CLFC | | Center Financial Corporation | | | 128,594 | | | | 324,057 | |
| EWBC | | East West Bancorp, Inc. | | | 48,023 | | | | 311,669 | |
| FBOD | | First Bank of Delaware* | | | 121,000 | | | | 151,250 | |
| HAFC | | Hanmi Financial Corporation(1) | | | 161,533 | | | | 282,683 | |
| NARA | | Nara Bancorp, Inc. | | | 129,815 | | | | 672,441 | |
| UCBH | | UCBH Holdings, Inc.(1) | | | 218,100 | | | | 274,806 | |
| WIBC | | Wilshire Bancorp, Inc. | | | 126,700 | | | | 728,525 | |
| | | | | | | | | | | |
| | | | | | | | | | 5,417,444 | |
| | | | | | | | | | | |
| | | Commercial Services & Supplies — 0.74% |
| CDCO | | Comdisco Holding Company, Inc.* | | | 9,000 | | | | 65,700 | |
| PICO | | PICO Holdings, Inc.* | | | 43,600 | | | | 1,251,320 | |
| RBA | | Ritchie Bros. Auctioneers, Incorporated(1) | | | 22,800 | | | | 534,660 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,851,680 | |
| | | | | | | | | | | |
| | | Construction & Engineering — 0.31% |
| PWR | | Quanta Services, Inc.* | | | 33,900 | | | | 784,107 | |
| | | | | | | | | | | |
| | | Diversified Consumer Services — 0.77% |
| BID | | Sotheby’s(1) | | | 137,400 | | | | 1,938,714 | |
| | | | | | | | | | | |
| | | Diversified Financial Services — 5.26% |
| CLE LN | | Climate Exchange PLC* | | | 74,755 | | | | 1,053,381 | |
| ICE | | IntercontinentalExchange Inc.*(1) | | | 33,189 | | | | 3,791,511 | |
| OCX CN | | Onex Corporation | | | 37,100 | | | | 637,923 | |
| RHJI BB | | RHJ International* | | | 800 | | | | 5,107 | |
| TPL | | Texas Pacific Land Trust | | | 234,300 | | | | 7,731,900 | |
| | | | | | | | | | | |
| | | | | | | | | | 13,219,822 | |
| | | | | | | | | | | |
| | | Diversified Telecommunication Services — 0.02% |
| 2267781Z | | CIBL Inc.* | | | 18 | | | | 4,536 | |
| LICT | | Lynch Interactive Corporation* | | | 18 | | | | 52,200 | |
| | | | | | | | | | | |
| | | | | | | | | | 56,736 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
111
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Electric Utilities — 0.86% |
| 1071 HK | | Huadian Power International Corporation — Class H | | | 1,198,000 | | | $ | 377,174 | |
| NVE | | NV Energy, Inc. | | | 164,800 | | | | 1,778,192 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,155,366 | |
| | | | | | | | | | | |
| | | Energy — 0.77% |
| SEMUF | | Siem Industries Inc.* | | | 43,450 | | | | 1,933,525 | |
| | | | | | | | | | | |
| | | Energy Equipment & Services — 0.14% |
| 2883 HK | | China Oilfield Services Limited — Class H | | | 315,000 | | | | 341,824 | |
| | | | | | | | | | | |
| | | Gas Utilities — 0.47% |
| SUG | | Southern Union Company | | | 63,801 | | | | 1,173,291 | |
| | | | | | | | | | | |
| | | Global Exchanges — 6.13% |
| JSE SJ | | JSE Limited | | | 603,800 | | | | 3,796,824 | |
| SGX SP | | Singapore Exchange Limited | | | 2,369,475 | | | | 11,615,074 | |
| | | | | | | | | | | |
| | | | | | | | | | 15,411,898 | |
| | | | | | | | | | | |
| | | Holding Company — 0.52% |
| BNB CN | | BAM Investments Ltd.* | | | 170,800 | | | | 1,316,444 | |
| | | | | | | | | | | |
| | | Hotels, Restaurants & Leisure — 1.12% |
| 200 HK | | Melco International Development Limited* | | | 2,988,000 | | | | 1,642,425 | |
| WEN | | Wendy’s/Arby’s Group, Inc. — Class A | | | 295,150 | | | | 1,180,600 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,823,025 | |
| | | | | | | | | | | |
| | | Household Durables — 8.18% |
| IEP | | Icahn Enterprises LP | | | 408,500 | | | | 16,021,370 | |
| JAH | | Jarden Corporation* | | | 242,500 | | | | 4,546,875 | |
| | | | | | | | | | | |
| | | | | | | | | | 20,568,245 | |
| | | | | | | | | | | |
| | | Independent Power Producers & Energy Traders — 4.57% |
| CPN | | Calpine Corporation*(1) | | | 450,000 | | | | 5,017,500 | |
| DYN | | Dynegy, Inc. — Class A* | | | 109,300 | | | | 248,111 | |
| RRI | | RRI Energy, Inc.* | | | 1,243,900 | | | | 6,231,939 | |
| | | | | | | | | | | |
| | | | | | | | | | 11,497,550 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
112
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Industrial Conglomerates — 0.26% |
| Y | | Alleghany Corporation* | | | 2,450 | | | $ | 663,950 | |
| | | | | | | | | | | |
| | | Insurance — 3.76% |
| ABK | | Ambac Financial Group, Inc.(1) | | | 376,786 | | | | 346,643 | |
| CVA | | Covanta Holding Corporation*(1) | | | 375,100 | | | | 6,361,696 | |
| MBI | | MBIA Inc.*(1) | | | 554,893 | | | | 2,402,687 | |
| WSC | | Wesco Financial Corporation | | | 1,145 | | | | 333,195 | |
| | | | | | | | | | | |
| | | | | | | | | | 9,444,221 | |
| | | | | | | | | | | |
| | | IT Services — 0.51% |
| BR | | Broadridge Financial Solutions Inc. | | | 2,468 | | | | 40,919 | |
| MANT | | ManTech International Corporation — Class A* | | | 29,100 | | | | 1,252,464 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,293,383 | |
| | | | | | | | | | | |
| | | Media — 5.89% |
| DWA | | DreamWorks Animation SKG, Inc. — Class A* | | | 237,600 | | | | 6,555,384 | |
| IAR | | Idearc Inc.*(1) | | | 1,317,000 | | | | 48,861 | |
| WMG | | Warner Music Group Corp.*(1) | | | 1,402,200 | | | | 8,202,870 | |
| | | | | | | | | | | |
| | | | | | | | | | 14,807,115 | |
| | | | | | | | | | | |
| | | Metals & Mining — 6.03% |
| FMG AU | | Fortescue Metals Group Ltd.* | | | 1,062,300 | | | | 3,244,252 | |
| FNV CN | | Franco-Nevada Corporation | | | 283,946 | | | | 6,825,543 | |
| IMN CN | | Inmet Mining Corporation | | | 118,400 | | | | 4,343,488 | |
| 1171 HK | | Yanzhou Coal Mining Company Limited — Class H | | | 541,000 | | | | 744,132 | |
| | | | | | | | | | | |
| | | | | | | | | | 15,157,415 | |
| | | | | | | | | | | |
| | | Multi-Utilities — 0.47% |
| CMS | | CMS Energy Corporation(1) | | | 97,000 | | | | 1,171,760 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
113
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Oil, Gas & Consumable Fuels — 2.51% |
| BLMC | | Biloxi Marsh Lands Corporation | | | 100 | | | $ | 1,166 | |
| 1898 HK | | China Coal Energy Company — Class H | | | 864,000 | | | | 1,023,415 | |
| 1088 HK | | China Shenhua Energy Company Limited — Class H | | | 85,000 | | | | 313,127 | |
| 135 HK | | CNPC Hong Kong Limited | | | 2,629,000 | | | | 2,171,031 | |
| KEWL | | Keweenaw Land Association Ltd. | | | 290 | | | | 56,985 | |
| NEGI | | National Energy Group, Inc.* | | | 306,600 | | | | 1,165,080 | |
| PVG | | Penn Virginia GP Holdings LP(1) | | | 61,400 | | | | 777,324 | |
| UTS CN | | UTS Energy Corporation* | | | 582,000 | | | | 785,574 | |
| | | | | | | | | | | |
| | | | | | | | | | 6,293,702 | |
| | | | | | | | | | | |
| | | Other Exchanges — 0.32% |
| NZX NZ | | NZX Ltd.* | | | 172,800 | | | | 802,731 | |
| | | | | | | | | | | |
| | | Pharmaceuticals — 0.35% |
| 1093 HK | | China Pharmaceutical Group Limited | | | 1,657,000 | | | | 853,082 | |
| | | | | | | | | | | |
| | | Publishing — 0.18% |
| RHD | | R.H. Donnelley Corporation*(1) | | | 1,356,700 | | | | 74,618 | |
| VALU | | Value Line, Inc. | | | 11,510 | | | | 378,334 | |
| | | | | | | | | | | |
| | | | | | | | | | 452,952 | |
| | | | | | | | | | | |
| | | Real Estate — 2.79% |
| 823 HK | | The Link REIT | | | 3,291,000 | | | | 7,023,586 | |
| | | | | | | | | | | |
| | | Real Estate Investment Trusts (REITs) — 1.06% |
| ALX | | Alexander’s, Inc. | | | 9,877 | | | | 2,662,839 | |
| | | | | | | | | | | |
| | | Road & Rail — 0.01% |
| 525 HK | | Guangshen Railway Company Limited — Class H | | | 65,000 | | | | 30,697 | |
| | | | | | | | | | | |
| | | Software — 1.25% |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | | | 292,000 | | | | 1,241,000 | |
| MVSN | | Macrovision Solutions Corporation*(1) | | | 87,300 | | | | 1,904,013 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,145,013 | |
| | | | | | | | | | | |
| | | State Commercial Banks — 0.10% |
| PFBC | | Preferred Bank Los Angeles(1) | | | 67,950 | | | | 258,210 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
114
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Transportation Infrastructure — 9.65% |
| 694 HK | | Beijing Capital International Airport Company Limited — Class H* | | | 13,944,000 | | | $ | 9,769,733 | |
| 357 HK | | Hainan Meilan International Airport Company Limited — Class H | | | 4,883,000 | | | | 3,017,990 | |
| 548 HK | | Shenzhen Expressway Company Limited — Class H | | | 808,000 | | | | 384,710 | |
| 107 HK | | Sichuan Expressway Co. Limited — Class H* | | | 24,830,100 | | | | 10,252,362 | |
| 3382 HK | | Tianjin Port Development Holdings Ltd. | | | 671,000 | | | | 293,506 | |
| 576 HK | | Zhejiang Expressway Co. Limited — Class H | | | 677,000 | | | | 537,229 | |
| | | | | | | | | | | |
| | | | | | | | | | 24,255,530 | |
| | | | | | | | | | | |
| | | U.S. Equity Exchanges — 1.00% |
| NDAQ | | The Nasdaq OMX Group* | | | 117,800 | | | | 2,510,318 | |
| | | | | | | | | | | |
| | | Utilities — 2.25% |
| 991 HK | | Datang International Power Generation Company Limited — Class H | | | 9,266,000 | | | | 5,643,257 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS
(cost $274,435,098) | | | | | | | 234,986,132 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| | | ESCROW NOTES — 0.00% | | Amount | | | | |
| | |
| |
| | | Special Purpose Entity — 0.00% |
| | | Calpine Corporation (converted from Calpine Corp.,
4.750%, 11/15/2023)*+ | | $ | 14,400,000 | | | | 2 | |
| | | | | | | | | | | |
| | | TOTAL ESCROW NOTES
(cost $0) | | | | | | | 2 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
115
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| Identifier | | CORPORATE BONDS — 0.09% | | Amount | | | Value | |
| | |
| |
| | | Diversified Financial Services — 0.09% |
| 317928AA7 | | FINOVA Group, Inc.
7.500%, 11/15/2009, Acquired on
10/19/2006-5/17/2007 at $741,082
(Default Effective 4/29/2005) | | $ | 2,783,965 | | | $ | 215,757 | |
| | | | | | | | | | | |
| | | TOTAL CORPORATE BONDS
(cost $1,513,648) | | | | | | | 215,757 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | RIGHTS — 0.36% | | Shares | | | | |
| | |
| |
| | | Commercial Banks — 0.00% |
| 7403671RT | | Preferred Bank Los Angeles+ | | | 67,950 | | | | 0 | |
| | | | | | | | | | | |
| | | Commercial Services & Supplies — 0.36% |
| CDCOR | | Comdisco Holding Company, Inc. Expiration Date 12/31/2050,
Strike Price $1.00# | | | 8,516,200 | | | | 912,085 | |
| | | | | | | | | | | |
| | | TOTAL RIGHTS
(cost $2,625,972) | | | | | | | 912,085 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM
| | | | | | |
| | | INVESTMENTS — 5.71% | | | | | | |
| | |
| |
| | | Money Market Funds — 5.71% |
| FIUXX | | First American Prime Obligations Fund — Class I | | | 8,489,390 | | | | 8,489,390 | |
| FAIXX | | First American Prime Obligations Fund — Class Y | | | 5,859,158 | | | | 5,859,158 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS (cost $14,348,548) | | | | | | | 14,348,548 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
116
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| | | INVESTMENTS PURCHASED
| | | | | | |
| | | WITH THE CASH PROCEEDS
| | | | | | |
| | | FROM SECURITIES
| | | | | | |
| Identifier | | LENDING — 15.72% | | Shares | | | Value | |
| | |
| |
| | | Investment Companies — 15.72% |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 39,503,267 | | | $ | 39,503,267 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING
(cost $39,503,267) | | | | | | | 39,503,267 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 115.38% (cost $332,426,533) | | | | | | $ | 289,965,791 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
| # — | Contingent value right (contingent upon profitability of company). |
| |
| + — | Security is considered illiquid. The aggregate value of such securities is $2 or 0.00% of net assets. |
| |
| ADR — | American Depository Receipt. |
| GDR — | Global Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Total loaned securities had a market value of $35,318,791 at June 30, 2009. |
See Notes to the Financial Statements.
117
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| Identifier | | SHORT-TERM INVESTMENTS — 100.30% | | Amount | | | Value | |
| | |
| |
| | | US Government Agency Issues — 100.30% |
| 313385JS5 | | Federal Home Loan Bank Discount Note 0.030%, 07/28/2009 | | $ | 1,900,000 | | | $ | 1,899,957 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS (cost $1,899,957) | | | | | | | 1,899,957 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 100.30%
(cost $1,899,957) | | | | | | $ | 1,899,957 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
See Notes to the Financial Statements.
