As filed with Securities and Exchange Commission on September 6, 2011
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09303 & 811-09923
Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust
(Exact name of registrant as specified in charter)
555 Taxter Road, Suite 175
Elmsford, NY 10523
Elmsford, NY 10523
(Address of principal executive offices) (Zip code)
U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
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, 2011
Date of reporting period: June 30, 2011
Item 1. Reports to Stockholders.
| June 30, 2011 www.kineticsfunds.com | ||
| Semi-Annual Report | ||
| The Internet Fund The Global Fund The Paradigm Fund The Medical Fund The Small Cap Opportunities Fund The Market Opportunities Fund The Water Infrastructure Fund The Multi-Disciplinary Fund | ||
| Each a series of Kinetics Mutual Funds, Inc. | ||
(Kinetics Mutual Funds, Inc. Logo)
KINETICS MUTUAL FUNDS, INC.
Table of Contents
June 30, 2011
| Page | ||||
| Shareholders’ Letter | 2 | |||
| Year 2011 Semi-Annual Investment Commentary | 5 | |||
| KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS | ||||
| Expense Example | 11 | |||
| Statements of Assets & Liabilities | 19 | |||
| Statements of Operations | 23 | |||
| Statements of Changes in Net Assets | 27 | |||
| Notes to Financial Statements | 38 | |||
| Financial Highlights | 52 | |||
| KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS | ||||
| Allocation of Portfolio Assets | 81 | |||
| Portfolio of Investments — The Internet Portfolio | 89 | |||
| Portfolio of Investments — The Global Portfolio | 95 | |||
| Portfolio of Investments — The Paradigm Portfolio | 99 | |||
| Portfolio of Investments — The Medical Portfolio | 105 | |||
| Portfolio of Investments — The Small Cap Opportunities Portfolio | 108 | |||
| Portfolio of Investments — The Market Opportunities Portfolio | 113 | |||
| Portfolio of Investments — The Water Infrastructure Portfolio | 116 | |||
| Portfolio of Investments — The Multi-Disciplinary Portfolio | 119 | |||
| Portfolio of Options Written — The Water Infrastructure Portfolio | 123 | |||
| Portfolio of Options Written — The Multi-Disciplinary Portfolio | 127 | |||
| Statements of Assets & Liabilities | 154 | |||
| Statements of Operations | 158 | |||
| Statements of Changes in Net Assets | 162 | |||
| Notes to Financial Statements | 166 | |||
1
Dear Fellow Shareholders:
We are pleased to present the Kinetics Mutual Funds’ (“Funds”) Semi-Annual Report for the six-month period ended June 30, 2011. On balance, the Kinetics Family of Mutual Funds did not meet our expectations for the first half of 2011, with returns of 1.46% for The Paradigm Fund, (0.64)% for The Small Cap Opportunities Fund, 2.97% for The Market Opportunities Fund, 11.01% for The Internet Fund, 15.81% for The Medical Fund, 2.51% for The Water Infrastructure Fund, (1.93)% for The Global Fund, and 6.49% for The Multi-Disciplinary Fund. This compares with first-half 2011 returns of 6.02% and 4.55% for the S&P 500 Index and the NASDAQ Composite Index, respectively.
Developed equity markets have remained resilient thus far in 2011 despite natural disasters, speculation over the solvency of euro-zone sovereigns, turmoil in the Middle East and a continued disagreement in the U.S. Congress over spending levels and the debt ceiling. The pace of the global economic recovery has fallen short of many expectations and certainly most desires. However, many developed nations must now embark on a path toward debt and spending reductions, while remaining vigilant not to tip the economy back into contraction. As a result we expect markets to continue to be volatile until there is greater clarity with respect to government policies and corporate results. The encouraging news is that amid all of this uncertainty, U.S. corporations have reached an all time peak in profitability, and are expected by many to continue to produce compelling results. The Funds are positioned in durable businesses with dedicated management teams and conservative capital structures. The broad based markets will face continued headwinds, which will make individual business selection of paramount importance. We believe that such an environment is much to the advantage of our dedicated value Funds.
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.
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Kinetics offers the following funds to investors:
The Paradigm Fund focuses on companies that are valued attractively and currently have, or are expected to soon have, sustainable high business returns. The Fund has produced attractive returns since its inception in an environment that should be described as difficult for equity investors. The Paradigm Fund is Kinetics’ flagship fund.
The Small Cap Opportunities Fund focuses on undervalued and special situation small capitalization equities that have the potential for rewarding long-term investment results. The same investment fundamentals employed by The Paradigm Fund are used to identify such opportunities.
The Medical Fund is a sector fund, offering an investment in scientific discovery within the promising field of medical research, particularly in the development of cancer treatments and therapies. As a sector fund, The Medical Fund is likely to have heightened volatility.
The Internet Fund is a sector fund that focuses on companies engaged in the evolution of Internet-related developments. As such, this Fund has been, and is likely to continue to be, quite volatile. The Internet Fund is not designed to be a major component of one’s equity exposure. More recently, this Fund has been focusing on content companies, which we believe will be the winners in the next generation of Internet development.
The Global Fund’s mandate was changed in early April 2008 and is now focused on selecting long life cycle international companies that can generate long-term wealth through their business operations. This Fund is presently finding exciting opportunities in the more developed markets.
The Market Opportunities Fund focuses on those companies that benefit from increasing transactional volume or throughput, such as publicly-traded exchanges and credit card processors, or companies that act as facilitators, such as gaming companies, airports and publicly-traded toll roads.
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The Water Infrastructure Fund incorporates a blended strategy that invests in global companies engaged in water infrastructure and water-specific natural resources, as well as related activities. To supplement the equity investments, the Fund also utilizes The Multi-Disciplinary Fund’s options strategy employed upon water businesses. This provides the Fund equity exposure and exposure to the water industry, complemented by income from put options.
The Multi-Disciplinary Fund seeks to utilize stock options and fixed-income investments in order to provide investors with equity-like returns, but with more muted volatility. At times, the options strategies of the Fund may cause the manager to purchase equity securities.
Peter B. Doyle
President
Kinetics Mutual Funds, Inc.
4
Dear Fellow Shareholders:
As we began penning this semi-annual letter, we felt compelled to reference our comments from mid-year 2010. In that letter, we made several market observations that could just as easily have been referring to current capital markets in 2011. Media outlets, politicians and financial professionals have returned their collective focus to the finances of various European nations, after not paying much attention to the topic for some months prior. In the 2010 letter, we had the benefit of writing in early August, far enough after quarter end for investors to have calmed their anxiety regarding these issues. It now appears that these concerns may not dissipate as quickly and easily as they did last year, and that a long-term solution is what these nations ultimately require for long-term growth and stability.
In last year’s semi-annual letter, we also commented on what we believed to be a “bubble in pessimism” that resulted in 10-year U.S. Treasury Notes offering a pre-tax yield of merely 2.72%. In the past 12 months, 10-year Notes have appreciated slightly and now offer a marginally higher pre-tax yield of 3.35%. Once this return is taxed and impacted for inflation, the real return is likely to be near breakeven. Investors must be expecting a very dire economic scenario in order to accept such mediocre returns. The general risk aversion and appetite for low-yielding U.S. Government securities has changed very little over the past year.
Despite the familiar financial landscape reminiscent of mid-year 2010, many factors have changed markedly over the past 12 months. The S&P 500 Index has climbed 30.69% since June 30, 2010 and the cash balances of the S&P 500 companies have increased an additional 12.92% in aggregate. Cash now represents approximately 21.50% of the S&P 500 Index valuation. Large corporate cash balances are comforting to fixed income investors, regulators and unnerved management teams. However, these large cash positions earn effectively nothing after taxes and inflation are considered, and are not an effective use of company capital. We have been disillusioned by the overly conservative capital management of many U.S. and multi-national corporations, which has contributed to our desire to seek out proactive managements that
5
were able to improve their respective companies over the past several years, including during the crisis of 2008.
In our search for superior businesses we came across a common factor shared by nearly all of the companies: an “owner-operator.” We define owner-operator companies as follows: At owner-operator companies, decisions are made by a principal or owner rather than by agents or hired managers. The latter must manage their careers in relation to the short-term reactive expectations of shareholders and analysts, and must abide by arbitrarily set benchmarks including market share and revenue growth. They are reluctant to invest in their businesses during times of great economic uncertainty. Conversely, owner-operators are secure in their positions and are vested in the long-term success of their companies, and accordingly they tend to base their actions on long-term return-on-capital considerations. They have the strategic flexibility for choosing capital structures that enhance returns and limit risk. Owner-operators can choose to remain in a given business or to allocate capital elsewhere. They are positioned to take advantage of economically uncertain times and the investment opportunities they present, often at fire-sale prices. Owner-operated businesses exist in nearly every country and industry and range from very small micro-cap companies to enormous multi-national corporations. These businesses have demonstrated the ability to build shareholder value and maintain a focus on the long-term enhancement of the business. As such, it should come as no surprise that these companies have vastly outperformed the markets at large over the long term.
The investment team at Kinetics is in the process of incrementally increasing exposure to owner-operators in all of the portfolios. Although we did not employ the owner-operator moniker until recently, for years the portfolios have owned companies that meet this description including Berkshire Hathaway, Brookfield Asset Management, Icahn Enterprises and many more. We believe that an emphasis on these investment opportunities will be to the long-term benefit of our investors. As our long-term shareholders are aware, we are generally averse to frequent trading and take great
6
pains to ensure that we have conviction that our decision to trade will result in favorable performance for our shareholders.
We believe that the owner-operator companies being purchased for our Funds have superior, shareholder interest-oriented managements to supplement very attractive business models. An observer could reasonably suppose that these companies would trade at valuation multiples well in excess of that of the market. Historically this has been the case. However, at present these companies in aggregate trade at a substantial discount to the major indexes and average peer corporations. We believe that this may be a byproduct of the proliferation of ETFs, which focus on float-adjusted share counts. Any company that actively buys back shares, reducing its float, becomes a lower weight for any indexes or ETFs that adjust based on share float. This reduction in weight in the portfolio is typically the opposite of the action that investors should take in this circumstance, as share repurchases reflect management’s belief in the value of the company shares. In any event, even without multiple expansions, many of these businesses have returns on equity near 15% and have historically grown book value at similar rates. Thus, the businesses can compound at very attractive rates for shareholders simply through the operations of the company.
Our Multi-Disciplinary Fund has continued to grow assets and has achieved strong performance with dampened volatility relative to the S&P 500 Index. Investors who are hesitant to invest in long-term equity products should review the prospectus for this Fund to learn more. The unique options strategy utilized by the Fund has been very effective, particularly applied to the aforementioned owner-operator companies.
As always, we appreciate the continued support and confidence of our shareholders. The investment environment remains somewhat uncertain due to a myriad of political and macroeconomic forces. Investing in owner-operated businesses offers what we believe to be a very attractive risk-adjusted return potential, especially
7
considering the resilience and opportunistic nature of their management teams.
Peter B. Doyle
Chief Investment Strategist
8
Disclosure
This material is intended to be reviewed in conjunction with a current prospectus, which includes all fees and expenses that apply to a continued investment program, as well as information regarding the risk factors, policies and objectives of the Funds. Read it carefully before investing.
Mutual Fund investing involves risk. Principal loss is possible. Because The Internet Fund, The Medical Fund and The Water Infrastructure Fund invest in a single industry, their shares are subject to a higher degree of risk than funds with a higher level of diversification. Internet and biotechnology stocks are subject to a rate of change in technology, obsolescence and competition that is generally higher than that of other industries and have experienced extreme price and volume fluctuations. International investing [for The Global Fund, The Water Infrastructure Fund, The Paradigm Fund, The Market Opportunities Fund, The Small Cap Opportunities Fund, and The Internet Fund] presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. Accordingly, the share price for these Funds is expected to be more volatile than that of a U.S.-only fund. Past performance is no guarantee of future performance.
Because smaller companies [for The Global Fund, The Small Cap Opportunities Fund and The Water Infrastructure Fund] often have narrower markets and limited financial resources, they present more risk than larger, more well established, companies.
Non-investment grade debt securities [for all Funds], i.e., junk bonds, are subject to greater credit risk, price volatility and risk of loss than investment grade securities. Further, options contain special risks including the imperfect correlation between the value of the option and the value of the underlying asset. Investments [for all Funds] 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 Fund. To the extent the Funds segregate assets to cover derivative positions, they may impair their ability to meet current obligations, to honor requests for redemption and to manage the Funds in a manner consistent with their respective investment objectives. Purchasing and writing put and call options and, in particular, writing “uncovered” options are highly specialized activities that entail greater than ordinary investment risk.
9
As non-diversified Funds, the value of Fund shares may fluctuate more than shares invested in a broader range of industries and companies.
Unlike other investment companies that directly acquire and manage their own portfolios of securities, The Kinetics Mutual Funds pursue their investment objectives by investing all or generally all of their investable assets in a corresponding portfolio series of Kinetics Portfolios Trust.
The information concerning the Funds included in the shareholder report contains certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
Portfolio composition is subject to change at any time.
The NASDAQ Composite (NASDAQ) and the Standard & Poor’s 500 Index (S&P 500) each represent an unmanaged, broad-basket of stocks. They are typically used as a proxy for overall market performance.
Distributor: Kinetics Funds Distributor, LLC is not an affiliate of Kinetics Mutual Funds, Inc. Kinetics Funds Distributor, LLC is an affiliate of Kinetics Asset Management, LLC, Investment Adviser to Kinetics Mutual Funds, Inc.
For more information, log onto www.kineticsfunds.com.
July 1, 2011 — Kinetics Asset Management, LLC.
10
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example
June 30, 2011 (Unaudited)
Shareholders incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvestments of dividends or other distributions made by a Fund, redemption fees, and exchange fees, and (2), ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help investors understand the ongoing costs (in dollars) of investing in the Feeder Funds, as defined below, and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested on January 1, 2011 and held for the entire period from January 1, 2011 to June 30, 2011.
Actual Expenses
The first line and second line items of the table below provide information about actual account values and actual expenses before and after expense reimbursement. Unlike other mutual funds that directly acquire and manage their own portfolio securities, each Feeder Fund invests all or generally all of its investable assets in a corresponding series of The Kinetics Portfolios Trust (each, a “Master Portfolio”, and together the “Master Portfolios”), a separately registered investment company. The Master Portfolio, in turn, invests in securities. With this type of organization, expenses can accrue specifically to the Master Portfolio or the Feeder Fund or both. The Adviser for the Master Portfolios has directed a certain amount of the Master Portfolio’s trades to brokers believed to provide the best execution and, as a result, the Master Portfolios have generated direct brokerage credits to reduce certain service provider fees. Each Feeder Fund records its proportionate share of the Master Portfolio’s expenses, including directed brokerage credits, on a daily basis. Any expense reductions include Feeder Fund-specific expenses as well as the expenses allocated from the Master Portfolio.
The Feeder Funds will charge shareholder fees for outgoing wire transfers, returned checks, and exchanges executed by telephone between the Feeder Fund and any other series of Kinetics Mutual Funds, Inc. The Feeder Funds’ transfer agent charges a $5.00 transaction fee to shareholder accounts for telephone exchanges between any two series of Kinetics Mutual Funds, Inc. The Feeder 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
11
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
to their sole discretion, in instances deemed not to be disadvantageous to the Feeder Funds or shareholders as described in the Funds’ prospectus.
You may use the information provided in the first line, together with the amounts you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The third and fourth line items of the table below provide information about hypothetical account values and hypothetical expenses before and after expense reimbursements based on the Feeder Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which are not the Feeder Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses one paid for the period. You may use this information to compare the ongoing costs of investing in the Feeder Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight one’s ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help one determine the relative total costs of owning different funds. In if these transactional costs were included, one’s costs would have been higher.
