As filed with the Securities and Exchange Commission on March 10, 2015
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09303 & 811-09923
Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust
(Exact name of registrant as specified in charter)
470 Park Avenue South
New York, NY 10016
(Address of principal executive offices) (Zip code)
U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(Name and address of agent for service)
(800) 930-3828
Registrant's telephone number, including area code
Date of fiscal year end: December 31, 2014
Date of reporting period: December 31, 2014
Item 1. Report to Stockholders.
| KINETICS MUTUAL FUNDS, INC. |
| Table of Contents |
| December 31, 2014 |
| Page | |
| Shareholders’ Letter | 2 |
| Year 2014 Annual Investment Commentary | 5 |
| KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS | |
| Growth of $10,000 Investment | 9 |
| Expense Example | 20 |
| Statements of Assets & Liabilities | 26 |
| Statements of Operations | 30 |
| Statements of Changes in Net Assets | 34 |
| Notes to Financial Statements | 45 |
| Financial Highlights | 60 |
| Report of Independent Registered Public Accounting Firm | 89 |
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS | |
| Allocation of Portfolio Assets | 90 |
| Portfolio of Investments — The Internet Portfolio | 98 |
| Portfolio of Investments — The Global Portfolio | 103 |
| Portfolio of Investments — The Paradigm Portfolio | 108 |
| Portfolio of Investments — The Medical Portfolio | 115 |
| Portfolio of Investments — The Small Cap Opportunities Portfolio | 118 |
| Portfolio of Investments — The Market Opportunities Portfolio | 123 |
| Portfolio of Investments — The Alternative Income Portfolio | 128 |
| Portfolio of Investments — The Multi-Disciplinary Income Portfolio | 139 |
| Portfolio of Options Written — The Alternative Income Portfolio | 150 |
| Portfolio of Options Written — The Multi-Disciplinary Income Portfolio | 184 |
| Statements of Assets & Liabilities | 194 |
| Statements of Operations | 198 |
| Statements of Changes in Net Assets | 202 |
| Notes to Financial Statements | 206 |
| Report of Independent Registered Public Accounting Firm | 234 |
| Management of the Funds and the Portfolios | 235 |
| Privacy Policy | 243 |
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| KINETICS MUTUAL FUNDS, INC. |
| Shareholders’ Letter |
Dear Fellow Shareholders:
We are pleased to present the Kinetics Mutual Funds (“Funds”) Annual Report for the twelve-month period ended December 31, 2014. Equity markets continued to advance in 2014, marking the sixth consecutive annual gain for the S&P 500 Index (“S&P 500”), with gains in excess of 10% in five of those six years. Incremental improvement in company fundamentals and the U.S. economy surely contributed to the positive return; however, that is not to say that the fundamentals of the average S&P 500 company actually improved by this magnitude. To the contrary, we believe that valuation multiples expanded less as a function of business improvement, and more as the result of increased investor desire for perceived stability or safety. Our belief is supported by the fact that large cap stocks (as measured by the S&P 500) outperformed small cap stocks (as measured by the Russell 2000 Index) by nearly 900 basis points for the year. Horizon Kinetics LLC, parent company to Kinetics Asset Management LLC (“Kinetics”), tends to source investment ideas in higher growth companies; these tend not to be amongst the largest corporations in the economy. Thus, the market’s apparent desire for safety in 2014 was to the detriment of our annual returns. The Funds generated returns as follows during the year (No Load Class): The Paradigm Fund -0.79%, The Multi-Disciplinary Income Fund +2.46%, The Small Cap Opportunities Fund -7.28%, The Market Opportunities Fund -5.55%, The Internet Fund -0.16%, The Medical Fund +16.44%, The Alternative Income Fund +1.50% and The Global Fund -11.89%. This compares to returns of +13.69% for the S&P 500, +4.89% for the Russell 2000 Index, +1.12% for the Barclays 1-3 year U.S. Credit Bond Index, +5.97% for the Barclays U.S. Aggregate Bond Index, and +4.16% for the MSCI All Country World Index.
We attempt to achieve long-term investment returns that are attractive on an absolute basis, while also outperforming our respective peer investors and reference benchmarks. In order to accomplish these objectives, we utilize a repeatable investment process that we believe will unearth excellent companies that are trading at inexpensive valuations. However, unlike many of our peer investors, we do not begin our investment search by evaluating the benchmark index constituents. In fact, we believe that there is considerable value in looking beyond such companies. Our process has been very effective over the long term, but no single investment strategy can reasonably be expected to outperform during every environment. The current environment has proven to be challenging for our strategies, but we view the factors driving this dislocation as temporary in nature. Accordingly, we have
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no intention of altering our process, and we continue to believe in the investments of our Funds.
The trend toward passive investment continues unabated: in 2014, investors withdrew $55 billion from conventional mutual funds while investing $140 billion into exchange-traded funds (“ETFs”). In the short term, these fund flows result in inflated valuations for the companies that comprise the respective indexes. To the extent that the redeemed active managers own companies that are not included in the indexes, the process also has the result of compressing the valuations of those companies. Of course, there is a natural temptation to follow these trends and ride the index companies higher. However; the duration, magnitude and timing of this trend remain to be seen. In our opinion, the largest weights in many of the major indexes appear to be trading at extended valuations which, though supported by flows into ETFs in the near term, do not seem to be sustainable in the face of slowing top-line growth, among other obstacles. Timing the markets is not a viable strategy, in our view. Furthermore, we are comfortable investing where others are not; in fact, that is our preference. We are happy to allocate assets to companies that we believe will compound shareholder value over an extended horizon, though patience may be required for the stock price of such companies to reflect their intrinsic value.
Shareholders can continue to access additional information from our website, www.kineticsfunds.com. This website provides a broad array of information, including recent portfolio holdings, quarterly investment commentaries, conference call transcripts, newsflashes, recent performance data, and online access to account information.
Kinetics offers the following funds to investors:
The Paradigm Fund focuses on companies that we believe are valued attractively and currently have, or are expected to soon have, sustainable high business returns. The Fund has produced attractive risk adjusted returns since its inception, while maintaining amongst the lowest turnover rates in the industry. The Fund is Kinetics’ flagship fund.
The Multi-Disciplinary Income Fund seeks to utilize stock options and fixed-income investments in order to provide investors with equity-like returns, but
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with more muted volatility. At times, the options strategies of the Fund may cause the manager to purchase equity securities.
The Small Cap Opportunities Fund focuses on undervalued and special situation small capitalization equities that we believe have the potential for rewarding long-term investment results. The same investment fundamentals employed by The Paradigm Fund are used to identify such opportunities.
The Medical Fund is a sector fund, offering an investment in scientific discovery within the promising field of medical research, particularly in the development of cancer treatments and therapies. As a sector fund, the Fund is likely to have heightened volatility.
The Internet Fund is a sector fund that focuses on companies engaged in the evolution of internet-related developments. As such, this Fund has been, and is likely to continue to be, quite volatile. The Fund is not designed to be a major component of one’s equity exposure. More recently, this Fund has been focusing on content companies, which we believe will be the winners in the next generation of Internet development.
The Global Fund is focused on selecting long life cycle international companies that we believe can generate long-term wealth through their business operations. This Fund is presently identifying exciting opportunities in the more developed markets.
The Market Opportunities Fund focuses on those companies that benefit from increasing transactional volume or throughput, such as publicly-traded exchanges and credit card processors, or companies that act as facilitators, such as gaming companies, airports and publicly-traded toll roads.
The Alternative Income Fund seeks to provide current income and gains, with a secondary objective of obtaining long-term growth of capital. The Fund utilizes stock options and fixed-income investments and seeks to generate a total return that exceeds most short-term U.S. fixed income indexes, with limited market value variability.
The Kinetics Investment Team
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| KINETICS MUTUAL FUNDS, INC. |
| Investment Commentary |
Dear Fellow Shareholders,
The aggregate amount of resources that investors allocate to equity investing is ostensibly limitless. Consider that Blackrock, Inc., the largest asset management company in the world, oversees more than $4.5 trillion of capital, has a market capitalization of over $80 billion and has over 12,000 employees. Over the twelve-month period ended September 30, 2014, Blackrock recorded nearly $7 billion of expenses related to its asset management business. If investment returns were determined simply by the amount of resources dedicated to the process, there would be no reason to look beyond Blackrock. However, time has shown that size and resources are not very predictive of superior investment returns. In fact, many of the largest managers, with the greatest amount of resources available, tend to generate returns that are not materially different from their respective benchmark indexes. This is logical, as most managers begin their investment process by evaluating the reference benchmark and selecting from companies within it for investment. This is particularly true for managers that cater to large institutions. There is very little potential for these managers to add value by attempting to emulate more traditional investment processes. The same applies within the context of lower cost exchange traded fund (ETF) alternatives, which provide very similar exposure to their benchmarks, as well as to the indexes which they seek to track. An investor who tries to outperform a benchmark by selecting amongst its components is all but guaranteed to have very high correlation to said benchmark and is unlikely to deviate in any material way in terms of performance. Perhaps this is a sound business strategy for asset retention, but surely not for superior investment results.
Why would we wish to emulate an index that can be recreated at nearly zero cost, or attempt to compete with managers the size of Blackrock? A far more attractive alternative, in our opinion, is to find securities that are not included in the indexes, and hence, are largely ignored by most investors. As a function of not belonging to an index, many of these businesses are priced at material discounts to comparable companies included in the indexes. To the extent that fundamentals—not fund flows or sentiment—drive long-term security prices, we believe that the discounts at which these companies trade are not permanent. It seems all but certain that other investors recognize this valuation divide, but most ignore the opportunity that we are embracing due to the lack of a perceived catalyst. We believe that the uncertainty regarding the timing of an investment’s payout is critical to the undervaluation of its shares; we refer to this as the “equity yield curve.” Historically, our portfolios have been populated by companies that are at various stages of the equity yield curve; hence, performance is smoother than one might expect. However, there are periods when these dynamics do not materialize smoothly; hence, we can experience considerable deviations from index returns (both positive and negative).
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Horizon Kinetics LLC, parent company to Kinetics Asset Management LLC, has followed, through its subsidiary investment advisers, a very similar investment process dating back to its subsidiaries’ inception over 20 years ago. This is important, as the process has not changed as a result of indexation, but it has always led us to investments in companies that are overlooked by most investors. For example, spin-off securities have historically traded at a discount because institutional investors did not care to understand the spun-off business and simply sold without any analysis. One might hypothesize that this opportunity is no longer available as investors have become more sophisticated and information more widely disseminated, but we believe the inverse is true; spin-off pricing remains inefficient due to index rules that tend to underweight or exclude spin-offs. Owner-operators are a similar example, as these companies are undervalued due to a limited share float, making the companies unattractive to indexes and large institutional investors. Prior to the recent market share gains by ETFs and index investing, owner operators were frequently valued at a premium to the overall market, and deservedly so. Why not pay a premium for a superior capital allocator? Though such companies have always been represented in the portfolios, we would have owned more of them historically had they been available at the low valuation multiples that exist now.
Ultimately, the investment team at Horizon Kinetics attempts to purchase good or great businesses at a fair or low valuation multiple. However, good and great businesses are seldom available at attractive prices; thus, we look for areas that are prone to structural, inefficient pricing. The previously mentioned owner-operators and spin-offs are but two examples of many predictive attributes for such mispricing and future performance. As a result of investing so differently from common practice, we recognize that there will be periods of both considerable outperformance and underperformance, but we believe that over the long term, our cumulative performance will be superior to any reference benchmark. In our belief, it is very hard to foresee a scenario where the large and fully valued S&P 500 Index constituent companies outperform our portfolios over the long term, and we view the current performance as an anomaly and a buying opportunity.
We believe that our investment process, complete with conservative assessments and high discount rates, embeds an attractive risk/reward profile in the investments. For investors who may be even more risk averse (compared to our high hurdle discount rates), we urge these individuals to consider our option income strategies, which seek to provide equity-like returns, with lowered realized volatility and greater downside protection. In our opinion, these strategies offer benefits compared to conventional yield-oriented strategies such as traditional bonds, leveraged loans, real estate investment trusts, and master limited partnerships.
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Disclosure
This material is intended to be reviewed in conjunction with a current prospectus, which includes all fees and expenses that apply to a continued investment, as well as information regarding the risk factors, policies and objectives of the Funds. Read it carefully before investing.
Mutual Fund investing involves risk. Principal loss is possible. Because The Internet Fund, The Medical Fund and The Market Opportunities Fund invest in a single industry or geographic region, their shares are subject to a higher degree of risk than funds with a higher level of diversification. Internet, biotechnology and certain capital markets or gaming stocks are subject to a rate of change in technology, obsolescence and competition that is generally higher than that of other industries, hence they may experience extreme price and volume fluctuations.
International investing [for all Funds] presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. Accordingly, the share prices for these Funds are expected to be more volatile than that of U.S.-only funds. Past performance is no guarantee of future performance.
Because smaller companies [for The Small Cap Opportunities Fund] often have narrower markets and limited financial resources, they present more risk than larger, more well established, companies.
Non-investment grade debt securities [for all Funds], i.e., junk bonds, are subject to greater credit risk, price volatility and risk of loss than investment grade securities.
Further, options contain special risks including the imperfect correlation between the value of the option and the value of the underlying asset. Investments [for The Multi-Disciplinary Income Fund and The Alternative Income Fund] in futures, swaps and other derivative instruments may result in loss as derivative instruments may be illiquid, difficult to price and leveraged so that small changes may produce disproportionate losses to the Funds. To the extent the Funds segregate assets to cover derivative positions, they may impair their ability to meet current obligations, to honor requests for redemption and to manage the investments in a manner consistent with their respective investment objectives. Purchasing and writing put and call
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options and, in particular, writing “uncovered” options are highly specialized activities that entail greater than ordinary investment risk.
As non-diversified Funds [except The Global Fund and The Multi-Disciplinary Income Fund] the value of Fund shares may fluctuate more than shares invested in a broader range of industries and companies. Unlike other investment companies that directly acquire and manage their own portfolios of securities, The Kinetics Mutual Funds pursue their investment objectives by investing all of their investable assets in a corresponding portfolio series of the Kinetics Portfolios Trust.
The information concerning the Funds included in the shareholder report contains certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
The Nasdaq Composite (NASDAQ) and the Standard & Poor’s 500 Index (S&P 500) each represent an unmanaged, broad-basket of stocks. They are typically used as a proxy for overall market performance.
Distributor: Kinetics Funds Distributor LLC is not an affiliate of Kinetics Mutual Funds, Inc. Kinetics Funds Distributor LLC is an affiliate of Kinetics Asset Management LLC, Investment Adviser to Kinetics Mutual Funds, Inc.
For more information, log onto www.kineticsfunds.com. January 1, 2015 — Kinetics Asset Management LLC®
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| How a $10,000 Investment Has Grown: | |
| The charts show the growth of a $10,000 investment in the Feeder Funds as compared to the performance of two or more representative market indices. The tables below the charts show the average annual total returns on an investment over various periods. Returns for periods greater than one year are average annual total returns. The annual returns assume the reinvestment of all dividends and distributions, however, the graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Past performance is not predictive of future performance. Current performance may be lower or higher than the returns quoted below. The performance data reflects voluntary fee waivers and expense reimbursements made by the Adviser and the returns would have been lower if these waivers and expense reimbursements were not in effect. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original costs. | |
The S&P 500 Index — is a capital-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange. The S&P 500 is unmanaged and includes the reinvestment of dividends and does not reflect the payments of transaction costs and advisory fees associated with an investment in the Funds. The securities that comprise the S&P 500 may differ substantially from the securities in the Funds’ portfolios. It is not possible to directly invest in an index. | |
The NASDAQ Composite Index — is a broad-based capitalization-weighted index of all NASDAQ stocks. The NASDAQ is unmanaged and does not include the reinvestment of dividends and does not reflect the payment of transaction costs or advisory fees associated with an investment in the Funds. The securities that comprise the NASDAQ Composite may differ substantially from the securities in the Funds’ portfolios. It is not possible to directly invest in an index. | |
The MSCI ACWI (All Country World Index) Index — is a free float- adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of June 2, 2014, the MSCI ACWI consists of 46 country indices comprising 23 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The | |
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| emerging market country indices included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. The securities that compromise the MSCI ACWI may differ substantially from the securities in the Funds’ portfolios. It is not possible to directly invest in an index. | |
The Russell 2000® Index — is a subset of the Russell 3000 Index® representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. The securities that compromise the Russell 2000 may differ substantially from the securities in the Funds’ portfolio. It is not possible to directly invest in an index. | |
The MSCI EAFE® Index (Europe, Australasia, Far East) — is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. As of June 2, 2014, the MSCI EAFE® Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The securities that compromise the MSCI EAFE® may differ substantially from the securities in the Funds’ portfolio. It is not possible to directly invest in an index. | |
The Barclays U.S. 1-3 Year Credit Index — measures the performance of investment grade corporate debt and sovereign, supranational, local authority and non-U.S. agency bonds that are U.S. dollar denominated and have a remaining maturity of greater than or equal to one year and less than three years. The securities that compromise the Barclays U.S. 1-3 Year Credit Index may differ substantially from the securities in the Funds’ portfolio. It is not possible to directly invest in an index. | |
The Barclays U.S. Aggregate Bond Index — covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The Index includes multiple types of government and corporate-issued bonds, some of which are asset-backed. The securities that compromise the Barclays U.S. Aggregate Bond Index may differ substantially from the securities in the Funds’ portfolio. It is not possible to directly invest in an index. | |
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CBOE S&P 500 BuyWrite Index (BXM) — is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500. The securities that comprise the CBOE S&P 500 BuyWrite Index may differ substantially from the securities in the Fund’s portfolio. It is not possible to directly invest in an index. | |
CBOE S&P 500 PutWrite Index (PUT) — is a benchmark index designed to track the performance of a passive program that sells near-term, at-the-money S&P 500 Index puts. The securities that comprise the CBOE S&P 500 PutWrite Index may differ substantially from the securities in the Fund’s portfolio. It is not possible to directly invest in an index. | |
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The Internet Fund
December 31, 2004 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||
| Advisor | Advisor | |||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | NASDAQ | ||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | S&P 500 | Composite | |||||||||||||||||||
| One Year | -0.16 | % | -0.41 | % | -6.14 | % | -0.86 | % | 13.69 | % | 13.40 | % | ||||||||||||
| Five Years | 16.09 | % | 15.81 | % | 14.45 | % | 15.24 | % | 15.45 | % | 15.85 | % | ||||||||||||
| Ten Years | 10.15 | % | 9.99 | % | 9.34 | % | N/A | 7.67 | % | 8.09 | % | |||||||||||||
| Since Inception | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| (10/21/96) | 15.40 | % | N/A | N/A | N/A | 8.00 | % | 7.66 | % | |||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| Advisor | ||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||
| (4/26/01) | N/A | 7.74 | % | 7.28 | % | N/A | 5.88 | % | 6.37 | % | ||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| Advisor | ||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||
| (2/16/07) | N/A | N/A | N/A | 10.12 | % | 6.78 | % | 8.48 | % | |||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average annual total returns.
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The Global Fund
December 31, 2004 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||
| Advisor | Advisor | |||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | |||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | S&P 500 | MSCI ACWI | |||||||||||||||||||
| One Year | -11.89 | % | -11.93 | % | -17.02 | % | -12.53 | % | 13.69 | % | 4.16 | % | ||||||||||||
| Five Years | 7.26 | % | 7.05 | % | 5.79 | % | 6.46 | % | 15.45 | % | 9.17 | % | ||||||||||||
| Ten Years | 3.86 | % | N/A | N/A | N/A | 7.67 | % | 6.09 | % | |||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| (12/31/99) | -2.53 | % | N/A | N/A | N/A | 4.24 | % | 3.26 | % | |||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| Advisor | ||||||||||||||||||||||||
| Class A | ||||||||||||||||||||||||
| (5/19/08) | N/A | 3.33 | % | 2.41 | % | N/A | 8.04 | % | 2.96 | % | ||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| Advisor | ||||||||||||||||||||||||
| Class C | ||||||||||||||||||||||||
| (5/19/08) | N/A | N/A | N/A | 2.71 | % | 8.04 | % | 2.96 | % | |||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average annual total returns.
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The Paradigm Fund
December 31, 2004 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||||||
| Advisor | Advisor | |||||||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | Institutional | ||||||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | Class | S&P 500 | MSCI ACWI | ||||||||||||||||||||||
| One Year | -0.79 | % | -1.04 | % | -6.73 | % | -1.54 | % | -0.61 | % | 13.69 | % | 4.16 | % | ||||||||||||||
| Five Years | 11.86 | % | 11.59 | % | 10.28 | % | 11.02 | % | 12.07 | % | 15.45 | % | 9.17 | % | ||||||||||||||
| Ten Years | 7.60 | % | 7.29 | % | 6.66 | % | 6.75 | % | N/A | 7.67 | % | 6.09 | % | |||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||||||
| (12/31/99) | 9.23 | % | N/A | N/A | N/A | N/A | 4.24 | % | 3.26 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||||||
| (4/26/01) | N/A | 9.53 | % | 9.06 | % | N/A | N/A | 5.88 | % | 5.30 | % | |||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||||||
| (6/28/02) | N/A | N/A | N/A | 9.74 | % | N/A | 8.20 | % | 7.44 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| (5/27/05) | N/A | N/A | N/A | N/A | 7.74 | % | 8.05 | % | 6.44 | % | ||||||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average annual total returns.
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The Medical Fund
December 31, 2004 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||
| Advisor | Advisor | |||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | NASDAQ | ||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | S&P 500 | Composite | |||||||||||||||||||
| One Year | 16.44 | % | 16.15 | % | 9.48 | % | 15.54 | % | 13.69 | % | 13.40 | % | ||||||||||||
| Five Years | 15.71 | % | 15.43 | % | 14.07 | % | 14.84 | % | 15.45 | % | 15.85 | % | ||||||||||||
| Ten Years | 10.46 | % | 10.21 | % | 9.55 | % | N/A | 7.67 | % | 8.09 | % | |||||||||||||
| Since Inception | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| (9/30/99) | 10.47 | % | N/A | N/A | N/A | 5.12 | % | 3.64 | % | |||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||
| (4/26/01) | N/A | 6.63 | % | 6.18 | % | N/A | 5.88 | % | 6.37 | % | ||||||||||||||
| Since Inception | ||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||
| (2/16/07) | N/A | N/A | N/A | 10.12 | % | 6.78 | % | 8.48 | % | |||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average annual total returns.
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The Small Cap Opportunities Fund
December 31, 2004 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||||||
| Advisor | Advisor | |||||||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | Institutional | ||||||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | Class | Russell 2000 | S&P 500 | ||||||||||||||||||||||
| One Year | -7.28 | % | -7.54 | % | -12.85 | % | -7.97 | % | -7.12 | % | 4.89 | % | 13.69 | % | ||||||||||||||
| Five Years | 12.99 | % | 12.71 | % | 11.38 | % | 12.15 | % | 13.21 | % | 15.55 | % | 15.45 | % | ||||||||||||||
| Ten Years | 7.87 | % | 7.59 | % | 6.95 | % | N/A | N/A | 7.77 | % | 7.67 | % | ||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||||||
| (3/20/00) | 10.16 | % | N/A | N/A | N/A | N/A | 6.86 | % | 4.35 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||||||
| (12/31/01) | N/A | 8.22 | % | 7.73 | % | N/A | N/A | 8.61 | % | 6.72 | % | |||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||||||
| (2/16/07) | N/A | N/A | N/A | 3.30 | % | N/A | 6.50 | % | 6.78 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| (8/12/05) | N/A | N/A | N/A | N/A | 7.54 | % | 8.07 | % | 7.89 | % | ||||||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average annual total returns.
16
The Market Opportunities Fund
January 31, 2006 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||||||
| Advisor | Advisor | |||||||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | Institutional | ||||||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | Class | S&P 500 | MSCI EAFE | ||||||||||||||||||||||
| One Year | -5.55 | % | -5.74 | % | -11.14 | % | -6.24 | % | -5.36 | % | 13.69 | % | -4.90 | % | ||||||||||||||
| Five Years | 10.81 | % | 10.56 | % | 9.26 | % | 10.01 | % | 11.05 | % | 15.45 | % | 5.33 | % | ||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||||||
| (1/31/06) | 7.05 | % | N/A | N/A | N/A | N/A | 7.75 | % | 2.81 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||||||
| (1/31/06) | N/A | 6.79 | % | 6.09 | % | N/A | N/A | 7.75 | % | 2.81 | % | |||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||||||
| (2/16/07) | N/A | N/A | N/A | 3.68 | % | N/A | 6.78 | % | 0.39 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| (5/19/08) | N/A | N/A | N/A | N/A | 4.70 | % | 8.04 | % | -0.42 | % | ||||||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average total returns.
17
The Alternative Income Fund
June 29, 2007 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||||||
| Barclays | ||||||||||||||||||||||||||||
| U.S. 1-3 | Barclays | |||||||||||||||||||||||||||
| Advisor | Advisor | Year | U.S. | |||||||||||||||||||||||||
| No Load | Class A | Class A | Advisor | Institutional | Credit | Aggregate | ||||||||||||||||||||||
| Class | (No Load) | (Load Adjusted)(1) | Class C | Class | Index | Bond Index | ||||||||||||||||||||||
| One Year | 1.50 | % | 1.24 | % | -4.57 | % | 0.74 | % | 1.72 | % | 1.12 | % | 5.97 | % | ||||||||||||||
| Five Years | 1.27 | % | 1.02 | % | -0.17 | % | 0.55 | % | 1.54 | % | 2.42 | % | 4.45 | % | ||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||||||
| (6/29/07) | -0.64 | % | N/A | N/A | N/A | N/A | 3.64 | % | 5.25 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||||||
| (6/29/07) | N/A | -0.88 | % | -1.66 | % | N/A | N/A | 3.64 | % | 5.25 | % | |||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||||||
| (6/29/07) | N/A | N/A | N/A | -1.37 | % | N/A | 3.64 | % | 5.25 | % | ||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| (6/29/07) | N/A | N/A | N/A | N/A | -0.38 | % | 3.64 | % | 5.25 | % | ||||||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average total returns.
18
The Multi-Disciplinary Income Fund
February 11, 2008 — December 31, 2014
| Ended 12/31/2014 | ||||||||||||||||||||||||||||||||
| Advisor | ||||||||||||||||||||||||||||||||
| Advisor | Class A | |||||||||||||||||||||||||||||||
| No Load | Class A | (Load | Advisor | Institutional | S&P | CBOE | CBOE | |||||||||||||||||||||||||
| Class | (No Load) | Adjusted)(1) | Class C | Class | 500 | Buy | PUT | |||||||||||||||||||||||||
| One Year | 2.46 | % | 2.17 | % | -3.71 | % | 1.61 | % | 2.61 | % | 13.69 | % | 5.64 | % | 6.38 | % | ||||||||||||||||
| Five Years | 6.91 | % | 6.65 | % | 5.39 | % | 6.10 | % | 7.11 | % | 15.45 | % | 7.09 | % | 8.37 | % | ||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||||||||||
| (2/11/08) | 5.14 | % | N/A | N/A | N/A | N/A | 8.81 | % | 4.42 | % | 6.26 | % | ||||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||||||||||
| (2/11/08) | N/A | 4.88 | % | 3.99 | % | N/A | N/A | 8.81 | % | 4.42 | % | 6.26 | % | |||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||||||||||
| (2/11/08) | N/A | N/A | N/A | 4.35 | % | N/A | 8.81 | % | 4.42 | % | 6.26 | % | ||||||||||||||||||||
| Since Inception | ||||||||||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||||||
| (2/11/08) | N/A | N/A | N/A | N/A | 5.34 | % | 8.81 | % | 4.42 | % | 6.26 | % | ||||||||||||||||||||
(1) Reflects front-end sales charge of 5.75%.
Returns for periods greater than one year are average total returns.
19
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
| Expense Example |
| December 31, 2014 |
Shareholders incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvestments of dividends or other distributions made by a Fund, redemption fees, and exchange fees, and (2), ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help investors understand the ongoing costs (in dollars) of investing in a series of Kinetics Mutual Funds, Inc. (each a “Feeder Fund” and collectively the “Feeder Funds”), and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested on July 1, 2014 and held for the entire period from July 1, 2014 to December 31, 2014.
Actual Expenses
The first line item of the table below provides information about actual account values and actual expenses before and after expense reimbursement. Unlike other mutual funds that directly acquire and manage their own portfolio securities, each Feeder Fund invests all or generally all of its investable assets in a corresponding series of The Kinetics Portfolios Trust (each, a “Master Portfolio”, and together the “Master Portfolios”), a separately registered investment company. The Master Portfolio, in turn, invests in securities. With this type of organization, expenses can accrue specifically to the Master Portfolio or the Feeder Fund or both. Each Feeder Fund records its proportionate share of the Master Portfolio’s expenses, including directed brokerage credits, on a daily basis. Any expense reductions include Fund-specific expenses as well as the expenses allocated from the Master Portfolio.
The Feeder Funds will charge shareholder fees for outgoing wire transfers, returned checks, and exchanges executed by telephone between a Feeder Fund and any other Feeder Fund. The Feeder Funds’ transfer agent charges a $5.00 transaction fee to shareholder accounts for telephone exchanges between any two Feeder Funds. The Feeder Funds’ transfer agent does not charge a transaction fee for written exchange requests. IRA accounts are assessed a $15.00 annual fee. Finally, as a disincentive to market-timing transactions, the Feeder Funds will assess a 2.00% fee on the redemption or exchange of Fund shares held for less than 30 days. These fees will be paid to the Feeder Funds to help offset transaction costs. The Feeder Funds reserve the right to waive the redemption fee, subject to their sole discretion, in instances deemed not to be disadvantageous to the Feeder Funds or shareholders as described in the Feeder Funds’ prospectus.
20
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Expense Example — (Continued) |
| December 31, 2014 |
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 item of the table below provides information about hypothetical account values and hypothetical expenses before and after expense reimbursements based on the Feeder Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Feeder Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses one paid for the period. You may use this information to compare the ongoing costs of investing in the Feeder Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight one’s ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help one determine the relative total costs of owning different funds. If these transactional costs had been included, one’s costs would have been higher.
21
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Expense Example — (Continued) |
| December 31, 2014 |
| Expenses Paid | ||||||||||||||||
| Beginning | Ending | During | ||||||||||||||
| Account | Account | Annualized | Period* | |||||||||||||
| Value | Value | Expense | (7/1/14 to | |||||||||||||
| (7/1/14) | (12/31/14) | Ratio | 12/31/14) | |||||||||||||
| The Internet Fund | ||||||||||||||||
| No Load Class Actual | $ | 1,000.00 | $ | 1,022.70 | 1.79 | % | $ | 9.13 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) | $ | 1,000.00 | $ | 1,016.18 | 1.79 | % | $ | 9.10 | ||||||||
| Advisor Class A Actual | $ | 1,000.00 | $ | 1,021.30 | 2.04 | % | $ | 10.39 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) | $ | 1,000.00 | $ | 1,014.92 | 2.04 | % | $ | 10.36 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,019.40 | 2.54 | % | $ | 12.93 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,012.40 | 2.54 | % | $ | 12.88 | ||||||||
| The Global Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 857.00 | 1.39 | % | $ | 6.51 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,018.19 | 1.39 | % | $ | 7.07 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 856.50 | 1.64 | % | $ | 7.67 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.93 | 1.64 | % | $ | 8.34 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 854.40 | 2.14 | % | $ | 10.00 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,014.41 | 2.14 | % | $ | 10.87 | ||||||||
22
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Expense Example — (Continued) |
| December 31, 2014 |
| Expenses Paid | ||||||||||||||||
| Beginning | Ending | During | ||||||||||||||
| Account | Account | Annualized | Period* | |||||||||||||
| Value | Value | Expense | (7/1/14 to | |||||||||||||
| (7/1/14) | (12/31/14) | Ratio | 12/31/14) | |||||||||||||
| The Paradigm Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 948.00 | 1.64 | % | $ | 8.05 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.93 | 1.64 | % | $ | 8.34 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 946.70 | 1.89 | % | $ | 9.27 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,015.67 | 1.89 | % | $ | 9.60 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 944.00 | 2.39 | % | $ | 11.71 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,013.15 | 2.39 | % | $ | 12.13 | ||||||||
| Institutional Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 948.80 | 1.44 | % | $ | 7.07 | ||||||||
| Institutional Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,017.94 | 1.44 | % | $ | 7.32 | ||||||||
| The Medical Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,061.80 | 1.39 | % | $ | 7.22 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,018.19 | 1.39 | % | $ | 7.07 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,060.50 | 1.64 | % | $ | 8.52 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.93 | 1.64 | % | $ | 8.34 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,057.90 | 2.14 | % | $ | 11.10 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,014.41 | 2.14 | % | $ | 10.87 | ||||||||
23
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Expense Example — (Continued) |
| December 31, 2014 |
| Expenses Paid | ||||||||||||||||
| Beginning | Ending | During | ||||||||||||||
| Account | Account | Annualized | Period* | |||||||||||||
| Value | Value | Expense | (7/1/14 to | |||||||||||||
| (7/1/14) | (12/31/14) | Ratio | 12/31/14) | |||||||||||||
| The Small Cap Opportunities Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 893.20 | 1.64 | % | $ | 7.83 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.93 | 1.64 | % | $ | 8.34 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 892.00 | 1.89 | % | $ | 9.01 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,015.67 | 1.89 | % | $ | 9.60 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 889.60 | 2.39 | % | $ | 11.38 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,013.15 | 2.39 | % | $ | 12.13 | ||||||||
| Institutional Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 894.10 | 1.44 | % | $ | 6.87 | ||||||||
| Institutional Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,017.94 | 1.44 | % | $ | 7.32 | ||||||||
| The Market Opportunities Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 939.70 | 1.64 | % | $ | 8.02 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.93 | 1.64 | % | $ | 8.34 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 938.90 | 1.89 | % | $ | 9.24 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,015.67 | 1.89 | % | $ | 9.60 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 936.60 | 2.39 | % | $ | 11.67 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,013.15 | 2.39 | % | $ | 12.13 | ||||||||
| Institutional Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 940.60 | 1.44 | % | $ | 7.04 | ||||||||
| Institutional Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,017.94 | 1.44 | % | $ | 7.32 | ||||||||
24
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Expense Example — (Continued) |
| December 31, 2014 |
| Expenses Paid | ||||||||||||||||
| Beginning | Ending | During | ||||||||||||||
| Account | Account | Annualized | Period* | |||||||||||||
| Value | Value | Expense | (7/1/14 to | |||||||||||||
| (7/1/14) | (12/31/14) | Ratio | 12/31/14) | |||||||||||||
| The Alternative Income Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 988.70 | 0.95 | % | $ | 4.76 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,020.41 | 0.95 | % | $ | 4.84 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 987.30 | 1.20 | % | $ | 6.01 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,019.15 | 1.20 | % | $ | 6.11 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 985.00 | 1.70 | % | $ | 8.51 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.63 | 1.70 | % | $ | 8.64 | ||||||||
| Institutional Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 989.80 | 0.75 | % | $ | 3.76 | ||||||||
| Institutional Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,021.42 | 0.75 | % | $ | 3.82 | ||||||||
| The Multi-Disciplinary Income Fund | ||||||||||||||||
| No Load Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 976.80 | 1.49 | % | $ | 7.42 | ||||||||
| No Load Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,017.69 | 1.49 | % | $ | 7.58 | ||||||||
| Advisor Class A Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 975.30 | 1.74 | % | $ | 8.66 | ||||||||
| Advisor Class A Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,016.43 | 1.74 | % | $ | 8.84 | ||||||||
| Advisor Class C Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 972.90 | 2.24 | % | $ | 11.14 | ||||||||
| Advisor Class C Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,013.91 | 2.24 | % | $ | 11.37 | ||||||||
| Institutional Class Actual — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 977.40 | 1.29 | % | $ | 6.43 | ||||||||
| Institutional Class Hypothetical (5% return | ||||||||||||||||
| before expenses) — after | ||||||||||||||||
| expense reimbursement | $ | 1,000.00 | $ | 1,018.70 | 1.29 | % | $ | 6.56 | ||||||||
| Note: | Each Feeder Fund records its proportionate share of the respective Master Portfolio’s expenses on a daily basis. Any expense reductions include Feeder Fund-specific expenses as well as the expenses allocated for the Master Portfolio. | |
| * | Expenses are equal to the Feeder Fund’s annualized expense ratio before expense reimbursement and after expense reimbursement multiplied by the average account value over the period, multiplied by 184/365. | |
25
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
| Statements of Assets & Liabilities |
| December 31, 2014 |
| The Internet | The Global | |||||||
| Fund | Fund | |||||||
| ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 157,526,615 | $ | 8,872,053 | ||||
| Receivable from Adviser | — | 7,861 | ||||||
| Receivable for Master Portfolio interest sold | 215,488 | — | ||||||
| Receivable for Fund shares sold | 24,774 | 37 | ||||||
| Prepaid expenses and other assets | 20,535 | 15,070 | ||||||
| Total Assets | 157,787,412 | 8,895,021 | ||||||
| LIABILITIES: | ||||||||
| Payable for Master Portfolio interest purchased | — | 36 | ||||||
| Payable to Directors | 2,560 | 165 | ||||||
| Payable to Chief Compliance Officer | 192 | 14 | ||||||
| Payable for Fund shares repurchased | 240,262 | — | ||||||
| Payable for shareholder servicing fees | 33,586 | 1,895 | ||||||
| Payable for distribution fees | 3,654 | 2,715 | ||||||
| Accrued expenses and other liabilities | 59,049 | 13,532 | ||||||
| Total Liabilities | 339,303 | 18,357 | ||||||
| Net Assets | $ | 157,448,109 | $ | 8,876,664 | ||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 72,348,653 | $ | 7,617,222 | ||||
| Accumulated net investment income | 153,826 | 15,403 | ||||||
| Accumulated net realized gain (loss) on investments and foreign currency | 3,563,235 | (75,822 | ) | |||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 81,382,395 | 1,319,861 | ||||||
| Net Assets | $ | 157,448,109 | $ | 8,876,664 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 151,199,801 | $ | 6,770,943 | ||||
| Shares outstanding | 2,696,030 | 1,271,135 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 56.08 | $ | 5.33 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 5,142,847 | $ | 497,376 | ||||
| Shares outstanding | 94,340 | 93,650 | ||||||
| Net asset value per share (redemption price) | $ | 54.51 | $ | 5.31 | ||||
| Offering price per share ($54.51 divided by .9425 and $5.31 divided by .9425) | $ | 57.84 | $ | 5.63 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 1,105,461 | $ | 1,608,345 | ||||
| Shares outstanding | 21,338 | 311,813 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 51.81 | $ | 5.16 | ||||
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. |
The accompanying notes are an integral part of these financial statements.
26
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Assets & Liabilities — (Continued) |
| December 31, 2014 |
| The Paradigm | The Medical | |||||||
| Fund | Fund | |||||||
| ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 1,176,068,317 | $ | 27,084,066 | ||||
| Receivable from Adviser | 20,839 | 13,566 | ||||||
| Receivable for Master Portfolio interest sold | 3,382,941 | 12,495 | ||||||
| Receivable for Fund shares sold | 1,405,661 | 552 | ||||||
| Prepaid expenses and other assets | 41,796 | 14,189 | ||||||
| Total Assets | 1,180,919,554 | 27,124,868 | ||||||
| LIABILITIES: | ||||||||
| Payable to Directors | 19,797 | 401 | ||||||
| Payable to Chief Compliance Officer | 1,340 | 33 | ||||||
| Payable for Fund shares repurchased | 4,788,602 | 13,047 | ||||||
| Payable for shareholder servicing fees | 194,889 | 5,749 | ||||||
| Payable for distribution fees | 375,380 | 3,840 | ||||||
| Accrued expenses and other liabilities | 237,076 | 16,681 | ||||||
| Total Liabilities | 5,617,084 | 39,751 | ||||||
| Net Assets | $ | 1,175,302,470 | $ | 27,085,117 | ||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 1,533,328,312 | $ | 16,189,992 | ||||
| Accumulated net investment income (loss) | (7,237,393 | ) | 67,272 | |||||
| Accumulated net realized gain (loss) on investments and foreign currency | (747,781,728 | ) | 272,190 | |||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 396,993,279 | 10,555,663 | ||||||
| Net Assets | $ | 1,175,302,470 | $ | 27,085,117 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 521,737,954 | $ | 21,876,078 | ||||
| Shares outstanding | 15,310,812 | 713,265 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 34.08 | $ | 30.67 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 171,958,387 | $ | 4,578,294 | ||||
| Shares outstanding | 5,150,425 | 154,099 | ||||||
| Net asset value per share (redemption price) | $ | 33.39 | $ | 29.71 | ||||
| Offering price per share ($33.39 divided by .9425 and $29.71 divided by .9425) | $ | 35.43 | $ | 31.52 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 135,332,700 | $ | 630,745 | ||||
| Shares outstanding | 4,244,622 | 21,637 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 31.88 | $ | 29.15 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | ||||||||
| Net Assets | $ | 346,273,429 | N/A | |||||
| Shares outstanding | 10,159,663 | N/A | ||||||
| Net asset value per share (offering price and redemption price) | $ | 34.08 | N/A | |||||
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. | |
The accompanying notes are an integral part of these financial statements.
27
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Assets & Liabilities — (Continued) |
| December 31, 2014 |
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Fund | Fund | |||||||
| ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 353,117,149 | $ | 54,360,074 | ||||
| Receivable from Adviser | 32,303 | 12,667 | ||||||
| Receivable for Master Portfolio interest sold | — | 91,206 | ||||||
| Receivable for Fund shares sold | 1,860,621 | 10,005 | ||||||
| Prepaid expenses and other assets | 49,719 | 27,295 | ||||||
| Total Assets | 355,059,792 | 54,501,247 | ||||||
| LIABILITIES: | ||||||||
| Payable for Master Portfolio interest purchased | 748,964 | — | ||||||
| Payable to Directors | 6,355 | 983 | ||||||
| Payable to Chief Compliance Officer | 445 | 62 | ||||||
| Payable for Fund shares repurchased | 1,111,657 | 101,211 | ||||||
| Payable for shareholder servicing fees | 65,981 | 11,254 | ||||||
| Payable for distribution fees | 27,013 | 15,005 | ||||||
| Accrued expenses and other liabilities | 78,890 | 21,122 | ||||||
| Total Liabilities | 2,039,305 | 149,637 | ||||||
| Net Assets | $ | 353,020,487 | $ | 54,351,610 | ||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 455,787,003 | $ | 63,750,870 | ||||
| Accumulated net investment loss | (1,564,310 | ) | (616,233 | ) | ||||
| Accumulated net realized loss on investments and foreign currency | (137,851,807 | ) | (21,552,662 | ) | ||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 36,649,601 | 12,769,635 | ||||||
| Net Assets | $ | 353,020,487 | $ | 54,351,610 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 251,109,571 | $ | 37,317,873 | ||||
| Shares outstanding | 6,749,305 | 2,237,115 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 37.21 | $ | 16.68 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 25,591,125 | $ | 8,816,721 | ||||
| Shares outstanding | 702,431 | 531,386 | ||||||
| Net asset value per share (redemption price) | $ | 36.43 | $ | 16.59 | ||||
| Offering price per share ($36.43 divided by .9425 and $16.59 divided by .9425) | $ | 38.65 | $ | 17.60 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 12,928,160 | $ | 5,108,596 | ||||
| Shares outstanding | 364,493 | 314,646 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 35.47 | $ | 16.24 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | ||||||||
| Net Assets | $ | 63,391,631 | $ | 3,108,420 | ||||
| Shares outstanding | 1,687,279 | 185,079 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 37.57 | $ | 16.80 | ||||
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. | |
The accompanying notes are an integral part of these financial statements.
28
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Assets & Liabilities — (Continued) |
| December 31, 2014 |
| The Multi- | ||||||||
| The Alternative | Disciplinary | |||||||
| Income | Income | |||||||
| Fund | Fund | |||||||
| ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 38,115,285 | $ | 135,378,346 | ||||
| Receivable from Adviser | 29,176 | 35,614 | ||||||
| Receivable for Master Portfolio interest sold | — | 73,373 | ||||||
| Receivable for Fund shares sold | 147,652 | 258,269 | ||||||
| Prepaid expenses and other assets | 17,314 | 31,113 | ||||||
| Total Assets | 38,309,427 | 135,776,715 | ||||||
| LIABILITIES: | ||||||||
| Payable for Master Portfolio interest purchased | 80,473 | — | ||||||
| Payable to Directors | 536 | 1,924 | ||||||
| Payable to Chief Compliance Officer | 23 | 100 | ||||||
| Payable for Fund shares repurchased | 67,179 | 331,642 | ||||||
| Payable for shareholder servicing fees | 3,716 | 11,431 | ||||||
| Payable for distribution fees | 5,300 | 20,695 | ||||||
| Accrued expenses and other liabilities | 16,395 | 31,329 | ||||||
| Total Liabilities | 173,622 | 397,121 | ||||||
| Net Assets | $ | 38,135,805 | $ | 135,379,594 | ||||
| NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 45,287,894 | $ | 138,223,503 | ||||
| Accumulated net investment loss | — | (845,286 | ) | |||||
| Accumulated net realized gain (loss) on investments and foreign currency | (7,588,529 | ) | 623,497 | |||||
| Net unrealized appreciation (depreciation) on: | ||||||||
| Investments and foreign currency | (95,442 | ) | (3,625,646 | ) | ||||
| Written option contracts | 531,882 | 1,003,526 | ||||||
| Net Assets | $ | 38,135,805 | $ | 135,379,594 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 8,201,899 | $ | 10,105,374 | ||||
| Shares outstanding | 92,091 | 936,406 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 89.06 | $ | 10.79 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 1,554,083 | $ | 12,281,404 | ||||
| Shares outstanding | 17,523 | 1,142,852 | ||||||
| Net asset value per share (redemption price) | $ | 88.69 | $ | 10.75 | ||||
| Offering price per share ($88.69 divided by .9425 and $10.75 divided by .9425) | $ | 94.10 | $ | 11.41 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 1,505,632 | $ | 10,402,692 | ||||
| Shares outstanding | 17,386 | 976,618 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 86.60 | $ | 10.65 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | ||||||||
| Net Assets | $ | 26,874,191 | $ | 102,590,124 | ||||
| Shares outstanding | 298,133 | 9,482,593 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 90.14 | $ | 10.82 | ||||
| * | Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements. | |
The accompanying notes are an integral part of these financial statements.
29
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
| Statements of Operations |
| For the Year Ended December 31, 2014 |
| The Internet | The Global | |||||||
| Fund | Fund | |||||||
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 689,583 | $ | 74,932 | ||||
| Interest | 948 | 454 | ||||||
| Income from securities lending | 39,420 | 39,953 | ||||||
| Expenses allocated from Master Portfolio | (2,211,086 | ) | (171,423 | ) | ||||
| Net investment loss from Master Portfolio | (1,481,135 | ) | (56,084 | ) | ||||
| EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 12,828 | 3,180 | ||||||
| Distribution fees — Advisor Class C | 8,362 | 12,080 | ||||||
| Shareholder servicing fees — Advisor Class A | 12,828 | 3,180 | ||||||
| Shareholder servicing fees — Advisor Class C | 2,788 | 4,027 | ||||||
| Shareholder servicing fees — No Load Class | 397,634 | 19,604 | ||||||
| Transfer agent fees and expenses | 146,328 | 20,472 | ||||||
| Reports to shareholders | 32,820 | 2,806 | ||||||
| Administration fees | 54,438 | 5,210 | ||||||
| Professional fees | 17,177 | 8,545 | ||||||
| Directors’ fees | 7,099 | 558 | ||||||
| Chief Compliance Officer fees | 2,000 | 136 | ||||||
| Registration fees | 46,139 | 43,206 | ||||||
| Fund accounting fees | 8,272 | 578 | ||||||
| Other expenses | 7,898 | 467 | ||||||
| Total expenses | 756,611 | 124,049 | ||||||
| Less, expense reimbursement | — | (131,153 | ) | |||||
| Net expenses | 756,611 | (7,104 | ) | |||||
| Net investment loss | (2,237,746 | ) | (48,980 | ) | ||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 10,595,537 | 318,071 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (9,484,952 | ) | (1,488,285 | ) | ||||
| Net gain (loss) on investments | 1,110,585 | (1,170,214 | ) | |||||
| Net decrease in net assets resulting from operations | $ | (1,127,161 | ) | $ | (1,219,194 | ) | ||
| † Net of foreign taxes withheld of: | $ | 1,416 | $ | 11,796 | ||||
The accompanying notes are an integral part of these financial statements.
30
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Operations — (Continued) |
| For the Year Ended December 31, 2014 |
| The Paradigm | The Medical | |||||||
| Fund | Fund | |||||||
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 5,712,887 | $ | 443,645 | ||||
| Interest | 42,724 | 195 | ||||||
| Income from securities lending | 2,045,419 | 44,575 | ||||||
| Expenses allocated from Master Portfolio | (16,826,951 | ) | (371,663 | ) | ||||
| Net investment income (loss) from Master Portfolio | (9,025,921 | ) | 116,752 | |||||
| EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 499,393 | 11,364 | ||||||
| Distribution fees — Advisor Class C | 1,052,238 | 4,324 | ||||||
| Shareholder servicing fees — Advisor Class A | 499,393 | 11,364 | ||||||
| Shareholder servicing fees — Advisor Class C | 350,746 | 1,441 | ||||||
| Shareholder servicing fees — No Load Class | 1,449,572 | 53,095 | ||||||
| Shareholder servicing fees — Institutional Class | 682,664 | — | ||||||
| Transfer agent fees and expenses | 310,790 | 26,646 | ||||||
| Reports to shareholders | 176,724 | 4,683 | ||||||
| Administration fees | 416,215 | 8,618 | ||||||
| Professional fees | 81,996 | 9,429 | ||||||
| Directors’ fees | 61,109 | 1,219 | ||||||
| Chief Compliance Officer fees | 15,698 | 325 | ||||||
| Registration fees | 83,897 | 43,165 | ||||||
| Fund accounting fees | 64,756 | 1,339 | ||||||
| Other expenses | 52,960 | 1,105 | ||||||
| Total expenses | 5,798,151 | 178,117 | ||||||
| Less, expense waiver for Institutional Class shareholder servicing fees | (511,998 | ) | — | |||||
| Less, expense reimbursement | (560,155 | ) | (167,683 | ) | ||||
| Net expenses | 4,725,998 | 10,434 | ||||||
| Net investment income (loss) | (13,751,919 | ) | 106,318 | |||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 36,331,414 | 723,512 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (31,558,560 | ) | 3,048,505 | |||||
| Net gain on investments | 4,772,854 | 3,772,017 | ||||||
| Net increase (decrease) in net assets resulting from operations | $ | (8,979,065 | ) | $ | 3,878,335 | |||
| † Net of foreign taxes withheld of: | $ | 211,076 | $ | 32,954 | ||||
The accompanying notes are an integral part of these financial statements.
31
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Operations — (Continued) |
| For the Year Ended December 31, 2014 |
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Fund | Fund | |||||||
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 2,161,951 | $ | 604,699 | ||||
| Interest | 5,315 | 1,044 | ||||||
| Income from securities lending | 874,397 | 82,356 | ||||||
| Expenses allocated from Master Portfolio | (5,412,883 | ) | (876,989 | ) | ||||
| Net investment loss from Master Portfolio | (2,371,220 | ) | (188,890 | ) | ||||
| EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 74,524 | 26,085 | ||||||
| Distribution fees — Advisor Class C | 91,411 | 41,972 | ||||||
| Shareholder servicing fees — Advisor Class A | 74,524 | 26,085 | ||||||
| Shareholder servicing fees — Advisor Class C | 30,470 | 13,991 | ||||||
| Shareholder servicing fees — No Load Class | 795,055 | 111,730 | ||||||
| Shareholder servicing fees — Institutional Class | 90,523 | 4,982 | ||||||
| Transfer agent fees and expenses | 94,681 | 27,886 | ||||||
| Reports to shareholders | 69,091 | 7,619 | ||||||
| Administration fees | 132,079 | 22,288 | ||||||
| Professional fees | 33,435 | 11,630 | ||||||
| Directors’ fees | 23,543 | 2,990 | ||||||
| Chief Compliance Officer fees | 5,367 | 760 | ||||||
| Registration fees | 108,700 | 59,800 | ||||||
| Fund accounting fees | 21,613 | 3,207 | ||||||
| Other expenses | 12,963 | 2,766 | ||||||
| Total expenses | 1,657,979 | 363,791 | ||||||
| Less, expense waiver for Institutional Class shareholder servicing fees | (67,891 | ) | (3,737 | ) | ||||
| Less, expense reimbursement | (280,908 | ) | (137,265 | ) | ||||
| Net expenses | 1,309,180 | 222,789 | ||||||
| Net investment loss | (3,680,400 | ) | (411,679 | ) | ||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 22,542,735 | 4,069,744 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (47,300,796 | ) | (7,185,651 | ) | ||||
| Net loss on investments | (24,758,061 | ) | (3,115,907 | ) | ||||
| Net decrease in net assets resulting from operations | $ | (28,438,461 | ) | $ | (3,527,586 | ) | ||
| † Net of foreign taxes withheld of: | $ | 22,574 | $ | 16,987 | ||||
The accompanying notes are an integral part of these financial statements.
32
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Operations — (Continued) |
| For the Year Ended December 31, 2014 |
| The Multi- | ||||||||
| The Alternative | Disciplinary | |||||||
| Income | Income | |||||||
| Fund | Fund | |||||||
| INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends | $ | 67,123 | $ | 927,945 | ||||
| Interest | 181,096 | 4,106,230 | ||||||
| Income from securities lending | 5,066 | 30,997 | ||||||
| Expenses allocated from Master Portfolio | (378,101 | ) | (1,566,194 | ) | ||||
| Net investment income (loss) from Master Portfolio | (124,816 | ) | 3,498,978 | |||||
| EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 7,673 | 57,683 | ||||||
| Distribution fees — Advisor Class C | 11,679 | 84,928 | ||||||
| Shareholder servicing fees — Advisor Class A | 7,673 | 57,683 | ||||||
| Shareholder servicing fees — Advisor Class C | 3,893 | 28,309 | ||||||
| Shareholder servicing fees — No Load Class | 30,889 | 47,913 | ||||||
| Shareholder servicing fees — Institutional Class | 28,298 | 122,026 | ||||||
| Transfer agent fees and expenses | 23,722 | 33,566 | ||||||
| Reports to shareholders | 2,891 | 20,919 | ||||||
| Administration fees | 10,061 | 41,158 | ||||||
| Professional fees | 9,650 | 14,577 | ||||||
| Directors’ fees | 1,580 | 5,336 | ||||||
| Chief Compliance Officer fees | 373 | 1,347 | ||||||
| Registration fees | 53,413 | 67,696 | ||||||
| Fund accounting fees | 1,514 | 5,510 | ||||||
| Other expenses | 993 | 4,035 | ||||||
| Total expenses | 194,302 | 592,686 | ||||||
| Less, expense waiver for Institutional Class shareholder servicing fees | (21,224 | ) | (91,519 | ) | ||||
| Less, expense reimbursement | (264,378 | ) | (339,600 | ) | ||||
| Net expenses | (91,300 | ) | 161,567 | |||||
| Net investment income (loss) | (33,516 | ) | 3,337,411 | |||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments and foreign currency | (43,800 | ) | (849,503 | ) | ||||
| Written option contracts expired or closed | 510,712 | 2,702,004 | ||||||
| Long term realized gain distributions received from other investment companies | 3,924 | 68,030 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (37,188 | ) | (905,124 | ) | ||||
| Written option contracts | (71,739 | ) | (2,322,399 | ) | ||||
| Net gain (loss) on investments | 361,909 | (1,306,992 | ) | |||||
| Net increase in net assets resulting from operations | $ | 328,393 | $ | 2,030,419 | ||||
The accompanying notes are an integral part of these financial statements.