118
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 98.10% | | Shares | | | Value | |
| | |
| | | Asian Exchanges — 1.34% | | | | | | | | |
| 8697 JP | | Osaka Securities Exchange Co., Ltd. | | | 170 | | | $ | 817,045 | |
| | | | | | | | | | | |
| | | Asset Management — 16.66% |
| AB | | AllianceBernstein Holding LP(1) | | | 9,701 | | | | 194,893 | |
| BLK | | BlackRock, Inc.(1) | | | 6,809 | | | | 1,194,435 | |
| BX | | The Blackstone Group LP(1) | | | 75,656 | | | | 797,414 | |
| BAM | | Brookfield Asset Management Inc. — Class A | | | 46,320 | | | | 790,682 | |
| CNS | | Cohen & Steers, Inc.(1) | | | 51,048 | | | | 763,168 | |
| EV | | Eaton Vance Corp.(1) | | | 33,968 | | | | 908,644 | |
| BEN | | Franklin Resources, Inc. | | | 1,702 | | | | 122,561 | |
| LM | | Legg Mason, Inc. | | | 45,355 | | | | 1,105,755 | |
| POW CN | | Power Corporation of Canada | | | 45,355 | | | | 1,046,579 | |
| PZN | | Pzena Investment Management, Inc. — Class A(1) | | | 183,471 | | | | 1,390,710 | |
| SII CN | | Sprott, Inc. | | | 46,320 | | | | 121,460 | |
| TROW | | T. Rowe Price Group, Inc.(1) | | | 6,610 | | | | 275,439 | |
| URB/A CN | | Urbana Corp. — Class A* | | | 378,280 | | | | 494,335 | |
| GROW | | US Global Investors, Inc. — Class A(1) | | | 39,565 | | | | 366,372 | |
| 806 HK | | Value Partners Group Limited | | | 1,351,000 | | | | 587,463 | |
| WSDT | | WisdomTree Investments, Inc.*(1) | | | 11,580 | | | | 12,738 | |
| | | | | | | | | | | |
| | | | | | | | | | 10,172,648 | |
| | | | | | | | | | | |
| | | Capital Markets — 13.28% |
| BK | | The Bank of New York Mellon Corp. | | | 31,315 | | | | 917,843 | |
| GFIG | | GFI Group, Inc. | | | 1,737 | | | | 11,707 | |
| JEF | | Jefferies Group, Inc.(1) | | | 224,845 | | | | 4,795,944 | |
| LAB | | LaBranche & Co. Inc.* | | | 141,855 | | | | 609,976 | |
| NTRS | | Northern Trust Corp. | | | 16,984 | | | | 911,701 | |
| RMG | | Riskmetrics Group Inc.*(1) | | | 5,954 | | | | 105,148 | |
| STT | | State Street Corporation | | | 15,336 | | | | 723,859 | |
| TLPR LN | | Tullett Prebon plc | | | 5,790 | | | | 28,196 | |
| | | | | | | | | | | |
| | | | | | | | | | 8,104,374 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
119
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Commercial Banks — 7.08% |
| 3988 HK | | Bank of China Ltd. — Class H | | | 1,891,000 | | | $ | 900,354 | |
| CATY | | Cathay General Bancorp(1) | | | 3,377 | | | | 32,115 | |
| CLFC | | Center Financial Corporation | | | 5,674 | | | | 14,298 | |
| 939 HK | | China Construction Bank Corp. — Class H | | | 2,073,000 | | | | 1,607,568 | |
| EWBC | | East West Bancorp, Inc. | | | 3,377 | | | | 21,917 | |
| HAFC | | Hanmi Financial Corporation(1) | | | 6,417 | | | | 11,230 | |
| 1398 HK | | Industrial & Commercial Bank of China — Class H | | | 2,372,000 | | | | 1,652,738 | |
| NARA | | Nara Bancorp, Inc. | | | 6,620 | | | | 34,291 | |
| UCBH | | UCBH Holdings, Inc.(1) | | | 6,803 | | | | 8,572 | |
| WIBC | | Wilshire Bancorp, Inc. | | | 6,803 | | | | 39,117 | |
| | | | | | | | | | | |
| | | | | | | | | | 4,322,200 | |
| | | | | | | | | | | |
| | | Diversified Consumer Services — 1.05% |
| BID | | Sotheby’s(1) | | | 45,355 | | | | 639,959 | |
| | | | | | | | | | | |
| | | Diversified Financial Services — 12.16% |
| CLE LN | | Climate Exchange PLC* | | | 51,145 | | | | 720,690 | |
| CME | | CME Group, Inc. | | | 7,852 | | | | 2,442,836 | |
| IBKR | | Interactive Brokers Group, Inc. — Class A* | | | 3,474 | | | | 53,951 | |
| ICE | | IntercontinentalExchange Inc.*(1) | | | 26,537 | | | | 3,031,587 | |
| LSE LN | | London Stock Exchange Group plc | | | 22,677 | | | | 262,090 | |
| MXB | | MSCI Inc. — Class A* | | | 16,894 | | | | 412,889 | |
| OCX CN | | Onex Corporation | | | 28,950 | | | | 497,786 | |
| | | | | | | | | | | |
| | | | | | | | | | 7,421,829 | |
| | | | | | | | | | | |
| | | Electric Utilities — 0.06% |
| BIP | | Brookfield Infrastucture Partners LP | | | 3,025 | | | | 37,298 | |
| | | | | | | | | | | |
| | | European Exchanges — 1.43% |
| DB1 GR | | Deutsche Boerse AG | | | 11,262 | | | | 873,369 | |
| | | | | | | | | | | |
| | | Finance/Banks — 0.03% | | | | | | | | |
| GHQ | | GHL Acquisition Corporation* | | | 1,737 | | | | 16,970 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
120
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Global Exchanges — 9.54% |
| 388 HK | | Hong Kong Exchanges & Clearing Limited | | | 191,850 | | | $ | 2,987,890 | |
| JSE SJ | | JSE Limited | | | 169,840 | | | | 1,067,991 | |
| SGX SP | | Singapore Exchange Limited | | | 360,495 | | | | 1,767,132 | |
| | | | | | | | | | | |
| | | | | | | | | | 5,823,013 | |
| | | | | | | | | | | |
| | | Holding Company — 2.33% |
| BNB CN | | BAM Investments Ltd.* | | | 33,000 | | | | 254,348 | |
| BRK/A | | Berkshire Hathaway Inc. — Class A* | | | 13 | | | | 1,170,000 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,424,348 | |
| | | | | | | | | | | |
| | | Household Durables — 1.46% |
| IEP | | Icahn Enterprises LP | | | 22,697 | | | | 890,176 | |
| | | | | | | | | | | |
| | | Insurance — 7.98% |
| ABK | | Ambac Financial Group, Inc.(1) | | | 18,914 | | | | 17,401 | |
| LFC | | China Life Insurance Co., Limited — ADR(1) | | | 33,980 | | | | 1,883,851 | |
| 2628 HK | | China Life Insurance Co., Limited — Class H | | | 148,000 | | | | 544,255 | |
| MKL | | Markel Corporation* | | | 714 | | | | 201,134 | |
| MBI | | MBIA Inc.*(1) | | | 117,923 | | | | 510,607 | |
| 2318 HK | | Ping An Insurance Group Company of China Limited — Class H | | | 253,500 | | | | 1,715,611 | |
| | | | | | | | | | | |
| | | | | | | | | | 4,872,859 | |
| | | | | | | | | | | |
| | | IT Services — 5.95% |
| BR | | Broadridge Financial Solutions Inc.(1) | | | 68,032 | | | | 1,127,970 | |
| DST | | DST Systems, Inc.* | | | 5,380 | | | | 198,791 | |
| FISV | | Fiserv, Inc.* | | | 3,860 | | | | 176,402 | |
| MA | | Mastercard, Inc. — Class A | | | 6,996 | | | | 1,170,501 | |
| V | | Visa, Inc. — Class A(1) | | | 15,392 | | | | 958,306 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,631,970 | |
| | | | | | | | | | | |
| | | Metals & Mining — 6.84% |
| FNV CN | | Franco-Nevada Corporation | | | 173,700 | | | | 4,175,431 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
121
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Other Exchanges — 2.80% |
| ASX AU | | ASX Ltd. | | | 49,649 | | | $ | 1,479,868 | |
| IMAREX NO | | IMAREX ASA* | | | 1,930 | | | | 17,934 | |
| NZX NZ | | NZX Ltd.* | | | 45,863 | | | | 213,053 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,710,855 | |
| | | | | | | | | | | |
| | | Software — 0.97% |
| FTIS LI | | Financial Technologies (India) Ltd. — GDR | | | 139,611 | | | | 593,347 | |
| | | | | | | | | | | |
| | | State Commercial Banks — 0.02% |
| PFBC | | Preferred Bank Los Angeles(1) | | | 2,605 | | | | 9,899 | |
| | | | | | | | | | | |
| | | Thrifts & Mortgage Finance — 0.93% |
| FRE | | Federal Home Loan Mortgage Corporation*(1) | | | 472,850 | | | | 293,167 | |
| FNM | | Federal National Mortgage Association(1) | | | 472,850 | | | | 274,253 | |
| | | | | | | | | | | |
| | | | | | | | | | 567,420 | |
| | | | | | | | | | | |
| | | Transportation Infrastructure — 0.23% |
| 995 HK | | Anhui Expressway Co. Ltd. — Class H | | | 58,000 | | | | 32,779 | |
| 177 HK | | Jiangsu Expressway Company Ltd. — Class H | | | 29,000 | | | | 21,292 | |
| 548 HK | | Shenzhen Expressway Company Limited — Class H | | | 25,000 | | | | 11,903 | |
| 107 HK | | Sichuan Expressway Co. Limited — Class H* | | | 122,000 | | | | 50,374 | |
| 576 HK | | Zhejiang Expressway Co., Ltd. — Class H | | | 35,000 | | | | 27,774 | |
| | | | | | | | | | | |
| | | | | | | | | | 144,122 | |
| | | | | | | | | | | |
| | | U.S. Equity Exchanges — 5.96% |
| NDAQ | | The Nasdaq OMX Group* | | | 47,285 | | | | 1,007,643 | |
| NYX | | NYSE Euronext | | | 96,500 | | | | 2,629,625 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,637,268 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS (cost $68,631,627) | | | | | | | 59,886,400 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
122
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | RIGHTS — 0.00% | | Shares | | | Value | |
| | |
| |
| | | Commercial Banks — 0.00% |
| 7403671RT | | Preferred Bank Los Angeles+ | | | 2,605 | | | $ | 0 | |
| | | | | | | | | | | |
| | | TOTAL RIGHTS (cost $0) | | | | | | | 0 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM
| | | | | | |
| | | INVESTMENTS — 1.12% | | | | | | |
| | |
| |
| | | Money Market Funds — 1.12% |
| FIUXX | | First American Prime Obligations Fund — Class I@ | | | 683,390 | | | | 683,390 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS
(cost $683,390) | | | | | | | 683,390 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | INVESTMENTS PURCHASED WITH
| | | | | | |
| | | THE CASH PROCEEDS FROM
| | | | | | |
| | | SECURITIES LENDING — 29.21% | | | | | | |
| | |
| |
| | | Investment Companies — 29.21% |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 17,829,171 | | | | 17,829,171 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $17,829,171) | | | | | | | 17,829,171 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 128.43%
(cost $87,144,188) | | | | | | $ | 78,398,961 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
| |
| @ — | All or a portion of the shares have been committed as collateral for written option contracts. |
| + — | Security is considered illiquid. The aggregate value of such securities is $0 or 0.00% of net assets. |
| |
| ADR — | American Depository Receipt. |
| GDR — | Global Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Total loaned securities had a market value of $16,529,909 at June 30, 2009. |
See Notes to the Financial Statements.
123
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | COMMON STOCKS — 73.93% | | Shares | | | Value | |
| | |
| | | Building Materials — 1.21% | | | | | | | | |
| SPIP SP | | Sinopipe Holdings Limited* | | | 2,000,000 | | | $ | 193,317 | |
| | | | | | | | | | | |
| | | Building Products — 4.72% |
| GEBN VX | | Geberit AG | | | 6,108 | | | | 751,027 | |
| | | | | | | | | | | |
| | | Building Supplies — 4.06% |
| SOLK GA | | Corinth Pipeworks SA* | | | 100,000 | | | | 294,600 | |
| NWPX | | Northwest Pipe Company* | | | 8,000 | | | | 278,080 | |
| PAP TB | | Pacific Pipe Public Company Limited | | | 2,286,500 | | | | 73,152 | |
| | | | | | | | | | | |
| | | | | | | | | | 645,832 | |
| | | | | | | | | | | |
| | | Chemicals — 0.65% |
| HWKN | | Hawkins, Inc. | | | 1,600 | | | | 36,128 | |
| YARIY | | Yara International ASA — ADR | | | 2,400 | | | | 67,117 | |
| | | | | | | | | | | |
| | | | | | | | | | 103,245 | |
| | | | | | | | | | | |
| | | Commercial Services & Supplies — 2.05% |
| AENV SP | | Asia Environment Holdings Limited | | | 310,000 | | | | 41,736 | |
| LAYN | | Layne Christensen Company* | | | 7,750 | | | | 158,487 | |
| SINO SP | | Sinomem Technology Limited* | | | 850,000 | | | | 126,174 | |
| | | | | | | | | | | |
| | | | | | | | | | 326,397 | |
| | | | | | | | | | | |
| | | Construction & Engineering — 7.22% |
| ACM | | Aecom Technology Corp.* | | | 5,000 | | | | 160,000 | |
| URS | | URS Corp.* | | | 20,000 | | | | 990,400 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,150,400 | |
| | | | | | | | | | | |
| | | Electric Utilities — 2.07% |
| EDE | | The Empire District Electric Co.(1) | | | 20,000 | | | | 330,400 | |
| | | | | | | | | | | |
| | | Electronic Equipment, Instruments & Components — 2.77% | | | | | | | | |
| ITRI | | Itron, Inc.* | | | 8,000 | | | | 440,560 | |
| | | | | | | | | | | |
| | | Gas Utilities — 1.45% |
| GSZ FP | | GDF Suez | | | 6,205 | | | | 231,007 | |
| | | | | | | | | | | |
| | | Household Durables — 0.43% |
| 6485 JP | | Maezawa Kyuso Industries Co. Ltd. | | | 4,500 | | | | 68,994 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
124
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| | | Independent Power Producers & Energy Traders — 0.69% | | | | | | | | |
| GLH-U CN | | Great Lakes Hydro Income Fund | | | 8,000 | | | $ | 109,840 | |
| | | | | | | | | | | |
| | | Machinery — 14.46% |
| ARF-U CN | | Armtec Infrastructure Income Fund | | | 20,000 | | | | 304,690 | |
| ERII | | Energy Recovery Inc.*(1) | | | 20,000 | | | | 141,600 | |
| ESE | | ESCO Technologies, Inc.* | | | 5,000 | | | | 224,000 | |
| FLOW | | Flow International Corporation*(1) | | | 40,000 | | | | 94,000 | |
| LNN | | Lindsay Corporation(1) | | | 20,000 | | | | 662,000 | |
| MPR | | Met-Pro Corporation(1) | | | 39,800 | | | | 430,636 | |
| MWA | | Mueller Water Products, Inc. — Class A | | | 80,100 | | | | 299,574 | |
| 840 HK | | Xinjiang Tianye Water Saving Irrigation System Co. Ltd. — Class H* | | | 1,430,000 | | | | 145,767 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,302,267 | |
| | | | | | | | | | | |
| | | Multi-Utilities — 7.44% |
| ACE IM | | ACEA S.P.A | | | 50,000 | | | | 609,542 | |
| VE | | Veolia Environnement — ADR | | | 19,500 | | | | 576,030 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,185,572 | |
| | | | | | | | | | | |
| | | Water Utilities — 24.71% |
| AWR | | American States Water Company | | | 6,200 | | | | 214,768 | |
| AWK | | American Water Works Co., Inc. | | | 10,000 | | | | 191,100 | |
| WTR | | Aqua America, Inc.(1) | | | 16,700 | | | | 298,930 | |
| ARTNA | | Artesian Resources Corp. — Class A(1) | | | 20,610 | | | | 328,317 | |
| HOO | | Cascal N.V. | | | 50,000 | | | | 187,500 | |
| CTWS | | Connecticut Water Service, Inc.(1) | | | 21,206 | | | | 459,958 | |
| 270 HK | | Guangdong Investment Limited | | | 1,000,000 | | | | 492,900 | |
| MWC PM | | Manila Water Company | | | 1,050,000 | | | | 316,364 | |
| MSEX | | Middlesex Water Co. | | | 20,000 | | | | 289,000 | |
| NWG LN | | Northumbrian Water Group Plc | | | 90,200 | | | | 367,282 | |
| SVT LN | | Severn Trent plc | | | 13,000 | | | | 233,980 | |
| SWWC | | Southwest Water Company | | | 20,000 | | | | 110,400 | |
| EYAPS GA | | Thessaloniki Water Supply & Sewage Co. SA | | | 10,000 | | | | 98,060 | |
See Notes to the Financial Statements.