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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
| Beginning | Ending | |||||||||||||||
| Account | Account | Expenses Paid | ||||||||||||||
| Value | Value | Annualized | During Period* | |||||||||||||
| (1/1/11) | (6/30/11) | Expense Ratio | (1/1/11 to 6/30/11) | |||||||||||||
The Internet Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,110.10 | 1.94 | % | $ | 10.15 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,110.10 | 1.89 | % | $ | 9.89 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,015.18 | 1.94 | % | $ | 9.69 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,015.43 | 1.89 | % | $ | 9.44 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,108.70 | 2.19 | % | $ | 11.45 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,108.70 | 2.14 | % | $ | 11.19 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,013.94 | 2.19 | % | $ | 10.94 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,014.19 | 2.14 | % | $ | 10.69 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,105.90 | 2.69 | % | $ | 14.05 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,105.90 | 2.64 | % | $ | 13.78 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,011.46 | 2.69 | % | $ | 13.42 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,011.71 | 2.64 | % | $ | 13.17 | ||||||||
The Global Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 980.70 | 3.88 | % | $ | 19.05 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 980.70 | 1.39 | % | $ | 6.83 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,005.56 | 3.88 | % | $ | 19.29 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.91 | 1.39 | % | $ | 6.95 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 978.60 | 4.13 | % | $ | 20.26 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 978.60 | 1.64 | % | $ | 8.05 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,004.32 | 4.13 | % | $ | 20.52 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.67 | 1.64 | % | $ | 8.20 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 976.30 | 4.63 | % | $ | 22.69 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 976.30 | 2.14 | % | $ | 10.49 | ||||||||
13
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
| Beginning | Ending | |||||||||||||||
| Account | Account | Expenses Paid | ||||||||||||||
| Value | Value | Annualized | During Period* | |||||||||||||
| (1/1/11) | (6/30/11) | Expense Ratio | (1/1/11 to 6/30/11) | |||||||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,001.84 | 4.63 | % | $ | 22.98 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,014.19 | 2.14 | % | $ | 10.69 | ||||||||
The Paradigm Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,014.60 | 1.77 | % | $ | 8.84 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,014.60 | 1.64 | % | $ | 8.19 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,016.02 | 1.77 | % | $ | 8.85 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.67 | 1.64 | % | $ | 8.20 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,013.50 | 2.02 | % | $ | 10.08 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,013.50 | 1.89 | % | $ | 9.44 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,014.78 | 2.02 | % | $ | 10.09 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,015.43 | 1.89 | % | $ | 9.44 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,011.20 | 2.52 | % | $ | 12.57 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,011.20 | 2.39 | % | $ | 11.92 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,012.30 | 2.52 | % | $ | 12.57 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,012.95 | 2.39 | % | $ | 11.93 | ||||||||
| Institutional Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,015.50 | 1.72 | % | $ | 8.60 | ||||||||
| Institutional Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,015.50 | 1.44 | % | $ | 7.20 | ||||||||
| Institutional Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,016.27 | 1.72 | % | $ | 8.60 | ||||||||
| Institutional Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.66 | 1.44 | % | $ | 7.20 | ||||||||
The Medical Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,158.10 | 1.98 | % | $ | 10.59 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,158.10 | 1.39 | % | $ | 7.44 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,014.98 | 1.98 | % | $ | 9.89 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.91 | 1.39 | % | $ | 6.95 | ||||||||
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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
| Beginning | Ending | |||||||||||||||
| Account | Account | Expenses Paid | ||||||||||||||
| Value | Value | Annualized | During Period* | |||||||||||||
| (1/1/11) | (6/30/11) | Expense Ratio | (1/1/11 to 6/30/11) | |||||||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,155.80 | 2.23 | % | $ | 11.92 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,155.80 | 1.64 | % | $ | 8.77 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,013.74 | 2.23 | % | $ | 11.13 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.67 | 1.64 | % | $ | 8.20 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,153.40 | 2.73 | % | $ | 14.58 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,153.40 | 2.14 | % | $ | 11.43 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,011.26 | 2.73 | % | $ | 13.61 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,014.19 | 2.14 | % | $ | 10.69 | ||||||||
The Small Cap Opportunities Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 993.60 | 1.89 | % | $ | 9.34 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 993.60 | 1.64 | % | $ | 8.11 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,015.43 | 1.89 | % | $ | 9.44 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.67 | 1.64 | % | $ | 8.20 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 992.60 | 2.14 | % | $ | 10.57 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 992.60 | 1.89 | % | $ | 9.34 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,014.19 | 2.14 | % | $ | 10.69 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,015.43 | 1.89 | % | $ | 9.44 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 989.90 | 2.64 | % | $ | 13.03 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 989.90 | 2.39 | % | $ | 11.79 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,011.71 | 2.64 | % | $ | 13.17 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,012.95 | 2.39 | % | $ | 11.93 | ||||||||
| Institutional Actual — before expense reimbursement | $ | 1,000.00 | $ | 994.50 | 1.84 | % | $ | 9.10 | ||||||||
| Institutional Actual — after expense reimbursement | $ | 1,000.00 | $ | 994.50 | 1.44 | % | $ | 7.12 | ||||||||
| Institutional Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,015.68 | 1.84 | % | $ | 9.20 | ||||||||
15
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
| Beginning | Ending | |||||||||||||||
| Account | Account | Expenses Paid | ||||||||||||||
| Value | Value | Annualized | During Period* | |||||||||||||
| (1/1/11) | (6/30/11) | Expense Ratio | (1/1/11 to 6/30/11) | |||||||||||||
| Institutional Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.66 | 1.44 | % | $ | 7.20 | ||||||||
The Market Opportunities Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,029.70 | 1.93 | % | $ | 9.71 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,029.70 | 1.64 | % | $ | 8.25 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,015.23 | 1.93 | % | $ | 9.64 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.67 | 1.64 | % | $ | 8.20 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,028.90 | 2.18 | % | $ | 10.97 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,028.90 | 1.89 | % | $ | 9.51 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,013.99 | 2.18 | % | $ | 10.89 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,015.43 | 1.89 | % | $ | 9.44 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,026.50 | 2.68 | % | $ | 13.47 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,026.50 | 2.39 | % | $ | 12.01 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,011.51 | 2.68 | % | $ | 13.37 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,012.95 | 2.39 | % | $ | 11.93 | ||||||||
| Institutional Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,030.50 | 1.88 | % | $ | 9.46 | ||||||||
| Institutional Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,030.50 | 1.44 | % | $ | 7.25 | ||||||||
| Institutional Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,015.48 | 1.88 | % | $ | 9.39 | ||||||||
| Institutional Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.66 | 1.44 | % | $ | 7.20 | ||||||||
The Water Infrastructure Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,025.10 | 2.26 | % | $ | 11.35 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,025.10 | 1.64 | % | $ | 8.23 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,013.59 | 2.26 | % | $ | 11.28 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.67 | 1.64 | % | $ | 8.20 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,024.00 | 2.51 | % | $ | 12.60 | ||||||||
16
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
| Beginning | Ending | |||||||||||||||
| Account | Account | Expenses Paid | ||||||||||||||
| Value | Value | Annualized | During Period* | |||||||||||||
| (1/1/11) | (6/30/11) | Expense Ratio | (1/1/11 to 6/30/11) | |||||||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,024.00 | 1.89 | % | $ | 9.48 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,012.35 | 2.51 | % | $ | 12.52 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,015.43 | 1.89 | % | $ | 9.44 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,021.80 | 3.01 | % | $ | 15.09 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,021.80 | 2.39 | % | $ | 11.98 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,009.87 | 3.01 | % | $ | 15.00 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,012.95 | 2.39 | % | $ | 11.93 | ||||||||
| Institutional Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,029.70 | 2.21 | % | $ | 11.12 | ||||||||
| Institutional Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,029.70 | 1.44 | % | $ | 7.25 | ||||||||
| Institutional Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,013.84 | 2.21 | % | $ | 11.04 | ||||||||
| Institutional Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.66 | 1.44 | % | $ | 7.20 | ||||||||
The Multi-Disciplinary Fund | ||||||||||||||||
| No Load Class Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,064.90 | 2.68 | % | $ | 13.72 | ||||||||
| No Load Class Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,064.90 | 1.49 | % | $ | 7.63 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,011.51 | 2.68 | % | $ | 13.37 | ||||||||
| No Load Class Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,017.41 | 1.49 | % | $ | 7.45 | ||||||||
| Advisor Class A Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,063.30 | 2.93 | % | $ | 14.99 | ||||||||
| Advisor Class A Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,063.30 | 1.74 | % | $ | 8.90 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,010.27 | 2.93 | % | $ | 14.60 | ||||||||
| Advisor Class A Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,016.17 | 1.74 | % | $ | 8.70 | ||||||||
| Advisor Class C Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,061.40 | 3.43 | % | $ | 17.53 | ||||||||
| Advisor Class C Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,061.40 | 2.24 | % | $ | 11.45 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,007.79 | 3.43 | % | $ | 17.08 | ||||||||
| Advisor Class C Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,013.69 | 2.24 | % | $ | 11.18 | ||||||||
17
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Expense Example — (Continued)
June 30, 2011 (Unaudited)
| Beginning | Ending | |||||||||||||||
| Account | Account | Expenses Paid | ||||||||||||||
| Value | Value | Annualized | During Period* | |||||||||||||
| (1/1/11) | (6/30/11) | Expense Ratio | (1/1/11 to 6/30/11) | |||||||||||||
| Institutional Actual — before expense reimbursement | $ | 1,000.00 | $ | 1,065.60 | 2.63 | % | $ | 13.47 | ||||||||
| Institutional Actual — after expense reimbursement | $ | 1,000.00 | $ | 1,065.60 | 1.29 | % | $ | 6.61 | ||||||||
| Institutional Hypothetical (5% return before expenses) — before expense reimbursement | $ | 1,000.00 | $ | 1,011.76 | 2.63 | % | $ | 13.12 | ||||||||
| Institutional Hypothetical (5% return before expenses) — after expense reimbursement | $ | 1,000.00 | $ | 1,018.40 | 1.29 | % | $ | 6.46 | ||||||||
| Note: | Each Feeder Fund records its proportionate share of the respective Master Portfolio’s expenses, including directed brokerage credits, on a daily basis. Any expense reduction includes Feeder Fund-specific expenses as well as the expenses allocated for the Master Portfolio. |
| * | Expenses are equal to the Feeder Fund’s annualized expense ratio before expense reimbursement and after expense reimbursement multiplied by the average account value over the period, multiplied by 181/365. |
18
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Assets & Liabilities
June 30, 2011 (Unaudited)
| The Internet | The Global | |||||||
| Fund | Fund | |||||||
ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 123,526,025 | $ | 5,162,639 | ||||
| Receivable from Adviser | 29,160 | 9,384 | ||||||
| Receivable for Master Portfolio interest sold | 8,416 | 712 | ||||||
| Receivable for Fund shares sold | 16,363 | — | ||||||
| Prepaid expenses and other assets | 24,377 | 22,523 | ||||||
| Total Assets | 123,604,341 | 5,195,258 | ||||||
LIABILITIES: | ||||||||
| Payable to Directors and Officers | 1,769 | 82 | ||||||
| Payable for Fund shares repurchased | 24,779 | 712 | ||||||
| Payable for shareholder servicing fees | 24,471 | 1,050 | ||||||
| Payable for distribution fees | 386 | 165 | ||||||
| Accrued expenses and other liabilities | 74,048 | 12,390 | ||||||
| Total Liabilities | 125,453 | 14,399 | ||||||
| Net Assets | $ | 123,478,888 | $ | 5,180,859 | ||||
NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 88,140,955 | $ | 6,048,673 | ||||
| Accumulated net investment income (loss) | (642,832 | ) | 17,823 | |||||
| Accumulated net realized loss on investments and foreign currency | (6,609,109 | ) | (1,049,222 | ) | ||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 42,589,874 | 163,585 | ||||||
| Net Assets | $ | 123,478,888 | $ | 5,180,859 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 122,044,725 | $ | 4,405,853 | ||||
| Shares outstanding | 2,951,202 | 962,170 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 41.35 | $ | 4.58 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 1,328,391 | $ | 693,218 | ||||
| Shares outstanding | 32,650 | 151,324 | ||||||
| Net asset value per share (redemption price) | $ | 40.69 | $ | 4.58 | ||||
| Offering price per share ($40.69 divided by .9425 and $4.58 divided by .9425) | $ | 43.17 | $ | 4.86 | ||||
| CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 105,772 | $ | 81,788 | ||||
| Shares outstanding | 2,672 | 18,041 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 39.59 | $ | 4.53 | ||||
| * | 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 Fund’s financial statements. |
The accompanying notes are an integral part of these financial statements.
19
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Assets & Liabilities — (Continued)
June 30, 2011 (Unaudited)
| The Paradigm | The Medical | |||||||
| Fund | Fund | |||||||
ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 1,151,940,358 | $ | 34,567,786 | ||||
| Receivable from Adviser | 160,049 | 18,426 | ||||||
| Receivable for Master Portfolio interest sold | 1,270,451 | 5,446 | ||||||
| Receivable for Fund shares sold | 1,166,481 | 427 | ||||||
| Prepaid expenses and other assets | 59,689 | 19,179 | ||||||
| Total Assets | 1,154,597,028 | 34,611,264 | ||||||
LIABILITIES: | ||||||||
| Payable to Directors and Officers | 17,566 | 453 | ||||||
| Payable for Fund shares repurchased | 2,436,931 | 5,873 | ||||||
| Payable for shareholder servicing fees | 208,177 | 6,995 | ||||||
| Payable for distribution fees | 178,720 | 1,588 | ||||||
| Accrued expenses and other liabilities | 351,133 | 20,406 | ||||||
| Total Liabilities | 3,192,527 | 35,315 | ||||||
| Net Assets | $ | 1,151,404,501 | $ | 34,575,949 | ||||
NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 1,882,901,458 | $ | 29,915,220 | ||||
| Accumulated net investment income (loss) | (11,588,879 | ) | 233,551 | |||||
| Accumulated net realized gain (loss) on investments and foreign currency | (873,196,955 | ) | 41,189 | |||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 153,288,877 | 4,385,989 | ||||||
| Net Assets | $ | 1,151,404,501 | $ | 34,575,949 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 643,144,640 | $ | 29,310,131 | ||||
| Shares outstanding | 27,193,713 | 1,299,213 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 23.65 | $ | 22.56 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 206,340,573 | $ | 4,452,225 | ||||
| Shares outstanding | 8,873,167 | 202,045 | ||||||
| Net asset value per share (redemption price) | $ | 23.25 | $ | 22.04 | ||||
| Offering price per share ($23.25 divided by .9425 and $22.04 divided by .9425) | $ | 24.67 | $ | 23.38 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 141,622,281 | $ | 813,593 | ||||
| Shares outstanding | 6,295,304 | 37,315 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 22.50 | $ | 21.80 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | ||||||||
| Net Assets | $ | 160,297,007 | N/A | |||||
| Shares outstanding | 6,791,291 | N/A | ||||||
| Net asset value per share (offering price and redemption price) | $ | 23.60 | 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 Fund’s financial statements. |
The accompanying notes are an integral part of these financial statements.
20
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Assets & Liabilities — (Continued)
June 30, 2011 (Unaudited)
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Fund | Fund | |||||||
ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 113,011,821 | $ | 50,237,072 | ||||
| Receivable from Adviser | 17,802 | 18,467 | ||||||
| Receivable for Master Portfolio interest sold | 201,757 | 48,392 | ||||||
| Receivable for Fund shares sold | 45,628 | 5,657 | ||||||
| Prepaid expenses and other assets | 30,291 | 30,473 | ||||||
| Total Assets | 113,307,299 | 50,340,061 | ||||||
LIABILITIES: | ||||||||
| Payable to Directors and Officers | 1,901 | 774 | ||||||
| Payable for Fund shares repurchased | 247,385 | 54,050 | ||||||
| Payable for shareholder servicing fees | 22,008 | 10,139 | ||||||
| Payable for distribution fees | 5,002 | 5,399 | ||||||
| Accrued expenses and other liabilities | 58,231 | 22,164 | ||||||
| Total Liabilities | 334,527 | 92,526 | ||||||
| Net Assets | $ | 112,972,772 | $ | 50,247,535 | ||||
NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 273,040,102 | $ | 78,299,405 | ||||
| Accumulated net investment loss | (1,195,940 | ) | (2,114,256 | ) | ||||
| Accumulated net realized loss on investments and foreign currency | (175,416,114 | ) | (34,157,832 | ) | ||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 16,544,724 | 8,220,218 | ||||||
| Net Assets | $ | 112,972,772 | $ | 50,247,535 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 93,059,912 | $ | 34,808,966 | ||||
| Shares outstanding | 4,016,703 | 2,950,529 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 23.17 | $ | 11.80 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 9,709,776 | $ | 10,028,184 | ||||
| Shares outstanding | 425,736 | 852,966 | ||||||
| Net asset value per share (redemption price) | $ | 22.81 | $ | 11.76 | ||||
| Offering price per share ($22.81 divided by .9425 and $11.76 divided by .9425) | $ | 24.20 | $ | 12.48 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 3,053,907 | $ | 5,234,161 | ||||
| Shares outstanding | 136,039 | 451,402 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 22.45 | $ | 11.60 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | ||||||||
| Net Assets | $ | 7,149,177 | $ | 176,224 | ||||
| Shares outstanding | 306,553 | 14,893 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 23.32 | $ | 11.83 | ||||
| * | 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 Fund’s financial statements. |
The accompanying notes are an integral part of these financial statements.
21
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Assets & Liabilities — (Continued)
June 30, 2011 (Unaudited)
| The Water | The Multi- | |||||||
| Infrastructure | Disciplinary | |||||||
| Fund | Fund | |||||||
ASSETS: | ||||||||
| Investments in the Master Portfolio, at value* | $ | 18,283,848 | $ | 16,989,872 | ||||
| Receivable from Adviser | 10,875 | 7,902 | ||||||
| Receivable for Master Portfolio interest sold | 80,353 | — | ||||||
| Receivable for Fund shares sold | 100 | 576,459 | ||||||
| Prepaid expenses and other assets | 38,065 | 26,239 | ||||||
| Total Assets | 18,413,241 | 17,600,472 | ||||||
LIABILITIES: | ||||||||
| Payable for Master Portfolio interest purchased | — | 576,459 | ||||||
| Payable to Directors and Officers | 286 | 119 | ||||||
| Payable for Fund shares repurchased | 80,453 | — | ||||||
| Payable for shareholder servicing fees | 3,554 | 2,401 | ||||||
| Payable for distribution fees | 3,505 | 681 | ||||||
| Accrued expenses and other liabilities | 19,445 | 13,163 | ||||||
| Total Liabilities | 107,243 | 592,823 | ||||||
| Net Assets | $ | 18,305,998 | $ | 17,007,649 | ||||
NET ASSETS CONSIST OF: | ||||||||
| Paid in capital | $ | 26,081,146 | $ | 16,501,250 | ||||
| Accumulated net investment income (loss) | 43,544 | (21,581 | ) | |||||
| Accumulated net realized gain (loss) on investments, foreign currency and written option contracts | (8,274,690 | ) | 169,577 | |||||
| Net unrealized appreciation on: | ||||||||
| Investments and foreign currency | 79,164 | 119,067 | ||||||
| Written option contracts | 376,834 | 239,336 | ||||||
| Net Assets | $ | 18,305,998 | $ | 17,007,649 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS: | ||||||||
| Net Assets | $ | 6,903,112 | $ | 10,840,793 | ||||
| Shares outstanding | 803,350 | 989,003 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 8.59 | $ | 10.96 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A: | ||||||||
| Net Assets | $ | 7,367,990 | $ | 1,204,724 | ||||
| Shares outstanding | 861,627 | 110,275 | ||||||
| Net asset value per share (redemption price) | $ | 8.55 | $ | 10.92 | ||||
| Offering price per share ($8.55 divided by .9425 and $10.92 divided by .9425) | $ | 9.07 | $ | 11.59 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C: | ||||||||
| Net Assets | $ | 2,796,627 | $ | 1,065,848 | ||||
| Shares outstanding | 331,770 | 98,069 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 8.43 | $ | 10.87 | ||||
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS: | ||||||||
| Net Assets | $ | 1,238,269 | $ | 3,896,284 | ||||
| Shares outstanding | 142,893 | 354,422 | ||||||
| Net asset value per share (offering price and redemption price) | $ | 8.67 | $ | 10.99 | ||||
| * | 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 Fund’s financial statements. |
The accompanying notes are an integral part of these financial statements.
22
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Operations
For the Six Months Ended June 30, 2011 (Unaudited)
| The Internet | The Global | |||||||
| Fund | Fund | |||||||
INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 380,323 | $ | 79,145 | ||||
| Interest | 3 | — | ||||||
| Income from securities lending | 67,519 | 498 | ||||||
| Expenses allocated from Master Portfolio | (842,575 | ) | (58,507 | ) | ||||
| Net investment income (loss) from Master Portfolio | (394,730 | ) | 21,136 | |||||
EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 1,772 | 880 | ||||||
| Distribution fees — Advisor Class C | 607 | 240 | ||||||
| Shareholder servicing fees — Advisor Class A | 1,772 | 880 | ||||||
| Shareholder servicing fees — Advisor Class C | 202 | 80 | ||||||
| Shareholder servicing fees — No Load Class | 149,137 | 5,748 | ||||||
| Transfer agent fees and expenses | 83,829 | 9,816 | ||||||
| Reports to shareholders | 35,961 | 1,778 | ||||||
| Administration fees | 21,693 | 965 | ||||||
| Professional fees | 6,167 | 4,332 | ||||||
| Directors’ and Officers’ fees and expenses | 4,652 | 201 | ||||||
| Registration fees | 23,578 | 21,559 | ||||||
| Fund accounting fees | 3,052 | 134 | ||||||
| Other expenses | 2,282 | 111 | ||||||
| Total expenses | 334,704 | 46,724 | ||||||
| Less, expense reimbursement | (32,502 | ) | (66,812 | ) | ||||
| Net expenses | 302,202 | (20,088 | ) | |||||
| Net investment income (loss) | (696,932 | ) | 41,224 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 17,169,857 | 251,528 | ||||||
| Net change in unrealized depreciation of: | ||||||||
| Investments and foreign currency | (3,982,488 | ) | (403,974 | ) | ||||
| Net gain (loss) on investments | 13,187,369 | (152,446 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | $ | 12,490,437 | $ | (111,222 | ) | |||
| † Net of Foreign Taxes Withheld of: | $ | 9,288 | $ | 10,097 | ||||
The accompanying notes are an integral part of these financial statements.