33
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
| Statements of Changes in Net Assets |
| The Internet Fund | The Global Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (2,237,746 | ) | $ | (2,263,838 | ) | $ | (48,980 | ) | $ | 8,809 | |||||
| Net realized gain on sale of investments | ||||||||||||||||
| and foreign currency | 10,595,537 | 11,540,964 | 318,071 | 66,904 | ||||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments and | ||||||||||||||||
| foreign currency | (9,484,952 | ) | 52,880,805 | (1,488,285 | ) | 2,169,965 | ||||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from operations | (1,127,161 | ) | 62,157,931 | (1,219,194 | ) | 2,245,678 | ||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Net investment income | — | — | — | (9,185 | ) | |||||||||||
| Net realized gains | (8,004,471 | ) | (8,399,207 | ) | (712 | ) | — | |||||||||
| Total distributions | (8,004,471 | ) | (8,399,207 | ) | (712 | ) | (9,185 | ) | ||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Net investment income | — | — | — | (2,107 | ) | |||||||||||
| Net realized gains | (281,407 | ) | (264,840 | ) | (52 | ) | — | |||||||||
| Total distributions | (281,407 | ) | (264,840 | ) | (52 | ) | (2,107 | ) | ||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Net investment income | — | — | — | (1,648 | ) | |||||||||||
| Net realized gains | (63,160 | ) | (47,335 | ) | (175 | ) | — | |||||||||
| Total distributions | (63,160 | ) | (47,335 | ) | (175 | ) | (1,648 | ) | ||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 13,300,316 | 26,409,652 | 1,083,377 | 3,089,656 | ||||||||||||
| Redemption fees | 14,113 | 4,961 | 77 | 68 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | 7,733,943 | 8,096,254 | 679 | 8,850 | ||||||||||||
| Cost of shares redeemed | (33,117,579 | ) | (69,661,189 | ) | (2,073,922 | ) | (1,183,302 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (12,069,207 | ) | (35,150,322 | ) | (989,789 | ) | 1,915,272 | |||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | 2,906,101 | 4,387,670 | 726,190 | 1,186,661 | ||||||||||||
| Redemption fees | 277 | 550 | 1,415 | 40 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | 149,179 | 221,753 | 30 | 1,866 | ||||||||||||
| Cost of shares redeemed | (3,086,613 | ) | (1,362,298 | ) | (2,164,173 | ) | (576,135 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (31,056 | ) | 3,247,675 | (1,436,538 | ) | 612,432 | ||||||||||
The accompanying notes are an integral part of these financial statements.
34
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Internet Fund | The Global Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | $ | 588,707 | $ | 604,756 | $ | 384,348 | $ | 914,460 | ||||||||
| Redemption fees | 487 | — | 40 | — | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | 54,872 | 35,987 | 168 | 1,580 | ||||||||||||
| Cost of shares redeemed | (369,965 | ) | (34,603 | ) | (81,376 | ) | (2,000 | ) | ||||||||
| Net increase in net assets resulting | ||||||||||||||||
| from capital share transactions | 274,101 | 606,140 | 303,180 | 914,040 | ||||||||||||
| TOTAL INCREASE (DECREASE) IN | ||||||||||||||||
| NET ASSETS: | (21,302,361 | ) | 22,150,042 | (3,343,280 | ) | 5,674,482 | ||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 178,750,470 | 156,600,428 | 12,219,944 | 6,545,462 | ||||||||||||
| End of year* | $ | 157,448,109 | $ | 178,750,470 | $ | 8,876,664 | $ | 12,219,944 | ||||||||
| * Including undistributed net investment | ||||||||||||||||
| income (loss) of: | $ | 153,826 | $ | 108,097 | $ | 15,403 | $ | (28,646 | ) | |||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 231,907 | 525,397 | 185,397 | 584,835 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | 136,932 | 137,016 | 128 | 1,468 | ||||||||||||
| Shares redeemed | (580,533 | ) | (1,345,154 | ) | (352,745 | ) | (224,143 | ) | ||||||||
| Net increase (decrease) in shares | ||||||||||||||||
| outstanding | (211,694 | ) | (682,741 | ) | (167,220 | ) | 362,160 | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 51,935 | 83,265 | 123,524 | 208,374 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | 2,719 | 3,845 | 5 | 310 | ||||||||||||
| Shares redeemed | (55,495 | ) | (24,534 | ) | (359,935 | ) | (110,866 | ) | ||||||||
| Net increase (decrease) in shares | ||||||||||||||||
| outstanding | (841 | ) | 62,576 | (236,406 | ) | 97,818 | ||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 10,790 | 12,031 | 67,992 | 175,531 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | 1,052 | 652 | 32 | 269 | ||||||||||||
| Shares redeemed | (6,992 | ) | (731 | ) | (14,611 | ) | (347 | ) | ||||||||
| Net increase in shares | ||||||||||||||||
| outstanding | 4,850 | 11,952 | 53,413 | 175,453 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
35
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Paradigm Fund | The Medical Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (13,751,919 | ) | $ | (6,330,819 | ) | $ | 106,318 | $ | (13,040 | ) | |||||
| Net realized gain (loss) on sale of | ||||||||||||||||
| investments and foreign currency | 36,331,414 | 950,246 | 723,512 | (340,728 | ) | |||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments and | ||||||||||||||||
| foreign currency | (31,558,560 | ) | 384,565,800 | 3,048,505 | 8,683,292 | |||||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from operations | (8,979,065 | ) | 379,185,227 | 3,878,335 | 8,329,524 | |||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Net investment income | — | (3,649,194 | ) | — | (47,302 | ) | ||||||||||
| Net realized gains | — | — | (33,693 | ) | (118,630 | ) | ||||||||||
| Total distributions | — | (3,649,194 | ) | (33,693 | ) | (165,932 | ) | |||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Net investment income | — | (958,523 | ) | — | (4,406 | ) | ||||||||||
| Net realized gains | — | — | (7,270 | ) | (22,398 | ) | ||||||||||
| Total distributions | — | (958,523 | ) | (7,270 | ) | (26,804 | ) | |||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Net investment income | — | (111,115 | ) | — | (632 | ) | ||||||||||
| Net realized gains | — | — | (1,021 | ) | (3,216 | ) | ||||||||||
| Total distributions | — | (111,115 | ) | (1,021 | ) | (3,848 | ) | |||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Net investment income | — | (2,547,950 | ) | N/A | N/A | |||||||||||
| Total distributions | — | (2,547,950 | ) | N/A | N/A | |||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 79,013,052 | 128,552,091 | 2,139,812 | 5,499,559 | ||||||||||||
| Redemption fees | 10,973 | 28,908 | 1,600 | 2,309 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | 3,421,586 | 33,284 | 163,327 | ||||||||||||
| Cost of shares redeemed | (151,816,953 | ) | (129,139,004 | ) | (3,940,694 | ) | (6,191,262 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (72,792,928 | ) | 2,863,581 | (1,765,998 | ) | (526,067 | ) | |||||||||
The accompanying notes are an integral part of these financial statements.
36
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Paradigm Fund | The Medical Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | $ | 42,819,434 | $ | 41,783,343 | $ | 2,048,708 | $ | 2,015,743 | ||||||||
| Redemption fees | 2,758 | 4,446 | 374 | 962 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | 869,957 | 5,220 | 16,802 | ||||||||||||
| Cost of shares redeemed | (75,223,571 | ) | (32,587,410 | ) | (1,826,869 | ) | (2,055,321 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (32,401,379 | ) | 10,070,336 | 227,433 | (21,814 | ) | ||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | 13,393,108 | 10,763,761 | 141,764 | 110,624 | ||||||||||||
| Redemption fees | 603 | 4 | — | — | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | 100,621 | 647 | 1,975 | ||||||||||||
| Cost of shares redeemed | (14,361,754 | ) | (15,948,545 | ) | (120,479 | ) | (219,103 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (968,043 | ) | (5,084,159 | ) | 21,932 | (106,504 | ) | |||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Proceeds from shares sold | 106,804,359 | 110,215,275 | N/A | N/A | ||||||||||||
| Redemption fees | 4,182 | 5,525 | N/A | N/A | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | 1,781,955 | N/A | N/A | ||||||||||||
| Cost of shares redeemed | (90,695,882 | ) | (63,765,372 | ) | N/A | N/A | ||||||||||
| Net increase in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | 16,112,659 | 48,237,383 | N/A | N/A | ||||||||||||
| TOTAL INCREASE (DECREASE) IN | ||||||||||||||||
| NET ASSETS: | (99,028,756 | ) | 428,005,586 | 2,319,718 | 7,478,555 | |||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 1,274,331,226 | 846,325,640 | 24,765,399 | 17,286,844 | ||||||||||||
| End of year* | $ | 1,175,302,470 | $ | 1,274,331,226 | $ | 27,085,117 | $ | 24,765,399 | ||||||||
| * Including undistributed net investment | ||||||||||||||||
| income (loss) of: | $ | (7,237,393 | ) | $ | (9,374,074 | ) | $ | 67,272 | $ | (39,072 | ) | |||||
The accompanying notes are an integral part of these financial statements.
37
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Paradigm Fund | The Medical Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 2,290,400 | 4,367,391 | 74,948 | 245,850 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | 100,105 | 1,084 | 6,196 | ||||||||||||
| Shares redeemed | (4,383,030 | ) | (4,435,343 | ) | (139,467 | ) | (275,053 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (2,092,630 | ) | 32,153 | (63,435 | ) | (23,007 | ) | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 1,259,055 | 1,418,522 | 74,488 | 90,529 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | 25,915 | 176 | 656 | ||||||||||||
| Shares redeemed | (2,171,775 | ) | (1,136,718 | ) | (66,773 | ) | (94,006 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (912,720 | ) | 307,719 | 7,891 | (2,821 | ) | ||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 412,314 | 385,726 | 5,106 | 4,926 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | 3,123 | 22 | 78 | ||||||||||||
| Shares redeemed | (440,754 | ) | (590,232 | ) | (4,493 | ) | (10,184 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (28,440 | ) | (201,383 | ) | 635 | (5,180 | ) | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Shares sold | 3,053,557 | 3,816,087 | NA | NA | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | 52,226 | NA | NA | ||||||||||||
| Shares redeemed | (2,626,498 | ) | (2,177,559 | ) | NA | NA | ||||||||||
| Net increase in | ||||||||||||||||
| shares outstanding | 427,059 | 1,690,754 | NA | NA | ||||||||||||
The accompanying notes are an integral part of these financial statements.
38
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Small Cap | The Market | |||||||||||||||
| Opportunities Fund | Opportunities Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment loss | $ | (3,680,400 | ) | $ | (535,751 | ) | $ | (411,679 | ) | $ | (33,421 | ) | ||||
| Net realized gain on sale of investments | ||||||||||||||||
| and foreign currency | 22,542,735 | 912,039 | 4,069,744 | 4,586,000 | ||||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments and | ||||||||||||||||
| foreign currency | (47,300,796 | ) | 74,228,630 | (7,185,651 | ) | 16,099,778 | ||||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from operations | (28,438,461 | ) | 74,604,918 | (3,527,586 | ) | 20,652,357 | ||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Net investment income | — | — | — | (173,362 | ) | |||||||||||
| Total distributions | — | — | — | (173,362 | ) | |||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Net investment income | — | — | — | (43,317 | ) | |||||||||||
| Total distributions | — | — | — | (43,317 | ) | |||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Net investment income | — | — | — | (20,715 | ) | |||||||||||
| Total distributions | — | — | — | (20,715 | ) | |||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Net investment income | — | — | — | (6,619 | ) | |||||||||||
| Total distributions | — | — | — | (6,619 | ) | |||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 194,445,896 | 191,484,979 | 8,010,235 | 12,840,687 | ||||||||||||
| Redemption fees | 41,304 | 16,105 | 2,251 | 2,752 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | — | 172,044 | ||||||||||||
| Cost of shares redeemed | (200,815,126 | ) | (37,876,316 | ) | (15,752,146 | ) | (13,323,220 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (6,327,926 | ) | 153,624,768 | (7,739,660 | ) | (307,737 | ) | |||||||||
The accompanying notes are an integral part of these financial statements.
39
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Small Cap | The Market | |||||||||||||||
| Opportunities Fund | Opportunities Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | $ | 23,756,168 | $ | 11,072,084 | $ | 2,637,530 | $ | 5,568,364 | ||||||||
| Redemption fees | 1,454 | 2,704 | — | 1,711 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | — | 34,665 | ||||||||||||
| Cost of shares redeemed | (18,170,301 | ) | (2,330,561 | ) | (4,968,036 | ) | (3,495,307 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | 5,587,321 | 8,744,227 | (2,330,506 | ) | 2,109,433 | |||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | 9,629,115 | 3,682,497 | 697,027 | 378,584 | ||||||||||||
| Redemption fees | 2,106 | 716 | 61 | 199 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | — | 18,554 | ||||||||||||
| Cost of shares redeemed | (2,801,727 | ) | (937,616 | ) | (774,680 | ) | (546,143 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | 6,829,494 | 2,745,597 | (77,592 | ) | (148,806 | ) | ||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Proceeds from shares sold | 69,362,018 | 36,054,133 | 2,345,012 | 13,645,790 | ||||||||||||
| Redemption fees | 1,007 | — | — | 1,462 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | — | 6,468 | ||||||||||||
| Cost of shares redeemed | (41,890,144 | ) | (9,399,860 | ) | (859,118 | ) | (12,782,149 | ) | ||||||||
| Net increase in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | 27,472,881 | 26,654,273 | 1,485,894 | 871,571 | ||||||||||||
| TOTAL INCREASE (DECREASE) IN | ||||||||||||||||
| NET ASSETS: | 5,123,309 | 266,373,783 | (12,189,450 | ) | 22,932,805 | |||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 347,897,178 | 81,523,395 | 66,541,060 | 43,608,255 | ||||||||||||
| End of year* | $ | 353,020,487 | $ | 347,897,178 | $ | 54,351,610 | $ | 66,541,060 | ||||||||
| * Including undistributed net investment | ||||||||||||||||
| loss of: | $ | (1,564,310 | ) | $ | (1,545,658 | ) | $ | (616,233 | ) | $ | (634,488 | ) | ||||
The accompanying notes are an integral part of these financial statements.
40
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Small Cap | The Market | |||||||||||||||
| Opportunities Fund | Opportunities Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 4,843,634 | 5,488,513 | 459,541 | 787,628 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | — | 9,814 | ||||||||||||
| Shares redeemed | (5,019,164 | ) | (1,104,650 | ) | (910,691 | ) | (835,192 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (175,530 | ) | 4,383,863 | (451,150 | ) | (37,750 | ) | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 605,187 | 321,977 | 151,222 | 358,219 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | — | 1,983 | ||||||||||||
| Shares redeemed | (458,053 | ) | (71,873 | ) | (286,803 | ) | (233,140 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | 147,134 | 250,104 | (135,581 | ) | 127,062 | |||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 251,012 | 110,477 | 40,997 | 25,837 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | — | 1,080 | ||||||||||||
| Shares redeemed | (72,816 | ) | (28,337 | ) | (45,433 | ) | (37,227 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | 178,196 | 82,140 | (4,436 | ) | (10,310 | ) | ||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Shares sold | 1,719,477 | 990,478 | 133,749 | 937,141 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | — | 367 | ||||||||||||
| Shares redeemed | (1,046,919 | ) | (271,270 | ) | (50,621 | ) | (854,503 | ) | ||||||||
| Net increase in | ||||||||||||||||
| shares outstanding | 672,558 | 719,208 | 83,128 | 83,005 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
41
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Alternative | The Multi- | |||||||||||||||
| Income Fund | Disciplinary Income Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (33,516 | ) | $ | (54,057 | ) | $ | 3,337,411 | $ | 1,363,638 | ||||||
| Net realized gain on sale of | ||||||||||||||||
| investments, foreign currency | ||||||||||||||||
| and written option contracts | ||||||||||||||||
| expired or closed | 470,836 | 331,354 | 1,920,531 | 2,371,485 | ||||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments, | ||||||||||||||||
| foreign currency and written | ||||||||||||||||
| options | (108,927 | ) | 594,800 | (3,227,523 | ) | (739,904 | ) | |||||||||
| Net increase in net assets resulting | ||||||||||||||||
| from operations | 328,393 | 872,097 | 2,030,419 | 2,995,219 | ||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Net investment income | — | — | (455,480 | ) | (487,296 | ) | ||||||||||
| Net realized gains | — | — | (248,972 | ) | (441,978 | ) | ||||||||||
| Total distributions | — | — | (704,452 | ) | (929,274 | ) | ||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Net investment income | — | — | (395,670 | ) | (924,799 | ) | ||||||||||
| Net realized gains | — | — | (290,649 | ) | (819,239 | ) | ||||||||||
| Total distributions | — | — | (686,319 | ) | (1,744,038 | ) | ||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Net investment income | — | — | (218,512 | ) | (183,756 | ) | ||||||||||
| Net realized gains | — | — | (209,535 | ) | (258,354 | ) | ||||||||||
| Total distributions | — | — | (428,047 | ) | (442,110 | ) | ||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Net investment income | — | — | (2,149,325 | ) | (457,067 | ) | ||||||||||
| Net realized gains | — | — | (1,730,722 | ) | (509,401 | ) | ||||||||||
| Total distributions | — | — | (3,880,047 | ) | (966,468 | ) | ||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 3,393,314 | 9,908,542 | 3,708,727 | 8,952,699 | ||||||||||||
| Redemption fees | 446 | 9 | 37 | 334 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | 592,803 | 736,771 | ||||||||||||
| Cost of shares redeemed | (7,189,252 | ) | (3,240,996 | ) | (13,631,910 | ) | (9,582,407 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital share | ||||||||||||||||
| transactions | (3,795,492 | ) | 6,667,555 | (9,330,343 | ) | 107,397 | ||||||||||
The accompanying notes are an integral part of these financial statements.
42
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Alternative | The Multi- | |||||||||||||||
| Income Fund | Disciplinary Income Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | $ | 2,345,454 | $ | 1,848,803 | $ | 3,461,056 | $ | 33,189,160 | ||||||||
| Redemption fees | 102 | 313 | 1,186 | 4,331 | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | 630,746 | 1,696,922 | ||||||||||||
| Cost of shares redeemed | (3,730,023 | ) | (1,667,426 | ) | (28,268,189 | ) | (24,094,744 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital | ||||||||||||||||
| share transactions | (1,384,467 | ) | 181,690 | (24,175,201 | ) | 10,795,669 | ||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | 461,527 | 1,152,698 | 1,455,079 | 4,855,689 | ||||||||||||
| Redemption fees | — | — | 33 | — | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | 409,715 | 423,776 | ||||||||||||
| Cost of shares redeemed | (827,335 | ) | (1,134,524 | ) | (2,414,816 | ) | (1,435,484 | ) | ||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from capital | ||||||||||||||||
| share transactions | (365,808 | ) | 18,174 | (549,989 | ) | 3,843,981 | ||||||||||
| CAPITAL SHARE TRANSACTIONS — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Proceeds from shares sold | 23,588,431 | 5,417,780 | 107,173,887 | 17,790,455 | ||||||||||||
| Redemption fees | 80 | — | — | — | ||||||||||||
| Proceeds from shares issued to holders | ||||||||||||||||
| in reinvestment of dividends | — | — | 3,872,607 | 955,985 | ||||||||||||
| Cost of shares redeemed | (3,697,548 | ) | (384,298 | ) | (28,102,437 | ) | (1,638,909 | ) | ||||||||
| Net increase in net assets resulting | ||||||||||||||||
| from capital share transactions | 19,890,963 | 5,033,482 | 82,944,057 | 17,107,531 | ||||||||||||
| TOTAL INCREASE IN NET ASSETS: | 14,673,589 | 12,772,998 | 45,220,078 | 30,767,907 | ||||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 23,462,216 | 10,689,218 | 90,159,516 | 59,391,609 | ||||||||||||
| End of year* | $ | 38,135,805 | $ | 23,462,216 | $ | 135,379,594 | $ | 90,159,516 | ||||||||
| * Including undistributed net investment | ||||||||||||||||
| loss of: | $ | — | $ | — | $ | (845,286 | ) | $ | (935,161 | ) | ||||||
The accompanying notes are an integral part of these financial statements.
43
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Statements of Changes in Net Assets — (Continued) |
| The Alternative | The Multi- | |||||||||||||||
| Income Fund | Disciplinary Income Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 38,237 | 939,415 | 331,467 | 790,030 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | 53,691 | 66,399 | ||||||||||||
| Shares redeemed | (80,966 | ) | (1,368,656 | )(1) | (1,222,512 | ) | (849,113 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (42,729 | ) | (429,241 | ) | (837,354 | ) | 7,316 | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 26,310 | 43,207 | 310,268 | 2,944,381 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | 57,214 | 153,652 | ||||||||||||
| Shares redeemed | (41,822 | ) | (321,663 | )(1) | (2,519,758 | ) | (2,138,431 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (15,512 | ) | (278,456 | ) | (2,152,276 | ) | 959,602 | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 5,282 | 33,993 | 130,823 | 435,881 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | 37,746 | 38,723 | ||||||||||||
| Shares redeemed | (9,522 | ) | (226,741 | )(1) | (220,662 | ) | (128,853 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | (4,240 | ) | (192,748 | ) | (52,093 | ) | 345,751 | |||||||||
| CHANGES IN SHARES OUTSTANDING — | ||||||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||
| Shares sold | 261,887 | 246,519 | 9,538,510 | 1,566,653 | ||||||||||||
| Shares issued in reinvestments of | ||||||||||||||||
| dividends and distributions | — | — | 353,169 | 86,068 | ||||||||||||
| Shares redeemed | (40,965 | ) | (363,249 | )(1) | (2,509,318 | ) | (144,343 | ) | ||||||||
| Net increase (decrease) in | ||||||||||||||||
| shares outstanding | 220,922 | (116,730 | ) | 7,382,361 | 1,508,378 | |||||||||||
| (1) | Shares redeemed include: 1,198,771 No Load Class shares, 210,478 Class A shares, 159,007 Class C shares and 332,551 Institutional Class shares respectively due to the reverse split. |
The accompanying notes are an integral part of these financial statements.
44
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
| Notes to Financial Statements |
| December 31, 2014 |
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 Market Opportunities Fund (“Market Opportunities”), The Alternative Income Fund (“Alternative Income”), and The Multi-Disciplinary Income Fund (“Multi-Disciplinary Income”). Investment operations of the Company began on October 21, 1996 (Internet), September 30, 1999 (Medical), December 31, 1999 (Global and Paradigm), March 20, 2000 (Small Cap), January 31, 2006 (Market Opportunities), June 29, 2007 (Alternative Income), and February 11, 2008 (Multi-Disciplinary Income). Each series, unlike many other investment companies which directly acquire and manage their own portfolios of securities, seeks to achieve its investment objective by investing all of its investable assets in a corresponding portfolio series (each a “Master Portfolio” and collectively the “Master Portfolios”) of Kinetics Portfolios Trust (the “Trust”).
On April 28, 2000 (January 31, 2006 with respect to Market Opportunities, June 29, 2007 with respect to Alternative Income, and February 11, 2008 with respect to Multi-Disciplinary Income), 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.
45
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
Each Feeder Fund’s respective interest in the corresponding Master Portfolio as of December 31, 2014 is as follows:
| Interest in | ||||
| Master Portfolio | ||||
| Internet Fund | 99.988 | % | ||
| Global Fund | 99.917 | % | ||
| Paradigm Fund | 98.636 | % | ||
| Medical Fund | 99.880 | % | ||
| Small Cap Fund | 99.989 | % | ||
| Market Opportunities Fund | 99.971 | % | ||
| Alternative Income Fund | 99.699 | % | ||
| Multi-Disciplinary Income Fund | 99.885 | % | ||
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 December 31, 2014 each of the Feeder Funds offers Advisor Class A shares. Advisor Class A shares are subject to an annual Rule 12b-1 fee of 0.25% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. The Advisor Class A shares are also subject to a front-end sales charge of 5.75%.
As of December 31, 2014, each of the Feeder Funds offers Advisor Class C shares. Advisor Class C shares are subject to an annual Rule 12b-1 fee of 0.75% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. If you sell your Advisor Class C shares within 12 months of purchase, you will have to pay a contingent deferred sales charge of 1.00%, which is applied to the NAV of the shares on the date of original purchase or on the date of redemption, whichever is less.
As of December 31, 2014, each of the Feeder Funds offers No Load Class shares. No Load Class shares are subject to a shareholder servicing fee of 0.25% of average daily net assets but do not have 12b-1 fees or a sales charge.
As of December 31, 2014 the Paradigm, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Income Funds offer Institutional Class shares. Institutional Class shares are subject to a shareholder servicing fee of 0.20% of average daily net assets but do not have 12b-1 fees or a sales charge. The Adviser has voluntarily agreed to waive a portion of the Institutional Class shareholder servicing fee in excess of 0.05%.
46
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
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 front-end sales charge on the Advisor Class A shares, the contingent deferred sales charge on Class C, the shareholder servicing 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 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 Portfolios’ financial statements to obtain information about the investment objective of the corresponding Feeder Fund. The financial statements of the Master Portfolios, including the portfolios of investments, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.
2. Significant Accounting Policies
Security Valuation
Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which an option is quoted, thus providing a view across the entire U.S. options marketplace. Composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. If the composite option price is not available, the mean between the highest bid
47
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
and the lowest asked quotations at the close of the exchanges will be used. If none of the above are available, exchange traded options are valued at the last quoted sales price. Non-exchange traded options for which over-the-counter quotations are not readily available are valued at the mean of the current bid and asked prices. Debt obligations (including convertible securities) that are either investment grade or non-investment grade and irrespective of days to maturity will be valued as follows: Debt securities are valued at evaluated mean by one of the authorized third party pricing agents which rely on various valuation methodologies such as matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. Investments in registered open-end investment companies other than exchange-traded funds are valued at their reported net asset value (“NAV”). Certain instruments such as repurchase agreements and demand notes, are traded at cost and there are no market values available for those instruments from third parties. Those instruments are priced at cost.
Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Advisor or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Advisor; and (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At December 31, 2014, 0.00%, 0.00% and 0.00% of the net assets of The Internet Portfolio, The Paradigm Portfolio and The Market Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at December 31, 2014.
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
48
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 102% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.
Written Option Accounting
The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When a Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.
Foreign Currency Translations
The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market 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
49
| KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
the exchange rate from the fluctuations arising from changes in the market prices of securities held during the year. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.
Restricted and Illiquid Securities
The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At December 31, 2014, the following Master Portfolios held securities restricted to institutional investors (144A securities):
| Percentage of | ||||||||
| Market Value | Net Assets | |||||||
| The Alternative Income Portfolio | $ | 655,485 | 1.71 | % | ||||
| The Multi-Disciplinary Income Portfolio | 24,733,665 | 18.25 | % | |||||
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 December 31, 2014, the following Master Portfolios held illiquid securities:
| Percentage of | ||||||||
| Market Value | Net Assets | |||||||
| The Internet Portfolio | $ | — | * | 0.00 | % | |||
| The Paradigm Portfolio | — | * | 0.00 | % | ||||
| The Market Opportunities Portfolio | — | * | 0.00 | % | ||||
| The Multi-Disciplinary Income Portfolio | 367,500 | 0.27 | % | |||||
| * Amount is less than $0.50. | |
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
50
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
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 Master Portfolio (including any collateral posted) or 50% of the total assets of each Master Portfolio (excluding any collateral posted). Securities lending and repurchase transactions will be fully collateralized at all times with cash and/or short-term debt obligations. The Master Portfolios receive 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 Master Portfolio via its investment in a Feeder Fund will be subject to taxation on its share of the Master Portfolio’s ordinary income and capital gains. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio via its investment in a Feeder Fund can satisfy the requirements of subchapter M of the Internal Revenue Code.
It is the Feeder Funds’ policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and the Feeder Funds intend to distribute investment company net taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is recorded.
51
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
Dividends from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. The character of 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 December 31, 2014, open tax years include the tax years ended December 31, 2011 through 2014. 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 twelve months.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Other
Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis and includes amortization of premiums and discounts on the interest method. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates.
| 3. Investment Adviser |
The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management LLC (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory
52
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
services to the Master Portfolios. The Adviser is a wholly-owned subsidiary of Horizon Kinetics LLC. Under the terms of the Agreements, the Master Portfolios, except the Alternative Income Portfolio, compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets. The Alternative Income Portfolio compensates the Adviser for its management services at the annual rate of 0.90% 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 through at least May 1, 2015. The Adviser may discontinue the voluntary waiver/reimbursement at any time after May 1, 2015; these waivers/reimbursements are not subject to recapture.
For the year ended December 31, 2014, the rate earned by the Adviser from the Master Portfolios and the waived fees/reimbursed expenses for the Feeder Funds are as follows:
| The Internet | The Global | ||||||||
| Fund | Fund | ||||||||
| Annual Advisory Rate | 1.25 | % | 1.25 | % | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| voluntary waiver | $ | — | $ | 131,153 | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| institutional class shareholder | |||||||||
| servicing fee waiver | $ | — | $ | — | |||||
| The Paradigm | The Medical | ||||||||
| Fund | Fund | ||||||||
| Annual Advisory Rate | 1.25 | % | 1.25 | % | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| voluntary waiver | $ | 560,155 | $ | 167,683 | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| institutional class shareholder | |||||||||
| servicing fee waiver | $ | 511,998 | $ | — | |||||
| The Small Cap | The Market | ||||||||
| Opportunities | Opportunities | ||||||||
| Fund | Fund | ||||||||
| Annual Advisory Rate | 1.25 | % | 1.25 | % | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| voluntary waiver | $ | 280,908 | $ | 137,265 | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| institutional class shareholder | |||||||||
| servicing fee waiver | $ | 67,891 | $ | 3,737 | |||||
53
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
| The Alternative | The Multi- | ||||||||
| Income | Disciplinary Income | ||||||||
| Fund | Fund | ||||||||
| Annual Advisory Rate | 0.90 | % | 1.25 | % | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| voluntary waiver | $ | 264,378 | $ | 339,600 | |||||
| Expenses Reimbursed by Adviser through | |||||||||
| institutional class shareholder | |||||||||
| servicing fee waiver | $ | 21,224 | $ | 91,519 | |||||
The Adviser receives a shareholder servicing fee from the No Load Class, Advisor Class A and Advisor Class C shares of a Feeder Fund pursuant to a Shareholder Servicing Agreement in the amount equal to 0.25% of the Feeder Fund’s average daily net assets attributable to No Load Class, Advisor Class A and Advisor Class C shares, respectively. For the Institutional Class, the Adviser receives a shareholder servicing fee pursuant to a shareholder servicing agreement in the amount equal to 0.20% of a Feeder Fund’s average daily net assets attributable to Institutional Class shares. At this time, the Adviser has contractually agreed to waive and/or reimburse the portion of the Institutional Class shareholder servicing fee in excess of 0.05% of a Feeder Fund’s average daily net assets attributable to Institutional Class shares until at least May 1, 2015. For the year ended December 31, 2014, the Adviser waived amounts depicted in the above table in shareholder servicing fees for the Institutional Class of the Paradigm, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Income Funds.
| Shareholder Servicing | |||||
| Expenses Incurred | |||||
| During 2014 | |||||
| The Internet Fund | $ | 413,250 | |||
| The Global Fund | 26,811 | ||||
| The Paradigm Fund | 2,982,375 | ||||
| The Medical Fund | 65,900 | ||||
| The Small Cap Opportunities Fund | 990,572 | ||||
| The Market Opportunities Fund | 156,788 | ||||
| The Alternative Income Fund | 70,753 | ||||
| The Multi-Disciplinary Income Fund | 255,931 | ||||
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.
54
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
For the year ended December 31, 2014, the Feeder Funds were allocated $26,000 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 year ended December 31, 2014, payments under the 12b-1 Plan for the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Income Funds were limited to 0.25% of the average daily net asset value of such shares of such Funds.
| 12b-1 Expenses | |||||||
| Incurred During 2014 | |||||||
| Advisor Class A | Advisor Class C | ||||||
| The Internet Fund | $ | 12,828 | $ | 8,362 | |||
| The Global Fund | 3,180 | 12,080 | |||||
| The Paradigm Fund | 499,393 | 1,052,238 | |||||
| The Medical Fund | 11,364 | 4,324 | |||||
| The Small Cap Opportunities Fund | 74,524 | 91,411 | |||||
| The Market Opportunities Fund | 26,085 | 41,972 | |||||
| The Alternative Income Fund | 7,673 | 11,679 | |||||
| The Multi-Disciplinary Income Fund | 57,683 | 84,928 | |||||
Kinetics Funds Distributor, LLC (the “Distributor”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. The Distributor is an affiliate of the Adviser.
| Distributor Sales | ||||
| Load Fees Received | ||||
| During the Year | ||||
| The Internet Fund | $ | 9,259 | ||
| The Global Fund | 711 | |||
| The Paradigm Fund | 78,907 | |||
| The Medical Fund | 3,022 | |||
| The Small Cap Opportunities Fund | 15,711 | |||
| The Market Opportunities Fund | 2,395 | |||
| The Alternative Income Fund | 640 | |||
| The Multi-Disciplinary Income Fund | 1,887 |
55
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
| 4. Reclassification of Capital Accounts |
GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended December 31, 2014, each Feeder Fund recorded the following reclassifications to the accounts listed below:
INCREASE/(DECREASE) | ||||||||||
| Accumulated | ||||||||||
| Net | Accumulated | |||||||||
| Investment | Net Realized | |||||||||
| Income | Gain | |||||||||
| (Loss) | (Loss) | Paid In Capital | ||||||||
| The Internet Fund | $ | 2,283,475 | $ | (3,694,096 | ) | $ | 1,410,621 | |||
| The Global Fund | 93,029 | 3,671 | (96,700 | ) | ||||||
| The Paradigm Fund | 15,888,600 | (48,133 | ) | (15,840,467 | ) | |||||
| The Medical Fund | 26 | (26 | ) | — | ||||||
| The Small Cap Fund | 3,661,748 | 9,388 | (3,671,136 | ) | ||||||
| The Market Opportunities Fund | 429,934 | 250,208 | (680,142 | ) | ||||||
| The Alternative Income Fund | 33,516 | — | (33,516 | ) | ||||||
| The Multi-Disciplinary Income Fund | (28,549 | ) | 28,549 | — | ||||||
| 5. Income Taxes |
At December 31, 2014, the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Income Funds had $0, $0, $0, $163,939, $0, $0, $0, and $113,181, respectively, of undistributed net investment income on a tax basis.
At December 31, 2014, the Internet and Medical Funds had $3,886,897 and $242,334, respectively, of accumulated net realized gains on a tax basis.
At December 31, 2014, the Feeder Funds had accumulated net realized capital loss carryforwards expiring in the following years:
| Feeder Fund | 2018 | 2017 | 2016 | |||||||
| Internet | $ | — | $ | — | $ | — | ||||
| Global | — | (42,250 | ) | — | ||||||
| Paradigm | (115,786,082 | ) | (445,505,345 | ) | (171,733,296 | ) | ||||
| Medical | — | — | — | |||||||
| Small Cap | (8,224,702 | ) | (96,486,615 | ) | (31,007,116 | ) | ||||
| Market Opportunities | (2,108,533 | ) | (6,623,055 | ) | (12,715,065 | ) | ||||
| Alternative Income | (2,203,647 | ) | (4,868,599 | ) | (483,616 | ) | ||||
| Multi-Disciplinary Income | — | — | — |
56
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
As a result of the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), losses incurred in this fiscal year and beyond retain their character, short-term or long-term, have no expiration date and are utilized prior to capital loss carryforwards accumulated before the enactment of the Modernization Act.
For the year ended December 31, 2014, the following Feeder Funds utilized capital loss carryforwards:
| Capital Loss | ||||
| Fund | Carryforward | |||
| Global | $ | 319,581 | ||
| Paradigm | 35,792,871 | |||
| Medical | 342,501 | |||
| Small Cap | 22,539,948 | |||
| Market Opportunities | 3,893,801 | |||
| Alternative Income | 503,501 |
At December 31, 2014, the following Feeder Funds deferred, on a tax basis, post-October losses:
| Late Year | Post-October | ||||||
| Ordinary | Capital Loss | ||||||
| Feeder Fund | Loss Deferral | Deferral | |||||
| Internet | $ | — | $ | — | |||
| Global | (498 | ) | — | ||||
| Paradigm | (358,026 | ) | — | ||||
| Medical | — | — | |||||
| Small Cap | (211,011 | ) | — | ||||
| Market Opportunities | (82,218 | ) | — | ||||
| Alternative Income | — | — | |||||
| Multi-Disciplinary Income | — | (172,818 | ) |
The tax components of dividends paid during the years ended December 31, 2014 and December 31, 2013, are:
| Internet | Global | ||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | ||||||||||
| Income | Capital Gains | Income | Capital Gains | ||||||||||
| Distribution | Distribution | Distribution | Distribution | ||||||||||
| 2014 | $ | — | $ | 8,349,038 | $ | — | $ | 939 | |||||
| 2013 | $ | — | $ | 8,711,382 | $ | — | $ | 12,940 | |||||
57
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
| Paradigm | Medical | ||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | ||||||||||
| Income | Capital Gains | Income | Capital Gains | ||||||||||
| Distribution | Distribution | Distribution | Distribution | ||||||||||
| 2014 | $ | — | $ | — | $ | — | $ | 41,984 | |||||
| 2013 | $ | 7,266,782 | $ | — | $ | 52,349 | $ | 144,235 | |||||
| Small Cap | Market Opportunities | ||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | ||||||||||
| Income | Capital Gains | Income | Capital Gains | ||||||||||
| Distribution | Distribution | Distribution | Distribution | ||||||||||
| 2014 | $ | — | $ | — | $ | — | $ | — | |||||
| 2013 | $ | — | $ | — | $ | 244,013 | $ | — | |||||
| Alternative Income | Multi-Disciplinary Income | ||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | ||||||||||
| Income | Capital Gains | Income | Capital Gains | ||||||||||
| Distribution | Distribution | Distribution | Distribution | ||||||||||
| 2014 | $ | — | $ | — | $ | 5,680,986 | $ | 17,879 | |||||
| 2013 | $ | — | $ | — | $ | 3,590,035 | $ | 491,855 | |||||
| 6. Tax Information (Unaudited) |
The Funds did not designate any net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Income Funds hereby designate 0%, 0%, 0%, 0%, 0%, 0%, 0% and 99.69%, respectively, as ordinary income distributions and 100%, 100%, 100% and 0.3%, respectively, for the Internet, Global Medical and Multi-Disciplinary Income Funds as long-term capital gain distributions for the purposes of the dividends paid deduction, which include earnings and profits distributed to shareholders on redemptions of Fund shares.
For corporate shareholders in the Feeder Funds, there was no ordinary dividend income distributed for the year ended December 31, 2014 which was designated as qualifying for the dividends-received deduction. The Multi-Disciplinary Income Fund designates 94% of its ordinary income distributions for the fiscal year ended December 31, 2014 as interest-related dividends under Internal Revenue Code Section 871(k)(l)(C).
The Multi-Disciplinary Income Fund designates 43% of its ordinary income distribution as a short-term capital gain distribution under Internal Revenue Code Section 871(k)(2)(C).
58
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Notes to Financial Statements — (Continued) December 31, 2014 |
| 7. Information about Proxy Voting (Unaudited) |
Information regarding how the Company and the Master Portfolios vote proxies relating to portfolio securities is available without charge, upon request by calling toll-free at 1-800-930-3828 or by accessing the Company’s website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Feeder Funds and the Master Portfolios voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.
| 8. Information about the Portfolio Holdings (Unaudited) |
The Feeder Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Form N-Q. The Feeder Funds’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
| 9. Subsequent Events |
In preparing these financial statements, management has evaluated Fund related events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or translations that occurred during the year that materially impacted the amounts or disclosures in the Funds’ financial statements.
| 10. Recent Accounting Pronouncements |
In June 2014, the Financial Accounting Standard Board issued ASU No. 2014-11 “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU No. 2014-11 makes limited changes to the accounting for repurchase agreements, clarifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, and requires additional disclosures regarding these types of transactions. The guidance is effective for fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is currently evaluating the impact these disclosures will have on the Fund’s financial statement disclosures.
59
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights |
| The Internet Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 59.27 | $ | 43.18 | $ | 36.26 | $ | 37.25 | $ | 30.74 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (0.77 | ) | (0.67 | ) | (0.15 | ) | (0.37 | ) | (0.28 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.69 | 19.78 | 8.56 | (0.37 | ) | 6.79 | ||||||||||||||
| Total from investment operations | (0.08 | ) | 19.11 | 8.41 | (0.74 | ) | 6.51 | |||||||||||||
| Redemption Fees | 0.01 | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net realized gains | (3.12 | ) | (3.02 | ) | (1.49 | ) | (0.25 | ) | — | |||||||||||
| Total distributions | (3.12 | ) | (3.02 | ) | (1.49 | ) | (0.25 | ) | — | |||||||||||
| Net Asset Value, End of Year | $ | 56.08 | $ | 59.27 | $ | 43.18 | $ | 36.26 | $ | 37.25 | ||||||||||
| Total return | (0.16 | )% | 44.28 | % | 23.24 | % | (1.98 | )% | 21.18 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 151,200 | $ | 172,332 | $ | 155,036 | $ | 103,828 | $ | 113,085 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.78 | % | 1.84 | % | 1.94 | % | 1.94 | % | 1.95 | % | ||||||||||
After expense reimbursement(4) | 1.78 | % | 1.84 | % | 1.89 | % | 1.89 | % | 1.89 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.34 | )% | (1.30 | )% | (0.41 | )% | (0.99 | )% | (0.91 | )% | ||||||||||
After expense reimbursement(4) | (1.34 | )% | (1.30 | )% | (0.36 | )% | (0.94 | )% | (0.85 | )% | ||||||||||
Portfolio turnover rate(5) | 1 | % | 8 | % | 9 | % | 32 | % | 12 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. | |
| (5) | Portfolio turnover of The Internet Portfolio. | |
The accompanying notes are an integral part of these financial statements.
60
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Internet Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 57.84 | $ | 42.30 | $ | 35.63 | $ | 36.69 | $ | 30.35 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (0.89 | ) | (0.81 | ) | (0.24 | ) | (0.46 | ) | (0.36 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.68 | 19.36 | 8.40 | (0.36 | ) | 6.70 | ||||||||||||||
| Total from investment operations | (0.21 | ) | 18.55 | 8.16 | (0.82 | ) | 6.34 | |||||||||||||
| Redemption Fees | 0.00 | (3) | 0.01 | — | 0.01 | 0.00 | (3) | |||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net realized gains | (3.12 | ) | (3.02 | ) | (1.49 | ) | (0.25 | ) | — | |||||||||||
| Total distributions | (3.12 | ) | (3.02 | ) | (1.49 | ) | (0.25 | ) | — | |||||||||||
| Net Asset Value, End of Year | $ | 54.51 | $ | 57.84 | $ | 42.30 | $ | 35.63 | $ | 36.69 | ||||||||||
Total return(4) | (0.41 | )% | 43.94 | % | 22.92 | % | (2.20 | )% | 20.89 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 5,143 | $ | 5,506 | $ | 1,379 | $ | 1,050 | $ | 1,892 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement. | 2.03 | % | 2.09 | % | 2.19 | % | 2.19 | % | 2.20 | % | ||||||||||
After expense reimbursement(5) | 2.03 | % | 2.09 | % | 2.14 | % | 2.14 | % | 2.14 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.59 | )% | (1.55 | )% | (0.66 | )% | (1.24 | )% | (1.16 | )% | ||||||||||
After expense reimbursement(5) | (1.59 | )% | (1.55 | )% | (0.61 | )% | (1.19 | )% | (1.10 | )% | ||||||||||
Portfolio turnover rate(6) | 1 | % | 8 | % | 9 | % | 32 | % | 12 | % | ||||||||||
______________________
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Internet Portfolio. |
The accompanying notes are an integral part of these financial statements.
61
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Internet Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 55.38 | $ | 40.79 | $ | 34.58 | $ | 35.79 | $ | 29.76 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (1.11 | ) | (1.03 | ) | (0.43 | ) | (0.63 | ) | (0.51 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.64 | 18.64 | 8.13 | (0.34 | ) | 6.54 | ||||||||||||||
| Total from investment operations | (0.47 | ) | 17.61 | 7.70 | (0.97 | ) | 6.03 | |||||||||||||
| Redemption Fees | 0.02 | — | — | 0.01 | — | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net realized gains | (3.12 | ) | (3.02 | ) | (1.49 | ) | (0.25 | ) | — | |||||||||||
| Total distributions | (3.12 | ) | (3.02 | ) | (1.49 | ) | (0.25 | ) | — | |||||||||||
| Net Asset Value, End of Year | $ | 51.81 | $ | 55.38 | $ | 40.79 | $ | 34.58 | $ | 35.79 | ||||||||||
| Total return | (0.86 | )% | 43.20 | % | 22.32 | % | (2.67 | )% | 20.26 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 1,105 | $ | 913 | $ | 185 | $ | 103 | $ | 196 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.53 | % | 2.59 | % | 2.69 | % | 2.69 | % | 2.70 | % | ||||||||||
After expense reimbursement(3) | 2.53 | % | 2.59 | % | 2.64 | % | 2.64 | % | 2.64 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (2.09 | )% | (2.05 | )% | (1.16 | )% | (1.74 | )% | (1.66 | )% | ||||||||||
After expense reimbursement(3) | (2.09 | )% | (2.05 | )% | (1.11 | )% | (1.69 | )% | (1.60 | )% | ||||||||||
Portfolio turnover rate(4) | 1 | % | 8 | % | 9 | % | 32 | % | 12 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. | |
| (4) | Portfolio turnover of The Internet Portfolio. | |
The accompanying notes are an integral part of these financial statements.
62
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Global Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 6.05 | $ | 4.71 | $ | 3.92 | $ | 4.67 | $ | 3.92 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.02 | ) | 0.01 | 0.03 | 0.06 | 0.02 | ||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.70 | ) | 1.34 | 0.88 | (0.78 | ) | 0.78 | |||||||||||||
| Total from investment operations | (0.72 | ) | 1.35 | 0.91 | (0.72 | ) | 0.80 | |||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.01 | ) | (0.12 | ) | (0.03 | ) | (0.05 | ) | |||||||||||
| From net realized gains | (0.00 | )(3) | — | — | — | — | ||||||||||||||
| Total distributions | (0.00 | )(3) | (0.01 | ) | (0.12 | ) | (0.03 | ) | (0.05 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 5.33 | $ | 6.05 | $ | 4.71 | $ | 3.92 | $ | 4.67 | ||||||||||
| Total return | (11.89 | )% | 28.59 | % | 23.16 | % | (15.41 | )% | 20.30 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 6,771 | $ | 8,705 | $ | 5,069 | $ | 3,631 | $ | 4,541 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.61 | % | 2.83 | % | 3.38 | % | 3.94 | % | 4.17 | % | ||||||||||
After expense reimbursement(4) | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.54 | )% | (1.22 | )% | (1.22 | )% | (1.11 | )% | (2.26 | )% | ||||||||||
After expense reimbursement(4) | (0.32 | )% | 0.22 | % | 0.77 | % | 1.44 | % | 0.52 | % | ||||||||||
Portfolio turnover rate(5) | 14 | % | 15 | % | 23 | % | 135 | % | 122 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. | |
| (5) | Portfolio turnover of The Global Portfolio. | |
The accompanying notes are an integral part of these financial statements.
63
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Global Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 6.03 | $ | 4.71 | $ | 3.92 | $ | 4.68 | $ | 3.93 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.03 | ) | (0.00 | )(3) | 0.02 | 0.05 | 0.01 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.70 | ) | 1.33 | 0.88 | (0.78 | ) | 0.78 | |||||||||||||
| Total from investment operations | (0.73 | ) | 1.33 | 0.90 | (0.73 | ) | 0.79 | |||||||||||||
| Redemption Fees | 0.01 | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.01 | ) | (0.11 | ) | (0.03 | ) | (0.04 | ) | |||||||||||
| From net realized gains | (0.00 | )(3) | — | — | — | — | ||||||||||||||
| Total distributions | (0.00 | )(3) | (0.01 | ) | (0.11 | ) | (0.03 | ) | (0.04 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 5.31 | $ | 6.03 | $ | 4.71 | $ | 3.92 | $ | 4.68 | ||||||||||
Total return(4) | (11.93 | )% | 28.16 | % | 22.94 | % | (15.59 | )% | 20.04 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 497 | $ | 1,992 | $ | 1,093 | $ | 392 | $ | 707 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.86 | % | 3.08 | % | 3.63 | % | 4.19 | % | 4.42 | % | ||||||||||
After expense reimbursement(5) | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.79 | )% | (1.47 | )% | (1.47 | )% | (1.36 | )% | (2.51 | )% | ||||||||||
After expense reimbursement(5) | (0.57 | )% | (0.03 | )% | 0.52 | % | 1.19 | % | 0.27 | % | ||||||||||
Portfolio turnover rate(6) | 14 | % | 15 | % | 23 | % | 135 | % | 122 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Global Portfolio. |
The accompanying notes are an integral part of these financial statements.
64
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Global Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 5.90 | $ | 4.62 | $ | 3.87 | $ | 4.64 | $ | 3.90 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.06 | ) | (0.03 | ) | 0.00 | (3) | 0.03 | (0.01 | ) | |||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.68 | ) | 1.32 | 0.85 | (0.77 | ) | 0.77 | |||||||||||||
| Total from investment operations | (0.74 | ) | 1.29 | 0.85 | (0.74 | ) | 0.76 | |||||||||||||
| Redemption Fees | 0.00 | (3) | — | — | — | — | ||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.01 | ) | (0.10 | ) | (0.03 | ) | (0.02 | ) | |||||||||||
| From net realized gains | (0.00 | )(3) | — | — | — | — | ||||||||||||||
| Total distributions | (0.00 | )(3) | (0.01 | ) | (0.10 | ) | (0.03 | ) | (0.02 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 5.16 | $ | 5.90 | $ | 4.62 | $ | 3.87 | $ | 4.64 | ||||||||||
| Total return | (12.53 | )% | 27.84 | % | 22.04 | % | (15.94 | )% | 19.24 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 1,608 | $ | 1,523 | $ | 383 | $ | 111 | $ | 64 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 3.36 | % | 3.58 | % | 4.13 | % | 4.69 | % | 4.92 | % | ||||||||||
After expense reimbursement(4) | 2.14 | % | 2.14 | % | 2.14 | % | 2.14 | % | 2.14 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (2.29 | )% | (1.97 | )% | (1.97 | )% | (1.86 | )% | (3.01 | )% | ||||||||||
After expense reimbursement(4) | (1.07 | )% | (0.53 | )% | 0.02 | % | 0.69 | % | (0.23 | )% | ||||||||||
Portfolio turnover rate(5) | 14 | % | 15 | % | 23 | % | 135 | % | 122 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Global Portfolio. |
The accompanying notes are an integral part of these financial statements.
65
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Paradigm Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 34.35 | $ | 23.99 | $ | 19.81 | $ | 23.31 | $ | 20.18 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.36 | ) | (0.15 | ) | 0.05 | 0.02 | 0.11 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.09 | 10.72 | 4.25 | (3.34 | ) | 3.39 | ||||||||||||||
| Total from investment operations | (0.27 | ) | 10.57 | 4.30 | (3.32 | ) | 3.50 | |||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.21 | ) | (0.12 | ) | (0.18 | ) | (0.37 | ) | |||||||||||
| Total distributions | — | (0.21 | ) | (0.12 | ) | (0.18 | ) | (0.37 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 34.08 | $ | 34.35 | $ | 23.99 | $ | 19.81 | $ | 23.31 | ||||||||||
| Total return | (0.79 | )% | 44.07 | % | 21.78 | % | (14.27 | )% | 17.37 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 521,738 | $ | 597,746 | $ | 416,696 | $ | 430,528 | $ | 687,056 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.68 | % | 1.72 | % | 1.78 | % | 1.78 | % | 1.76 | % | ||||||||||
After expense reimbursement(4) | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.06 | )% | (0.60 | )% | 0.08 | % | (0.03 | )% | 0.43 | % | ||||||||||
After expense reimbursement(4) | (1.02 | )% | (0.52 | )% | 0.22 | % | 0.11 | % | 0.55 | % | ||||||||||
Portfolio turnover rate(5) | 7 | % | 4 | % | 6 | % | 58 | % | 7 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
66
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Paradigm Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 33.74 | $ | 23.59 | $ | 19.45 | $ | 22.95 | $ | 19.88 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.43 | ) | (0.22 | ) | (0.01 | ) | (0.03 | ) | 0.06 | |||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.08 | 10.53 | 4.18 | (3.29 | ) | 3.33 | ||||||||||||||
| Total from investment operations | (0.35 | ) | 10.31 | 4.17 | (3.32 | ) | 3.39 | |||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.16 | ) | (0.03 | ) | (0.18 | ) | (0.32 | ) | |||||||||||
| Total distributions | — | (0.16 | ) | (0.03 | ) | (0.18 | ) | (0.32 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 33.39 | $ | 33.74 | $ | 23.59 | $ | 19.45 | $ | 22.95 | ||||||||||
Total return(4) | (1.04 | )% | 43.70 | % | 21.49 | % | (14.49 | )% | 17.11 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 171,958 | $ | 204,548 | $ | 135,747 | $ | 146,939 | $ | 226,264 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.93 | % | 1.97 | % | 2.03 | % | 2.03 | % | 2.01 | % | ||||||||||
After expense reimbursement(5) | 1.89 | % | 1.89 | % | 1.89 | % | 1.89 | % | 1.89 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.31 | )% | (0.85 | )% | (0.17 | )% | (0.28 | )% | 0.18 | % | ||||||||||
After expense reimbursement(5). | (1.27 | )% | (0.77 | )% | (0.03 | )% | (0.14 | )% | 0.30 | % | ||||||||||
Portfolio turnover rate(6) | 7 | % | 4 | % | 6 | % | 58 | % | 7 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
67
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Paradigm Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 32.38 | $ | 22.66 | $ | 18.76 | $ | 22.25 | $ | 19.33 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (0.58 | ) | (0.35 | ) | (0.11 | ) | (0.14 | ) | (0.04 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.08 | 10.10 | 4.01 | (3.17 | ) | 3.22 | ||||||||||||||
| Total from investment operations | (0.50 | ) | 9.75 | 3.90 | (3.31 | ) | 3.18 | |||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.03 | ) | — | (0.18 | ) | (0.26 | ) | ||||||||||||
| Total distributions | — | (0.03 | ) | — | (0.18 | ) | (0.26 | ) | ||||||||||||
| Net Asset Value, End of Year | $ | 31.88 | $ | 32.38 | $ | 22.66 | $ | 18.76 | $ | 22.25 | ||||||||||
| Total return | (1.54 | )% | 43.01 | % | 20.85 | % | (14.90 | )% | 16.45 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 135,333 | $ | 138,355 | $ | 101,405 | $ | 102,534 | $ | 152,571 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.43 | % | 2.47 | % | 2.53 | % | 2.53 | % | 2.51 | % | ||||||||||
After expense reimbursement(4) | 2.39 | % | 2.39 | % | 2.39 | % | 2.39 | % | 2.39 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.81 | )% | (1.35 | )% | (0.67 | )% | (0.78 | )% | (0.32 | )% | ||||||||||
After expense reimbursement(4) | (1.77 | )% | (1.27 | )% | (0.53 | )% | (0.64 | )% | (0.20 | )% | ||||||||||
Portfolio turnover rate(5) | 7 | % | 4 | % | 6 | % | 58 | % | 7 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
68
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Paradigm Fund | ||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 34.28 | $ | 23.93 | $ | 19.79 | $ | 23.25 | $ | 20.13 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.29 | ) | (0.09 | ) | 0.10 | 0.07 | 0.16 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 0.09 | 10.70 | 4.24 | (3.35 | ) | 3.38 | ||||||||||||||
| Total from investment operations | (0.20 | ) | 10.61 | 4.34 | (3.28 | ) | 3.54 | |||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.26 | ) | (0.20 | ) | (0.18 | ) | (0.42 | ) | |||||||||||
| Total distributions | — | (0.26 | ) | (0.20 | ) | (0.18 | ) | (0.42 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 34.08 | $ | 34.28 | $ | 23.93 | $ | 19.79 | $ | 23.25 | ||||||||||
| Total return | (0.61 | )% | 44.40 | % | 21.99 | % | (14.13 | )% | 17.62 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 346,273 | $ | 333,682 | $ | 192,478 | $ | 134,309 | $ | 142,261 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.63 | % | 1.67 | % | 1.73 | % | 1.73 | % | 1.71 | % | ||||||||||
After expense reimbursement(4) | 1.44 | % | 1.44 | % | 1.44 | % | 1.44 | % | 1.44 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.01 | )% | (0.55 | )% | 0.13 | % | 0.02 | % | 0.48 | % | ||||||||||
After expense reimbursement(4) | (0.82 | )% | (0.32 | )% | 0.42 | % | 0.31 | % | 0.75 | % | ||||||||||
Portfolio turnover rate(5) | 7 | % | 4 | % | 6 | % | 58 | % | 7 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Paradigm Portfolio. |
The accompanying notes are an integral part of these financial statements.