125
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| YORW | | York Water Company(1) | | | 22,611 | | | $ | 346,626 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,935,185 | |
| | | | | | | | | | | |
| | | TOTAL COMMON STOCKS
(cost $13,231,718) | | | | | | | 11,774,043 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | SHORT-TERM
| | | | | | |
| | | INVESTMENTS — 22.05% | | | | | | |
| | |
| |
| | | Money Market Funds — 22.05% |
| FGVXX | | First American Government Obligations Fund — Class Y | | | 730,000 | | | | 730,000 | |
| FIUXX | | First American Prime Obligations Fund — Class I | | | 751,334 | | | | 751,334 | |
| FAIXX | | First American Prime Obligations Fund — Class Y | | | 736,549 | | | | 736,549 | |
| FFCXX | | First American Tax Free Obligations Fund — Class Y | | | 522,633 | | | | 522,633 | |
| FOCXX | | First American Treasury Obligations Fund — Class Y | | | 770,299 | | | | 770,299 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS
(cost $3,510,815) | | | | | | | 3,510,815 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING — 12.00% | | | | | | |
| | |
| |
| | | Investment Companies — 12.00% |
| | | Mount Vernon Securities Lending Trust — Prime Portfolio | | | 1,911,452 | | | | 1,911,452 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $1,911,452) | | | | | | | 1,911,452 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 107.98% (cost $18,653,985) | | | | | | $ | 17,196,310 | |
| | | | | | | | | | | |
Percentages are stated as a percent of net assets.
| |
| * — | Non-income producing security. |
| |
| ADR — | American Depository Receipt. |
| |
| (1) — | This security or a portion of this security was out on loan at June 30, 2009. Total loaned securities had a market value of $1,814,349 at June 30, 2009. |
See Notes to the Financial Statements.
126
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Investments — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| | | | | Principal
| | | | |
| Identifier | | CONVERTIBLE BONDS — 44.84% | | Amount | | | Value | |
| | |
| |
| | | Computer and Electronic Product Manufacturing — 9.56% | | | | | | | | |
| 502413AW7 | | L-3 Communications Holdings, Inc. | | | | | | | | |
| | | 3.000%, 08/01/2035@ | | $ | 100,000 | | | $ | 96,625 | |
| | | | | | | | | | | |
| | | Diversified Financial Services — 8.16% |
| 631103AA6 | | The Nasdaq OMX Group | | | | | | | | |
| | | 2.500%, 08/15/2013@ | | | 100,000 | | | | 82,500 | |
| | | | | | | | | | | |
| | | Funds, Trusts, and Other Financial Vehicles — 8.71% | | | | | | | | |
| 10112RAK0 | | Boston Properties LP | | | | | | | | |
| | | 2.875%, 02/15/2037@ | | | 100,000 | | | | 88,125 | |
| | | | | | | | | | | |
| | | Real Estate Investment Trusts (REITs) — 18.41% |
| 929043AE7 | | Vornado Realty Trust | | | | | | | | |
| | | 3.625%, 11/15/2026@ | | | 100,000 | | | | 91,000 | |
| 939653AK7 | | Washington Real Estate Investment Trust | | | | | | | | |
| | | 3.875%, 09/15/2026@ | | | 100,000 | | | | 95,125 | |
| | | | | | | | | | | |
| | | | | | | | | | 186,125 | |
| | | | | | | | | | | |
| | | TOTAL CONVERTIBLE BONDS
(cost $454,545) | | | | | | | 453,375 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | CALL OPTIONS PURCHASED — 0.09% | | Contracts | | | | |
| | |
| |
| | | Aerospace and Defense — 0.09% |
| OOY.MV | | L-3 Communications Holdings, Inc. Expiration: January 2011, Exercise Price: $25.00 | | | 18 | | | | 900 | |
| | | | | | | | | | | |
| | | TOTAL CALL OPTIONS PURCHASED (cost $1,224) | | | | | | | 900 | |
| | | | | | | | | | | |
| | | |
| | | SHORT-TERM
| | Principal
| | | | |
| | | INVESTMENTS — 34.94% | | Amount | | | | |
| | |
| |
| | | US Government Agency Issues — 15.33% |
| 313385JS5 | | Federal Home Loan Bank Discount Note
0.030%, 07/28/2009@ | | $ | 155,000 | | | | 154,996 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
127
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Investments — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Shares | | | Value | |
| | |
| |
| | | Money Market Funds — 19.61% | | | | | | | | |
| FGVXX | | First American Government Obligations Fund — Class Y@ | | | 40,000 | | | $ | 40,000 | |
| FIUXX | | First American Prime Obligations Fund — Class I@ | | | 39,348 | | | | 39,348 | |
| FAIXX | | First American Prime Obligations Fund — Class Y@ | | | 40,018 | | | | 40,018 | |
| FFCXX | | First American Tax Free Obligations Fund — Class Y@ | | | 39,990 | | | | 39,990 | |
| FOCXX | | First American Treasury Obligations Fund — Class Y@ | | | 38,865 | | | | 38,865 | |
| | | | | | | | | | | |
| | | | | | | | | | 198,221 | |
| | | | | | | | | | | |
| | | TOTAL SHORT-TERM INVESTMENTS
(cost $353,217) | | | | | | | 353,217 | |
| | | | | | | | | | | |
| | | TOTAL INVESTMENTS — 79.87% (cost $808,986) | | | | | | $ | 807,492 | |
| | | | | | | | | | | |
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.
See Notes to the Financial Statements.
128
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Options Written — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | PUT OPTIONS WRITTEN | | Contracts | | | Value | |
| | |
| LEC.MY | | CME Group, Inc. | | | | | | | | |
| | | Expiration: January 2010, | | | | | | | | |
| | | Exercise Price: $400.00 | | | 40 | | | $ | 407,800 | |
| | | | | | | | | | | |
| | | TOTAL PUT OPTIONS WRITTEN
(premiums received $361,078) | | | | | | $ | 407,800 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
129
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Options Written — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | PUT OPTIONS WRITTEN | | Contracts | | | Value | |
| | |
| LEC.MY | | CME Group, Inc. | | | | | | | | |
| | | Expiration: January 2010, | | | | | | | | |
| | | Exercise Price: $400.00 | | | 20 | | | $ | 203,900 | |
| | | | | | | | | | | |
| | | TOTAL PUT OPTIONS WRITTEN |
| | | (premiums received $180,539) | | | | | | $ | 203,900 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
130
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Portfolio of Options Written — June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| Identifier | | PUT OPTIONS WRITTEN | | Contracts | | | Value | |
| | |
| | | Aerospace & Defense | | | | | | | | |
| BA.TZ | | Boeing Co. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $40.00 | | | 1 | | | $ | 175 | |
| BA.WY | | Boeing Co. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $35.00 | | | 1 | | | | 175 | |
| NOC.TH | | Northrop Grumman Corp. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $40.00 | | | 1 | | | | 47 | |
| | | | | | | | | | | |
| | | | | | | | | | 397 | |
| | | | | | | | | | | |
| | | Airlines |
| ZNH.UU | | China Southern Airlines Company Limited — ADR | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $7.50 | | | 2 | | | | 25 | |
| ZNH.UB | | China Southern Airlines Company Limited — ADR | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $10.00 | | | 6 | | | | 270 | |
| | | | | | | | | | | |
| | | | | | | | | | 295 | |
| | | | | | | | | | | |
| | | Air, Freight and Logistics |
| FDX.MI | | FedEx Corp. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $45.00 | | | 3 | | | | 795 | |
| | | | | | | | | | | |
| | | Asset Managers |
| AMG.UY | | Affiliated Managers Group Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $40.00 | | | 2 | | | | 165 | |
| BEN.SJ | | Franklin Resources, Inc. | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $50.00 | | | 1 | | | | 5 | |
| BEN.VK | | Franklin Resources, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $55.00 | | | 1 | | | | 137 | |
| RQW.SE | | T. Rowe Price Group, Inc. | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $25.00 | | | 2 | | | | 5 | |
See Notes to the Financial Statements.
131
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| RQW.VF | | T. Rowe Price Group, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $30.00 | | | 1 | | | $ | 70 | |
| | | | | | | | | | | |
| | | | | | | | | | 382 | |
| | | | | | | | | | | |
| | | Beverages |
| DEO.SJ | | Diageo plc — ADR | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $50.00 | | | 1 | | | | 10 | |
| DEO.VI | | Diageo plc — ADR | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $45.00 | | | 1 | | | | 47 | |
| | | | | | | | | | | |
| | | | | | | | | | 57 | |
| | | | | | | | | | | |
| | | Biotechnology |
| CRL.TE | | Charles River Laboratories International, Inc. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $25.00 | | | 1 | | | | 12 | |
| | | | | | | | | | | |
| | | Brokerage & Investment Banking |
| LAZ.UE | | Lazard Ltd. — Class A | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $25.00 | | | 4 | | | | 780 | |
| | | | | | | | | | | |
| | | Capital Markets |
| BX.UI | | The Blackstone Group LP | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $6.00 | | | 15 | | | | 150 | |
| BLK.VZ | | Blackrock, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $125.00 | | | 1 | | | | 210 | |
| BK.UZ | | The Bank of New York Mellon Corp | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $26.00 | | | 2 | | | | 230 | |
| YUY.MY | | The Bank of New York Mellon Corp | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $27.50 | | | 1 | | | | 309 | |
| SCN.UV | | The Charles Schwab Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $12.50 | | | 8 | | | | 80 | |
See Notes to the Financial Statements.
132
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| CNS.UB | | Cohen & Steers, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $10.00 | | | 10 | | | $ | 425 | |
| GQG.UZ | | GFI Group, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $2.50 | | | 4 | | | | 20 | |
| GS.VB | | The Goldman Sachs Group, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $110.00 | | | 1 | | | | 234 | |
| GS.MB | | The Goldman Sachs Group, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $110.00 | | | 1 | | | | 515 | |
| IVZ.VB | | Invesco Limited | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $10.00 | | | 8 | | | | 100 | |
| LM.WC | | Legg Mason, Inc. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $15.00 | | | 4 | | | | 300 | |
| NRQ.VK | | Northern Trust Corp. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $55.00 | | | 2 | | | | 1,120 | |
| NRQ.MK | | Northern Trust Corp. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $55.00 | | | 2 | | | | 1,490 | |
| STT.TZ | | State Street Corporation | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $22.50 | | | 3 | | | | 8 | |
| STT.WX | | State Street Corporation | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $30.00 | | | 2 | | | | 190 | |
| QGW.XU | | U.S. Global Investors, Inc. — Class A | | | | | | | | |
| | | Expiration: December 2009,
Exercise Price: $7.50 | | | 6 | | | | 720 | |
| | | | | | | | | | | |
| | | | | | | | | | 6,101 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
133
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Chemicals |
| IAQ.SG | | Sigma-Aldrich Corp. | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $35.00 | | | 1 | | | $ | 5 | |
| IAQ.VG | | Sigma-Aldrich Corp. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $35.00 | | | 2 | | | | 55 | |
| | | | | | | | | | | |
| | | | | | | | | | 60 | |
| | | | | | | | | | | |
| | | Commercial Banks |
| HDB.VL | | HDFC Bank Ltd. — ADR | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $60.00 | | | 1 | | | | 90 | |
| IBN.UC | | ICIC Bank Ltd. — ADR | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $15.00 | | | 1 | | | | 12 | |
| YJQ.MV | | ICIC Bank Ltd. — ADR | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $12.50 | | | 6 | | | | 150 | |
| YJQ.MC | | ICIC Bank Ltd. — ADR | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $15.00 | | | 2 | | | | 100 | |
| MTB.MJ | | M&T Bank Corporation | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $50.00 | | | 2 | | | | 1,760 | |
| WFC.MX | | Wells Fargo & Company | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $22.50 | | | 6 | | | | 1,920 | |
| | | | | | | | | | | |
| | | | | | | | | | 4,032 | |
| | | | | | | | | | | |
| | | Commercial Services & Supplies |
| IRM.SX | | Iron Mountain Incorporated | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $22.50 | | | 1 | | | | 3 | |
| IRM.VX | | Iron Mountain Incorporated | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $22.50 | | | 2 | | | | 115 | |
See Notes to the Financial Statements.