23
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Operations — (Continued)
For the Six Months Ended June 30, 2011 (Unaudited)
| The Paradigm | The Medical | |||||||
| Fund | Fund | |||||||
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 7,520,240 | $ | 415,564 | ||||
| Interest | 183,241 | — | ||||||
| Income from securities lending | 958,149 | 18,756 | ||||||
| Expenses allocated from Master Portfolio | (8,188,844 | ) | (218,836 | ) | ||||
| Net investment income from Master Portfolio | 472,786 | 215,484 | ||||||
EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 275,038 | 5,342 | ||||||
| Distribution fees — Advisor Class C | 558,042 | 2,762 | ||||||
| Shareholder servicing fees — Advisor Class A | 275,038 | 5,342 | ||||||
| Shareholder servicing fees — Advisor Class C | 186,014 | 920 | ||||||
| Shareholder servicing fees — No Load Class | 842,424 | 33,455 | ||||||
| Shareholder servicing fees — Institutional Class | 151,609 | — | ||||||
| Transfer agent fees and expenses | 328,282 | 15,831 | ||||||
| Reports to shareholders | 151,642 | 6,041 | ||||||
| Administration fees | 216,507 | 5,611 | ||||||
| Professional fees | 68,491 | 3,437 | ||||||
| Directors’ and Officers’ fees and expenses | 45,057 | 1,166 | ||||||
| Registration fees | 40,580 | 22,351 | ||||||
| Fund accounting fees | 30,870 | 784 | ||||||
| Other expenses | 25,007 | 593 | ||||||
| Total expenses | 3,194,601 | 103,635 | ||||||
| Less, expense waiver for Institutional Class shareholder servicing fees | (113,707 | ) | — | |||||
| Less, expense reimbursement | (794,269 | ) | (93,538 | ) | ||||
| Net expenses | 2,286,625 | 10,097 | ||||||
| Net investment income (loss) | (1,813,839 | ) | 205,387 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 148,163,527 | 719,065 | ||||||
| Realized gain distributions received from other investment companies | 7,906 | — | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (128,317,821 | ) | 3,703,533 | |||||
| Net gain on investments | 19,853,612 | 4,422,598 | ||||||
| Net increase in net assets resulting from operations | $ | 18,039,773 | $ | 4,627,985 | ||||
| † Net of Foreign Taxes Withheld of: | $ | 403,895 | $ | 28,647 | ||||
The accompanying notes are an integral part of these financial statements.
24
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Operations — (Continued)
For the Six Months Ended June 30, 2011 (Unaudited)
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Fund | Fund | |||||||
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 924,187 | $ | 451,104 | ||||
| Interest | 1 | 18 | ||||||
| Income from securities lending | 38,822 | 18,203 | ||||||
| Expenses allocated from Master Portfolio | (916,200 | ) | (381,525 | ) | ||||
| Net investment income from Master Portfolio | 46,810 | 87,800 | ||||||
EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 13,300 | 14,422 | ||||||
| Distribution fees — Advisor Class C | 12,222 | 20,429 | ||||||
| Shareholder servicing fees — Advisor Class A | 13,300 | 14,422 | ||||||
| Shareholder servicing fees — Advisor Class C | 4,074 | 6,810 | ||||||
| Shareholder servicing fees — No Load Class | 132,324 | 44,781 | ||||||
| Shareholder servicing fees — Institutional Class | 8,637 | 193 | ||||||
| Transfer agent fees and expenses | 44,676 | 18,052 | ||||||
| Reports to shareholders | 23,258 | 3,442 | ||||||
| Administration fees | 23,784 | 9,631 | ||||||
| Professional fees | 6,033 | 3,992 | ||||||
| Directors’ and Officers’ fees and expenses | 4,909 | 2,032 | ||||||
| Registration fees | 29,189 | 25,308 | ||||||
| Fund accounting fees | 3,360 | 1,345 | ||||||
| Other expenses | 3,236 | 1,176 | ||||||
| Total expenses | 322,302 | 166,035 | ||||||
| Less, expense waiver for Institutional Class shareholder servicing fees | (6,478 | ) | (145 | ) | ||||
| Less, expense reimbursement | (162,289 | ) | (78,130 | ) | ||||
| Net expenses | 153,535 | 87,760 | ||||||
| Net investment income (loss) | (106,725 | ) | 40 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 13,502,912 | 657,234 | ||||||
| Realized gain distributions received from other investment companies | — | 3,214 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (14,030,589 | ) | 986,832 | |||||
| Net gain (loss) on investments | (527,677 | ) | 1,647,280 | |||||
| Net increase (decrease) in net assets resulting from operations | $ | (634,402 | ) | $ | 1,647,320 | |||
| † Net of Foreign Taxes Withheld of: | $ | 53,967 | $ | 27,503 | ||||
The accompanying notes are an integral part of these financial statements.
25
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Operations — (Continued)
For the Six Months Ended June 30, 2011 (Unaudited)
| The Water | The Multi- | |||||||
| Infrastructure | Disciplinary | |||||||
| Fund | Fund | |||||||
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Dividends† | $ | 24,787 | $ | — | ||||
| Interest | 229,642 | 332,159 | ||||||
| Income from securities lending | 2,119 | 214 | ||||||
| Expenses allocated from Master Portfolio | (135,972 | ) | (72,970 | ) | ||||
| Net investment income from Master Portfolio | 120,576 | 259,403 | ||||||
EXPENSES: | ||||||||
| Distribution fees — Advisor Class A | 10,125 | 570 | ||||||
| Distribution fees — Advisor Class C | 10,643 | 2,121 | ||||||
| Shareholder servicing fees — Advisor Class A | 10,125 | 570 | ||||||
| Shareholder servicing fees — Advisor Class C | 3,548 | 707 | ||||||
| Shareholder servicing fees — No Load Class | 8,688 | 8,804 | ||||||
| Shareholder servicing fees — Institutional Class | 1,710 | 1,521 | ||||||
| Transfer agent fees and expenses | 13,530 | 10,835 | ||||||
| Reports to shareholders | 10,276 | 249 | ||||||
| Administration fees | 3,462 | 1,541 | ||||||
| Professional fees | 4,699 | 2,418 | ||||||
| Directors’ and Officers’ fees and expenses | 747 | 321 | ||||||
| Registration fees | 27,670 | 27,658 | ||||||
| Fund accounting fees | 490 | 230 | ||||||
| Other expenses | 472 | 70 | ||||||
| Total expenses | 106,185 | 57,615 | ||||||
| Less, expense waiver for Institutional Class shareholder servicing fees | (1,283 | ) | (1,141 | ) | ||||
| Less, expense reimbursement | (61,110 | ) | (56,865 | ) | ||||
| Net expenses | 43,792 | (391 | ) | |||||
| Net investment income | 76,784 | 259,794 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS ALLOCATED FROM MASTER PORTFOLIOS: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments and foreign currency | (382,276 | ) | (8,036 | ) | ||||
| Written option contracts expired or closed | 1,524,227 | 174,616 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | 58,437 | 49,842 | ||||||
| Written option contracts | (786,607 | ) | 73,209 | |||||
| Net gain on investments | 413,781 | 289,631 | ||||||
| Net increase in net assets resulting from operations | $ | 490,565 | $ | 549,425 | ||||
| † Net of Foreign Taxes Withheld of: | $ | 2,110 | $ | — | ||||
The accompanying notes are an integral part of these financial statements.
26
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 | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (696,932 | ) | $ | (913,022 | ) | $ | 41,224 | $ | 24,135 | ||||||
| Net realized gain on sale of investments and foreign currency | 17,169,857 | 3,608,256 | 251,528 | 621,170 | ||||||||||||
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | (3,982,488 | ) | 18,103,348 | (403,974 | ) | 246,651 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | 12,490,437 | 20,798,582 | (111,222 | ) | 891,956 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | ||||||||||||||||
| Net investment income: | — | — | — | (43,877 | ) | |||||||||||
| Total distributions | — | — | — | (43,877 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | ||||||||||||||||
| Net investment income: | — | — | — | (5,645 | ) | |||||||||||
| Total distributions | — | — | — | (5,645 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | ||||||||||||||||
| Net investment income: | — | — | — | (303 | ) | |||||||||||
| Total distributions | — | — | — | (303 | ) | |||||||||||
CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 4,684,348 | 3,021,151 | 654,755 | 1,128,676 | ||||||||||||
| Redemption fees | 404 | 170 | 61 | 102 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | — | — | 43,193 | ||||||||||||
| Cost of shares redeemed | (8,045,978 | ) | (15,163,154 | ) | (694,739 | ) | (1,733,680 | ) | ||||||||
| Net decrease in net assets resulting from capital share transactions | (3,361,226 | ) | (12,141,833 | ) | (39,923 | ) | (561,709 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | 218,094 | 1,362,470 | 11,000 | 289,022 | ||||||||||||
| Redemption fees | 165 | 16 | — | 14 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | — | — | 1,741 | ||||||||||||
| Cost of shares redeemed | (929,252 | ) | (412,504 | ) | (9,855 | ) | (50,310 | ) | ||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (710,993 | ) | 949,982 | 1,145 | 240,467 | |||||||||||
The accompanying notes are an integral part of these financial statements.
27
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 | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | $ | 20,495 | $ | 43,167 | $ | 29,647 | $ | 24,258 | ||||||||
| Redemption fees | — | — | — | — | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | — | — | 303 | ||||||||||||
| Cost of shares redeemed | (133,615 | ) | — | (11,298 | ) | (6,489 | ) | |||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (113,120 | ) | 43,167 | 18,349 | 18,072 | |||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS: | 8,305,098 | 9,649,898 | (131,651 | ) | 538,961 | |||||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 115,173,790 | 105,523,892 | 5,312,510 | 4,773,549 | ||||||||||||
| End of period* | $ | 123,478,888 | $ | 115,173,790 | $ | 5,180,859 | $ | 5,312,510 | ||||||||
| *Including undistributed net investment income (loss) of: | $ | (642,832 | ) | $ | 54,100 | $ | 17,823 | $ | (23,401 | ) | ||||||
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 115,130 | 92,334 | 139,608 | 281,577 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | — | — | 9,289 | ||||||||||||
| Shares redeemed | (199,802 | ) | (461,380 | ) | (149,177 | ) | (433,433 | ) | ||||||||
| Net decrease in shares outstanding | (84,672 | ) | (369,046 | ) | (9,569 | ) | (142,567 | ) | ||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 5,334 | 39,616 | 2,368 | 69,249 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | — | — | 373 | ||||||||||||
| Shares redeemed | (24,255 | ) | (12,363 | ) | (2,139 | ) | (12,056 | ) | ||||||||
| Net increase (decrease) in shares outstanding | (18,921 | ) | 27,253 | 229 | 57,566 | |||||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 526 | 1,472 | 6,599 | 6,225 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | — | — | 65 | ||||||||||||
| Shares redeemed | (3,340 | ) | — | (2,376 | ) | (1,651 | ) | |||||||||
| Net increase (decrease) in shares outstanding | (2,814 | ) | 1,472 | 4,223 | 4,639 | |||||||||||
The accompanying notes are an integral part of these financial statements.
28
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 | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (1,813,839 | ) | $ | 5,338,769 | $ | 205,387 | $ | 155,037 | |||||||
| Net realized gain (loss) on sale of investments and foreign currency and distributions received from other investment companies | 148,171,433 | (106,442,949 | ) | 719,065 | (220,195 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) of investments and foreign currency | (128,317,821 | ) | 278,030,932 | 3,703,533 | 1,376,200 | |||||||||||
| Net increase in net assets resulting from operations | 18,039,773 | 176,926,752 | 4,627,985 | 1,311,042 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | ||||||||||||||||
| Net investment income: | — | (10,863,592 | ) | — | (141,862 | ) | ||||||||||
| Total distributions | — | (10,863,592 | ) | — | (141,862 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | ||||||||||||||||
| Net investment income: | — | (3,108,298 | ) | — | (12,747 | ) | ||||||||||
| Total distributions | — | (3,108,298 | ) | — | (12,747 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | ||||||||||||||||
| Net investment income: | — | (1,760,303 | ) | — | (688 | ) | ||||||||||
| Total distributions | — | (1,760,303 | ) | — | (688 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | ||||||||||||||||
| Net investment income: | — | (2,558,528 | ) | N/A | N/A | |||||||||||
| Total distributions | — | (2,558,528 | ) | N/A | N/A | |||||||||||
CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 53,534,611 | 102,887,659 | 2,834,259 | 10,282,693 | ||||||||||||
| Redemption fees | 5,432 | 13,160 | 334 | 132 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 10,197,239 | — | 140,271 | ||||||||||||
| Cost of shares redeemed | (108,276,924 | ) | (340,164,186 | ) | (3,210,155 | ) | (6,758,118 | ) | ||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (54,736,881 | ) | (227,066,128 | ) | (375,562 | ) | 3,664,978 | |||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | 12,938,327 | 26,261,163 | 430,245 | 1,196,355 | ||||||||||||
| Redemption fees | 1,816 | 4,893 | — | 177 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 2,635,918 | — | 7,167 | ||||||||||||
| Cost of shares redeemed | (36,313,974 | ) | (85,179,916 | ) | (798,749 | ) | (1,492,863 | ) | ||||||||
| Net decrease in net assets resulting from capital share transactions | (23,373,831 | ) | (56,277,942 | ) | (368,504 | ) | (289,164 | ) | ||||||||
The accompanying notes are an integral part of these financial statements.
29
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 | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | $ | 4,763,585 | $ | 8,298,564 | $ | 46,630 | $ | 356,622 | ||||||||
| Redemption fees | 120 | 712 | — | — | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 1,536,819 | — | 441 | ||||||||||||
| Cost of shares redeemed | (17,529,578 | ) | (47,196,534 | ) | (30,578 | ) | (139,626 | ) | ||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (12,765,873 | ) | (37,360,439 | ) | 16,052 | 217,437 | ||||||||||
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | ||||||||||||||||
| Proceeds from shares sold | 30,564,544 | 49,106,216 | N/A | N/A | ||||||||||||
| Redemption fees | 544 | 541 | N/A | N/A | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 2,167,870 | N/A | N/A | ||||||||||||
| Cost of shares redeemed | (14,475,430 | ) | (53,388,379 | ) | N/A | N/A | ||||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 16,089,658 | (2,113,752 | ) | N/A | N/A | |||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS: | (56,747,154 | ) | (164,182,230 | ) | 3,899,971 | 4,748,996 | ||||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 1,208,151,655 | 1,372,333,885 | 30,675,978 | 25,926,982 | ||||||||||||
| End of period* | $ | 1,151,404,501 | $ | 1,208,151,655 | $ | 34,575,949 | $ | 30,675,978 | ||||||||
| *Including undistributed net investment income (loss) of: | $ | (11,588,879 | ) | $ | (9,775,040 | ) | $ | 233,551 | $ | 28,164 | ||||||
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 2,233,260 | 4,985,324 | 135,476 | 545,733 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 439,158 | — | 7,182 | ||||||||||||
| Shares redeemed | (4,517,678 | ) | (16,845,311 | ) | (159,195 | ) | (355,336 | ) | ||||||||
| Net increase (decrease) in shares outstanding | (2,284,418 | ) | (11,420,829 | ) | (23,719 | ) | 197,579 | |||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 548,573 | 1,278,667 | 21,237 | 64,338 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 115,297 | — | 375 | ||||||||||||
| Shares redeemed | (1,535,583 | ) | (4,218,313 | ) | (39,965 | ) | (80,705 | ) | ||||||||
| Net decrease in shares outstanding | (987,010 | ) | (2,824,349 | ) | (18,728 | ) | (15,992 | ) | ||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 206,065 | 417,554 | 2,268 | 19,193 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 69,320 | — | 23 | ||||||||||||
| Shares redeemed | (766,494 | ) | (2,404,604 | ) | (1,566 | ) | (7,443 | ) | ||||||||
| Net increase (decrease) in shares outstanding | (560,429 | ) | (1,917,730 | ) | 702 | 11,773 | ||||||||||
The accompanying notes are an integral part of these financial statements.
30
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 | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | ||||||||||||||||
| Shares sold | 1,277,388 | 2,381,963 | N/A | N/A | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 93,604 | N/A | N/A | ||||||||||||
| Shares redeemed | (605,367 | ) | (2,583,750 | ) | N/A | N/A | ||||||||||
| Net increase (decrease) in shares outstanding | 672,021 | (108,183 | ) | N/A | N/A | |||||||||||
The accompanying notes are an integral part of these financial statements.
31
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| The Small Cap Opportunities Fund | The Market Opportunities Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (106,725 | ) | $ | (359,966 | ) | $ | 40 | $ | 121,463 | ||||||
| Net realized gain (loss) on sale of investments and foreign currency and distributions received from other investment companies | 13,502,912 | (588,589 | ) | 660,448 | (336,643 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) of investments and foreign currency | (14,030,589 | ) | 20,471,453 | 986,832 | 6,167,781 | |||||||||||
| Net increase (decrease) in net assets resulting from operations | (634,402 | ) | 19,522,898 | 1,647,320 | 5,952,601 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | ||||||||||||||||
| Net investment income: | — | (2,187,430 | ) | — | (1,939,475 | ) | ||||||||||
| Total distributions | — | (2,187,430 | ) | — | (1,939,475 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | ||||||||||||||||
| Net investment income: | — | (165,531 | ) | — | (677,980 | ) | ||||||||||
| Total distributions | — | (165,531 | ) | — | (677,980 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | ||||||||||||||||
| Net investment income: | — | (35,675 | ) | — | (243,526 | ) | ||||||||||
| Total distributions | — | (35,675 | ) | — | (243,526 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | ||||||||||||||||
| Net investment income: | — | (163,727 | ) | — | (11,629 | ) | ||||||||||
| Total distributions | — | (163,727 | ) | — | (11,629 | ) | ||||||||||
CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 1,419,902 | 14,985,968 | 318,578 | 2,555,924 | ||||||||||||
| Redemption fees | 99 | 3,294 | 10 | 309 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 2,097,736 | — | 1,892,329 | ||||||||||||
| Cost of shares redeemed | (38,128,679 | ) | (62,304,199 | ) | (5,154,230 | ) | (9,242,637 | ) | ||||||||
| Net decrease in net assets resulting from capital share transactions | (36,708,678 | ) | (45,217,201 | ) | (4,835,642 | ) | (4,794,075 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | 552,683 | 2,116,520 | 192,570 | 2,148,005 | ||||||||||||
| Redemption fees | — | 717 | 30 | 4,256 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 132,990 | — | 533,060 | ||||||||||||
| Cost of shares redeemed | (2,284,309 | ) | (6,197,572 | ) | (4,746,380 | ) | (7,979,700 | ) | ||||||||
| Net decrease in net assets resulting from capital share transactions | (1,731,626 | ) | (3,947,345 | ) | (4,553,780 | ) | (5,294,379 | ) | ||||||||
The accompanying notes are an integral part of these financial statements.