69
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Medical Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 26.38 | $ | 17.82 | $ | 18.75 | $ | 19.48 | $ | 18.77 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | 0.13 | (0.00 | )(3) | 0.33 | 0.18 | 0.10 | ||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| on investments | 4.21 | 8.77 | 1.32 | 0.82 | 0.72 | |||||||||||||||
| Total from investment operations | 4.34 | 8.77 | 1.65 | 1.00 | 0.82 | |||||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.06 | ) | (0.36 | ) | (0.25 | ) | (0.11 | ) | |||||||||||
| From net realized gains | (0.05 | ) | (0.15 | ) | (2.22 | ) | (1.48 | ) | — | |||||||||||
| Total distributions | (0.05 | ) | (0.21 | ) | (2.58 | ) | (1.73 | ) | (0.11 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 30.67 | $ | 26.38 | $ | 17.82 | $ | 18.75 | $ | 19.48 | ||||||||||
| Total return | 16.44 | % | 49.25 | % | 8.86 | % | 5.11 | % | 4.30 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 21,876 | $ | 20,489 | $ | 14,254 | $ | 16,376 | $ | 25,777 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.02 | % | 2.09 | % | 2.22 | % | 2.02 | % | 2.00 | % | ||||||||||
After expense reimbursement(4) | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.17 | )% | (0.70 | )% | 0.83 | % | 0.24 | % | (0.06 | )% | ||||||||||
After expense reimbursement(4) | 0.46 | % | 0.00 | % | 1.66 | % | 0.87 | % | 0.55 | % | ||||||||||
Portfolio turnover rate(5) | 3 | % | 12 | % | 0 | % | 5 | % | 3 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
70
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Medical Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 25.62 | $ | 17.33 | $ | 18.29 | $ | 19.06 | $ | 18.36 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | 0.06 | (0.06 | ) | 0.27 | 0.12 | 0.05 | ||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| on investments | 4.08 | 8.52 | 1.29 | 0.80 | 0.71 | |||||||||||||||
| Total from investment operations | 4.14 | 8.46 | 1.56 | 0.92 | 0.76 | |||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.01 | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.03 | ) | (0.30 | ) | (0.21 | ) | (0.06 | ) | |||||||||||
| From net realized gains | (0.05 | ) | (0.15 | ) | (2.22 | ) | (1.48 | ) | — | |||||||||||
| Total distributions | (0.05 | ) | (0.18 | ) | (2.52 | ) | (1.69 | ) | (0.06 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 29.71 | $ | 25.62 | $ | 17.33 | $ | 18.29 | $ | 19.06 | ||||||||||
Total return(4) | 16.15 | % | 48.90 | % | 8.60 | % | 4.79 | % | 4.13 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 4,578 | $ | 3,746 | $ | 2,583 | $ | 3,240 | $ | 4,207 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.27 | % | 2.34 | % | 2.47 | % | 2.27 | % | 2.25 | % | ||||||||||
After expense reimbursement(5) | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.42 | )% | (0.95 | )% | 0.58 | % | (0.01 | )% | (0.31 | )% | ||||||||||
After expense reimbursement(5) | 0.21 | % | (0.25 | )% | 1.41 | % | 0.62 | % | 0.30 | % | ||||||||||
Portfolio turnover rate(6) | 3 | % | 12 | % | 0 | % | 5 | % | 3 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
71
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Medical Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 25.27 | $ | 17.19 | $ | 18.15 | $ | 18.90 | $ | 18.27 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.08 | ) | (0.16 | ) | 0.17 | 0.02 | (0.04 | ) | ||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| on investments | 4.01 | 8.42 | 1.29 | 0.80 | 0.69 | |||||||||||||||
| Total from investment operations | 3.93 | 8.26 | 1.46 | 0.82 | 0.65 | |||||||||||||||
| Redemption Fees | — | — | — | 0.00 | (3) | — | ||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.03 | ) | (0.20 | ) | (0.09 | ) | (0.02 | ) | |||||||||||
| From net realized gains | (0.05 | ) | (0.15 | ) | (2.22 | ) | (1.48 | ) | — | |||||||||||
| Total distributions | (0.05 | ) | (0.18 | ) | (2.42 | ) | (1.57 | ) | (0.02 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 29.15 | $ | 25.27 | $ | 17.19 | $ | 18.15 | $ | 18.90 | ||||||||||
| Total return | 15.54 | % | 48.08 | % | 8.08 | % | 4.32 | % | 3.55 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 631 | $ | 531 | $ | 450 | $ | 580 | $ | 692 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.77 | % | 2.84 | % | 2.97 | % | 2.77 | % | 2.75 | % | ||||||||||
After expense reimbursement(4) | 2.14 | % | 2.14 | % | 2.14 | % | 2.14 | % | 2.14 | % | ||||||||||
| Ratio of net investment income (loss) to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.92 | )% | (1.45 | )% | 0.08 | % | (0.51 | )% | (0.81 | )% | ||||||||||
After expense reimbursement(4) | (0.29 | )% | (0.75 | )% | 0.91 | % | 0.12 | % | (0.20 | )% | ||||||||||
Portfolio turnover rate(5) | 3 | % | 12 | % | 0 | % | 5 | % | 3 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
72
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Small Cap Opportunities Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 40.12 | $ | 25.17 | $ | 19.85 | $ | 23.32 | $ | 20.83 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.36 | ) | (0.10 | ) | 0.01 | (0.04 | ) | (0.04 | ) | |||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (2.56 | ) | 15.05 | 5.31 | (3.15 | ) | 2.93 | |||||||||||||
| Total from investment operations | (2.92 | ) | 14.95 | 5.32 | (3.19 | ) | 2.89 | |||||||||||||
| Redemption Fees | 0.01 | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | — | (0.28 | ) | (0.40 | ) | |||||||||||||
| Total distributions | — | — | — | (0.28 | ) | (0.40 | ) | |||||||||||||
| Net Asset Value, End of Year | $ | 37.21 | $ | 40.12 | $ | 25.17 | $ | 19.85 | $ | 23.32 | ||||||||||
| Total return | (7.28 | )% | 59.40 | % | 26.74 | % | (13.65 | )% | 13.86 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 251,110 | $ | 277,816 | $ | 63,947 | $ | 67,798 | $ | 130,279 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.71 | % | 1.73 | % | 1.96 | % | 1.90 | % | 1.86 | % | ||||||||||
After expense reimbursement(4) | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.96 | )% | (0.38 | )% | (0.25 | )% | (0.44 | )% | (0.42 | )% | ||||||||||
After expense reimbursement(4) | (0.89 | )% | (0.29 | )% | 0.07 | % | (0.18 | )% | (0.20 | )% | ||||||||||
Portfolio turnover rate(5) | 19 | % | 6 | % | 22 | % | 47 | % | 4 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
73
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Small Cap Opportunities Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 39.39 | $ | 24.77 | $ | 19.59 | $ | 22.98 | $ | 20.53 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (0.45 | ) | (0.18 | ) | (0.04 | ) | (0.10 | ) | (0.09 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (2.51 | ) | 14.79 | �� | 5.22 | (3.08 | ) | 2.87 | ||||||||||||
| Total from investment operations | (2.96 | ) | 14.61 | 5.18 | (3.18 | ) | 2.78 | |||||||||||||
| Redemption Fees | 0.00 | (3) | 0.01 | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | — | (0.21 | ) | (0.33 | ) | |||||||||||||
| Total distributions | — | — | — | (0.21 | ) | (0.33 | ) | |||||||||||||
| Net Asset Value, End of Year | $ | 36.43 | $ | 39.39 | $ | 24.77 | $ | 19.59 | $ | 22.98 | ||||||||||
Total return(4) | (7.54 | )% | 59.02 | % | 26.44 | % | (13.85 | )% | 13.56 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 25,591 | $ | 21,871 | $ | 7,558 | $ | 7,250 | $ | 11,509 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.96 | % | 1.98 | % | 2.21 | % | 2.15 | % | 2.11 | % | ||||||||||
After expense reimbursement(5) | 1.89 | % | 1.89 | % | 1.89 | % | 1.89 | % | 1.89 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.21 | )% | (0.63 | )% | (0.50 | )% | (0.69 | )% | (0.67 | )% | ||||||||||
After expense reimbursement(5) | (1.14 | )% | (0.54 | )% | (0.18 | )% | (0.43 | )% | (0.45 | )% | ||||||||||
Portfolio turnover rate(6) | 19 | % | 6 | % | 22 | % | 47 | % | 4 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
74
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Small Cap Opportunities Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 38.53 | $ | 24.35 | $ | 19.36 | $ | 22.68 | $ | 20.28 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (0.63 | ) | (0.34 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (2.44 | ) | 14.51 | 5.14 | (3.04 | ) | 2.84 | |||||||||||||
| Total from investment operations | (3.07 | ) | 14.17 | 4.99 | (3.24 | ) | 2.64 | |||||||||||||
| Redemption Fees | 0.01 | 0.01 | — | — | — | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | — | (0.08 | ) | (0.24 | ) | |||||||||||||
| Total distributions | — | — | — | (0.08 | ) | (0.24 | ) | |||||||||||||
| Net Asset Value, End of Year | $ | 35.47 | $ | 38.53 | $ | 24.35 | $ | 19.36 | $ | 22.68 | ||||||||||
| Total return | (7.97 | )% | 58.23 | % | 25.77 | % | (14.29 | )% | 13.00 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 12,928 | $ | 7,178 | $ | 2,536 | $ | 2,440 | $ | 3,450 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.46 | % | 2.48 | % | 2.71 | % | 2.65 | % | 2.61 | % | ||||||||||
After expense reimbursement(3) | 2.39 | % | 2.39 | % | 2.39 | % | 2.39 | % | 2.39 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.71 | )% | (1.13 | )% | (1.00 | )% | (1.19 | )% | (1.17 | )% | ||||||||||
After expense reimbursement(3) | (1.64 | )% | (1.04 | )% | (0.68 | )% | (0.93 | )% | (0.95 | )% | ||||||||||
Portfolio turnover rate(4) | 19 | % | 6 | % | 22 | % | 47 | % | 4 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (4) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
75
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Small Cap Opportunities Fund | ||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 40.44 | $ | 25.32 | $ | 19.93 | $ | 23.45 | $ | 20.90 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.28 | ) | (0.03 | ) | 0.06 | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (2.59 | ) | 15.15 | 5.33 | (3.17 | ) | 2.95 | |||||||||||||
| Total from investment operations | (2.87 | ) | 15.12 | 5.39 | (3.17 | ) | 2.95 | |||||||||||||
| Redemption Fees | 0.00 | (3) | — | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | — | (0.35 | ) | (0.40 | ) | |||||||||||||
| Total distributions | — | — | — | (0.35 | ) | (0.40 | ) | |||||||||||||
| Net Asset Value, End of Year | $ | 37.57 | $ | 40.44 | $ | 25.32 | $ | 19.93 | $ | 23.45 | ||||||||||
Total return(4) | (7.12 | )% | 59.72 | % | 27.04 | % | (13.51 | )% | 14.10 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 63,392 | $ | 41,032 | $ | 7,482 | $ | 5,498 | $ | 9,808 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.66 | % | 1.68 | % | 1.91 | % | 1.85 | % | 1.81 | % | ||||||||||
After expense reimbursement(4) | 1.44 | % | 1.44 | % | 1.44 | % | 1.44 | % | 1.44 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.91 | )% | (0.33 | )% | (0.20 | )% | (0.39 | )% | (0.37 | )% | ||||||||||
After expense reimbursement(4) | (0.69 | )% | (0.09 | )% | 0.27 | % | 0.02 | % | 0.00 | % | ||||||||||
Portfolio turnover rate(5) | 19 | % | 6 | % | 22 | % | 47 | % | 4 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
76
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Market Opportunities Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 17.66 | $ | 12.08 | $ | 10.45 | $ | 11.46 | $ | 10.84 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.10 | ) | 0.00 | (3) | 0.03 | 0.01 | 0.04 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.88 | ) | 5.65 | 1.80 | (0.91 | ) | 1.18 | |||||||||||||
| Total from investment operations | (0.98 | ) | 5.65 | 1.83 | (0.90 | ) | 1.22 | |||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.07 | ) | (0.20 | ) | (0.11 | ) | (0.60 | ) | |||||||||||
| Total distributions | — | (0.07 | ) | (0.20 | ) | (0.11 | ) | (0.60 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 16.68 | $ | 17.66 | $ | 12.08 | $ | 10.45 | $ | 11.46 | ||||||||||
| Total return | (5.55 | )% | 46.74 | % | 17.52 | % | (7.85 | )% | 11.31 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 37,318 | $ | 47,466 | $ | 32,929 | $ | 30,191 | $ | 38,562 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.86 | % | 1.88 | % | 1.97 | % | 1.93 | % | 1.92 | % | ||||||||||
After expense reimbursement(4) | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.77 | )% | (0.21 | )% | (0.10 | )% | (0.20 | )% | 0.06 | % | ||||||||||
After expense reimbursement(4) | (0.55 | )% | 0.03 | % | 0.23 | % | 0.09 | % | 0.34 | % | ||||||||||
Portfolio turnover rate(5) | 18 | % | 21 | % | 26 | % | 14 | % | 12 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
77
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Market Opportunities Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 17.60 | $ | 12.07 | $ | 10.43 | $ | 11.43 | $ | 10.80 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.14 | ) | (0.03 | ) | 0.00 | (3) | (0.02 | ) | 0.01 | |||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.87 | ) | 5.63 | 1.80 | (0.90 | ) | 1.19 | |||||||||||||
| Total from investment operations | (1.01 | ) | 5.60 | 1.80 | (0.92 | ) | 1.20 | |||||||||||||
| Redemption Fees | — | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.07 | ) | (0.16 | ) | (0.08 | ) | (0.57 | ) | |||||||||||
| Total distributions | — | (0.07 | ) | (0.16 | ) | (0.08 | ) | (0.57 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 16.59 | $ | 17.60 | $ | 12.07 | $ | 10.43 | $ | 11.43 | ||||||||||
Total return(4) | (5.74 | )% | 46.36 | % | 17.26 | % | (8.08 | )% | 11.11 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 8,817 | $ | 11,742 | $ | 6,518 | $ | 8,600 | $ | 14,167 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.11 | % | 2.13 | % | 2.22 | % | 2.18 | % | 2.17 | % | ||||||||||
After expense reimbursement(5) | 1.89 | % | 1.89 | % | 1.89 | % | 1.89 | % | 1.89 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.02 | )% | (0.46 | )% | (0.35 | )% | (0.45 | )% | (0.19 | )% | ||||||||||
After expense reimbursement(5) | (0.80 | )% | (0.22 | )% | (0.02 | )% | (0.16 | )% | 0.09 | % | ||||||||||
Portfolio turnover rate(6) | 18 | % | 21 | % | 26 | % | 14 | % | 12 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
78
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Market Opportunities Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 17.32 | $ | 11.94 | $ | 10.32 | $ | 11.30 | $ | 10.69 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment loss(2) | (0.22 | ) | (0.11 | ) | (0.06 | ) | (0.08 | ) | (0.04 | ) | ||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.86 | ) | 5.56 | 1.78 | (0.88 | ) | 1.17 | |||||||||||||
| Total from investment operations | (1.08 | ) | 5.45 | 1.72 | (0.96 | ) | 1.13 | |||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | — | 0.00 | (3) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.07 | ) | (0.10 | ) | (0.02 | ) | (0.52 | ) | |||||||||||
| Total distributions | — | (0.07 | ) | (0.10 | ) | (0.02 | ) | (0.52 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 16.24 | $ | 17.32 | $ | 11.94 | $ | 10.32 | $ | 11.30 | ||||||||||
| Total return | (6.24 | )% | 45.61 | % | 16.70 | % | (8.51 | )% | 10.54 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 5,109 | $ | 5,525 | $ | 3,932 | $ | 4,233 | $ | 5,569 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.61 | % | 2.63 | % | 2.72 | % | 2.68 | % | 2.67 | % | ||||||||||
After expense reimbursement(4) | 2.39 | % | 2.39 | % | 2.39 | % | 2.39 | % | 2.39 | % | ||||||||||
| Ratio of net investment loss to | ||||||||||||||||||||
| average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.52 | )% | (0.96 | )% | (0.85 | )% | (0.95 | )% | (0.69 | )% | ||||||||||
After expense reimbursement(4) | (1.30 | )% | (0.72 | )% | (0.52 | )% | (0.66 | )% | (0.41 | )% | ||||||||||
Portfolio turnover rate(5) | 18 | % | 21 | % | 26 | % | 14 | % | 12 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
79
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Market Opportunities Fund | ||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 17.74 | $ | 12.10 | $ | 10.46 | $ | 11.48 | $ | 10.86 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.06 | ) | 0.03 | 0.05 | 0.03 | 0.06 | ||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.88 | ) | 5.67 | 1.81 | (0.92 | ) | 1.19 | |||||||||||||
| Total from investment operations | (0.94 | ) | 5.70 | 1.86 | (0.89 | ) | 1.25 | |||||||||||||
| Redemption Fees | — | 0.01 | — | — | — | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.07 | ) | (0.22 | ) | (0.13 | ) | (0.63 | ) | |||||||||||
| Total distributions | — | (0.07 | ) | (0.22 | ) | (0.13 | ) | (0.63 | ) | |||||||||||
| Net Asset Value, End of Year | $ | 16.80 | $ | 17.74 | $ | 12.10 | $ | 10.46 | $ | 11.48 | ||||||||||
| Total return | (5.36 | )% | 47.15 | % | 17.83 | % | (7.71 | )% | 11.54 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 3,108 | $ | 1,809 | $ | 229 | $ | 186 | $ | 212 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.81 | % | 1.83 | % | 1.92 | % | 1.88 | % | 1.87 | % | ||||||||||
After expense reimbursement(3) | 1.44 | % | 1.44 | % | 1.44 | % | 1.44 | % | 1.44 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.72 | )% | (0.16 | )% | (0.05 | )% | (0.15 | )% | 0.11 | % | ||||||||||
After expense reimbursement(3) | (0.35 | )% | 0.23 | % | 0.43 | % | 0.29 | % | 0.54 | % | ||||||||||
Portfolio turnover rate(4) | 18 | % | 21 | % | 26 | % | 14 | % | 12 | % | ||||||||||
| (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) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (4) | Portfolio turnover of The Market Opportunities Portfolio. |
The accompanying notes are an integral part of these financial statements.
80
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Alternative Income Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012(1) | 2011(1) | 2010(1) | ||||||||||||||||
PER SHARE DATA:(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 87.88 | $ | 83.31 | $ | 77.90 | $ | 83.82 | $ | 88.57 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(3) | (0.12 | ) | (0.21 | ) | 1.53 | 1.03 | 0.72 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 1.30 | 4.78 | 6.09 | (5.13 | ) | (4.75 | ) | |||||||||||||
| Total from investment operations | 1.18 | 4.57 | 7.62 | (4.10 | ) | (4.03 | ) | |||||||||||||
Redemption Fees(4) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | (2.21 | ) | (1.82 | ) | (0.72 | ) | ||||||||||||
| Total distributions | — | — | (2.21 | ) | (1.82 | ) | (0.72 | ) | ||||||||||||
| Net Asset Value, End of Year | $ | 89.06 | $ | 87.88 | $ | 83.31 | $ | 77.90 | $ | 83.82 | ||||||||||
| Total return | 1.50 | % | 5.22 | % | 9.90 | % | (4.88 | )% | (4.60 | )% | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 8,202 | $ | 11,848 | $ | 4,699 | $ | 5,613 | $ | 7,001 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.80 | % | 2.23 | % | 2.55 | % | 2.29 | % | 2.17 | % | ||||||||||
After expense reimbursement(5) | 0.95 | % | 0.95 | % | 1.64 | % | 1.64 | % | 1.64 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.99 | )% | (1.52 | )% | 0.93 | % | 0.59 | % | 0.33 | % | ||||||||||
After expense reimbursement(5) | (0.14 | )% | (0.24 | )% | 1.84 | % | 1.24 | % | 0.86 | % | ||||||||||
Portfolio turnover rate(6) | 17 | % | 19 | % | 56 | % | 69 | % | 111 | % | ||||||||||
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
81
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Alternative Income Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012(1) | 2011(1) | 2010(1) | ||||||||||||||||
PER SHARE DATA:(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 87.73 | $ | 83.38 | $ | 77.76 | $ | 83.52 | $ | 88.18 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(3) | (0.34 | ) | (0.43 | ) | 1.31 | 0.82 | 0.50 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 1.30 | 4.77 | 6.09 | (5.13 | ) | (4.70 | ) | |||||||||||||
| Total from investment operations | 0.96 | 4.34 | 7.40 | (4.31 | ) | (4.20 | ) | |||||||||||||
| Redemption Fees | 0.00 | (4) | 0.01 | 0.00 | (4) | 0.01 | 0.01 | |||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | (1.78 | ) | (1.46 | ) | (0.47 | ) | ||||||||||||
| Total distributions | — | — | (1.78 | ) | (1.46 | ) | (0.47 | ) | ||||||||||||
| Net Asset Value, End of Year | $ | 88.69 | $ | 87.73 | $ | 83.38 | $ | 77.76 | $ | 83.52 | ||||||||||
Total return(5) | 1.24 | % | 4.91 | % | 9.61 | % | (5.08 | )% | (4.80 | )% | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 1,554 | $ | 2,898 | $ | 2,597 | $ | 4,559 | $ | 10,100 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.05 | % | 2.48 | % | 2.80 | % | 2.54 | % | 2.42 | % | ||||||||||
After expense reimbursement(6) | 1.20 | % | 1.20 | % | 1.89 | % | 1.89 | % | 1.89 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.24 | )% | (1.77 | )% | 0.68 | % | 0.34 | % | 0.08 | % | ||||||||||
After expense reimbursement(6) | (0.39 | )% | (0.49 | )% | 1.59 | % | 0.99 | % | 0.61 | % | ||||||||||
Portfolio turnover rate(7) | 17 | % | 19 | % | 56 | % | 69 | % | 111 | % | ||||||||||
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
82
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Alternative Income Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012(1) | 2011(1) | 2010(1) | ||||||||||||||||
PER SHARE DATA:(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 86.10 | $ | 82.26 | $ | 76.75 | $ | 82.53 | $ | 87.12 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(3) | (0.77 | ) | (0.84 | ) | 0.89 | 0.40 | 0.09 | |||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 1.27 | 4.68 | 6.00 | (5.03 | ) | (4.57 | ) | |||||||||||||
| Total from investment operations | 0.50 | 3.84 | 6.89 | (4.63 | ) | (4.48 | ) | |||||||||||||
| Redemption Fees | — | — | 0.00 | (4) | 0.01 | 0.00 | (4) | |||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | (1.38 | ) | (1.16 | ) | (0.11 | ) | ||||||||||||
| Total distributions | — | — | (1.38 | ) | (1.16 | ) | (0.11 | ) | ||||||||||||
| Net Asset Value, End of Year | $ | 86.60 | $ | 86.10 | $ | 82.26 | $ | 76.75 | $ | 82.53 | ||||||||||
| Total return | 0.74 | % | 4.46 | % | 8.96 | % | (5.51 | )% | (5.15 | )% | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 1,506 | $ | 1,862 | $ | 1,763 | $ | 2,316 | $ | 2,840 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.55 | % | 2.98 | % | 3.30 | % | 3.04 | % | 2.92 | % | ||||||||||
After expense reimbursement(5) | 1.70 | % | 1.70 | % | 2.39 | % | 2.39 | % | 2.39 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.74 | )% | (2.27 | )% | 0.18 | % | (0.16 | )% | (0.42 | )% | ||||||||||
After expense reimbursement(5) | (0.89 | )% | (0.99 | )% | 1.09 | % | 0.49 | % | 0.11 | % | ||||||||||
Portfolio turnover rate(6) | 17 | % | 19 | % | 56 | % | 69 | % | 111 | % | ||||||||||
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
83
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Alternative Income Fund | ||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012(1) | 2011(1) | 2010(1) | ||||||||||||||||
PER SHARE DATA:(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 88.76 | $ | 84.00 | $ | 78.49 | $ | 84.22 | $ | 88.97 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(3) | 0.06 | (0.04 | ) | 1.72 | 1.21 | 0.88 | ||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | 1.32 | 4.80 | 6.16 | (5.13 | ) | (4.74 | ) | |||||||||||||
| Total from investment operations | 1.38 | 4.76 | 7.88 | �� | (3.92 | ) | (3.86 | ) | ||||||||||||
| Redemption Fees | 0.00 | (4) | — | 0.01 | 0.17 | 0.01 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | (2.38 | ) | (1.98 | ) | (0.90 | ) | ||||||||||||
| Total distributions | — | — | (2.38 | ) | (1.98 | ) | (0.90 | ) | ||||||||||||
| Net Asset Value, End of Year | $ | 90.14 | $ | 88.76 | $ | 84.00 | $ | 78.49 | $ | 84.22 | ||||||||||
| Total return | 1.72 | % | 5.39 | % | 10.17 | % | (4.43 | )% | (4.38 | )% | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 26,874 | $ | 6,854 | $ | 1,629 | $ | 798 | $ | 4,182 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.75 | % | 2.18 | % | 2.50 | % | 2.24 | % | 2.12 | % | ||||||||||
After expense reimbursement(5) | 0.75 | % | 0.75 | % | 1.44 | % | 1.44 | % | 1.44 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.94 | )% | (1.47 | )% | 0.98 | % | 0.64 | % | 0.38 | % | ||||||||||
After expense reimbursement(5). | 0.06 | % | (0.04 | )% | 2.04 | % | 1.44 | % | 1.06 | % | ||||||||||
Portfolio turnover rate(6) | 17 | % | 19 | % | 56 | % | 69 | % | 111 | % | ||||||||||
| (1) | Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013. |
| (2) | Information presented relates to a share of capital stock outstanding for each period. |
| (3) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (4) | Amount calculated is less than $0.005. |
| (5) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | Portfolio turnover of The Alternative Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
84
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Multi-Disciplinary Income Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 11.02 | $ | 11.08 | $ | 10.09 | $ | 10.47 | $ | 9.86 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income(2) | 0.33 | 0.20 | 0.34 | 0.83 | 0.35 | |||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.06 | ) | 0.28 | 1.20 | (0.80 | ) | 0.91 | |||||||||||||
| Total from investment operations | 0.27 | 0.48 | 1.54 | 0.03 | 1.26 | |||||||||||||||
Redemption Fees(3) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | (0.29 | ) | (0.28 | ) | (0.43 | ) | (0.36 | ) | (0.35 | ) | ||||||||||
| From net realized gains | (0.21 | ) | (0.26 | ) | (0.12 | ) | (0.05 | ) | (0.30 | ) | ||||||||||
| Total distributions | (0.50 | ) | (0.54 | ) | (0.55 | ) | (0.41 | ) | (0.65 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 10.79 | $ | 11.02 | $ | 11.08 | $ | 10.09 | $ | 10.47 | ||||||||||
| Total return | 2.46 | % | 4.28 | % | 15.38 | % | 0.24 | % | 13.04 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 10,105 | $ | 19,553 | $ | 19,566 | $ | 13,389 | $ | 3,489 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.79 | % | 1.83 | %(4) | 2.00 | % | 2.38 | % | 6.11 | % | ||||||||||
After expense reimbursement(5) | 1.49 | % | 1.50 | %(4) | 1.49 | % | 1.49 | % | 1.49 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.63 | % | 1.41 | %(6) | 2.65 | % | 7.09 | % | (1.19 | )% | ||||||||||
After expense reimbursement(5) | 2.93 | % | 1.74 | %(6) | 3.16 | % | 7.98 | % | 3.43 | % | ||||||||||
Portfolio turnover rate(7) | 35 | % | 54 | % | 41 | % | 74 | % | 38 | % | ||||||||||
| (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 ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 1.82% before expense reimbursement and 1.49% after expense reimbursement. |
| (5) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | The ratio of net investment income includes borrowing expense on securities sold short. |
| (7) | Portfolio turnover of The Multi-Disciplinary Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
85
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Multi-Disciplinary Income Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 10.98 | $ | 11.03 | $ | 10.05 | $ | 10.44 | $ | 9.85 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income(2) | 0.30 | 0.17 | 0.31 | 0.78 | 0.33 | |||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.06 | ) | 0.29 | 1.20 | (0.78 | ) | 0.89 | |||||||||||||
| Total from investment operations | 0.24 | 0.46 | 1.51 | — | 1.22 | |||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | — | — | ||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | (0.26 | ) | (0.25 | ) | (0.41 | ) | (0.34 | ) | (0.33 | ) | ||||||||||
| From net realized gains | (0.21 | ) | (0.26 | ) | (0.12 | ) | (0.05 | ) | (0.30 | ) | ||||||||||
| Total distributions | (0.47 | ) | (0.51 | ) | (0.53 | ) | (0.39 | ) | (0.63 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 10.75 | $ | 10.98 | $ | 11.03 | $ | 10.05 | $ | 10.44 | ||||||||||
Total return(4) | 2.17 | % | 4.15 | % | 15.12 | % | (0.01 | )% | 12.64 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 12,281 | $ | 36,170 | $ | 25,764 | $ | 4,726 | $ | 356 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.04 | % | 2.08 | %(5) | 2.25 | % | 2.63 | % | 6.36 | % | ||||||||||
After expense reimbursement(6) | 1.74 | % | 1.75 | %(5) | 1.74 | % | 1.74 | % | 1.74 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.38 | % | 1.16 | %(7) | 2.40 | % | 6.84 | % | (1.44 | )% | ||||||||||
After expense reimbursement(6) | 2.68 | % | 1.49 | %(7) | 2.91 | % | 7.73 | % | 3.18 | % | ||||||||||
Portfolio turnover rate(8) | 35 | % | 54 | % | 41 | % | 74 | % | 38 | % | ||||||||||
| (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) | The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 2.07% before expense reimbursement and 1.74% after expense reimbursement. |
| (6) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (7) | The ratio of net investment income includes borrowing expense on securities sold short. |
| (8) | Portfolio turnover of The Multi-Disciplinary Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
86
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Multi-Disciplinary Income Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 10.90 | $ | 10.96 | $ | 10.00 | $ | 10.40 | $ | 9.80 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income(2) | 0.24 | 0.11 | 0.26 | 0.74 | 0.27 | |||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.06 | ) | 0.29 | 1.18 | (0.78 | ) | 0.90 | |||||||||||||
| Total from investment operations | 0.18 | 0.40 | 1.44 | (0.04 | ) | 1.17 | ||||||||||||||
| Redemption Fees | 0.00 | (3) | — | — | — | — | ||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | (0.22 | ) | (0.20 | ) | (0.36 | ) | (0.31 | ) | (0.27 | ) | ||||||||||
| From net realized gains | (0.21 | ) | (0.26 | ) | (0.12 | ) | (0.05 | ) | (0.30 | ) | ||||||||||
| Total distributions | (0.43 | ) | (0.46 | ) | (0.48 | ) | (0.36 | ) | (0.57 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 10.65 | $ | 10.90 | $ | 10.96 | $ | 10.00 | $ | 10.40 | ||||||||||
| Total return | 1.61 | % | 3.59 | % | 14.48 | % | (0.49 | )% | 12.13 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 10,403 | $ | 11,209 | $ | 7,485 | $ | 1,645 | $ | 128 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.54 | % | 2.58 | %(4) | 2.75 | % | 3.13 | % | 6.86 | % | ||||||||||
After expense reimbursement(5) | 2.24 | % | 2.25 | %(4) | 2.24 | % | 2.24 | % | 2.24 | % | ||||||||||
| Ratio of net investment income (loss) | ||||||||||||||||||||
| to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.88 | % | 0.66 | %(6) | 1.90 | % | 6.34 | % | (1.94 | )% | ||||||||||
After expense reimbursement(5) | 2.18 | % | 0.99 | %(6) | 2.41 | % | 7.23 | % | 2.68 | % | ||||||||||
Portfolio turnover rate(7) | 35 | % | 54 | % | 41 | % | 74 | % | 38 | % | ||||||||||
| (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 ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 2.57% before expense reimbursement and 2.24% after expense reimbursement. |
| (5) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (6) | The ratio of net investment income includes borrowing expense on securities sold short. |
| (7) | Portfolio turnover of The Multi-Disciplinary Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
87
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS Financial Highlights — (Continued) |
| The Multi-Disciplinary Income Fund | ||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||
| For the | For the | For the | For the | For the | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Year | $ | 11.06 | $ | 11.11 | $ | 10.12 | $ | 10.50 | $ | 9.89 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income(2) | 0.35 | 0.22 | 0.36 | 0.85 | 0.37 | |||||||||||||||
| Net realized and unrealized gain | ||||||||||||||||||||
| (loss) on investments | (0.06 | ) | 0.29 | 1.20 | (0.80 | ) | 0.91 | |||||||||||||
| Total from investment operations | 0.29 | 0.51 | 1.56 | 0.05 | 1.28 | |||||||||||||||
| Redemption Fees | — | — | — | — | — | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | (0.32 | ) | (0.30 | ) | (0.45 | ) | (0.38 | ) | (0.37 | ) | ||||||||||
| From net realized gains | (0.21 | ) | (0.26 | ) | (0.12 | ) | (0.05 | ) | (0.30 | ) | ||||||||||
| Total distributions | (0.53 | ) | (0.56 | ) | (0.57 | ) | (0.43 | ) | (0.67 | ) | ||||||||||
| Net Asset Value, End of Year | $ | 10.82 | $ | 11.06 | $ | 11.11 | $ | 10.12 | $ | 10.50 | ||||||||||
| Total return | 2.61 | % | 4.58 | % | 15.55 | % | 0.42 | % | 13.19 | % | ||||||||||
| SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 102,590 | $ | 23,227 | $ | 6,576 | $ | 3,878 | $ | 142 | ||||||||||
| Ratio of operating expenses to average | ||||||||||||||||||||
| net assets: | ||||||||||||||||||||
| Before expense reimbursement | 1.74 | % | 1.78 | %(3) | 1.95 | % | 2.33 | % | 6.06 | % | ||||||||||
After expense reimbursement(4) | 1.29 | % | 1.30 | %(3) | 1.29 | % | 1.29 | % | 1.29 | % | ||||||||||
| Ratio of net investment income | ||||||||||||||||||||
| (loss) to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.68 | % | 1.46 | %(5) | 2.70 | % | 7.14 | % | (1.14 | )% | ||||||||||
After expense reimbursement(4) | 3.13 | % | 1.94 | %(5) | 3.36 | % | 8.18 | % | 3.63 | % | ||||||||||
Portfolio turnover rate(6) | 35 | % | 54 | % | 41 | % | 74 | % | 38 | % | ||||||||||
| (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) | The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 1.77% before expense reimbursement and 1.29% after expense reimbursement. |
| (4) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (5) | The ratio of net investment income includes borrowing expense on securities sold short. |
| (6) | Portfolio turnover of The Multi-Disciplinary Income Portfolio. |
The accompanying notes are an integral part of these financial statements.
88
KINETICS MUTUAL FUNDS, INC. Report of Independent Registered Public Accounting Firm |
Board of Directors and Shareholders of
Kinetics Mutual Funds, Inc.
Elmsford, NY
We have audited the accompanying statements of assets and liabilities of The Internet Fund, The Global Fund, The Paradigm Fund, The Medical Fund, The Small Cap Opportunities Fund, The Market Opportunities Fund, The Alternative Income Fund and The Multi-Disciplinary Income Fund, each a series of shares of Kinetics Mutual Funds, Inc. (the “Funds”), as of December 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform, nor were the Funds required to have, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly in all material respects, the financial position of each of the eight funds of the Kinetics Mutual Funds, Inc. as of December 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Philadelphia, Pennsylvania
February 27, 2015
89
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 |
The Internet Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Information | $ | 92,823,562 | 58.9 | % | |||
| Retail Trade | 17,856,851 | 11.3 | % | ||||
| Management of Companies and Enterprises | 15,344,508 | 9.8 | % | ||||
| Arts, Entertainment, and Recreation | 14,772,295 | 9.4 | % | ||||
| Finance and Insurance | 7,703,504 | 4.9 | % | ||||
| Manufacturing | 5,369,152 | 3.4 | % | ||||
| Real Estate and Rental and Leasing | 518,800 | 0.3 | % | ||||
| Administrative and Support and Waste Management and | |||||||
| Remediation Services | 269,578 | 0.2 | % | ||||
| Professional, Scientific, and Technical Services | 9,240 | 0.0 | % |
| * | Excludes Short-Term Investments |
90
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
| Percentage | |||||||
| Market | of Total | ||||||
| Country Allocation* | Value | Net Assets | |||||
| United States | $ | 4,801,288 | 54.1 | % | |||
| Canada | 2,079,109 | 23.4 | % | ||||
| France | 604,360 | 6.8 | % | ||||
| Cayman Islands | 534,180 | 6.0 | % | ||||
| Switzerland | 250,091 | 2.8 | % | ||||
| Spain | 129,555 | 1.5 | % | ||||
| Guernsey | 62,812 | 0.7 | % | ||||
| Singapore | 62,024 | 0.7 | % | ||||
| Brazil | 35,091 | 0.4 | % | ||||
| Japan | 31,097 | 0.4 | % | ||||
| Argentina | 18,011 | 0.2 | % | ||||
| Germany | 7,897 | 0.1 | % | ||||
| Sweden | 3,652 | 0.0 | % |
| * | Excludes Short-Term Investments |
91
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
The Paradigm Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Information | $ | 295,518,966 | 24.8 | % | |||
| Real Estate and Rental and Leasing | 172,906,688 | 14.5 | % | ||||
| Finance and Insurance | 150,713,701 | 12.6 | % | ||||
| Management of Companies and Enterprises | 135,477,888 | 11.4 | % | ||||
| Retail Trade | 106,476,765 | 8.9 | % | ||||
| Manufacturing | 81,895,203 | 6.9 | % | ||||
| Arts, Entertainment, and Recreation | 80,209,720 | 6.7 | % | ||||
| Petroleum and Gas | 57,876,640 | 4.9 | % | ||||
| Mining, Quarrying, and Oil and Gas Extraction | 42,345,286 | 3.6 | % | ||||
| Utilities | 2,760,489 | 0.2 | % | ||||
| Construction | 1,178,503 | 0.1 | % | ||||
| Accommodation and Food Services | 483,934 | 0.0 | % | ||||
| Transportation and Warehousing | 458,365 | 0.0 | % |
| * | Excludes Short-Term Investments |
92
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
The Medical Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Manufacturing | $ | 24,290,260 | 89.6 | % | |||
| Professional, Scientific, and Technical Services | 2,105,600 | 7.8 | % | ||||
| Finance and Insurance | 8,118 | 0.0 | % |
| * | Excludes Short-Term Investments |
93
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
The Small Cap Opportunities Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Manufacturing | $ | 98,281,905 | 27.8 | % | |||
| Real Estate and Rental and Leasing | 73,197,426 | 20.7 | % | ||||
| Finance and Insurance | 51,547,626 | 14.6 | % | ||||
| Management of Companies and Enterprises | 32,199,046 | 9.1 | % | ||||
| Petroleum and Gas | 25,193,000 | 7.1 | % | ||||
| Information | 22,229,008 | 6.3 | % | ||||
| Arts, Entertainment, and Recreation | 16,893,170 | 4.8 | % | ||||
| Retail Trade | 16,680,223 | 4.7 | % | ||||
| Mining, Quarrying, and Oil and Gas Extraction | 6,705,154 | 1.9 | % | ||||
| Accommodation and Food Services | 4,323,710 | 1.2 | % | ||||
| Wholesale Trade | 926,784 | 0.3 | % | ||||
| Transportation Equipment | 900,386 | 0.3 | % |
| * | Excludes Short-Term Investments |
94
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
The Market Opportunities Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Finance and Insurance | $ | 26,767,254 | 49.3 | % | |||
| Management of Companies and Enterprises | 6,651,041 | 12.2 | % | ||||
| Real Estate and Rental and Leasing | 5,967,048 | 11.0 | % | ||||
| Petroleum and Gas | 3,551,800 | 6.5 | % | ||||
| Retail Trade | 2,245,033 | 4.1 | % | ||||
| Accommodation and Food Services | 1,321,040 | 2.4 | % | ||||
| Information | 855,239 | 1.6 | % | ||||
| Mining, Quarrying, and Oil and Gas Extraction | 255,788 | 0.5 | % | ||||
| Arts, Entertainment, and Recreation | 174,480 | 0.3 | % | ||||
| Manufacturing | 111,520 | 0.2 | % | ||||
| Wholesale Trade | 15,952 | 0.1 | % | ||||
| Support Activities for Water Transportation | 8,607 | 0.0 | % | ||||
| Administrative and Support and Waste Management and | |||||||
| Remediation Services | 5,286 | 0.0 | % |
| * | Excludes Short-Term Investments |
95
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
The Alternative Income Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Finance and Insurance | $ | 15,246,893 | 39.9 | % | |||
| Manufacturing | 8,798,601 | 23.0 | % | ||||
| Information | 2,364,811 | 6.2 | % | ||||
| Retail Trade | 2,270,031 | 5.9 | % | ||||
| Public Administration | 2,098,391 | 5.5 | % | ||||
| Mining, Quarrying, and Oil and Gas Extraction | 1,386,459 | 3.6 | % | ||||
| Utilities | 709,463 | 1.9 | % | ||||
| Wholesale Trade | 698,214 | 1.8 | % | ||||
| Professional, Scientific, and Technical Services | 534,080 | 1.4 | % | ||||
| Administrative and Support and Waste Management and | |||||||
| Remediation Services | 492,993 | 1.3 | % | ||||
| Transportation and Warehousing | 409,921 | 1.1 | % | ||||
| Accommodations and Food Services | 399,061 | 1.0 | % |
| * | Excludes Short-Term Investments & Written Options |
96
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS Allocation of Portfolio Assets December 31, 2014 — (Continued) |
The Multi-Disciplinary Income Portfolio
| Percentage | |||||||
| Market | of Total | ||||||
| Sector Allocation* | Value | Net Assets | |||||
| Information | $ | 27,413,222 | 20.3 | % | |||
| Finance and Insurance | 21,076,092 | 15.6 | % | ||||
| Manufacturing | 15,917,981 | 11.7 | % | ||||
| Mining, Quarrying, and Oil and Gas Extraction | 14,576,506 | 10.7 | % | ||||
| Real Estate and Rental and Leasing | 13,610,545 | 10.0 | % | ||||
| Administrative and Support and Waste Management and | |||||||
| Remediation Services | 9,495,138 | 7.0 | % | ||||
| Retail Trade | 6,734,875 | 5.0 | % | ||||
| Accommodation and Food Services | 4,641,080 | 3.4 | % | ||||
| Construction | 4,587,400 | 3.4 | % | ||||
| Health Care and Social Assistance | 850,000 | 0.6 | % | ||||
| Transportation and Warehousing | 615,625 | 0.5 | % | ||||
| Professional, Scientific, and Technical Services | 501,250 | 0.4 | % | ||||
| Utilities | 415,822 | 0.3 | % | ||||
| Wholesale Trade | 287,500 | 0.2 | % |
| * | Excludes Short-Term Investments & Written Options |
97
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Internet Portfolio Portfolio of Investments — December 31, 2014 |
| Identifier | COMMON STOCKS — 97.97% | Shares | Value | |||||
| Administrative and Support Services — 0.17% | ||||||||
| CRMZ | CreditRiskMonitor.com, Inc. | 600 | $ | 1,500 | ||||
| CTRP | Ctrip.com International Limited — ADR* | 5,800 | 263,900 | |||||
| IILG | Interval Leisure Group, Inc. | 200 | 4,178 | |||||
| 269,578 | ||||||||
| Broadcasting (except Internet) — 3.79% | ||||||||
| CBS | CBS Corporation — Class B | 20,000 | 1,106,800 | |||||
| SSP | The E.W. Scripps Company — Class A* | 77,500 | 1,732,125 | |||||
| DIS | The Walt Disney Company | 33,300 | 3,136,527 | |||||
| 5,975,452 | ||||||||
| Cable Distributor — 7.12% | ||||||||
| LBRDA | Liberty Broadband Corporation — Series A* | 29,500 | 1,477,655 | |||||
| LBRDK | Liberty Broadband Corporation — Series C*^ | 56,000 | 2,789,920 | |||||
| LBTYK | Liberty Global plc — Series C* | 144,000 | 6,956,640 | |||||
| 11,224,215 | ||||||||
| Computer and Electronic Product Manufacturing — 0.33% | ||||||||
| QCOM | QUALCOMM Inc. | 7,000 | 520,310 | |||||
| Credit Intermediation and Related Activities — 0.30% | ||||||||
| TREE | LendingTree, Inc.*^ | 9,833 | 475,327 | |||||
| Data Processing, Hosting and Related Services — 0.23% | ||||||||
| CSGP | CoStar Group, Inc.* | 2,000 | 367,260 | |||||
| Data Processor — 3.62% | ||||||||
| MA | MasterCard, Inc. — Class A | 30,000 | 2,584,800 | |||||
| VRSK | Verisk Analytics, Inc. — Class A* | 7,700 | 493,185 | |||||
| V | Visa, Inc. — Class A | 10,000 | 2,622,000 | |||||
| 5,699,985 | ||||||||
| Defense — 2.62% | ||||||||
| CACI | CACI International, Inc. — Class A* | 36,000 | 3,102,480 | |||||
| MANT | ManTech International Corporation — Class A | 34,000 | 1,027,820 | |||||
| 4,130,300 |
The accompanying notes are an integral part of these financial statements.
98
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Internet Portfolio Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | ||||||
| E-Commerce — 12.07% | ||||||||
| EBAY | eBay, Inc.* | 72,000 | $ | 4,040,640 | ||||
| IACI | IAC/InterActiveCorp | 72,000 | 4,376,880 | |||||
| QVCA | Liberty Interactive Corporation — Class A* | 360,000 | 10,591,200 | |||||
| 19,008,720 | ||||||||
| Gaming — 1.29% | ||||||||
| 200 HK | Melco International Development Limited | 920,000 | 2,028,718 | |||||
| Global Exchanges — 0.13% | ||||||||
| JSE SJ | JSE Limited | 20,000 | 209,202 | |||||
| Holding Company — 2.21% | ||||||||
| GBLS BB | Groupe Bruxelles Lambert S.A. Strip VVPR*+ | 2,000 | — | |||||
| IEP | Icahn Enterprises LP | 37,689 | 3,485,102 | |||||
| 3,485,102 | ||||||||
| Media — 30.16% | ||||||||
| DISCA | Discovery Communications, Inc. — Class A* | 101,700 | 3,503,565 | |||||
| DISCK | Discovery Communications, Inc. — Class C* | 101,700 | 3,429,324 | |||||
| LMCA | Liberty Media Corporation — Class A* | 118,000 | 4,161,860 | |||||
| LMCK | Liberty Media Corporation — Class C* | 208,000 | 7,286,240 | |||||
| LTRPA | Liberty TripAdvisor Holdings Inc. — Series A* | 110,000 | 2,959,000 | |||||
| LVNTA | Liberty Ventures — Series A* | 165,977 | 6,260,653 | |||||
| SNI | Scripps Networks Interactive — Class A | 77,000 | 5,795,790 | |||||
| STRZA | Starz — Class A* | 128,700 | 3,822,390 | |||||
| TWX | Time Warner, Inc. | 76,600 | 6,543,172 | |||||
| VIAB | Viacom Inc. — Class B | 50,000 | 3,762,500 | |||||
| 47,524,494 | ||||||||
| Motion Picture and Sound Recording Industries — 2.19% | ||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*^ | 154,200 | 3,443,286 | |||||
| Motor Vehicle and Parts Dealers — 0.66% | ||||||||
| AN | AutoNation, Inc.* | 17,200 | 1,039,052 | |||||
| Non-Store Retailers — 1.36% | ||||||||
| CPRT | Copart, Inc.* | 38,860 | 1,418,002 | |||||
| LE | Lands’ End, Inc.* | 120 | 6,475 | |||||
| OSTK | Overstock.com, Inc.* | 1,000 | 24,270 | |||||
| BID | Sotheby’s | 16,000 | 690,880 | |||||
| 2,139,627 |
��
The accompanying notes are an integral part of these financial statements.
99
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS The Internet Portfolio Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | ||||||
| Other Exchanges — 0.05% | ||||||||
| CBOE | CBOE Holdings Inc. | 1,200 | $ | 76,104 | ||||
| Other Information Services — 7.97% | ||||||||
| GOOGL | Google Inc. — Class A* | 8,600 | 4,563,676 | |||||
| GOOG | Google Inc. — Class C* | 10,000 | 5,264,000 | |||||
| YHOO | Yahoo! Inc.* | 54,000 | 2,727,540 | |||||
| 12,555,216 | ||||||||
| Performing Arts, Spectator Sports, and Related Industries — 6.10% | ||||||||
| LYV | Live Nation Entertainment, Inc.* | 195,000 | 5,091,450 | |||||
| MSG | The Madison Square Garden Company — Class A* | 60,000 | 4,515,600 | |||||
| 9,607,050 | ||||||||
| Professional, Scientific, and Technical Services — 0.01% | ||||||||
| MWW | Monster Worldwide, Inc.* | 2,000 | 9,240 | |||||
| Rental and Leasing Services — 0.23% | ||||||||
| CDCO | Comdisco Holding Company, Inc.* | 56,000 | 364,000 | |||||
| Satellite Telecommunications — 14.55% | ||||||||
| DISH | DISH Network Corp. — Class A* | 142,000 | 10,350,380 | |||||
| SATS | EchoStar Corporation — Class A* | 213,000 | 11,182,500 | |||||
| LORL | Loral Space & Communications Inc.* | 8,600 | 676,906 | |||||
| VSAT | ViaSat, Inc.* | 11,400 | 718,542 | |||||
| 22,928,328 | ||||||||
| Securities, Commodity Contracts, and Other Financial Investments | ||||||||
| and Related Activities — 0.79% | ||||||||
| ICE | IntercontinentalExchange Group, Inc. | 1,800 | 394,722 | |||||
| MKTX | MarketAxess Holdings, Inc. | 5,700 | 408,747 | |||||
| OTCM | OTC Markets Group Inc. — Class A | 30,600 | 439,416 | |||||
| 1,242,885 | ||||||||
| Telecommunications — 0.02% | ||||||||
| ICTG | ICTC Group Inc.* | 149 | 2,712 | |||||
| 9984 JP | SoftBank Corp. | 400 | 24,077 | |||||
| 26,789 | ||||||||
| TOTAL COMMON STOCKS | ||||||||
| (cost $73,106,614) | 154,350,240 |
The accompanying notes are an integral part of these financial statements.
100
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | ESCROW NOTES — 0.00% | Amount | Value | ||||||
| Special Purpose Entity — 0.00% | |||||||||
| 006ESC958 | Adelphia Communications Corp. Preferred*+ | $ | 190,000 | $ | — | ||||
| TOTAL ESCROW NOTES | |||||||||
| (cost $0) | — | ||||||||
| RIGHTS — 0.20% | Shares | ||||||||
| Cable Distributor — 0.10% | |||||||||
| LBRKR | Liberty Broadband Corporation* | 17,100 | 162,450 | ||||||
| Rental and Leasing Services — 0.10% | |||||||||
| CDCOR | Comdisco Holding Company, Inc.*^# | 1,800,000 | 154,800 | ||||||
| TOTAL RIGHTS | |||||||||
| (cost $173,622) | 317,250 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 2.00% | Amount | ||||||||
| Commercial Paper — 2.00% | |||||||||
| 049221655 | U.S. Bank N.A., 0.02%, 01/02/2015 | $ | 3,141,000 | 3,141,000 | |||||
| Shares | |||||||||
| Money Market Funds — 0.00% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — Class I, 0.01%b | 469 | 469 | ||||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $3,141,469) | 3,141,469 | ||||||||
| INVESTMENTS PURCHASED WITH | |||||||||
| THE CASH PROCEEDS FROM | |||||||||
| SECURITIES LENDING — 2.78% | |||||||||
| Money Market Funds — 2.78% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 4,380,634 | 4,380,634 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH | |||||||||
| PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $4,380,634) | 4,380,634 | ||||||||
| TOTAL INVESTMENTS — 102.95% | |||||||||
| (cost $80,802,339) | $ | 162,189,593 |
The accompanying notes are an integral part of these financial statements.
101
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Internet Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $4,163,840 at December 31, 2014. | |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. | |
| # — | Contingent value right (contingent upon profitability of company). | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
| ADR — American Depository Receipt. | ||
The accompanying notes are an integral part of these financial statements.
102
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | COMMON STOCKS — 95.50% | Shares | Value | ||||||
| Apparel Manufacturing — 1.80% | |||||||||
| MC FP | LVMH Moet Hennessy Louis Vuitton SA | 1,000 | $ | 160,029 | |||||
| Asset Management — 7.65% | |||||||||
| APO | Apollo Global Management LLC — Class A | 300 | 7,074 | ||||||
| BAM | Brookfield Asset Management Inc. — Class A | 4,000 | 200,520 | ||||||
| JZCP LN | JZ Capital Partners Limited | 10,000 | 62,812 | ||||||
| ONEXF | Onex Corporation | 7,000 | 408,498 | ||||||
| 678,904 | |||||||||
| Beverage and Tobacco Product Manufacturing — 0.14% | |||||||||
| CWGL | Crimson Wine Group Limited*^ | 1,350 | 12,825 | ||||||
| Cable Distributor — 1.66% | |||||||||
| ATC NA | Altice SA* | 100 | 7,897 | ||||||
| LBRDA | Liberty Broadband Corporation — Series A* | 900 | 45,081 | ||||||
| LBRDK | Liberty Broadband Corporation — Series C* | 1,800 | 89,676 | ||||||
| NUM FP | Numericable Group SA* | 100 | 4,954 | ||||||
| 147,608 | |||||||||
| Chemical Manufacturing — 1.31% | |||||||||
| PAH | Platform Specialty Products Corporation* | 5,000 | 116,100 | ||||||
| Construction of Buildings — 2.84% | |||||||||
| BRP | Brookfield Residential Properties Inc.* | 10,100 | 243,006 | ||||||
| LEN | Lennar Corporation — Class A | 200 | 8,962 | ||||||
| 251,968 | |||||||||
| Credit Intermediation and Related Activities — 0.03% | |||||||||
| IFT | Imperial Holdings, Inc.* | 400 | 2,608 | ||||||
| Crop Production — 0.20% | |||||||||
| CRESY | Cresud S.A.C.I.F.y A. — ADR* | 1,785 | 18,011 | ||||||
| E-Commerce — 4.97% | |||||||||
| QVCA | Liberty Interactive Corporation — Class A* | 15,000 | 441,300 | ||||||
| Electronics and Appliance Stores — 0.36% | |||||||||
| SHOS | Sears Hometown and Outlet Stores Inc.* | 2,400 | 31,560 | ||||||
| European Exchanges — 1.37% | |||||||||
| BME SM | Bolsas y Mercados Espanoles | 3,130 | 121,729 | ||||||
| Gaming — 1.67% | |||||||||
| WYNN | Wynn Resorts Limited | 1,000 | 148,760 |
The accompanying notes are an integral part of these financial statements.