134
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| IRM.ME | | Iron Mountain Incorporated | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $25.00 | | | 2 | | | $ | 350 | |
| | | | | | | | | | | |
| | | | | | | | | | 468 | |
| | | | | | | | | | | |
| | | Consumer Finance |
| AXP.SC | | American Express Company | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $15.00 | | | 1 | | | | 3 | |
| DFS.SU | | Discover Financial Services | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $7.50 | | | 2 | | | | 6 | |
| | | | | | | | | | | |
| | | | | | | | | | 9 | |
| | | | | | | | | | | |
| | | Diversified Consumer Services |
| BID.SU | | Sotheby’s | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $7.50 | | | 1 | | | | 5 | |
| | | | | | | | | | | |
| | | Diversified Financial Services |
| CME.UL | | CME Group, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $230.00 | | | 1 | | | | 375 | |
| LUK.UW | | Leucadia National Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $17.50 | | | 1 | | | | 70 | |
| WHK.MC | | Leucadia National Corporation | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $15.00 | | | 6 | | | | 600 | |
| MCO.MF | | Moody’s Corporation | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $30.00 | | | 1 | | | | 610 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,655 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
135
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Electric Utilities |
| AYE.VX | | Allegheny Energy, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $22.50 | | | 2 | | | $ | 160 | |
| AYE.ME | | Allegheny Energy, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $25.00 | | | 2 | | | | 510 | |
| AYE.MF | | Allegheny Energy, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $30.00 | | | 1 | | | | 570 | |
| ETR.UO | | Entergy Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $75.00 | | | 1 | | | | 310 | |
| GXP.UV | | Great Plains Energy Incorporated | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $12.50 | | | 3 | | | | 30 | |
| GXP.UD | | Great Plains Energy Incorporated | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $20.00 | | | 2 | | | | 940 | |
| KEP.UB | | Korea Electric Power Corporation — ADR | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $10.00 | | | 10 | | | | 525 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,045 | |
| | | | | | | | | | | |
| | | Food Products |
| ADM.UL | | Archer-Daniels-Midland Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $26.00 | | | 3 | | | | 495 | |
| BGW.SH | | Bunge Limited | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $40.00 | | | 1 | | | | 3 | |
| BGW.MJ | | Bunge Limited | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $50.00 | | | 1 | | | | 440 | |
| UN.TX | | Unilever NV | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $22.50 | | | 2 | | | | 110 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,048 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
136
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Funds, Trusts, and Other Financial Vehicles |
| UTH.WN | | Utilities HOLDRs Trust | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $70.00 | | | 2 | | | $ | 165 | |
| PEE.XC | | Vanguard REIT ETF | | | | | | | | |
| | | Expiration: December 2009,
Exercise Price: $29.00 | | | 4 | | | | 1,220 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,385 | |
| | | | | | | | | | | |
| | | Health Care Equipment & Supplies |
| BDX.UM | | Becton, Dickinson and Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $65.00 | | | 1 | | | | 105 | |
| BDX.UN | | Becton, Dickinson and Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $70.00 | | | 1 | | | | 255 | |
| | | | | | | | | | | |
| | | | | | | | | | 360 | |
| | | | | | | | | | | |
| | | Hotels, Restaurants & Leisure |
| IGT.VU | | International Game Technology | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $7.50 | | | 1 | | | | 5 | |
| IGT.VB | | International Game Technology | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $10.00 | | | 8 | | | | 200 | |
| UWV.XQ | | Wynn Resorts Limited | | | | | | | | |
| | | Expiration: December 2009,
Exercise Price: $35.00 | | | 1 | | | | 600 | |
| | | | | | | | | | | |
| | | | | | | | | | 805 | |
| | | | | | | | | | | |
| | | Household Durables |
| FO.UF | | Fortune Brands, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $30.00 | | | 2 | | | | 195 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
137
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Independent Power Producers & Energy Traders |
| CPN.UA | | Calpine Corp. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $5.00 | | | 3 | | | $ | 8 | |
| CPN.UU | | Calpine Corp. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $7.50 | | | 10 | | | | 250 | |
| HNP.TE | | Huaneng Power International, Inc. — ADR | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $25.00 | | | 2 | | | | 160 | |
| HNP.WE | | Huaneng Power International, Inc. — ADR | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $25.00 | | | 2 | | | | 385 | |
| MIR.UB | | Mirant Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $10.00 | | | 5 | | | | 62 | |
| MIR.UC | | Mirant Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $15.00 | | | 2 | | | | 260 | |
| NRG.UT | | NRG Energy, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $17.50 | | | 5 | | | | 162 | |
| ULA.TC | | Reliant Energy Inc. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $3.00 | | | 2 | | | | 20 | |
| ULA.TE | | Reliant Energy Inc. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $5.00 | | | 2 | | | | 130 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,437 | |
| | | | | | | | | | | |
| | | Insurance |
| LFC.SH | | China Life Insurance Co., Limited — ADR | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $40.00 | | | 1 | | | | 3 | |
| MMC.SD | | Marsh & McLennan Companies, Inc. | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $20.00 | | | 2 | | | | 100 | |
See Notes to the Financial Statements.
138
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| MMC.VD | | Marsh & McLennan Companies, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $20.00 | | | 2 | | | $ | 290 | |
| MBI.MA | | MBIA Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $5.00 | | | 4 | | | | 650 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,043 | |
| | | | | | | | | | | |
| | | Internet Software & Services |
| QXB.MV | | eBay, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $12.50 | | | 7 | | | | 315 | |
| | | | | | | | | | | |
| | | IT Services |
| ADP.TZ | | Automatic Data Processing, Inc. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $32.50 | | | 1 | | | | 50 | |
| ADP.WG | | Automatic Data Processing, Inc. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $35.00 | | | 1 | | | | 220 | |
| CAI.UG | | CACI International, Inc. — Class A | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $35.00 | | | 1 | | | | 52 | |
| CAI.UI | | CACI International, Inc. — Class A | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $45.00 | | | 1 | | | | 395 | |
| WU.TB | | The Western Union Company | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $10.00 | | | 4 | | | | 20 | |
| | | | | | | | | | | |
| | | | | | | | | | 737 | |
| | | | | | | | | | | |
| | | Machinery |
| UKU.UA | | American Railcar Industries, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $5.00 | | | 12 | | | | 150 | |
| UKU.UU | | American Railcar Industries, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $7.50 | | | 2 | | | | 150 | |
| | | | | | | | | | | |
| | | | | | | | | | 300 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
139
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Media |
| MHP.WX | | The McGraw-Hill Companies, Inc. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $22.50 | | | 2 | | | $ | 175 | |
| MHP.MF | | The McGraw-Hill Companies, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $30.00 | | | 2 | | | | 820 | |
| DIS.SD | | The Walt Disney Co. | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $20.00 | | | 2 | | | | 10 | |
| DIS.VW | | The Walt Disney Co. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $17.50 | | | 2 | | | | 55 | |
| DIS.MX | | The Walt Disney Co. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $22.50 | | | 1 | | | | 230 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,290 | |
| | | | | | | | | | | |
| | | Metals & Mining |
| CMC.UB | | Commercial Metals Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $10.00 | | | 2 | | | | 40 | |
| CMC.MV | | Commercial Metals Company | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $12.50 | | | 8 | | | | 1,100 | |
| FCX.WH | | Freeport-McMoRan Copper & Gold Inc. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $40.00 | | | 3 | | | | 1,008 | |
| NUE.SH | | Nucor Corp. | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $40.00 | | | 1 | | | | 40 | |
| RJT.SU | | Rio Tinto Plc — ADR | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $70.00 | | | 1 | | | | 5 | |
| | | | | | | | | | | |
| | | | | | | | | | 2,193 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
140
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Multiline Retail |
| KTQ.UH | | Sears Holdings Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $40.00 | | | 1 | | | $ | 68 | |
| | | | | | | | | | | |
| | | Multi-Utilities |
| CMS.UB | | CMS Energy Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $10.00 | | | 8 | | | | 120 | |
| CMS.UV | | CMS Energy Corporation | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $12.50 | | | 2 | | | | 190 | |
| | | | | | | | | | | |
| | | | | | | | | | 310 | |
| | | | | | | | | | | |
| | | Oil, Gas & Consumable Fuels |
| CCJ.MX | | Cameco Corporation | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $22.50 | | | 2 | | | | 465 | |
| CCD.UG | | Canadian Natural Resources Ltd. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $35.00 | | | 1 | | | | 40 | |
| CNQ.MJ | | Canadian Natural Resources Ltd. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $50.00 | | | 4 | | | | 2,700 | |
| SNP.SU | | China Petroleum & Chemical Corp. — ADR | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $55.00 | | | 1 | | | | 8 | |
| CEO.UT | | CNOOC Limited — ADR | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $100.00 | | | 1 | | | | 360 | |
| ECA.VH | | EnCana Corporation | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $40.00 | | | 4 | | | | 570 | |
| ECA.MH | | EnCana Corporation | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $40.00 | | | 2 | | | | 540 | |
See Notes to the Financial Statements.
141
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| IMO.TF | | Imperial Oil Ltd. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $30.00 | | | 1 | | | $ | 22 | |
| IMO.WG | | Imperial Oil Ltd. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $35.00 | | | 2 | | | | 415 | |
| NXY.UC | | Nexen Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $15.00 | | | 2 | | | | 60 | |
| KJA.MC | | Nexen Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $15.00 | | | 2 | | | | 185 | |
| PWE.XV | | Penn West Energy Trust | | | | | | | | |
| | | Expiration: December 2009,
Exercise Price: $12.50 | | | 2 | | | | 350 | |
| SUG.UV | | Southern Union Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $12.50 | | | 3 | | | | 30 | |
| SUG.UC | | Southern Union Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $15.00 | | | 3 | | | | 83 | |
| STO.SW | | StatoilHydro ASA — ADR | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $17.50 | | | 2 | | | | 15 | |
| STO.VW | | StatoilHydro ASA — ADR | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $17.50 | | | 2 | | | | 185 | |
| SXH.UD | | Suncor Energy, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $20.00 | | | 2 | | | | 40 | |
| SXH.UX | | Suncor Energy, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $22.50 | | | 2 | | | | 90 | |
| YHH.MD | | Suncor Energy, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $20.00 | | | 1 | | | | 90 | |
| | | | | | | | | | | |
| | | | | | | | | | 6,248 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
142
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Personal Products |
| EL.VE | | The Estee Lauder Companies, Inc. — Class A | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $25.00 | | | 3 | | | $ | 150 | |
| | | | | | | | | | | |
| | | Real Estate Investment Trusts (REITs) |
| ARE.VG | | Alexandria Real Estate Equities, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $35.00 | | | 3 | | | | 1,095 | |
| BXP.VZ | | Boston Properties, Inc. | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $35.00 | | | 4 | | | | 560 | |
| BAM.UV | | Brookfield Asset Management, Inc. — Class A | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $12.50 | | | 3 | | | | 75 | |
| BAM.MW | | Brookfield Asset Management — Class A | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $17.50 | | | 3 | | | | 765 | |
| PSA.XK | | Public Storage | | | | | | | | |
| | | Expiration: December 2009,
Exercise Price: $55.00 | | | 2 | | | | 680 | |
| VNO.UV | | Vornado Realty Trust | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $30.00 | | | 4 | | | | 228 | |
| WRE.VW | | Washington Real Estate Investment Trust | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $17.50 | | | 6 | | | | 390 | |
| | | | | | | | | | | |
| | | | | | | | | | 3,793 | |
| | | | | | | | | | | |
| | | Real Estate Management and Development |
| CBG.UZ | | CB Richard Ellis Group, Inc. — Class A | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $2.50 | | | 7 | | | | 18 | |
| JLL.UX | | Jones Lang LaSalle Incorporated | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $22.50 | | | 4 | | | | 210 | |
See Notes to the Financial Statements.
143
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| JOE.UW | | The St. Joe Company | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $17.50 | | | 5 | | | $ | 75 | |
| | | | | | | | | | | |
| | | | | | | | | | 303 | |
| | | | | | | | | | | |
| | | Road & Rail |
| BNI.VL | | Burlington Northern Santa Fe Corporation | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $60.00 | | | 1 | | | | 175 | |
| CP.UF | | Canadian Pacific Railway Limited | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $30.00 | | | 2 | | | | 115 | |
| CSX.TF | | CSX Corp. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $30.00 | | | 1 | | | | 90 | |
| CSX.WX | | CSX Corp. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $22.50 | | | 1 | | | | 65 | |
| CSX.WS | | CSX Corp. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $27.00 | | | 1 | | | | 150 | |
| | | | | | | | | | | |
| | | | | | | | | | 595 | |
| | | | | | | | | | | |
| | | Specialty Retail |
| TIF.TD | | Tiffany & Co. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $20.00 | | | 2 | | | | 60 | |
| TIF.WD | | Tiffany & Co. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $20.00 | | | 2 | | | | 230 | |
| | | | | | | | | | | |
| | | | | | | | | | 290 | |
| | | | | | | | | | | |
| | | Textiles, Apparel & Luxury Goods |
| COH.TD | | Coach, Inc. | | | | | | | | |
| | | Expiration: August 2009,
Exercise Price: $20.00 | | | 1 | | | | 30 | |
See Notes to the Financial Statements.
144
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| COH.WC | | Coach, Inc. | | | | | | | | |
| | | Expiration: November 2009,
Exercise Price: $15.00 | | | 4 | | | $ | 140 | |
| COH.MD | | Coach, Inc. | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $20.00 | | | 1 | | | | 147 | |
| | | | | | | | | | | |
| | | | | | | | | | 317 | |
| | | | | | | | | | | |
| | | Tobacco |
| MO.UQ | | Altria Group, Inc. | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $16.00 | | | 5 | | | | 315 | |
| | | | | | | | | | | |
| | | Transportation Services |
| UPS.SI | | United Parcel Service — Class B | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $45.00 | | | 1 | | | | 20 | |
| UPS.VJ | | United Parcel Service — Class B | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $50.00 | | | 1 | | | | 380 | |
| | | | | | | | | | | |
| | | | | | | | | | 400 | |
| | | | | | | | | | | |
| | | U.S. Equity Exchanges |
| NQD.UD | | The Nasdaq OMX Group | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $20.00 | | | 4 | | | | 520 | |
| NQD.MC | | The Nasdaq OMX Group | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $15.00 | | | 6 | | | | 435 | |
| NYX.UY | | NYSE Euronext | | | | | | | | |
| | | Expiration: September 2009,
Exercise Price: $17.50 | | | 4 | | | | 62 | |
| | | | | | | | | | | |
| | | | | | | | | | 1,017 | |
| | | | | | | | | | | |
See Notes to the Financial Statements.
145
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2009 (Unaudited) — (Continued)
| | | | | | | | | | | |
| Identifier | | | | Contracts | | | Value | |
| | |
| |
| | | Wireless Telecommunication Services |
| CHU.SU | | China Unicom (Hong Kong) Limited — ADR | | | | | | | | |
| | | Expiration: July 2009,
Exercise Price: $7.50 | | | 3 | | | $ | 15 | |
| CHU.VU | | China Unicom (Hong Kong) Limited — ADR | | | | | | | | |
| | | Expiration: October 2009,
Exercise Price: $7.50 | | | 11 | | | | 83 | |
| CHU.MB | | China Unicom (Hong Kong) Limited — ADR | | | | | | | | |
| | | Expiration: January 2010,
Exercise Price: $10.00 | | | 4 | | | | 290 | |
| | | | | | | | | | | |
| | | | | | | | | | 388 | |
| | | | | | | | | | | |
| | | TOTAL PUT OPTIONS WRITTEN
(premiums received $133,153) | | | | | | $ | 43,395 | |
| | | | | | | | | | | |
| |
| ADR — | American Depository Receipt. |
See Notes to the Financial Statements.