32
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Statements of Changes in Net Assets — (Continued)
| The Small Cap Opportunities Fund | The Market Opportunities Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | $ | 49,106 | $ | 411,674 | $ | 116,197 | $ | 594,179 | ||||||||
| Redemption fees | — | — | — | 2,058 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 21,022 | — | 208,569 | ||||||||||||
| Cost of shares redeemed | (415,649 | ) | (1,792,550 | ) | (596,255 | ) | (1,567,544 | ) | ||||||||
| Net decrease in net assets resulting from capital share transactions | (366,543 | ) | (1,359,854 | ) | (480,058 | ) | (762,738 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | ||||||||||||||||
| Proceeds from shares sold | 530,840 | 1,069,997 | — | 193,362 | ||||||||||||
| Redemption fees | — | 14 | — | — | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 111,423 | — | 603 | ||||||||||||
| Cost of shares redeemed | (3,162,881 | ) | (12,224,759 | ) | (41,035 | ) | (11,602 | ) | ||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (2,632,041 | ) | (11,043,325 | ) | (41,035 | ) | 182,363 | |||||||||
TOTAL DECREASE IN NET ASSETS: | (42,073,290 | ) | (44,597,190 | ) | (8,263,195 | ) | (7,588,838 | ) | ||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 155,046,062 | 199,643,252 | 58,510,730 | 66,099,568 | ||||||||||||
| End of period* | $ | 112,972,772 | $ | 155,046,062 | $ | 50,247,535 | $ | 58,510,730 | ||||||||
| *Including undistributed net investment loss of: | $ | (1,195,940 | ) | $ | (1,089,215 | ) | $ | (2,114,256 | ) | $ | (2,114,296 | ) | ||||
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 60,466 | 663,539 | 26,682 | 234,324 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 90,071 | — | 165,414 | ||||||||||||
| Shares redeemed | (1,630,827 | ) | (2,905,365 | ) | (442,361 | ) | (841,037 | ) | ||||||||
| Net decrease in shares outstanding | (1,570,361 | ) | (2,151,755 | ) | (415,679 | ) | (441,299 | ) | ||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 23,882 | 103,386 | 16,530 | 192,473 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 5,792 | — | 46,719 | ||||||||||||
| Shares redeemed | (98,922 | ) | (302,155 | ) | (403,032 | ) | (736,967 | ) | ||||||||
| Net decrease in shares outstanding | (75,040 | ) | (192,977 | ) | (386,502 | ) | (497,775 | ) | ||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 2,134 | 19,435 | 9,951 | 54,608 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 928 | — | 18,490 | ||||||||||||
| Shares redeemed | (18,247 | ) | (87,406 | ) | (51,336 | ) | (146,542 | ) | ||||||||
| Net decrease in shares outstanding | (16,113 | ) | (67,043 | ) | (41,385 | ) | (73,444 | ) | ||||||||
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 — (Continued)
| The Small Cap Opportunities Fund | The Market Opportunities Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | ||||||||||||||||
| Shares sold | 22,552 | 49,716 | — | 17,668 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 4,757 | — | 53 | ||||||||||||
| Shares redeemed | (134,278 | ) | (580,939 | ) | (3,566 | ) | (1,020 | ) | ||||||||
| Net increase (decrease) in shares outstanding | (111,726 | ) | (526,466 | ) | (3,566 | ) | 16,701 | |||||||||
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 Water Infrastructure Fund | The Multi-Disciplinary Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income | $ | 76,784 | $ | 181,587 | $ | 259,794 | $ | 76,552 | ||||||||
| Net realized gain (loss) on sale of investments, foreign currency and written options contracts expired or closed | 1,141,951 | (2,474,817 | ) | 166,580 | 102,161 | |||||||||||
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | (728,170 | ) | 806,181 | 123,051 | 151,265 | |||||||||||
| Net increase (decrease) in net assets resulting from operations | 490,565 | (1,487,049 | ) | 549,425 | 329,978 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS — NO LOAD CLASS: | ||||||||||||||||
| Net investment income: | — | (60,253 | ) | (173,448 | ) | (75,832 | ) | |||||||||
| Net realized gains | — | — | — | (97,584 | ) | |||||||||||
| Total distributions | — | (60,253 | ) | (173,448 | ) | (173,416 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS A: | ||||||||||||||||
| Net investment income: | — | (56,524 | ) | (17,045 | ) | (7,026 | ) | |||||||||
| Net realized gains | — | — | — | (9,873 | ) | |||||||||||
| Total distributions | — | (56,524 | ) | (17,045 | ) | (16,899 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS — ADVISOR CLASS C: | ||||||||||||||||
| Net investment income: | — | (3,967 | ) | (15,494 | ) | (3,169 | ) | |||||||||
| Net realized gains | — | — | — | (3,569 | ) | |||||||||||
| Total distributions | — | (3,967 | ) | (15,494 | ) | (6,738 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS — INSTITUTIONAL CLASS: | ||||||||||||||||
| Net investment income: | — | (44,989 | ) | (62,535 | ) | (4,248 | ) | |||||||||
| Net realized gains | — | — | — | (3,925 | ) | |||||||||||
| Total distributions | — | (44,989 | ) | (62,535 | ) | (8,173 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS — NO LOAD CLASS: | ||||||||||||||||
| Proceeds from shares sold | 715,400 | 3,810,415 | 7,332,782 | 2,878,206 | ||||||||||||
| Redemption fees | 24 | 101 | 1,870 | 51 | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 54,002 | 91,290 | 122,312 | ||||||||||||
| Cost of shares redeemed | (991,103 | ) | (3,555,293 | ) | (307,265 | ) | (554,675 | ) | ||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (275,679 | ) | 309,225 | 7,118,677 | 2,445,894 | |||||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS A: | ||||||||||||||||
| Proceeds from shares sold | 734,186 | 6,375,421 | 869,761 | 309,589 | ||||||||||||
| Redemption fees | 457 | 1,662 | — | — | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 50,605 | 16,618 | 16,899 | ||||||||||||
| Cost of shares redeemed | (3,670,630 | ) | (5,936,700 | ) | (53,339 | ) | (79,254 | ) | ||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (2,935,987 | ) | 490,988 | 833,040 | 247,234 | |||||||||||
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 Water Infrastructure Fund | The Multi-Disciplinary Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CAPITAL SHARE TRANSACTIONS — ADVISOR CLASS C: | ||||||||||||||||
| Proceeds from shares sold | $ | 606,296 | $ | 1,279,796 | $ | 912,118 | $ | 15,000 | ||||||||
| Redemption fees | — | — | — | — | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 2,625 | 15,144 | 6,667 | ||||||||||||
| Cost of shares redeemed | (712,021 | ) | (943,226 | ) | — | (5,570 | ) | |||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (105,725 | ) | 339,195 | 927,262 | 16,097 | |||||||||||
CAPITAL SHARE TRANSACTIONS — INSTITUTIONAL CLASS: | ||||||||||||||||
| Proceeds from shares sold | 458,982 | 3,936,264 | 3,676,400 | 26,000 | ||||||||||||
| Redemption fees | 2,793 | 278 | — | — | ||||||||||||
| Proceeds from shares issued to holders in reinvestment of dividends | — | 1,972 | 60,477 | 8,173 | ||||||||||||
| Cost of shares redeemed | (3,452,913 | ) | (2,421,527 | ) | (4,750 | ) | — | |||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | (2,991,138 | ) | 1,516,987 | 3,732,127 | 34,173 | |||||||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS: | (5,817,964 | ) | 1,003,613 | 12,892,009 | 2,868,150 | |||||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 24,123,962 | 23,120,349 | 4,115,640 | 1,247,490 | ||||||||||||
| End of period* | $ | 18,305,998 | $ | 24,123,962 | $ | 17,007,649 | $ | 4,115,640 | ||||||||
| *Including undistributed net investment income (loss) of: | $ | 43,544 | $ | (33,240 | ) | $ | (21,581 | ) | $ | (12,853 | ) | |||||
CHANGES IN SHARES OUTSTANDING — NO LOAD CLASS: | ||||||||||||||||
| Shares sold | 83,815 | 448,551 | 675,358 | 278,898 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 6,441 | 8,371 | 11,816 | ||||||||||||
| Shares redeemed | (115,744 | ) | (429,862 | ) | (28,137 | ) | (52,420 | ) | ||||||||
| Net increase (decrease) in shares outstanding | (31,929 | ) | 25,130 | 655,592 | 238,294 | |||||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS A: | ||||||||||||||||
| Shares sold | 85,342 | 752,587 | 79,502 | 29,903 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 6,068 | 1,530 | 1,635 | ||||||||||||
| Shares redeemed | (433,116 | ) | (721,854 | ) | (4,850 | ) | (7,901 | ) | ||||||||
| Net increase (decrease) in shares outstanding | (347,774 | ) | 36,801 | 76,182 | 23,637 | |||||||||||
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 Water Infrastructure Fund | The Multi-Disciplinary Fund | |||||||||||||||
| For the | For the | For the | For the | |||||||||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2011 | December 31, 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
CHANGES IN SHARES OUTSTANDING — ADVISOR CLASS C: | ||||||||||||||||
| Shares sold | 72,303 | 151,009 | 84,360 | 1,486 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 318 | 1,400 | 650 | ||||||||||||
| Shares redeemed | (84,602 | ) | (117,149 | ) | — | (538 | ) | |||||||||
| Net increase (decrease) in shares outstanding | (12,299 | ) | 34,178 | 85,760 | 1,598 | |||||||||||
CHANGES IN SHARES OUTSTANDING — INSTITUTIONAL CLASS: | ||||||||||||||||
| Shares sold | 53,734 | 470,451 | 335,756 | 2,512 | ||||||||||||
| Shares issued in reinvestments of dividends and distributions | — | 234 | 5,531 | 790 | ||||||||||||
| Shares redeemed | (407,423 | ) | (300,650 | ) | (429 | ) | — | |||||||||
| Net increase (decrease) in shares outstanding | (353,689 | ) | 170,035 | 340,858 | 3,302 | |||||||||||
The accompanying notes are an integral part of these financial statements.
37
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements
June 30, 2011 (Unaudited)
1. Organization
Kinetics Mutual Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and is incorporated in the State of Maryland. The Company is an open-end management investment company issuing its shares in series. One billion shares are authorized for the Company with a par value of $0.001 per share. The series of the Company presently authorized are The Internet Fund (“Internet”), The Global Fund (“Global”), The Paradigm Fund (“Paradigm”), The Medical Fund (“Medical”), The Small Cap Opportunities Fund (“Small Cap”), The Market Opportunities Fund (“Market Opportunities”), The Water Infrastructure Fund (“Water Infrastructure”), and The Multi-Disciplinary Fund (“Multi-Disciplinary”). Investment operations of the Company began on October 21, 1996 (Internet), September 30, 1999 (Medical), December 31, 1999 (Global and Paradigm), March 20, 2000 (Small Cap), January 31, 2006 (Market Opportunities), June 29, 2007 (Water Infrastructure), and February 11, 2008 (Multi-Disciplinary). Each series, unlike many other investment companies which directly acquire and manage their own portfolios of securities, seeks to achieve its investment objective by investing all of its investable assets in a corresponding portfolio series (each a “Master Portfolio” and collectively the “Master Portfolios”) of Kinetics Portfolios Trust (the “Trust”).
On April 28, 2000 (January 31, 2006 with respect to Market Opportunities, June 29, 2007 with respect to Water Infrastructure, and February 11, 2008 with respect to Multi-Disciplinary), each series in the Company entered into a master-feeder fund structure. By entering into this structure, each series (each a “Feeder Fund” and collectively, the “Feeder Funds”) invested all of its assets in a corresponding Master Portfolio which had the same investment objective as the Feeder Fund. Each Master Portfolio has multiple feeder funds. Each Feeder Fund receives a proportionate amount of interest in the Master Portfolio equal to its relative contribution of capital. Thus, each Feeder Fund is allocated its portion of income, gains (losses) and expenses from the Master Portfolio.
38
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Each Feeder Fund’s respective interest in the corresponding Master Portfolio as of June 30, 2011 is as follows:
| Interest in | ||||
| Master Portfolio | ||||
| Internet Fund | 99.989% | |||
| Global Fund | 99.886% | |||
| Paradigm Fund | 96.983% | |||
| Medical Fund | 99.947% | |||
| Small Cap Fund | 99.978% | |||
| Market Opportunities Fund | 99.978% | |||
| Water Infrastructure Fund | 99.439% | |||
| Multi-Disciplinary Fund | 99.286% | |||
Prior to the conversion to a master-feeder fund structure on April 28, 2000, each then existing series conducted its own investment operations.
As of June 30, 2011 each of the Feeder Funds offers Advisor Class A shares. Advisor Class A shares are subject to an annual Rule 12b-1 fee of 0.25% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. The Advisor Class A shares are also subject to a front-end sales charge of 5.75%.
As of June 30, 2011, each of the Feeder Funds offers Advisor Class C shares. Advisor Class C shares are subject to an annual Rule 12b-1 fee of 0.75% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. Advisor Class C shares do not have a sales charge.
As of June 30, 2011, each of the Feeder Funds offers No Load Class shares. No Load Class shares are subject to a shareholder servicing fee of 0.25% of average daily net assets but do not have 12b-1 fees or a sales charge.
As of June 30, 2011 the Paradigm, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary Funds offer Institutional Class shares. Institutional Class shares are subject to a shareholder servicing fee of 0.20% of average daily net assets but do not have 12b-1 fees or a sales charge.
Each class of shares for each Fund has identical rights and privileges except with respect to the Rule 12b-1 fees paid by the Advisor Class A and Advisor Class C shares, the sales charge on the Advisor Class A shares, the shareholder servicing fees paid by the Advisor Class A, Advisor Class C, No Load Class and 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
39
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
unrealized gains or losses on investments are allocated to each class based on its relative net assets.
Refer to the Master Portfolio’s financial statements to obtain information about the investment objective of the corresponding Feeder Fund. The financial statements of the Master Portfolios, including the portfolios of investments, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.
2. Significant Accounting Policies
Security Valuation
Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Purchased non-exchange traded options, futures, unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the last reported sale price on an exchange on which the option is traded. If no sales are reported on a particular day, the mean between the highest bid and the lowest asked quotations at the close of the exchanges will be used. Fixed-income securities (other than obligations having a maturity of 60 days or less) are normally valued on the basis of quotes obtained from pricing services, which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data.
Instruments with remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value. Other assets and securities for which no quotations are readily available (including restricted securities) are valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. At June 30, 2011, 1.53%, 0.00%, 0.00%,
40
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
and 0.00% of the net assets of the Internet Portfolio, Paradigm Portfolio, Medical Portfolio, and Small Cap Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at June 30, 2011.
Repurchase Agreements
Each Master Portfolio may enter into repurchase agreements with banks that are members of the Federal Reserve System or securities dealers who are members of a national securities exchange or are primary dealers in U.S. Government Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 100% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.
Written Option Accounting
The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When the Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.
41
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Foreign Currency Translations
The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market values of investment securities and other assets and liabilities are translated at the exchange rate of such currencies against the U.S. dollar, as provided by an approved pricing service, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. The Master Portfolios do not isolate and treat as ordinary income that portion of the results of operations arising as a result of changes in the exchange rate from the fluctuations arising from changes in the market prices of securities held during the period. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.
Restricted and Illiquid Securities
The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At June 30, 2011 the following Master Portfolio held securities restricted to institutional shares (144A securities):
| Percentage of | ||||||||
| Market Value | Net Assets | |||||||
| The Multi-Disciplinary Portfolio | $ | 1,133,065 | 6.62 | % | ||||
An illiquid asset is any asset which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the Master Portfolio has valued the investment. At June 30, 2011, the following Master Portfolios held illiquid securities:
| Market | Percentage of | |||||||
| Value | Net Assets | |||||||
| The Internet Portfolio | $ | 1,891,145 | 1.53 | % | ||||
| The Paradigm Portfolio | $ | 10 | 0.00 | % | ||||
| The Medical Portfolio | $ | 0 | 0.00 | % | ||||
| The Small Cap Portfolio | $ | 3 | 0.00 | % | ||||
When-Issued Securities
The Master Portfolios may purchase securities on a when-issued or delayed delivery basis. Although the purchase amounts of these securities are
42
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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.
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.
43
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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, 2010, open tax years include the tax years ended December 31, 2007 through 2010. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Other
Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income is recognized on the accrual basis. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates.
3. Investment Adviser
Effective May 1, 2011, Kinetics Asset Management LLC, Kinetics Advisers, LLC, Horizon Asset Management, LLC, together with various affiliates, became wholly-owned subsidiaries of a newly-formed entity, Horizon Kinetics LLC. 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. Under the terms of the Agreements, the
44
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Master Portfolios compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets.
The Adviser has voluntarily agreed to waive a portion of its advisory fee and/or reimburse certain operating expenses as deemed appropriate. The Adviser may discontinue the voluntary waiver/reimbursement at any time; these waivers/reimbursements are not subject to recapture.
For the six months ended June 30, 2011, 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 | $ | 32,502 | $ | 66,812 | ||||
| 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 | $ | 794,269 | $ | 93,538 | ||||
| Expenses Reimbursed by Adviser through institutional class shareholder servicing fee waiver | $ | 113,707 | $ | — | ||||
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Fund | Fund | |||||||
| Annual Advisory Rate | 1.25% | 1.25% | ||||||
| Expenses Reimbursed by Adviser through voluntary waiver | $ | 162,289 | $ | 78,130 | ||||
| Expenses Reimbursed by Adviser through institutional class shareholder servicing fee waiver | $ | 6,478 | $ | 145 | ||||
| The Water | The Multi- | |||||||
| Infrastructure | Disciplinary | |||||||
| Fund | Fund | |||||||
| Annual Advisory Rate | 1.25% | 1.25% | ||||||
| Expenses Reimbursed by Adviser through voluntary waiver | $ | 61,110 | $ | 56,865 | ||||
| Expenses Reimbursed by Adviser through institutional class shareholder servicing fee waiver | $ | 1,283 | $ | 1,141 | ||||
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
45
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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, 2012. For the six months ended June 30, 2011, the Adviser waived amounts depicted in the above table in shareholder servicing fees for the Institutional Class of Paradigm, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary. The Adviser is responsible for paying a portion of these shareholder servicing fees to various agents that have a written shareholder servicing agreement with the Adviser and that perform shareholder servicing functions and maintenance of shareholder accounts on behalf of their clients who own shares of the Feeder Funds.
For the six months ended June 30, 2011, the Feeder Funds were allocated $12,000 for the services of the Chief Compliance Officer employed by the Adviser.
The Company, on behalf of the Feeder Funds, has adopted two Retail Distribution Plans pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plans”). One Plan is for Advisor Class A shares, while the other Plan is for Advisor Class C shares. Under the first Plan, Advisor Class A shares may pay up to an annual rate of 0.50% of the average daily net asset value of Advisor Class A shares to the Distributor or other qualified recipients under the Plan. During the six months ended June 30, 2011, payments under the 12b-1 Plan for the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water, and Multi-Disciplinary were limited to 0.25% of the average daily net asset value of such shares of such Funds. During the six months ended June 30, 2011, the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary Funds incurred expenses of $1,772, $880, $275,038, $5,342, $13,300, $14,422, $10,125 and $570, respectively, pursuant to the 12b-1 Plan. Under the second Plan, Advisor Class C shares pay an annual rate of 0.75% of the average daily net asset value of such shares. During the six months ended June 30, 2011, Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary Funds Advisor Class C Shares incurred expenses of $607, $240, $558,042, $2,762, $12,222, $20,429, $10,643 and $2,121, respectively, pursuant to the 12b-1 Plan.
46
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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. For the six months ended June 30, 2011, the Distributor received $288, $0, $14,094, $984, $849, $149, $2,335 and $3,047 from sales loads from the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary.
4. Reclassification of Capital Accounts
Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended December 31, 2010, each Fund recorded the following reclassifications to the accounts listed below:
| INCREASE/(DECREASE) | ||||||||||||
| Accumulated | ||||||||||||
| Net | Accumulated | |||||||||||
| Investment | Net Realized | |||||||||||
| Paid-In-Capital | Income (Loss) | Gain (Loss) | ||||||||||
| The Internet Fund | $ | (138,451,652 | ) | $ | 1,879,268 | $ | 136,572,384 | |||||
| The Global Fund | (2,025,608 | ) | 10,610 | 2,014,998 | ||||||||
| The Paradigm Fund | (3,181 | ) | 689,542 | (686,361 | ) | |||||||
| The Medical Fund | — | (1,189 | ) | 1,189 | ||||||||
| The Small Cap Opportunities Fund | — | 953,052 | (953,052 | ) | ||||||||
| The Market Opportunities Fund | (78,705 | ) | 579,584 | (500,879 | ) | |||||||
| The Water Infrastructure Fund | (4,029 | ) | (52,338 | ) | 56,367 | |||||||
| The Multi-Disciplinary Fund | (53 | ) | 165 | (112 | ) | |||||||
5. Income Taxes
At December 31, 2010 Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary had $0, $30,374, $8,405,276, $28,164, $1,730,963, $0, $0, and $4,312, respectively, of undistributed net investment income on a tax basis.