103
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| General Merchandise Stores — 3.09% | |||||||||
| SRSC | Sears Canada Inc.*^ | 6,600 | $ | 63,426 | |||||
| SHLD | Sears Holdings Corporation*^ | 6,400 | 211,072 | ||||||
| 274,498 | |||||||||
| Global Exchanges — 0.39% | |||||||||
| BVMF3 BZ | BM&FBOVESPA SA | 9,470 | 35,091 | ||||||
| Holding Company — 16.05% | |||||||||
| BOL FP | Bollore | 92,500 | 421,976 | ||||||
| CKI CN | Clarke Inc. | 2,000 | 17,215 | ||||||
| DDEJF | Dundee Corporation — Class A* | 36,000 | 395,784 | ||||||
| IEP | Icahn Enterprises LP | 5,994 | 554,265 | ||||||
| INVEB SS | Investor AB — B Shares | 100 | 3,652 | ||||||
| PVF CN | Partners Value Fund Inc.* | 1,200 | 32,278 | ||||||
| 1,425,170 | |||||||||
| Insurance Carriers and Related Activities — 0.76% | |||||||||
| AFSI | AmTrust Financial Services, Inc.^ | 500 | 28,125 | ||||||
| GLRE | Greenlight Capital Re, Limited — Class A* | 1,200 | 39,180 | ||||||
| 67,305 | |||||||||
| Jewelry, Watch, Precious Stone, and Precious Metal | |||||||||
| Merchant Wholesalers — 2.82% | |||||||||
| CFR VX | Compagnie Financiere Richemont SA | 2,800 | 250,090 | ||||||
| Lessors of Nonresidential Buildings (except Miniwarehouses) — 5.87% | |||||||||
| HHC | The Howard Hughes Corporation* | 4,000 | 521,680 | ||||||
| Media — 11.25% | |||||||||
| DISCA | Discovery Communications, Inc. — Class A* | 1,200 | 41,340 | ||||||
| DISCK | Discovery Communications, Inc. — Class C* | 1,200 | 40,464 | ||||||
| LMCA | Liberty Media Corporation — Class A* | 3,600 | 126,972 | ||||||
| LMCK | Liberty Media Corporation — Class C* | 7,200 | 252,216 | ||||||
| LTRPA | Liberty TripAdvisor Holdings Inc. — Series A* | 5,200 | 139,880 | ||||||
| LVNTA | Liberty Ventures — Series A* | 7,332 | 276,563 | ||||||
| STRZA | Starz — Class A* | 4,094 | 121,592 | ||||||
| 999,027 |
The accompanying notes are an integral part of these financial statements.
104
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Mining (except Oil and Gas) — 0.83% | |||||||||
| FNV | Franco-Nevada Corporation | 1,000 | $ | 49,190 | |||||
| NCQ | NovaCopper Inc.* | 666 | 326 | ||||||
| NG | NovaGold Resources Inc.*^ | 4,000 | 11,800 | ||||||
| SAND | Sandstorm Gold Limited* | 3,600 | 12,240 | ||||||
| 73,556 | |||||||||
| Motion Picture and Sound Recording Industries — 2.01% | |||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*^ | 8,000 | 178,640 | ||||||
| Oil and Gas — 3.59% | |||||||||
| TPL | Texas Pacific Land Trust | 2,700 | 318,600 | ||||||
| Oil and Gas Extraction — 7.62% | |||||||||
| CLR | Continental Resources, Inc.* | 2,100 | 80,556 | ||||||
| POU CN | Paramount Resources Limited — Class A* | 1,410 | 34,127 | ||||||
| SEMUF | Siem Industries Inc.* | 6,600 | 495,000 | ||||||
| TOU CN | Tourmaline Oil Corp.* | 2,000 | 66,621 | ||||||
| 676,304 | |||||||||
| Oil Refining — 0.75% | |||||||||
| PARR | Par Petroleum Corporation* | 4,114 | 66,853 | ||||||
| Other Information Services — 0.01% | |||||||||
| IIJI | Internet Initiative Japan Inc. — ADR | 100 | 1,000 | ||||||
| Publishing Industries (except Internet) — 0.09% | |||||||||
| PRISY | Promotora de Informaciones S.A. — ADR* | 1,803 | 2,110 | ||||||
| PRS SM | Promotora de Informaciones S.A. — Class A* | 18,310 | 5,716 | ||||||
| 7,826 | |||||||||
| Real Estate — 6.30% | |||||||||
| BPY | Brookfield Property Partners LP^ | 281 | 6,426 | ||||||
| BRE CN | Brookfield Real Estate Services, Inc. | 5,050 | 56,333 | ||||||
| CIT SP | City Developments Limited | 8,000 | 62,024 | ||||||
| DRM CN | Dream Unlimited Corp. — Class A* | 48,800 | 407,017 | ||||||
| TPH | TRI Pointe Homes, Inc.* | 1,800 | 27,450 | ||||||
| 559,250 | |||||||||
| Restaurants — 5.88% | |||||||||
| QSP-U CN | Restaurant Brands International LP* | 18 | 679 | ||||||
| QSR | Restaurant Brands International, Inc.*^ | 1,782 | 69,569 | ||||||
| WEN | The Wendy’s Company | 50,000 | 451,500 | ||||||
| 521,748 |
The accompanying notes are an integral part of these financial statements.
105
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Satellite Telecommunications — 3.37% | |||||||||
| DISH | DISH Network Corp. — Class A* | 1,800 | $ | 131,202 | |||||
| SATS | EchoStar Corporation — Class A* | 3,200 | 168,000 | ||||||
| 299,202 | |||||||||
| Securities, Commodity Contracts, and Other Financial | |||||||||
| Investments and Related Activities — 0.12% | |||||||||
| FRFHF | Fairfax Financial Holdings Limited | 20 | 10,480 | ||||||
| Telecommunications — 0.34% | |||||||||
| 9984 JP | SoftBank Corp. | 500 | 30,097 | ||||||
| Transportation Equipment Manufacturing — 0.36% | |||||||||
| HEI/A | HEICO Corporation — Class A | 675 | 31,968 | ||||||
| TOTAL COMMON STOCKS | |||||||||
| (cost $7,144,920) | 8,479,787 | ||||||||
| Principal | |||||||||
| CORPORATE BONDS — 0.41% | Amount | ||||||||
| General Merchandise Stores — 0.41% | |||||||||
| Sears Holdings Corporation | |||||||||
| 812350AF3 | 8.000%, 12/15/2019 | $ 39,500 | 35,945 | ||||||
| TOTAL CORPORATE BONDS | |||||||||
| (cost $39,500) | 35,945 | ||||||||
| MUTUAL FUNDS — 0.59% | Shares | ||||||||
| Funds, Trusts, and Other Financial Vehicles — 0.59% | |||||||||
| TRF | Templeton Russia and East European Fund, Inc. | 5,800 | 52,200 | ||||||
| TOTAL MUTUAL FUNDS | |||||||||
| (cost $77,855) | 52,200 | ||||||||
| RIGHTS — 0.25% | |||||||||
| Apparel Manufacturing — 0.19% | |||||||||
| BTHH2D3 | LVMH Moet Hennessy Louis Vuitton SA* | 1,000 | 17,401 | ||||||
| Cable Distributor — 0.06% | |||||||||
| LBRKR | Liberty Broadband Corporation* | 540 | 5,130 | ||||||
| TOTAL RIGHTS | |||||||||
| (cost $15,727) | 22,531 |
The accompanying notes are an integral part of these financial statements.
106
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Global Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | WARRANTS — 0.32% | Shares | Value | ||||||
| General Merchandise Stores — 0.32% | |||||||||
| SHLDW | Sears Holdings Corporation*^ | 1,390 | $ | 28,704 | |||||
| TOTAL WARRANTS | |||||||||
| (cost $19,439) | 28,704 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 1.18% | Amount | ||||||||
| Commercial Paper — 1.18% | |||||||||
| 049221655 | U.S. Bank N.A., 0.02%, 01/02/2015 | $ | 105,000 | 105,000 | |||||
| Shares | |||||||||
| Money Market Funds — 0.00% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — Class I, 0.01%b | 26 | 26 | ||||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $105,026) | 105,026 | ||||||||
| INVESTMENTS PURCHASED WITH | |||||||||
| THE CASH PROCEEDS FROM | |||||||||
| SECURITIES LENDING — 6.79% | |||||||||
| Money Market Funds — 6.79% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 602,851 | 602,851 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH | |||||||||
| PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $602,851) | 602,851 | ||||||||
| TOTAL INVESTMENTS — 105.04% | |||||||||
| (cost $8,005,318) | $ | 9,327,044 |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $579,021 at December 31, 2014. | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
| ADR — American Depository Receipt. | ||
The accompanying notes are an integral part of these financial statements.
107
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | COMMON STOCKS — 94.19% | Shares | Value | ||||||
| Apparel Manufacturing — 0.20% | |||||||||
| LB | L Brands, Inc. | 25,600 | $ | 2,215,680 | |||||
| LVMUY | LVMH Moet Hennessy Louis Vuitton SA — ADR | 4,800 | 165,288 | ||||||
| 2,380,968 | |||||||||
| Asset Management — 6.87% | |||||||||
| APO | Apollo Global Management LLC — Class A | 1,000 | 23,580 | ||||||
| BAM | Brookfield Asset Management Inc. — Class A | 1,085,600 | 54,421,128 | ||||||
| JZCP LN | JZ Capital Partners Limited | 8,800 | 55,274 | ||||||
| OAK | Oaktree Capital Group LLC^ | 8,400 | 435,372 | ||||||
| ONEXF | Onex Corporation | 408,400 | 23,832,958 | ||||||
| RCP LN | RIT Capital Partners plc | 22,400 | 487,731 | ||||||
| 806 HK | Value Partners Group Limited | 2,747,000 | 2,309,639 | ||||||
| WETF | WisdomTree Investments, Inc.^ | 19,400 | 304,095 | ||||||
| 81,869,777 | |||||||||
| Beverage and Tobacco Product Manufacturing — 0.15% | |||||||||
| BF/A | Brown-Forman Corporation — Class A | 450 | 39,492 | ||||||
| ROX | Castle Brands, Inc.*^ | 72,000 | 116,640 | ||||||
| CWGL | Crimson Wine Group Limited*^ | 171,860 | 1,632,670 | ||||||
| 1,788,802 | |||||||||
| Broadcasting (except Internet) — 1.79% | |||||||||
| CBS | CBS Corporation — Class B | 381,400 | 21,106,676 | ||||||
| TRCO | Tribune Media Company — Class A* | 3,000 | 179,310 | ||||||
| 21,285,986 | |||||||||
| Cable Distributor — 1.96% | |||||||||
| LBRDA | Liberty Broadband Corporation — Series A* | 156,100 | 7,819,049 | ||||||
| LBRDK | Liberty Broadband Corporation — Series C*^ | 312,200 | 15,553,804 | ||||||
| 23,372,853 | |||||||||
| Chemical Manufacturing — 0.99% | |||||||||
| OPK | OPKO Health, Inc.*^ | 4,000 | 39,960 | ||||||
| PAH | Platform Specialty Products Corporation* | 148,900 | 3,457,458 | ||||||
| SIAL | Sigma-Aldrich Corporation | 60,000 | 8,236,200 | ||||||
| VHI | Valhi, Inc. | 2,400 | 15,384 | ||||||
| 11,749,002 | |||||||||
| Construction of Buildings — 0.16% | |||||||||
| BRP | Brookfield Residential Properties Inc.*^ | 28,600 | 688,116 | ||||||
| GRBK | Green Brick Partners, Inc.*^ | 3,600 | 29,520 | ||||||
| LEN | Lennar Corporation — Class A | 26,300 | 1,178,503 | ||||||
| 1,896,139 |
The accompanying notes are an integral part of these financial statements.
108
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Credit Intermediation and Related Activities — 0.01% | |||||||||
| IFT | Imperial Holdings, Inc.* | 9,200 | $ | 59,984 | |||||
| OCN | Ocwen Financial Corporation*^ | 200 | 3,020 | ||||||
| 63,004 | |||||||||
| E-Commerce — 3.16% | |||||||||
| IACI | IAC/InterActiveCorp | 15,800 | 960,482 | ||||||
| QVCA | Liberty Interactive Corporation — Class A* | 1,248,400 | 36,727,928 | ||||||
| 37,688,410 | |||||||||
| Electronics and Appliance Stores — 0.13% | |||||||||
| SHOS | Sears Hometown and Outlet Stores Inc.* | 118,700 | 1,560,905 | ||||||
| Gaming — 2.42% | |||||||||
| LVS | Las Vegas Sands Corp.^ | 210,000 | 12,213,600 | ||||||
| MGM | MGM Resorts International* | 237,600 | 5,079,888 | ||||||
| WYNN | Wynn Resorts Limited | 77,800 | 11,573,528 | ||||||
| 28,867,016 | |||||||||
| General Merchandise Stores — 1.64% | |||||||||
| SRSC | Sears Canada Inc.*^ | 493,400 | 4,741,574 | ||||||
| SHLD | Sears Holdings Corporation*^ | 448,980 | 14,807,360 | ||||||
| 19,548,934 | |||||||||
| Global Exchanges — 0.28% | |||||||||
| JSE SJ | JSE Limited | 316,000 | �� | 3,305,397 | |||||
| Holding Company — 9.27% | |||||||||
| BOL FP | Bollore | 640,000 | 2,919,616 | ||||||
| DDEJF | Dundee Corporation — Class A* | 186,100 | 2,045,983 | ||||||
| GBLS BB | Groupe Bruxelles Lambert S.A. Strip VVPR*+ | 23,520 | — | ||||||
| IEP | Icahn Enterprises LP | 965,618 | 89,290,697 | ||||||
| LUK | Leucadia National Corporation | 723,600 | 16,223,112 | ||||||
| PVF CN | Partners Value Fund Inc.* | 800 | 21,518 | ||||||
| 110,500,926 | |||||||||
| Insurance Carriers and Related Activities — 1.32% | |||||||||
| AFSI | AmTrust Financial Services, Inc.^ | 4,600 | 258,750 | ||||||
| MKL | Markel Corporation* | 22,732 | 15,522,319 | ||||||
| 15,781,069 | |||||||||
| Lessors of Nonresidential Buildings (except Miniwarehouses) — 10.99% | |||||||||
| HHC | The Howard Hughes Corporation* | 964,300 | 125,764,006 | ||||||
| RSE | Rouse Properties, Inc.^ | 286,400 | 5,304,128 | ||||||
| 131,068,134 |
The accompanying notes are an integral part of these financial statements.
109
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Lessors of Residential Buildings and Dwellings — 0.76% | |||||||||
| ELS | Equity Lifestyle Properties, Inc. — REIT | 176,000 | $ | 9,072,800 | |||||
| Machinery Manufacturing — 0.07% | |||||||||
| CFX | Colfax Corporation* | 17,300 | 892,161 | ||||||
| Manufactured Brands — 3.23% | |||||||||
| JAH | Jarden Corporation* | 804,000 | 38,495,520 | ||||||
| MOV | Movado Group, Inc.^ | 800 | 22,696 | ||||||
| 38,518,216 | |||||||||
| Media — 11.68% | |||||||||
| DISCA | Discovery Communications, Inc. — Class A* | 389,923 | 13,432,847 | ||||||
| DISCK | Discovery Communications, Inc. — Class C* | 389,923 | 13,148,204 | ||||||
| LMCA | Liberty Media Corporation — Class A* | 624,400 | 22,022,588 | ||||||
| LMCK | Liberty Media Corporation — Class C* | 1,156,800 | 40,522,704 | ||||||
| LTRPA | Liberty TripAdvisor Holdings Inc. — Series A* | 164,000 | 4,411,600 | ||||||
| LVNTA | Liberty Ventures — Series A* | 358,285 | 13,514,510 | ||||||
| SNI | Scripps Networks Interactive — Class A | 69,973 | 5,266,868 | ||||||
| STRZA | Starz — Class A* | 619,000 | 18,384,300 | ||||||
| VIAB | Viacom Inc. — Class B | 114,000 | 8,578,500 | ||||||
| 139,282,121 | |||||||||
| Mining (except Oil and Gas) — 1.19% | |||||||||
| FNV | Franco-Nevada Corporation | 286,800 | 14,107,692 | ||||||
| SAND | Sandstorm Gold Limited* | 9,000 | 30,600 | ||||||
| 14,138,292 | |||||||||
| Motion Picture and Sound Recording Industries — 3.13% | |||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*^ | 1,673,000 | 37,358,090 | ||||||
| Motor Vehicle and Parts Dealers — 4.76% | |||||||||
| AN | AutoNation, Inc.* | 940,000 | 56,785,400 | ||||||
| Non-Store Retailers — 0.63% | |||||||||
| LE | Lands’ End, Inc.*^ | 138,810 | 7,490,188 | ||||||
| Oil and Gas — 4.85% | |||||||||
| TPL | Texas Pacific Land Trustc | 490,480 | 57,876,640 | ||||||
| Oil Refining — 0.04% | |||||||||
| PARR | Par Petroleum Corporation* | 30,892 | 501,995 |
The accompanying notes are an integral part of these financial statements.
110
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Oil and Gas Extraction — 2.33% | |||||||||
| CNQ | Canadian Natural Resources Limited | 72,400 | $ | 2,235,712 | |||||
| CLR | Continental Resources, Inc.*^ | 221,400 | 8,492,904 | ||||||
| SEMUF | Siem Industries Inc.* | 29,700 | 2,227,500 | ||||||
| TOU CN | Tourmaline Oil Corp.* | 443,690 | 14,779,483 | ||||||
| 27,735,599 | |||||||||
| Other Exchanges — 3.98% | |||||||||
| CBOE | CBOE Holdings Inc. | 738,326 | 46,824,635 | ||||||
| URB/A CN | Urbana Corporation — Class A | 398,178 | 675,168 | ||||||
| 47,499,803 | |||||||||
| Other Information Services — 0.02% | |||||||||
| GOOGL | Google Inc. — Class A* | 30 | 15,920 | ||||||
| GOOG | Google Inc. — Class C* | 430 | 226,352 | ||||||
| 242,272 | |||||||||
| Performing Arts, Spectator Sports, and Related Industries — 4.31% | |||||||||
| LYV | Live Nation Entertainment, Inc.* | 1,966,400 | 51,342,704 | ||||||
| Real Estate — 2.69% | |||||||||
| BPY | Brookfield Property Partners LP^ | 73,064 | 1,670,974 | ||||||
| DRM CN | Dream Unlimited Corp. — Class A* | 297,100 | 2,477,964 | ||||||
| FCE/A | Forest City Enterprises, Inc. — Class A*^ | 996,400 | 21,223,320 | ||||||
| TPH | TRI Pointe Homes, Inc.* | 69,200 | 1,055,300 | ||||||
| VNO | Vornado Realty Trust — REIT | 48,000 | 5,650,080 | ||||||
| 32,077,638 | |||||||||
| Restaurants — 2.37% | |||||||||
| QSP-U CN | Restaurant Brands International LP*^ | 124 | 4,679 | ||||||
| QSR | Restaurant Brands International, Inc.*^ | 12,276 | 479,255 | ||||||
| WEN | The Wendy’s Company | 3,079,800 | 27,810,594 | ||||||
| 28,294,528 | |||||||||
| Satellite Telecommunications — 6.51% | |||||||||
| DISH | DISH Network Corp. — Class A* | 682,500 | 49,747,425 | ||||||
| SATS | EchoStar Corporation — Class A* | 514,100 | 26,990,250 | ||||||
| LORL | Loral Space & Communications Inc.* | 300 | 23,613 | ||||||
| VSAT | ViaSat, Inc.* | 14,000 | 882,420 | ||||||
| 77,643,708 |
The accompanying notes are an integral part of these financial statements.
111
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Securities, Commodity Contracts, and Other Financial | |||||||||
| Investments and Related Activities — 0.01% | |||||||||
| FRFHF | Fairfax Financial Holdings Limited | 120 | $ | 62,880 | |||||
| GBL | GAMCO Investors, Inc. — Class A^ | 500 | 44,470 | ||||||
| 107,350 | |||||||||
| Security System Services — 0.01% | |||||||||
| ASCMA | Ascent Capital Group LLC — Class A*^ | 2,400 | 127,032 | ||||||
| Support Activities for Transportation — 0.04% | |||||||||
| 357 HK | Hainan Meilan International Airport Company | ||||||||
| Limited — Class H | 558,000 | 458,365 | |||||||
| Transportation Equipment Manufacturing — 0.01% | |||||||||
| HEI/A | HEICO Corporation — Class A | 1,250 | 59,200 | ||||||
| Utilities — 0.23% | |||||||||
| BIP | Brookfield Infrastructure Partners LP^ | 65,930 | 2,760,489 | ||||||
| TOTAL COMMON STOCKS | |||||||||
| (cost $708,237,937) | 1,122,991,913 | ||||||||
| Principal | |||||||||
| CORPORATE BONDS — 0.21% | Amount | ||||||||
| General Merchandise Stores — 0.21% | |||||||||
| 812350AF3 | Sears Holdings Corporation | ||||||||
| 8.000%, 12/15/2019^ | $ 2,688,500 | 2,446,535 | |||||||
| TOTAL CORPORATE BONDS | |||||||||
| (cost $2,688,500) | 2,446,535 | ||||||||
| ESCROW NOTES — 0.00% | |||||||||
| Special Purpose Entity — 0.00% | |||||||||
| 006ESCBG1 | Adelphia Communications Corp.*+ | 200,000 | — | ||||||
| TOTAL ESCROW NOTES | |||||||||
| (cost $0) | — | ||||||||
| MUTUAL FUNDS — 0.00% | Shares | ||||||||
| Funds, Trusts, and Other Financial Vehicles — 0.00% | |||||||||
| TRF | Templeton Russia and East European Fund, Inc. | 2,200 | 19,800 | ||||||
| TOTAL MUTUAL FUNDS | |||||||||
| (cost $32,396) | 19,800 |
The accompanying notes are an integral part of these financial statements.
112
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | RIGHTS — 0.07% | Shares | Value | ||||||
| Cable Distributor — 0.07% | |||||||||
| LBRKR | Liberty Broadband Corporation* | 93,660 | $ | 889,770 | |||||
| TOTAL RIGHTS | |||||||||
| (cost $522,696) | 889,770 | ||||||||
| WARRANTS — 0.16% | |||||||||
| General Merchandise Stores — 0.16% | |||||||||
| SHLDW | Sears Holdings Corporation*^ | 94,631 | 1,954,130 | ||||||
| TOTAL WARRANTS | |||||||||
| (cost $1,567,657) | 1,954,130 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 5.72% | Amount | ||||||||
| Commercial Paper — 5.05% | |||||||||
| 049221655 | U.S. Bank N.A., 0.02%, 01/02/2015 | $ | 60,270,000 | 60,270,000 | |||||
| Shares | |||||||||
| Mutual Funds — 0.67% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — Class I, 0.01%b | 7,968,700 | 7,968,700 | ||||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $68,238,700) | 68,238,700 | ||||||||
| INVESTMENTS PURCHASED WITH THE CASH | |||||||||
PROCEEDS FROM SECURITIES LENDING — 6.74% | |||||||||
| Money Market Funds — 6.74% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 80,379,397 | 80,379,397 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH | |||||||||
| PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $80,379,397) | 80,379,397 | ||||||||
| TOTAL INVESTMENTS — 107.09% | |||||||||
| (cost $861,667,283) | $ | 1,276,920,245 |
The accompanying notes are an integral part of these financial statements.
113
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Paradigm Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $77,035,587 at December 31, 2014. | |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
c — | Affiliated issuer. See Note 10. | |
| ADR — American Depository Receipt. | ||
| REIT — Real Estate Investment Trust. | ||
The accompanying notes are an integral part of these financial statements.
114
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Medical Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | COMMON STOCKS — 97.30% | Shares | Value | ||||||
| Chemical Manufacturing — 2.09% | |||||||||
| AGEN | Agenus, Inc.* | 148 | $ | 588 | |||||
| APHB | AmpliPhi Biosciences Corp.* | 1,000 | 205 | ||||||
| IMNP | Immune Pharmaceuticals Inc.* | 17 | 32 | ||||||
| LONN VX | Lonza Group AG | 5,000 | 564,273 | ||||||
| MMRF | MMRGlobal Inc.* | 43,000 | 473 | ||||||
| 565,571 | |||||||||
| Pharmaceutical and Biotechnology — 87.45% | |||||||||
| ABBV | AbbVie Inc. | 14,000 | 916,160 | ||||||
| ALKS | Alkermes plc* | 25,000 | 1,464,000 | ||||||
| ARNA | Arena Pharmaceuticals, Inc.*^ | 45,000 | 156,150 | ||||||
| AZN | AstraZeneca plc — ADR | 13,000 | 914,940 | ||||||
| BIIB | Biogen Idec, Inc.* | 7,250 | 2,461,012 | ||||||
| BMY | Bristol-Myers Squibb Company | 34,000 | 2,007,020 | ||||||
| CLDX | Celldex Therapeutics Inc.*^ | 26,294 | 479,866 | ||||||
| CBST | Cubist Pharmaceuticals, Inc.* | 19,000 | 1,912,350 | ||||||
| DNDNQ | Dendreon Corporation*^ | 34,000 | 2,482 | ||||||
| LLY | Eli Lilly & Company | 23,000 | 1,586,770 | ||||||
| GSK | GlaxoSmithKline plc — ADR | 22,673 | 969,044 | ||||||
| ISIS | Isis Pharmaceuticals, Inc.*^ | 17,000 | 1,049,580 | ||||||
| JNJ | Johnson & Johnson | 14,000 | 1,463,980 | ||||||
| MRK | Merck & Co., Inc. | 16,000 | 908,640 | ||||||
| MACK | Merrimack Pharmaceuticals, Inc.*^ | 12,000 | 135,600 | ||||||
| NVS | Novartis AG — ADR | 18,000 | 1,667,880 | ||||||
| ONTY | Oncothyreon, Inc.* | 32,333 | 61,433 | ||||||
| OSIR | Osiris Therapeutics, Inc.*^ | 18,000 | 287,820 | ||||||
| PFE | Pfizer, Inc. | 46,000 | 1,432,900 | ||||||
| PGNX | Progenics Pharmaceuticals, Inc.* | 67,200 | 508,032 | ||||||
| RHHBY | Roche Holding AG Limited — ADR | 22,000 | 747,780 | ||||||
| SNY | Sanofi — ADR | 26,000 | 1,185,860 | ||||||
| SHPG | Shire plc — ADR | 6,000 | 1,275,240 | ||||||
| SNTA | Synta Pharmaceuticals Corp.* | 11,000 | 29,150 | ||||||
| VICL | Vical Inc.* | 84,500 | 88,725 | ||||||
| 23,712,414 | |||||||||
| Professional, Scientific, and Technical Services — 7.76% | |||||||||
| AFFX | Affymetrix, Inc.*^ | 104,000 | 1,026,480 | ||||||
| AMRI | Albany Molecular Research, Inc.*^ | 56,000 | 911,680 | ||||||
| CDXS | Codexis, Inc.* | 5,611 | 14,140 | ||||||
| ONTX | Onconova Therapeutics, Inc.*^ | 18,000 | 59,220 | ||||||
| PACB | Pacific Biosciences of California Inc.* | 12,000 | 94,080 | ||||||
| 2,105,600 |
The accompanying notes are an integral part of these financial statements.
115
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Medical Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| TOTAL COMMON STOCKS | |||||||||
| (cost $15,836,033) | $ | 26,383,585 | |||||||
| RIGHTS — 0.07% | |||||||||
| Funds, Trusts, and Other Financial Vehicles — 0.03% | |||||||||
| LGNDZ | Ligand Pharmaceuticals Inc.* | 44,000 | 286 | ||||||
| LGNXZ | Ligand Pharmaceuticals Inc.* | 44,000 | 5,280 | ||||||
| LGNYZ | Ligand Pharmaceuticals Inc. | 44,000 | 1,980 | ||||||
| LGNZZ | Ligand Pharmaceuticals Inc.* | 44,000 | 572 | ||||||
| 8,118 | |||||||||
| Pharmaceutical and Biotechnology — 0.04% | |||||||||
| GCVRZ | Sanofi* | 15,538 | 12,275 | ||||||
| TOTAL RIGHTS | |||||||||
| (cost $0) | 20,393 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 2.70% | Amount | ||||||||
| Commercial Paper — 2.70% | |||||||||
| 049221655 | U.S. Bank N.A., 0.02%, 01/02/2015 | $ | 732,000 | 732,000 | |||||
| Shares | |||||||||
| Money Market Funds — 0.00% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — Class I, 0.01%b | . | 704 | 704 | |||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $732,704) | 732,704 | ||||||||
| INVESTMENTS PURCHASED WITH | |||||||||
| THE CASH PROCEEDS FROM | |||||||||
| SECURITIES LENDING — 10.87% | |||||||||
| Money Market Funds — 10.87% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 2,947,749 | 2,947,749 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH | |||||||||
| PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $2,947,749) | 2,947,749 | ||||||||
| TOTAL INVESTMENTS — 110.94% | |||||||||
| (cost $19,516,486) | $ | 30,084,431 |
The accompanying notes are an integral part of these financial statements.
116
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Medical Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $2,761,329 at December 31, 2014. | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
| ADR — American Depository Receipt. | ||
The accompanying notes are an integral part of these financial statements.
117
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Small Cap Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | COMMON STOCKS — 98.58% | Shares | Value | ||||||
| Asset Management — 5.50% | |||||||||
| GBL | GAMCO Investors, Inc. — Class A | 23,400 | $ | 2,081,196 | |||||
| JZCP LN | JZ Capital Partners Limited | 196,400 | 1,233,622 | ||||||
| OCX CN | Onex Corporation | 226,500 | 13,151,739 | ||||||
| RCP LN | RIT Capital Partners plc | 135,200 | 2,943,803 | ||||||
| SII CN | Sprott, Inc. | 1,680 | 3,528 | ||||||
| 19,413,888 | |||||||||
| Automobile and Other Motor Vehicle Merchant | |||||||||
| Wholesalers — 0.25% | |||||||||
| VTU LN | Vertu Motors plc | 975,000 | 900,386 | ||||||
| Chemical Manufacturing — 3.96% | |||||||||
| IPAR | Inter Parfums, Inc. | 155,100 | 4,257,495 | ||||||
| PAH | Platform Specialty Products Corporation* | 418,300 | 9,712,926 | ||||||
| 13,970,421 | |||||||||
| Construction of Buildings — 2.72% | |||||||||
| GRBK | Green Brick Partners, Inc.*^ | 398,700 | 3,269,340 | ||||||
| BRP | Brookfield Residential Properties Inc.* | 263,300 | 6,334,998 | ||||||
| 9,604,338 | |||||||||
| Credit Intermediation and Related Activities — 0.85% | |||||||||
| BOKF | BOK Financial Corporation | 11,400 | 684,456 | ||||||
| IFT | Imperial Holdings, Inc.*^ | 353,600 | 2,305,472 | ||||||
| 2,989,928 | |||||||||
| Electronics and Appliance Stores — 1.40% | |||||||||
| SHOS | Sears Hometown and Outlet Stores Inc.* | 375,700 | 4,940,455 | ||||||
| Forestry and Logging — 0.01% | |||||||||
| KEWL | Keweenaw Land Association Limited* | 380 | 37,620 | ||||||
| Gaming — 1.23% | |||||||||
| TPCA | Tropicana Entertainment Inc.* | 256,600 | 4,323,710 | ||||||
| General Merchandise Stores — 2.10% | |||||||||
| SRSC | Sears Canada Inc.*^ | 613,100 | 5,891,891 | ||||||
| SHLD | Sears Holdings Corporation*^ | 46,500 | 1,533,570 | ||||||
| 7,425,461 | |||||||||
| Holding Company — 13.01% | |||||||||
| DDEJF | Dundee Corporation — Class A* | 884,900 | 9,728,591 | ||||||
| IEP | Icahn Enterprises LP | 336,294 | 31,097,106 | ||||||
| PVF CN | Partners Value Fund Inc.* | 191,000 | 5,137,502 | ||||||
| 45,963,199 |
The accompanying notes are an integral part of these financial statements.
118
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Small Cap Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Insurance Carriers and Related Activities — 3.40% | |||||||||
| AFSI | AmTrust Financial Services, Inc.^ | 184,500 | $ | 10,378,125 | |||||
| GLRE | Greenlight Capital Re, Limited — Class A* | 50,200 | 1,639,030 | ||||||
| 12,017,155 | |||||||||
| Lessors of Nonresidential Buildings (except | |||||||||
| Miniwarehouses) — 9.47% | |||||||||
| HHC | The Howard Hughes Corporation* | 256,400 | 33,439,688 | ||||||
| Lessors of Residential Buildings and Dwellings — 1.12% | |||||||||
| ELS | Equity Lifestyle Properties, Inc. — REIT | 76,600 | 3,948,730 | ||||||
| Machinery Manufacturing — 0.50% | |||||||||
| CFX | Colfax Corporation* | 34,500 | 1,779,165 | ||||||
| Manufactured Brands — 9.99% | |||||||||
| JAH | Jarden Corporation* | 702,825 | 33,651,261 | ||||||
| MOV | Movado Group, Inc.^ | 57,200 | 1,622,764 | ||||||
| 35,274,025 | |||||||||
| Media — 2.05% | |||||||||
| LTRPA | Liberty TripAdvisor Holdings Inc. — Series A* | 32,200 | 866,180 | ||||||
| LVNTA | Liberty Ventures — Series A* | 32,200 | 1,214,584 | ||||||
| STRZA | Starz — Class A* | 173,800 | 5,161,860 | ||||||
| 7,242,624 | |||||||||
| Merchant Wholesalers, Durable Goods — 0.26% | |||||||||
| DORM | Dorman Products, Inc.*^ | 19,200 | 926,784 | ||||||
| Mining (except Oil and Gas) — 0.05% | |||||||||
| MUX | McEwen Mining Inc.*^ | 160,600 | 178,266 | ||||||
| Motion Picture and Sound Recording Industries — 4.36% | |||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*^ | 689,600 | 15,398,768 | ||||||
| Motor Vehicle and Parts Dealers — 0.54% | |||||||||
| PAG | Penske Automotive Group, Inc. | 38,700 | 1,899,009 | ||||||
| Non-Store Retailers — 0.21% | |||||||||
| LE | Lands’ End, Inc.*^ | 13,986 | 754,684 | ||||||
| Oil and Gas — 7.13% | |||||||||
| TPL | Texas Pacific Land Trust | 213,500 | 25,193,000 |
The accompanying notes are an integral part of these financial statements.
119
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Small Cap Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Oil and Gas Extraction — 1.85% | |||||||||
| BLMC | Biloxi Marsh Lands Corporation | 100 | $ | 2,950 | |||||
| PARR | Par Petroleum Corporation* | 361,719 | 5,877,934 | ||||||
| WPX | WPX Energy Inc.* | 55,800 | 648,954 | ||||||
| 6,529,838 | |||||||||
| Other Exchanges — 0.64% | |||||||||
| CBOE | CBOE Holdings Inc. | 16,990 | 1,077,506 | ||||||
| URB/A CN | Urbana Corporation — Class A | 695,071 | 1,178,593 | ||||||
| 2,256,099 | |||||||||
| Performing Arts, Spectator Sports, and Related Industries — 4.78% | |||||||||
| LYV | Live Nation Entertainment, Inc.* | 647,000 | 16,893,170 | ||||||
| Petroleum and Coal Products Manufacturing — 0.97% | |||||||||
| CVI | CVR Energy, Inc. | 88,300 | 3,418,093 | ||||||
| Publishing Industries (except Internet) — 0.20% | |||||||||
| PRISY | Promotora de Informaciones S.A. — ADR* | 484,833 | 567,254 | ||||||
| VALU | Value Line, Inc. | 7,615 | 126,790 | ||||||
| 694,044 | |||||||||
| Real Estate — 8.18% | |||||||||
| DRM CN | Dream Unlimited Corp. — Class A* | 2,235,000 | 18,641,031 | ||||||
| TPH | TRI Pointe Homes, Inc.* | 672,700 | 10,258,675 | ||||||
| 28,899,706 | |||||||||
| Rental and Leasing Services — 0.01% | |||||||||
| CDCO | Comdisco Holding Company, Inc.* | 7,560 | 49,140 | ||||||
| Restaurants — 6.90% | |||||||||
| WEN | The Wendy’s Company | 2,696,400 | 24,348,492 | ||||||
| Satellite Telecommunications — 0.61% | |||||||||
| LORL | Loral Space & Communications Inc.* | 14,000 | 1,101,940 | ||||||
| VSAT | ViaSat, Inc.* | 16,400 | 1,033,692 | ||||||
| 2,135,632 | |||||||||
| Securities, Commodity Contracts, and Other Financial | |||||||||
| Investments and Related Activities — 0.00% | |||||||||
| RHJI BB | RHJ International SA* | 800 | 4,463 |
The accompanying notes are an integral part of these financial statements.
120
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Small Cap Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Telecommunications — 0.03% | |||||||||
| CIBY | CIBL, Inc.* | 18 | $ | 24,210 | |||||
| ICTG | ICTC Group Inc.* | 208 | 3,786 | ||||||
| LICT | Lynch Interactive Corporation* | 16 | 80,160 | ||||||
| 108,156 | |||||||||
| Transportation Equipment Manufacturing — 4.30% | |||||||||
| ARII | American Railcar Industries, Inc.^ | 137,400 | 7,076,100 | ||||||
| FDML | Federal-Mogul Corporation* | 504,200 | 8,112,578 | ||||||
| 15,188,678 | |||||||||
| TOTAL COMMON STOCKS | |||||||||
| (cost $310,748,655) | 348,146,815 | ||||||||
| Principal | |||||||||
| CORPORATE BONDS — 0.07% | Amount | ||||||||
| General Merchandise Stores — 0.07% | |||||||||
| 812350AF3 | Sears Holdings Corporation | ||||||||
| 8.000%, 12/15/2019 | $ | 272,500 | 247,975 | ||||||
| TOTAL CORPORATE BONDS | |||||||||
| (cost $272,500) | 247,975 | ||||||||
| RIGHTS — 0.14% | Shares | ||||||||
| Rental and Leasing Services — 0.14% | |||||||||
| CDCOR | Comdisco Holding Company, Inc.*^# | 5,634,807 | 484,594 | ||||||
| TOTAL RIGHTS | |||||||||
| (cost $1,296,169) | 484,594 | ||||||||
| WARRANTS — 0.05% | |||||||||
| General Merchandise Stores — 0.05% | |||||||||
| SHLDW | Sears Holdings Corporation*^ | 9,591 | 198,054 | ||||||
| TOTAL WARRANTS | |||||||||
| (cost $97,553) | 198,054 |
The accompanying notes are an integral part of these financial statements.
121
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Small Cap Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| INVESTMENTS PURCHASED WITH | |||||||||
| THE CASH PROCEEDS FROM | |||||||||
| Identifier | SECURITIES LENDING — 11.45% | Shares | Value | ||||||
| Money Market Funds — 11.45% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 40,433,435 | $ | 40,433,435 | ||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH | |||||||||
| PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $40,433,435) | 40,433,435 | ||||||||
| TOTAL INVESTMENTS — 110.29% | |||||||||
| (cost $352,848,312) | $ | 389,510,873 |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $38,484,035 at December 31, 2014. | |
| # — | Contingent value right (contingent upon profitability of company). | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
| ADR — American Depository Receipt. | ||
| REIT —Real Estate Investment Trust. | ||
The accompanying notes are an integral part of these financial statements.
122
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Market Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | COMMON STOCKS — 88.13% | Shares | Value | ||||||
| Administrative and Support Services — 0.01% | |||||||||
| MRKT | Markit Limited* | 200 | $ | 5,286 | |||||
| Asset Management — 16.38% | |||||||||
| APO | Apollo Global Management LLC — Class A | 18,900 | 445,662 | ||||||
| BX | The Blackstone Group LP^ | 19,600 | 663,068 | ||||||
| BAM | Brookfield Asset Management Inc. — Class A | 53,400 | 2,676,942 | ||||||
| FII | Federated Investors, Inc. — Class B | 3,600 | 118,548 | ||||||
| GBL | GAMCO Investors, Inc. — Class A | 300 | 26,682 | ||||||
| JZCP LN | JZ Capital Partners Limited | 57,000 | 358,027 | ||||||
| OAK | Oaktree Capital Group LLC^ | 18,400 | 953,672 | ||||||
| OZM | Och-Ziff Capital Management Group — Class A | 2,400 | 28,032 | ||||||
| ONEXF | Onex Corporation | 52,000 | 3,034,559 | ||||||
| SII CN | Sprott, Inc. | 41,155 | 86,433 | ||||||
| 806 HK | Value Partners Group Limited | 306,000 | 257,280 | ||||||
| WETF | WisdomTree Investments, Inc.^ | 16,400 | 257,070 | ||||||
| 8,905,975 | |||||||||
| Beverage and Tobacco Product Manufacturing — 0.09% | |||||||||
| CWGL | Crimson Wine Group Limited*^ | 5,080 | 48,260 | ||||||
| Chemical Manufacturing — 0.03% | |||||||||
| KDUS | Cadus Corporation* | 10,800 | 15,552 | ||||||
| Construction of Buildings — 0.80% | |||||||||
| BRP | Brookfield Residential Properties Inc.* | 16,400 | 394,584 | ||||||
| GRBK | Green Brick Partners, Inc.*^ | 5,190 | 42,558 | ||||||
| 437,142 | |||||||||
| Credit Intermediation and Related Activities — 2.93% | |||||||||
| BBCN | BBCN Bancorp, Inc. | 10 | 144 | ||||||
| EWBC | East West Bancorp, Inc. | 3,204 | 124,027 | ||||||
| IFT | Imperial Holdings, Inc.*^ | 225,400 | 1,469,608 | ||||||
| 1,593,779 | |||||||||
| Data Processor — 5.91% | |||||||||
| MA | MasterCard, Inc. — Class A | 16,000 | 1,378,560 | ||||||
| V | Visa, Inc. — Class A | 7,000 | 1,835,400 | ||||||
| 3,213,960 | |||||||||
| E-Commerce — 1.24% | |||||||||
| QVCA | Liberty Interactive Corporation — Class A* | 22,900 | 673,718 |
The accompanying notes are an integral part of these financial statements.
123
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Market Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Electronics and Appliance Stores — 0.02% | |||||||||
| SHOS | Sears Hometown and Outlet Stores Inc.* | 610 | $ | 8,021 | |||||
| Gaming — 2.75% | |||||||||
| LVS | Las Vegas Sands Corp. | 3,000 | 174,480 | ||||||
| TPCA | Tropicana Entertainment Inc.* | 78,400 | 1,321,040 | ||||||
| 1,495,520 | |||||||||
| General Merchandise Stores — 0.06% | |||||||||
| SHLD | Sears Holdings Corporation*^ | 1,000 | 32,980 | ||||||
| Global Exchanges — 2.86% | |||||||||
| JSE SJ | JSE Limited | 83,600 | 874,466 | ||||||
| LSE LN | London Stock Exchange Group plc | 12,800 | 443,092 | ||||||
| SGX SP | Singapore Exchange Limited | 40,000 | 235,836 | ||||||
| 1,553,394 | |||||||||
| Holding Company — 18.12% | |||||||||
| BOL FP | Bollore SA | 10,000 | 45,619 | ||||||
| CKI CN | Clarke Inc. | 1,000 | 8,607 | ||||||
| DDEJF | Dundee Corporation — Class A* | 186,200 | 2,047,083 | ||||||
| IEP | Icahn Enterprises LP | 59,826 | 5,532,110 | ||||||
| LUK | Leucadia National Corporation | 47,600 | 1,067,192 | ||||||
| PVF CN | Partners Value Fund Inc.* | 42,900 | 1,153,921 | ||||||
| 9,854,532 | |||||||||
| Insurance Carriers and Related Activities — 2.94% | |||||||||
| AFSI | AmTrust Financial Services, Inc.^ | 19,600 | 1,102,500 | ||||||
| MKL | Markel Corporation* | 725 | 495,059 | ||||||
| 1,597,559 | |||||||||
| Lessors of Nonresidential Buildings (except | |||||||||
| Miniwarehouses) — 6.56% | |||||||||
| HHC | The Howard Hughes Corporation* | 26,700 | 3,482,214 | ||||||
| RSE | Rouse Properties, Inc.^ | 4,600 | 85,192 | ||||||
| 3,567,406 | |||||||||
| Media — 1.19% | |||||||||
| LTRPA | Liberty TripAdvisor Holdings Inc. — Series A* | 6,748 | 181,521 | ||||||
| LVNTA | Liberty Ventures — Series A* | 12,403 | 467,841 | ||||||
| 649,362 |
The accompanying notes are an integral part of these financial statements.
124
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Market Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | Shares | Value | |||||||
| Merchant Wholesalers, Durable Goods — 0.03% | |||||||||
| AMRK | A-Mark Precious Metals, Inc.* | 1,600 | $ | 15,952 | |||||
| Mining (except Oil and Gas) — 0.48% | |||||||||
| FNV | Franco-Nevada Corporation | 5,200 | 255,788 | ||||||
| SAND | Sandstorm Gold Limited* | 1,800 | 6,120 | ||||||
| 261,908 | |||||||||
| Non-Store Retailers — 3.18% | |||||||||
| BID | Sotheby’s | 40,000 | 1,727,200 | ||||||
| Oil and Gas — 6.53% | |||||||||
| TPL | Texas Pacific Land Trust | 30,100 | 3,551,800 | ||||||
| Other Exchanges — 6.61% | |||||||||
| CBOE | CBOE Holdings Inc. | 42,000 | 2,663,640 | ||||||
| NZX NZ | NZX Limited | 359,002 | 327,646 | ||||||
| URB/A CN | Urbana Corporation — Class A | 356,004 | 603,656 | ||||||
| 3,594,942 | |||||||||
| Real Estate — 3.69% | |||||||||
| DRM CN | Dream Unlimited Corp. — Class A* | 240,400 | 2,005,058 | ||||||
| Securities, Commodity Contracts, and Other Financial | |||||||||
| Investments and Related Activities — 5.15% | |||||||||
| CME | CME Group, Inc. | 6,400 | 567,360 | ||||||
| FRFHF | Fairfax Financial Holdings Limited | 40 | 20,960 | ||||||
| ICE | IntercontinentalExchange Group, Inc. | 4,000 | 877,160 | ||||||
| LTS | Ladenburg Thalmann Financial Services Inc.*^ | 24,000 | 94,800 | ||||||
| OTCM | OTC Markets Group Inc. — Class A | 86,185 | 1,237,617 | ||||||
| 2,797,897 | |||||||||
| Transportation Equipment Manufacturing — 0.01% | |||||||||
| ARII | American Railcar Industries, Inc. | 100 | 5,150 | ||||||
| U.S. Equity Exchanges — 0.56% | |||||||||
| NDAQ | The NASDAQ OMX Group, Inc. | 6,400 | 306,944 | ||||||
| TOTAL COMMON STOCKS | |||||||||
| (cost $35,144,811) | 47,919,297 |
The accompanying notes are an integral part of these financial statements.
125
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Market Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | CORPORATE BONDS — 0.01% | Amount | Value | ||||||
| General Merchandise Stores — 0.01% | |||||||||
| 812350AF3 | Sears Holdings Corporation | ||||||||
| 8.000%, 12/15/2019 | $ | 5,500 | $ | 5,005 | |||||
| TOTAL CORPORATE BONDS | |||||||||
| (cost $5,500) | 5,005 | ||||||||
| MUTUAL FUNDS — 0.00% | Shares | ||||||||
| Funds, Trusts, and Other Financial Vehicles — 0.00% | |||||||||
| TRF | Templeton Russia and East European Fund, Inc. | 200 | 1,800 | ||||||
| TOTAL MUTUAL FUNDS | |||||||||
| (cost $2,544) | 1,800 | ||||||||
| RIGHTS — 0.00% | |||||||||
| Asset Management — 0.00% | |||||||||
| WPSL | W.P. Stewart & Co., Limited*+ | 205 | — | ||||||
| TOTAL RIGHTS | |||||||||
| (cost $0) | — | ||||||||
| WARRANTS — 0.01% | |||||||||
| General Merchandise Stores — 0.01% | |||||||||
| SHLDW | Sears Holdings Corporation*^ | 193 | 3,986 | ||||||
| TOTAL WARRANTS | |||||||||
| (cost $3,070) | 3,986 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 9.80% | Amount | ||||||||
| Commercial Paper — 4.90% | |||||||||
| 049221656 | U.S. Bank N.A., 0.02%, 01/02/2015 | $ | 2,666,000 | 2,666,000 | |||||
| Shares | |||||||||
| Money Market Funds — 4.90% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — | ||||||||
Class I, 0.01%b | 2,664,999 | 2,664,999 | |||||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $5,330,999) | 5,330,999 |
The accompanying notes are an integral part of these financial statements.
126
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Market Opportunities Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| INVESTMENTS PURCHASED WITH | |||||||||
| THE CASH PROCEEDS FROM | |||||||||
| Identifier | SECURITIES LENDING — 5.94% | Shares | Value | ||||||
| Money Market Funds — 5.94% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 3,228,685 | $ | 3,228,685 | ||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH | |||||||||
| PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $3,228,685) | 3,228,685 | ||||||||
| TOTAL INVESTMENTS — 103.89% | |||||||||
| (cost $43,715,609) | $ | 56,489,772 |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $3,101,003 at December 31, 2014. | |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
The accompanying notes are an integral part of these financial statements.
127
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | CORPORATE BONDS — 64.74% | Amount | Value | ||||||
| Beverage and Tobacco Product Manufacturing — 2.05% | |||||||||
| Altria Group, Inc. | |||||||||
| 02209SAK9 | 4.125%, 09/11/2015 | $ | 100,000 | $ | 102,290 | ||||
| The Coca-Cola Company | |||||||||
| 191216AP5 | 1.500%, 11/15/2015 | 100,000 | 101,002 | ||||||
| Dr. Pepper Snapple Group, Inc. | |||||||||
| 26138EAM1 | 2.900%, 01/15/2016 | 200,000 | 204,082 | ||||||
| PepsiCo, Inc. | |||||||||
| 713448CL0 | 0.950%, 02/22/2017# | 200,000 | 199,429 | ||||||
| Reynolds American, Inc. | |||||||||
| 761713AV8 | 1.050%, 10/30/2015 | 175,000 | 175,226 | ||||||
| 782,029 | |||||||||
| Broadcasting (except Internet) — 0.53% | |||||||||
| NBCUniversal Media, LLC | |||||||||
| 63946BAB6 | 3.650%, 04/30/2015 | 100,000 | 101,030 | ||||||
| The Walt Disney Company | |||||||||
| 25468PCU8 | 0.450%, 12/01/2015 | 100,000 | 99,995 | ||||||
| 201,025 | |||||||||
| Chemical Manufacturing — 2.26% | |||||||||
| Colgate-Palmolive Company | |||||||||
| 19416QDQ0 | 1.375%, 11/01/2015 | 150,000 | 151,088 | ||||||
| 19416QDX5 | 1.300%, 01/15/2017# | 200,000 | 201,136 | ||||||
| The Dow Chemical Company | |||||||||
| 260543CD3 | 2.500%, 02/15/2016 | 250,000 | 254,450 | ||||||
| Ecolab Inc. | |||||||||
| 278865AN0 | 1.000%, 08/09/2015 | 55,000 | 55,151 | ||||||
| Mylan Inc. | |||||||||
| 628530AW7 | 1.800%, 06/24/2016 | 200,000 | 201,279 | ||||||
| 863,104 | |||||||||
| Computer and Electronic Product Manufacturing — 4.32% | |||||||||
| Apple, Inc. | |||||||||
| 037833AM2 | 1.050%, 05/05/2017# | 250,000 | 250,700 | ||||||
| Covidien International Finance SA | |||||||||
| 22303QAK6 | 2.800%, 06/15/2015 | 100,000 | 100,961 | ||||||
| Hewlett-Packard Co. | |||||||||
| 428236BC6 | 2.125%, 09/13/2015 | 100,000 | 100,802 | ||||||
| Intel Corp. | |||||||||
| 458140AH3 | 1.950%, 10/01/2016 | 200,000 | 203,967 |
The accompanying notes are an integral part of these financial statements.
128
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Computer and Electronic Product | |||||||||
| Manufacturing — 4.32% (Continued) | |||||||||
| International Business Machines Corporation | |||||||||
| 459200HD6 | 0.750%, 05/11/2015 | $ | 100,000 | $ | 100,184 | ||||
| Medtronic, Inc. | |||||||||
| 585055AR7 | 3.000%, 03/15/2015 | 100,000 | 100,448 | ||||||
| 585055BB1 | 0.875%, 02/27/2017# | 250,000 | 248,911 | ||||||
| Texas Instruments Inc. | |||||||||
| 882508AR5 | 2.375%, 05/16/2016 | 200,000 | 204,661 | ||||||
| Thermo Fisher Scientific, Inc. | |||||||||
| 883556AS1 | 3.200%, 05/01/2015 | 140,000 | 141,172 | ||||||
| Tyco Electronics Group SA | |||||||||
| 902133AL1 | 1.600%, 02/03/2015 | 200,000 | 200,008 | ||||||
| 1,651,814 | |||||||||
| Consumer Staples — 0.52% | |||||||||
| The Procter & Gamble Company | |||||||||
| 742718ED7 | 0.750%, 11/04/2016 | 200,000 | 200,058 | ||||||
| Credit Intermediation and Related Activities — 10.57% | |||||||||
| American Express Centurion | |||||||||
| 025815AA9 | 0.875%, 11/13/2015 | 250,000 | 250,400 | ||||||
| Bank of America Corporation | |||||||||
| 06051GES4 | 1.250%, 01/11/2016 | 250,000 | 250,501 | ||||||
| The Bank of New York Mellon Corporation | |||||||||
| 06406HCD9 | 0.700%, 10/23/2015 | 200,000 | 200,486 | ||||||
| Bank of Nova Scotia | |||||||||
| 064159BV7 | 0.950%, 03/15/2016 | 200,000 | 200,225 | ||||||
| Branch Banking & Trust Company | |||||||||
| 07330NAC9 | 1.450%, 10/03/2016 | 180,000 | 181,140 | ||||||
| Capital One Bank (USA), NA | |||||||||
| 140420NG1 | 1.200%, 02/13/2017 | 250,000 | 247,961 | ||||||
| Caterpillar Financial Services Corporation | |||||||||
| 14912L5B3 | 1.050%, 03/26/2015 | 100,000 | 100,173 | ||||||
| 14912L4S7 | 2.650%, 04/01/2016 | 200,000 | 204,879 | ||||||
| Citigroup Inc. | |||||||||
| 172967HG9 | 1.300%, 11/15/2016 | 350,000 | 349,728 | ||||||
| Fifth Third Bank | |||||||||
| 31677QAX7 | 0.900%, 02/26/2016 | 150,000 | 150,049 |
The accompanying notes are an integral part of these financial statements.