146
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Assets & Liabilities
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Internet
| | | The Global
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
ASSETS: | | | | | | | | |
Investments, at value(1)(2) | | $ | 121,238,100 | | | $ | 3,880,521 | |
Foreign currencies, at value(3) | | | 8,804 | | | | 4,521 | |
| Cash | | | 448,405 | | | | — | |
| Receivable for contributed capital | | | 27,627 | | | | 44,432 | |
| Receivable for investments sold | | | — | | | | 1 | |
| Dividends and interest receivable | | | 44,993 | | | | 20,429 | |
| Other assets | | | 18,048 | | | | 195 | |
| | | | | | | | | |
| Total assets | | | 121,785,977 | | | | 3,950,099 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
Written options, at value(4) | | | 407,800 | | | | — | |
| Payable to Adviser | | | 89,224 | | | | 3,440 | |
| Payable to Trustees and Officers | | | 1,257 | | | | 29 | |
| Payable for securities purchased | | | — | | | | 169,585 | |
| Payable for collateral received for securities loaned | | | 34,839,206 | | | | 198,369 | |
| Payable for withdrawn capital | | | 12,196 | | | | — | |
| Accrued expenses and other liabilities | | | 19,218 | | | | 8,733 | |
| | | | | | | | | |
| Total liabilities | | | 35,368,901 | | | | 380,156 | |
| | | | | | | | | |
| Net assets | | $ | 86,417,076 | | | $ | 3,569,943 | |
| | | | | | | | | |
(1) Cost of investments | | $ | 113,661,405 | | | $ | 4,698,128 | |
| | | | | | | | | |
(2) Includes loaned securities with a market value of | | $ | 32,986,828 | | | $ | 184,695 | |
| | | | | | | | | |
(3) Cost of foreign currencies | | $ | 8,826 | | | $ | 4,519 | |
| | | | | | | | | |
(4) Premiums received | | $ | 361,078 | | | $ | — | |
| | | | | | | | | |
See Notes to the Financial Statements.
147
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Paradigm
| | | The Medical
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
ASSETS: | | | | | | | | |
Investments, at value(1)(2) | | $ | 1,764,384,412 | | | $ | 25,355,189 | |
Foreign currencies, at value(3) | | | 569,816 | | | | 2,568 | |
| Cash | | | 79,452 | | | | 40,985 | |
| Receivable for contributed capital | | | 3,848,278 | | | | 156,926 | |
| Receivable for investments sold | | | 330,184 | | | | — | |
| Dividends and interest receivable | | | 2,909,892 | | | | 13,076 | |
| Other assets | | | 296,309 | | | | 1,883 | |
| | | | | | | | | |
| Total assets | | | 1,772,418,343 | | | | 25,570,627 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
| Payable to Adviser | | | 1,403,169 | | | | 19,792 | |
| Payable to Trustees and Officers | | | 19,602 | | | | 303 | |
| Payable for securities purchased | | | 15,585,663 | | | | — | |
| Payable for collateral received for securities loaned | | | 392,287,830 | | | | 6,046,114 | |
| Payable for other collateral received for securities loaned | | | 624,000 | | | | — | |
| Payable for withdrawn capital | | | 3,175,179 | | | | 3,813 | |
| Accrued expenses and other liabilities | | | 179,313 | | | | 10,175 | |
| | | | | | | | | |
| Total liabilities | | | 413,274,756 | | | | 6,080,197 | �� |
| | | | | | | | | |
| Net assets | | $ | 1,359,143,587 | | | $ | 19,490,430 | |
| | | | | | | | | |
(1) Cost of investments | | $ | 2,048,473,660 | | | $ | 28,420,395 | |
| | | | | | | | | |
(2) Includes loaned securities with a market value of | | $ | 368,525,822 | | | $ | 5,681,624 | |
| | | | | | | | | |
(3) Cost of foreign currencies | | $ | 567,907 | | | $ | 2,548 | |
| | | | | | | | | |
See Notes to the Financial Statements.
148
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | | | | The Kinetics
| |
| | | The Small Cap
| | | Government
| |
| | | Opportunities
| | | Money Market
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
ASSETS: | | | | | | | | |
Investments, at value(1)(2) | | $ | 289,965,791 | | | $ | 1,899,957 | |
Foreign currencies, at value(3) | | | 58,169 | | | | — | |
| Cash | | | — | | | | 27,683 | |
| Receivable for contributed capital | | | 670,223 | | | | — | |
| Dividends and interest receivable | | | 698,827 | | | | — | |
| Other assets | | | 28,717 | | | | 98 | |
| | | | | | | | | |
| Total assets | | | 291,421,727 | | | | 1,927,738 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
| Payable to Adviser | | | 249,517 | | | | 812 | |
| Payable to Custodian | | | 9,658 | | | | — | |
| Payable to Trustees and Officers | | | 3,351 | | | | 55 | |
| Payable for collateral received for securities loaned | | | 39,503,267 | | | | — | |
| Payable for withdrawn capital | | | 287,558 | | | | 26,382 | |
| Accrued expenses and other liabilities | | | 44,768 | | | | 6,196 | |
| | | | | | | | | |
| Total liabilities | | | 40,098,119 | | | | 33,445 | |
| | | | | | | | | |
| Net assets | | $ | 251,323,608 | | | $ | 1,894,293 | |
| | | | | | | | | |
(1) Cost of investments | | $ | 332,426,533 | | | $ | 1,899,957 | |
| | | | | | | | | |
(2) Includes loaned securities with a market value of | | $ | 35,318,791 | | | $ | — | |
| | | | | | | | | |
(3) Cost of foreign currencies | | $ | 58,421 | | | $ | — | |
| | | | | | | | | |
See Notes to the Financial Statements.
149
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Market
| | | The Water
| |
| | | Opportunities
| | | Infrastructure
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
ASSETS: | | | | | | | | |
Investments, at value(1)(2) | | $ | 78,398,961 | | | $ | 17,196,310 | |
Foreign currencies, at value(3) | | | 105,042 | | | | 326,567 | |
| Cash | | | 576,900 | | | | 39,894 | |
| Receivable for contributed capital | | | 92,672 | | | | 32,526 | |
| Receivable for investments sold | | | — | | | | 238,702 | |
| Dividends and interest receivable | | | 169,104 | | | | 39,914 | |
| Other assets | | | 8,035 | | | | 1,834 | |
| | | | | | | | | |
| Total assets | | | 79,350,714 | | | | 17,875,747 | |
| | | | | | | | | |
LIABILITIES: | | | | | | | | |
Written options, at value(4) | | | 203,900 | | | | — | |
| Payable to Adviser | | | 63,617 | | | | 16,160 | |
| Payable to Trustees and Officers | | | 867 | | | | 263 | |
| Payable for securities purchased | | | 53,506 | | | | — | |
| Payable for collateral received for securities loaned | | | 17,829,171 | | | | 1,911,452 | |
| Payable for withdrawn capital | | | 139,546 | | | | 12,518 | |
| Accrued expenses and other liabilities | | | 16,823 | | | | 9,919 | |
| | | | | | | | | |
| Total liabilities | | | 18,307,430 | | | | 1,950,312 | |
| | | | | | | | | |
| Net assets | | $ | 61,043,284 | | | $ | 15,925,435 | |
| | | | | | | | | |
(1) Cost of investments | | $ | 87,144,188 | | | $ | 18,653,985 | |
| | | | | | | | | |
(2) Includes loaned securities with a market value of | | $ | 16,529,909 | | | $ | 1,814,349 | |
| | | | | | | | | |
(3) Cost of foreign currencies | | $ | 100,602 | | | $ | 344,077 | |
| | | | | | | | | |
(4) Premiums received | | $ | 180,539 | | | $ | — | |
| | | | | | | | | |
See Notes to the Financial Statements.
150
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Assets & Liabilities — (Continued)
June 30, 2009 (Unaudited)
| | | | | |
| | | The Multi-
| |
| | | Disciplinary
| |
| | | Portfolio | |
| | |
| |
ASSETS: | | | | |
Investments, at value(1) | | $ | 807,492 | |
| Deposit at brokers for written options | | | 41,420 | |
| Cash | | | 206,789 | |
| Receivable for contributed capital | | | 3,000 | |
| Dividends and interest receivable | | | 4,894 | |
| Other assets | | | 130 | |
| | | | | |
| Total assets | | | 1,063,725 | |
| | | | | |
LIABILITIES: | | | | |
Written options, at value(2) | | | 43,395 | |
| Payable to Adviser | | | 1,026 | |
| Payable to Trustees and Officers | | | 9 | |
| Accrued expenses and other liabilities | | | 8,271 | |
| | | | | |
| Total liabilities | | | 52,701 | |
| | | | | |
| Net assets | | $ | 1,011,024 | |
| | | | | |
(1) Cost of investments | | $ | 808,986 | |
| | | | | |
(2) Premiums received | | $ | 133,153 | |
| | | | | |
See Notes to the Financial Statements.
151
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Operations
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Internet
| | | The Global
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
INVESTMENT INCOME: | | | | | | | | |
| Dividends† | | $ | 305,994 | | | $ | 35,451 | |
| Interest | | | 206,778 | | | | 279 | |
| Income from securities lending | | | 62,562 | | | | 458 | |
| | | | | | | | | |
| Total investment income | | | 575,334 | | | | 36,188 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 472,490 | | | | 14,407 | |
| Administration fees | | | 13,941 | | | | 526 | |
| Professional fees | | | 12,431 | | | | 3,610 | |
| Fund accounting fees | | | 11,278 | | | | 4,793 | |
| Trustee and Officers’ fees and expenses | | | 3,732 | | | | 110 | |
| Custodian fees and expenses | | | 5,669 | | | | 2,678 | |
| Other expenses | | | 6,106 | | | | 241 | |
| | | | | | | | | |
| Total expenses | | | 525,647 | | | | 26,365 | |
| | | | | | | | | |
| Net expenses | | | 525,647 | | | | 26,365 | |
| | | | | | | | | |
| Net investment income | | | 49,687 | | | | 9,823 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN ON INVESTMENTS: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments and foreign currency | | | 2,376,314 | | | | 5,159 | |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 10,745,818 | | | | 764,520 | |
| Written option contracts | | | 407,200 | | | | — | |
| | | | | | | | | |
| Net gain on investments | | | 13,529,332 | | | | 769,679 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 13,579,019 | | | $ | 779,502 | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 22,773 | | | $ | 2,606 | |
| | | | | | | | | |
See Notes to the Financial Statements.
152
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Paradigm
| | | The Medical
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
INVESTMENT INCOME: | | | | | | | | |
| Dividends† | | $ | 12,219,848 | | | $ | 261,050 | |
| Interest | | | 2,379,155 | | | | 1,066 | |
| Income from securities lending | | | 2,210,917 | | | | 5,717 | |
| | | | | | | | | |
| Total investment income | | | 16,809,920 | | | | 267,833 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 7,339,430 | | | | 112,233 | |
| Administration fees | | | 284,968 | | | | 3,987 | |
| Professional fees | | | 19,252 | | | | 6,756 | |
| Fund accounting fees | | | 129,268 | | | | 3,333 | |
| Trustee and Officers’ fees and expenses | | | 50,334 | | | | 1,051 | |
| Custodian fees and expenses | | | 104,747 | | | | 925 | |
| Other expenses | | | 102,872 | | | | 1,752 | |
| | | | | | | | | |
| Total expenses | | | 8,030,871 | | | | 130,037 | |
| | | | | | | | | |
| Net expenses | | | 8,030,871 | | | | 130,037 | |
| | | | | | | | | |
| Net investment income | | | 8,779,049 | | | | 137,796 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | |
| Investments and foreign currency | | | (235,887,265 | ) | | | (196,313 | ) |
| Written option contracts expired or closed | | | — | | | | 19,470 | |
| Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
| Investments and foreign currency | | | 408,080,005 | | | | 1,875,501 | |
| Written option contracts | | | — | | | | (18,430 | ) |
| | | | | | | | | |
| Net gain on investments | | | 172,192,740 | | | | 1,680,228 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 180,971,789 | | | $ | 1,818,024 | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 880,212 | | | $ | 18,893 | |
| | | | | | | | | |
See Notes to the Financial Statements.
153
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | | | | The Kinetics
| |
| | | The Small Cap
| | | Government
| |
| | | Opportunities
| | | Money Market
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
INVESTMENT INCOME: | | | | | | | | |
| Dividends† | | $ | 1,536,561 | | | $ | — | |
| Interest | | | 101,259 | | | | 1,106 | |
| Income from securities lending | | | 49,856 | | | | — | |
| | | | | | | | | |
| Total investment income | | | 1,687,676 | | | | 1,106 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 1,258,763 | | | | 6,127 | |
| Administration fees | | | 49,633 | | | | 567 | |
| Professional fees | | | 12,518 | | | | 2,342 | |
| Fund accounting fees | | | 25,957 | | | | 397 | |
| Trustee and Officers’ fees and expenses | | | 7,811 | | | | 170 | |
| Custodian fees and expenses | | | 51,576 | | | | 1,425 | |
| Other expenses | | | 16,782 | | | | 270 | |
| | | | | | | | | |
| Total expenses | | | 1,423,040 | | | | 11,298 | |
| | | | | | | | | |
| Net expenses | | | 1,423,040 | | | | 11,298 | |
| | | | | | | | | |
| Net investment income | | | 264,636 | | | | (10,192 | ) |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | |
| Net realized loss on: | | | | | | | | |
| Investments and foreign currency | | | (33,740,546 | ) | | | (99 | ) |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 91,291,423 | | | | — | |
| Written option contracts | | | 1,310 | | | | — | |
| | | | | | | | | |
| Net gain (loss) on investments | | | 57,552,187 | | | | (99 | ) |
| | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 57,816,823 | | | $ | (10,291 | ) |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 78,529 | | | $ | — | |
| | | | | | | | | |
See Notes to the Financial Statements.
154
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | | | | | |
| | | The Market
| | | The Water
| |
| | | Opportunities
| | | Infrastructure
| |
| | | Portfolio | | | Portfolio | |
| | |
| |
INVESTMENT INCOME: | | | | | | | | |
| Dividends† | | $ | 520,284 | | | $ | 190,968 | |
| Interest | | | 3,959 | | | | 3,320 | |
| Income from securities lending | | | 10,131 | | | | 2,813 | |
| | | | | | | | | |
| Total investment income | | | 534,374 | | | | 197,101 | |
| | | | | | | | | |
EXPENSES: | | | | | | | | |
| Investment advisory fees | | | 321,972 | | | | 94,661 | |
| Administration fees | | | 9,280 | | | | 3,043 | |
| Professional fees | | | 10,039 | | | | 6,284 | |
| Fund accounting fees | | | 9,048 | | | | 3,396 | |
| Trustee and Officers’ fees and expenses | | | 2,559 | | | | 963 | |
| Custodian fees and expenses | | | 8,456 | | | | 5,055 | |
| Other expenses | | | 4,420 | | | | 1,252 | |
| | | | | | | | | |
| Total expenses | | | 365,774 | | | | 114,654 | |
| | | | | | | | | |
| Net expenses | | | 365,774 | | | | 114,654 | |
| | | | | | | | | |
| Net investment income | | | 168,600 | | | | 82,447 | |
| | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | | | | | |
| Net realized loss on: | | | | | | | | |
| Investments and foreign currency | | | (7,159,210 | ) | | | (1,235,363 | ) |
| Net change in unrealized appreciation of: | | | | | | | | |
| Investments and foreign currency | | | 20,045,520 | | | | 1,837,447 | |
| Written option contracts | | | 203,600 | | | | — | |
| | | | | | | | | |
| Net gain on investments | | | 13,089,910 | | | | 602,084 | |
| | | | | | | | | |
| Net increase in net assets resulting from operations | | $ | 13,258,510 | | | $ | 684,531 | |
| | | | | | | | | |
| † Net of Foreign Taxes Withheld of: | | $ | 32,344 | | | $ | 20,957 | |
| | | | | | | | | |
See Notes to the Financial Statements.