At December 31, 2010 none of the Feeder Funds had accumulated gains on a tax basis.
47
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
At December 31, 2010, the Feeder Funds had accumulated net realized capital loss carryforwards expiring in the following years:
Fund | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2011 | |||||||||||||||||||||
| Internet | $ | — | $ | — | $ | — | $ | — | $ | 16,077,777 | $ | 6,777,871 | $ | — | ||||||||||||||
| Global | — | 408,711 | — | — | — | 4,885 | 887,154 | |||||||||||||||||||||
| Paradigm | 115,811,157 | 445,505,345 | 417,659,386 | — | — | — | — | |||||||||||||||||||||
| Medical | 406,228 | 116,113 | — | — | — | — | — | |||||||||||||||||||||
| Small Cap | 8,371,154 | 96,486,615 | 78,193,634 | — | — | — | — | |||||||||||||||||||||
| Market Opportunities | 2,108,533 | 6,623,055 | 25,221,869 | 40,803 | 21 | — | — | |||||||||||||||||||||
| Water Infrastructure | 2,203,647 | 4,868,599 | 2,008,692 | — | — | — | — | |||||||||||||||||||||
| Multi-Disciplinary | — | — | — | — | — | — | — | |||||||||||||||||||||
To the extent that the Feeder Funds realize future net capital gains, those gains will be offset by any unused capital loss carryforwards. For the year ended December 31, 2010, Internet and Global utilized $2,812,299 and $609,896, respectively, of capital loss carryforwards.
At December 31, 2010, the following Feeder Funds deferred, on a tax basis, post-October losses and straddle losses of:
| Post-October | ||||||||
Fund | Post-October Losses | Currency Losses | ||||||
| Internet | $ | — | $ | 5,825 | ||||
| Global | — | 2,005 | ||||||
| Paradigm | — | 40,806 | ||||||
| Medical | — | — | ||||||
| Small Cap | — | 810 | ||||||
| Market Opportunities | 100,268 | — | ||||||
| Water Infrastructure | 262,091 | 11,042 | ||||||
| Multi-Disciplinary | 1,228 | 169 | ||||||
The tax components of dividends paid during the years ended December 31, 2010 and December 31, 2009, are:
| Internet | Global | |||||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | |||||||||||||
| Income | Capital Gains | Income | Capital Gains | |||||||||||||
| Distribution | Distribution | Distribution | Distribution | |||||||||||||
| 2010 | $ | — | $ | — | $ | 49,825 | $ | — | ||||||||
| 2009 | $ | 128,367 | $ | — | $ | 20,989 | $ | — | ||||||||
48
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
| Paradigm | Medical | |||||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | |||||||||||||
| Income | Capital Gains | Income | Capital Gains | |||||||||||||
| Distribution | Distribution | Distribution | Distribution | |||||||||||||
| 2010 | $ | 18,290,721 | $ | — | $ | 155,297 | $ | — | ||||||||
| 2009 | $ | 9,279,988 | $ | — | $ | 232,701 | $ | — | ||||||||
| Small Cap Opportunities | Market Opportunities | |||||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | |||||||||||||
| Income | Capital Gains | Income | Capital Gains | |||||||||||||
| Distribution | Distribution | Distribution | Distribution | |||||||||||||
| 2010 | $ | 2,552,363 | $ | — | $ | 2,872,610 | $ | — | ||||||||
| 2009 | $ | — | $ | — | $ | 33,049 | $ | — | ||||||||
| Water Infrastructure | Multi-Disciplinary | |||||||||||||||
| Ordinary | Long-Term | Ordinary | Long-Term | |||||||||||||
| Income | Capital Gains | Income | Capital Gains | |||||||||||||
| Distribution | Distribution | Distribution | Distribution | |||||||||||||
| 2010 | $ | 165,733 | $ | — | $ | 196,148 | $ | 9,078 | ||||||||
| 2009 | $ | 9,099 | $ | — | $ | 29,079 | $ | — | ||||||||
6. New Accounting Pronouncements
In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” in GAAP and the International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact the update will have on its financial statement disclosures.
7. 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 period that materially impacted the amounts or disclosures in the Funds’ financial statements.
49
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
8. Tax Information
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Funds. In general, the provisions of the Act will be effective for the Funds’ fiscal year ending December 31, 2011. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses get utilized before preenactment capital loss carryovers. Relevant information regarding the impact of the Act on the Funds, if any, will be contained within the “Income Taxes” section of the financial statement notes for the fiscal year ending December 31, 2011.
Global, Paradigm, Medical, Market Opportunities, and Water Infrastructure designate 100%, 100%, 100%, 33%, and 100%, respectively, of dividends declared after December 31, 2010 from net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003. Global, Paradigm, Medical, Small Cap, Market Opportunities, Water Infrastructure, and Multi-Disciplinary hereby designate 100%, 100%, 100%, 100%, 100%, 100%, and 96%, respectively, as ordinary income distributions and 4% for Multi-Disciplinary Fund as long-term capital gain distributions for the purposes of the dividends paid deduction, which include earnings and profits distributed to shareholders on redemptions of Fund shares.
For corporate shareholders in the Funds, the percentage of ordinary dividend income distributed for the year ended December 31, 2010, which is designated as qualifying for the dividends-received deduction, is as follows: Global 1%, Paradigm 43%, Medical 100%, Market Opportunities 17%, and Water Infrastructure 82%.
Paradigm, Water Infrastructure, and Multi-Disciplinary designate 8%, 30%, and 47%, respectively, of their ordinary income distributions for the fiscal year ended December 31, 2010 as interest-related dividends under Internal Revenue Code Section 871(k)(l)(C).
Multi-Disciplinary designates 56% of its ordinary income distribution as a short-term capital gain distribution under Internal Revenue Code Section 871(k)(2)(C).
50
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
9. Information about Proxy Voting
Information regarding how Kinetics Mutual Funds, Inc. votes proxies relating to portfolio securities is available without charge, upon request by calling toll-free at 1-800-930-3828 or by accessing the Funds’ website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.
10. Information about the Portfolio Holdings
The Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Form N-Q. The Funds’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
51
| The Internet Fund | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 37.25 | $ | 30.74 | $ | 20.71 | $ | 35.94 | $ | 28.62 | $ | 24.66 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss)(2) | (0.23 | ) | (0.28 | ) | (0.14 | ) | 0.29 | 0.30 | (0.08 | ) | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | 4.33 | 6.79 | 10.21 | (15.47 | ) | 7.37 | 4.15 | |||||||||||||||||
| Total from investment operations | 4.10 | 6.51 | 10.07 | (15.18 | ) | 7.67 | 4.07 | |||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | ||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | — | (0.04 | ) | (0.05 | ) | (0.35 | ) | (0.11 | ) | ||||||||||||||
| From net realized gains | — | — | — | — | — | — | ||||||||||||||||||
| Total distributions | — | — | (0.04 | ) | (0.05 | ) | (0.35 | ) | (0.11 | ) | ||||||||||||||
| Net Asset Value, End of Period | $ | 41.35 | $ | 37.25 | $ | 30.74 | $ | 20.71 | $ | 35.94 | $ | 28.62 | ||||||||||||
Total return(4) | 11.01 | %(5) | 21.18 | % | 48.61 | % | (42.24 | )% | 26.81 | % | 16.50 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 122,045 | $ | 113,085 | $ | 104,666 | $ | 75,112 | $ | 166,787 | $ | 137,012 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 1.94 | %(6) | 1.95 | % | 1.98 | % | 2.03 | % | 1.99 | % | 1.98 | % | ||||||||||||
After expense reimbursement(7) | 1.89 | %(6) | 1.89 | % | 1.89 | % | 1.90 | % | 1.98 | % | 1.85 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | (1.20 | )%(6) | (0.91 | )% | (0.64 | )% | 0.90 | % | 0.94 | % | (0.42 | )% | ||||||||||||
After expense reimbursement(7) | (1.15 | )%(6) | (0.85 | )% | (0.55 | )% | 1.03 | % | 0.95 | % | (0.29 | )% | ||||||||||||
Portfolio turnover rate(8) | 21 | % | 12 | % | 14 | % | 19 | % | 15 | % | 11 | % | ||||||||||||
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Internet Portfolio. |
The accompanying notes are an integral part of these financial statements.
52
| The Internet Fund | ||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 36.69 | $ | 30.35 | $ | 20.50 | $ | 35.66 | $ | 28.24 | $ | 24.40 | |||||||||||||
| (0.27 | ) | (0.36 | ) | (0.21 | ) | 0.22 | 0.23 | (0.14 | ) | |||||||||||||||
| 4.27 | 6.70 | 10.09 | (15.33 | ) | 7.49 | 4.09 | ||||||||||||||||||
| 4.00 | 6.34 | 9.88 | (15.11 | ) | 7.72 | 3.95 | ||||||||||||||||||
| 0.00 | (3) | 0.00 | (3) | 0.01 | 0.00 | (3) | — | — | ||||||||||||||||
| — | — | (0.04 | ) | (0.05 | ) | 0.30 | (0.11 | ) | ||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||||
| — | — | (0.04 | ) | (0.05 | ) | 0.30 | (0.11 | ) | ||||||||||||||||
| $ | 40.69 | $ | 36.69 | $ | 30.35 | $ | 20.50 | $ | 35.66 | $ | 28.24 | |||||||||||||
| 10.87 | %(5) | 20.89 | % | 48.23 | % | (42.37 | )% | 27.35 | % | 16.18 | % | |||||||||||||
| $ | 1,328 | $ | 1,892 | $ | 738 | $ | 318 | $ | 637 | $ | 235 | |||||||||||||
| 2.19 | %(6) | 2.20 | % | 2.23 | % | 2.28 | % | 2.24 | % | 2.23 | % | |||||||||||||
| 2.14 | %(6) | 2.14 | % | 2.14 | % | 2.15 | % | 2.23 | % | 2.10 | % | |||||||||||||
| (1.45 | )%(6) | (1.16 | )% | (0.89 | )% | 0.65 | % | 0.70 | % | (0.67 | )% | |||||||||||||
| (1.40 | )%(6) | (1.10 | )% | (0.80 | )% | 0.78 | % | 0.71 | % | (0.54 | )% | |||||||||||||
| 21 | % | 12 | % | 14 | % | 19 | % | 15 | % | 11 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
53
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Internet Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | ||||||||||||||||||||
| Ended | For the | For the | For the | February 16, | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | 2007ˆ through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| Beginning of Period | $ | 35.79 | $ | 29.76 | $ | 20.20 | $ | 35.31 | $ | 28.66 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.36 | ) | (0.51 | ) | (0.31 | ) | 0.08 | 0.07 | ||||||||||||
| Net realized and unrealized gain (loss) on investments | 4.16 | 6.54 | 9.91 | (15.15 | ) | 6.87 | ||||||||||||||
| Total from investment operations | 3.80 | 6.03 | 9.60 | (15.07 | ) | 6.94 | ||||||||||||||
| Redemption Fees | — | — | — | — | 0.00 | (3) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | — | (0.04 | ) | (0.04 | ) | (0.29 | ) | ||||||||||||
| From net realized gains | — | — | — | — | — | |||||||||||||||
| Total distributions | — | — | (0.04 | ) | (0.04 | ) | (0.29 | ) | ||||||||||||
| Net Asset Value, End of Period | $ | 39.59 | $ | 35.79 | $ | 29.76 | $ | 20.20 | $ | 35.31 | ||||||||||
Total return(4) | 10.59 | %(5) | 20.26 | % | 47.51 | % | (42.67 | )% | 24.22 | %(5) | ||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 106 | $ | 196 | $ | 120 | $ | 113 | $ | 294 | ||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.69 | %(6) | 2.70 | % | 2.73 | % | 2.78 | % | 2.73 | %(6) | ||||||||||
After expense reimbursement(7) | 2.64 | %(6) | 2.64 | % | 2.64 | % | 2.65 | % | 2.72 | %(6) | ||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.95 | )%(6) | (1.66 | )% | (1.39 | )% | 0.15 | % | 0.22 | %(6) | ||||||||||
After expense reimbursement(7) | (1.90 | )%(6) | (1.60 | )% | (1.30 | )% | 0.28 | % | 0.23 | %(6) | ||||||||||
Portfolio turnover rate(8) | 21 | % | 12 | % | 14 | % | 19 | % | 15 | % | ||||||||||
ˆ Commencement of operations.
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Internet Portfolio. |
The accompanying notes are an integral part of these financial statements.
54
(This page intentionally left blank)
55
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Global Fund | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 4.67 | $ | 3.92 | $ | 2.36 | $ | 4.90 | $ | 5.00 | $ | 4.43 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
| Net investment income (loss) | 0.04 | (2) | 0.02 | (2) | 0.02 | (2) | 0.07 | (2) | 0.22 | 0.13 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.78 | 1.55 | (2.56 | ) | (0.01 | ) | 0.62 | |||||||||||||||
| Total from investment operations | (0.09 | ) | 0.80 | 1.57 | (2.49 | ) | 0.21 | 0.75 | ||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.01 | 0.00(3 | ) | 0.00(3 | ) | 0.00(3 | ) | |||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | (0.05 | ) | (0.02 | ) | (0.05 | ) | (0.31 | ) | (0.18 | ) | |||||||||||||
| From net realized gains | — | — | — | — | — | — | ||||||||||||||||||
| Total distributions | — | (0.05 | ) | (0.02 | ) | (0.05 | ) | (0.31 | ) | (0.18 | ) | |||||||||||||
| Net Asset Value, End of Period | $ | 4.58 | $ | 4.67 | $ | 3.92 | $ | 2.36 | $ | 4.90 | $ | 5.00 | ||||||||||||
Total return(4) | (1.93 | )%(5) | 20.30 | % | 66.86 | % | (50.72 | )% | 4.27 | % | 16.90 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 4,406 | $ | 4,541 | $ | 4,370 | $ | 1,863 | $ | 3,138 | $ | 3,991 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 3.88 | %(6) | 4.17 | % | 5.32 | % | 5.98 | % | 3.84 | % | 3.09 | % | ||||||||||||
After expense reimbursement(7) | 1.39 | %(6) | 1.39 | % | 1.39 | % | 1.41 | % | 1.48 | % | 1.39 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | (0.91 | )%(6) | (2.26 | )% | (3.27 | )% | (2.72 | )% | 1.87 | % | 1.30 | % | ||||||||||||
After expense reimbursement(7) | 1.58 | %(6) | 0.52 | % | 0.66 | % | 1.85 | % | 4.23 | % | 3.00 | % | ||||||||||||
Portfolio turnover rate(8) | 57 | % | 122 | % | 53 | % | 98 | % | 22 | % | 10 | % | ||||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Global Portfolio. |
The accompanying notes are an integral part of these financial statements.
56
| The Global Fund | ||||||||||||||||||||||||||||||||
| Advisor Class A | Advisor Class C | |||||||||||||||||||||||||||||||
| For the | For the | |||||||||||||||||||||||||||||||
| Six Months | Six Months | |||||||||||||||||||||||||||||||
| Ended | For the | For the | May 19, 2008ˆ | Ended | For the | For the | May 19, 2008ˆ | |||||||||||||||||||||||||
| June 30, | Year Ended | Year Ended | through | June 30, | Year Ended | Year Ended | through | |||||||||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | 2011 | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | (Unaudited) | 2010 | 2009 | 2008 | |||||||||||||||||||||||||
| $ | 4.68 | $ | 3.93 | $ | 2.36 | $ | 4.56 | $ | 4.64 | $ | 3.90 | $ | 2.37 | $ | 4.56 | |||||||||||||||||
| 0.03 | (2) | 0.01 | (2) | 0.01 | (2) | 0.03 | (2) | 0.02 | (2) | (0.01 | )(2) | 0.00 | (2)(3) | 0.02 | (2) | |||||||||||||||||
| (0.13 | ) | 0.78 | 1.57 | (2.18 | ) | (0.13 | ) | 0.77 | 1.53 | (2.17 | ) | |||||||||||||||||||||
| (0.10 | ) | 0.79 | 1.58 | (2.15 | ) | (0.11 | ) | 0.76 | 1.53 | (2.15 | ) | |||||||||||||||||||||
| — | 0.00 | (3) | — | — | — | — | — | — | ||||||||||||||||||||||||
| — | (0.04 | ) | (0.01 | ) | (0.05 | ) | — | (0.02 | ) | (0.00 | )(3) | (0.04 | ) | |||||||||||||||||||
| — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| — | (0.04 | ) | (0.01 | ) | (0.05 | ) | — | (0.02 | ) | (0.00 | )(3) | (0.04 | ) | |||||||||||||||||||
| $ | 4.58 | $ | 4.68 | $ | 3.93 | $ | 2.36 | $ | 4.53 | $ | 4.64 | $ | 3.90 | $ | 2.37 | |||||||||||||||||
| (2.14 | )%(5) | 20.04 | % | 67.11 | % | (47.12 | )%(5) | (2.37 | )%(5) | 19.24 | % | 65.08 | % | (47.14 | )%(5) | |||||||||||||||||
| $ | 693 | $ | 707 | $ | 368 | $ | 106 | $ | 82 | $ | 64 | $ | 36 | $ | 5 | |||||||||||||||||
| 4.13 | %(6) | 4.42 | % | 5.57 | % | 8.28 | %(6) | 4.63 | %(6) | 4.92 | % | 6.07 | % | 8.78 | %(6) | |||||||||||||||||
| 1.64 | %(6) | 1.64 | % | 1.64 | % | 1.65 | %(6) | 2.14 | %(6) | 2.14 | % | 2.14 | % | 2.15 | %(6) | |||||||||||||||||
| (1.16 | )%(6) | (2.51 | )% | (3.52 | )% | (5.16 | )%(6) | (1.66 | )%(6) | (3.01 | )% | (4.02 | )% | (5.66 | )%(6) | |||||||||||||||||
| 1.33 | %(6) | 0.27 | % | 0.41 | % | 1.47 | %(6) | 0.83 | %(6) | (0.23 | )% | (0.09 | )% | 0.97 | %(6) | |||||||||||||||||
| 57 | % | 122 | % | 53 | % | 98 | % | 57 | % | 122 | % | 53 | % | 98 | % | |||||||||||||||||
The accompanying notes are an integral part of these financial statements.