129
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Credit Intermediation and Related | |||||||||
| Activities — 10.57% (Continued) | |||||||||
| General Electric Capital Corp. | |||||||||
| 36962G6M1 | 1.000%, 12/11/2015 | $ | 200,000 | $ | 200,911 | ||||
| Harley-Davidson Financial Services Inc. | |||||||||
| 41283LAC9 | 1.150%, 09/15/2015, Acquired 01/08/2014 | ||||||||
at $200,405■ | 200,000 | 200,580 | |||||||
| John Deere Capital Corporation | |||||||||
| 24422ERQ4 | 0.875%, 04/17/2015 | 100,000 | 100,131 | ||||||
| 24422ESH3 | 1.050%, 12/15/2016 | 200,000 | 200,639 | ||||||
| Key Bank NA | |||||||||
| 49327M2J2 | 1.100%, 11/25/2016 | 250,000 | 249,679 | ||||||
| Manufacturers and Traders Trust Company | |||||||||
| 55279HAF7 | 1.400%, 07/25/2017# | 300,000 | 299,748 | ||||||
| PACCAR Financial Corporation | |||||||||
| 69371RK62 | 1.050%, 06/05/2015 | 100,000 | 100,267 | ||||||
| PNC Bank NA | |||||||||
| 69349LAN8 | 1.300%, 10/03/2016 | 250,000 | 251,340 | ||||||
| Teva Pharmaceuticals Finance | |||||||||
| 88166CAA6 | 3.000%, 06/15/2015 | 100,000 | 100,961 | ||||||
| Wells Fargo & Company | |||||||||
| 94974BFL9 | 1.250%, 07/20/2016 | 200,000 | 200,740 | ||||||
| 4,040,538 | |||||||||
| Digital Security — 0.40% | |||||||||
| Symantec Corp. | |||||||||
| 871503AG3 | 2.750%, 09/15/2015 | 150,000 | 151,868 | ||||||
| Diversified Financial Services — 1.33% | |||||||||
| The Goldman Sachs Group, Inc. | |||||||||
| 38143USC6 | 3.625%, 02/07/2016 | 300,000 | 307,900 | ||||||
| JPMorgan Chase & Co. | |||||||||
| 46623EJR1 | 1.100%, 10/15/2015 | 200,000 | 200,398 | ||||||
| 508,298 | |||||||||
| E-Commerce — 0.89% | |||||||||
| Amazon.com, Inc. | |||||||||
| 023135AK2 | 0.650%, 11/27/2015 | 200,000 | 199,905 | ||||||
| eBay, Inc. | |||||||||
| 278642AD5 | 0.700%, 07/15/2015 | 140,000 | 140,094 | ||||||
| 339,999 |
The accompanying notes are an integral part of these financial statements.
130
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Electrical Equipment, Appliance, and | |||||||||
| Component Manufacturing — 0.26% | |||||||||
| Whirlpool Corporation | |||||||||
| 963320AP1 | 1.350%, 03/01/2017 | $ | 100,000 | $ | 99,751 | ||||
| Fabricated Metal Product Manufacturing — 0.53% | |||||||||
| Danaher Corporation | |||||||||
| 235851AL6 | 2.300%, 06/23/2016 | 200,000 | 204,587 | ||||||
| Food and Beverage Stores — 0.78% | |||||||||
| The Kroger Co. | |||||||||
| 501044CU3 | 1.200%, 10/17/2016 | 300,000 | 299,477 | ||||||
| Food Manufacturing — 3.53% | |||||||||
| ConAgra Foods, Inc. | |||||||||
| 205887BH4 | 1.350%, 09/10/2015 | 100,000 | 100,420 | ||||||
| 205887BP6 | 1.300%, 01/25/2016 | 200,000 | 200,017 | ||||||
| General Mills, Inc. | |||||||||
| 370334BN3 | 0.875%, 01/29/2016 | 200,000 | 200,446 | ||||||
| HJ Heinz Co. | |||||||||
| 423074AL7 | 2.000%, 09/12/2016 | 150,000 | 147,000 | ||||||
| Kellogg Company | |||||||||
| 487836BG2 | 1.125%, 05/15/2015 | 200,000 | 200,554 | ||||||
| 487836BF4 | 1.875%, 11/17/2016 | 100,000 | 101,430 | ||||||
| Kraft Foods Group Inc. | |||||||||
| 50076QAK2 | 1.625%, 06/04/2015 | 200,000 | 200,873 | ||||||
| William Wrigley Jr. Company | |||||||||
| 982526AR6 | 1.400%, 10/21/2016, Acquired 10/28/2013 | ||||||||
at $200,879■ | 200,000 | 200,250 | |||||||
| 1,350,990 | |||||||||
| Food Services and Drinking Places — 1.04% | |||||||||
| Starbucks Corporation | |||||||||
| 855244AE9 | 0.875%, 12/05/2016 | 400,000 | 399,061 | ||||||
| General Merchandise Stores — 1.11% | |||||||||
| Costco Wholesale Corporation | |||||||||
| 22160KAD7 | 0.650%, 12/07/2015 | 150,000 | 150,284 | ||||||
| Wal-Mart Stores, Inc. | |||||||||
| 931142CX9 | 1.500%, 10/25/2015 | 74,000 | 74,701 | ||||||
| 931142DE0 | 0.600%, 04/11/2016 | 200,000 | 199,969 | ||||||
| 424,954 |
The accompanying notes are an integral part of these financial statements.
131
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Health and Personal Care Stores — 1.84% | |||||||||
| CVS Caremark Corporation | |||||||||
| 126650BT6 | 3.250%, 05/18/2015 | $ | 100,000 | $ | 100,973 | ||||
| 126650CA6 | 1.200%, 12/05/2016 | 200,000 | 200,647 | ||||||
| Walgreen Company | |||||||||
| 931422AG4 | 1.000%, 03/13/2015 | 200,000 | 200,195 | ||||||
| 931422AJ8 | 1.800%, 09/15/2017 | 200,000 | 200,229 | ||||||
| 702,044 | |||||||||
| Holding Company — 0.66% | |||||||||
| Berkshire Hathaway Finance Corp. | |||||||||
| 084664BX8 | 0.950%, 08/15/2016# | 250,000 | 250,923 | ||||||
| Insurance Carriers and Related Activities — 3.74% | |||||||||
| Aetna Inc. | |||||||||
| 00817YAK4 | 1.750%, 05/15/2017# | 300,000 | 302,050 | ||||||
| American International Group, Inc. | |||||||||
| 02687QBW7 | 5.450%, 05/18/2017# | 400,000 | 436,684 | ||||||
| UnitedHealth Group Inc. | |||||||||
| 91324PBX9 | 0.850%, 10/15/2015 | 100,000 | 100,309 | ||||||
| 91324PBS0 | 1.875%, 11/15/2016 | 285,000 | 289,644 | ||||||
| WellPoint, Inc. | |||||||||
| 94973VAZ0 | 1.250%, 09/10/2015 | 300,000 | 301,265 | ||||||
| 1,429,952 | |||||||||
| Machinery Manufacturing — 1.40% | |||||||||
| Cameron International Corporation | |||||||||
| 13342BAN5 | 1.400%, 06/15/2017 | 242,000 | 238,492 | ||||||
| Illinois Tool Works, Inc. | |||||||||
| 452308AS8 | 0.900%, 02/25/2017# | 300,000 | 298,840 | ||||||
| 537,332 | |||||||||
| Media — 1.51% | |||||||||
| Discovery Communications | |||||||||
| 25470DAB5 | 3.700%, 06/01/2015 | 100,000 | 101,148 | ||||||
| Time Warner, Inc. | |||||||||
| 887317AC9 | 5.875%, 11/15/2016 | 300,000 | 325,331 | ||||||
| Viacom Inc. | |||||||||
| 92553PAK8 | 1.250%, 02/27/2015 | 150,000 | 150,138 | ||||||
| 576,617 |
The accompanying notes are an integral part of these financial statements.
132
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Merchant Wholesalers, Nondurable Goods — 1.97% | |||||||||
| AmerisourceBergen Corporation | |||||||||
| 03073EAK1 | 1.150%, 05/15/2017 | $ | 300,000 | $ | 297,638 | ||||
| Express Scripts Holding Company | |||||||||
| 30219GAB4 | 2.100%, 02/12/2015 | 100,000 | 100,125 | ||||||
| 302182AF7 | 3.125%, 05/15/2016 | 150,000 | 154,243 | ||||||
| McKesson Corp. | |||||||||
| 581557AY1 | 0.950%, 12/04/2015 | 200,000 | 200,517 | ||||||
| 752,523 | |||||||||
| Mining (except Oil and Gas) — 0.26% | |||||||||
| Rio Tinto Financial USA plc | |||||||||
| 76720AAA4 | 1.125%, 03/20/2015 | 100,000 | 100,111 | ||||||
| Miscellaneous Manufacturing — 3.69% | |||||||||
| 3M Co. | |||||||||
| 88579YAD3 | 1.375%, 09/29/2016 | 250,000 | 252,906 | ||||||
| Baxter International Inc. | |||||||||
| 071813BH1 | 0.950%, 06/01/2016 | 200,000 | 199,989 | ||||||
| Becton Dickinson & Co. | |||||||||
| 075887BD0 | 1.800%, 12/15/2017 | 300,000 | 301,321 | ||||||
| CareFusion Corp. | |||||||||
| 14170TAL5 | 1.450%, 05/15/2017 | 300,000 | 298,049 | ||||||
| CR Bard, Inc. | |||||||||
| 067383AB5 | 2.875%, 01/15/2016 | 150,000 | 153,313 | ||||||
| Stryker Corporation | |||||||||
| 863667AC5 | 2.000%, 09/30/2016 | 200,000 | 203,454 | ||||||
| 1,409,032 | |||||||||
| Motor Vehicle and Parts Dealers — 0.65% | |||||||||
| AutoZone, Inc. | |||||||||
| 053332AQ5 | 1.300%, 01/13/2017 | 250,000 | 249,189 | ||||||
| Oil and Gas Extraction — 1.78% | |||||||||
| Apache Corporation | |||||||||
| 037411AS4 | 5.625%, 01/15/2017 | 350,000 | 378,371 | ||||||
| Marathon Oil Corporation | |||||||||
| 565849AJ5 | 0.900%, 11/01/2015 | 100,000 | 99,729 | ||||||
| Occidental Petroleum Corporation | |||||||||
| 674599CB9 | 1.750%, 02/15/2017# | 200,000 | 201,257 | ||||||
| 679,357 |
The accompanying notes are an integral part of these financial statements.
133
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Other Information Services — 0.59% | |||||||||
| Google Inc. | |||||||||
| 38259PAC6 | 2.125%, 05/19/2016 | $ | 222,000 | $ | 226,849 | ||||
| Petroleum and Coal Products Manufacturing — 2.90% | |||||||||
| Chevron Corporation | |||||||||
| 166764AC4 | 0.889%, 06/24/2016 | 200,000 | 200,496 | ||||||
| Exxon Mobil Corporation | |||||||||
| 30231GAA0 | 0.921%, 03/15/2017# | 200,000 | 199,848 | ||||||
| Hess Corporation | |||||||||
| 42809HAE7 | 1.300%, 06/15/2017 | 350,000 | 345,043 | ||||||
| Phillips 66 | |||||||||
| 718546AJ3 | 2.950%, 05/01/2017 | 350,000 | 361,677 | ||||||
| 1,107,064 | |||||||||
| Pharmaceutical and Biotechnology — 3.62% | |||||||||
| Amgen Inc. | |||||||||
| 031162BF6 | 2.300%, 06/15/2016 | 427,000 | 433,896 | ||||||
| GlaxoSmithKline Capital Inc. | |||||||||
| 377372AG2 | 0.700%, 03/18/2016 | 200,000 | 200,050 | ||||||
| Johnson & Johnson | |||||||||
| 478160BF0 | 0.700%, 11/28/2016# | 300,000 | 299,949 | ||||||
| Life Technologies Corporation | |||||||||
| 53217VAD1 | 3.500%, 01/15/2016 | 150,000 | 151,854 | ||||||
| Pfizer, Inc. | |||||||||
| 717081DJ9 | 1.100%, 05/15/2017# | 300,000 | 299,819 | ||||||
| 1,385,568 | |||||||||
| Pipeline Transportation — 0.26% | |||||||||
| Williams Partners LP | |||||||||
| 96950FAB0 | 3.800%, 02/15/2015 | 100,000 | 100,289 | ||||||
| Publishing Industries (except Internet) — 0.26% | |||||||||
| Thomson Reuters Corporation | |||||||||
| 884903BL8 | 0.875%, 05/23/2016 | 100,000 | 99,516 | ||||||
| Satellite Telecommunications — 1.07% | |||||||||
| DIRECTV Holdings, LLC | |||||||||
| 25459HAY1 | 3.500%, 03/01/2016 | 150,000 | 153,956 | ||||||
| 25459HBE4 | 2.400%, 03/15/2017 | 250,000 | 254,853 | ||||||
| 408,809 |
The accompanying notes are an integral part of these financial statements.
134
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Software — 0.26% | |||||||||
| Adobe Systems, Inc. | |||||||||
| 00724FAA9 | 3.250%, 02/01/2015 | $ | 100,000 | $ | 100,191 | ||||
| Support Activities for Mining — 0.67% | |||||||||
| Schlumberger Investment SA | |||||||||
| 806854AA3 | 1.950%, 09/14/2016, Acquired 01/10/2014 | ||||||||
at $254,292■ | 250,000 | 254,655 | |||||||
| Support Activities for Transportation — 0.81% | |||||||||
| GATX Corporation | |||||||||
| 361448AK9 | 3.500%, 07/15/2016 | 300,000 | 309,632 | ||||||
| Telecommunications — 1.57% | |||||||||
| AT&T, Inc. | |||||||||
| 00206RBL5 | 0.800%, 12/01/2015 | 200,000 | 199,968 | ||||||
| Verizon Communications Inc. | |||||||||
| 92343VBH6 | 0.700%, 11/02/2015 | 200,000 | 199,952 | ||||||
| Vodafone Group plc | |||||||||
| 92857WAX8 | 1.625%, 03/20/2017 | 200,000 | 200,016 | ||||||
| 599,936 | |||||||||
| Transportation Equipment Manufacturing — 1.96% | |||||||||
| Lockheed Martin Corp. | |||||||||
| 539830AX7 | 2.125%, 09/15/2016 | 250,000 | 254,674 | ||||||
| Toyota Motor Credit Corp. | |||||||||
| 89233P6J0 | 0.875%, 07/17/2015 | 200,000 | 200,565 | ||||||
| VW Credit, Inc. | |||||||||
| B84TD43 | 1.875%, 10/13/2016 | 290,000 | 293,727 | ||||||
| 748,966 | |||||||||
| Utilities — 1.86% | |||||||||
| Duke Energy Corporation | |||||||||
| 26441CAG0 | 2.150%, 11/15/2016 | 400,000 | 407,573 | ||||||
| Southern Power Company | |||||||||
| 843646AF7 | 4.875%, 07/15/2015 | 100,000 | 102,181 | ||||||
| Xcel Energy, Inc. | |||||||||
| 98389BAP5 | 0.750%, 05/09/2016 | 200,000 | 199,709 | ||||||
| 709,463 |
The accompanying notes are an integral part of these financial statements.
135
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Waste Management and Remediation Services — 1.29% | |||||||||
| Waste Management, Inc. | |||||||||
| 94106LAT6 | 6.375%, 03/11/2015 | $ | 100,000 | $ | 101,035 | ||||
| 94106LAX7 | 2.600%, 09/01/2016 | 383,000 | 391,958 | ||||||
| 492,993 | |||||||||
| TOTAL CORPORATE BONDS | |||||||||
| (cost $24,798,377) | 24,748,564 | ||||||||
| U.S. GOVERNMENT AGENCY | |||||||||
ISSUES — 3.22%1 | |||||||||
| U.S. Government Agency Issues — 3.22% | |||||||||
| Federal Farm Credit Bank | |||||||||
| 3133ED4A7 | 0.375%, 10/07/2015# | 300,000 | 300,255 | ||||||
| Federal Home Loan Banks | |||||||||
| 313371ZY5 | 1.875%, 12/11/2015# | 175,000 | 177,578 | ||||||
| 313375RN9 | 1.000%, 03/11/2016# | 200,000 | 201,321 | ||||||
| Federal Home Loan Mortgage Corporation | |||||||||
| 3137EADQ9 | 0.500%, 05/13/2016# | 300,000 | 300,146 | ||||||
| Federal National Mortgage Association | |||||||||
| 31398A4K5 | 1.875%, 10/15/2015# | 250,000 | 253,196 | ||||||
| TOTAL U.S. GOVERNMENT AGENCY ISSUES | |||||||||
| (cost $1,231,703) | 1,232,496 | ||||||||
| U.S. TREASURY OBLIGATIONS — 5.49% | |||||||||
| U.S. Treasury Notes — 5.49% | |||||||||
| 912828TK6 | 0.250%, 08/15/2015# | 350,000 | 350,164 | ||||||
| 912828UW8 | 0.250%, 04/15/2016# | 500,000 | 499,258 | ||||||
| 912828VL1 | 0.625%, 07/15/2016# | 250,000 | 250,508 | ||||||
| 912828WA4 | 0.625%, 10/15/2016# | 300,000 | 300,117 | ||||||
| 912828B74 | 0.625%, 02/15/2017# | 200,000 | 199,516 | ||||||
| 912828D49 | 0.875%, 08/15/2017# | 500,000 | 498,828 | ||||||
| TOTAL U.S. TREASURY OBLIGATIONS | |||||||||
| (cost $2,095,931) | 2,098,391 |
The accompanying notes are an integral part of these financial statements.
136
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | EXCHANGE TRADED FUNDS — 19.02% | Shares | Value | ||||||
| Funds, Trusts, and Other Financial Vehicles — 19.02% | |||||||||
| CSJ | iShares 1-3 Year Credit Bond ETF | 34,100 | $ | 3,586,638 | |||||
| MINT | PIMCO Enhanced Short Maturity ETF | 4,700 | 474,982 | ||||||
| SCPB | SPDR Barclays Short Term Corporate Bond ETF# | 24,000 | 734,160 | ||||||
| VCSH | Vanguard Short-Term Corporate Bond ETF | 31,100 | 2,476,493 | ||||||
| TOTAL EXCHANGE TRADED FUNDS | |||||||||
| (cost $7,303,061) | 7,272,273 | ||||||||
| PURCHASED PUT OPTIONS — 0.15% | Contractsd | ||||||||
| Credit Intermediation and Related Activities — 0.10% | |||||||||
| iPath S&P 500 VIX Short-Term Futures ETN* | |||||||||
| VXX 150117P00025000 | Expiration Date: January 2015, Exercise Price: $25.00 | 20 | 120 | ||||||
| VXX 160115P00015000 | Expiration Date: January 2016, Exercise Price: $15.00 | 12 | 1,074 | ||||||
| VXX 160115P00020000 | Expiration Date: January 2016, Exercise Price: $20.00 | 71 | 19,206 | ||||||
| VXX 160115P00025000 | Expiration Date: January 2016, Exercise Price: $25.00 | 30 | 16,425 | ||||||
| 36,825 | |||||||||
| Funds, Trusts, and Other Financial Vehicles — 0.05% | |||||||||
| ProShares Ultra VIX Short-Term Futures ETF* | |||||||||
| UVXY 160115P00010000 | Expiration Date: January 2016, Exercise Price: $10.00 | 6 | 1,809 | ||||||
| UVXY 160115P00015000 | Expiration Date: January 2016, Exercise Price: $15.00 | 29 | 18,560 | ||||||
| 20,369 | |||||||||
| TOTAL PURCHASED PUT OPTIONS | |||||||||
| (cost $73,178) | 57,194 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 8.13% | Amount | ||||||||
| Commercial Paper — 4.04% | |||||||||
| 049221655 | U.S. Bank N.A., 0.02%, 01/02/2015 | $1,543,000 | 1,543,000 | ||||||
| Shares | |||||||||
| Money Market Funds — 4.09% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — | ||||||||
Class I, 0.01%#b | 1,565,506 | 1,565,506 | |||||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $3,108,506) | 3,108,506 | ||||||||
| TOTAL INVESTMENTS — 100.75% | |||||||||
| (cost $38,610,756) | $ | 38,517,424 |
The accompanying notes are an integral part of these financial statements.
137
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| # — | All or a portion of the securities have been committed as collateral for written option contracts. | |
■ — | Restricted security restricted to institutional investors (144a securities); the percentage of net assets comprised of 144a securities was 1.71%. | |
1— | The obligations of certain U.S. Government-Sponsored entities are neither issued nor guaranteed by the United States Treasury. | |
b— | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
d— | 100 shares per contract. | |
| ETF — Exchange Traded Fund. | ||
| ETN — Exchange Traded Note. | ||
The accompanying notes are an integral part of these financial statements.
138
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | CONVERTIBLE BONDS — 12.53% | Amount | Value | ||||||
| Administrative and Support Services — 3.90% | |||||||||
| WebMD Health Corporation | |||||||||
| 94770VAH5 | 2.250%, 03/31/2016 | $ | 400,000 | $ | 403,250 | ||||
| 94770VAF9 | 2.500%, 01/31/2018# | 4,875,000 | 4,887,188 | ||||||
| 5,290,438 | |||||||||
| Computer and Electronic Product Manufacturing — 0.46% | |||||||||
| 747906AJ4 | Quantum Corp. | ||||||||
| 4.500%, 11/15/2017 | 500,000 | 625,938 | |||||||
| Mining (except Oil and Gas) — 4.09% | |||||||||
| 250669AA6 | Detour Gold Corporation | ||||||||
| 5.500%, 11/30/2017 | 1,000,000 | 889,375 | |||||||
| B7W1RP3 | Kirkland Lake Gold Inc. | ||||||||
| 6.000%, 06/30/2017 | CAD 350,000 | 225,942 | |||||||
| 780287AA6 | Royal Gold, Inc. | ||||||||
| 2.875%, 06/15/2019 | 4,264,000 | 4,426,565 | |||||||
| 5,541,882 | |||||||||
| Oil and Gas Extraction — 3.70% | |||||||||
| Chesapeake Energy Corporation | |||||||||
| 165167BW6 | 2.750%, 11/15/2035^# | 650,000 | 652,437 | ||||||
| 165167CB1 | 2.250%, 12/15/2038 | 4,830,000 | 4,362,094 | ||||||
| 5,014,531 | |||||||||
| Real Estate — 0.38% | |||||||||
| 345550AP2 | Forest City Enterprises, Inc. | ||||||||
| 4.250%, 08/15/2018 | 446,000 | 510,670 | |||||||
| TOTAL CONVERTIBLE BONDS | |||||||||
| (cost $16,693,620) | 16,983,459 | ||||||||
| CORPORATE BONDS — 67.43% | |||||||||
| Ambulatory Health Care Services — 0.39% | |||||||||
| DaVita HealthCare Partners Inc. | |||||||||
| 23918KAM0 | 6.625%, 11/01/2020 | 200,000 | 210,625 | ||||||
| 23918KAP3 | 5.750%, 08/15/2022 | 300,000 | 319,125 | ||||||
| 529,750 |
The accompanying notes are an integral part of these financial statements.
139
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Apparel Manufacturing — 2.24% | |||||||||
| L Brands, Inc. | |||||||||
| 532716AT4 | 6.625%, 04/01/2021 | $ | 200,000 | $ | 226,000 | ||||
| 532716AU1 | 5.625%, 02/15/2022 | 2,600,000 | 2,808,000 | ||||||
| 3,034,000 | |||||||||
| Beverage and Tobacco Product | |||||||||
| Manufacturing — 0.07% | |||||||||
| 21036PAL2 | Constellation Brands, Inc. | ||||||||
| 4.250%, 05/01/2023 | 100,000 | 99,500 | |||||||
| Broadcasting (except Internet) — 3.76% | |||||||||
| 00164VAB9 | AMC Networks, Inc. | ||||||||
| 7.750%, 07/15/2021 | 700,000 | 752,500 | |||||||
| 12686CBB4 | Cablevision Systems Corporation | ||||||||
| 5.875%, 09/15/2022 | 200,000 | 203,250 | |||||||
| 1248EPAY9 | CCO Holdings LLC/Capital Corporation | ||||||||
| 5.250%, 09/30/2022 | 2,150,000 | 2,152,687 | |||||||
| 829259AM2 | Sinclair Television Group | ||||||||
| 5.375%, 04/01/2021 | 250,000 | 249,375 | |||||||
| Sirius XM Radio, Inc. | |||||||||
| 82967NAN8 | 5.750%, 08/01/2021, Acquired | ||||||||
02/28/2014-03/20/2014 at $784,317■ | 750,000 | 770,625 | |||||||
| 82967NAL2 | 4.625%, 05/15/2023, Acquired | ||||||||
04/11/2014-07/23/2014 at $711,394■ | 750,000 | 705,000 | |||||||
| 82967NAS7 | 6.000%, 07/15/2024, Acquired | ||||||||
07/02/2014 at $262,360■ | 250,000 | 256,875 | |||||||
| 5,090,312 | |||||||||
| Cable Distributor — 0.93% | |||||||||
| 02154VAA9 | Altice SA | ||||||||
| 7.750%, 05/15/2022, | |||||||||
Acquired 07/02/2014 at $267,831■ | 250,000 | 251,094 | |||||||
| 67054LAB3 | Numericable Group SA | ||||||||
| 6.000%, 05/15/2022, Acquired | |||||||||
06/11/2014-11/04/2014 at $1,042,170■ | 1,000,000 | 1,006,750 | |||||||
| 1,257,844 |
The accompanying notes are an integral part of these financial statements.
140
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Chemical Manufacturing — 4.44% | |||||||||
| Ashland Inc. | |||||||||
| 044209AF1 | 4.750%, 08/15/2022# | $ | 3,800,000 | $ | 3,819,000 | ||||
| 345838AA4 | Forest Laboratories, Inc. | ||||||||
| 5.000%, 12/15/2021, | |||||||||
Acquired 04/01/2014 at $264,901■ | 250,000 | 271,106 | |||||||
| 502160AL8 | LSB Industries, Inc. | ||||||||
| 7.750%, 08/01/2019 | 1,850,000 | 1,933,250 | |||||||
| 6,023,356 | |||||||||
| Computer and Electronic Product Manufacturing — 0.54% | |||||||||
| 436440AF8 | Hologic, Inc. | ||||||||
| 6.250%, 08/01/2020 | 700,000 | 731,500 | |||||||
| Construction of Buildings — 3.06% | |||||||||
| Lennar Corporation | |||||||||
| 526057BN3 | 4.750%, 11/15/2022 | 4,210,000 | 4,146,850 | ||||||
| Credit Intermediation and Related Activities — 0.90% | |||||||||
| 02005NAE0 | Ally Financial, Inc. | ||||||||
| 8.000%, 03/15/2020 | 161,000 | 190,382 | |||||||
| 852060AG7 | Sprint Capital Corp. | ||||||||
| 6.900%, 05/01/2019 | 1,000,000 | 1,025,000 | |||||||
| 1,215,382 | |||||||||
| Data Processing, Hosting and Related Services — 3.19% | |||||||||
| SunGard Data Systems, Inc. | |||||||||
| 867363AR4 | 7.375%, 11/15/2018 | 200,000 | 208,250 | ||||||
| 867363AX1 | 6.625%, 11/01/2019 | 4,051,000 | 4,111,765 | ||||||
| 4,320,015 | |||||||||
| E-Commerce — 3.07% | |||||||||
| 44919PAC6 | IAC/InterActiveCorp | ||||||||
| 4.750%, 12/15/2022 | 4,250,000 | 4,154,375 | |||||||
| Electrical Equipment, Appliance, and Component | |||||||||
| Manufacturing — 0.62% | |||||||||
| GrafTech International Limited | |||||||||
| 384313AD4 | 6.375%, 11/15/2020 | 1,000,000 | 835,000 | ||||||
| Fabricated Metal Product Manufacturing — 0.18% | |||||||||
| 058498AS5 | Ball Corp. | ||||||||
| 4.000%, 11/15/2023 | 250,000 | 242,500 |
The accompanying notes are an integral part of these financial statements.
141
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Food Manufacturing — 3.56% | |||||||||
| Post Holdings, Inc. | |||||||||
| 737446AE4 | 6.750%, 12/01/2021, | ||||||||
Acquired 04/17/2014 at $261,807■ | $ | 250,000 | $ | 243,125 | |||||
| 737446AB0 | 7.375%, 02/15/2022 | 4,575,000 | 4,586,438 | ||||||
| 4,829,563 | |||||||||
| Gaming — 3.42% | |||||||||
| 552953CA7 | MGM Resorts International | ||||||||
| 6.625%, 12/15/2021 | 756,000 | 797,580 | |||||||
| Wynn Las Vegas LLC | |||||||||
| 983130AT2 | 5.375%, 03/15/2022 | 3,300,000 | 3,366,000 | ||||||
| 983130AU9 | 4.250%, 05/30/2023, | ||||||||
Acquired 07/02/2014-07/29/2014 at $486,261■ | 500,000 | 477,500 | |||||||
| 4,641,080 | |||||||||
| Heavy and Civil Engineering Construction — 0.32% | |||||||||
| 962178AK5 | TRI Pointe Holdings, Inc. | ||||||||
| 4.375%, 06/15/2019, Acquired | |||||||||
08/28/2014-10/20/2014 at $446,869■ | 445,000 | 440,550 | |||||||
| Holding Company — 4.17% | |||||||||
| Icahn Enterprises LP | |||||||||
| 451102AX5 | 6.000%, 08/01/2020 | 3,750,000 | 3,882,000 | ||||||
| 451102BF3 | 5.875%, 02/01/2022 | 1,750,000 | 1,766,406 | ||||||
| 5,648,406 | |||||||||
| Hospitals — 0.24% | |||||||||
| 12543DAQ3 | Community Health System, Inc. | ||||||||
| 7.125%, 07/15/2020 | 200,000 | 213,500 | |||||||
| 40412CAB7 | HCA Holdings, Inc. | ||||||||
| 7.750%, 05/15/2021 | 100,000 | 106,750 | |||||||
| 320,250 | |||||||||
| Lessors of Nonresidential Buildings | |||||||||
| (except Miniwarehouses) — 4.14% | |||||||||
| 44267DAA5 | The Howard Hughes Corporation | ||||||||
| 6.875%, 10/01/2021, Acquired | |||||||||
03/05/2014-10/03/2014 at $5,761,234■ | 5,400,000 | 5,616,000 |
The accompanying notes are an integral part of these financial statements.
142
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Merchant Wholesalers, Durable Goods — 0.21% | |||||||||
| 40415RAK1 | HD Supply, Inc. | ||||||||
| 11.500%, 07/15/2020 | $ | 250,000 | $ | 287,500 | |||||
| Mining (except Oil and Gas) — 1.74% | |||||||||
| 35671DAU9 | Freeport-McMoRan Copper & Gold Inc. | ||||||||
| 3.550%, 03/01/2022 | 1,100,000 | 1,040,592 | |||||||
| Peabody Energy Corporation | |||||||||
| 704549AK0 | 6.000%, 11/15/2018 | 950,000 | 866,875 | ||||||
| 704549AH7 | 6.500%, 09/15/2020^ | 250,000 | 218,125 | ||||||
| 929160AR0 | Vulcan Materials Co. | ||||||||
| 7.500%, 06/15/2021 | 200,000 | 234,000 | |||||||
| 2,359,592 | |||||||||
| Motion Picture and Sound Recording Industries — 1.85% | |||||||||
| 26153CAA1 | DreamWorks Animation SKG, Inc. | ||||||||
| 6.875%, 08/15/2020, Acquired | |||||||||
03/03/2014-10/10/2014 at $2,616,264■ | 2,440,000 | 2,513,200 | |||||||
| Motor Vehicle and Parts Dealers — 2.73% | |||||||||
| 70959WAE3 | Penske Automotive Group, Inc. | ||||||||
| 5.750%, 10/01/2022 | 3,550,000 | 3,700,875 | |||||||
| Nonmetallic Mineral Product Manufacturing — 0.21% | |||||||||
| 903293AS7 | USG Corporation | ||||||||
| 9.750%, 01/15/2018 | 250,000 | 286,250 | |||||||
| Non-Store Retailers — 3.10% | |||||||||
| 835898AF4 | Sotheby’s | ||||||||
| 5.250%, 10/01/2022, Acquired | |||||||||
03/03/2014-10/03/2014 at $4,327,836#■ | 4,426,000 | 4,204,700 | |||||||
| Oil and Gas Extraction — 1.22% | |||||||||
| 212015AH4 | Continental Resources, Inc. | ||||||||
| 5.000%, 09/15/2022 | 100,000 | 96,875 | |||||||
| 74733VAA8 | QEP Resources, Inc. | ||||||||
| 6.875%, 03/01/2021 | 250,000 | 257,500 | |||||||
| 98212BAD5 | WPX Energy Inc. | ||||||||
| 6.000%, 01/15/2022 | 1,350,000 | 1,306,125 | |||||||
| 1,660,500 |
The accompanying notes are an integral part of these financial statements.
143
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
| Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Professional, Scientific, and Technical | |||||||||
| Services — 0.37% | |||||||||
| 513075BE0 | Lamar Media Corp. | ||||||||
| 5.000%, 05/01/2023^ | $ | 250,000 | $ | 248,750 | |||||
| 65409QBA9 | Nielsen Finance LLC | ||||||||
| 4.500%, 10/01/2020 | 250,000 | 252,500 | |||||||
| 501,250 | |||||||||
| Publishing Industries (except Internet) — 1.37% | |||||||||
| Gannett Co., Inc. | |||||||||
| 364725BD2 | 5.125%, 10/15/2019 | 250,000 | 256,875 | ||||||
| 364725BA8 | 5.125%, 07/15/2020 | 250,000 | 256,250 | ||||||
| 364725BE0 | 6.375%, 10/15/2023 | 600,000 | 639,000 | ||||||
| Nuance Communications, Inc. | |||||||||
| 67020YAD2 | 5.375%, 08/15/2020, Acquired | ||||||||
02/14/2014-07/29/2014 at $706,222■ | 700,000 | 705,250 | |||||||
| 1,857,375 | |||||||||
| Rail Transportation — 0.18% | |||||||||
| 340630AA0 | Florida East Coast Holdings Corporation | ||||||||
| 6.750%, 05/01/2019, Acquired | |||||||||
07/09/2014 at $264,441■ | 250,000 | 248,125 | |||||||
| Real Estate — 3.87% | |||||||||
| 11283WAA2 | Brookfield Residential Properties | ||||||||
| 6.500%, 12/15/2020, Acquired | |||||||||
07/14/2014-10/02/2014 at $5,256,881■ | 5,000,000 | 5,250,000 | |||||||
| Rental and Leasing Services — 1.65% | |||||||||
| 459745GF6 | International Lease Finance Corp. | ||||||||
| 8.250%, 12/15/2020 | 1,850,000 | 2,233,875 | |||||||
| Satellite Telecommunications — 2.38% | |||||||||
| Dish DBS Corp. | |||||||||
| 25470XAH8 | 4.625%, 07/15/2017 | 3,000,000 | 3,108,750 | ||||||
| 25470XAB1 | 7.875%, 09/01/2019 | 100,000 | 113,750 | ||||||
| 3,222,500 | |||||||||
| Securities, Commodity Contracts, and Other | |||||||||
| Financial Investments and Related Activities — 1.72% | |||||||||
| 683797AB0 | Oppenheimer Holdings, Inc. | ||||||||
| 8.750%, 04/15/2018 | 2,210,000 | 2,331,550 |
The accompanying notes are an integral part of these financial statements.
144
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Telecommunications — 3.69% | |||||||||
| 156700AS5 | Centurylink, Inc. | ||||||||
| 5.800%, 03/15/2022 | $ | 500,000 | $ | 521,250 | |||||
| Crown Castle International Corp. | |||||||||
| 228227BE3 | 4.875%, 04/15/2022 | 723,000 | 731,586 | ||||||
| 228227BD5 | 5.250%, 01/15/2023 | 300,000 | 307,500 | ||||||
| Hughes Satellite Systems Corp. | |||||||||
| 444454AB8 | 6.500%, 06/15/2019 | 500,000 | 538,750 | ||||||
| 444454AA0 | 7.625%, 06/15/2021 | 500,000 | 552,500 | ||||||
| 527298AW3 | Level 3 Financing, Inc. | ||||||||
| 7.000%, 06/01/2020 | 200,000 | 211,750 | |||||||
| 600814AK3 | Millicom International Cellular SA | ||||||||
| 4.750%, 05/22/2020, | |||||||||
Acquired 08/28/2014 at $390,975■ | 390,000 | 369,525 | |||||||
| 83404DAA7 | SoftBank Corp. | ||||||||
| 4.500%, 04/15/2020, Acquired | |||||||||
04/24/2014-10/31/2014 at $1,213,586■ | 1,200,000 | 1,186,500 | |||||||
| 852061AK6 | Sprint Communications Inc. | ||||||||
| 9.000%, 11/15/2018, Acquired | |||||||||
12/30/2013 at $117,041■ | 100,000 | 113,990 | |||||||
| 87264AAD7 | T-Mobile USA, Inc. | ||||||||
| 6.633%, 04/28/2021 | 350,000 | 360,500 | |||||||
| 55181WAA2 | Virgin Media Secured Finance plc | ||||||||
| 5.375%, 04/15/2021, Acquired | |||||||||
02/11/2014 at $101,625■ | 100,000 | 103,750 | |||||||
| 4,997,601 | |||||||||
| Transportation Equipment Manufacturing — 1.66% | |||||||||
| 235825AC0 | Dana Holding Corp. | ||||||||
| 5.375%, 09/15/2021 | 250,000 | 258,125 | |||||||
| 521865AU9 | Lear Corp. | ||||||||
| 4.750%, 01/15/2023 | 500,000 | 501,250 | |||||||
| 63934EAM0 | Navistar International Corp. | ||||||||
| 8.250%, 11/01/2021^ | 1,500,000 | 1,485,000 | |||||||
| 2,244,375 |
The accompanying notes are an integral part of these financial statements.
145
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Principal | |||||||||
| Identifier | Amount | Value | |||||||
| Utilities — 0.24% | |||||||||
| 629377BN1 | NRG Energy, Inc. | ||||||||
| 7.625%, 01/15/2018 | $ | 100,000 | $ | 110,000 | |||||
| 682680AQ6 | ONEOK Inc. | ||||||||
| 4.250%, 02/01/2022 | 230,000 | 210,822 | |||||||
| 320,822 | |||||||||
| TOTAL CORPORATE BONDS | |||||||||
| (cost $93,046,483) | 91,396,323 | ||||||||
| MUNICIPAL BONDS — 0.27% | |||||||||
| Air Transportation — 0.27% | |||||||||
| Branson Missouri Regional Airport Transportation | |||||||||
| Development District | |||||||||
| 105459AB7 | 6.000%, 07/01/2025c+ | 2,000,000 | 210,000 | ||||||
| 105459AC5 | 6.000%, 07/01/2037c+ | 1,500,000 | 157,500 | ||||||
| 367,500 | |||||||||
| TOTAL MUNICIPAL BONDS | |||||||||
| (cost $2,245,112) | 367,500 | ||||||||
| ESCROW NOTES — 0.07% | |||||||||
| Holding Company — 0.07% | |||||||||
| 29ESCQ8A3 | Energy Future Intermediate Holdings Co. LLCc | 1,000,000 | 95,000 | ||||||
| TOTAL ESCROW NOTES | |||||||||
| (cost $38,521) | 95,000 | ||||||||
| EXCHANGE TRADED NOTES — 0.00% | Shares | ||||||||
| Credit Intermediation and Related Activities — 0.00% | |||||||||
| ZIV | VelocityShares Daily Inverse VIX Medium | ||||||||
| Term ETN* | 100 | 4,177 | |||||||
| TOTAL EXCHANGE TRADED NOTES | |||||||||
| (cost $3,971) | 4,177 |
The accompanying notes are an integral part of these financial statements.
146
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | MUTUAL FUNDS — 7.62% | Shares | Value | ||||||
| Funds, Trusts, and Other Financial Vehicles — 7.62% | |||||||||
| ACG | ACM Income Fund, Inc. | 131,200 | $ | 980,064 | |||||
| ACP | Avenue Income Credit Strategies Fund | 16,600 | 250,826 | ||||||
| DSL | DoubleLine Income Solutions Fund | 37,000 | 736,300 | ||||||
| DBL | DoubleLine Opportunistic Credit Fund^ | 51,800 | 1,272,208 | ||||||
| TLI | LMP Corporate Loan Fund Inc. | 12,000 | 132,120 | ||||||
| PCM | PCM Fund Inc. | 2,900 | 30,885 | ||||||
| PCN | PIMCO Corporate Income Fund | 1,700 | 25,687 | ||||||
| PCI | PIMCO Dynamic Credit Income Fund | 64,200 | 1,325,730 | ||||||
| PDI | PIMCO Dynamic Income Fund | 123,800 | 3,805,612 | ||||||
| PKO | PIMCO Income Opportunity Fund^ | 16,050 | 402,052 | ||||||
| PFL | PIMCO Income Strategy Fund | 20,600 | 242,050 | ||||||
| PFN | PIMCO Income Strategy Fund II | 20,100 | 197,181 | ||||||
| SPE | Special Opportunities Fund Inc. | 29,600 | 454,952 | ||||||
| DMO | Western Asset Mortgage Defined Opportunity | ||||||||
| Fund Inc. | 19,500 | 464,880 | |||||||
| WIW | Western Asset/Claymore Inflation-Linked | ||||||||
| Opportunities & Income Fund | 200 | 2,260 | |||||||
| WIA | Western Asset/Claymore Inflation-Linked | ||||||||
| Securities & Income Fund | 200 | 2,320 | |||||||
| TOTAL MUTUAL FUNDS | |||||||||
| (cost $10,805,933) | 10,325,127 | ||||||||
| PURCHASED PUT OPTIONS — 1.15% | Contractsd | ||||||||
| Credit Intermediation and Related Activities — 0.15% | |||||||||
| iPath S&P 500 VIX Short-Term Futures ETN* | |||||||||
| VXX 150117P00025000 | Expiration Date: January 2015, Exercise Price: $25.00 | 2 | 12 | ||||||
| VXX 160115P00015000 | Expiration Date: January 2016, Exercise Price: $15.00 | 4 | 358 | ||||||
| VXX 160115P00020000 | Expiration Date: January 2016, Exercise Price: $20.00 | 536 | 144,988 | ||||||
| VXX 160115P00025000 | Expiration Date: January 2016, Exercise Price: $25.00 | 114 | 62,415 | ||||||
| 207,773 | |||||||||
| Funds, Trusts, and Other Financial Vehicles — 1.00% | |||||||||
| ProShares Ultra VIX Short-Term Futures ETF* | |||||||||
| UVXY2 150117P00010000 | Expiration Date: January 2015, Exercise Price: $10.00 | 18 | 7,245 | ||||||
| UVXY2 150117P00011000 | Expiration Date: January 2015, Exercise Price: $11.00 | 12 | 5,940 | ||||||
| UVXY1 150117P00012000 | Expiration Date: January 2015, Exercise Price: $12.00 | 6 | 6,600 | ||||||
| UVXY2 150117P00012000 | Expiration Date: January 2015, Exercise Price: $12.00 | 78 | 46,020 | ||||||
| UVXY2 150117P00014000 | Expiration Date: January 2015, Exercise Price: $14.00 | 4 | 3,140 | ||||||
| UVXY2 150117P00015000 | Expiration Date: January 2015, Exercise Price: $15.00 | 4 | 3,540 |
The accompanying notes are an integral part of these financial statements.
147
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Identifier | PURCHASED PUT OPTIONS — 1.15% | Contractsd | Value | ||||||
| Funds, Trusts, and Other Financial | |||||||||
| Vehicles — 1.00% (Continued) | |||||||||
| UVXY2 150117P00016000 | Expiration Date: January 2015, Exercise Price: $16.00 | 18 | $ | 17,685 | |||||
| UVXY2 160115P00008000 | Expiration Date: January 2016, Exercise Price: $8.00 | 60 | 29,850 | ||||||
| UVXY2 160115P00009000 | Expiration Date: January 2016, Exercise Price: $9.00 | 214 | 125,190 | ||||||
| UVXY 160115P00010000 | Expiration Date: January 2016, Exercise Price: $10.00 | 54 | 16,281 | ||||||
| UVXY2 160115P00010000 | Expiration Date: January 2016, Exercise Price: $10.00 | 26 | 17,550 | ||||||
| UVXY 160115P00015000 | Expiration Date: January 2016, Exercise Price: $15.00 | 850 | 544,000 | ||||||
| UVXY 160115P00020000 | Expiration Date: January 2016, Exercise Price: $20.00 | 510 | 526,575 | ||||||
| 1,349,616 | |||||||||
| TOTAL PURCHASED PUT OPTIONS | |||||||||
| (cost $1,524,092) | 1,557,389 | ||||||||
| Principal | |||||||||
| SHORT-TERM INVESTMENTS — 8.76% | Amount | ||||||||
| Commercial Paper — 4.38% | |||||||||
| 049221656 | U.S. Bank N.A., 0.02%, 01/02/2015 | $ | 5,939,000 | 5,939,000 | |||||
| Shares | |||||||||
| Money Market Funds — 4.38% | |||||||||
| FIGXX | Fidelity Institutional Government Portfolio — | ||||||||
Class I, 0.01%b | 5,929,427 | 5,929,427 | |||||||
| TOTAL SHORT-TERM INVESTMENTS | |||||||||
| (cost $11,868,427) | 11,868,427 | ||||||||
| INVESTMENTS PURCHASED WITH | |||||||||
| THE CASH PROCEEDS FROM | |||||||||
| SECURITIES LENDING — 2.12% | |||||||||
| Money Market Funds — 2.12% | |||||||||
| Mount Vernon Securities Lending Trust — | |||||||||
Prime Portfolio, 0.27%b | 2,872,260 | 2,872,260 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE | |||||||||
| CASH PROCEEDS FROM SECURITIES LENDING | |||||||||
| (cost $2,872,260) | 2,872,260 | ||||||||
| TOTAL INVESTMENTS — 99.95% | |||||||||
| (cost $139,098,419) | $ | 135,469,662 |
The accompanying notes are an integral part of these financial statements.
148
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Investments — December 31, 2014 — (Continued) |
| Percentages are stated as a percent of net assets. | ||
| * — | Non-income producing security. | |
| ^ — | This security or a portion of this security was out on loan at December 31, 2014. Total loaned securities had a market value of $2,774,698 at December 31, 2014. | |
| # — | All or a portion of the shares have been committed as collateral for written option contracts. | |
■ — | Restricted security restricted to institutional investors (144a securities); the percentage of net assets comprised of 144a securities was 18.25%. | |
c — | Default or other conditions exist and the security is not presently accruing income. | |
| + — | Security is considered illiquid. The aggregate value of such securities is $367,500 or 0.27% of net assets. | |
b — | The rate quoted is the annualized seven-day yield as of December 31, 2014. | |
d — | 100 shares per contract. | |
| CAD — Canadian Dollars. | ||
| ETF — Exchange Traded Fund. | ||
| ETN — Exchange Traded Note. | ||
The accompanying notes are an integral part of these financial statements.
149
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
| Portfolio of Options Written — December 31, 2014 |
| Identifier | PUT OPTIONS WRITTEN | Contractsd | Value | ||||||
| Accommodation | |||||||||
| Carnival Corporation | |||||||||
| CCL 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 8 | $ | 300 | |||||
| CCL 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 34 | 1,955 | ||||||
| CCL 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 3 | 225 | ||||||
| CCL 170120P00025000 | Expiration: January 2017, Exercise Price: $25.00 | 8 | 860 | ||||||
| CCL 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 14 | 1,925 | ||||||
| CCL 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 32 | 5,520 | ||||||
| Marriott International Inc. — Class A | |||||||||
| MAR 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 2 | 125 | ||||||
| MAR 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 4 | 530 | ||||||
| MAR 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 4 | 800 | ||||||
| MAR 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 9 | 2,520 | ||||||
| Starwood Hotels & Resorts Worldwide, Inc. | |||||||||
| HOT 160115P00052400 | Expiration: January 2016, Exercise Price: $52.40 | 4 | 488 | ||||||
| HOT 160115P00054900 | Expiration: January 2016, Exercise Price: $54.90 | 10 | 1,470 | ||||||
| HOT 160115P00057400 | Expiration: January 2016, Exercise Price: $57.40 | 1 | 177 | ||||||
| HOT 160115P00059900 | Expiration: January 2016, Exercise Price: $59.90 | 5 | 1,075 | ||||||
| HOT 170120P00054350 | Expiration: January 2017, Exercise Price: $54.35 | 12 | 3,780 | ||||||
| 21,750 | |||||||||
| Administrative and Support Services | |||||||||
| Accenture plc — Class A | |||||||||
| ACN 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 13 | 1,300 | ||||||
| ACN 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 2 | 460 | ||||||
| ACN 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 4 | 1,200 | ||||||
| Expedia, Inc. | |||||||||
| EXPE 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 10 | 1,175 | ||||||
| EXPE 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 177 | ||||||
| EXPE 160115P00062500 | Expiration: January 2016, Exercise Price: $62.50 | 2 | 615 | ||||||
| EXPE 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 2 | 810 | ||||||
| EXPE 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 20 | 10,600 | ||||||
| The Priceline Group Inc. | |||||||||
| PCLN 170120P00860000 | Expiration: January 2017, Exercise Price: $860.00 | 1 | 5,285 | ||||||
| 21,622 | |||||||||
| Ambulatory Health Care Services | |||||||||
| DaVita HealthCare Partners Inc. | |||||||||
| DVA 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 11 | 550 | ||||||
| DVA 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 63 | ||||||
| 613 |
The accompanying notes are an integral part of these financial statements.
150
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Apparel Manufacturing | |||||||||
| L Brands, Inc. | |||||||||
| LB 160115P00047500 | Expiration: January 2016, Exercise Price: $47.50 | 5 | $ | 287 | |||||
| LB 160115P00049000 | Expiration: January 2016, Exercise Price: $49.00 | 5 | 325 | ||||||
| LB 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 27 | 5,468 | ||||||
| LB 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 8 | 2,240 | ||||||
| 8,320 | |||||||||
| Asset Management | |||||||||
| Affiliated Managers Group, Inc. | |||||||||
| AMG 150619P00140000 | Expiration: June 2015, Exercise Price: $140.00 | 2 | 285 | ||||||
| BlackRock, Inc. | |||||||||
| BLK 160115P00210000 | Expiration: January 2016, Exercise Price: $210.00 | 8 | 2,380 | ||||||
| BLK 160115P00220000 | Expiration: January 2016, Exercise Price: $220.00 | 1 | 272 | ||||||
| BLK 160115P00230000 | Expiration: January 2016, Exercise Price: $230.00 | 4 | 1,000 | ||||||
| The Blackstone Group LP | |||||||||
| BX 150320P00024000 | Expiration: March 2015, Exercise Price: $24.00 | 5 | 40 | ||||||
| BX 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 48 | 1,800 | ||||||
| BX 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 53 | 3,286 | ||||||
| Franklin Resources, Inc. | |||||||||
| BEN 150117P00039500 | Expiration: January 2015, Exercise Price: $39.50 | 1 | 7 | ||||||
| BEN 160115P00039500 | Expiration: January 2016, Exercise Price: $39.50 | 42 | 4,620 | ||||||
| KKR & Co. LP | |||||||||
| KKR 150117P00013000 | Expiration: January 2015, Exercise Price: $13.00 | 50 | 125 | ||||||
| KKR 150320P00018000 | Expiration: March 2015, Exercise Price: $18.00 | 11 | 110 | ||||||
| KKR 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 9 | 203 | ||||||
| KKR 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 22 | 605 | ||||||
| 14,733 | |||||||||
| Beverage and Tobacco Product Manufacturing | |||||||||
| Anheuser-Busch InBev NV — ADR | |||||||||
| BUD 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 6 | 1,275 | ||||||
| The Coca-Cola Company | |||||||||
| KO 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 7 | 444 | ||||||
| KO 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 4 | 370 | ||||||
| KO 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 17 | 3,519 | ||||||
The accompanying notes are an integral part of these financial statements.
151
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Beverage and Tobacco Product | |||||||||
| Manufacturing — (Continued) | |||||||||
| Constellation Brands, Inc. — Class A | |||||||||
| STZ 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 3 | $ | 217 | |||||
| STZ 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 3 | 240 | ||||||
| STZ 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 7 | 630 | ||||||
| STZ 160115P00062500 | Expiration: January 2016, Exercise Price: $62.50 | 5 | 463 | ||||||
| STZ 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 4 | 530 | ||||||
| STZ 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 2 | 610 | ||||||
| STZ 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 6 | 2,310 | ||||||
| Lorillard, Inc. | |||||||||
| LO 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 11 | 753 | ||||||
| Molson Coors Brewing Company — Class B | |||||||||
| TAP 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 2 | 45 | ||||||
| TAP 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 14 | 700 | ||||||
| TAP 160115P00042500 | Expiration: January 2016, Exercise Price: $42.50 | 6 | 360 | ||||||
| TAP 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 5 | 375 | ||||||
| TAP 160115P00047500 | Expiration: January 2016, Exercise Price: $47.50 | 3 | 285 | ||||||
| TAP 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 2 | 240 | ||||||
| TAP 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 2 | 300 | ||||||
| TAP 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 9 | 1,665 | ||||||
| TAP 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 7 | 2,450 | ||||||
| TAP 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 2 | 980 | ||||||
| PepsiCo, Inc. | |||||||||
| PEP 170120P00080000 | Expiration: January 2017, Exercise Price: $80.00 | 3 | 1,343 | ||||||
| Philip Morris International, Inc. | |||||||||
| PM 150117P00075000 | Expiration: January 2015, Exercise Price: $75.00 | 5 | 75 | ||||||
| PM 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 1 | 142 | ||||||
| 20,321 | |||||||||
| Broadcasting (except Internet) | |||||||||
| CBS Corporation — Class B | |||||||||
| CBS 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 4 | 30 | ||||||
| CBS 150117P00047000 | Expiration: January 2015, Exercise Price: $47.00 | 2 | 10 | ||||||
| CBS 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 2 | 150 | ||||||
| CBS 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 36 | 4,140 | ||||||
| CBS 160115P00042500 | Expiration: January 2016, Exercise Price: $42.50 | 8 | 1,260 | ||||||
| CBS 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 15 | 3,225 | ||||||
The accompanying notes are an integral part of these financial statements.
152
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Broadcasting (except Internet) — (Continued) | |||||||||
| Comcast Corporation — Class A | |||||||||
| CMCSA 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 6 | $ 282 | ||||||
| CMCSA 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 10 | 700 | ||||||
| CMCSA 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 13 | 1,157 | ||||||
| CMCSA 170120P00038000 | Expiration: January 2017, Exercise Price: $38.00 | 5 | 775 | ||||||
| CMCSA 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 11 | 2,079 | ||||||
| Sirius XM Holdings Inc. | |||||||||
| SIRI 160115P00002500 | Expiration: January 2016, Exercise Price: $2.50 | 160 | 800 | ||||||
| Twenty-First Century Fox, Inc. — Class A | |||||||||
| FOXA 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 14 | 385 | ||||||
| FOXA 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 25 | 1,000 | ||||||
| FOXA 170120P00023000 | Expiration: January 2017, Exercise Price: $23.00 | 5 | 338 | ||||||
| FOXA 170120P00025000 | Expiration: January 2017, Exercise Price: $25.00 | 16 | 1,560 | ||||||
| The Walt Disney Company | |||||||||
| DIS 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 16 | 992 | ||||||
| DIS 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 4 | 344 | ||||||
| DIS 160115P00062500 | Expiration: January 2016, Exercise Price: $62.50 | 4 | 406 | ||||||
| DIS 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 7 | 868 | ||||||
| DIS 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 2 | 301 | ||||||
| DIS 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 6 | 1,563 | ||||||
| DIS 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 3 | 1,042 | ||||||
| 23,407 | |||||||||
| Building Equipment Contractors | |||||||||
| Honeywell International Inc. | |||||||||
| HON 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 7 | 714 | ||||||
| HON 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 9 | 1,188 | ||||||
| 1,902 | |||||||||
| Building Material and Garden Equipment and Supplies Dealers | |||||||||
| Fastenal Company | |||||||||
| FAST 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 20 | 1,300 | ||||||
| FAST 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 3 | 270 | ||||||
| FAST 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 2 | 275 | ||||||
| FAST 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 4 | 460 | ||||||
| FAST 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 16 | 2,520 | ||||||
The accompanying notes are an integral part of these financial statements.