155
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statement of Operations — (Continued)
For the Six Months Ended June 30, 2009 (Unaudited)
| | | | | |
| | | The Multi-
| |
| | | Disciplinary
| |
| | | Portfolio | |
| | |
| |
INVESTMENT INCOME: | | | | |
| Interest | | $ | 1,412 | |
| | | | | |
| Total investment income | | | 1,412 | |
| | | | | |
EXPENSES: | | | | |
| Investment advisory fees | | | 4,202 | |
| Administration fees | | | 149 | |
| Professional fees | | | 6,553 | |
| Fund accounting fees | | | 2,410 | |
| Trustee and Officers’ fees and expenses | | | 30 | |
| Custodian fees and expenses | | | 856 | |
| Other expenses | | | 230 | |
| | | | | |
| Total expenses | | | 14,430 | |
| | | | | |
| Net expenses | | | 14,430 | |
| | | | | |
| Net investment loss | | | (13,018 | ) |
| | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | |
| Net realized gain (loss) on: | | | | |
| Investments | | | (33,765 | ) |
| Written option contracts expired or closed | | | 22,456 | |
| Net change in unrealized appreciation (depreciation) of: | | | | |
| Investments | | | (592 | ) |
| Written option contracts | | | 107,178 | |
| | | | | |
| Net gain on investments | | | 95,277 | |
| | | | | |
| Net increase in net assets resulting from operations | | $ | 82,259 | |
| | | | | |
See Notes to the Financial Statements.
156
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, 2009
| | | December 31,
| | | June 30, 2009
| | | December 31,
| |
| | | (Unaudited) | | | 2008 | | | (Unaudited) | | | 2008 | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 49,687 | | | $ | 1,798,294 | | | $ | 9,823 | | | $ | 23,448 | |
| Net realized gain on sale of investments, foreign currency and written options | | | 2,376,314 | | | | 1,853,794 | | | | 5,159 | | | | 188,690 | |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 11,153,018 | | | | (65,388,288 | ) | | | 764,520 | | | | (2,277,088 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 13,579,019 | | | | (61,736,200 | ) | | | 779,502 | | | | (2,064,950 | ) |
| | | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 486,816 | | | | 1,732,265 | | | | 1,320,084 | | | | 1,685,706 | |
| Withdrawals | | | (3,288,583 | ) | | | (32,194,574 | ) | | | (491,386 | ) | | | (801,892 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | (2,801,767 | ) | | | (30,462,309 | ) | | | 828,698 | | | | 883,814 | |
| | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | 10,777,252 | | | | (92,198,509 | ) | | | 1,608,200 | | | | (1,181,136 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 75,639,824 | | | | 167,838,333 | | | | 1,961,743 | | | | 3,142,879 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 86,417,076 | | | $ | 75,639,824 | | | $ | 3,569,943 | | | $ | 1,961,743 | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
157
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, 2009
| | | December 31,
| | | June 30, 2009
| | | December 31,
| |
| | | (Unaudited) | | | 2008 | | | (Unaudited) | | | 2008 | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 8,779,049 | | | $ | 27,713,345 | | | $ | 137,796 | | | $ | 192,545 | |
| Net realized gain (loss) on sale of investments, foreign currency and written options | | | (235,887,265 | ) | | | (640,738,772 | ) | | | (176,843 | ) | | | 369,558 | |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 408,080,005 | | | | (1,594,810,674 | ) | | | 1,857,071 | | | | (5,659,508 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 180,971,789 | | | | (2,207,836,101 | ) | | | 1,818,024 | | | | (5,097,405 | ) |
| | | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 60,387,014 | | | | 283,118,993 | | | | 1,780,549 | | | | 13,013,167 | |
| Withdrawals | | | (174,690,206 | ) | | | (1,422,768,329 | ) | | | (3,100,836 | ) | | | (4,427,289 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | (114,303,192 | ) | | | (1,139,649,336 | ) | | | (1,320,287 | ) | | | 8,585,878 | |
| | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | 66,668,597 | | | | (3,347,485,437 | ) | | | 497,737 | | | | 3,488,473 | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 1,292,474,990 | | | | 4,639,960,427 | | | | 18,992,693 | | | | 15,504,220 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 1,359,143,587 | | | $ | 1,292,474,990 | | | $ | 19,490,430 | | | $ | 18,992,693 | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
158
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | | | | The Kinetics Government
| |
| | | The Small Cap Opportunities Portfolio | | | Money Market Portfolio | |
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Six Months Ended
| | | Year Ended
| | | Six Months Ended
| | | Year Ended
| |
| | | June 30, 2009
| | | December 31,
| | | June 30, 2009
| | | December 31,
| |
| | | (Unaudited) | | | 2008 | | | (Unaudited) | | | 2008 | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 264,636 | | | $ | 2,982,907 | | | $ | (10,192 | ) | | $ | 7,334 | |
| Net realized loss on sale of investments, foreign currency and written options | | | (33,740,546 | ) | | | (139,808,958 | ) | | | (99 | ) | | | (84 | ) |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 91,292,733 | | | | (332,405,475 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 57,816,823 | | | | (469,231,526 | ) | | | (10,291 | ) | | | 7,250 | |
| | | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 18,258,530 | | | | 9,623,613 | | | | 962,536 | | | | 3,553,538 | |
| Withdrawals | | | (35,277,657 | ) | | | (417,583,047 | ) | | | (1,764,200 | ) | | | (2,067,115 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | (17,019,127 | ) | | | (407,959,434 | ) | | | (801,664 | ) | | | 1,486,423 | |
| | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | 40,797,696 | | | | (877,190,960 | ) | | | (811,955 | ) | | | 1,493,673 | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 210,525,912 | | | | 1,087,716,872 | | | | 2,706,248 | | | | 1,212,575 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 251,323,608 | | | $ | 210,525,912 | | | $ | 1,894,293 | | | $ | 2,706,248 | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
159
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Portfolio | | | The Water Infrastructure Portfolio | |
| | | For the
| | | | | | For the
| | | | |
| | | Six Months Ended
| | | For the
| | | Six Months Ended
| | | For the
| |
| | | June 30, 2009 | | | Year Ended | | | June 30, 2009 | | | Year Ended | |
| | | (Unaudited) | | | December 31, 2008 | | | (Unaudited) | | | December 31, 2008 | |
| | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 168,600 | | | $ | 1,128,258 | | | $ | 82,447 | | | $ | 242,835 | |
| Net realized loss on sale of investments, foreign currency and written options | | | (7,159,210 | ) | | | (26,773,299 | ) | | | (1,235,363 | ) | | | (5,821,675 | ) |
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | | | 20,249,120 | | | | (46,316,211 | ) | | | 1,837,447 | | | | (3,345,871 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 13,258,510 | | | | (71,961,252 | ) | | | 684,531 | | | | (8,924,711 | ) |
| | | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Contributions | | | 3,430,933 | | | | 41,907,272 | | | | 3,902,884 | | | | 33,631,279 | |
| Withdrawals | | | (13,195,305 | ) | | | (28,148,309 | ) | | | (4,813,700 | ) | | | (14,812,293 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from beneficial interest transactions | | | (9,764,372 | ) | | | 13,758,963 | | | | (910,816 | ) | | | 18,818,986 | |
| | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | 3,494,138 | | | | (58,202,289 | ) | | | (226,285 | ) | | | 9,894,275 | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 57,549,146 | | | | 115,751,435 | | | | 16,151,720 | | | | 6,257,445 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 61,043,284 | | | $ | 57,549,146 | | | $ | 15,925,435 | | | $ | 16,151,720 | |
| | | | | | | | | | | | | | | | | |
See Notes to the Financial Statements.
160
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets — (Continued)
| | | | | | | | | |
| | | The Multi-Disciplinary Portfolio | |
| | | | | | From
| |
| | | For the
| | | February 11, 2008ˆ
| |
| | | Six Months Ended
| | | through
| |
| | | June 30, 2009 | | | December 31, 2008 | |
| | | (Unaudited) | | | | |
| | |
| |
OPERATIONS: | | | | | | | | |
| Net investment loss | | $ | (13,018 | ) | | $ | (14,825 | ) |
| Net realized loss on sale of investments and written options | | | (11,309 | ) | | | (74,483 | ) |
| Net change in unrealized appreciation (depreciation) of investments and written options | | | 106,586 | | | | (18,321 | ) |
| | | | | | | | | |
| Net increase (decrease) in net assets resulting from operations | | | 82,259 | | | | (107,629 | ) |
| | | | | | | | | |
NET INCREASE IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | | | | | | | | |
| Contributions | | | 557,972 | | | | 605,549 | |
| Withdrawals | | | (47,493 | ) | | | (79,634 | ) |
| | | | | | | | | |
| Net increase in net assets resulting from beneficial interest transactions | | | 510,479 | | | | 525,915 | |
| | | | | | | | | |
| Total increase in net assets | | | 592,738 | | | | 418,286 | |
NET ASSETS: | | | | | | | | |
| Beginning of period | | | 418,286 | | | | — | |
| | | | | | | | | |
| End of period | | $ | 1,011,024 | | | $ | 418,286 | |
| | | | | | | | | |
| |
| ˆ | Commencement of operations. |
See Notes to the Financial Statements.
161
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements
June 30, 2009 (Unaudited)
1. Organization
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 Kinetics Government Money Market Portfolio, The Market Opportunities Portfolio, The Water Infrastructure Portfolio and The Multi-Disciplinary Portfolio (collectively, the “Master Portfolios”). Pursuant to the 1940 Act, the Master Portfolios, with the exception of The Kinetics Government Money Market Portfolio, are “non-diversified” series of the Trust. The Market Opportunities Portfolio commenced operations on January 31, 2006, The Water Infrastructure 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, with the exception of The Kinetics Government Money Market Portfolio, seeks to provide investors with long-term capital growth. 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 invests primarily in the equity securities of foreign companies that have the ability to facilitate an increase in the growth of their traditional business lines and secondarily 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 revenues. The Medical Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in medical research, pharmaceutical treatments and related medical technology with a focus on companies engaged in cancer
162
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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 or in the gaming industry. The Water Infrastructure Portfolio invests primarily in securities issued by U.S. and foreign companies involved in water infrastructure and natural resources with a specific water theme and related activities. The Multi-Disciplinary Portfolio utilizes a two-part investment strategy, investing primarily in fixed income securities, including debt securities issued by the U.S. Government or its agencies, and in derivatives. The Kinetics Government Money Market Portfolio seeks to provide investors with current income consistent with the preservation of capital and maintenance of liquidity by investing in money market instruments issued by the U.S. Government, its agencies or instrumentalities.
2. Significant Accounting Policies
Security Valuation
Master Portfolio securities (other than securities held by the Kinetics Government Money Market Portfolio) 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”). 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 NYSE, “fair value” will be determined. Purchased non-exchange traded options, futures, 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 mean of the most recent bid and asked prices. Exchange traded options are valued at the last reported sale price on an exchange on which the option is traded. If no sales are reported on a particular day, the mean between the highest bid and lowest asked quotations at the close of the exchanges will be used. 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
163
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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. Investment securities in The Kinetics Government Money Market Portfolio and instruments purchased 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. At June 30, 2009 0.03%, 0.29%, 0.00% and 0.00% fair valued securities were held by the Internet Portfolio, Paradigm Portfolio, Small Cap Opportunities Portfolio and Market Opportunities Portfolio, respectively.
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 100% 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.
Options Written
The Portfolios are subject to equity price risk in the normal course of pursuing its investment objectives. The Portfolios may purchase or write options to gain exposure to, or hedge against changes in the value of equities. 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
164
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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). Realized and unrealized gains or losses are included in the Statement of Operations. 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.
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, 2009 the Global Portfolio and Paradigm Portfolio had restricted securities with an aggregate value of $67,279 and $6,721,000 representing 1.88% and 0.49% of its net assets, respectively. 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
165
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
valued the investment. At June 30, 2009, the following Master Portfolios held illiquid securities:
| | | | | | | | | |
| | | | | Percentage
|
| | | Market Value | | of Net Assets |
| |
| The Internet Portfolio | | $ | 24,393 | | | | 0.03 | % |
| The Paradigm Portfolio | | | 3,879,178 | | | | 0.29 | |
| The Small Cap Opportunities Portfolio | | | 2 | | | | 0.00 | |
| The Market Opportunities Portfolio | | | 0 | | | | 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 331/3% of the total assets of each Portfolio (including any collateral posted) or 50% of the total assets of each 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 interest on the collateral received as well as a fee for the securities loaned.
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 Portfolio will be subject to taxation on its share of the Portfolio’s ordinary income and capital gains. It is intended that each
166
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
Master Portfolio’s assets will be managed so an investor in the 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 returns. As of June 30, 2009, open tax years include the tax years ended December 31, 2005 through 2008. The Portfolios have no examination in progress. The 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 accounting principles generally accepted in the United States of America 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 and interest income is recognized on the accrual basis. 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.
In preparing these financial statements, the Trust has evaluated events and transactions for potential recognition or disclosure through August 28, 2009, the date the financial statements were available to be issued.
3. Investment Adviser
The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management, Inc. (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Master Portfolios. Under the terms of the Agreements, the Master Portfolios compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets, except for The Kinetics Government Money Market Portfolio, which compensates the Adviser at a rate of 0.50% of the Master Portfolio’s average daily net assets. For the six months ended June 30, 2009, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Kinetics Government Money Market Portfolio, The Market Opportunities
167
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
Portfolio, The Water Infrastructure Portfolio and The Multi-Disciplinary Portfolio incurred expenses of $472,490, $14,407, $7,339,430, $112,233, $1,258,763, $6,127, $321,972, $94,661 and $4,202, respectively, pursuant to the Investment Advisory Agreements.
For the six months ended June 30, 2009, the Trust was allocated $12,000 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 18, 2009, the Board, including all of the Trustees who are not interested persons under the 1940 Act (the “Independent Trustees”), approved the investment advisory agreements with respect to the Internet, Global, Paradigm, Medical, Small Cap Opportunities, Government Money Market, Market Opportunities, Water Infrastructure and Multi-Disciplinary Portfolios (collectively, the “Advisory Agreements”). 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, 2008, 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 Advisory 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, 2008; (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 other than the Government Money Market Portfolio, is designed for long-term investors. The Lipper peer group information was provided by U.S. Bancorp Fund Services, LLC, the Company’s administrator.