57
| The Paradigm Fund | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 23.31 | $ | 20.18 | $ | 14.42 | $ | 30.99 | $ | 25.79 | $ | 20.33 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss)(2) | (0.02 | ) | 0.11 | 0.15 | 0.12 | 0.11 | 0.14 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.36 | 3.39 | 5.78 | (16.62 | )(9) | 5.35 | 5.52 | |||||||||||||||||
| Total from investment operations | 0.34 | 3.50 | 5.93 | (16.50 | ) | 5.46 | 5.66 | |||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.01 | 0.00 | (3) | 0.00 | (3) | |||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | (0.37 | ) | (0.17 | ) | — | (0.13 | ) | (0.16 | ) | ||||||||||||||
| From net realized gains | — | — | — | (0.08 | ) | (0.13 | ) | (0.04 | ) | |||||||||||||||
| Total distributions | — | (0.37 | ) | (0.17 | ) | (0.08 | ) | (0.26 | ) | (0.20 | ) | |||||||||||||
| Net Asset Value, End of Period | $ | 23.65 | $ | 23.31 | $ | 20.18 | $ | 14.42 | $ | 30.99 | $ | 25.79 | ||||||||||||
Total return(4) | 1.46 | %(5) | 17.37 | % | 41.02 | % | (53.17 | )%(9) | 21.15 | % | 27.81 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 643,145 | $ | 687,056 | $ | 825,278 | $ | 740,983 | $ | 2,910,518 | $ | 1,337,761 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 1.77 | %(6) | 1.76 | % | 1.73 | % | 1.72 | % | 1.68 | % | 1.79 | % | ||||||||||||
After expense reimbursement(7) | 1.64 | %(6) | 1.64 | % | 1.64 | % | 1.66 | % | 1.68 | % | 1.63 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | (0.32 | )%(6) | 0.43 | % | 0.78 | % | 0.46 | % | 0.39 | % | 0.44 | % | ||||||||||||
After expense reimbursement(7) | (0.19 | )%(6) | 0.55 | % | 0.87 | % | 0.52 | % | 0.39 | % | 0.60 | % | ||||||||||||
Portfolio turnover rate(8) | 41 | % | 7 | % | 15 | % | 34 | % | 8 | % | 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) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Paradigm Portfolio. |
| (9) | Includes adviser reimbursement from net realized losses on the disposal of investments in violation of restrictions and trading errors. This reimbursement comprises less than $0.005 of the NAVs for each class at the time of the reimbursement and 0.03% of the total return for the Institutional Class for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
The accompanying notes are an integral part of these financial statements.
58
| The Paradigm Fund | ||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 22.95 | $ | 19.88 | $ | 14.16 | $ | 30.52 | $ | 25.43 | $ | 20.08 | |||||||||||||
| (0.05 | ) | 0.06 | 0.10 | 0.06 | 0.04 | 0.08 | ||||||||||||||||||
| 0.35 | 3.33 | 5.68 | (16.34 | )(9) | 5.27 | 5.43 | ||||||||||||||||||
| 0.30 | 3.39 | 5.78 | (16.28 | ) | 5.31 | 5.51 | ||||||||||||||||||
| 0.00 | (3) | 0.00 | (3) | — | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | ||||||||||||||
| — | (0.32 | ) | (0.06 | ) | — | (0.09 | ) | (0.12 | ) | |||||||||||||||
| — | — | — | (0.08 | ) | (0.13 | ) | (0.04 | ) | ||||||||||||||||
| — | (0.32 | ) | (0.06 | ) | (0.08 | ) | (0.22 | ) | (0.16 | ) | ||||||||||||||
| $ | 23.25 | $ | 22.95 | $ | 19.88 | $ | 14.16 | $ | 30.52 | $ | 25.43 | |||||||||||||
| 1.35 | %(5) | 17.11 | % | 40.64 | % | (53.30 | )%(9) | 20.87 | % | 27.42 | % | |||||||||||||
| $ | 206,341 | $ | 226,264 | $ | 252,106 | $ | 249,424 | $ | 544,046 | $ | 183,031 | |||||||||||||
| 2.02 | %(6) | 2.01 | % | 1.98 | % | 1.97 | % | 1.93 | % | 2.04 | % | |||||||||||||
| 1.89 | %(6) | 1.89 | % | 1.89 | % | 1.91 | % | 1.93 | % | 1.88 | % | |||||||||||||
| (0.57 | )%(6) | 0.18 | % | 0.53 | % | 0.21 | % | 0.14 | % | 0.19 | % | |||||||||||||
| (0.44 | )%(6) | 0.30 | % | 0.62 | % | 0.27 | % | 0.14 | % | 0.35 | % | |||||||||||||
| 41 | % | 7 | % | 15 | % | 34 | % | 8 | % | 3 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
59
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Paradigm Fund | ||||||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 22.25 | $ | 19.33 | $ | 13.80 | $ | 29.90 | $ | 24.98 | $ | 19.76 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss)(2) | (0.11 | ) | (0.04 | ) | 0.02 | (0.05 | ) | (0.10 | ) | (0.03 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.36 | 3.22 | 5.51 | (15.97 | )(9) | 5.15 | 5.33 | |||||||||||||||||
| Total from investment operations | 0.25 | 3.18 | 5.53 | (16.02 | ) | 5.05 | 5.30 | |||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | ||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | (0.26 | ) | — | — | (0.00 | )(3) | (0.04 | ) | |||||||||||||||
| From net realized gains | — | — | — | (0.08 | ) | (0.13 | ) | (0.04 | ) | |||||||||||||||
| Total distributions | — | (0.26 | ) | — | (0.08 | ) | (0.13 | ) | (0.08 | ) | ||||||||||||||
| Net Asset Value, End of Period | $ | 22.50 | $ | 22.25 | $ | 19.33 | $ | 13.80 | $ | 29.90 | $ | 24.98 | ||||||||||||
Total return(4) | 1.12 | %(5) | 16.45 | % | 39.97 | % | (53.54 | )%(9) | 20.20 | % | 26.82 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 141,622 | $ | 152,571 | $ | 169,578 | $ | 147,915 | $ | 320,962 | $ | 116,226 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 2.52 | %(6) | 2.51 | % | 2.48 | % | 2.47 | % | 2.43 | % | 2.54 | % | ||||||||||||
After expense reimbursement(7) | 2.39 | %(6) | 2.39 | % | 2.39 | % | 2.41 | % | 2.43 | % | 2.38 | % | ||||||||||||
| Ratio of net investment income to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | (1.07 | )%(6) | (0.32 | )% | 0.03 | % | (0.29 | )% | (0.36 | )% | (0.31 | )% | ||||||||||||
After expense reimbursement(7) | (0.94 | )%(6) | (0.20 | )% | 0.12 | % | (0.23 | )% | (0.36 | )% | (0.15 | )% | ||||||||||||
Portfolio turnover rate(8) | 41 | % | 7 | % | 15 | % | 34 | % | 8 | % | 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) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Paradigm Portfolio. |
| (9) | Includes adviser reimbursement from net realized losses on the disposal of investments in violation of restrictions and trading errors. This reimbursement comprises less than $0.005 of the NAVs for each class at the time of the reimbursement and 0.03% of the total return for the Institutional Class for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
The accompanying notes are an integral part of these financial statements.
60
| The Paradigm Fund | ||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 23.25 | $ | 20.13 | $ | 14.44 | $ | 30.97 | $ | 25.76 | $ | 20.31 | |||||||||||||
| 0.00 | (3) | 0.16 | 0.18 | 0.18 | 0.17 | 0.19 | ||||||||||||||||||
| 0.35 | 3.38 | 5.78 | (16.63 | )(9) | 5.34 | 5.49 | ||||||||||||||||||
| 0.35 | 3.54 | 5.96 | (16.45 | ) | 5.51 | 5.68 | ||||||||||||||||||
| 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | — | ||||||||||||||
| — | (0.42 | ) | (0.27 | ) | — | (0.17 | ) | (0.19 | ) | |||||||||||||||
| — | — | — | (0.08 | ) | (0.13 | ) | (0.04 | ) | ||||||||||||||||
| — | (0.42 | ) | (0.27 | ) | (0.08 | ) | (0.30 | ) | (0.23 | ) | ||||||||||||||
| $ | 23.60 | $ | 23.25 | $ | 20.13 | $ | 14.44 | $ | 30.97 | $ | 25.76 | |||||||||||||
| 1.55 | %(5) | 17.62 | % | 41.31 | % | (53.11 | )%(9) | 21.37 | % | 27.96 | % | |||||||||||||
| $ | 160,297 | $ | 142,261 | $ | 125,372 | $ | 128,129 | $ | 804,755 | $ | 507,314 | |||||||||||||
| 1.72 | %(6) | 1.71 | % | 1.68 | % | 1.67 | % | 1.63 | % | 1.74 | % | |||||||||||||
| 1.44 | %(6) | 1.44 | % | 1.44 | % | 1.46 | % | 1.48 | % | 1.43 | % | |||||||||||||
| (0.27 | )%(6) | 0.48 | % | 0.83 | % | 0.51 | % | 0.44 | % | 0.48 | % | |||||||||||||
| 0.01 | %(6) | 0.75 | % | 1.07 | % | 0.72 | % | 0.59 | % | 0.79 | % | |||||||||||||
| 41 | % | 7 | % | 15 | % | 34 | % | 8 | % | 3 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
61
| The Medical Fund | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 19.48 | $ | 18.77 | $ | 15.23 | $ | 19.82 | $ | 17.83 | $ | 16.64 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income(2) | 0.14 | 0.10 | 0.20 | 0.19 | 0.10 | 0.06 | ||||||||||||||||||
| Net realized and unrealized gain (loss) on investments | 2.94 | 0.72 | 3.51 | (4.25 | ) | 2.67 | 2.40 | |||||||||||||||||
| Total from investment operations | 3.08 | 0.82 | 3.71 | (4.06 | ) | 2.77 | 2.46 | |||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.01 | 0.01 | 0.01 | 0.00 | (3) | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | (0.11 | ) | (0.16 | ) | (0.16 | ) | (0.10 | ) | (0.04 | ) | |||||||||||||
| From net realized gains | — | — | (0.02 | ) | (0.38 | ) | (0.69 | ) | (1.23 | ) | ||||||||||||||
| Total distributions | — | (0.11 | ) | (0.18 | ) | (0.54 | ) | (0.79 | ) | (1.27 | ) | |||||||||||||
| Net Asset Value, End of Period | $ | 22.56 | $ | 19.48 | $ | 18.77 | $ | 15.23 | $ | 19.82 | $ | 17.83 | ||||||||||||
Total return(4) | 15.81 | %(5) | 4.30 | % | 24.47 | % | (20.42 | )% | 15.47 | % | 14.81 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 29,310 | $ | 25,777 | $ | 21,126 | $ | 15,727 | $ | 13,917 | $ | 15,527 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 1.98 | %(6) | 2.00 | % | 2.15 | % | 2.26 | % | 2.41 | % | 2.28 | % | ||||||||||||
After expense reimbursement(7) | 1.39 | %(6) | 1.39 | % | 1.39 | % | 1.41 | % | 1.40 | % | 1.44 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 0.75 | %(6) | (0.06 | )% | 0.42 | % | 0.18 | % | (0.51 | )% | (0.51 | )% | ||||||||||||
After expense reimbursement(7) | 1.34 | %(6) | 0.55 | % | 1.17 | % | 1.03 | % | 0.50 | % | 0.33 | % | ||||||||||||
Portfolio turnover rate(8) | 4 | % | 3 | % | 13 | % | 28 | % | 38 | % | 20 | % | ||||||||||||
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
62
| The Medical Fund | ||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 19.06 | $ | 18.36 | $ | 14.90 | $ | 19.39 | $ | 17.47 | $ | 16.34 | |||||||||||||
| 0.11 | 0.05 | 0.15 | 0.13 | 0.05 | 0.01 | |||||||||||||||||||
| 2.87 | 0.71 | 3.44 | (4.15 | ) | 2.62 | 2.35 | ||||||||||||||||||
| 2.98 | 0.76 | 3.59 | (4.02 | ) | 2.67 | 2.36 | ||||||||||||||||||
| — | 0.00 | (3) | 0.01 | 0.04 | 0.00 | (3) | — | |||||||||||||||||
| — | (0.06 | ) | (0.12 | ) | (0.13 | ) | (0.06 | ) | — | |||||||||||||||
| — | — | (0.02 | ) | (0.38 | ) | (0.69 | ) | (1.23 | ) | |||||||||||||||
| — | (0.06 | ) | (0.14 | ) | (0.51 | ) | (0.75 | ) | (1.23 | ) | ||||||||||||||
| $ | 22.04 | $ | 19.06 | $ | 18.36 | $ | 14.90 | $ | 19.39 | $ | 17.47 | |||||||||||||
| 15.58 | %(5) | 4.13 | % | 24.17 | % | (20.49 | )% | 15.16 | % | 14.49 | % | |||||||||||||
| $ | 4,452 | $ | 4,207 | $ | 4,347 | $ | 2,941 | $ | 1,427 | $ | 711 | |||||||||||||
| 2.23 | %(6) | 2.25 | % | 2.40 | % | 2.51 | % | 2.66 | % | 2.53 | % | |||||||||||||
| 1.64 | %(6) | 1.64 | % | 1.64 | % | 1.66 | % | 1.65 | % | 1.69 | % | |||||||||||||
| 0.50 | %(6) | (0.31 | )% | 0.17 | % | (0.07 | )% | (0.76 | )% | (0.76 | )% | |||||||||||||
| 1.09 | %(6) | 0.30 | % | 0.92 | % | 0.78 | % | 0.25 | % | 0.08 | % | |||||||||||||
| 4 | % | 3 | % | 13 | % | 28 | % | 38 | % | 20 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
63
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Medical Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | February 16, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| Beginning of Period | $ | 18.90 | $ | 18.27 | $ | 14.83 | $ | 19.34 | $ | 18.29 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | 0.06 | (0.04 | ) | 0.07 | 0.05 | (0.04 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments | 2.84 | 0.69 | 3.41 | (4.13 | ) | 1.79 | ||||||||||||||
| Total from investment operations | 2.90 | 0.65 | 3.48 | (4.08 | ) | 1.75 | ||||||||||||||
| Redemption Fees | — | — | 0.00 | (3) | 0.02 | 0.00 | (3) | |||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.02 | ) | (0.02 | ) | (0.07 | ) | (0.01 | ) | |||||||||||
| From net realized gains | — | — | (0.02 | ) | (0.38 | ) | (0.69 | ) | ||||||||||||
| Total distributions | — | (0.02 | ) | (0.04 | ) | (0.45 | ) | (0.70 | ) | |||||||||||
| Net Asset Value, End of Period | $ | 21.80 | $ | 18.90 | $ | 18.27 | $ | 14.83 | $ | 19.34 | ||||||||||
Total return(4) | 15.34 | %(5) | 3.55 | % | 23.50 | % | (20.97 | )% | 9.55 | %(5) | ||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 814 | $ | 692 | $ | 454 | $ | 314 | $ | 148 | ||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.73 | %(6) | 2.75 | % | 2.90 | % | 3.01 | % | 3.19 | %(6) | ||||||||||
After expense reimbursement(7) | 2.14 | %(6) | 2.14 | % | 2.14 | % | 2.16 | % | 2.15 | %(6) | ||||||||||
| Ratio of net investment income to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 0.00 | %(6) | (0.81 | )% | (0.33 | )% | (0.57 | )% | (1.30 | )%(6) | ||||||||||
After expense reimbursement(7) | 0.59 | %(6) | (0.20 | )% | 0.42 | % | 0.28 | % | (0.26 | )%(6) | ||||||||||
Portfolio turnover rate(8) | 4 | % | 3 | % | 13 | % | 28 | % | 38 | % | ||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Medical Portfolio. |
The accompanying notes are an integral part of these financial statements.
64
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65
| The Small Cap Opportunities Fund | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 23.32 | $ | 20.83 | $ | 13.17 | $ | 31.92 | $ | 26.92 | $ | 21.02 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
Net investment income (loss)(2) | (0.02 | ) | (0.04 | ) | (0.04 | ) | 0.05 | 0.01 | 0.03 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | (0.13 | ) | 2.93 | 7.70 | (18.53 | )(9) | 5.29 | 5.92 | ||||||||||||||||
| Total from investment operations | (0.15 | ) | 2.89 | 7.66 | (18.48 | ) | 5.30 | 5.95 | ||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | ||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | (0.40 | ) | — | — | (0.23 | ) | (0.05 | ) | |||||||||||||||
| From net realized gains | — | — | — | (0.27 | ) | (0.07 | ) | — | ||||||||||||||||
| Total distributions | — | (0.40 | ) | — | (0.27 | ) | (0.30 | ) | (0.05 | ) | ||||||||||||||
| Net Asset Value, End of Period | $ | 23.17 | $ | 23.32 | $ | 20.83 | $ | 13.17 | $ | 31.92 | $ | 26.92 | ||||||||||||
Total return(4) | (0.64 | )%(5) | 13.86 | % | 58.16 | % | (57.88 | )%(9) | 19.65 | % | 28.37 | % | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 93,060 | $ | 130,279 | $ | 161,205 | $ | 126,971 | $ | 729,278 | $ | 268,875 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 1.89 | %(6) | 1.86 | % | 1.86 | % | 1.79 | % | 1.71 | % | 1.83 | % | ||||||||||||
After expense reimbursement(7) | 1.64 | %(6) | 1.64 | % | 1.64 | % | 1.67 | % | 1.69 | % | 1.58 | % | ||||||||||||
| Ratio of net investment income to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | (0.39 | )%(6) | (0.42 | )% | (0.48 | )% | 0.09 | % | 0.00 | % | (0.14 | )% | ||||||||||||
After expense reimbursement(7) | (0.14 | )%(6) | (0.20 | )% | (0.26 | )% | 0.21 | % | 0.02 | % | 0.11 | % | ||||||||||||
Portfolio turnover rate(8) | 12 | % | 4 | % | 4 | % | 16 | % | 17 | % | 6 | % | ||||||||||||
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
| (9) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement comprises less than $0.005 of the NAVs for each class at the time of the reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
The accompanying notes are an integral part of these financial statements.
66
| The Small Cap Opportunities Fund | ||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 22.98 | $ | 20.53 | $ | 13.01 | $ | 31.63 | $ | 26.71 | $ | 20.89 | |||||||||||||
| (0.04 | ) | (0.09 | ) | (0.08 | ) | (0.01 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||
| (0.13 | ) | 2.87 | 7.60 | (18.34 | )(9) | 5.25 | 5.88 | |||||||||||||||||
| (0.17 | ) | 2.78 | 7.52 | (18.35 | ) | 5.18 | 5.85 | |||||||||||||||||
| — | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | ||||||||||||||
| — | (0.33 | ) | — | — | (0.19 | ) | (0.03 | ) | ||||||||||||||||
| — | — | — | (0.27 | ) | (0.07 | ) | — | |||||||||||||||||
| — | (0.33 | ) | — | (0.27 | ) | (0.26 | ) | (0.03 | ) | |||||||||||||||
| $ | 22.81 | $ | 22.98 | $ | 20.53 | $ | 13.01 | $ | 31.63 | $ | 26.71 | |||||||||||||
| (0.74 | )%(5) | 13.56 | % | 57.80 | % | (58.00 | )%(9) | 19.36 | % | 28.03 | % | |||||||||||||
| $ | 9,710 | $ | 11,509 | $ | 14,244 | $ | 12,090 | $ | 36,390 | $ | 12,144 | |||||||||||||
| 2.14 | %(6) | 2.11 | % | 2.11 | % | 2.04 | % | 1.96 | % | 2.08 | % | |||||||||||||
| 1.89 | %(6) | 1.89 | % | 1.89 | % | 1.92 | % | 1.94 | % | 1.83 | % | |||||||||||||
| (0.64 | )%(6) | (0.67 | )% | (0.73 | )% | (0.16 | )% | (0.25 | )% | (0.39 | )% | |||||||||||||
| (0.39 | )%(6) | (0.45 | )% | (0.51 | )% | (0.04 | )% | (0.23 | )% | (0.14 | )% | |||||||||||||
| 12 | % | 4 | % | 4 | % | 16 | % | 17 | % | 6 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
67
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Small Cap Opportunities Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | February 16, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| Beginning of Period | $ | 22.68 | $ | 20.28 | $ | 12.92 | $ | 31.57 | $ | 28.70 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.10 | ) | (0.20 | ) | (0.16 | ) | (0.12 | ) | (0.21 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | (0.13 | ) | 2.84 | 7.52 | (18.26 | )(9) | 3.33 | |||||||||||||
| Total from investment operations | (0.23 | ) | 2.64 | 7.36 | 18.38 | 3.12 | ||||||||||||||
| Redemption Fees | — | — | 0.00 | (3) | 0.00 | (3) | 0.02 | |||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.24 | ) | — | — | (0.20 | ) | |||||||||||||
| From net realized gains | — | — | — | (0.27 | ) | (0.07 | ) | |||||||||||||
| Total distributions | — | (0.24 | ) | — | (0.27 | ) | (0.27 | ) | ||||||||||||
| Net Asset Value, End of Period | $ | 22.45 | $ | 22.68 | $ | 20.28 | $ | 12.92 | $ | 31.57 | ||||||||||
Total return(4) | (1.01 | )%(5) | 13.00 | % | 56.97 | % | (58.20 | )%(9) | 10.94 | %(5) | ||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 3,054 | $ | 3,450 | $ | 4,445 | $ | 2,871 | $ | 4,942 | ||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.64 | %(6) | 2.61 | % | 2.61 | % | 2.54 | % | 2.47 | %(6) | ||||||||||
After expense reimbursement(7) | 2.39 | %(6) | 2.39 | % | 2.39 | % | 2.42 | % | 2.45 | %(6) | ||||||||||
| Ratio of net investment income to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (1.14 | )%(6) | (1.17 | )% | (1.23 | )% | (0.66 | )% | (0.76 | )%(6) | ||||||||||
After expense reimbursement(7) | (0.89 | )%(6) | (0.95 | )% | (1.01 | )% | (0.54 | )% | (0.75 | )%(6) | ||||||||||
Portfolio turnover rate(8) | 12 | % | 4 | % | 4 | % | 16 | % | 17 | % | ||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net Investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Small Cap Opportunities Portfolio. |
| (9) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement comprises less than $0.005 of the NAVs for each class at the time of the reimbursement and 0.03% of the total return for the Adviser Class C for the fiscal year ended December 31, 2008. There was no impact on the other classes. |
The accompanying notes are an integral part of these financial statements.