153
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Building Material and Garden Equipment and | |||||||||
| Supplies Dealers — (Continued) | |||||||||
| The Home Depot, Inc. | |||||||||
| HD 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 10 | $ | 2,970 | |||||
| HD 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 8 | 3,020 | ||||||
| Lowe’s Companies, Inc. | |||||||||
| LOW 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 15 | 1,740 | ||||||
| LOW 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 4 | 692 | ||||||
| The Sherwin-Williams Company | |||||||||
| SHW 160115P00150000 | Expiration: January 2016, Exercise Price: $150.00 | 3 | 300 | ||||||
| 13,547 | |||||||||
| Cable Distributor | |||||||||
| Liberty Global plc — Class A | |||||||||
| LBTYA 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 2 | 490 | ||||||
| LBTY2 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 3 | 750 | ||||||
| 1,240 | |||||||||
| Chemical Manufacturing | |||||||||
| Celgene Corporation | |||||||||
| CELG 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 4 | 486 | ||||||
| CELG 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 12 | 1,914 | ||||||
| CELG 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 4 | 828 | ||||||
| CELG 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 559 | ||||||
| CELG 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 2 | 1,170 | ||||||
| CELG 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 3 | 2,197 | ||||||
| CELG 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 12 | 10,290 | ||||||
| CF Industries Holdings, Inc. | |||||||||
| CF 160115P00175000 | Expiration: January 2016, Exercise Price: $175.00 | 1 | 482 | ||||||
| CF 160115P00180000 | Expiration: January 2016, Exercise Price: $180.00 | 6 | 3,450 | ||||||
| CF 160115P00185000 | Expiration: January 2016, Exercise Price: $185.00 | 2 | 1,115 | ||||||
| CF 160115P00190000 | Expiration: January 2016, Exercise Price: $190.00 | 3 | 1,875 | ||||||
| CF 170120P00195000 | Expiration: January 2017, Exercise Price: $195.00 | 2 | 3,200 | ||||||
| CF 170120P00200000 | Expiration: January 2017, Exercise Price: $200.00 | 1 | 1,698 | ||||||
The accompanying notes are an integral part of these financial statements.
154
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Chemical Manufacturing — (Continued) | |||||||||
| The Dow Chemical Company | |||||||||
| DOW 150320P00045000 | Expiration: March 2015, Exercise Price: $45.00 | 3 | $ | 612 | |||||
| DOW 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 8 | 484 | ||||||
| DOW 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 20 | 1,600 | ||||||
| DOW 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 6 | 738 | ||||||
| DOW 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 8 | 1,280 | ||||||
| DOW 160115P00037000 | Expiration: January 2016, Exercise Price: $37.00 | 35 | 7,245 | ||||||
| DOW 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 13 | 3,867 | ||||||
| E.I. du Pont de Nemours and Company | |||||||||
| DD 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 6 | 372 | ||||||
| DD 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 4 | 934 | ||||||
| Eastman Chemical Company | |||||||||
| EMN 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 6 | 1,080 | ||||||
| EMN 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 18 | 4,905 | ||||||
| EMN 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 6 | 2,400 | ||||||
| LyondellBasell Industries NV — Class A | |||||||||
| LYB 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 11 | 4,565 | ||||||
| LYB 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 7 | 3,780 | ||||||
| LYB 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 12 | 7,680 | ||||||
| Monsanto Company | |||||||||
| MON 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 2 | 182 | ||||||
| MON 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 4 | 474 | ||||||
| MON 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 7 | 1,102 | ||||||
| MON 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 1 | 206 | ||||||
| MON 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 5 | 1,395 | ||||||
| MON 170120P00090000 | Expiration: January 2017, Exercise Price: $90.00 | 4 | 1,770 | ||||||
| The Mosaic Company | |||||||||
| MOS 160115P00032500 | Expiration: January 2016, Exercise Price: $32.50 | 22 | 1,650 | ||||||
| MOS 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 19 | 2,147 | ||||||
| MOS 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 9 | 1,508 | ||||||
| Mylan Inc. | |||||||||
| MYL 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 2 | 138 | ||||||
| MYL 160115P00037000 | Expiration: January 2016, Exercise Price: $37.00 | 10 | 995 | ||||||
| MYL 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 4 | 520 | ||||||
| OPKO Health, Inc. | |||||||||
| OPK 150117P00003000 | Expiration: January 2015, Exercise Price: $3.00 | 66 | 165 | ||||||
| OPK 150320P00006000 | Expiration: March 2015, Exercise Price: $6.00 | 20 | 150 | ||||||
| OPK 160115P00003000 | Expiration: January 2016, Exercise Price: $3.00 | 66 | 660 | ||||||
The accompanying notes are an integral part of these financial statements.
155
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Chemical Manufacturing — (Continued) | |||||||||
| Teva Pharmaceutical Industries Limited — ADR | |||||||||
| TEVA 160115P00032500 | Expiration: January 2016, Exercise Price: $32.50 | 6 | $ | 210 | |||||
| TEVA 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 3 | 149 | ||||||
| TEVA 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 14 | 931 | ||||||
| TEVA 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 10 | 965 | ||||||
| Theravance Inc. | |||||||||
| THRX 150320P00012000 | Expiration: March 2015, Exercise Price: $12.00 | 12 | 1,080 | ||||||
| THRX 150320P00013000 | Expiration: March 2015, Exercise Price: $13.00 | 46 | 5,750 | ||||||
| 92,953 | |||||||||
| Clothing and Clothing Accessories Stores | |||||||||
| DSW Inc. — Class A | |||||||||
| DSW 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 35 | 175 | ||||||
| DSW 150417P00020000 | Expiration: April 2015, Exercise Price: $20.00 | 7 | 87 | ||||||
| DSW 150417P00022500 | Expiration: April 2015, Exercise Price: $22.50 | 27 | 338 | ||||||
| DSW 170120P00020000 | Expiration: January 2017, Exercise Price: $20.00 | 35 | 2,450 | ||||||
| DSW 170120P00022500 | Expiration: January 2017, Exercise Price: $22.50 | 46 | 5,175 | ||||||
| The Estee Lauder Companies Inc. — Class A | |||||||||
| EL 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 2 | 140 | ||||||
| The Gap, Inc. | |||||||||
| GPS 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 5 | 150 | ||||||
| GPS 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 51 | 2,728 | ||||||
| GPS 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 36 | 2,736 | ||||||
| Nordstrom, Inc. | |||||||||
| JWN 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 4 | 218 | ||||||
| JWN 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 4 | 394 | ||||||
| JWN 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 5 | 598 | ||||||
| JWN 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 8 | 2,156 | ||||||
| Tiffany & Co. | |||||||||
| TIF 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 1 | 72 | ||||||
| TIF 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 1 | 101 | ||||||
| TIF 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 7 | 837 | ||||||
| TIF 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 2 | 283 | ||||||
| TIF 160115P00072500 | Expiration: January 2016, Exercise Price: $72.50 | 7 | 1,169 | ||||||
| TIF 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 8 | 1,552 | ||||||
| TIF 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 2 | 511 | ||||||
| TIF 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 4 | 1,326 | ||||||
| TIF 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 3 | 1,298 | ||||||
| 24,494 | |||||||||
The accompanying notes are an integral part of these financial statements.
156
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Computer and Electronic Product Manufacturing | |||||||||
| Agilent Technologies, Inc. | |||||||||
| A1 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 5 | $ | 87 | |||||
| A1 150117P00042000 | Expiration: January 2015, Exercise Price: $42.00 | 18 | 225 | ||||||
| A1 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 1 | 91 | ||||||
| A1 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 25 | 5,513 | ||||||
| A1 160115P00042500 | Expiration: January 2016, Exercise Price: $42.50 | 3 | 588 | ||||||
| A1 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 2 | 487 | ||||||
| A 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 6 | 1,488 | ||||||
| A1 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 23 | 6,394 | ||||||
| A1 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 5 | 1,700 | ||||||
| Altera Corporation | |||||||||
| ALTR 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 18 | 1,035 | ||||||
| Apple, Inc. | |||||||||
| AAPL 150717P00080000 | Expiration: July 2015, Exercise Price: $80.00 | 2 | 202 | ||||||
| AAPL 160115P00068570 | Expiration: January 2016, Exercise Price: $68.57 | 1 | 119 | ||||||
| AAPL 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 2 | 266 | ||||||
| AAPL 160115P00071430 | Expiration: January 2016, Exercise Price: $71.43 | 11 | 1,623 | ||||||
| AAPL 160115P00075710 | Expiration: January 2016, Exercise Price: $75.71 | 2 | 403 | ||||||
| AAPL 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 1 | 470 | ||||||
| AAPL 170120P00080000 | Expiration: January 2017, Exercise Price: $80.00 | 6 | 3,660 | ||||||
| Broadcom Corporation — Class A | |||||||||
| BRCM 160115P00027000 | Expiration: January 2016, Exercise Price: $27.00 | 22 | 1,089 | ||||||
| BRCM 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 7 | 987 | ||||||
| BRCM 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 25 | 4,525 | ||||||
| Cisco Systems, Inc. | |||||||||
| CSCO 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 18 | 441 | ||||||
| CSCO 170120P00018000 | Expiration: January 2017, Exercise Price: $18.00 | 24 | 1,608 | ||||||
| CSCO 170120P00020000 | Expiration: January 2017, Exercise Price: $20.00 | 12 | 1,218 | ||||||
| EMC Corporation | |||||||||
| EMC 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 7 | 287 | ||||||
| EMC 170120P00023000 | Expiration: January 2017, Exercise Price: $23.00 | 11 | 1,639 | ||||||
| Hologic, Inc. | |||||||||
| HOLX 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 61 | 1,830 | ||||||
| HOLX 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 8 | 520 | ||||||
| HOLX 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 14 | 1,190 | ||||||
The accompanying notes are an integral part of these financial statements.
157
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Computer and Electronic Product | |||||||||
| Manufacturing — (Continued) | |||||||||
| International Business Machines Corporation | |||||||||
| IBM 150117P00160000 | Expiration: January 2015, Exercise Price: $160.00 | 5 | $ | 1,040 | |||||
| IBM 160115P00130000 | Expiration: January 2016, Exercise Price: $130.00 | 1 | 432 | ||||||
| IBM 160115P00140000 | Expiration: January 2016, Exercise Price: $140.00 | 2 | 1,335 | ||||||
| IBM 160115P00160000 | Expiration: January 2016, Exercise Price: $160.00 | 2 | 2,895 | ||||||
| IBM 170120P00125000 | Expiration: January 2017, Exercise Price: $125.00 | 1 | 743 | ||||||
| IBM 170120P00130000 | Expiration: January 2017, Exercise Price: $130.00 | 4 | 3,530 | ||||||
| QUALCOMM Inc. | |||||||||
| QCOM 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 15 | 1,552 | ||||||
| QCOM 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 6 | 972 | ||||||
| QCOM 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 7 | 1,396 | ||||||
| QCOM 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 3 | 737 | ||||||
| QCOM 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 9 | 2,921 | ||||||
| Sony Corporation | |||||||||
| SNE 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 57 | 1,853 | ||||||
| St. Jude Medical, Inc. | |||||||||
| STJ 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 8 | 560 | ||||||
| STJ 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 19 | 2,565 | ||||||
| Texas Instruments Inc. | |||||||||
| TXN 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 2 | 78 | ||||||
| TXN 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 10 | 715 | ||||||
| TXN 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 6 | 618 | ||||||
| TXN 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 4 | 414 | ||||||
| TXN 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 8 | 1,092 | ||||||
| TXN 170120P00038000 | Expiration: January 2017, Exercise Price: $38.00 | 7 | 1,540 | ||||||
| Thermo Fisher Scientific, Inc. | |||||||||
| TMO 150320P00100000 | Expiration: March 2015, Exercise Price: $100.00 | 2 | 95 | ||||||
| TMO 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 10 | 1,525 | ||||||
| TMO 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 4 | 710 | ||||||
| TMO 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 7 | 2,030 | ||||||
| 71,033 | |||||||||
| Construction of Buildings | |||||||||
| Lennar Corporation — Class A | |||||||||
| LEN 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 15 | 525 | ||||||
| LEN 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 24 | 1,656 | ||||||
| LEN 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 9 | 864 | ||||||
| LEN 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 21 | 4,263 | ||||||
| LEN 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 6 | 1,575 | ||||||
| 8,883 | |||||||||
The accompanying notes are an integral part of these financial statements.
158
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Consumer Staples | |||||||||
| The Procter & Gamble Company | |||||||||
| PG 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 7 | $ | 427 | |||||
| PG 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 8 | 928 | ||||||
| PG 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 2 | 528 | ||||||
| PG 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 4 | 1,460 | ||||||
| 3,343 | |||||||||
| Couriers and Messengers | |||||||||
| FedEx Corp. | |||||||||
| FDX 160115P00097500 | Expiration: January 2016, Exercise Price: $97.50 | 1 | 85 | ||||||
| FDX 160115P00100000 | Expiration: January 2016, Exercise Price: $100.00 | 7 | 662 | ||||||
| FDX 160115P00115000 | Expiration: January 2016, Exercise Price: $115.00 | 1 | 173 | ||||||
| FDX 170120P00125000 | Expiration: January 2017, Exercise Price: $125.00 | 6 | 3,675 | ||||||
| FDX 170120P00130000 | Expiration: January 2017, Exercise Price: $130.00 | 4 | 2,750 | ||||||
| 7,345 | |||||||||
| Credit Intermediation and Related Activities | |||||||||
| American Express Company | |||||||||
| AXP 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 1 | 79 | ||||||
| AXP 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 12 | 1,356 | ||||||
| AXP 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 6 | 837 | ||||||
| AXP 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 9 | 1,521 | ||||||
| AXP 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 2 | 479 | ||||||
| AXP 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 5 | 1,287 | ||||||
| AXP 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 4 | 1,380 | ||||||
| Bank of America Corporation | |||||||||
| BAC 160115P00010000 | Expiration: January 2016, Exercise Price: $10.00 | 42 | 525 | ||||||
| BAC 160115P00012000 | Expiration: January 2016, Exercise Price: $12.00 | 202 | 4,949 | ||||||
| BAC 170120P00010000 | Expiration: January 2017, Exercise Price: $10.00 | 37 | 1,239 | ||||||
| BAC 170120P00013000 | Expiration: January 2017, Exercise Price: $13.00 | 15 | 1,253 | ||||||
| The Bank of New York Mellon Corporation | |||||||||
| BK 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 20 | 780 | ||||||
| BK 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 5 | 450 | ||||||
| Capital One Financial Corporation | |||||||||
| COF 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 8 | 692 | ||||||
The accompanying notes are an integral part of these financial statements.
159
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Credit Intermediation and Related | |||||||||
| Activities — (Continued) | |||||||||
| Citigroup Inc. | |||||||||
| C 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 3 | $ | 135 | |||||
| C 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 31 | 1,798 | ||||||
| C 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 8 | 648 | ||||||
| C 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 17 | 1,827 | ||||||
| C 160115P00043000 | Expiration: January 2016, Exercise Price: $43.00 | 8 | 1,208 | ||||||
| State Street Corporation | |||||||||
| STT 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 2 | 172 | ||||||
| U.S. Bancorp | |||||||||
| USB 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 3 | 194 | ||||||
| USB 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 2 | 166 | ||||||
| Wells Fargo & Company | |||||||||
| WFC 150417P00036000 | Expiration: April 2015, Exercise Price: $36.00 | 4 | 50 | ||||||
| WFC 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 4 | 372 | ||||||
| WFC 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 15 | 3,068 | ||||||
| WFC 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 3 | 942 | ||||||
| 27,407 | |||||||||
| Data Processor | |||||||||
| MasterCard, Inc. — Class A | |||||||||
| MA 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 10 | 865 | ||||||
| MA 160115P00056000 | Expiration: January 2016, Exercise Price: $56.00 | 2 | 183 | ||||||
| MA 160115P00057000 | Expiration: January 2016, Exercise Price: $57.00 | 2 | 200 | ||||||
| MA 160115P00058000 | Expiration: January 2016, Exercise Price: $58.00 | 3 | 324 | ||||||
| MA 160115P00059000 | Expiration: January 2016, Exercise Price: $59.00 | 3 | 354 | ||||||
| MA 160115P00062000 | Expiration: January 2016, Exercise Price: $62.00 | 10 | 1,545 | ||||||
| 3,471 | |||||||||
| Diversified Financial Services | |||||||||
| The Goldman Sachs Group, Inc. | |||||||||
| GS 160115P00115000 | Expiration: January 2016, Exercise Price: $115.00 | 3 | 450 | ||||||
| GS 160115P00120000 | Expiration: January 2016, Exercise Price: $120.00 | 1 | 225 | ||||||
| GS 170120P00150000 | Expiration: January 2017, Exercise Price: $150.00 | 2 | 1,720 | ||||||
| JPMorgan Chase & Co. | |||||||||
| JPM 150320P00040000 | Expiration: March 2015, Exercise Price: $40.00 | 3 | 24 | ||||||
| JPM 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 21 | 1,439 | ||||||
| JPM 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 38 | 4,275 | ||||||
| 8,133 | |||||||||
The accompanying notes are an integral part of these financial statements.
160
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| E-Commerce | |||||||||
| Amazon.com, Inc. | |||||||||
| AMZN 150117P00270000 | Expiration: January 2015, Exercise Price: $270.00 | 5 | $ 185 | ||||||
| AMZN 160115P00230000 | Expiration: January 2016, Exercise Price: $230.00 | 1 | 975 | ||||||
| AMZN 160115P00260000 | Expiration: January 2016, Exercise Price: $260.00 | 1 | 1,700 | ||||||
| AMZN 160115P00290000 | Expiration: January 2016, Exercise Price: $290.00 | 1 | 2,782 | ||||||
| AMZN 170120P00240000 | Expiration: January 2017, Exercise Price: $240.00 | 1 | 2,345 | ||||||
| AMZN 170120P00250000 | Expiration: January 2017, Exercise Price: $250.00 | 1 | 2,653 | ||||||
| eBay, Inc. | |||||||||
| EBAY 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 3 | 123 | ||||||
| EBAY 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 2 | 500 | ||||||
| EBAY 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 37 | 3,330 | ||||||
| EBAY 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 9 | 1,408 | ||||||
| EBAY 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 18 | 3,078 | ||||||
| IAC/InterActiveCorp | |||||||||
| IACI 150117P00045000 | Expiration: January 2015, Exercise Price: $45.00 | 11 | 82 | ||||||
| IACI 150117P00050000 | Expiration: January 2015, Exercise Price: $50.00 | 18 | 135 | ||||||
| IACI 150117P00055000 | Expiration: January 2015, Exercise Price: $55.00 | 2 | 30 | ||||||
| IACI 150417P00050000 | Expiration: April 2015, Exercise Price: $50.00 | 7 | 490 | ||||||
| Liberty Interactive Corporation — Class A | |||||||||
| QVCA1 150117P00017000 | Expiration: January 2015, Exercise Price: $17.00 | 5 | 113 | ||||||
| QVCA1 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 30 | 675 | ||||||
| 20,604 | |||||||||
| Electrical Equipment, Appliance, and | |||||||||
| Component Manufacturing | |||||||||
| Corning Inc. | |||||||||
| GLW 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 13 | 422 | ||||||
| GLW 170120P00015000 | Expiration: January 2017, Exercise Price: $15.00 | 23 | 1,829 | ||||||
| Emerson Electric Co. | |||||||||
| EMR 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 2 | 255 | ||||||
| EMR 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 11 | 2,283 | ||||||
| EMR 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 5 | 1,650 | ||||||
| Whirlpool Corporation | |||||||||
| WHR 160115P00130000 | Expiration: January 2016, Exercise Price: $130.00 | 2 | 491 | ||||||
| 6,930 | |||||||||
| Electronics and Appliance Stores | |||||||||
| Best Buy Co., Inc. | |||||||||
| BBY 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 16 | 1,416 | ||||||
| BBY 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 6 | 711 | ||||||
| 2,127 | |||||||||
The accompanying notes are an integral part of these financial statements.
161
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Fabricated Metal Product Manufacturing | |||||||||
| Danaher Corporation | |||||||||
| DHR 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 3 | $ | 307 | |||||
| DHR 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 28 | 4,130 | ||||||
| DHR 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 5 | 1,063 | ||||||
| 5,500 | |||||||||
| Food and Beverage Stores | |||||||||
| The Kroger Co. | |||||||||
| KR 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 3 | 345 | ||||||
| Whole Foods Market, Inc. | |||||||||
| WFM 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 8 | 684 | ||||||
| WFM 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 25 | 1,675 | ||||||
| WFM 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 6 | 732 | ||||||
| 3,436 | |||||||||
| Food Manufacturing | |||||||||
| Archer-Daniels-Midland Company | |||||||||
| ADM 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 39 | 1,423 | ||||||
| ADM 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 27 | 1,431 | ||||||
| ADM 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 8 | 548 | ||||||
| ADM 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 3 | 310 | ||||||
| ADM 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 17 | 2,287 | ||||||
| Bunge Limited | |||||||||
| BG 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 72 | ||||||
| BG 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 10 | 1,150 | ||||||
| ConAgra Foods, Inc. | |||||||||
| CAG 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 8 | 420 | ||||||
| Mead Johnson Nutrition Company | |||||||||
| MJN 150117P00060000 | Expiration: January 2015, Exercise Price: $60.00 | 10 | 200 | ||||||
| MJN 150117P00065000 | Expiration: January 2015, Exercise Price: $65.00 | 1 | 20 | ||||||
| MJN 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 245 | ||||||
| Mondelez International Inc. — Class A | |||||||||
| MDLZ 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 11 | 1,139 | ||||||
| MDLZ 160115P00032000 | Expiration: January 2016, Exercise Price: $32.00 | 8 | 1,212 | ||||||
| Post Holdings Inc. | |||||||||
| POST 150320P00030000 | Expiration: March 2015, Exercise Price: $30.00 | 32 | 880 | ||||||
The accompanying notes are an integral part of these financial statements.
162
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Food Manufacturing — (Continued) | |||||||||
| Tyson Foods, Inc. — Class A | |||||||||
| TSN 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 8 | $ | 480 | |||||
| TSN 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 5 | 500 | ||||||
| TSN 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 14 | 1,890 | ||||||
| TSN 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 55 | 11,825 | ||||||
| TSN 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 34 | 9,095 | ||||||
| 35,127 | |||||||||
| Food Services and Drinking Places | |||||||||
| Starbucks Corporation | |||||||||
| SBUX 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 5 | 237 | ||||||
| SBUX 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 19 | 1,406 | ||||||
| SBUX 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 11 | 1,331 | ||||||
| SBUX 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 3 | 632 | ||||||
| SBUX 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 5 | 1,498 | ||||||
| Yum! Brands, Inc. | |||||||||
| YUM 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 12 | 1,806 | ||||||
| 6,910 | |||||||||
| Funds, Trusts, and Other Financial Vehicles | |||||||||
| CBRE Group, Inc. — Class A | |||||||||
| CBG 150320P00027000 | Expiration: March 2015, Exercise Price: $27.00 | 5 | 62 | ||||||
| iShares MSCI Emerging Markets ETF | |||||||||
| EEM 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 6 | 471 | ||||||
| EEM 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 10 | 1,055 | ||||||
| EEM 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 10 | 1,645 | ||||||
| Market Vectors Gold Miners ETF | |||||||||
| GDX 150619P00013000 | Expiration: June 2015, Exercise Price: $13.00 | 10 | 410 | ||||||
| GDX 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 21 | 3,381 | ||||||
| GDX 160115P00016000 | Expiration: January 2016, Exercise Price: $16.00 | 15 | 2,910 | ||||||
| 9,934 | |||||||||
| Furniture and Home Furnishings Stores | |||||||||
| Bed Bath & Beyond Inc. | |||||||||
| BBBY 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 10 | 680 | ||||||
The accompanying notes are an integral part of these financial statements.
163
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Gaming | |||||||||
| Las Vegas Sands Corp. | |||||||||
| LVS 150117P00047250 | Expiration: January 2015, Exercise Price: $47.25 | 1 | $ | 7 | |||||
| LVS 150117P00050000 | Expiration: January 2015, Exercise Price: $50.00 | 4 | 50 | ||||||
| LVS 150117P00052250 | Expiration: January 2015, Exercise Price: $52.25 | 9 | 171 | ||||||
| LVS 150117P00055000 | Expiration: January 2015, Exercise Price: $55.00 | 2 | 94 | ||||||
| LVS 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 20 | 5,640 | ||||||
| LVS 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 8 | 3,500 | ||||||
| LVS 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 18 | 11,610 | ||||||
| Wynn Resorts Limited | |||||||||
| WYNN 160115P00110000 | Expiration: January 2016, Exercise Price: $110.00 | 7 | 4,480 | ||||||
| WYNN 160115P00119000 | Expiration: January 2016, Exercise Price: $119.00 | 1 | 880 | ||||||
| WYNN 160115P00134000 | Expiration: January 2016, Exercise Price: $134.00 | 1 | 1,420 | ||||||
| WYNN 160115P00136000 | Expiration: January 2016, Exercise Price: $136.00 | 2 | 3,020 | ||||||
| WYNN 160115P00139000 | Expiration: January 2016, Exercise Price: $139.00 | 4 | 6,570 | ||||||
| WYNN 160115P00146000 | Expiration: January 2016, Exercise Price: $146.00 | 1 | 1,988 | ||||||
| WYNN 170120P00130000 | Expiration: January 2017, Exercise Price: $130.00 | 4 | 7,810 | ||||||
| 47,240 | |||||||||
| General Merchandise Stores | |||||||||
| Costco Wholesale Corporation | |||||||||
| COST 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 8 | 704 | ||||||
| COST 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 1 | 105 | ||||||
| Macy’s, Inc. | |||||||||
| M 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 2 | 111 | ||||||
| M 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 19 | 1,301 | ||||||
| M 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 5 | 578 | ||||||
| M 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 3 | 504 | ||||||
| M 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 23 | 4,761 | ||||||
| M 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 4 | 1,004 | ||||||
| Sears Holdings Corporation | |||||||||
| SHLD1 150117P00030000 | Expiration: January 2015, Exercise Price: $30.00 | 8 | 32 | ||||||
| SHLD 150320P00020000 | Expiration: March 2015, Exercise Price: $20.00 | 15 | 2,100 | ||||||
| SHLD 150320P00025000 | Expiration: March 2015, Exercise Price: $25.00 | 3 | 648 | ||||||
| SHLD 150619P00020000 | Expiration: June 2015, Exercise Price: $20.00 | 12 | 2,808 | ||||||
| SHLD 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 8 | 3,320 | ||||||
| Target Corporation | |||||||||
| TGT 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 4 | 296 | ||||||
| TGT 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 19 | 3,316 | ||||||
The accompanying notes are an integral part of these financial statements.
164
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| General Merchandise Stores — (Continued) | |||||||||
| Wal-Mart Stores, Inc. | |||||||||
| WMT 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 4 | $ | 434 | |||||
| 22,022 | |||||||||
| Health and Personal Care Stores | |||||||||
| CVS Caremark Corporation | |||||||||
| CVS 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 17 | 884 | ||||||
| CVS 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 148 | ||||||
| CVS 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 3 | 587 | ||||||
| CVS 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 8 | 2,168 | ||||||
| Walgreens Boots Alliance, Inc. | |||||||||
| WBA 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 7 | 612 | ||||||
| WBA 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 8 | 348 | ||||||
| WBA 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 5 | 288 | ||||||
| WBA 170120P00047500 | Expiration: January 2017, Exercise Price: $47.50 | 8 | 1,420 | ||||||
| WBA 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 5 | 1,050 | ||||||
| 7,505 | |||||||||
| Heavy and Civil Engineering Construction | |||||||||
| Chicago Bridge & Iron Company N.V. | |||||||||
| CBI 160115P00032500 | Expiration: January 2016, Exercise Price: $32.50 | 7 | 1,750 | ||||||
| CBI 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 3 | 990 | ||||||
| CBI 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 8 | 4,120 | ||||||
| CBI 170120P00037500 | Expiration: January 2017, Exercise Price: $37.50 | 19 | 11,875 | ||||||
| CBI 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 8 | 5,920 | ||||||
| CBI 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 9 | 7,830 | ||||||
| 32,485 | |||||||||
| Holding Company | |||||||||
| Icahn Enterprises LP | |||||||||
| IEP 150320P00080000 | Expiration: March 2015, Exercise Price: $80.00 | 9 | 1,193 | ||||||
| Leucadia National Corporation | |||||||||
| LUK2 150117P00015000 | Expiration: January 2015, Exercise Price: $15.00 | 33 | 495 | ||||||
| 1,688 | |||||||||
The accompanying notes are an integral part of these financial statements.
165
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Insurance Carriers and Related Activities | |||||||||
| Aetna Inc. | |||||||||
| AET 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 12 | $ | 828 | |||||
| AET 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 100 | ||||||
| AET 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 5 | 707 | ||||||
| AET 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 406 | ||||||
| AET 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 10 | 2,850 | ||||||
| Aflac, Inc. | |||||||||
| AFL 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 2 | 314 | ||||||
| AFL 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 7 | 1,179 | ||||||
| AFL 170120P00047500 | Expiration: January 2017, Exercise Price: $47.50 | 4 | 928 | ||||||
| American International Group, Inc. | |||||||||
| AIG 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 14 | 567 | ||||||
| AIG 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 15 | 810 | ||||||
| AIG 170120P00038000 | Expiration: January 2017, Exercise Price: $38.00 | 5 | 650 | ||||||
| AIG 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 16 | 2,696 | ||||||
| Anthem Inc. | |||||||||
| ANTM 150320P00085000 | Expiration: March 2015, Exercise Price: $85.00 | 5 | 252 | ||||||
| ANTM 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 5 | 460 | ||||||
| ANTM 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 2 | 214 | ||||||
| ANTM 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 15 | 1,867 | ||||||
| ANTM 160115P00082500 | Expiration: January 2016, Exercise Price: $82.50 | 5 | 868 | ||||||
| ANTM 160115P00087500 | Expiration: January 2016, Exercise Price: $87.50 | 1 | 219 | ||||||
| ANTM 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 2 | 560 | ||||||
| ANTM 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 2 | 655 | ||||||
| ANTM 160115P00100000 | Expiration: January 2016, Exercise Price: $100.00 | 1 | 413 | ||||||
| Humana Inc. | |||||||||
| HUM 150220P00095000 | Expiration: February 2015, Exercise Price: $95.00 | 2 | 30 | ||||||
| HUM 160115P00087500 | Expiration: January 2016, Exercise Price: $87.50 | 2 | 355 | ||||||
| HUM 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 2 | 400 | ||||||
| HUM 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 4 | 910 | ||||||
| HUM 160115P00097500 | Expiration: January 2016, Exercise Price: $97.50 | 2 | 535 | ||||||
| HUM 160115P00100000 | Expiration: January 2016, Exercise Price: $100.00 | 1 | 260 | ||||||
| HUM 170120P00095000 | Expiration: January 2017, Exercise Price: $95.00 | 8 | 3,400 | ||||||
| HUM 170120P00105000 | Expiration: January 2017, Exercise Price: $105.00 | 2 | 1,260 | ||||||
| Lincoln National Corporation | |||||||||
| LNC 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 31 | 2,883 | ||||||
| LNC 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 5 | 562 | ||||||
The accompanying notes are an integral part of these financial statements.
166
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Insurance Carriers and Related | |||||||||
| Activities — (Continued) | |||||||||
| MetLife, Inc. | |||||||||
| MET 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 8 | $ | 468 | |||||
| MET 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 27 | 2,444 | ||||||
| MET 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 19 | 2,356 | ||||||
| Prudential Financial, Inc. | |||||||||
| PRU 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 1 | 135 | ||||||
| PRU 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 30 | 6,015 | ||||||
| UnitedHealth Group Inc. | |||||||||
| UNH 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 4 | 680 | ||||||
| 40,236 | |||||||||
| Leather and Allied Product Manufacturing | |||||||||
| Coach, Inc. | |||||||||
| COH 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 72 | 5,940 | ||||||
| COH 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 5 | 700 | ||||||
| COH 170120P00025000 | Expiration: January 2017, Exercise Price: $25.00 | 46 | 8,855 | ||||||
| COH 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 6 | 1,665 | ||||||
| NIKE, Inc. — Class B | |||||||||
| NKE 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 4 | 312 | ||||||
| NKE 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 12 | 3,852 | ||||||
| NKE 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 5 | 2,100 | ||||||
| 23,424 | |||||||||
| Machinery Manufacturing | |||||||||
| Baker Hughes Inc. | |||||||||
| BHI 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 8 | 3,660 | ||||||
| BHI 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 4 | 2,190 | ||||||
| BHI 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 8 | 2,468 | ||||||
| Cameron International Corporation | |||||||||
| CAM 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 8 | 2,180 | ||||||
| CAM 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 4 | 2,560 | ||||||
The accompanying notes are an integral part of these financial statements.
167
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Machinery Manufacturing — (Continued) | |||||||||
| Caterpillar Inc. | |||||||||
| CAT 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 1 | $ | 118 | |||||
| CAT 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 8 | 1,364 | ||||||
| CAT 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 5 | 1,232 | ||||||
| CAT 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 2 | 705 | ||||||
| CAT 160115P00077500 | Expiration: January 2016, Exercise Price: $77.50 | 3 | 1,253 | ||||||
| CAT 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 2 | 985 | ||||||
| CAT 160115P00082500 | Expiration: January 2016, Exercise Price: $82.50 | 1 | 580 | ||||||
| CAT 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 12 | 6,000 | ||||||
| CAT 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 18 | 11,655 | ||||||
| Cummins Inc. | |||||||||
| CMI 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 1 | 165 | ||||||
| CMI 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 4 | 840 | ||||||
| CMI 160115P00100000 | Expiration: January 2016, Exercise Price: $100.00 | 3 | 803 | ||||||
| CMI 160115P00105000 | Expiration: January 2016, Exercise Price: $105.00 | 12 | 4,140 | ||||||
| CMI 160115P00110000 | Expiration: January 2016, Exercise Price: $110.00 | 6 | 2,550 | ||||||
| CMI 160115P00115000 | Expiration: January 2016, Exercise Price: $115.00 | 1 | 525 | ||||||
| Deere & Company | |||||||||
| DE 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 4 | 322 | ||||||
| Eaton Corporation plc | |||||||||
| ETN 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 17 | 2,720 | ||||||
| ETN 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 12 | 3,150 | ||||||
| ETN 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 8 | 2,600 | ||||||
| ETN 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 10 | 2,450 | ||||||
| General Electric Company | |||||||||
| GE 150320P00021000 | Expiration: March 2015, Exercise Price: $21.00 | 4 | 40 | ||||||
| GE 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 15 | 600 | ||||||
| GE 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 34 | 2,057 | ||||||
| Ingersoll-Rand plc | |||||||||
| IR 150320P00047500 | Expiration: March 2015, Exercise Price: $47.50 | 4 | 70 | ||||||
| IR 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 3 | 210 | ||||||
| IR 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 29 | 3,625 | ||||||
| IR 160115P00047500 | Expiration: January 2016, Exercise Price: $47.50 | 2 | 325 | ||||||
The accompanying notes are an integral part of these financial statements.
168
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Machinery Manufacturing — (Continued) | |||||||||
| National Oilwell Varco, Inc. | |||||||||
| NOV1150117P00057500 | Expiration: January 2015, Exercise Price: $57.50 | 4 | $ | 108 | |||||
| NOV1160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 10 | 3,250 | ||||||
| NOV 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 3 | 1,305 | ||||||
| NOV 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 4 | 2,460 | ||||||
| NOV1 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 8 | 3,740 | ||||||
| NOV 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 7 | 5,950 | ||||||
| NOV 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 10 | 5,200 | ||||||
| NOV 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 3 | 2,100 | ||||||
| 88,255 | |||||||||
| Media | |||||||||
| Time Warner, Inc. | |||||||||
| TWX 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 2 | 216 | ||||||
| Viacom Inc. — Class B | |||||||||
| VIAB 150117P00060000 | Expiration: January 2015, Exercise Price: $60.00 | 8 | 60 | ||||||
| VIAB 150117P00062500 | Expiration: January 2015, Exercise Price: $62.50 | 1 | 8 | ||||||
| VIAB 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 25 | 6,000 | ||||||
| VIAB 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 730 | ||||||
| 7,014 | |||||||||
| Merchant Wholesalers, Nondurable Goods | |||||||||
| Cardinal Health, Inc. | |||||||||
| CAH 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 6 | 300 | ||||||
| CAH 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 12 | 870 | ||||||
| CAH 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 17 | 1,445 | ||||||
| CAH 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 10 | 1,075 | ||||||
| Express Scripts Holding Company | |||||||||
| ESRX 160115P00047500 | Expiration: January 2016, Exercise Price: $47.50 | 2 | 123 | ||||||
| ESRX 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 13 | 955 | ||||||
| ESRX 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 6 | 630 | ||||||
| ESRX 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 4 | 492 | ||||||
| ESRX 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 4 | 1,130 | ||||||
| McKesson Corp. | |||||||||
| MCK 160115P00125000 | Expiration: January 2016, Exercise Price: $125.00 | 1 | 135 | ||||||
| MCK 160115P00130000 | Expiration: January 2016, Exercise Price: $130.00 | 4 | 630 | ||||||
| MCK 160115P00150000 | Expiration: January 2016, Exercise Price: $150.00 | 1 | 302 | ||||||
The accompanying notes are an integral part of these financial statements.
169
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Merchant Wholesalers, Nondurable | |||||||||
| Goods — (Continued) | |||||||||
| Ralph Lauren Corporation | |||||||||
| RL 160115P00110000 | Expiration: January 2016, Exercise Price: $110.00 | 1 | $ | 85 | |||||
| RL 160115P00115000 | Expiration: January 2016, Exercise Price: $115.00 | 5 | 612 | ||||||
| RL 160115P00120000 | Expiration: January 2016, Exercise Price: $120.00 | 1 | 153 | ||||||
| RL 160115P00125000 | Expiration: January 2016, Exercise Price: $125.00 | 1 | 188 | ||||||
| RL 160115P00130000 | Expiration: January 2016, Exercise Price: $130.00 | 1 | 240 | ||||||
| 9,365 | |||||||||
| Mining (except Oil and Gas) | |||||||||
| BHP Billiton Limited — ADR | |||||||||
| BHP 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 4 | 2,150 | ||||||
| BHP 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 21 | 14,437 | ||||||
| BHP 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 4 | 3,270 | ||||||
| Franco-Nevada Corporation | |||||||||
| FNV 150417P00035000 | Expiration: April 2015, Exercise Price: $35.00 | 17 | 1,020 | ||||||
| FNV 150417P00040000 | Expiration: April 2015, Exercise Price: $40.00 | 10 | 1,275 | ||||||
| Freeport-McMoRan Copper & Gold Inc. | |||||||||
| FCX 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 5 | 1,185 | ||||||
| FCX 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 21 | 8,085 | ||||||
| FCX 170120P00020000 | Expiration: January 2017, Exercise Price: $20.00 | 14 | 5,215 | ||||||
| FCX 170120P00023000 | Expiration: January 2017, Exercise Price: $23.00 | 16 | 8,440 | ||||||
| Newmont Mining Corporation | |||||||||
| NEM 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 29 | 2,015 | ||||||
| NEM 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 29 | 3,524 | ||||||
| NEM 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 18 | 4,347 | ||||||
| Rio Tinto plc — ADR | |||||||||
| RIO 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 3 | 37 | ||||||
| RIO 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 9 | 2,498 | ||||||
| RIO 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 41 | 15,170 | ||||||
| RIO 160115P00042500 | Expiration: January 2016, Exercise Price: $42.50 | 2 | 940 | ||||||
| RIO 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 19 | 7,885 | ||||||
| RIO 170120P00037500 | Expiration: January 2017, Exercise Price: $37.50 | 11 | 5,610 | ||||||
| 87,103 | |||||||||
The accompanying notes are an integral part of these financial statements.
170
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Miscellaneous Manufacturing | |||||||||
| 3M Co. | |||||||||
| MMM 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 7 | $ | 714 | |||||
| MMM 160115P00110000 | Expiration: January 2016, Exercise Price: $110.00 | 1 | 166 | ||||||
| MMM 170120P00110000 | Expiration: January 2017, Exercise Price: $110.00 | 1 | 400 | ||||||
| MMM 170120P00115000 | Expiration: January 2017, Exercise Price: $115.00 | 1 | 472 | ||||||
| MMM 170120P00125000 | Expiration: January 2017, Exercise Price: $125.00 | 2 | 1,215 | ||||||
| Hasbro, Inc. | |||||||||
| HAS 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 2 | 135 | ||||||
| HAS 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 12 | 1,200 | ||||||
| HAS 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 7 | 1,522 | ||||||
| HAS 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 3 | 908 | ||||||
| Intuitive Surgical, Inc. | |||||||||
| ISRG 150117P00320000 | Expiration: January 2015, Exercise Price: $320.00 | 1 | 75 | ||||||
| ISRG 150417P00355000 | Expiration: April 2015, Exercise Price: $355.00 | 1 | 122 | ||||||
| ISRG 160115P00280000 | Expiration: January 2016, Exercise Price: $280.00 | 1 | 385 | ||||||
| ISRG 160115P00350000 | Expiration: January 2016, Exercise Price: $350.00 | 2 | 1,710 | ||||||
| ISRG 170120P00340000 | Expiration: January 2017, Exercise Price: $340.00 | 1 | 1,740 | ||||||
| ISRG 170120P00370000 | Expiration: January 2017, Exercise Price: $370.00 | 2 | 4,740 | ||||||
| ISRG 170120P00390000 | Expiration: January 2017, Exercise Price: $390.00 | 1 | 2,795 | ||||||
| Mattel, Inc. | |||||||||
| MAT 170120P00023000 | Expiration: January 2017, Exercise Price: $23.00 | 51 | 10,583 | ||||||
| Stryker Corporation | |||||||||
| SYK 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 55 | ||||||
| SYK 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 2 | 120 | ||||||
| SYK 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 3 | 593 | ||||||
| 29,650 | |||||||||
| Motion Picture and Sound Recording Industries | |||||||||
| DreamWorks Animation SKG, Inc. — Class A | |||||||||
| DWA 150320P00016000 | Expiration: March 2015, Exercise Price: $16.00 | 7 | 193 | ||||||
| DWA 150320P00017000 | Expiration: March 2015, Exercise Price: $17.00 | 12 | 510 | ||||||
| DWA 150619P00016000 | Expiration: June 2015, Exercise Price: $16.00 | 36 | 2,520 | ||||||
| 3,223 | |||||||||
The accompanying notes are an integral part of these financial statements.
171
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Motor Vehicle and Parts Dealers | |||||||||
| CarMax, Inc. | |||||||||
| KMX 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 3 | $ | 75 | |||||
| KMX 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 43 | 1,935 | ||||||
| KMX 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 12 | 750 | ||||||
| KMX 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 5 | 425 | ||||||
| KMX 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 3 | 307 | ||||||
| KMX 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 6 | 735 | ||||||
| KMX 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 10 | 1,900 | ||||||
| 6,127 | |||||||||
| Nonmetallic Mineral Product Manufacturing | |||||||||
| USG Corporation | |||||||||
| USG 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 62 | 5,735 | ||||||
| USG 170120P00018000 | Expiration: January 2017, Exercise Price: $18.00 | 13 | 2,047 | ||||||
| USG 170120P00020000 | Expiration: January 2017, Exercise Price: $20.00 | 9 | 1,823 | ||||||
| 9,605 | |||||||||
| Non-Store Retailers | |||||||||
| Sotheby’s | |||||||||
| BID 150117P00032000 | Expiration: January 2015, Exercise Price: $32.00 | 5 | 38 | ||||||
| BID 150117P00035000 | Expiration: January 2015, Exercise Price: $35.00 | 6 | 30 | ||||||
| BID1 150117P00037000 | Expiration: January 2015, Exercise Price: $37.00 | 10 | 150 | ||||||
| BID 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 8 | 680 | ||||||
| BID 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 16 | 2,240 | ||||||
| BID1 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 2 | 490 | ||||||
| BID 170120P00025000 | Expiration: January 2017, Exercise Price: $25.00 | 8 | 1,800 | ||||||
| BID 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 12 | 3,180 | ||||||
| BID 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 6 | 1,575 | ||||||
| 10,183 | |||||||||
| Oil and Gas Extraction | |||||||||
| Anadarko Petroleum Corporation | |||||||||
| APC 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 5 | 1,210 | ||||||
| APC 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 3 | 1,020 | ||||||
| APC 160115P00072500 | Expiration: January 2016, Exercise Price: $72.50 | 1 | 732 | ||||||
| APC 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 1 | 838 | ||||||
| APC 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 2 | 985 | ||||||
| APC 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 6 | 4,365 | ||||||
| APC 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 3 | 2,505 | ||||||
The accompanying notes are an integral part of these financial statements.
172
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Oil and Gas Extraction — (Continued) | |||||||||
| Apache Corporation | |||||||||
| APA 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 7 | $ | 5,215 | |||||
| APA 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 1 | 617 | ||||||
| APA 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 5 | 3,850 | ||||||
| Canadian Natural Resources Limited | |||||||||
| CNQ 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 16 | 3,920 | ||||||
| CNQ 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 8 | 3,720 | ||||||
| Chesapeake Energy Corporation | |||||||||
| CHK1 150117P00018000 | Expiration: January 2015, Exercise Price: $18.00 | 63 | 1,732 | ||||||
| CHK 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 5 | 790 | ||||||
| CHK1 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 5 | 1,388 | ||||||
| CHK 170120P00015000 | Expiration: January 2017, Exercise Price: $15.00 | 68 | 16,762 | ||||||
| Continental Resources, Inc. | |||||||||
| CLR 160115P00032500 | Expiration: January 2016, Exercise Price: $32.50 | 32 | 18,560 | ||||||
| Devon Energy Corporation | |||||||||
| DVN 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 6 | 2,535 | ||||||
| Encana Corporation | |||||||||
| ECA 170120P00013000 | Expiration: January 2017, Exercise Price: $13.00 | 15 | 3,675 | ||||||
| EOG Resources, Inc. | |||||||||
| EOG 150117P00075000 | Expiration: January 2015, Exercise Price: $75.00 | 2 | 30 | ||||||
| EOG 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 2 | 455 | ||||||
| EOG 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 621 | ||||||
| EOG 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 14 | 5,040 | ||||||
| EOG 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 2 | 835 | ||||||
| EOG 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 4 | 2,210 | ||||||
| EOG 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 3 | 2,152 | ||||||
| EOG 160115P00082500 | Expiration: January 2016, Exercise Price: $82.50 | 1 | 813 | ||||||
| EOG 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 4 | 3,660 | ||||||
| EOG 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 5 | 2,875 | ||||||
| EOG 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 7 | 5,075 | ||||||
| Marathon Oil Corporation | |||||||||
| MRO 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 19 | 4,968 | ||||||
| MRO 170120P00025000 | Expiration: January 2017, Exercise Price: $25.00 | 18 | 6,975 | ||||||
| MRO 170120P00028000 | Expiration: January 2017, Exercise Price: $28.00 | 5 | 2,675 | ||||||
| Occidental Petroleum Corporation | |||||||||
| OXY1 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 768 | ||||||
| OXY1 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 11 | 5,693 | ||||||
| OXY1 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 2 | 1,145 | ||||||
The accompanying notes are an integral part of these financial statements.
173
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Oil and Gas Extraction — (Continued) | |||||||||
| Pioneer Natural Resources Company | |||||||||
| PXD 160115P00115000 | Expiration: January 2016, Exercise Price: $115.00 | 8 | $ | 8,720 | |||||
| PXD 160115P00135000 | Expiration: January 2016, Exercise Price: $135.00 | 1 | 1,845 | ||||||
| 130,974 | |||||||||
| Other Exchanges | |||||||||
| CBOE Holdings Inc. | |||||||||
| CBOE 160115P00034500 | Expiration: January 2016, Exercise Price: $34.50 | 10 | 350 | ||||||
| CBOE 160115P00039500 | Expiration: January 2016, Exercise Price: $39.50 | 2 | 120 | ||||||
| CBOE 160115P00049500 | Expiration: January 2016, Exercise Price: $49.50 | 5 | 837 | ||||||
| S&P 500 Index | |||||||||
| SPX 150117P01930000 | Expiration: January 2015, Exercise Price: $1,930.00 | 5 | 2,550 | ||||||
| SPX 150117P01935000 | Expiration: January 2015, Exercise Price: $1,935.00 | 4 | 2,080 | ||||||
| SPXW 150109P01950000 | Expiration: January 2015, Exercise Price: $1,950.00 | 5 | 1,675 | ||||||
| SPXW 150109P01985000 | Expiration: January 2015, Exercise Price: $1,985.00 | 6 | 3,300 | ||||||
| SPXW 150109P01990000 | Expiration: January 2015, Exercise Price: $1,990.00 | 2 | 1,170 | ||||||
| SPXW 150109P01995000 | Expiration: January 2015, Exercise Price: $1,995.00 | 1 | 645 | ||||||
| SPX 150117P02000000 | Expiration: January 2015, Exercise Price: $2,000.00 | 1 | 1,130 | ||||||
| SPXW 150130P02025000 | Expiration: January 2015, Exercise Price: $2,025.00 | 5 | 12,750 | ||||||
| SPXW 150123P02040000 | Expiration: January 2015, Exercise Price: $2,040.00 | 4 | 9,760 | ||||||
| 36,367 | |||||||||
| Other Information Services | |||||||||
| Google Inc. — Class A | |||||||||
| GOLG8 150117P00850000 | Expiration: January 2015, Exercise Price: $850.00e | 1 | 24 | ||||||
| GOLG1 150117P00950000 | Expiration: January 2015, Exercise Price: $950.00 | 1 | 118 | ||||||
| GOLG1 160115P00830000 | Expiration: January 2016, Exercise Price: $830.00 | 1 | 2,560 | ||||||
| GOLG8 160115P00900000 | Expiration: January 2016, Exercise Price: $900.00e | 1 | 391 | ||||||
| GOOGL 160617P00405000 | Expiration: June 2016, Exercise Price: $405.00 | 1 | 1,575 | ||||||
| GOOGL 160617P00410000 | Expiration: June 2016, Exercise Price: $410.00 | 1 | 1,670 | ||||||
| GOOGL 160617P00420000 | Expiration: June 2016, Exercise Price: $420.00 | 2 | 3,790 | ||||||
| GOOGL 160617P00450000 | Expiration: June 2016, Exercise Price: $450.00 | 1 | 2,660 | ||||||
| 12,788 | |||||||||
| Paper Manufacturing | |||||||||
| Kimberly-Clark Corporation | |||||||||
| KMB1 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 2 | 140 | ||||||
The accompanying notes are an integral part of these financial statements.
174
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Performing Arts, Spectator Sports, and Related Industries | |||||||||
| Live Nation Entertainment, Inc. | |||||||||
| LYV 150117P00016000 | Expiration: January 2015, Exercise Price: $16.00 | 9 | $ | 45 | |||||
| LYV 150117P00017000 | Expiration: January 2015, Exercise Price: $17.00 | 10 | 50 | ||||||
| LYV 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 48 | 3,360 | ||||||
| LYV 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 8 | 340 | ||||||
| LYV 160115P00017000 | Expiration: January 2016, Exercise Price: $17.00 | 32 | 2,560 | ||||||
| 6,355 | |||||||||
| Petroleum and Coal Products Manufacturing | |||||||||
| Chevron Corporation | |||||||||
| CVX 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 2 | 514 | ||||||
| CVX 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 2 | 670 | ||||||
| ConocoPhillips | |||||||||
| COP 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 10 | 1,855 | ||||||
| COP 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 4 | 2,500 | ||||||
| COP 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 12 | 4,200 | ||||||
| COP 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 10 | 4,950 | ||||||
| Exxon Mobil Corporation | |||||||||
| XOM 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 3 | 1,545 | ||||||
| Hess Corporation | |||||||||
| HES 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 4 | 1,068 | ||||||
| HES 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 26 | 9,360 | ||||||
| HES 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 3 | 2,370 | ||||||
| Marathon Petroleum Corporation | |||||||||
| MPC 150117P00067500 | Expiration: January 2015, Exercise Price: $67.50 | 2 | 30 | ||||||
| MPC 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 6 | 1,005 | ||||||
| MPC 160115P00062500 | Expiration: January 2016, Exercise Price: $62.50 | 2 | 485 | ||||||
| MPC 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 7 | 2,100 | ||||||
| MPC 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 8 | 2,720 | ||||||
| MPC 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 1 | 415 | ||||||
| MPC 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 9 | 5,220 | ||||||
| Phillips 66 | |||||||||
| PSX 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 15 | 4,050 | ||||||
| PSX 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 4 | 1,380 | ||||||
| PSX 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 14 | 5,880 | ||||||
| PSX 160115P00062500 | Expiration: January 2016, Exercise Price: $62.50 | 3 | 1,500 | ||||||
| PSX 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 2 | 1,200 | ||||||
| PSX 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 14 | 6,580 | ||||||
| PSX 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 3 | 2,010 | ||||||
The accompanying notes are an integral part of these financial statements.
175
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Petroleum and Coal Products Manufacturing — (Continued) | |||||||||
| Valero Energy Corporation | |||||||||
| VLO 150117P00042000 | Expiration: January 2015, Exercise Price: $42.00 | 4 | $ | 26 | |||||
| VLO 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 6 | 537 | ||||||
| VLO 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 34 | 4,233 | ||||||
| VLO 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 17 | 3,221 | ||||||
| VLO 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 6 | 1,449 | ||||||
| 73,073 | |||||||||
| Pharmaceutical and Biotechnology | |||||||||
| AbbVie Inc. | |||||||||
| ABBV 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 26 | 1,495 | ||||||
| ABBV 160115P00037500 | Expiration: January 2016, Exercise Price: $37.50 | 21 | 1,680 | ||||||
| ABBV 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 11 | 1,045 | ||||||
| ABBV 160115P00042500 | Expiration: January 2016, Exercise Price: $42.50 | 6 | 615 | ||||||
| ABBV 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 10 | 3,125 | ||||||
| ABBV 170120P00047500 | Expiration: January 2017, Exercise Price: $47.50 | 8 | 2,780 | ||||||
| Allergan, Inc. | |||||||||
| AGN 160115P00120000 | Expiration: January 2016, Exercise Price: $120.00 | 8 | 800 | ||||||
| AGN 160115P00135000 | Expiration: January 2016, Exercise Price: $135.00 | 1 | 160 | ||||||
| AGN 170120P00140000 | Expiration: January 2017, Exercise Price: $140.00 | 1 | 275 | ||||||
| AGN 170120P00145000 | Expiration: January 2017, Exercise Price: $145.00 | 2 | 860 | ||||||
| Amgen Inc. | |||||||||
| AMGN 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 4 | 758 | ||||||
| AMGN 160115P00100000 | Expiration: January 2016, Exercise Price: $100.00 | 1 | 231 | ||||||
| AMGN 170120P00095000 | Expiration: January 2017, Exercise Price: $95.00 | 1 | 485 | ||||||
| AMGN 170120P00100000 | Expiration: January 2017, Exercise Price: $100.00 | 2 | 1,125 | ||||||
| AMGN 170120P00105000 | Expiration: January 2017, Exercise Price: $105.00 | 1 | 667 | ||||||
| AMGN 170120P00110000 | Expiration: January 2017, Exercise Price: $110.00 | 2 | 1,565 | ||||||
| AMGN 170120P00115000 | Expiration: January 2017, Exercise Price: $115.00 | 2 | 1,810 | ||||||
| AMGN 170120P00120000 | Expiration: January 2017, Exercise Price: $120.00 | 5 | 5,288 | ||||||
| Biogen Idec, Inc. | |||||||||
| BIIB 150320P00250000 | Expiration: March 2015, Exercise Price: $250.00 | 1 | 187 | ||||||
| BIIB 160115P00210000 | Expiration: January 2016, Exercise Price: $210.00 | 1 | 635 | ||||||
| BIIB 160115P00250000 | Expiration: January 2016, Exercise Price: $250.00 | 3 | 4,140 | ||||||
| BIIB 170120P00230000 | Expiration: January 2017, Exercise Price: $230.00 | 2 | 3,740 | ||||||
| BIIB 170120P00240000 | Expiration: January 2017, Exercise Price: $240.00 | 3 | 6,480 | ||||||
The accompanying notes are an integral part of these financial statements.