168
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
In addition, the Board of Trustees, including all of the Independent Trustees, approved, subject to shareholder approval, a new investment sub-advisory agreement (the “Sub-Advisory Agreement”) for the Water Infrastructure Portfolio with Brennan Investment Partners LLC (the “Sub-Adviser”). The Board noted that William S. Brennan, the Water Infrastructure Portfolio’s current lead portfolio manager, would continue to be responsible for the day-to-day management of the Portfolio under the Sub-Advisory Agreement. In reaching a decision to approve the Sub-Advisory Agreement, the Board of Trustees, including all of the Independent Trustees, considered their legal responsibilities with regard to all factors deemed to be relevant to the Water Infrastructure Portfolio, including, but not limited to the following: (1) the quality of services provided by Mr. Brennan as lead portfolio manager to the Portfolio; (2) the performance of the Portfolio; (3) the fact that the current lead portfolio manager will continue to manage the Portfolio; (5) the fact that the sub-advisory fees would be paid by the Adviser and would not affect the Portfolio’s expenses; and (6) other factors deemed relevant.
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 and the quality of services to be provided by the Sub-Adviser in sub-advising the Water Infrastructure Portfolio, the profits earned by the Adviser were reasonable in light of the nature, extent and quality of the services provided to 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 Advisory Agreements and approve the Sub-Advisory Agreement.
169
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
5. Securities Transactions
Purchases and sales of investment securities, other than short-term investments, for the six months ended June 30, 2009 were as follows:
| | | | | | | | | | | | | | | | | |
| | | Purchases | | Sales |
| | | U.S.
| | | | U.S.
| | |
| | | Government | | Other | | Government | | Other |
| |
| The Internet Portfolio | | $ | — | | | $ | 28,174,465 | | | $ | — | | | $ | 9,789,718 | |
| The Global Portfolio | | | — | | | | 806,750 | | | | — | | | | 7,575 | |
| The Paradigm Portfolio | | | — | | | | 165,208,858 | | | | — | | | | 255,839,919 | |
| The Medical Portfolio | | | — | | | | 789,211 | | | | — | | | | 1,934,615 | |
| The Small Cap Opportunities Portfolio | | | — | | | | 7,323,705 | | | | — | | | | 37,164,898 | |
| The Market Opportunities Portfolio | | | — | | | | 6,689,826 | | | | — | | | | 12,780,002 | |
| The Water Infrastructure Portfolio | | | — | | | | 3,025,054 | | | | — | | | | 6,187,380 | |
| The Multi-Disciplinary Portfolio | | | — | | | | 589,660 | | | | — | | | | 101,506 | |
As of December 31, 2008, the cost of investments and unrealized appreciation (depreciation) on investment securities for federal income tax purposes was as follows:
| | | | | | | | | | | | | | | | | |
| | | Net
| | | | | | |
| | | Appreciation
| | Appreciated
| | Depreciated
| | Cost of
|
| | | (Depreciation) | | Securities | | Securities | | Investments |
| |
| The Internet Portfolio | | $ | (4,728,350 | ) | | $ | 17,105,172 | | | $ | (21,833,522 | ) | | $ | 90,375,687 | |
| The Global Portfolio | | | (1,582,501 | ) | | | 106,183 | | | | (1,688,684 | ) | | | 3,619,031 | |
| The Paradigm Portfolio | | | (726,005,644 | ) | | | 264,492,612 | | | | (990,498,256 | ) | | | 2,405,862,512 | |
| The Medical Portfolio | | | (5,080,995 | ) | | | 2,239,772 | | | | (7,320,767 | ) | | | 28,836,087 | |
| The Small Cap Opportunities Portfolio | | | (144,414,279 | ) | | | 12,469,251 | | | | (156,883,530 | ) | | | 404,033,112 | |
| The Kinetics Government Money Market Portfolio | | | — | | | | — | | | | — | | | | 2,632,995 | |
| The Market Opportunities Portfolio | | | (29,817,903 | ) | | | 3,200,781 | | | | (33,018,684 | ) | | | 101,772,073 | |
| The Water Infrastructure Portfolio | | | (3,389,852 | ) | | | 903,572 | | | | (4,293,424 | ) | | | 20,943,749 | |
| The Multi-Disciplinary Portfolioˆ | | | (902 | ) | | | — | | | | (902 | ) | | | 345,251 | |
170
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
The difference between book basis and tax basis unrealized appreciation/depreciation was attributable primarily to wash loss deferrals, PFIC adjustments and partnership adjustments.
For the six months ended June 30, 2009, the Master Portfolios wrote the following options:
| | | | | | | | | |
| | | Number
| | Premium
|
| | | of Contracts | | Amount |
| |
The Internet Portfolio
| | | | | | | | |
| Outstanding at the Beginning of Year | | | 40 | | | $ | 361,078 | |
| Options Written | | | — | | | | — | |
| | | | | | | | | |
| Outstanding at June 30, 2009 | | | 40 | | | $ | 361,078 | |
| | | | | | | | | |
The Medical Portfolio
| | | | | | | | |
| Outstanding at the Beginning of Year | | | 40 | | | $ | 19,470 | |
| Options Expired | | | (40 | ) | | | (19,470 | ) |
| | | | | | | | | |
| Outstanding at June 30, 2009 | | | — | | | $ | — | |
| | | | | | | | | |
The Small Cap Opportunities Portfolio
| | | | | | | | |
| Outstanding at the Beginning of Year | | | 20 | | | $ | 3,940 | |
| Options Exercised | | | (20 | ) | | | (3,940 | ) |
| | | | | | | | | |
| Outstanding at June 30, 2009 | | | — | | | $ | — | |
| | | | | | | | | |
The Market Opportunities Portfolio
| | | | | | | | |
| Outstanding at the Beginning of Year | | | 20 | | | $ | 180,539 | |
| Options Written | | | — | | | | — | |
| | | | | | | | | |
| Outstanding at June 30, 2009 | | | 20 | | | $ | 180,539 | |
| | | | | | | | | |
The Multi-Disciplinary Portfolio
| | | | | | | | |
| Outstanding at the Beginning of the Year | | | 102 | | | $ | 43,279 | |
| Options Written | | | 448 | | | | 135,170 | |
| Options Exercised | | | (67 | ) | | | (21,664 | ) |
| Options Expired | | | (49 | ) | | | (19,030 | ) |
| Options Closed | | | (5 | ) | | | (4,602 | ) |
| | | | | | | | | |
| Outstanding at June 30, 2009 | | | 429 | | | $ | 133,153 | |
| | | | | | | | | |
6. Portfolio Securities Loaned
As of June 30, 2009, 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
171
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
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, 2009, were as follows:
| | | | | | | | | |
| | | Securities | | Collateral |
| |
| The Internet Portfolio | | $ | 32,986,828 | | | $ | 34,839,206 | |
| The Global Portfolio | | | 184,695 | | | | 198,369 | |
| The Paradigm Portfolio | | | 368,525,822 | | | | 392,287,830 | |
| The Medical Portfolio | | | 5,681,624 | | | | 6,046,114 | |
| The Small Cap Opportunities Portfolio | | | 35,318,791 | | | | 39,503,267 | |
| The Market Opportunities Portfolio | | | 16,529,909 | | | | 17,829,171 | |
| The Water Infrastructure Portfolio | | | 1,814,349 | | | | 1,911,452 | |
| The Multi-Disciplinary Portfolio | | | — | | | | — | |
7. Selected Financial Highlights
Financial highlights for the Master Portfolios were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Internet Portfolio |
| | | For the
| | | | | | | | | | |
| | | Six Months
| | For the
| | For the
| | For the
| | For the
| | For the
|
| | | Ended
| | Year Ended
| | Year Ended
| | Year Ended
| | Year Ended
| | Year Ended
|
| | | June 30,
| | December 31,
| | December 31,
| | December 31,
| | December 31,
| | December 31,
|
| | | 2009
| | 2008
| | 2007
| | 2006
| | 2005
| | 2004
|
| | | (Unaudited) | | | | | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.39% | (1) | | | 1.34% | | | | 1.34% | | | | 1.39% | | | | 1.45% | | | | 1.50% | |
| After expense reduction | | | 1.39% | (1) | | | 1.34% | | | | 1.33% | | | | 1.33% | | | | 1.44% | | | | 1.44% | |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.13% | (1) | | | 1.59% | | | | 1.58% | | | | 0.17% | | | | 1.35% | | | | 1.30% | |
| After expense reduction | | | 0.13% | (1) | | | 1.59% | | | | 1.59% | | | | 0.23% | | | | 1.36% | | | | 1.36% | |
| Portfolio turnover rate | | | 15% | | | | 19% | | | | 15% | | | | 11% | | | | 12% | | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Global Portfolio | |
| | | For the
| | | | | | | | | | | | | | | | |
| | | Six Months
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2009
| | | 2008
| | | 2007
| | | 2006
| | | 2005
| | | 2004
| |
| | | (Unaudited) | | | | | | | | | | | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 2.29% | (1) | | | 2.46% | | | | 1.99% | | | | 1.62% | | | | 1.73% | | | | 1.78% | |
| After expense reduction | | | 2.29% | (1) | | | 2.46% | | | | 1.98% | | | | 1.46% | | | | 1.72% | | | | 1.73% | |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.85% | (1) | | | 0.83% | | | | 3.73% | | | | 2.78% | | | | 4.30% | | | | 2.77% | |
| After expense reduction | | | 0.85% | (1) | | | 0.83% | | | | 3.74% | | | | 2.94% | | | | 4.31% | | | | 2.82% | |
| Portfolio turnover rate | | | 0% | | | | 98% | | | | 22% | | | | 10% | | | | 2% | | | | 18% | |
172
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Paradigm Portfolio | |
| | | For the
| | | | | | | | | | | | | | | | |
| | | Six Months
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2009
| | | 2008
| | | 2007
| | | 2006
| | | 2005
| | | 2004
| |
| | | (Unaudited) | | | | | | | | | | | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.37% | (1) | | | 1.33% | | | | 1.33% | | | | 1.40% | | | | 1.45% | | | | 1.52% | |
| After expense reduction | | | 1.37% | (1) | | | 1.33% | | | | 1.33% | | | | 1.32% | | | | 1.40% | | | | 1.42% | |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.50% | (1) | | | 0.86% | | | | 0.75% | | | | 0.85% | | | | 0.07% | | | | (0.18% | ) |
| After expense reduction | | | 1.50% | (1) | | | 0.86% | | | | 0.75% | | | | 0.93% | | | | 0.12% | | | | (0.08% | ) |
| Portfolio turnover rate | | | 14% | | | | 34% | | | | 8% | | | | 3% | | | | 5% | | | | 52% | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Medical Portfolio | |
| | | For the
| | | | | | | | | | | | | | | | |
| | | Six Months
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2009
| | | 2008
| | | 2007
| | | 2006
| | | 2005
| | | 2004
| |
| | | (Unaudited) | | | | | | | | | | | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.45% | (1) | | | 1.42% | | | | 1.49% | | | | 1.44% | | | | 1.50% | | | | 1.58% | |
| After expense reduction | | | 1.45% | (1) | | | 1.42% | | | | 1.40% | | | | 1.34% | | | | 1.49% | | | | 1.57% | |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.53% | (1) | | | 1.02% | | | | 0.42% | | | | 0.33% | | | | (0.17% | ) | | | (0.33% | ) |
| After expense reduction | | | 1.53% | (1) | | | 1.02% | | | | 0.51% | | | | 0.43% | | | | (0.16% | ) | | | (0.32% | ) |
| Portfolio turnover rate | | | 4% | | | | 28% | | | | 38% | | | | 20% | | | | 2% | | | | 13% | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Small Cap Opportunities Portfolio | |
| | | For the
| | | | | | | | | | | | | | | | |
| | | Six Months
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2009
| | | 2008
| | | 2007
| | | 2006
| | | 2005
| | | 2004
| |
| | | (Unaudited) | | | | | | | | | | | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.41% | (1) | | | 1.36% | | | | 1.34% | | | | 1.40% | | | | 1.48% | | | | 1.55% | |
| After expense reduction | | | 1.41% | (1) | | | 1.36% | | | | 1.31% | | | | 1.27% | | | | 1.37% | | | | 1.21% | |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.26% | (1) | | | 0.51% | | | | 0.38% | | | | 0.30% | | | | 0.46% | | | | 1.51% | |
| After expense reduction | | | 0.26% | (1) | | | 0.51% | | | | 0.41% | | | | 0.43% | | | | 0.57% | | | | 1.85% | |
| Portfolio turnover rate | | | 4% | | | | 16% | | | | 17% | | | | 6% | | | | 4% | | | | 96% | |
173
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | The Kinetics Government
| |
| | | Money Market Portfolio | |
| | | For the
| | | | | | | | | | | | | | | | |
| | | Six Months
| | | For the
| | | For the
| | | For the
| | | For the
| | | For the
| |
| | | Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| | | Year Ended
| |
| | | June 30,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| | | December 31,
| |
| | | 2009
| | | 2008
| | | 2007
| | | 2006
| | | 2005
| | | 2004
| |
| | | (Unaudited) | | | | | | | | | | | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.92 | %(1) | | | 1.24% | | | | 2.22% | | | | 1.56% | | | | 1.37% | | | | 0.83% | |
| After expense reduction | | | 0.92 | %(1) | | | 1.24% | | | | 2.22% | | | | 1.17% | | | | 1.37% | | | | 0.83% | |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Before expense reduction | | | (0.83 | )%(1) | | | 0.33% | | | | 2.47% | | | | 3.13% | | | | 1.58% | | | | 0.18% | |
| After expense reduction | | | (0.83 | )%(1) | | | 0.33% | | | | 2.47% | | | | 3.52% | | | | 1.58% | | | | 0.18% | |
| Portfolio turnover rate | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | |
| | | The Market Opportunities Portfolio |
| | | For the
| | | | | | |
| | | Six Months
| | For the
| | For the
| | January 31,
|
| | | Ended
| | Year Ended
| | Year Ended
| | 2006ˆ through
|
| | | June 30,
| | December 31,
| | December 31,
| | December 31,
|
| | | 2009
| | 2008
| | 2007
| | 2006
|
| | | (Unaudited) | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.42% | (1) | | | 1.36% | | | | 1.44% | | | | 1.81%(1 | ) |
| After expense reduction | | | 1.42% | (1) | | | 1.36% | | | | 1.44% | | | | 1.61%(1 | ) |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 0.65% | (1) | | | 1.25% | | | | 0.61% | | | | 0.16%(1 | ) |
| After expense reduction | | | 0.65% | (1) | | | 1.25% | | | | 0.61% | | | | 0.36%(1 | ) |
| Portfolio turnover rate | | | 13% | | | | 77% | | | | 14% | | | | 0% | |
| | | | | | | | | | | | | | | | | |
| | | The Water Infrastructure Portfolio | | |
| | | For the
| | For the
| | June 29,
| | |
| | | Six Months
| | Year Ended
| | 2007ˆ through
| | |
| | | Ended
| | December 31,
| | December 31,
| | |
| | | June 30, 2009
| | 2008
| | 2007
| | |
| | | (Unaudited) | | | | | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.51% | (1) | | | 1.49% | | | | 2.01%(1 | ) | | | | |
| After expense reduction | | | 1.51% | (1) | | | 1.49% | | | | 2.01%(1 | ) | | | | |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | |
| Before expense reduction | | | 1.09% | (1) | | | 1.27% | | | | 0.96%(1 | ) | | | | |
| After expense reduction | | | 1.09% | (1) | | | 1.27% | | | | 0.96%(1 | ) | | | | |
| Portfolio turnover rate | | | 22% | | | | 66% | | | | 7% | | | | | |
174
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
| | | | | | | | | | | |
| | | The Multi-Disciplinary Portfolio |
| | | For the
| | |
| | | Six Months
| | February 11, 2008ˆ
|
| | | Ended
| | through
|
| | | June 30,
| | December 31,
|
| | | 2009
| | 2008
|
| | | (Unaudited) | | |
| |
| Ratio of expenses to average net assets: | | | | | | | | | | |
| Before expense reduction | | | 4 | .29 | %(1) | | | 5 | .09 | %(1) |
| After expense reduction | | | 4 | .29 | %(1) | | | 5 | .09 | %(1) |
| Ratio of net investment income (loss) to average net assets: | | | | | | | | | | |
| Before expense reduction | | | (3 | .87) | % (1) | | | (3 | .49) | %(1) |
| After expense reduction | | | (3 | .87) | % (1) | | | (3 | .49) | %(1) |
| Portfolio turnover rate | | | 0% | | | | | N/A(2) | | |
| |
| ˆ | 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. |
8. Summary of Fair Value Exposure
Various inputs are used in determining the value of the Portfolios’ investments. These inputs are summarized in the three broad levels listed below:
Level 1 — Quoted prices in active markets for identical securities.
Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 — Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).
The Internet Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 80,691,405 | | | $ | 612,000 | (1) | | $ | 24,393 | (2) | | $ | 81,327,798 | |
| Escrow Notes | | | — | | | | — | | | | — | * | | | — | |
| Convertible Bonds | | | — | | | | 2,000,000 | | | | — | | | | 2,000,000 | |
| Rights | | | 1,310,979 | | | | — | | | | — | | | | 1,310,979 | |
| Short-Term Investments | | | 1,760,117 | | | | — | | | | — | | | | 1,760,117 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 34,839,206 | | | | — | | | | — | | | | 34,839,206 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 118,601,707 | | | $ | 2,612,000 | | | $ | 24,393 | | | $ | 121,238,100 | |
| | | | | | | | | | | | | | | | | |
| Put Options Written | | $ | (407,800 | ) | | $ | — | | | $ | — | | | $ | (407,800 | ) |
| | | | | | | | | | | | | | | | | |
| |
| * | Amount is less than $0.50. |
175
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
| |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investment in the following industry: |
| |
| (2) | The Common Stocks Level 3 balance consists of the market values of the associated Level 3 investments in the following industry: |
| | | | | |
| Special Purpose Entity | | $ | 24,393 | |
Following is a reconciliation of Level 3 assets for which significant unoberservable inputs were used to determine fair value:
| | | | | | | | | |
| | | | | Written
|
| | | Investments in
| | Option
|
Description | | Securities | | Contracts |
| |
| Balance as of December 31, 2008 | | $ | 634 | | | $ | — | |
| Accrued discounts/premiums | | | — | | | | — | |
| Realized gain (loss) | | | — | | | | — | |
| Change in unrealized appreciation (depreciation) | | | 23,759 | | | | — | |
| Net purchases (sales) | | | — | | | | — | |
Transfer in and/or out of Level 3 | | | — | | | | — | |
| | | | | | | | | |
| Balance as of June 30, 2009 | | $ | 24,393 | | | $ | — | |
| | | | | | | | | |
The Global Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 2,993,557 | | | $ | 468,750 | (1) | | $ | — | | | $ | 3,462,307 | |
| Preferred Stocks | | | 117 | | | | — | | | | — | | | | 117 | |
| Short-Term Investments | | | 219,728 | | | | — | | | | — | | | | 219,728 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 198,369 | | | | — | | | | — | | | | 198,369 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 3,411,771 | | | $ | 468,750 | | | $ | — | | | $ | 3,880,521 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | The Common Stocks Level 2 balance consists of the market values of the associated Level 2 investments in the following industries: |
| | | | | |
| Construction & Engineering | | $ | 21,000 | |
| Consumer Finance | | | 26,014 | |
| Diversified Consumer Services | | | 32,999 | |
| Diversified Financial Services | | | 49,024 | |
| Food | | | 5,337 | |
| Global Exchanges | | | 20,023 | |
| Hotels, Restaurants & Leisure | | | 6,894 | |
| Multiline Retail | | | 9,622 | |
| Oil, Gas & Consumable Fuels | | | 104,625 | |
| Real Estate | | | 30,338 | |
| Software | | | 88,400 | |
| Tobacco | | | 27,873 | |
| Transportation Infrastructure | | | 18,146 | |
| Utilities | | | 28,455 | |
| | | | | |
| | | $ | 468,750 | |
176
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
Following is a reconciliation of Level 3 assets for which significant unoberservable inputs were used to determine fair value:
| | | | | | | | | |
| | | | | Written
|
| | | Investments in
| | Option
|
Description | | Securities | | Contracts |
| |
| Balance as of December 31, 2008 | | $ | 54,120 | | | $ | — | |
| Accrued discounts/premiums | | | — | | | | — | |
| Realized gain (loss) | | | — | | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | | | | — | |
| Net purchases (sales) | | | — | | | | — | |
Transfer in and/or out of Level 3 | | | (54,120 | ) | | | — | |
| | | | | | | | | |
| Balance as of June 30, 2009 | | $ | — | | | $ | — | |
| | | | | | | | | |
The Paradigm Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 1,323,411,812 | | | $ | 1,202,750 | (1) | | $ | — | | | $ | 1,324,614,562 | |
| Escrow Notes | | | — | | | | — | | | | 4 | | | | 4 | |
| Convertible Bonds | | | — | | | | 10,121,000 | | | | — | | | | 10,121,000 | |
| Corporate Bonds | | | — | | | | 10,639,911 | | | | — | | | | 10,639,911 | |
| Short-Term Investments | | | 26,721,105 | | | | — | | | | — | | | | 26,721,105 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 388,408,656 | | | | — | | | | 3,879,174 | | | | 392,287,830 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 1,738,541,573 | | | $ | 21,963,661 | | | $ | 3,879,178 | | | $ | 1,764,384,412 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investment in the following industry: |
Following is a reconciliation of Level 3 assets for which significant unoberservable inputs were used to determine fair value:
| | | | | | | | | |
| | | Investments in
| | Written Option
|
Description | | Securities | | Contracts |
| |
| Balance as of December 31, 2008 | | $ | 12,901,309 | | | $ | — | |
| Accrued discounts/premiums | | | — | | | | — | |
| Realized gain (loss) | | | — | | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | | | | — | |
| Net purchases (sales) | | | (9,022,131 | ) | | | — | |
Transfer in and/or out of Level 3 | | | — | | | | — | |
| | | | | | | | | |
| Balance as of June 30, 2009 | | $ | 3,879,178 | | | $ | — | |
| | | | | | | | | |
177
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
The Medical Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 18,685,881 | | | $ | — | | | $ | — | | | $ | 18,685,881 | |
| Short-Term Investments | | | 623,194 | | | | — | | | | — | | | | 623,194 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 6,046,114 | | | | — | | | | — | | | | 6,046,114 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 25,355,189 | | | $ | — | | | $ | — | | | $ | 25,355,189 | |
| | | | | | | | | | | | | | | | | |
The Small Cap Opportunities Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 231,719,361 | | | $ | 3,266,771 | (1) | | $ | — | | | $ | 234,986,132 | |
| Escrow Notes | | | — | | | | — | | | | 2 | | | | 2 | |
| Corporate Bonds | | | — | | | | 215,757 | | | | — | | | | 215,757 | |
| Rights | | | 912,085 | | | | — | | | | — | * | | | 912,085 | |
| Short-Term Investments | | | 14,348,548 | | | | — | | | | — | | | | 14,348,548 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 39,503,267 | | | | — | | | | — | | | | 39,503,267 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 286,483,261 | | | $ | 3,482,528 | | | $ | 2 | | | $ | 289,965,791 | |
| | | | | | | | | | | | | | | | | |
| |
| * | Amount is less than $0.50. |
| |
| (1) | The Common Stocks Level 2 balance consists of the market values of the associated Level 2 investments in the following industries: |
| | | | | |
| Commercial Banks | | $ | 1,964,250 | |
| Diversified Telecommunication Services | | | 4,536 | |
| Oil, Gas & Consumable Fuels | | | 56,985 | |
| Software | | | 1,241,000 | |
| | | | | |
| | | $ | 3,266,771 | |
Following is a reconciliation of Level 3 assets for which significant unoberservable inputs were used to determine fair value:
| | | | | | | | | |
| | | | | Written
|
| | | Investments in
| | Option
|
Description | | Securities | | Contracts |
| |
| Balance as of December 31, 2008 | | $ | 6,301 | | | $ | — | |
| Accrued discounts/premiums | | | — | | | | — | |
| Realized gain (loss) | | | — | | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | | | | — | |
| Net purchases (sales) | | | — | | | | — | |
Transfer in and/or out of Level 3 | | | (6,299 | ) | | | — | |
| | | | | | | | | |
| Balance as of June 30, 2009 | | $ | 2 | | | $ | — | |
| | | | | | | | | |
178
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
The Government Money Market Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Short-Term Investments | | $ | — | | | $ | 1,899,957 | | | $ | — | | | $ | 1,899,957 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | — | | | $ | 1,899,957 | | | $ | — | | | $ | 1,899,957 | |
| | | | | | | | | | | | | | | | | |
The Market Opportunities Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 59,275,119 | | | $ | 611,281 | (1) | | $ | — | | | $ | 59,886,400 | |
| Rights | | | — | | | | — | | | | — | * | | | — | |
| Short-Term Investments | | | 683,390 | | | | — | | | | — | | | | 683,390 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 17,829,171 | | | | — | | | | — | | | | 17,829,171 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 77,787,680 | | | $ | 611,281 | | | $ | — | * | | $ | 78,398,961 | |
| | | | | | | | | | | | | | | | | |
| Put Options Written | | $ | (203,900 | ) | | $ | — | | | $ | — | | | $ | (203,900 | ) |
| | | | | | | | | | | | | | | | | |
| |
| * | Amount is less than $0.50. |
| |
| (1) | The Common Stocks Level 2 balance consists of the market values of the associated Level 2 investments in the following industries: |
| | | | | |
| Other Exchanges | | $ | 17,934 | |
| Software | | | 593,347 | |
| | | | | |
| | | $ | 611,281 | |
Following is a reconciliation of Level 3 assets for which significant unoberservable inputs were used to determine fair value:
| | | | | | | | | |
| | | Investments in
| | Written Option
|
Description | | Securities | | Contracts |
| |
| Balance as of December 31, 2008 | | $ | — | | | $ | — | |
| Accrued discounts/premiums | | | — | | | | — | |
| Realized gain (loss) | | | — | | | | — | |
| Change in unrealized appreciation (depreciation) | | | — | | | | — | |
| Net purchases (sales) | | | — | | | | — | |
Transfer in and/or out of Level 3 | | | — | * | | | — | |
| | | | | | | | | |
| Balance as of June 30, 2009 | | $ | — | * | | $ | — | |
| | | | | | | | | |
| |
| * | Amount is less than $0.50 |
179
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
The Water Infrastructure Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Common Stocks | | $ | 11,580,726 | | | $ | 193,317 | (1) | | $ | — | | | $ | 11,774,043 | |
| Short-Term Investments | | | 3,510,815 | | | | — | | | | — | | | | 3,510,815 | |
| Investments Purchased with the Cash | | | | | | | | | | | | | | | | |
| Proceeds from Securities Lending | | | 1,911,452 | | | | — | | | | — | | | | 1,911,452 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 17,002,993 | | | $ | 193,317 | | | $ | — | | | $ | 17,196,310 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investment in the following industry: |
| | | | | |
| Building Materials | | $ | 193,317 | |
The Multi-Disciplinary Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009:
| | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
| |
| Convertible Bonds | | $ | — | | | $ | 453,375 | | | $ | — | | | $ | 453,375 | |
| Call Options Purchased | | | 900 | | | | — | | | | — | | | | 900 | |
| Short-Term Investments | | | 198,221 | | | | 154,996 | (1) | | | — | | | | 353,217 | |
| | | | | | | | | | | | | | | | | |
| Total Investments in Securities | | $ | 199,121 | | | $ | 608,371 | | | $ | — | | | $ | 807,492 | |
| | | | | | | | | | | | | | | | | |
| Put Options Written | | $ | (43,395 | ) | | $ | — | | | $ | — | | | $ | (43,395 | ) |
| | | | | | | | | | | | | | | | | |
| |
| (1) | The Short-Term Investments Level 2 balance consists of the market value of the associated Level 2 investment in the following industry: |
| | | | | |
| US Government Agency Issues | | $ | 154,996 | |
9. Information about Proxy Voting
Information regarding how Kinetics Portfolios Trust 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.kineticsfund.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the 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.
180
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2009 (Unaudited)
10. Information about the Portfolio Holdings
The Kinetics Portfolios Trust file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Form N-Q. The 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. 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.
181
Kinetics Mutual
Funds, Inc.
615 East Michigan Street
Milwaukee, WI 53202
INVESTMENT ADVISER AND
SHAREHOLDER SERVICING AGENT
Kinetics Asset Management, Inc.
555 Taxter Road
Suite 175
Elmsford, NY 10523
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Tait, Weller & Baker LLP
1818 Market Street
Suite 2400
Philadelphia, PA 19103
DISTRIBUTOR
Kinetics Funds Distributor, Inc.
555 Taxter Road
Suite 175
Elmsford, NY 10523
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.
Not Applicable.
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”)) |
1
| | | 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. Filed herewith. |
2
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 September 4, 2009 |
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 September 4, 2009 |
| | | | | |
| | | |
| | By (Signature and Title)* | /s/ Leonid Polyakov | |
| | | Leonid Polyakov, Treasurer | |
| | | | |
| | Date September 4, 2009 |
| | |
| * | | Print the name and title of each signing officer under his or her signature. |
3
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295701.gif)
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295702.gif)
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295703.gif)
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295704.gif)
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295705.gif)
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295706.gif)
![[GRAPH IN %]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295707.gif)
![[GRAPH IN %]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295708.gif)
![[GRAPH IN %]](https://capedge.com/proxy/N-CSRS/0000950123-09-041179/c52957ac5295709.gif)