68
| The Small Cap Opportunities Fund | ||||||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||||||
| For the Six | ||||||||||||||||||||||||
| Months | ||||||||||||||||||||||||
| Ended | For the | For the | For the | For the | For the | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 23.45 | $ | 20.90 | $ | 13.19 | $ | 31.92 | $ | 26.91 | $ | 21.00 | |||||||||||||
| 0.01 | 0.00 | (3) | (0.01 | ) | 0.10 | 0.07 | 0.08 | |||||||||||||||||
| (0.14 | ) | 2.95 | 7.72 | (18.56 | )(9) | 5.29 | 5.91 | |||||||||||||||||
| (0.13 | ) | 2.95 | 7.71 | (18.46 | ) | 5.36 | 5.99 | |||||||||||||||||
| — | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | ||||||||||||||
| — | (0.40 | ) | — | — | (0.28 | ) | (0.08 | ) | ||||||||||||||||
| — | — | — | (0.27 | ) | (0.07 | ) | — | |||||||||||||||||
| — | (0.40 | ) | — | (0.27 | ) | (0.35 | ) | (0.08 | ) | |||||||||||||||
| $ | 23.32 | $ | 23.45 | $ | 20.90 | $ | 13.19 | $ | 31.92 | $ | 26.91 | |||||||||||||
| (0.55 | )%(5) | 14.10 | % | 58.45 | % | (57.82 | )%(9) | 19.91 | % | 28.52 | % | |||||||||||||
| $ | 7,149 | $ | 9,808 | $ | 19,749 | $ | 68,408 | $ | 316,709 | $ | 209,592 | |||||||||||||
| 1.84 | %(6) | 1.81 | % | 1.81 | % | 1.74 | % | 1.66 | % | 1.78 | % | |||||||||||||
| 1.44 | %(6) | 1.44 | % | 1.44 | % | 1.47 | % | 1.49 | % | 1.38 | % | |||||||||||||
| (0.34 | )%(6) | (0.37 | )% | (0.43 | )% | 0.14 | % | 0.05 | % | (0.09 | )% | |||||||||||||
| 0.06 | %(6) | 0.00 | % | (0.06 | )% | 0.41 | % | 0.22 | % | 0.31 | % | |||||||||||||
| 12 | % | 4 | % | 4 | % | 16 | % | 17 | % | 6 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
69
| The Market Opportunities Fund | ||||||||||||||||||||||||
| No Load Class | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | January 31, | |||||||||||||||||||||||
| Ended | For the | For the | For the | For the | 2006ˆ | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | through | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||||||
| Beginning of Period | $ | 11.46 | $ | 10.84 | $ | 7.22 | $ | 16.12 | $ | 12.05 | $ | 10.00 | ||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||
| Net investment income (loss) | 0.01 | (2) | 0.04 | (2) | 0.00 | (2)(3) | 0.11 | (2) | 0.04 | (2) | 0.04 | |||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.33 | 1.18 | 3.62 | (9.02 | ) | 4.05 | 2.05 | |||||||||||||||||
Payment by adviser(9) | — | — | — | 0.06 | — | — | ||||||||||||||||||
| Total from investment operations | 0.34 | 1.22 | 3.62 | (8.85 | ) | 4.09 | 2.09 | |||||||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.01 | 0.01 | 0.01 | 0.00 | (3) | |||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||
| From net investment income | — | (0.60 | ) | (0.01 | ) | (0.06 | ) | (0.03 | ) | (0.04 | ) | |||||||||||||
| From net realized gains | — | — | — | — | — | — | ||||||||||||||||||
| Total distributions | — | (0.60 | ) | (0.01 | ) | (0.06 | ) | (0.03 | ) | (0.04 | ) | |||||||||||||
| Net Asset Value, End of Period | $ | 11.80 | $ | 11.46 | $ | 10.84 | $ | 7.22 | $ | 16.12 | $ | 12.05 | ||||||||||||
Total return(4) | 2.97 | %(5) | 11.31 | % | 50.21 | % | (54.82 | )%(9) | 34.03 | % | 20.85 | %(5) | ||||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 34,809 | $ | 38,562 | $ | 41,254 | $ | 34,246 | $ | 63,004 | $ | 7,994 | ||||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | 1.93 | %(6) | 1.92 | % | 1.93 | % | 1.82 | % | 1.91 | % | 2.68 | %(6) | ||||||||||||
After expense reimbursement(7) | 1.64 | %(6) | 1.64 | % | 1.64 | % | 1.66 | % | 1.74 | % | 1.46 | %(6) | ||||||||||||
| Ratio of net investment income to average net assets: | ||||||||||||||||||||||||
| Before expense reimbursement | (0.16 | )%(6) | 0.06 | % | (0.25 | )% | 0.78 | % | 0.12 | % | (0.76 | )%(6) | ||||||||||||
After expense reimbursement(7) | 0.13 | %(6) | 0.34 | % | 0.04 | % | 0.94 | % | 0.29 | % | 0.46 | %(6) | ||||||||||||
Portfolio turnover rate(8) | 11 | % | 12 | % | 14 | % | 77 | % | 14 | % | 0 | % | ||||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Market Opportunities Portfolio. |
| (9) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement contributed 0.38%, 0.37%, 0.38% and 0.44% to the returns of the No Load Class, the Advisor Class A, the Advisor Class C, and the institutional Class, respectively, for the year ended December 31, 2008. |
The accompanying notes are an integral part of these financial statements.
70
| The Market Opportunities Fund | ||||||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||||||
| For the Six | ||||||||||||||||||||||||
| Months | January 31, | |||||||||||||||||||||||
| Ended | For the | For the | For the | For the | 2006ˆ | |||||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | Year Ended | through | |||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| $ | 11.43 | $ | 10.80 | $ | 7.22 | $ | 16.07 | $ | 12.04 | $ | 10.00 | |||||||||||||
| (0.01 | )(2) | 0.01 | (2) | (0.02 | )(2) | 0.08 | (2) | 0.00 | (2)(3) | 0.02 | ||||||||||||||
| 0.34 | 1.19 | 3.61 | (8.97 | ) | 4.04 | 2.05 | ||||||||||||||||||
| — | — | — | 0.06 | — | — | |||||||||||||||||||
| 0.33 | 1.20 | 3.59 | (8.83 | ) | 4.04 | 2.07 | ||||||||||||||||||
| 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | — | ||||||||||||||
| — | (0.57 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||||
| — | (0.57 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||||
| $ | 11.76 | $ | 11.43 | $ | 10.80 | $ | 7.22 | $ | 16.07 | $ | 12.04 | |||||||||||||
| 2.89 | %(5) | 11.11 | % | 49.66 | % | (54.91 | )%(9) | 33.54 | % | 20.68 | %(5) | |||||||||||||
| $ | 10,028 | $ | 14,167 | $ | 18,770 | $ | 18,514 | $ | 43,907 | $ | 9,591 | |||||||||||||
| 2.18 | %(6) | 2.17 | % | 2.18 | % | 2.07 | % | 2.16 | % | 2.93 | %(6) | |||||||||||||
| 1.89 | %(6) | 1.89 | % | 1.89 | % | 1.91 | % | 1.99 | % | 1.71 | %(6) | |||||||||||||
| (0.41 | )%(6) | (0.19 | )% | (0.50 | )% | 0.53 | % | (0.14 | )% | (1.01 | )%(6) | |||||||||||||
| (0.12 | )%(6) | 0.09 | % | (0.21 | )% | 0.69 | % | 0.03 | % | (0.21 | )%(6) | |||||||||||||
| 11 | % | 12 | % | 14 | % | 77 | % | 14 | % | 0 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
71
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Market Opportunities Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | February 16, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| Beginning of Period | $ | 11.30 | $ | 10.69 | $ | 7.17 | $ | 16.01 | $ | 12.99 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | (0.04 | ) | (0.04 | ) | (0.06 | ) | 0.02 | (0.05 | ) | |||||||||||
| Net realized and unrealized gain (loss) on investments | 0.34 | 1.17 | 3.59 | (8.91 | ) | 3.07 | ||||||||||||||
Payment by adviser(9) | — | — | — | 0.06 | — | |||||||||||||||
| Total from investment operations | 0.30 | 1.13 | 3.53 | (8.83 | ) | 3.02 | ||||||||||||||
| Redemption Fees | — | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00(3 | ) | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.52 | ) | (0.01 | ) | (0.01 | ) | — | ||||||||||||
| From net realized gains | — | — | — | — | — | |||||||||||||||
| Total distributions | — | (0.52 | ) | (0.01 | ) | (0.01 | ) | — | ||||||||||||
| Net Asset Value, End of Period | $ | 11.60 | $ | 11.30 | $ | 10.69 | $ | 7.17 | $ | 16.01 | ||||||||||
Total return(4) | 2.65 | %(5) | 10.54 | % | 49.17 | % | (55.13 | )%(9) | 23.25 | %(5) | ||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 5,234 | $ | 5,569 | $ | 6,055 | $ | 771 | $ | 8,790 | ||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.68 | %(6) | 2.67 | % | 2.68 | % | 2.57 | % | 2.66 | %(6) | ||||||||||
After expense reimbursement(7) | 2.39 | %(6) | 2.39 | % | 2.39 | % | 2.41 | % | 2.49 | %(6) | ||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.91 | )%(6) | (0.69 | )% | (1.00 | )% | 0.03 | % | (0.60 | )%(6) | ||||||||||
After expense reimbursement(7) | (0.62 | )%(6) | (0.41 | )% | (0.71 | )% | 0.19 | % | (0.43 | )%(6) | ||||||||||
Portfolio turnover rate(8) | 11 | % | 12 | % | 14 | % | 77 | % | 14 | % | ||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net Investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Market Opportunities Portfolio. |
| (9) | Includes adviser reimbursement from the net realized loss on the disposal of investments in violation of restrictions. This reimbursement contributed 0.38%, 0.37%, 0.38% and 0.44% to the returns of the No Load Class, the Advisor Class A, the Advisor Class C, and the Institutional Class, respectively, for the year ended December 31, 2008. |
The accompanying notes are an integral part of these financial statements.
72
| The Market Opportunities Fund | ||||||||||||||||
| Institutional Class | ||||||||||||||||
| For the | ||||||||||||||||
| Six Months | ||||||||||||||||
| Ended | For the | For the | May 19, 2008ˆ | |||||||||||||
| June 30, | Year Ended | Year Ended | through | |||||||||||||
| 2011 | December 31, | December 31, | December 31, | |||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | |||||||||||||
| $ | 11.48 | $ | 10.86 | $ | 7.21 | $ | 13.71 | |||||||||
| 0.02 | 0.06 | 0.02 | 0.08 | |||||||||||||
| 0.33 | 1.19 | 3.64 | (6.55 | ) | ||||||||||||
| — | — | — | 0.06 | |||||||||||||
| 0.35 | 1.25 | 3.66 | (6.41 | ) | ||||||||||||
| — | — | — | — | |||||||||||||
| — | (0.63 | ) | (0.01 | ) | (0.09 | ) | ||||||||||
| — | — | — | — | |||||||||||||
| — | (0.63 | ) | (0.01 | ) | (0.09 | ) | ||||||||||
| $ | 11.83 | $ | 11.48 | $ | 10.86 | $ | 7.21 | |||||||||
| 3.05 | %(5) | 11.54 | % | 50.70 | % | (46.77 | )%(5)(9) | |||||||||
| $ | 176 | $ | 212 | $ | 19 | $ | 5 | |||||||||
| 1.88 | %(6) | 1.87 | % | 1.88 | % | 1.82 | %(6) | |||||||||
| 1.44 | %(6) | 1.44 | % | 1.44 | % | 1.44 | %(6) | |||||||||
| (0.11 | )%(6) | 0.11 | % | (0.20 | )% | 0.94 | %(6) | |||||||||
| 0.33 | %(6) | 0.54 | % | 0.24 | % | 1.32 | %(6) | |||||||||
| 11 | % | 12 | % | 14 | % | 77 | % | |||||||||
The accompanying notes are an integral part of these financial statements.
73
| The Water Infrastructure Fund | ||||||||||||||||||||
| No Load Class | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | June 29, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| Beginning of Period | $ | 8.38 | $ | 8.86 | $ | 7.61 | $ | 10.17 | $ | 10.00 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income(2) | 0.04 | 0.07 | 0.04 | 0.10 | 0.06 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.17 | (0.48 | ) | 1.21 | (2.66 | ) | 0.20 | |||||||||||||
| Total from investment operations | 0.21 | (0.41 | ) | 1.25 | (2.56 | ) | 0.26 | |||||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | — | |||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.07 | ) | (0.00 | )(3) | — | (0.04 | ) | ||||||||||||
| From net realized gains | — | — | — | — | (0.05 | ) | ||||||||||||||
| Total distributions | — | (0.07 | ) | (0.00 | )(3) | — | (0.09 | ) | ||||||||||||
| Net Asset Value, End of Period | $ | 8.59 | $ | 8.38 | $ | 8.86 | $ | 7.61 | $ | 10.17 | ||||||||||
Total return(4) | 2.51 | %(5) | (4.60 | )% | 16.46 | % | (25.17 | )% | 2.64 | %(5) | ||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 6,903 | $ | 7,001 | $ | 7,176 | $ | 6,598 | $ | 2,385 | ||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 2.26 | %(6) | 2.17 | % | 2.36 | % | 2.20 | % | 3.62 | %(6) | ||||||||||
After expense reimbursement(7) | 1.64 | %(6) | 1.64 | % | 1.64 | % | 1.65 | % | 1.74 | %(6) | ||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 0.36 | %(6) | 0.33 | % | (0.26 | )% | 0.55 | % | (0.73 | )%(6) | ||||||||||
After expense reimbursement(7) | 0.98 | %(6) | 0.86 | % | 0.46 | % | 1.10 | % | 1.15 | %(6) | ||||||||||
Portfolio turnover rate(8) | 6 | % | 111 | % | 45 | % | 66 | % | 7 | % | ||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net Investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Water Infrastructure Portfolio. |
The accompanying notes are an integral part of these financial statements.
74
| The Water Infrastructure Fund | ||||||||||||||||||||
| Advisor Class A | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | June 29, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| $ | 8.35 | $ | 8.82 | $ | 7.59 | $ | 10.17 | $ | 10.00 | |||||||||||
| 0.03 | 0.05 | 0.02 | 0.07 | 0.05 | ||||||||||||||||
0.17 | (0.47 | ) | 1.21 | (2.65 | ) | 0.20 | ||||||||||||||
| 0.20 | (0.42 | ) | 1.23 | (2.58 | ) | 0.25 | ||||||||||||||
| 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | 0.00 | (3) | |||||||||||
| — | (0.05 | ) | — | — | (0.03 | ) | ||||||||||||||
| — | — | — | — | (0.05 | ) | |||||||||||||||
| — | (0.05 | ) | — | — | (0.08 | ) | ||||||||||||||
| $ | 8.55 | $ | 8.35 | $ | 8.82 | $ | 7.59 | $ | 10.17 | |||||||||||
| 2.40 | %(5) | (4.80 | )% | 16.21 | % | (25.37 | )% | 2.55 | %(5) | |||||||||||
| $ | 7,368 | $ | 10,100 | $ | 10,339 | $ | 7,661 | $ | 2,459 | |||||||||||
| 2.51 | %(6) | 2.42 | % | 2.61 | % | 2.45 | % | 3.87 | %(6) | |||||||||||
| 1.89 | %(6) | 1.89 | % | 1.89 | % | 1.90 | % | 1.99 | %(6) | |||||||||||
| 0.11 | %(6) | 0.08 | % | (0.51 | )% | 0.30 | % | (0.98 | )%(6) | |||||||||||
| 0.73 | %(6) | 0.61 | % | 0.21 | % | 0.85 | % | 0.90 | %(6) | |||||||||||
| 6 | % | 111 | % | 45 | % | 66 | % | 7 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
75
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Water Infrastructure Fund | ||||||||||||||||||||
| Advisor Class C | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | June 29, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||||||
| Net Asset Value | ||||||||||||||||||||
| Beginning of Period | $ | 8.25 | $ | 8.71 | $ | 7.54 | $ | 10.16 | $ | 10.00 | ||||||||||
| Income from Investment Operations: | ||||||||||||||||||||
Net investment income (loss)(2) | 0.01 | 0.01 | (0.02 | ) | 0.03 | 0.02 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.17 | (0.46 | ) | 1.19 | (2.65 | ) | 0.21 | |||||||||||||
| Total from investment operations | 0.18 | (0.45 | ) | 1.17 | (2.62 | ) | 0.23 | |||||||||||||
| Redemption Fees | — | — | 0.00 | (3) | — | 0.00 | (3) | |||||||||||||
| Less Distributions: | ||||||||||||||||||||
| From net investment income | — | (0.01 | ) | — | — | (0.02 | ) | |||||||||||||
| From net realized gains | — | — | — | — | (0.05 | ) | ||||||||||||||
| Total distributions | — | (0.01 | ) | — | — | (0.07 | ) | |||||||||||||
| Net Asset Value, End of Period | $ | 8.43 | $ | 8.25 | $ | 8.71 | $ | 7.54 | $ | 10.16 | ||||||||||
Total return(4) | 2.18 | %(5) | (5.15 | )% | 15.52 | % | (25.79 | )% | 2.33 | %(5) | ||||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 2,797 | $ | 2,840 | $ | 2,700 | $ | 1,571 | $ | 1,201 | ||||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | 3.01 | %(6) | 2.92 | % | 3.11 | % | 2.95 | % | 4.37 | %(6) | ||||||||||
After expense reimbursement(7) | 2.39 | %(6) | 2.39 | % | 2.39 | % | 2.40 | % | 2.49 | %(6) | ||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||
| Before expense reimbursement | (0.39 | )%(6) | (0.42 | )% | (1.01 | )% | (0.20 | )% | (1.48 | )%(6) | ||||||||||
After expense reimbursement(7) | 0.23 | %(6) | 0.11 | % | (0.29 | )% | 0.35 | % | 0.40 | %(6) | ||||||||||
Portfolio turnover rate(8) | 6 | % | 111 | % | 45 | % | 66 | % | 7 | % | ||||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Water Infrastructure Portfolio. |
The accompanying notes are an integral part of these financial statements.