176
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Pharmaceutical and Biotechnology — (Continued) | |||||||||
| Bristol-Myers Squibb Company | |||||||||
| BMY 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 18 | $ | 1,080 | |||||
| BMY 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 15 | 1,402 | ||||||
| BMY 160115P00043000 | Expiration: January 2016, Exercise Price: $43.00 | 6 | 768 | ||||||
| BMY 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 4 | 588 | ||||||
| Eli Lilly & Company | |||||||||
| LLY 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 5 | 415 | ||||||
| LLY 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 7 | 2,146 | ||||||
| Gilead Sciences, Inc. | |||||||||
| GILD 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 2 | 308 | ||||||
| GILD 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 2 | 375 | ||||||
| GILD 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 5 | 1,290 | ||||||
| GILD 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 2 | 1,320 | ||||||
| GILD 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 1 | 923 | ||||||
| GILD 170120P00080000 | Expiration: January 2017, Exercise Price: $80.00 | 6 | 6,405 | ||||||
| GILD 170120P00085000 | Expiration: January 2017, Exercise Price: $85.00 | 2 | 2,765 | ||||||
| Merck & Co., Inc. | |||||||||
| MRK 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 8 | 512 | ||||||
| MRK 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 5 | 737 | ||||||
| MRK 160115P00047000 | Expiration: January 2016, Exercise Price: $47.00 | 5 | 930 | ||||||
| MRK 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 3 | 619 | ||||||
| MRK 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 15 | 3,863 | ||||||
| MRK 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 17 | 5,483 | ||||||
| MRK 170120P00047500 | Expiration: January 2017, Exercise Price: $47.50 | 3 | 1,193 | ||||||
| Pfizer, Inc. | |||||||||
| PFE 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 23 | 954 | ||||||
| PFE 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 25 | 1,663 | ||||||
| 75,685 | |||||||||
| Pipeline Transportation | |||||||||
| The Williams Companies, Inc. | |||||||||
| WMB 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 52 | 9,386 | ||||||
| WMB 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 7 | 3,412 | ||||||
| WMB 160115P00042000 | Expiration: January 2016, Exercise Price: $42.00 | 13 | 7,410 | ||||||
| WMB 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 3 | 1,605 | ||||||
| WMB 170120P00038000 | Expiration: January 2017, Exercise Price: $38.00 | 7 | 4,638 | ||||||
| WMB 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 20 | 14,850 | ||||||
| WMB 170120P00043000 | Expiration: January 2017, Exercise Price: $43.00 | 5 | 4,563 | ||||||
| 45,864 | |||||||||
The accompanying notes are an integral part of these financial statements.
177
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Primary Metal Manufacturing | |||||||||
| Nucor Corporation | |||||||||
| NUE 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 5 | $ | 1,975 | |||||
| Professional, Scientific, and Technical Services | |||||||||
| Cerner Corporation | |||||||||
| CERN 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 13 | 845 | ||||||
| CERN 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 13 | 1,397 | ||||||
| Computer Sciences Corporation | |||||||||
| CSC 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 5 | 1,012 | ||||||
| Fluor Corporation | |||||||||
| FLR 150117P00060000 | Expiration: January 2015, Exercise Price: $60.00 | 8 | 920 | ||||||
| FLR 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 9 | 2,588 | ||||||
| FLR 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 3 | 1,350 | ||||||
| FLR 160115P00057500 | Expiration: January 2016, Exercise Price: $57.50 | 10 | 5,550 | ||||||
| FLR 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 9 | 6,075 | ||||||
| FLR 170120P00047500 | Expiration: January 2017, Exercise Price: $47.50 | 9 | 3,825 | ||||||
| FLR 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 11 | 5,555 | ||||||
| The Interpublic Group of Companies, Inc. | |||||||||
| IPG 150117P00008000 | Expiration: January 2015, Exercise Price: $8.00 | 50 | 250 | ||||||
| Leidos Holdings Inc. | |||||||||
| LDOS1 150117P00007000 | Expiration: January 2015, Exercise Price: $7.00 | 50 | 375 | ||||||
| LDOS 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 9 | 248 | ||||||
| LDOS 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 8 | 1,040 | ||||||
| 31,030 | |||||||||
| Publishing Industries (except Internet) | |||||||||
| Autodesk, Inc. | |||||||||
| ADSK 150417P00040000 | Expiration: April 2015, Exercise Price: $40.00 | 3 | 49 | ||||||
| ADSK 160115P00037000 | Expiration: January 2016, Exercise Price: $37.00 | 4 | 358 | ||||||
| ADSK 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 5 | 615 | ||||||
| ADSK 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 17 | 4,454 | ||||||
| ADSK 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 4 | 1,274 | ||||||
| Electronic Arts Inc. | |||||||||
| EA 150320P00028000 | Expiration: March 2015, Exercise Price: $28.00 | 8 | 40 | ||||||
| EA 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 6 | 237 | ||||||
| EA 160115P00027000 | Expiration: January 2016, Exercise Price: $27.00 | 14 | 763 | ||||||
| EA 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 5 | 428 | ||||||
The accompanying notes are an integral part of these financial statements.
178
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Publishing Industries (except Internet) — (Continued) | |||||||||
| Nuance Communications, Inc. | |||||||||
| NUAN 150117P00013000 | Expiration: January 2015, Exercise Price: $13.00 | 27 | $ | 135 | |||||
| NUAN 150117P00014000 | Expiration: January 2015, Exercise Price: $14.00 | 10 | 225 | ||||||
| NUAN 150417P00012000 | Expiration: April 2015, Exercise Price: $12.00 | 12 | 390 | ||||||
| NUAN 160115P00010000 | Expiration: January 2016, Exercise Price: $10.00 | 8 | 380 | ||||||
| 9,348 | |||||||||
| Rail Transportation | |||||||||
| CSX Corporation | |||||||||
| CSX 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 15 | 532 | ||||||
| Norfolk Southern Corporation | |||||||||
| NSC 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 1 | 85 | ||||||
| NSC 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 1 | 213 | ||||||
| 830 | |||||||||
| Real Estate | |||||||||
| TRI Pointe Homes, Inc. | |||||||||
| TPH 170120P00010000 | Expiration: January 2017, Exercise Price: $10.00 | 75 | 5,063 | ||||||
| Satellite Telecommunications | |||||||||
| DIRECTV | |||||||||
| DTV 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 1 | 93 | ||||||
| DISH Network Corp. — Class A | |||||||||
| DISH 150320P00047500 | Expiration: March 2015, Exercise Price: $47.50 | 2 | 35 | ||||||
| DISH 160115P00043000 | Expiration: January 2016, Exercise Price: $43.00 | 3 | 293 | ||||||
| DISH 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 24 | 2,700 | ||||||
| DISH 160115P00047000 | Expiration: January 2016, Exercise Price: $47.00 | 15 | 2,100 | ||||||
| Time Warner Cable Inc. | |||||||||
| TWC 160115P00110000 | Expiration: January 2016, Exercise Price: $110.00 | 5 | 2,125 | ||||||
| TWC 160115P00120000 | Expiration: January 2016, Exercise Price: $120.00 | 1 | 590 | ||||||
| TWC 170120P00105000 | Expiration: January 2017, Exercise Price: $105.00 | 2 | 1,080 | ||||||
| TWC 170120P00110000 | Expiration: January 2017, Exercise Price: $110.00 | 2 | 1,280 | ||||||
| 10,296 | |||||||||
| Securities, Commodity Contracts, and Other Financial | |||||||||
| Investments and Related Activities | |||||||||
| The Charles Schwab Corporation | |||||||||
| SCHW 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 27 | 945 | ||||||
| SCHW 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 46 | 2,415 | ||||||
| SCHW 160115P00022000 | Expiration: January 2016, Exercise Price: $22.00 | 17 | 1,360 | ||||||
The accompanying notes are an integral part of these financial statements.
179
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Securities, Commodity Contracts, and Other Financial | |||||||||
| Investments and Related Activities — (Continued) | |||||||||
| CME Group Inc. | |||||||||
| CME 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 4 | $ | 530 | |||||
| CME 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 10 | 1,275 | ||||||
| Morgan Stanley | |||||||||
| MS 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 61 | 1,982 | ||||||
| MS 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 22 | 1,078 | ||||||
| MS 170120P00025000 | Expiration: January 2017, Exercise Price: $25.00 | 20 | 2,440 | ||||||
| 12,025 | |||||||||
| Software | |||||||||
| Adobe Systems, Inc. | |||||||||
| ADBE 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 12 | 1,086 | ||||||
| ADBE 160115P00047000 | Expiration: January 2016, Exercise Price: $47.00 | 9 | 1,008 | ||||||
| ADBE 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 6 | 858 | ||||||
| ADBE 160115P00052500 | Expiration: January 2016, Exercise Price: $52.50 | 13 | 2,242 | ||||||
| ADBE 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 3 | 593 | ||||||
| ADBE 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 4 | 1,100 | ||||||
| ADBE 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 5 | 1,950 | ||||||
| 8,837 | |||||||||
| Software Publishers | |||||||||
| Citrix Systems, Inc. | |||||||||
| CTXS 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 8 | 960 | ||||||
| CTXS 160115P00047500 | Expiration: January 2016, Exercise Price: $47.50 | 11 | 1,787 | ||||||
| CTXS 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 5 | 1,063 | ||||||
| Microsoft Corporation | |||||||||
| MSFT 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 13 | 435 | ||||||
| MSFT 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 10 | 430 | ||||||
| MSFT 160115P00032000 | Expiration: January 2016, Exercise Price: $32.00 | 14 | 819 | ||||||
| MSFT 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 5 | 455 | ||||||
| MSFT 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 23 | 3,921 | ||||||
| MSFT 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 11 | 2,360 | ||||||
| Oracle Corporation | |||||||||
| ORCL 160115P00028000 | Expiration: January 2016, Exercise Price: $28.00 | 44 | 1,936 | ||||||
| ORCL 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 28 | 1,582 | ||||||
| ORCL 160115P00032000 | Expiration: January 2016, Exercise Price: $32.00 | 12 | 918 | ||||||
| 16,666 | |||||||||
The accompanying notes are an integral part of these financial statements.
180
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Support Activities for Mining | |||||||||
| Halliburton Company | |||||||||
| HAL 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 3 | $ | 556 | |||||
| HAL 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 6 | 1,662 | ||||||
| HAL 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 10 | 3,500 | ||||||
| HAL 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 22 | 10,615 | ||||||
| HAL 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 6 | 3,540 | ||||||
| HAL 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 2 | 980 | ||||||
| HAL 170120P00037500 | Expiration: January 2017, Exercise Price: $37.50 | 3 | 1,875 | ||||||
| HAL 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 20 | 15,100 | ||||||
| HAL 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 8 | 7,200 | ||||||
| Helmerich & Payne, Inc. | |||||||||
| HP 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 22 | 12,760 | ||||||
| HP 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 5 | 3,750 | ||||||
| HP 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 4 | 4,020 | ||||||
| Schlumberger Limited | |||||||||
| SLB 150220P00070000 | Expiration: February 2015, Exercise Price: $70.00 | 3 | 158 | ||||||
| SLB 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 9 | 2,529 | ||||||
| SLB 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 12 | 4,650 | ||||||
| SLB 160115P00082500 | Expiration: January 2016, Exercise Price: $82.50 | 3 | 2,475 | ||||||
| SLB 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 1 | 945 | ||||||
| SLB 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 2 | 1,005 | ||||||
| SLB 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 12 | 7,740 | ||||||
| SLB 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 2 | 1,625 | ||||||
| Transocean Limited | |||||||||
| RIG 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 64 | 19,840 | ||||||
| RIG 170120P00020000 | Expiration: January 2017, Exercise Price: $20.00 | 59 | 42,480 | ||||||
| 149,005 | |||||||||
| Support Activities for Transportation | |||||||||
| Expeditors International of Washington, Inc. | |||||||||
| EXPD 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 38 | 1,995 | ||||||
| EXPD 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 6 | 495 | ||||||
| EXPD 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 1 | 113 | ||||||
| 2,603 | |||||||||
| Telecommunications | |||||||||
| Verizon Communications Inc. | |||||||||
| VZ 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 16 | 1,272 | ||||||
The accompanying notes are an integral part of these financial statements.
181
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Transportation Equipment Manufacturing | |||||||||
| American Railcar Industries, Inc. | |||||||||
| ARII 150320P00050000 | Expiration: March 2015, Exercise Price: $50.00 | 2 | $ | 770 | |||||
| ARII 150619P00045000 | Expiration: June 2015, Exercise Price: $45.00 | 3 | 1,057 | ||||||
| The Boeing Company | |||||||||
| BA 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 1 | 173 | ||||||
| BA 160115P00095000 | Expiration: January 2016, Exercise Price: $95.00 | 2 | 454 | ||||||
| BA 160115P00100000 | Expiration: January 2016, Exercise Price: $100.00 | 13 | 3,815 | ||||||
| BA 160115P00105000 | Expiration: January 2016, Exercise Price: $105.00 | 2 | 750 | ||||||
| BA 170120P00090000 | Expiration: January 2017, Exercise Price: $90.00 | 13 | 5,493 | ||||||
| BA 170120P00095000 | Expiration: January 2017, Exercise Price: $95.00 | 2 | 1,030 | ||||||
| Harley-Davidson, Inc. | |||||||||
| HOG 160115P00042500 | Expiration: January 2016, Exercise Price: $42.50 | 3 | 247 | ||||||
| HOG 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 3 | 317 | ||||||
| HOG 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 4 | 1,500 | ||||||
| Johnson Controls, Inc. | |||||||||
| JCI 160115P00033000 | Expiration: January 2016, Exercise Price: $33.00 | 4 | 290 | ||||||
| JCI 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 35 | 3,500 | ||||||
| JCI 160115P00038000 | Expiration: January 2016, Exercise Price: $38.00 | 22 | 3,190 | ||||||
| JCI 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 13 | 1,528 | ||||||
| JCI 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 6 | 1,005 | ||||||
| Textron Inc. | |||||||||
| TXT 160115P00027000 | Expiration: January 2016, Exercise Price: $27.00 | 12 | 3,000 | ||||||
| TXT 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 8 | 808 | ||||||
| Toyota Motor Corporation — ADR | |||||||||
| TM 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 1 | 47 | ||||||
| TM 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 6 | 420 | ||||||
| TM 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 2 | 216 | ||||||
| TM 170120P00090000 | Expiration: January 2017, Exercise Price: $90.00 | 2 | 650 | ||||||
| United Technologies Corporation | |||||||||
| UTX 160115P00080000 | Expiration: January 2016, Exercise Price: $80.00 | 3 | 419 | ||||||
| UTX 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 3 | 555 | ||||||
| UTX 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 4 | 996 | ||||||
| 32,230 | |||||||||
The accompanying notes are an integral part of these financial statements.
182
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Alternative Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| U.S. Equity Exchanges | |||||||||
| The NASDAQ OMX Group, Inc. | |||||||||
| NDAQ 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 16 | $ | 1,040 | |||||
| TOTAL PUT OPTIONS WRITTEN | |||||||||
| (premiums received $2,087,842) | $ | 1,554,356 | |||||||
d — 100 Shares Per Contract Unless Otherwise Noted.
e — 10 Shares Per Contract.
ADR — American Depository Receipt.
ETF — Exchange Traded Fund.
The accompanying notes are an integral part of these financial statements.
183
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | PUT OPTIONS WRITTEN | Contractsd | Value | ||||||
| Accommodation | |||||||||
| Carnival Corporation | |||||||||
| CCL 150117P00032500 | Expiration: January 2015, Exercise Price: $32.50 | 16 | $ | 40 | |||||
| Marriott International Inc. — Class A | |||||||||
| MAR 150117P00035000 | Expiration: January 2015, Exercise Price: $35.00 | 16 | 40 | ||||||
| MAR 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 76 | 3,040 | ||||||
| MAR 160115P00042000 | Expiration: January 2016, Exercise Price: $42.00 | 32 | 1,520 | ||||||
| Royal Caribbean Cruises Limited | |||||||||
| RCL 150117P00028000 | Expiration: January 2015, Exercise Price: $28.00 | 52 | 104 | ||||||
| 4,744 | |||||||||
| Administrative and Support Services | |||||||||
| Expedia, Inc. | |||||||||
| EXPE 150117P00039480 | Expiration: January 2015, Exercise Price: $39.48 | 9 | 22 | ||||||
| EXPE 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 102 | 11,985 | ||||||
| EXPE 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 12 | 2,130 | ||||||
| 14,137 | |||||||||
| Ambulatory Health Care Services | |||||||||
| DaVita HealthCare Partners Inc. | |||||||||
| DVA 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 50 | 2,500 | ||||||
| Apparel Manufacturing | |||||||||
| L Brands, Inc. | |||||||||
| LB 150117P00041000 | Expiration: January 2015, Exercise Price: $41.00 | 41 | 103 | ||||||
| Asset Management | |||||||||
| Apollo Global Management LLC — Class A | |||||||||
| APO 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 28 | 14,700 | ||||||
| The Blackstone Group LP | |||||||||
| BX 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 21 | 1,911 | ||||||
| Franklin Resources, Inc. | |||||||||
| BEN 160115P00049500 | Expiration: January 2016, Exercise Price: $49.50 | 56 | 16,380 | ||||||
| KKR & Co. LP | |||||||||
| KKR 150117P00017000 | Expiration: January 2015, Exercise Price: $17.00 | 68 | 340 | ||||||
| 33,331 | |||||||||
| Beverage and Tobacco Product Manufacturing | |||||||||
| Molson Coors Brewing Company — Class B | |||||||||
| TAP 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 50 | 500 | ||||||
The accompanying notes are an integral part of these financial statements.
184
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Broadcasting (except Internet) | |||||||||
| Charter Communications, Inc. — Class A | |||||||||
| CHTR 150619P00150000 | Expiration: June 2015, Exercise Price: $150.00 | 36 | $ | 18,180 | |||||
| Comcast Corporation — Class A | |||||||||
| CMCSA 150117P00037000 | Expiration: January 2015, Exercise Price: $37.00 | 16 | 40 | ||||||
| CMCSA 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 44 | 5,060 | ||||||
| Sirius XM Holdings Inc. | |||||||||
| SIRI 160115P00003000 | Expiration: January 2016, Exercise Price: $3.00 | 336 | 5,208 | ||||||
| SIRI 160115P00003500 | Expiration: January 2016, Exercise Price: $3.50 | 192 | 6,336 | ||||||
| Twenty-First Century Fox, Inc. — Class A | |||||||||
| FOXA 150117P00027000 | Expiration: January 2015, Exercise Price: $27.00 | 14 | 70 | ||||||
| FOXA1 150117P00027000 | Expiration: January 2015, Exercise Price: $27.00 | 37 | 555 | ||||||
| FOXA 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 14 | 1,575 | ||||||
| 37,024 | |||||||||
| Building Material and Garden Equipment and Supplies Dealers | |||||||||
| Fastenal Company | |||||||||
| FAST 150117P00037500 | Expiration: January 2015, Exercise Price: $37.50 | 6 | 15 | ||||||
| FAST 150117P00042500 | Expiration: January 2015, Exercise Price: $42.50 | 7 | 53 | ||||||
| The Sherwin-Williams Company | |||||||||
| SHW 150117P00160000 | Expiration: January 2015, Exercise Price: $160.00 | 5 | 25 | ||||||
| 93 | |||||||||
| Cable Distributor | |||||||||
| Liberty Global plc — Class A | |||||||||
| LBTY2 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 6 | 1,740 | ||||||
| Chemical Manufacturing | |||||||||
| Celgene Corporation | |||||||||
| CELG 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 84 | 28,560 | ||||||
| Monsanto Company | |||||||||
| MON 150117P00090000 | Expiration: January 2015, Exercise Price: $90.00 | 6 | 15 | ||||||
| OPKO Health, Inc. | |||||||||
| OPK 160115P00005000 | Expiration: January 2016, Exercise Price: $5.00 | 180 | 4,500 | ||||||
| OPK 170120P00005000 | Expiration: January 2017, Exercise Price: $5.00 | 26 | 1,235 | ||||||
| 34,310 | |||||||||
The accompanying notes are an integral part of these financial statements.
185
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Clothing and Clothing Accessories Stores | |||||||||
| Tiffany & Co. | |||||||||
| TIF 150117P00060000 | Expiration: January 2015, Exercise Price: $60.00 | 4 | $ | 12 | |||||
| TIF 150117P00062500 | Expiration: January 2015, Exercise Price: $62.50 | 40 | 140 | ||||||
| TIF 150117P00065000 | Expiration: January 2015, Exercise Price: $65.00 | 9 | 32 | ||||||
| TIF 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 14 | 1,673 | ||||||
| TIF 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 34 | 4,811 | ||||||
| TIF 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 14 | 2,716 | ||||||
| 9,384 | |||||||||
| Computer and Electronic Product Manufacturing | |||||||||
| Apple, Inc. | |||||||||
| AAPL 160115P00064290 | Expiration: January 2016, Exercise Price: $64.29 | 77 | 6,583 | ||||||
| AAPL 160115P00068570 | Expiration: January 2016, Exercise Price: $68.57 | 84 | 10,038 | ||||||
| AAPL 160115P00071430 | Expiration: January 2016, Exercise Price: $71.43 | 14 | 2,065 | ||||||
| AAPL 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 90 | 42,300 | ||||||
| Hologic, Inc. | |||||||||
| HOLX 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 45 | 2,925 | ||||||
| Sony Corporation | |||||||||
| SNE 150117P00015000 | Expiration: January 2015, Exercise Price: $15.00 | 24 | 60 | ||||||
| SNE 150117P00017000 | Expiration: January 2015, Exercise Price: $17.00 | 180 | 450 | ||||||
| SNE 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 240 | 13,800 | ||||||
| 78,221 | |||||||||
| Construction of Buildings | |||||||||
| Lennar Corporation — Class A | |||||||||
| LEN 150117P00025000 | Expiration: January 2015, Exercise Price: $25.00 | 132 | 264 | ||||||
| LEN 150117P00033000 | Expiration: January 2015, Exercise Price: $33.00 | 16 | 152 | ||||||
| LEN 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 56 | 1,960 | ||||||
| LEN 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 73 | 7,008 | ||||||
| LEN 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 116 | 37,700 | ||||||
| 47,084 | |||||||||
| Couriers and Messengers | |||||||||
| FedEx Corp. | |||||||||
| FDX 170120P00120000 | Expiration: January 2017, Exercise Price: $120.00 | 54 | 28,080 | ||||||
The accompanying notes are an integral part of these financial statements.
186
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Credit Intermediation and Related Activities | |||||||||
| American Express Company | |||||||||
| AXP 170120P00070000 | Expiration: January 2017, Exercise Price: $70.00 | 108 | $ | 37,260 | |||||
| Bank of America Corporation | |||||||||
| BAC 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 128 | 8,960 | ||||||
| The Bank Of New York Mellon Corporation | |||||||||
| BK 150117P00025000 | Expiration: January 2015, Exercise Price: $25.00 | 6 | 9 | ||||||
| Wells Fargo & Company | |||||||||
| WFC 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 16 | 1,488 | ||||||
| WFC 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 144 | 45,216 | ||||||
| 92,933 | |||||||||
| Data Processor | |||||||||
| MasterCard, Inc. — Class A | |||||||||
| MA 170120P00065000 | Expiration: January 2017, Exercise Price: $65.00 | 108 | 44,550 | ||||||
| E-Commerce | |||||||||
| eBay, Inc. | |||||||||
| EBAY 170120P00040000 | Expiration: January 2017, Exercise Price: $40.00 | 44 | 7,524 | ||||||
| EBAY 170120P00045000 | Expiration: January 2017, Exercise Price: $45.00 | 144 | 42,552 | ||||||
| Liberty Interactive Corporation — Class A | |||||||||
| QVCA1 150117P00022000 | Expiration: January 2015, Exercise Price: $22.00 | 136 | 2,040 | ||||||
| QVCA1 150117P00025000 | Expiration: January 2015, Exercise Price: $25.00 | 122 | 305 | ||||||
| 52,421 | |||||||||
| Fabricated Metal Product Manufacturing | |||||||||
| Danaher Corporation | |||||||||
| DHR 170120P00060000 | Expiration: January 2017, Exercise Price: $60.00 | 28 | 8,680 | ||||||
| Food Services and Drinking Places | |||||||||
| Starbucks Corporation | |||||||||
| SBUX 150117P00030000 | Expiration: January 2015, Exercise Price: $30.00 | 30 | 45 | ||||||
| SBUX 150117P00045000 | Expiration: January 2015, Exercise Price: $45.00 | 2 | 1 | ||||||
| SBUX 150117P00052500 | Expiration: January 2015, Exercise Price: $52.50 | 5 | 5 | ||||||
| SBUX 150117P00055000 | Expiration: January 2015, Exercise Price: $55.00 | 9 | 14 | ||||||
| SBUX 150117P00057500 | Expiration: January 2015, Exercise Price: $57.50 | 24 | 24 | ||||||
| SBUX 160115P00067500 | Expiration: January 2016, Exercise Price: $67.50 | 24 | 5,508 | ||||||
| SBUX 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 28 | 7,980 | ||||||
| 13,577 | |||||||||
The accompanying notes are an integral part of these financial statements.
187
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Funds, Trusts, and Other Financial Vehicles | |||||||||
| iShares iBoxx $ High Yield Corporate Bond ETF | |||||||||
| HYG 160115P00088000 | Expiration: January 2016, Exercise Price: $88.00 | 222 | $ | 119,880 | |||||
| HYG 160115P00090000 | Expiration: January 2016, Exercise Price: $90.00 | 18 | 11,880 | ||||||
| Market Vectors Gold Miners ETF | |||||||||
| GDX 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 50 | 9,100 | ||||||
| Market Vectors Junior Gold Miners ETF | |||||||||
| GDXJ1 150117P00007000 | Expiration: January 2015, Exercise Price: $7.00 | 50 | 5,250 | ||||||
| ProShares Short VIX Short-Term Futures ETF | |||||||||
| SVXY 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 8 | 60 | ||||||
| SVXY 150117P00035000 | Expiration: January 2015, Exercise Price: $35.00 | 4 | 50 | ||||||
| 146,220 | |||||||||
| Gaming | |||||||||
| Las Vegas Sands Corp. | |||||||||
| LVS 160115P00055000 | Expiration: January 2016, Exercise Price: $55.00 | 74 | 47,730 | ||||||
| LVS 160115P00060000 | Expiration: January 2016, Exercise Price: $60.00 | 26 | 23,725 | ||||||
| Wynn Resorts Limited | |||||||||
| WYNN 150117P00116000 | Expiration: January 2015, Exercise Price: $116.00 | 5 | 53 | ||||||
| WYNN 160115P00150000 | Expiration: January 2016, Exercise Price: $150.00 | 12 | 26,490 | ||||||
| 97,998 | |||||||||
| General Merchandise Stores | |||||||||
| Family Dollar Stores, Inc. | |||||||||
| FDO 150117P00050000 | Expiration: January 2015, Exercise Price: $50.00 | 25 | 62 | ||||||
| FDO 150117P00052500 | Expiration: January 2015, Exercise Price: $52.50 | 9 | 23 | ||||||
| 85 | |||||||||
| Heavy and Civil Engineering Construction | |||||||||
| Chicago Bridge & Iron Company N.V. | |||||||||
| CBI 170120P00030000 | Expiration: January 2017, Exercise Price: $30.00 | 8 | 2,720 | ||||||
| Holding Company | |||||||||
| Icahn Enterprises LP | |||||||||
| IEP 150619P00095000 | Expiration: June 2015, Exercise Price: $95.00 | 24 | 26,160 | ||||||
| Leucadia National Corporation | |||||||||
| LUK2 150117P00022000 | Expiration: January 2015, Exercise Price: $22.00 | 290 | 110,200 | ||||||
| 136,360 | |||||||||
The accompanying notes are an integral part of these financial statements.
188
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Insurance Carriers and Related Activities | |||||||||
| American International Group, Inc. | |||||||||
| AIG 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 102 | $ | 13,974 | |||||
| AmTrust Financial Services, Inc. | |||||||||
| AFSI 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 76 | 24,130 | ||||||
| AFSI 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 38 | 25,080 | ||||||
| 63,184 | |||||||||
| Leather and Allied Product Manufacturing | |||||||||
| Coach, Inc. | |||||||||
| COH 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 124 | 79,980 | ||||||
| Machinery Manufacturing | |||||||||
| National Oilwell Varco, Inc. | |||||||||
| NOV1 150117P00057500 | Expiration: January 2015, Exercise Price: $57.50 | 45 | 1,215 | ||||||
| Media | |||||||||
| Viacom Inc. — Class B | |||||||||
| VIAB 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 56 | 16,940 | ||||||
| Merchant Wholesalers, Nondurable Goods | |||||||||
| Cardinal Health, Inc. | |||||||||
| CAH 150117P00042000 | Expiration: January 2015, Exercise Price: $42.00 | 7 | 17 | ||||||
| Mining (except Oil and Gas) | |||||||||
| Barrick Gold Corporation | |||||||||
| ABX 150117P00015000 | Expiration: January 2015, Exercise Price: $15.00 | 124 | 52,700 | ||||||
| ABX 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 134 | 44,555 | ||||||
| ABX 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 76 | 37,240 | ||||||
| Franco-Nevada Corporation | |||||||||
| FNV 150117P00050000 | Expiration: January 2015, Exercise Price: $50.00 | 18 | 3,825 | ||||||
| Freeport-McMoRan Copper & Gold Inc. | |||||||||
| FCX 150117P00022000 | Expiration: January 2015, Exercise Price: $22.00 | 2 | 73 | ||||||
| FCX 150117P00024000 | Expiration: January 2015, Exercise Price: $24.00 | 116 | 14,964 | ||||||
| FCX 150117P00027000 | Expiration: January 2015, Exercise Price: $27.00 | 52 | 20,540 | ||||||
| FCX 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 4 | 3,530 | ||||||
| FCX 160115P00032000 | Expiration: January 2016, Exercise Price: $32.00 | 20 | 21,000 | ||||||
| Rio Tinto plc — ADR | |||||||||
| RIO 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 5 | 62 | ||||||
| Royal Gold, Inc. | |||||||||
| RGLD 170120P00042500 | Expiration: January 2017, Exercise Price: $42.50 | 4 | 1,700 | ||||||
The accompanying notes are an integral part of these financial statements.
189
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Mining (except Oil and Gas) — (Continued) | |||||||||
| Silver Wheaton Corporation | |||||||||
| SLW 150117P00018000 | Expiration: January 2015, Exercise Price: $18.00 | 16 | $ | 240 | |||||
| SLW 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 106 | 6,466 | ||||||
| SLW 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 32 | 2,336 | ||||||
| SLW 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 52 | 6,500 | ||||||
| SLW 160115P00018000 | Expiration: January 2016, Exercise Price: $18.00 | 52 | 12,584 | ||||||
| SLW 170120P00013000 | Expiration: January 2017, Exercise Price: $13.00 | 90 | 13,995 | ||||||
| 242,310 | |||||||||
| Miscellaneous Manufacturing | |||||||||
| Hasbro, Inc. | |||||||||
| HAS 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 17 | 128 | ||||||
| International Game Technology | |||||||||
| IGT 150117P00010000 | Expiration: January 2015, Exercise Price: $10.00 | 20 | 50 | ||||||
| 178 | |||||||||
| Nonmetallic Mineral Product Manufacturing | |||||||||
| USG Corporation | |||||||||
| USG 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 16 | 40 | ||||||
| Non-Store Retailers | |||||||||
| Sotheby’s | |||||||||
| BID1 150117P00028000 | Expiration: January 2015, Exercise Price: $28.00 | 17 | 255 | ||||||
| Oil and Gas Extraction | |||||||||
| Chesapeake Energy Corporation | |||||||||
| CHK1 150117P00022000 | Expiration: January 2015, Exercise Price: $22.00 | 16 | 3,704 | ||||||
| CHK1 150117P00025000 | Expiration: January 2015, Exercise Price: $25.00 | 4 | 2,030 | ||||||
| CHK1 160115P00020000 | Expiration: January 2016, Exercise Price: $20.00 | 128 | 48,320 | ||||||
| CHK1 160115P00023000 | Expiration: January 2016, Exercise Price: $23.00 | 46 | 25,645 | ||||||
| CHK1 160115P00025000 | Expiration: January 2016, Exercise Price: $25.00 | 14 | 9,800 | ||||||
| Continental Resources, Inc. | |||||||||
| CLR 160115P00035000 | Expiration: January 2016, Exercise Price: $35.00 | 4 | 2,780 | ||||||
| CLR 170120P00035000 | Expiration: January 2017, Exercise Price: $35.00 | 20 | 17,900 | ||||||
| Talisman Energy Inc. | |||||||||
| TLM 150117P00010000 | Expiration: January 2015, Exercise Price: $10.00 | 8 | 1,760 | ||||||
| TLM 160115P00010000 | Expiration: January 2016, Exercise Price: $10.00 | 116 | 26,390 | ||||||
| 138,329 | |||||||||
The accompanying notes are an integral part of these financial statements.
190
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Other Exchanges | |||||||||
| CBOE Holdings Inc. | |||||||||
| CBOE 150117P00043750 | Expiration: January 2015, Exercise Price: $43.75 | 34 | $ | 85 | |||||
| CBOE 160115P00044500 | Expiration: January 2016, Exercise Price: $44.50 | 50 | 5,125 | ||||||
| 5,210 | |||||||||
| Other Information Services | |||||||||
| Google Inc. — Class A | |||||||||
| GOLG1 150117P00800000 | Expiration: January 2015, Exercise Price: $800.00 | 1 | 78 | ||||||
| GOLG1 160115P00950000 | Expiration: January 2016, Exercise Price: $950.00 | 7 | 38,360 | ||||||
| GOOG 170120P00360000 | Expiration: January 2017, Exercise Price: $360.00 | 18 | 25,380 | ||||||
| 63,818 | |||||||||
| Performing Arts, Spectator Sports, and Related Industries | |||||||||
| Live Nation Entertainment, Inc. | |||||||||
| LYV 150117P00012000 | Expiration: January 2015, Exercise Price: $12.00 | 102 | 510 | ||||||
| LYV 150117P00015000 | Expiration: January 2015, Exercise Price: $15.00 | 242 | 1,210 | ||||||
| LYV 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 180 | 7,650 | ||||||
| LYV 160115P00017000 | Expiration: January 2016, Exercise Price: $17.00 | 116 | 9,280 | ||||||
| 18,650 | |||||||||
| Petroleum and Coal Products Manufacturing | |||||||||
| ConocoPhillips | |||||||||
| COP 170120P00055000 | Expiration: January 2017, Exercise Price: $55.00 | 108 | 53,460 | ||||||
| Exxon Mobil Corporation | |||||||||
| XOM 170120P00075000 | Expiration: January 2017, Exercise Price: $75.00 | 90 | 46,350 | ||||||
| 99,810 | |||||||||
| Pharmaceutical and Biotechnology | �� | ||||||||
| AbbVie Inc. | |||||||||
| ABBV 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 76 | 7,220 | ||||||
| Amgen Inc. | |||||||||
| AMGN 160115P00085000 | Expiration: January 2016, Exercise Price: $85.00 | 76 | 9,690 | ||||||
| Gilead Sciences, Inc. | |||||||||
| GILD 160115P00050000 | Expiration: January 2016, Exercise Price: $50.00 | 76 | 5,624 | ||||||
| 22,534 | |||||||||
| Pipeline Transportation | |||||||||
| The Williams Companies, Inc. | |||||||||
| WMB 150117P00030000 | Expiration: January 2015, Exercise Price: $30.00 | 7 | 21 | ||||||
| WMB 160115P00030000 | Expiration: January 2016, Exercise Price: $30.00 | 144 | 25,992 | ||||||
| 26,013 | |||||||||
The accompanying notes are an integral part of these financial statements.
191
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Publishing Industries (except Internet) | |||||||||
| Nuance Communications, Inc. | |||||||||
| NUAN 160115P00013000 | Expiration: January 2016, Exercise Price: $13.00 | 210 | $ | 27,300 | |||||
| NUAN 160115P00015000 | Expiration: January 2016, Exercise Price: $15.00 | 8 | 1,920 | ||||||
| 29,220 | |||||||||
| Rail Transportation | |||||||||
| CSX Corporation | |||||||||
| CSX 170120P00027000 | Expiration: January 2017, Exercise Price: $27.00 | 216 | 42,444 | ||||||
| Norfolk Southern Corporation | |||||||||
| NSC 150117P00065000 | Expiration: January 2015, Exercise Price: $65.00 | 7 | 17 | ||||||
| Union Pacific Corporation | |||||||||
| UNP 170120P00085000 | Expiration: January 2017, Exercise Price: $85.00 | 84 | 38,010 | ||||||
| 80,471 | |||||||||
| Real Estate | |||||||||
| General Growth Properties, Inc. | |||||||||
| GGP 150117P00020000 | Expiration: January 2015, Exercise Price: $20.00 | 18 | 81 | ||||||
| TRI Pointe Homes, Inc. | |||||||||
| TPH 150117P00014000 | Expiration: January 2015, Exercise Price: $14.00 | 90 | 450 | ||||||
| TPH 150117P00015000 | Expiration: January 2015, Exercise Price: $15.00 | 36 | 810 | ||||||
| TPH 170120P00012000 | Expiration: January 2017, Exercise Price: $12.00 | 232 | 27,840 | ||||||
| 29,181 | |||||||||
| Restaurants | |||||||||
| The Wendy’s Company | |||||||||
| WEN 150117P00007000 | Expiration: January 2015, Exercise Price: $7.00 | 232 | 1,740 | ||||||
| WEN 160115P00007000 | Expiration: January 2016, Exercise Price: $7.00 | 1,080 | 43,200 | ||||||
| 44,940 | |||||||||
| Satellite Telecommunications | |||||||||
| DISH Network Corp. — Class A | |||||||||
| DISH 150117P00030000 | Expiration: January 2015, Exercise Price: $30.00 | 26 | 325 | ||||||
| DISH 150117P00032000 | Expiration: January 2015, Exercise Price: $32.00 | 4 | 50 | ||||||
| DISH 150117P00036000 | Expiration: January 2015, Exercise Price: $36.00 | 12 | 150 | ||||||
| DISH 150117P00040000 | Expiration: January 2015, Exercise Price: $40.00 | 78 | 975 | ||||||
| DISH 160115P00045000 | Expiration: January 2016, Exercise Price: $45.00 | 2 | 225 | ||||||
| DISH 160115P00047000 | Expiration: January 2016, Exercise Price: $47.00 | 48 | 6,720 | ||||||
| DISH 170120P00047500 | Expiration: January 2017, Exercise Price: $47.50 | 4 | 1,200 | ||||||
| DISH 170120P00050000 | Expiration: January 2017, Exercise Price: $50.00 | 32 | 11,360 | ||||||
| 21,005 | |||||||||
The accompanying notes are an integral part of these financial statements.
192
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| The Multi-Disciplinary Income Portfolio |
Portfolio of Options Written — December 31, 2014 — (Continued) |
| Identifier | Contractsd | Value | |||||||
| Securities, Commodity Contracts, and Other | |||||||||
| Financial Investments and Related Activities | |||||||||
| CME Group Inc. | |||||||||
| CME 150117P00047500 | Expiration: January 2015, Exercise Price: $47.50 | 25 | $ | 62 | |||||
| CME 150117P00057500 | Expiration: January 2015, Exercise Price: $57.50 | 2 | 5 | ||||||
| CME 160115P00065000 | Expiration: January 2016, Exercise Price: $65.00 | 10 | 2,400 | ||||||
| CME 160115P00070000 | Expiration: January 2016, Exercise Price: $70.00 | 32 | 10,640 | ||||||
| CME 160115P00075000 | Expiration: January 2016, Exercise Price: $75.00 | 90 | 40,050 | ||||||
| IntercontinentalExchange Group, Inc. | |||||||||
| ICE 160115P00190000 | Expiration: January 2016, Exercise Price: $190.00 | 30 | 29,100 | ||||||
| 82,257 | |||||||||
| Support Activities for Mining | |||||||||
| Transocean Limited | |||||||||
| RIG 160115P00040000 | Expiration: January 2016, Exercise Price: $40.00 | 120 | 273,900 | ||||||
| Support Activities for Transportation | |||||||||
| Expeditors International of Washington, Inc. | |||||||||
| EXPD 150117P00035000 | Expiration: January 2015, Exercise Price: $35.00 | 30 | 75 | ||||||
| Telecommunications | |||||||||
| Level 3 Communications, Inc. | |||||||||
| LVLT 170120P00033000 | Expiration: January 2017, Exercise Price: $33.00 | 12 | 3,450 | ||||||
| Warehousing and Storage | |||||||||
| Iron Mountain Inc. | |||||||||
| IRM2 150117P00030000 | Expiration: January 2015, Exercise Price: $30.00 | 13 | 65 | ||||||
| TOTAL PUT OPTIONS WRITTEN | |||||||||
| (premiums received $3,234,528) | $ | 2,229,842 | |||||||
d — 100 Shares Per Contract.
ADR —American Depository Receipt.
ETF — Exchange Traded Fund.
The accompanying notes are an integral part of these financial statements.
193
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Statements of Assets & Liabilities |
| December 31, 2014 |
| The Internet | The Global | |||||||
| Portfolio | Portfolio | |||||||
| ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 162,189,593 | $ | 9,327,044 | ||||
| Cash | — | 164,797 | ||||||
| Receivable for contributed capital | 24,773 | 36 | ||||||
| Dividends and interest receivable | 57,797 | 9,585 | ||||||
| Other accounts receivable | 99,877 | — | ||||||
| Prepaid expenses and other assets | 2,698 | 3,458 | ||||||
| Total Assets | 162,374,738 | 9,504,920 | ||||||
| LIABILITIES: | ||||||||
| Payable to Adviser | 168,296 | 9,467 | ||||||
| Payable to Custodian | 5,625 | — | ||||||
| Payable to Trustees | 2,468 | 149 | ||||||
| Payable to Chief Compliance Officer | 191 | 13 | ||||||
| Payable for collateral received for securities loaned | 4,380,634 | 602,851 | ||||||
| Payable for withdrawn capital | 240,262 | — | ||||||
| Accrued expenses and other liabilities | 31,200 | 13,052 | ||||||
| Total Liabilities | 4,828,676 | 625,532 | ||||||
| Net Assets | $ | 157,546,062 | $ | 8,879,388 | ||||
(1) Cost of investments | $ | 80,802,339 | $ | 8,005,318 | ||||
(2) Includes loaned securities with a market value of | $ | 4,163,840 | $ | 579,021 | ||||
The accompanying notes are an integral part of these financial statements.
194
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Assets & Liabilities — (Continued) |
| December 31, 2014 |
| The Paradigm | The Medical | |||||||
| Portfolio | Portfolio | |||||||
| ASSETS: | ||||||||
Investments, at value(1)(2)(3) | ||||||||
| Unaffiliated issuers | $ | 1,219,043,605 | $ | 30,084,431 | ||||
| Affiliated issuers | 57,876,640 | — | ||||||
| Cash | 163,782 | — | ||||||
| Receivable for contributed capital | 1,405,661 | 552 | ||||||
| Receivable for investments sold | 262,752 | — | ||||||
| Dividends and interest receivable | 236,956 | 32,289 | ||||||
| Prepaid expenses and other assets | 224,583 | 2,339 | ||||||
| Total Assets | 1,279,213,979 | 30,119,611 | ||||||
| LIABILITIES: | ||||||||
| Payable to Adviser | 1,288,619 | 28,744 | ||||||
| Payable to Trustees | 19,966 | 401 | ||||||
| Payable to Chief Compliance Officer | 1,386 | 30 | ||||||
| Payable for securities purchased | 224,871 | — | ||||||
| Payable for collateral received for securities loaned | 80,379,397 | 2,947,749 | ||||||
| Payable for withdrawn capital | 4,788,602 | 13,047 | ||||||
| Accrued expenses and other liabilities | 180,858 | 13,013 | ||||||
| Total Liabilities | 86,883,699 | 3,002,984 | ||||||
| Net Assets | $ | 1,192,330,280 | $ | 27,116,627 | ||||
(1) Unaffiliated issuers cost | $ | 821,599,016 | $ | 19,516,486 | ||||
(2) Affiliated issuers cost | $ | 40,068,267 | $ | — | ||||
(3) Includes loaned securities with a market value of | $ | 77,035,587 | $ | 2,761,329 | ||||
The accompanying notes are an integral part of these financial statements.
195
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Assets & Liabilities — (Continued) |
| December 31, 2014 |
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Portfolio | Portfolio | |||||||
| ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 389,510,873 | $ | 56,489,772 | ||||
| Cash | — | 1,220,531 | ||||||
| Receivable for contributed capital | 1,860,621 | 10,005 | ||||||
| Receivable for investments sold | 3,433,635 | 9,332 | ||||||
| Dividends and interest receivable | 102,319 | 34,811 | ||||||
| Other accounts receivable | 20,977 | — | ||||||
| Prepaid expenses and other assets | 227,983 | 21,943 | ||||||
| Total Assets | 395,156,408 | 57,786,394 | ||||||
| LIABILITIES: | ||||||||
| Payable to Adviser | 383,661 | 58,941 | ||||||
| Payable to Custodian | 552 | — | ||||||
| Payable to Trustees | 6,315 | 958 | ||||||
| Payable to Chief Compliance Officer | 433 | 69 | ||||||
| Payable for collateral received for securities loaned | 40,433,435 | 3,228,685 | ||||||
| Payable for withdrawn capital | 1,111,657 | 101,211 | ||||||
| Accrued expenses and other liabilities | 63,059 | 20,639 | ||||||
| Total Liabilities | 41,999,112 | 3,410,503 | ||||||
| Net Assets | $ | 353,157,296 | $ | 54,375,891 | ||||
(1) Cost of investments | $ | 352,848,312 | $ | 43,715,609 | ||||
(2) Includes loaned securities with a market value of | $ | 38,484,035 | $ | 3,101,003 | ||||
The accompanying notes are an integral part of these financial statements.
196
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Assets & Liabilities — (Continued) |
| December 31, 2014 |
| The Multi- | ||||||||
| The Alternative | Disciplinary | |||||||
| Income | Income | |||||||
| Portfolio | Portfolio | |||||||
| ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 38,517,424 | $ | 135,469,662 | ||||
Foreign currencies, at value(3) | — | — | ||||||
| Cash | 1,122,592 | 3,526,925 | ||||||
| Receivable for contributed capital | 147,652 | 258,269 | ||||||
| Receivable for investments sold | 4,917 | — | ||||||
| Dividends and interest receivable | 115,134 | 1,887,544 | ||||||
| Prepaid expenses and other assets | 258 | 2,727 | ||||||
| Total Assets | 39,907,977 | 141,145,127 | ||||||
| LIABILITIES: | ||||||||
Written options, at value(4) | 1,554,356 | 2,229,842 | ||||||
| Payable to Adviser | 30,134 | 143,757 | ||||||
| Payable to Trustees | 570 | 1,998 | ||||||
| Payable to Chief Compliance Officer | 17 | 97 | ||||||
| Payable for securities purchased | 1,250 | — | ||||||
| Payable for collateral received for securities loaned | — | 2,872,260 | ||||||
| Payable for withdrawn capital | 67,179 | 331,642 | ||||||
| Accrued expenses and other liabilities | 24,279 | 30,681 | ||||||
| Total Liabilities | 1,677,785 | 5,610,277 | ||||||
| Net Assets | $ | 38,230,192 | $ | 135,534,850 | ||||
(1) Cost of investments | $ | 38,610,756 | $ | 139,098,419 | ||||
(2) Includes loaned securities with a market value of | $ | — | $ | 2,774,698 | ||||
(4) Premiums received | $ | 2,087,842 | $ | 3,234,528 | ||||
The accompanying notes are an integral part of these financial statements.
197
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Statements of Operations |
| For the Year Ended December 31, 2014 |
| The Internet | The Global | |||||||
| Portfolio | Portfolio | |||||||
| INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 689,663 | $ | 74,946 | ||||
| Interest | 953 | 454 | ||||||
| Income from securities lending | 39,452 | 40,094 | ||||||
| Total investment income | 730,068 | 115,494 | ||||||
| EXPENSES: | ||||||||
| Investment advisory fees | 2,067,040 | 133,928 | ||||||
| Administration fees | 71,017 | 5,511 | ||||||
| Professional fees | 17,487 | 8,565 | ||||||
| Fund accounting fees | 26,669 | 6,608 | ||||||
| Trustees’ fees | 8,480 | 610 | ||||||
| Chief Compliance Officer fees | 1,960 | 133 | ||||||
| Custodian fees and expenses | 10,979 | 15,741 | ||||||
| Other expenses | 7,703 | 455 | ||||||
| Total expenses | 2,211,335 | 171,551 | ||||||
| Net investment loss | (1,481,267 | ) | (56,057 | ) | ||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 10,596,602 | 318,326 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (9,485,968 | ) | (1,489,533 | ) | ||||
| Net realized and unrealized gain (loss) on investments | 1,110,634 | (1,171,207 | ) | |||||
| Net decrease in net assets resulting from operations | $ | (370,633 | ) | $ | (1,227,264 | ) | ||
| † Net of foreign taxes withheld of: | $ | 1,417 | $ | 11,440 | ||||
The accompanying notes are an integral part of these financial statements.
198
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Operations — (Continued) |
| For the Year Ended December 31, 2014 |
| The Paradigm | The Medical | |||||||
| Portfolio | Portfolio | |||||||
| INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 5,794,291 | $ | 444,154 | ||||
| Interest | 38,536 | 195 | ||||||
| Income from securities lending | 2,113,970 | 44,625 | ||||||
| Dividends from affiliated issuer | 100,872 | — | ||||||
| Total investment income | 8,047,669 | 488,974 | ||||||
| EXPENSES: | ||||||||
| Investment advisory fees | 16,274,284 | 329,517 | ||||||
| Administration fees | 553,420 | 11,358 | ||||||
| Professional fees | 85,971 | 9,442 | ||||||
| Fund accounting fees | 195,550 | 5,899 | ||||||
| Trustees’ fees | 73,531 | 1,471 | ||||||
| Chief Compliance Officer fees | 15,971 | 315 | ||||||
| Custodian fees and expenses | 118,193 | 13,010 | ||||||
| Other expenses | 53,730 | 1,075 | ||||||
| Total expenses | 17,370,650 | 372,087 | ||||||
| Net investment income (loss) | (9,322,981 | ) | 116,887 | |||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 37,768,737 | 724,347 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (31,751,718 | ) | 3,052,140 | |||||
| Net realized and unrealized gain on investments | 6,017,019 | 3,776,487 | ||||||
| Net increase (decrease) in net assets resulting from operations | $ | (3,305,962 | ) | $ | 3,893,374 | |||
| † Net of foreign taxes withheld of: | $ | 217,857 | $ | 32,991 | ||||
The accompanying notes are an integral part of these financial statements.
199
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Operations — (Continued) |
| For the Year Ended December 31, 2014 |
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Portfolio | Portfolio | |||||||
| INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 2,162,149 | $ | 604,855 | ||||
| Interest | 5,315 | 953 | ||||||
| Income from securities lending | 874,490 | 82,471 | ||||||
| Total investment income | 3,041,954 | 688,279 | ||||||
| EXPENSES: | ||||||||
| Investment advisory fees | 5,054,631 | 790,153 | ||||||
| Administration fees | 172,160 | 27,265 | ||||||
| Professional fees | 33,324 | 11,690 | ||||||
| Fund accounting fees | 65,301 | 13,436 | ||||||
| Trustees’ fees | 26,947 | 3,517 | ||||||
| Chief Compliance Officer fees | 5,235 | 762 | ||||||
| Custodian fees and expenses | 43,239 | 27,689 | ||||||
| Other expenses | 12,609 | 2,706 | ||||||
| Total expenses | 5,413,446 | 877,218 | ||||||
| Net investment loss | (2,371,492 | ) | (188,939 | ) | ||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 22,546,457 | 4,070,775 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (47,310,333 | ) | (7,187,539 | ) | ||||
| Net realized and unrealized loss on investments | (24,763,876 | ) | (3,116,764 | ) | ||||
| Net decrease in net assets resulting from operations | $ | (27,135,368 | ) | $ | (3,305,703 | ) | ||
| † Net of foreign taxes withheld of: | $ | 22,576 | $ | 16,991 | ||||
The accompanying notes are an integral part of these financial statements.
200
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Operations — (Continued) |
| For the Year Ended December 31, 2014 |
| The Multi- | ||||||||
| The Alternative | Disciplinary | |||||||
| Income | Income | |||||||
| Portfolio | Portfolio | |||||||
| INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 67,362 | $ | 929,057 | ||||
| Interest | 181,781 | 4,111,587 | ||||||
| Income from securities lending | 5,086 | 31,040 | ||||||
| Total investment income | 254,229 | 5,071,684 | ||||||
| EXPENSES: | ||||||||
| Investment advisory fees | 279,969 | 1,430,401 | ||||||
| Administration fees | 13,144 | 52,581 | ||||||
| Professional fees | 9,660 | 14,726 | ||||||
| Fund accounting fees | 63,631 | 39,836 | ||||||
| Trustees’ fees | 1,855 | 6,231 | ||||||
| Chief Compliance Officer fees | 345 | 1,307 | ||||||
| Custodian fees and expenses | 9,918 | 19,262 | ||||||
| Other expenses | 974 | 3,990 | ||||||
| Total expenses | 379,496 | 1,568,334 | ||||||
| Net investment income (loss) | (125,267 | ) | 3,503,350 | |||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments and foreign currency | (42,605 | ) | (849,347 | ) | ||||
| Written option contracts expired or closed | 512,251 | 2,705,128 | ||||||
| Long term realized gain distributions received from other | ||||||||
| investment companies | 3,937 | 68,109 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (36,162 | ) | (903,970 | ) | ||||
| Written option contracts | (73,042 | ) | (2,326,852 | ) | ||||
| Net realized and unrealized gain (loss) on investments | 364,379 | (1,306,932 | ) | |||||
| Net increase in net assets resulting from operations | $ | 239,112 | $ | 2,196,418 | ||||
The accompanying notes are an integral part of these financial statements.
201
| 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 | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment loss | $ | (1,481,267 | ) | $ | (1,454,560 | ) | $ | (56,057 | ) | $ | (11,316 | ) | ||||
| Net realized gain on sale of | ||||||||||||||||
| investments and foreign currency | 10,596,602 | 11,541,829 | 318,326 | 66,987 | ||||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments and | ||||||||||||||||
| foreign currency | (9,485,968 | ) | 52,885,945 | (1,489,533 | ) | 2,171,749 | ||||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from operations | (370,633 | ) | 62,973,214 | (1,227,264 | ) | 2,227,420 | ||||||||||
| NET INCREASE (DECREASE) IN NET | ||||||||||||||||
| ASSETS RESULTING FROM | ||||||||||||||||
| BENEFICIAL INTEREST | ||||||||||||||||
| TRANSACTIONS: | ||||||||||||||||
| Contributions | 4,258,113 | 12,808,479 | 1,321,420 | 4,489,494 | ||||||||||||
| Withdrawals | (25,200,462 | ) | (53,634,097 | ) | (3,431,883 | ) | (1,037,208 | ) | ||||||||
| Net increase (decrease) in net | ||||||||||||||||
| assets resulting from beneficial | ||||||||||||||||
| interest transactions | (20,942,349 | ) | (40,825,618 | ) | (2,110,463 | ) | 3,452,286 | |||||||||
| Total increase (decrease) in net assets | (21,312,982 | ) | 22,147,596 | (3,337,727 | ) | 5,679,706 | ||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 178,859,044 | 156,711,448 | 12,217,115 | 6,537,409 | ||||||||||||
| End of year | $ | 157,546,062 | $ | 178,859,044 | $ | 8,879,388 | $ | 12,217,115 | ||||||||
The accompanying notes are an integral part of these financial statements.
202
| 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 | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (9,322,981 | ) | $ | (2,519,178 | ) | $ | 116,887 | $ | (4,268 | ) | |||||
| Net realized gain (loss) on sale of | ||||||||||||||||
| investments and foreign currency | 37,768,737 | 992,713 | 724,347 | (341,050 | ) | |||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments and | ||||||||||||||||
| foreign currency | (31,751,718 | ) | 400,868,795 | 3,052,140 | 8,692,907 | |||||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from operations | (3,305,962 | ) | 399,342,330 | 3,893,374 | 8,347,589 | |||||||||||
| NET INCREASE (DECREASE) IN NET | ||||||||||||||||
| ASSETS RESULTING FROM | ||||||||||||||||
| BENEFICIAL INTEREST | ||||||||||||||||
| TRANSACTIONS: | ||||||||||||||||
| Contributions | 41,918,037 | 130,575,410 | 2,943,930 | 5,013,915 | ||||||||||||
| Withdrawals | (174,025,392 | ) | (85,425,092 | ) | (4,510,015 | ) | (5,881,082 | ) | ||||||||
| Net increase (decrease) in net | ||||||||||||||||
| assets resulting from beneficial | ||||||||||||||||
| interest transactions | (132,107,355 | ) | 45,150,318 | (1,566,085 | ) | (867,167 | ) | |||||||||
| Total increase (decrease) in net assets | (135,413,317 | ) | 444,492,648 | 2,327,289 | 7,480,422 | |||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 1,327,743,597 | 883,250,949 | 24,789,338 | 17,308,916 | ||||||||||||
| End of year | $ | 1,192,330,280 | $ | 1,327,743,597 | $ | 27,116,627 | $ | 24,789,338 | ||||||||
The accompanying notes are an integral part of these financial statements.
203
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Changes in Net Assets — (Continued) |
| The Small Cap | The Market | |||||||||||||||
| Opportunities Portfolio | Opportunities Portfolio | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (2,371,492 | ) | $ | 23,416 | $ | (188,939 | ) | $ | 156,009 | ||||||
| Net realized gain on sale of | ||||||||||||||||
| investments, foreign currency and | ||||||||||||||||
| distributions received from other | ||||||||||||||||
| investment companies | 22,546,457 | 912,482 | 4,070,775 | 4,587,167 | ||||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments and | ||||||||||||||||
| foreign currency | (47,310,333 | ) | 74,243,893 | (7,187,539 | ) | 16,103,917 | ||||||||||
| Net increase (decrease) in net assets | ||||||||||||||||
| resulting from operations | (27,135,368 | ) | 75,179,791 | (3,305,703 | ) | 20,847,093 | ||||||||||
| NET INCREASE (DECREASE) IN NET | ||||||||||||||||
| ASSETS RESULTING FROM | ||||||||||||||||
| BENEFICIAL INTEREST | ||||||||||||||||
| TRANSACTIONS: | ||||||||||||||||
| Contributions | 137,470,247 | 200,357,556 | 7,541,435 | 28,774,153 | ||||||||||||
| Withdrawals | (105,175,818 | ) | (9,127,095 | ) | (16,421,154 | ) | (26,698,470 | ) | ||||||||
| Net increase (decrease) in net | ||||||||||||||||
| assets resulting from beneficial | ||||||||||||||||
| interest transactions | 32,294,429 | 191,230,461 | (8,879,719 | ) | 2,075,683 | |||||||||||
| Total increase (decrease) in net assets | 5,159,061 | 266,410,252 | (12,185,422 | ) | 22,922,776 | |||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 347,998,235 | 81,587,983 | 66,561,313 | 43,638,537 | ||||||||||||
| End of year | $ | 353,157,296 | $ | 347,998,235 | $ | 54,375,891 | $ | 66,561,313 | ||||||||
The accompanying notes are an integral part of these financial statements.
204
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Statements of Changes in Net Assets — (Continued) |
| The Alternative | The Multi-Disciplinary | |||||||||||||||
| Income Portfolio | Income Portfolio | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (125,267 | ) | $ | (93,420 | ) | $ | 3,503,350 | $ | 1,621,053 | ||||||
| Net realized gain on sale of | ||||||||||||||||
| investments, foreign currency, | ||||||||||||||||
| written options, securities sold | ||||||||||||||||
| short and distributions received | ||||||||||||||||
| from other investment companies | 473,583 | 332,007 | 1,923,890 | 2,381,562 | ||||||||||||
| Net change in unrealized appreciation | ||||||||||||||||
| (depreciation) of investments, | ||||||||||||||||
| foreign currency, written options | ||||||||||||||||
| and securities sold short | (109,204 | ) | 599,148 | (3,230,822 | ) | (743,581 | ) | |||||||||
| Net increase in net assets | ||||||||||||||||
| resulting from operations | 239,112 | 837,735 | 2,196,418 | 3,259,034 | ||||||||||||
| NET INCREASE IN NET ASSETS | ||||||||||||||||
| RESULTING FROM BENEFICIAL | ||||||||||||||||
| INTEREST TRANSACTIONS: | ||||||||||||||||
| Contributions | 21,281,441 | 15,277,302 | 67,848,185 | 49,389,741 | ||||||||||||
| Withdrawals | (6,843,392 | ) | (3,357,344 | ) | (24,821,261 | ) | (21,888,150 | ) | ||||||||
| Net increase in net assets | ||||||||||||||||
| resulting from beneficial | ||||||||||||||||
| interest transactions | 14,438,049 | 11,919,958 | 43,026,924 | 27,501,591 | ||||||||||||
| Total increase in net assets | 14,677,161 | 12,757,693 | 45,223,342 | 30,760,625 | ||||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of year | 23,553,031 | 10,795,338 | 90,311,508 | 59,550,883 | ||||||||||||
| End of year | $ | 38,230,192 | $ | 23,553,031 | $ | 135,534,850 | $ | 90,311,508 | ||||||||
The accompanying notes are an integral part of these financial statements.
205
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
| Notes to Financial Statements |
| December 31, 2014 |
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 Market Opportunities Portfolio, The Alternative Income Portfolio and The Multi-Disciplinary Income Portfolio (collectively, the “Master Portfolios”). Pursuant to the 1940 Act, the Master Portfolios, are “non-diversified” series of the Trust, except The Global Portfolio and The Multi-Disciplinary Income Portfolio. The Market Opportunities Portfolio commenced operations on January 31, 2006, The Alternative Income Portfolio commenced operations on June 29, 2007 and The Multi-Disciplinary Income Portfolio commenced operations on February 11, 2008. Each of the remaining Master Portfolios commenced operations on April 28, 2000.
Each Master Portfolio is a Master Investment Portfolio in a master-feeder fund structure. Each Master Portfolio has multiple feeder funds invested in the Master Portfolio. By contributing assets to the Master Portfolio, the feeder funds receive a beneficial interest in the Master Portfolio. The Master Portfolio then invests the contributed assets in portfolio securities and allocates income, gains (losses) and expenses to the feeder funds based on the feeder funds’ proportionate interests in the Master Portfolio.
Each of the Master Portfolios, except for The Alternative Income Portfolio and The Multi-Disciplinary Income Portfolio, seeks to provide investors with long-term capital growth. The Alternative Income Portfolio seeks to provide current income and gains. The Multi-Disciplinary Income Portfolio seeks to provide investors with total return. The Internet Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in the Internet and Internet-related activities. The Global Portfolio generally invests in the equity securities of foreign companies that have the ability to facilitate an increase in the growth of their traditional business lines and in U.S. companies benefiting from international economic growth. The Paradigm Portfolio invests primarily in the equity securities of U.S. and foreign companies that the investment adviser believes are undervalued and that have high returns on equity and are well positioned to reduce their costs, extend the reach of their distribution channels
206
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
and experience significant growth in their assets or revenues. The Medical Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in medical research, pharmaceutical treatments and related medical technology industries and related technology industries, generally, with a focus on companies engaged in cancer research and drug development. The Small Cap Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign small capitalized companies that provide attractive valuation opportunities due to special situations such as lack of institutional ownership, lack of significant analyst coverage or companies with sound fundamentals that have experienced a short-term earnings shortfall. The Market Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in capital markets or related to capital markets, as well as companies involved in the gaming industry. The Alternative Income and Multi-Disciplinary Income Portfolios utilize a two-part investment strategy, which includes fixed income and derivatives components.
2. Significant Accounting Policies
Security Valuation
Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which an option is quoted thus providing a view across the entire U.S. options marketplace. Composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. If the composite option price is not available, the mean between the highest bid
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
and the lowest asked quotations at the close of the exchanges will be used. If none of the above are available, exchange traded options are valued at the last quoted sales price. Non-exchange traded options for which over-the-counter quotations are not readily available are valued at the mean of the current bid and asked prices. Debt obligations (including convertible securities) that are either investment grade or non-investment grade and irrespective of days to maturity will be valued as follows: Debt securities are valued at evaluated mean by one of the authorized third party pricing agents which rely on various valuation methodologies such as matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. Investments in registered open-end investment companies other than exchange-traded funds are valued at their reported net asset value (“NAV”). Certain instruments such as repurchase agreements and demand notes, are traded at cost and there are no market values available for those instruments from third parties. Those instruments are priced at cost.
Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Adviser or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Adviser; (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At December 31, 2014, 0.00%, 0.00% and 0.00% of the net assets of The Internet Portfolio, The Paradigm Portfolio and The Market Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at December 31, 2014.
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
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
of a national securities exchange or are primary dealers in U.S. Government Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 102% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults, and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.
Written Options
The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When a Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.
Foreign Currency Translations
The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market 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
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
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 year. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.
Restricted and Illiquid Securities
The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At December 31, 2014 the following Master Portfolios held securities restricted to institutional investors (144A Securities):
| Percentage of | ||||||||
| Market Value | Net Assets | |||||||
| The Alternative Income Portfolio | $ | 655,485 | 1.71 | % | ||||
| The Multi-Disciplinary Income Portfolio | 24,733,665 | 18.25 | % | |||||
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 December 31, 2014, the following Master Portfolios held illiquid securities:
| Percentage of | ||||||||
| Market Value | Net Assets | |||||||
| The Internet Portfolio | $ | — | * | 0.00 | % | |||
| The Paradigm Portfolio | — | * | 0.00 | % | ||||
| The Market Opportunities Portfolio | — | * | 0.00 | % | ||||
| The Multi-Disciplinary Income Portfolio | 367,500 | 0.27 | % | |||||
__________________
* Amount is less than $0.50.
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
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
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 Master Portfolio (including any collateral posted) or 50% of the total assets of each Master Portfolio (excluding any collateral posted). Securities lending and repurchase transactions will be fully collateralized at all times with cash and/or short-term debt obligations. The Master Portfolios receive interest on the collateral received as well as a fee for the securities loaned.
Short-Term Investments
The Portfolios may invest in money market funds and short-term high quality debt securities such as commercial paper, repurchase agreements and certificates of deposit. Money market funds typically invest in short-term instruments and attempt to maintain a stable net asset value. While the risk is low, these funds may lose value. At December 31, 2014, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, and The Multi-Disciplinary Income Portfolio invested approximately 3%, 7%, 7%, 11%, 11%, 6%, and 2%, respectively, of net assets in the Mount Vernon Securities Lending Trust-Prime Portfolio which normally invests in short-term instruments with an objective of maximizing current income to the extent consistent with the preservation of capital and liquidity. Mount Vernon Securities Lending Trust-Prime Portfolio’s financial statements are available on the SEC website www.sec.gov.
Expense Allocation
Common expenses incurred by the Master Portfolios are allocated among the Master Portfolios (i) based upon relative average net assets, (ii) as incurred on a
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
specific identification basis, or (iii) equally among the Master Portfolios, depending on the nature of the expenditure. All expenses incurred by the Master Portfolios are allocated to the feeder funds daily based on their proportionate interests in the respective Master Portfolios.
Federal Income Taxes
Each Master Portfolio will be treated as a partnership for federal income tax purposes. As such, each investor in a Master Portfolio will be subject to taxation on its share of the Master Portfolio’s ordinary income and capital gains. It is intended that each Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of subchapter M of the Internal Revenue Code.
There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. As of December 31, 2014, open tax years include the tax years ended December 31, 2011 through 2014. The Master Portfolios are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Other
Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis and includes amortization of premiums and discounts on the interest method. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
3. Investment Adviser
The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management LLC (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Master Portfolios. The Adviser is a wholly-owned subsidiary of Horizon Kinetics LLC. Under the terms of the Agreements, the Master Portfolios, except the Alternative Income Portfolio, compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets. The Alternative Income Portfolio compensates the Adviser for its management services at the annual rate of 0.90% of the Master Portfolio’s average daily net assets.
For the year ended December 31, 2014, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Alternative Income Portfolio and The Multi-Disciplinary Income Portfolio incurred expenses of $2,067,040, $133,928, $16,274,284, $329,517, $5,054,631, $790,153, $279,969 and $1,430,401, respectively, pursuant to the Agreements.
For the year ended December 31, 2014, the Trust was allocated $26,000 for the services of the Chief Compliance Officer employed by the Adviser.
4. Securities Transactions
Purchases and sales of investment securities, other than short-term investments, for the year ended December 31, 2014 were as follows:
| Purchases | Sales | |||||||||||||||
| U.S. | U.S. | |||||||||||||||
| Government | Other | Government | Other | |||||||||||||
| The Internet Portfolio | $ | — | $ | 1,309,407 | $ | — | $ | 20,018,037 | ||||||||
| The Global Portfolio | — | 1,430,797 | — | 2,753,346 | ||||||||||||
| The Paradigm Portfolio | — | 87,956,559 | — | 189,262,608 | ||||||||||||
| The Medical Portfolio | — | 710,421 | — | 2,091,220 | ||||||||||||
| The Small Cap | ||||||||||||||||
| Opportunities Portfolio | — | 124,449,656 | — | 74,482,019 | ||||||||||||
| The Market | ||||||||||||||||
| Opportunities Portfolio | — | 9,800,270 | — | 14,886,699 | ||||||||||||
| The Alternative Income Portfolio | 1,197,063 | 19,073,114 | — | 4,857,835 | ||||||||||||
| The Multi-Disciplinary | ||||||||||||||||
| Income Portfolio | — | 99,830,387 | — | 36,440,642 | ||||||||||||
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
As of December 31, 2014, the cost of investments and unrealized appreciation (depreciation) on investment securities for federal income tax purposes was as follows:
| Internet | Global | Paradigm | Medical | |||||||||||||
| Tax cost of investments | $ | 80,772,154 | $ | 8,022,574 | $ | 882,649,455 | $ | 19,583,297 | ||||||||
| Unrealized Appreciation | 81,985,567 | 2,261,245 | 477,423,655 | 12,423,761 | ||||||||||||
| Unrealized Depreciation | (568,128 | ) | (956,775 | ) | (83,152,865 | ) | (1,922,627 | ) | ||||||||
| Net unrealized appreciation | ||||||||||||||||
| (depreciation) | $ | 81,417,439 | $ | 1,304,470 | $ | 394,270,790 | $ | 10,501,134 | ||||||||
| Multi- | ||||||||||||||||
| Market | Alternative | Disciplinary | ||||||||||||||
| Small Cap | Opportunities | Income | Income | |||||||||||||
| Tax cost of investments | $ | 356,139,953 | $ | 44,192,156 | $ | 38,610,756 | $ | 139,260,571 | ||||||||
| Unrealized Appreciation | 75,314,796 | 16,693,253 | 264,579 | 2,480,685 | ||||||||||||
| Unrealized Depreciation | (41,943,876 | ) | (4,395,637 | ) | (357,911 | ) | (6,271,594 | ) | ||||||||
| Net unrealized appreciation | ||||||||||||||||
| (depreciation) | $ | 33,370,920 | $ | 12,297,616 | $ | (93,332 | ) | $ | (3,790,909 | ) | ||||||
For the year ended December 31, 2014, the Master Portfolios wrote the following options:
| Number | Premium | |||||||
| of Contracts | Amount | |||||||
| The Alternative Income Portfolio | ||||||||
| Outstanding at the Beginning of the Year | 6,199 | $ | 1,141,683 | |||||
| Options Written | 10,648 | 2,332,746 | ||||||
| Options Expired | (1,627 | ) | (141,143 | ) | ||||
| Options Closed | (6,747 | ) | (1,245,444 | ) | ||||
| Outstanding at December 31, 2014 | 8,473 | $ | 2,087,842 | |||||
| The Multi-Disciplinary Income Portfolio | ||||||||
| Outstanding at the Beginning of the Year | 20,763 | $ | 5,343,721 | |||||
| Options Written | 6,777 | 2,039,900 | ||||||
| Options Exercised | (716 | ) | (139,982 | ) | ||||
| Options Expired | (13,768 | ) | (2,954,114 | ) | ||||
| Options Closed | (2,284 | ) | (1,054,997 | ) | ||||
| Outstanding at December 31, 2014 | 10,772 | $ | 3,234,528 | |||||
5. Portfolio Securities Loaned
As of December 31, 2014, 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
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
as well as a fee for the securities loaned. The Master Portfolios will continue to receive dividends and interest on all securities loaned. Gain or loss in the fair value of the securities loaned that may occur during the term of the loan will be accounted for by the Master Portfolios. The value of the securities on loan and the value of the related collateral at December 31, 2014, were as follows:
| Securities | Collateral | |||||||
| The Internet Portfolio | $ | 4,163,840 | $ | 4,380,634 | ||||
| The Global Portfolio | 579,021 | 602,851 | ||||||
| The Paradigm Portfolio | 77,035,587 | 80,379,397 | ||||||
| The Medical Portfolio | 2,761,329 | 2,947,749 | ||||||
| The Small Cap Opportunities Portfolio | 38,484,035 | 40,433,435 | ||||||
| The Market Opportunities Portfolio | 3,101,003 | 3,228,685 | ||||||
| The Alternative Income Portfolio | — | — | ||||||
| The Multi-Disciplinary Income Portfolio | 2,774,698 | 2,872,260 | ||||||
6. Selected Financial Highlights
Financial highlights for the Master Portfolios were as follows:
| The Internet Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | 0.28 | % | 44.75 | % | 23.76 | % | (1.47 | )% | 21.70 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.34 | % | 1.37 | % | 1.37 | % | 1.38 | % | 1.37 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | (0.90 | )% | (0.84 | )% | 0.16 | % | (0.43 | )% | (0.33 | )% | ||||||||||
| Portfolio turnover rate | 1 | % | 8 | % | 9 | % | 32 | % | 12 | % | ||||||||||
| The Global Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | (12.10 | )% | 28.25 | % | 22.78 | % | (16.25 | )% | 19.26 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.60 | % | 1.73 | % | 1.77 | % | 2.23 | % | 2.43 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | (0.52 | )% | (0.12 | )% | 0.40 | % | 0.61 | % | (0.51 | )% | ||||||||||
| Portfolio turnover rate | 14 | % | 15 | % | 23 | % | 135 | % | 122 | % | ||||||||||
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
| The Paradigm Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | (0.48 | )% | 44.36 | % | 22.06 | % | (14.00 | )% | 17.65 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.33 | % | 1.35 | % | 1.36 | % | 1.37 | % | 1.36 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | (0.72 | )% | (0.23 | )% | 0.50 | % | 0.37 | % | 0.83 | % | ||||||||||
| Portfolio turnover rate | 7 | % | 4 | % | 6 | % | 58 | % | 7 | % | ||||||||||
| The Medical Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | 16.42 | % | 49.23 | % | 8.81 | % | 5.10 | % | 4.30 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.41 | % | 1.41 | % | 1.44 | % | 1.40 | % | 1.39 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | 0.44 | % | (0.02 | )% | 1.62 | % | 0.86 | % | 0.55 | % | ||||||||||
| Portfolio turnover rate | 3 | % | 12 | % | 0 | % | 5 | % | 3 | % | ||||||||||
| The Small Cap Opportunities Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | (6.98 | )% | 59.69 | % | 26.94 | % | (13.44 | )% | 14.08 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.34 | % | 1.35 | % | 1.44 | % | 1.43 | % | 1.42 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | (0.59 | )% | 0.01 | % | 0.27 | % | 0.03 | % | 0.02 | % | ||||||||||
| Portfolio turnover rate | 19 | % | 6 | % | 22 | % | 47 | % | 4 | % | ||||||||||
| The Market Opportunities Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | (5.30 | )% | 46.98 | % | 17.73 | % | (7.63 | )% | 11.53 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.39 | % | 1.40 | % | 1.43 | % | 1.42 | % | 1.42 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | (0.30 | )% | 0.27 | % | 0.44 | % | 0.30 | % | 0.56 | % | ||||||||||
| Portfolio turnover rate | 18 | % | 21 | % | 26 | % | 14 | % | 12 | % | ||||||||||
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
| The Alternative Income Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | 1.23 | % | 4.92 | % | 10.05 | % | (4.66 | )% | (4.43 | )% | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.22 | % | 1.25 | % | 1.49 | % | 1.42 | % | 1.47 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | (0.40 | )% | (0.54 | )% | 1.99 | % | 1.47 | % | 1.04 | % | ||||||||||
| Portfolio turnover rate | 17 | % | 19 | % | 56 | % | 69 | % | 111 | % | ||||||||||
| The Multi-Disciplinary Income Portfolio | ||||||||||||||||||||
| For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
| Total Return* | 2.58 | % | 4.39 | % | 15.42 | % | 0.19 | % | 12.12 | % | ||||||||||
| Ratio of expenses to | ||||||||||||||||||||
| average net assets: | 1.37 | % | 1.39 | % | 1.45 | % | 1.54 | % | 2.41 | % | ||||||||||
| Ratio of net investment | ||||||||||||||||||||
| income (loss) to | ||||||||||||||||||||
| average net assets: | 3.06 | % | 1.87 | % | 3.23 | % | 8.00 | % | 2.58 | % | ||||||||||
| Portfolio turnover rate | 35 | % | 54 | % | 41 | % | 74 | % | 38 | % | ||||||||||
| * | The returns are calculated by adjusting the corresponding No-Load Feeder returns by Feeder expenses and reimbursements. | |
7. Summary of Fair Value Exposure
Security Valuation
Various inputs are used in determining the value of a Master Portfolio’s investments. These inputs are summarized in the three broad levels listed below:
| Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that a Master Portfolio has the ability to access. | |
| Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. |
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
| Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing a Master Portfolio’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The Internet Portfolio
The following is a summary of the inputs used to value The Internet Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 154,326,163 | $ | 24,077 | (1) | $ | — | (2)* | $ | 154,350,240 | ||||||
| Escrow Notes | — | — | — | * | — | |||||||||||
| Rights | 317,250 | — | — | 317,250 | ||||||||||||
| Short-Term Investments | 469 | 3,141,000 | † | — | 3,141,469 | |||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 4,380,634 | — | — | 4,380,634 | ||||||||||||
| Total Investments in Securities | $ | 159,024,516 | $ | 3,165,077 | $ | — | $ | 162,189,593 | ||||||||
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industry: | |
| Telecommunications | $ | 24,077 |
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| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
| (2) | The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industry: |
| Holding Company | $ | — | * | |
| Transfers out of Level 1 into Level 2 | $ | 24,077 | ||
| Transfers out of Level 2 into Level 1 | $ | 4,212 |
Transfers were made out of Level 1 into Level 2 due to a decrease in market activity. Transfers were made out of Level 2 into Level 1 due to an increase in market activity. Transfers between levels are recognized at the end of the reporting period.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |||
| Balance as of December 31, 2013 | $ | — | * | |
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | — | |||
| Change in unrealized appreciation (depreciation) | — | |||
| Net purchases | — | |||
| Net sales | — | |||
| Transfer in and/or out of Level 3 | — | |||
| Balance as of December 31, 2014 | $ | — | * | |
| Fair Value at | Valuation | Unobservable | ||||||
| Description | 12/31/2014 | Techniques | Input | Range | ||||
| Common Stocks | $—* | Delisted-Acquired by the U.S. Government/ Market Comparables | No active market | $ | 0.00-$0.00 | |||
| Escrow Notes | —* | Conservative Value Assigned Pending Bankruptcy Litigation Proceedings/Market Comparables | No active market | $ | 0.00-$0.00 |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| * | Amount is less than $0.50. | |
| † | Priced at amortized cost. | |
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| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Global Portfolio
The following is a summary of the inputs used to value The Global Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 7,939,443 | $ | 540,344 | (1) | $ | — | $ | 8,479,787 | |||||||
| Corporate Bonds | — | 35,945 | — | 35,945 | ||||||||||||
| Mutual Funds | 52,200 | — | — | 52,200 | ||||||||||||
| Rights | 5,130 | 17,401 | — | 22,531 | ||||||||||||
| Warrants | 28,704 | — | — | 28,704 | ||||||||||||
| Short-Term Investments | 26 | 105,000 | † | — | 105,026 | |||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 602,851 | — | — | 602,851 | ||||||||||||
| Total Investments in Securities | $ | 8,628,354 | $ | 698,690 | $ | — | $ | 9,327,044 | ||||||||
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries: | |
| Holding Company | $ | 35,930 | ||
| Oil and Gas Extraction | 66,621 | |||
| Real Estate | 407,017 | |||
| Restaurants | 679 | |||
| Telecommunications | 30,097 | |||
| $ | 540,344 | |||
| Transfers out of Level 1 into Level 2 | $ | 100,370 | ||
| Transfers out of Level 2 into Level 1 | $ | 529,127 |
Transfers were made out of Level 1 into Level 2 due to a decrease in market activity.
Transfers were made out of Level 2 into Level 1 due to an increase in market activity.
Transfers between levels are recognized at the end of the reporting period.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| † | Priced at amortized cost. | |
220
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Paradigm Portfolio
The following is a summary of the inputs used to value The Paradigm Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 1,105,708,269 | $ | 17,283,644 | (1) | $ | — | (2)* | $ | 1,122,991,913 | ||||||
| Corporate Bonds | — | 2,446,535 | — | 2,446,535 | ||||||||||||
| Escrow Notes | — | — | — | * | — | * | ||||||||||
| Mutual Funds | 19,800 | — | — | 19,800 | ||||||||||||
| Rights | 889,770 | — | — | 889,770 | ||||||||||||
| Warrants | 1,954,130 | — | — | 1,954,130 | ||||||||||||
| Short-Term Investments | 7,968,700 | 60,270,000 | † | — | 68,238,700 | |||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 80,379,397 | — | — | 80,379,397 | ||||||||||||
| Total Investments in Securities | $ | 1,196,920,066 | $ | 80,000,179 | $ | — | * | $ | 1,276,920,245 | |||||||
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries: | |
| Holding Company | $ | 21,518 | ||
| Oil and Gas Extraction | 14,779,483 | |||
| Real Estate | 2,477,964 | |||
| Restaurants | 4,679 | |||
| $ | 17,283,644 | |||
| Transfers out of Level 1 into Level 2 | $ | 14,779,483 | ||
| Transfers out of Level 2 into Level 1 | $ | 2,227,500 |
| (2) | The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industry: |
| Holding Company | $ | — | * |
Transfers were made out of Level 1 into Level 2 due to a decrease in market activity.
Transfers were made out of Level 2 into Level 1 due to an increase in market activity.
Transfers between levels are recognized at the end of the reporting period.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |||
| Balance as of December 31, 2013 | $ | — | * | |
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | — | |||
| Change in unrealized appreciation (depreciation) | — | |||
| Net purchases | — | |||
| Net sales | — | |||
| Transfer in and/or out of Level 3 | — | |||
| Balance as of December 31, 2014 | $ | — | * | |
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| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
| Fair Value at | Valuation | Unobservable | ||||||
| Description | 12/31/2014 | Techniques | Input | Range | ||||
| Common Stocks | $—* | Delisted-Acquired by the U.S. Government/Market Comparables | No active market | $ | 0.00-$0.00 | |||
| Escrow Notes | —* | Conservative Value Assigned Pending Bankruptcy Litigation Proceedings/Market Comparables | No active market | $ | 0.00-$0.00 |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| * | Amount is less than $0.50. | |
| † | Priced at amortized cost. | |
The Medical Portfolio
The following is a summary of the inputs used to value The Medical Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 26,383,585 | $ | — | $ | — | $ | 26,383,585 | ||||||||
| Rights | 20,393 | — | — | 20,393 | ||||||||||||
| Short-Term Investments | 704 | 732,000 | † | — | 732,704 | |||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 2,947,749 | — | — | 2,947,749 | ||||||||||||
| Total Investments in Securities | $ | 29,352,431 | $ | 732,000 | $ | — | $ | 30,084,431 | ||||||||
For the year ended December 31, 2014, there were no transfers into or out of Level 1 or Level 2, or investments in Level 3 securities.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |||
| Balance as of December 31, 2013 | $ | — | * | |
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | 3,813 | |||
| Change in unrealized appreciation (depreciation) | — | |||
| Net purchases | — | |||
| Net sales | (3,813 | ) | ||
| Transfer in and/or out of Level 3 | — | |||
| Balance as of December 31, 2014 | $ | — | ||
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| † | Priced at amortized cost. | |
222
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Small Cap Opportunities Portfolio
The following is a summary of the inputs used to value The Small Cap Opportunities Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 311,192,333 | $ | 36,954,482 | (1) | $ | — | $ | 348,146,815 | |||||||
| Corporate Bonds | — | 247,975 | — | 247,975 | ||||||||||||
| Rights | 484,594 | — | — | 484,594 | ||||||||||||
| Warrants | 198,054 | — | — | 198,054 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 40,433,435 | — | — | 40,433,435 | ||||||||||||
| Total Investments in Securities | $ | 352,308,416 | $ | 37,202,457 | $ | — | $ | 389,510,873 | ||||||||
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries: | |
| Asset Management | $ | 13,151,739 | ||
| Holding Company | 5,137,502 | |||
| Real Estate | 18,641,031 | |||
| Telecommunications | 24,210 | |||
| $ | 36,954,482 | |||
| Transfers out of Level 1 into Level 2 | $ | 24,210 | ||
| Transfers out of Level 2 into Level 1 | $ | 86,896 |
Transfers were made out of Level 1 into Level 2 due to a decrease in market activity.
Transfers were made out of Level 2 into Level 1 due to an increase in market activity.
Transfers between levels are recognized at the end of the reporting period.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
The Market Opportunities Portfolio
The following is a summary of the inputs used to value The Market Opportunities Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 44,760,318 | $ | 3,158,979 | (1) | $ | — | $ | 47,919,297 | |||||||
| Corporate Bonds | — | 5,005 | — | 5,005 | ||||||||||||
| Mutual Funds | 1,800 | — | — | 1,800 | ||||||||||||
| Rights | — | — | — | * | — | * | ||||||||||
| Warrants | 3,986 | — | — | 3,986 | ||||||||||||
| Short-Term Investments | 2,664,999 | 2,666,000 | † | — | 5,330,999 | |||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 3,228,685 | — | — | 3,228,685 | ||||||||||||
| Total Investments in Securities | $ | 50,659,788 | $ | 5,829,984 | $ | — | * | $ | 56,489,772 | |||||||
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Notes to Financial Statements — (Continued) |
| December 31, 2014 |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries: | |
| Holding Company | $ | 1,153,921 | ||
| Real Estate | 2,005,058 | |||
| $ | 3,158,979 |
For the year ended December 31, 2014, there were no transfers into or out of Level 1 or Level 2.
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Description | Investments in Securities | |||
| Balance as of December 31, 2013 | $ | 41,105 | ||
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | (883,640 | ) | ||
| Change in unrealized appreciation (depreciation) | 884,919 | |||
| Net purchases | — | |||
| Net sales | (42,384 | ) | ||
| Transfer in and/or out of Level 3 | — | |||
| Balance as of December 31, 2014 | $ | — | * | |
| Fair Value at | Valuation | Unobservable | ||||||
| Description | 12/31/2014 | Techniques | Input | Range | ||||
| Rights | $— | Market Comparables | No active market | $0.00-$0.00 |
There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| * | Amount is less than $0.50. | |
| † | Priced at amortized cost. | |
The Alternative Income Portfolio
The following is a summary of the inputs used to value The Alternative Income Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds | $ | — | $ | 24,748,564 | $ | — | $ | 24,748,564 | ||||||||
| U.S. Government Agency Issues | — | 1,232,496 | — | 1,232,496 | ||||||||||||
| U.S. Treasury Obligations | — | 2,098,391 | — | 2,098,391 | ||||||||||||
| Exchange Traded Funds | 7,272,273 | — | — | 7,272,273 | ||||||||||||
| Purchased Put Options | — | 57,194 | — | 57,194 | ||||||||||||
| Short-Term Investments | 1,565,506 | 1,543,000 | † | — | 3,108,506 | |||||||||||
| Total Investments in Securities | $ | 8,837,779 | $ | 29,679,645 | $ | — | $ | 38,517,424 | ||||||||
| Liabilities | ||||||||||||||||
| Written Options | $ | — | $ | 1,554,356 | $ | — | $ | 1,554,356 | ||||||||
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| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
For the year ended December 31, 2014, there were no transfers into or out of Level 1 or Level 2, or investments in Level 3 securities.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| † | Priced at amortized cost. | |
The Multi-Disciplinary Income Portfolio
The following is a summary of the inputs used to value The Multi-Disciplinary Income Portfolio’s net assets as of December 31, 2014:
| Assets^ | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Convertible Bonds | $ | — | $ | 16,983,459 | $ | — | $ | 16,983,459 | ||||||||
| Corporate Bonds | — | 91,396,323 | — | 91,396,323 | ||||||||||||
| Municipal Bonds | — | 367,500 | — | 367,500 | ||||||||||||
| Escrow Notes | — | 95,000 | — | 95,000 | ||||||||||||
| Exchange Traded Notes | 4,177 | — | — | 4,177 | ||||||||||||
| Mutual Funds | 10,325,127 | — | — | 10,325,127 | ||||||||||||
| Purchased Put Options | — | 1,557,389 | — | 1,557,389 | ||||||||||||
| Short-Term Investments | 5,929,427 | 5,939,000 | † | — | 11,868,427 | |||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 2,872,260 | — | — | 2,872,260 | ||||||||||||
| Total Investments in Securities | $ | 19,130,991 | $ | 116,338,671 | $ | — | $ | 135,469,662 | ||||||||
| Liabilities | ||||||||||||||||
| Written Options | $ | — | $ | 2,229,842 | $ | — | $ | 2,229,842 | ||||||||
For the year ended December 31, 2014, there were no transfers into or out of Level 1 or Level 2, or investments in Level 3 securities.
| ^ | See Portfolio of Investments for breakout of investments by industry classification. | |
| † | Priced at amortized cost. | |
8. Disclosures about Derivative Instruments and Hedging Activities
The Master Portfolios have adopted enhanced disclosure regarding derivatives and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why a Master Portfolio uses derivatives, how derivatives are accounted for by the Master Portfolios, and how derivative instruments affect a Master Portfolio’s results of operations and financial position. The Master Portfolios utilized options to implement or to gain further exposure to their respective investment strategies.
225
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Alternative Income Portfolio
Statement of Assets and Liabilities
Fair Values of derivative instruments as of December 31, 2014:
| Assets | Liabilities | |||||||||||
| Equity Contracts | Description | Fair Value | Description | Fair Value | ||||||||
| Investments, at | ||||||||||||
| Purchased Put Options | value | $ | 57,194 | $ | — | |||||||
| Total | $ | 57,194 | ||||||||||
| Written put option | ||||||||||||
| Written Put Options | $ | — | contracts, at value | $ | 1,554,356 | |||||||
| Total | $ | — | $ | 1,554,356 | ||||||||
Statement of Operations
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2014:
Amount of Realized Gain (Loss) on Equity Contracts
| Equity Contracts | ||||
| Purchased Put Options | $ | — | ||
| Written Put Options | 512,251 | |||
| Total | $ | 512,251 | ||
Change in Unrealized Appreciation (Depreciation) on Equity Contracts
| Equity Contracts | ||||
| Purchased Put Options | $ | (15,984 | ) | |
| Written Put Options | (73,042 | ) | ||
| Total | $ | (89,026 | ) | |
The Alternative Income Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For the year ended December 31, 2014: written option contracts (10,648 contracts) were opened and $2,332,746 premiums were received during the year, purchased option contracts (168 contracts) were opened and $73,178 premiums were paid during the year.
Average quarterly market value of:
| Options Written | $ | 1,043,310 | ||
| Purchased Options | $ | 50,315 |
226
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Multi-Disciplinary Income Portfolio
Statement of Assets and Liabilities
Fair Values of derivative instruments as of December 31, 2014:
| Assets | Liabilities | |||||||||||
| Equity Contracts | Description | Fair Value | Description | Fair Value | ||||||||
| Investments, | ||||||||||||
| Purchased Put Options | at value | $ | 1,557,389 | $ | — | |||||||
| Total | $ | 1,557,389 | ||||||||||
| Written put option | ||||||||||||
| Written Put Options | $ | — | contracts, at value | $ | 2,229,842 | |||||||
| Total | $ | — | $ | 2,229,842 | ||||||||
Statement of Operations
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2014:
Amount of Realized Gain (Loss) on Equity Contracts
| Equity Contracts | ||||
| Purchased Put Options | $ | — | ||
| Written Put Options | 2,705,128 | |||
| Total | $ | 2,705,128 | ||
Change in Unrealized Appreciation (Depreciation) on Equity Contracts
| Equity Contracts | ||||
| Purchased Put Options | $ | 25,416 | ||
| Written Put Options | (2,326,852 | ) | ||
| Total | $ | (2,301,436 | ) | |
The Multi-Disciplinary Income Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For the year ended December 31, 2014: written option contracts (6,777 contracts) were opened and $2,039,900 premiums were received during the year, purchased option contracts (1,696 contracts) were opened and $1,153,706 premiums were paid during the year.
Average quarterly market value of:
| Options Written | $ | 2,009,460 | ||
| Purchased Options | $ | 1,330,154 |
227
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
9. Offsetting Assets and Liabilities
The Portfolios are subject to various Master Netting Arrangements, which govern the terms of certain transactions with select counterparties. The Master Netting Arrangements allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. The Master Netting Arrangements also specify collateral posting arrangements at pre-arranged exposure levels. Under the Master Netting Arrangements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Netting Arrangement with a counterparty in a given account exceeds a specified threshold depending on the counterparty and the type of Master Netting Arrangement.
The Internet Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Internet Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | $ | 4,380,634 | $ | — | $ | 4,380,634 | $ | 4,380,634 | $ | — | $ | — | ||||||||||||
| $ | 4,380,634 | $ | — | $ | 4,380,634 | $ | 4,380,634 | $ | — | $ | — | |||||||||||||
The Global Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Global Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | $ | 602,851 | $ | — | $ | 602,851 | $ | 602,851 | $ | — | $ | — | ||||||||||||
| $ | 602,851 | $ | — | $ | 602,851 | $ | 602,851 | $ | — | $ | — | |||||||||||||
228
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Paradigm Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Paradigm Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | $ | 80,379,397 | $ | — | $ | 80,379,397 | $ | 80,379,397 | $ | — | $ | — | ||||||||||||
| $ | 80,379,397 | $ | — | $ | 80,379,397 | $ | 80,379,397 | $ | — | $ | — | |||||||||||||
The Medical Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Medical Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | $ | 2,947,749 | $ | — | $ | 2,947,749 | $ | 2,947,749 | $ | — | $ | — | ||||||||||||
| $ | 2,947,749 | $ | — | $ | 2,947,749 | $ | 2,947,749 | $ | — | $ | — | |||||||||||||
229
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Small Cap Opportunities Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Small Cap Opportunities Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | $ | 40,433,435 | $ | — | $ | 40,433,435 | $ | 40,433,435 | $ | — | $ | — | ||||||||||||
| $ | 40,433,435 | $ | — | $ | 40,433,435 | $ | 40,433,435 | $ | — | $ | — | |||||||||||||
The Market Opportunities Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Market Opportunities Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | $ | 3,228,685 | $ | — | $ | 3,228,685 | $ | 3,228,685 | $ | — | $ | — | ||||||||||||
| $ | 3,228,685 | $ | — | $ | 3,228,685 | $ | 3,228,685 | $ | — | $ | — | |||||||||||||
230
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
The Alternative Income Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Alternative Income Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Written | ||||||||||||||||||||||||
| Options | $ | 1,554,356 | $ | — | $ | 1,554,356 | $ | — | $ | 1,554,356 | $ | — | ||||||||||||
| $ | 1,554,356 | $ | — | $ | 1,554,356 | $ | — | $ | 1,554,356 | $ | — | |||||||||||||
The Multi-Disciplinary Income Portfolio
The following is a summary of the Assets and Liabilities subject to offsetting in The Multi-Disciplinary Income Portfolio as of December 31, 2014:
| Liabilities: | Gross Amounts | Gross Amounts Offset in the Statement | Net Amounts Presented in the Statement | Gross Amounts not offset in the statement of financial position | ||||||||||||||||||||
of Recognized Liabilities | of Financial Position | of Financial Position | Financial Instruments | Collateral Pledged (Received) | Net Amount | |||||||||||||||||||
| Description | ||||||||||||||||||||||||
| Written | ||||||||||||||||||||||||
| Options | $ | 2,229,842 | $ | — | $ | 2,229,842 | $ | — | $ | 2,229,842 | $ | — | ||||||||||||
| Securities | ||||||||||||||||||||||||
| Lending | 2,872,260 | — | 2,872,260 | 2,872,260 | — | — | ||||||||||||||||||
| $ | 5,102,102 | $ | — | $ | 5,102,102 | $ | 2,872,260 | $ | 2,229,842 | $ | — | |||||||||||||
10. Affiliated Issuers
Under section 2(a)(3) of the 1940 Act, an investment company is defined as being an affiliated person of a company if it owns five percent or more of a company’s outstanding voting stock.
231
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
Investments in affiliated companies for the Paradigm Portfolio as of December 31, 2014, are shown below:
| Number of | Number of | ||||||||||||
| shares held at | shares held at | ||||||||||||
| December 31, | Gross | Gross | December 31, | ||||||||||
| Name of issuer | 2013 | additions | reductions | 2014 | |||||||||
| Texas Pacific Land Trust | 306,600 | 183,880 | — | 490,480 | |||||||||
| Fair value at | Realized | |||||||||
| December 31, | Dividend | capital | ||||||||
| Name of issuer (continued) | 2014 | income | gain/loss | |||||||
| Texas Pacific Land Trust | $ | 57,876,640 | $ | 100,872 | $ | — | ||||
11. Information about Proxy Voting (Unaudited)
Information regarding how the Master Portfolios votes proxies relating to portfolio securities is available without charge upon request by calling toll-free at 1-800-930-3828 or by accessing the Funds’ website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Master Portfolios voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.
12. Information about the Portfolio Holdings (Unaudited)
The Kinetics Portfolios Trust files its complete schedules of portfolio holdings for its first and third fiscal quarters with the SEC on Form N-Q. The Master Portfolios’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
13. Subsequent Events
In preparing these financial statements, management has evaluated Portfolio related events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or translations that occurred during the year that materially impacted the amounts or disclosures in the Master Portfolios’ financial statements.
232
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS |
Notes to Financial Statements — (Continued) |
| December 31, 2014 |
14. Recent Accounting Pronouncements
In June 2014, the Financial Accounting Standard Board issued ASU No. 2014-11 “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU No. 2014-11 makes limited changes to the accounting for repurchase agreements, clarifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, and requires additional disclosures regarding these types of transactions. The guidance is effective for fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is currently evaluating the impact these disclosures will have on the Fund’s financial statement disclosures.
233
| KINETICS PORTFOLIOS TRUST |
| Report of Independent Registered Public Accounting Firm |
Board of Directors and Shareholders of
Kinetics Mutual Funds, Inc.
Elmsford, NY
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Alternative Income Portfolio, and The Multi-Disciplinary Income Portfolio, each a series of shares of Kinetics Portfolios Trust (the “Trust”), as of December 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trusts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform, nor was the Trust required to have, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly in all material respects, the financial position of each of the eight portfolios of the Kinetics Portfolios Trust as of December 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Philadelphia, Pennsylvania
February 27, 2015
234
| KINETICS PORTFOLIOS TRUST |
| Management of the Funds and the Portfolios |
| (Unaudited) |
Management of the Funds and the Portfolios
The management and affairs of the Funds and the Portfolios are supervised by the Board of Directors of the Company and the Board of Trustees of the Trust, respectively. Each Board consists of the same eight individuals, five of whom are not “interested persons” of the Company or the Trust as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”). The Directors are fiduciaries for the Funds’ shareholders and are governed by the laws of the State of Maryland in this regard. The Trustees are fiduciaries for the Portfolios’ shareholders and are governed by the laws of the State of Delaware in this regard.
Each Board establishes policies for the operation of the Funds and the Portfolios and appoints the officers who conduct the daily business of the Funds and the Portfolios. Directors/Trustees of the Company and the Trust are listed below with their addresses, present positions with the Company and Trust, length of time served, principal occupations over at least the last five years, number of Funds and Portfolios overseen and any other Directorships held. The SAI includes additional information about the Funds’ officers and directors and is available, without charge, upon request by calling 1-800-930-3828.
Board of Directors/Board of Trustees
Independent Directors/Trustees
| Term of | ||||
| Position(s) | Office and | |||
| Held with | Length of | |||
| Name, Address and Year of Birth | Company/ Trust | Time Served | ||
| Steven T. Russell | Independent Director/ | Indefinite/ | ||
| Year Born: 1963 | Independent Trustee | 14 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 | ||||
| Douglas Cohen, CPA | Independent Director/ | Indefinite/ | ||
| Year Born: 1961 | Independent Trustee | 14 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 |
235
| KINETICS PORTFOLIOS TRUST |
Management of the Funds and the Portfolios—(Continued) |
| (Unaudited) |
| # of Portfolios | ||||
in Fund Complex(1) | ||||
| Overseen by | ||||
| Principal Occupation(s) | Director/ | Other Directorships | ||
| During Past Five Years | Trustee | Held by Director/Trustee(2) | ||
| Steven Russell Law Firm (April 2010 to present); Professor of Business Law and Finance, Suffolk County Community College (1997 to present); Attorney and Counselor at Law, Partner, Law firm of Russell and Fig (September 2002 to April 2010). | 16 | N/A | ||
| Chief Financial Officer, Sunrise Credit Services, Inc. (2005 to present); Wagner & Zwerman, LLP Certified Public Accountant (1997 to 2005). | 16 | N/A |
236
| KINETICS PORTFOLIOS TRUST |
Management of the Funds and the Portfolios—(Continued) |
| (Unaudited) |
Board of Directors/Board of Trustees (Continued)
Independent Directors/Trustees (Continued)
| Term of | ||||
| Position(s) | Office and | |||
| Held with | Length of | |||
| Name, Address and Year of Birth | Company/ Trust | Time Served | ||
| William J. Graham | Independent Director/ | Indefinite/ | ||
| Year Born: 1962 | Independent Trustee | 14 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 | ||||
| Joseph E. Breslin | Independent Director/ | Indefinite/ | ||
| Year Born: 1953 | Independent Trustee | 14 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 |
| James M. Breen | Independent Director/ | Indefinite/ | ||
| Year Born: 1953 | Independent Trustee | 6 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 |
237
| KINETICS PORTFOLIOS TRUST |
Management of the Funds and the Portfolios—(Continued) |
| (Unaudited) |
| # of Portfolios | ||||
in Fund Complex(1) | ||||
| Overseen by | ||||
| Principal Occupation(s) | Director/ | Other Directorships | ||
| During Past Five Years | Trustee | Held by Director/Trustee(2) | ||
| Attorney, William J. Graham, PC (2001 to present); Bracken & Margolin, LLP (1997 to 2001). | 16 | N/A | ||
| J.E. Breslin & Co. – Consulting (2010 to present); Chief Operating Officer, Central Park Credit Holdings (2007 to 2009). | 16 | Trustee, Hatteras Alternative Mutual Funds Trust (5 portfolios); Trustee, Underlying Funds Trust (5 portfolios); Trustee, HCIM Trust (2 portfolios); Manager, Hatteras Global Private Equity Partners Institutional, LLC; Manager, Hatteras GPEP Fund II, LLC; Manager, Hatteras VC Co-Investment Fund II, LLC; Manager, Hatteras Master Fund, L.P.; Manager, Hatteras Core Alternatives TEI Fund, L.P.; Manager, Hatteras Core Alternatives Fund, L.P.; Manager, Hatteras Core Alternatives Institutional Fund, L.P.; Manager, Hatteras Core Alternatives TEI Institutional Fund, L.P.; Trustee, Forethought Variable Insurance Trust (5 portfolios); and Trustee, Hatteras Variable Trust (2012-2013). | ||
| Vice President, HBES Consulting, Inc. (2014 to present); Senior Special Agent, Homeland Security Investigations, Miami, FL (2011 to 2014); Assistant Attaché Immigration& Customs Enforcement, Pretoria, South Africa (2008 to 2011). | 16 | N/A |
238
KINETICS PORTFOLIOS TRUST Management of the Funds and the Portfolios—(Continued) (Unaudited) |
Board of Directors/Board of Trustees (Continued)
Interested Directors/Trustees and Officers
| Term of | ||||
| Position(s) | Office and | |||
| Held with the | Length of | |||
| Name, Address and Year of Birth | Company/ Trust | Time Served | ||
Murray Stahl(3) | Director/Trustee | Indefinite/ | ||
| Year Born: 1953 | & Secretary | 14 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 | ||||
Peter B. Doyle(3) | Director/Trustee, | Indefinite/ | ||
| Year Born: 1962 | President & Chairman | 12 years | ||
| c/o Kinetics Asset Management LLC | of the Board | |||
| 470 Park Avenue South | ||||
| New York, New York 10016 | ||||
Leonid Polyakov(3) | Director/Trustee | Indefinite/ | ||
| Year Born: 1959 | & Treasurer | 10 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 |
| (1) | The term “fund complex” refers to the Company and the Trust, which hold themselves out as related for investment purposes. |
| (2) | “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the Securities Exchange Act of 1934, as amended, (that is, “public companies”) or investment companies registered under the 1940 Act. |
239
| KINETICS PORTFOLIOS TRUST |
Management of the Funds and the Portfolios—(Continued) |
| (Unaudited) |
| # of Portfolios | ||||
in Fund Complex(1) | ||||
| Overseen by | ||||
| Principal Occupation(s) | Director/ | Other Directorships | ||
| During Past Five Years | Trustee | Held by Director/Trustee(2) | ||
| Chairman, FRMO Corp. (2001 to present) (provides consulting services to private investment funds and research services with respect to marketable securities); Chairman and Chief Investment Officer, Horizon Kinetics LLC, (including Horizon Asset Management LLC (an investment adviser) (1994 to present); Kinetics Asset Management LLC and Kinetics Advisers, LLC (2000 to present)). | 16 | Director and Officer of FRMO Corp. | ||
| Vice President, FMRO Corp. (2001 to present) (provides consulting services to private investment funds and research services with respect to marketable securities); Managing Director, Horizon Kinetics LLC (including Horizon Asset Management, LLC (an investment adviser) (1994 to present); Kinetics Asset Management LLC and Kinetics Advisers LLC (2000 to present); and President of Kinetics Mutual Funds, Inc. (1998 to present). | 16 | Director and Officer, FRMO Corp. | ||
| CFO, Kinetics Asset Management LLC (2000 to 2011); CFO and FINOP, Kinetics Funds Distributor LLC (2002 to 2011); Director, Kinetics Advisers, LLC (2000 to 2011); formerly, CFO, KBD Securities, LLC (2000 to 2009). | 16 | N/A |
| (3) | Directors/Trustees who are considered “interested persons” as defined in Section 2(a)(19) of the 1940 Act because of their association with the Adviser and its affiliates. |
240
KINETICS PORTFOLIOS TRUST Management of the Funds and the Portfolios—(Continued) (Unaudited) |
Board of Directors/Board of Trustees (Continued)
Officers
| Term of | ||||
| Position(s) | Office and | |||
| Held with the | Length of | |||
| Name, Address and Age | Company/ Trust | Time Served | ||
| Andrew M. Fishman | Chief Compliance | Indefinite/ | ||
| Year Born: 1950 | Officer | 10 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 | ||||
| Jay H. Kesslen | Vice President and | Indefinite/ | ||
| Year Born: 1973 | Assistant Secretary | 10 years | ||
| c/o Kinetics Asset Management LLC | ||||
| 470 Park Avenue South | ||||
| New York, New York 10016 |
241
| KINETICS PORTFOLIOS TRUST |
Management of the Funds and the Portfolios—(Continued) |
| (Unaudited) |
| Principal Occupation(s) | Other Directorships | |
| During Past Five Years | Held by Officer | |
| Associate General Counsel, Horizon Kinetics LLC (2011 to present); General Counsel, Horizon Asset Management, Inc. (1997 to 2011); Secretary, Horizon Asset Management, Inc. (2006 to 2011); Chief Compliance Officer, Horizon Asset Management, Inc. (1997 to 2008); Chief Compliance Officer, Kinetics Asset Management, Inc. (1999 to 2011); Chief Compliance Officer, Kinetics Advisers, LLC (2000 to 2011). | N/A | |
| General Counsel, Horizon Kinetics LLC (including Horizon Asset Management LLC (an investment adviser) (2011 to present), Kinetics Asset Management LLC (2000 to present), Kinetics Advisers LLC (2000 to present), Kinetics Funds Distributor LLC (2000 to present), KBDSecurities LLC (2000 to present)); General Counsel, FRMO Corp. (2014 to present). | N/A |
242
| KINETICS MUTUAL FUNDS, INC. & KINETICS PORTFOLIOS TRUST |
Privacy Policy (Unaudited) |
We collect the following nonpublic personal information about you:
| • | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and | |
| • | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payments history, parties to transactions, cost basis information, and other financial information. |
We do not disclose any nonpublic personal information about our current or former shareholders to nonaffiliated third parties, except as permitted by law. For example, we are permitted by law to disclose all of the information we collect, as described above, to our transfer agent to process your transactions. Furthermore, we restrict access to your nonpublic personal information to those persons who require such information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
In the event that you hold shares of the fund(s) through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your nonpublic personal information would be shared with nonaffiliated third parties.
This privacy policy is not part of the annual report.
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245
Kinetics Mutual
Funds, Inc.
615 East Michigan Street
Milwaukee, WI 53202
INVESTMENT ADVISER AND
SHAREHOLDER SERVICING AGENT
Kinetics Asset Management LLC
470 Park Avenue South
New York, NY 10016
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Tait, Weller & Baker LLP
1818 Market Street
Suite 2400
Philadelphia, PA 19103
DISTRIBUTOR
Kinetics Funds Distributor LLC
470 Park Avenue South
New York, NY 10016
ADMINISTRATOR
FUND ACCOUNTANT AND
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
CUSTODIAN
U.S. Bank, N.A.
Custody Operations
1555 River Center Drive, Suite 302
Milwaukee, WI 53212
THIS MATERIAL MUST BE PRECEDED OR
ACCOMPANIED BY A PROSPECTUS
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report. A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s board of trustees/directors has determined that there is at least one audit committee financial expert serving on its audit committee. Mr. Douglas Cohen and Mr. Joseph Breslin are the “audit committee financial experts” and are considered to be “independent” as each term is defined in Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past two fiscal years. “Audit services” refer to performing an audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. There were no “Other services” provided by the principal accountant. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
| FYE 12/31/2014 Kinetics Portfolios Trust | FYE 12/31/2014 Kinetics Mutual Funds | FYE 12/31/2013 Kinetics Portfolios Trust | FYE 12/31/2013 Kinetics Mutual Funds | |
| Audit Fees | 84,450 | 84,450 | 82,000 | 82,000 |
| Audit-Related Fees | 0 | 0 | 0 | 0 |
| Tax Fees | 23,175 | 23,175 | 22,500 | 22,500 |
| All Other Fees | 0 | 0 | 0 | 0 |
The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.
The percentage of fees billed by Tait, Weller & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
| FYE 12/31/2013 | FYE 12/31/2012 | |
| Audit-Related Fees | 0% | 0% |
| Tax Fees | 0% | 0% |
| All Other Fees | 0% | 0% |
All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant.
The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other controlling entity, etc.—not sub-adviser) for the last two years. The audit committee of the board of trustees/directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
| Non-Audit Related Fees | FYE 12/31/2013 | FYE 12/31/2012 |
| Registrant | 0 | 0 |
| Registrant’s Investment Adviser | 0 | 0 |
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Schedule of Investments.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.
Item 11. Controls and Procedures.
| (a) | The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
| (b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. |
Item 12. Exhibits.
| (a) | (1) Filed herewith. |
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. |
(3) Not applicable to open-end investment companies. |
| (b) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust
By (Signature and Title)* /s/ Peter B. Doyle
Peter B. Doyle, President
Date 2/25/2015
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 2/25/2015
By (Signature and Title)* /s/ Leonid Polyakov
Leonid Polyakov, Treasurer
Date 3/9/2015
* Print the name and title of each signing officer under his or her signature.