76
| The Water Infrastructure Fund | ||||||||||||||||||||
| Institutional Class | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | June 29, | |||||||||||||||||||
| Ended | For the | For the | For the | 2007ˆ | ||||||||||||||||
| June 30, | Year Ended | Year Ended | Year Ended | through | ||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| $ | 8.42 | $ | 8.90 | $ | 7.63 | $ | 10.18 | $ | 10.00 | |||||||||||
| 0.05 | 0.09 | 0.05 | 0.12 | 0.06 | ||||||||||||||||
0.19 | (0.48 | ) | 1.23 | (2.67 | ) | 0.21 | ||||||||||||||
| 0.24 | (0.39 | ) | 1.28 | (2.55 | ) | 0.27 | ||||||||||||||
| 0.01 | 0.00 | (3) | 0.01 | 0.00 | (3) | — | ||||||||||||||
| — | (0.09 | ) | (0.02 | ) | — | (0.04 | ) | |||||||||||||
| — | — | — | — | (0.05 | ) | |||||||||||||||
| — | (0.09 | ) | (0.02 | ) | — | (0.09 | ) | |||||||||||||
| $ | 8.67 | $ | 8.42 | $ | 8.90 | $ | 7.63 | $ | 10.18 | |||||||||||
| 2.97 | %(5) | (4.38 | )% | 16.94 | % | (25.05 | )% | 2.76 | %(5) | |||||||||||
| $ | 1,238 | $ | 4,182 | $ | 2,905 | $ | 251 | $ | 103 | |||||||||||
| 2.21 | %(6) | 2.12 | % | 2.31 | % | 2.15 | % | 3.58 | %(6) | |||||||||||
| 1.44 | %(6) | 1.44 | % | 1.44 | % | 1.45 | % | 1.54 | %(6) | |||||||||||
| 0.41 | %(6) | 0.38 | % | (0.21 | )% | 0.60 | % | (0.69 | )%(6) | |||||||||||
| 1.18 | %(6) | 1.06 | % | 0.66 | % | 1.30 | % | 1.35 | %(6) | |||||||||||
| 6 | % | 111 | % | 45 | % | 66 | % | 7 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
77
| The Multi-Disciplinary Fund | ||||||||||||||||
| No Load Class | ||||||||||||||||
| For the | ||||||||||||||||
| Six Months | February 11, | |||||||||||||||
| Ended | For the | For the | 2008ˆ | |||||||||||||
| June 30, | Year Ended | Year Ended | through | |||||||||||||
| 2011 | December 31, | December 31, | December 31, | |||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | |||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||
| Net Asset Value | ||||||||||||||||
| Beginning of Period | $ | 10.47 | $ | 9.86 | $ | 8.22 | $ | 10.00 | ||||||||
| Income from Investment Operations: | ||||||||||||||||
Net investment income (loss)(2) | 0.29 | 0.35 | 0.09 | 0.01 | ||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.39 | 0.91 | 1.79 | (1.79 | ) | |||||||||||
| Total from investment operations | 0.68 | 1.26 | 1.88 | (1.78 | ) | |||||||||||
| Redemption Fees | 0.00 | (3) | 0.00 | (3) | — | — | ||||||||||
| Less Distributions: | ||||||||||||||||
| From net investment income | (0.19 | ) | (0.35 | ) | (0.08 | ) | (0.00 | )(3) | ||||||||
| From net realized gains | — | (0.30 | ) | (0.16 | ) | — | ||||||||||
| Total distributions | (0.19 | ) | (0.65 | ) | (0.24 | ) | (0.00 | )(3) | ||||||||
| Net Asset Value, End of Period | $ | 10.96 | $ | 10.47 | $ | 9.86 | $ | 8.22 | ||||||||
Total return(4) | 6.49 | %(5) | 13.04 | % | 22.90 | % | (17.76 | )%(5) | ||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||
| Net assets, end of period (000’s) | $ | 10,841 | $ | 3,489 | $ | 938 | $ | 99 | ||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||
| Before expense reimbursement | 2.68 | %(6) | 6.11 | % | 13.11 | % | 17.58 | %(6) | ||||||||
After expense reimbursement(7) | 1.49 | %(6) | 1.49 | % | 1.49 | % | 1.49 | %(6) | ||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||
| Before expense reimbursement | 4.25 | %(6) | (1.19 | )% | (10.69 | )% | (15.99 | )%(6) | ||||||||
After expense reimbursement(7) | 5.44 | %(6) | 3.43 | % | 0.93 | % | 0.10 | %(6) | ||||||||
Portfolio turnover rate(8) | 28 | % | 38 | % | 77 | % | N/A | (9) | ||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Multi-Disciplinary Portfolio. |
| (9) | The Multi-Disciplinary Portfolio did not hold any long-term securities during the period, therefore the portfolio turnover is not applicable. |
The accompanying notes are an integral part of these financial statements.
78
| The Multi-Disciplinary Fund | ||||||||||||||||||||||||||||||||
| Advisor Class A | Advisor Class C | |||||||||||||||||||||||||||||||
| For the | For the | |||||||||||||||||||||||||||||||
| Six Months | February 11, | Six Months | February 11, | |||||||||||||||||||||||||||||
| Ended | For the | For the | 2008ˆ | Ended | For the | For the | 2008ˆ | |||||||||||||||||||||||||
| June 30, | Year Ended | Year Ended | through | June 30, | Year Ended | Year Ended | through | |||||||||||||||||||||||||
| 2011 | December 31, | December 31, | December 31, | 2011 | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | (Unaudited) | 2010 | 2009 | 2008 | |||||||||||||||||||||||||
| $ | 10.44 | $ | 9.85 | $ | 8.20 | $ | 10.00 | $ | 10.40 | $ | 9.80 | $ | 8.17 | $ | 10.00 | |||||||||||||||||
| 0.28 | 0.33 | 0.06 | (0.01 | ) | 0.25 | 0.27 | 0.02 | (0.05 | ) | |||||||||||||||||||||||
| 0.38 | 0.89 | 1.80 | (1.79 | ) | 0.39 | 0.90 | 1.78 | (1.78 | ) | |||||||||||||||||||||||
| 0.66 | 1.22 | 1.86 | (1.80 | ) | 0.64 | 1.17 | 1.80 | (1.83 | ) | |||||||||||||||||||||||
| — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| (0.18 | ) | (0.33 | ) | (0.05 | ) | (0.00 | )(3) | (0.17 | ) | (0.27 | ) | (0.01 | ) | (0.00 | )(3) | |||||||||||||||||
| — | (0.30 | ) | (0.16 | ) | — | — | (0.30 | ) | (0.16 | ) | — | |||||||||||||||||||||
| (0.18 | ) | (0.63 | ) | (0.21 | ) | (0.00 | )(3) | (0.17 | ) | (0.57 | ) | (0.17 | ) | (0.00 | )(3) | |||||||||||||||||
| $ | 10.92 | $ | 10.44 | $ | 9.85 | $ | 8.20 | $ | 10.87 | $ | 10.40 | $ | 9.80 | $ | 8.17 | |||||||||||||||||
| 6.33 | %(5) | 12.64 | % | 22.73 | % | (17.97 | )%(5) | 6.14 | %(5) | 12.13 | % | 22.03 | % | (18.30 | )%(5) | |||||||||||||||||
| $ | 1,205 | $ | 356 | $ | 103 | $ | 84 | $ | 1,066 | $ | 128 | $ | 105 | $ | 88 | |||||||||||||||||
| 2.93 | %(6) | 6.36 | % | 13.36 | % | 17.83 | %(6) | 3.43 | %(6) | 6.86 | % | 13.86 | % | 18.33 | %(6) | |||||||||||||||||
| 1.74 | %(6) | 1.74 | % | 1.74 | % | 1.74 | %(6) | 2.24 | %(6) | 2.24 | % | 2.24 | % | 2.24 | %(6) | |||||||||||||||||
| 4.00 | %(6) | (1.44 | )% | (10.94 | )% | (16.24 | )%(6) | 3.50 | %(6) | (1.94 | )% | (11.44 | )% | (16.74 | )%(6) | |||||||||||||||||
| 5.19 | %(6) | 3.18 | % | 0.68 | % | (0.15 | )%(6) | 4.69 | %(6) | 2.68 | % | 0.18 | % | (0.65 | )%(6) | |||||||||||||||||
| 28 | % | 38 | % | 77 | % | N/A | (9) | 28 | % | 38 | % | 77 | % | N/A | (9) | |||||||||||||||||
The accompanying notes are an integral part of these financial statements.
79
KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS
Financial Highlights — (Continued)
| The Multi-Disciplinary Fund | ||||||||||||||||
| Institutional Class | ||||||||||||||||
| For the | ||||||||||||||||
| Six Months | February 11, | |||||||||||||||
| Ended | For the | For the | 2008ˆ | |||||||||||||
| June 30, | Year Ended | Year Ended | through | |||||||||||||
| 2011 | December 31, | December 31, | December 31, | |||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | |||||||||||||
PER SHARE DATA:(1) | ||||||||||||||||
| Net Asset Value | ||||||||||||||||
| Beginning of Period | $ | 10.50 | $ | 9.89 | $ | 8.23 | $ | 10.00 | ||||||||
| Income from Investment Operations: | ||||||||||||||||
Net investment income(2) | 0.30 | 0.37 | 0.10 | 0.02 | ||||||||||||
| Net realized and unrealized gain (loss) on investments | 0.39 | 0.91 | 1.81 | (1.79 | ) | |||||||||||
| Total from investment operations | 0.69 | 1.28 | 1.91 | (1.77 | ) | |||||||||||
| Redemption Fees | — | — | — | — | ||||||||||||
| Less Distributions: | ||||||||||||||||
| From net investment income | (0.20 | ) | (0.37 | ) | (0.09 | ) | (0.00 | )(3) | ||||||||
| From net realized gains | — | (0.30 | ) | (0.16 | ) | — | ||||||||||
| Total distributions | (0.20 | ) | (0.67 | ) | (0.25 | ) | (0.00 | )(3) | ||||||||
| Net Asset Value, End of Period | $ | 10.99 | $ | 10.50 | $ | 9.89 | $ | 8.23 | ||||||||
Total return(4) | 6.56 | %(5) | 13.19 | % | 23.25 | % | (17.65 | )%(5) | ||||||||
SUPPLEMENTAL DATA AND RATIOS | ||||||||||||||||
| Net assets, end of period (000’s) | $ | 3,896 | $ | 142 | $ | 101 | $ | 82 | ||||||||
| Ratio of operating expenses to average net assets: | ||||||||||||||||
| Before expense reimbursement | 2.63 | %(6) | 6.06 | % | 13.06 | % | 17.53 | %(6) | ||||||||
After expense reimbursement(7) | 1.29 | %(6) | 1.29 | % | 1.29 | % | 1.29 | %(6) | ||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||
| Before expense reimbursement | 4.30 | %(6) | (1.14 | )% | (10.64 | )% | (15.94 | )%(6) | ||||||||
After expense reimbursement(7) | 5.64 | %(6) | 3.63 | % | 1.13 | % | 0.30 | %(6) | ||||||||
Portfolio turnover rate(8) | 28 | % | 38 | % | 77 | % | N/A | (9) | ||||||||
| ˆ | Commencement of operations. |
| (1) | Information presented relates to a share of capital stock outstanding for each period. |
| (2) | Net investment income per share represents net investment income divided by the average shares outstanding throughout the period. |
| (3) | Amount calculated is less than $0.005. |
| (4) | The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares. |
| (5) | Not annualized. |
| (6) | Annualized. |
| (7) | See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion. |
| (8) | Portfolio turnover of The Multi-Disciplinary Portfolio. |
| (9) | The Multi-Disciplinary Portfolio did not hold any long-term securities during the period, therefore the portfolio turnover is not applicable. |
The accompanying notes are an integral part of these financial statements.
80
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited)
The Internet Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550318.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Information | $ | 65,137,673 | 52.8 | % | ||||
| Retail Trade | 14,086,999 | 11.4 | % | |||||
| Finance and Insurance | 11,941,357 | 9.7 | % | |||||
| Manufacturing | 9,553,200 | 7.8 | % | |||||
| Arts, Entertainment, and Recreation | 6,327,733 | 5.1 | % | |||||
| Professional, Scientific, and Technical Services | 4,975,320 | 4.0 | % | |||||
| Telecommunications | 2,485,582 | 2.0 | % | |||||
| Real Estate and Rental and Leasing | 2,190,368 | 1.8 | % | |||||
| Transportation and Warehousing | 1,266,341 | 1.0 | % | |||||
| Management of Companies and Enterprises | 777,377 | 0.6 | % | |||||
| Administrative and Support and Waste Management and Remediation Services | 496,218 | 0.4 | % | |||||
| Educational Services | 396,606 | 0.3 | % | |||||
| * | Excludes Short-Term Investments |
81
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Global Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550319.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Country Allocation* | Value | Net Assets | ||||||
| Japan | $ | 2,437,724 | 47.1 | % | ||||
| France | 486,668 | 9.4 | % | |||||
| Canada | 327,071 | 6.3 | % | |||||
| Germany | 250,908 | 4.9 | % | |||||
| Switzerland | 225,204 | 4.4 | % | |||||
| Italy | 216,313 | 4.2 | % | |||||
| United Kingdom | 187,040 | 3.6 | % | |||||
| Netherlands | 154,080 | 3.0 | % | |||||
| Jersey | 141,315 | 2.7 | % | |||||
| Chile | 129,440 | 2.5 | % | |||||
| Hong Kong | 106,918 | 2.1 | % | |||||
| Hungary | 96,849 | 1.9 | % | |||||
| Poland | 75,361 | 1.5 | % | |||||
| Luxembourg | 72,754 | 1.4 | % | |||||
| Australia | 68,475 | 1.3 | % | |||||
| China | 64,639 | 1.3 | % | |||||
| Denmark | 48,839 | 0.9 | % | |||||
| Bermuda | 39,837 | 0.8 | % | |||||
| Portugal | 26,590 | 0.5 | % | |||||
| Austria | 16,462 | 0.3 | % | |||||
| * | Excludes Short-Term Investments |
82
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Paradigm Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550320.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Finance and Insurance | $ | 202,266,703 | 17.0 | % | ||||
| Real Estate and Rental and Leasing | 185,716,566 | 15.7 | % | |||||
| Information | 160,829,819 | 13.6 | % | |||||
| Arts, Entertainment, and Recreation | 148,888,339 | 12.5 | % | |||||
| Mining, Quarrying, and Oil and Gas Extraction | 147,040,573 | 12.4 | % | |||||
| Management of Companies and Enterprises | 103,293,437 | 8.7 | % | |||||
| Retail Trade | 96,841,759 | 8.2 | % | |||||
| Manufacturing | 58,592,542 | 4.9 | % | |||||
| Transportation and Warehousing | 22,459,905 | 1.9 | % | |||||
| Telecommunications | 10,503,789 | 0.9 | % | |||||
| Wholesale Trade | 7,525,230 | 0.6 | % | |||||
| Utilities | 1,651,547 | 0.1 | % | |||||
| Escrow Notes | 0 | 0.0 | % | |||||
| * | Excludes Short-Term Investments |
83
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Medical Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550321.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Manufacturing | $ | 31,392,282 | 90.8 | % | ||||
| Professional, Scientific, and Technical Services | 1,503,014 | 4.3 | % | |||||
| Finance & Insurance | 3,964 | 0.0 | % | |||||
| Health Care and Social Assistance | 1,450 | 0.0 | % | |||||
| * | Excludes Short-Term Investments |
84
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Small Cap Opportunities Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550322.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Finance and Insurance | $ | 30,898,296 | 27.3 | % | ||||
| Real Estate and Rental and Leasing | 18,877,594 | 16.7 | % | |||||
| Transportation and Warehousing | 14,749,954 | 13.1 | % | |||||
| Mining, Quarrying, and Oil and Gas Extraction | 10,382,113 | 9.2 | % | |||||
| Management of Companies and Enterprises | 9,997,414 | 8.8 | % | |||||
| Manufacturing | 7,230,276 | 6.4 | % | |||||
| Retail Trade | 7,159,043 | 6.3 | % | |||||
| Arts, Entertainment, and Recreation | 4,516,691 | 4.0 | % | |||||
| Administrative and Support and Waste Management and Remediation Services | 3,916,297 | 3.5 | % | |||||
| Information | 3,223,230 | 2.9 | % | |||||
| Utilities | 836,679 | 0.7 | % | |||||
| Accommodation and Food Services | 660,753 | 0.6 | % | |||||
| Telecommunications | 336,977 | 0.3 | % | |||||
| * | Excludes Short-Term Investments |
85
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Market Opportunities Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550323.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Finance and Insurance | $ | 40,183,958 | 80.0 | % | ||||
| Mining, Quarrying, and Oil and Gas Extraction | 3,848,598 | 7.6 | % | |||||
| Management of Companies and Enterprises | 1,952,245 | 3.9 | % | |||||
| Retail Trade | 1,839,093 | 3.7 | % | |||||
| Arts, Entertainment, and Recreation | 1,595,116 | 3.2 | % | |||||
| Information | 240,306 | 0.5 | % | |||||
| Utilities | 70,541 | 0.1 | % | |||||
| Transportation and Warehousing | 58,892 | 0.1 | % | |||||
| * | Excludes Short-Term Investments |
86
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Water Infrastructure Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550324.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Utilities | $ | 4,195,964 | 22.8 | % | ||||
| Manufacturing | 2,683,050 | 14.6 | % | |||||
| Mining, Quarrying, and Oil and Gas Extraction | 1,822,500 | 9.9 | % | |||||
| Management of Companies and Enterprises | 1,316,981 | 7.2 | % | |||||
| Professional, Scientific, and Technical Services | 431,865 | 2.3 | % | |||||
| Administrative and Support and Waste Management and Remediation Services | 48,180 | 0.3 | % | |||||
| * | Excludes Short-Term Investments |
87
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets
June 30, 2011 (Unaudited) — (Continued)
The Multi-Disciplinary Portfolio
![[GRAPH]](https://capedge.com/proxy/N-CSRS/0000950123-11-082708/c65503bc6550325.gif)
| Percentage | ||||||||
| Market | of Total | |||||||
| Sector Allocation* | Value | Net Assets | ||||||
| Mining, Quarrying, and Oil and Gas Extraction | $ | 3,927,575 | 23.0 | % | ||||
| Finance and Insurance | 1,780,241 | 10.4 | % | |||||
| Transportation and Warehousing | 1,505,000 | 8.8 | % | |||||
| Management of Companies and Enterprises | 1,422,724 | 8.3 | % | |||||
| Utilities | 1,085,000 | 6.3 | % | |||||
| Real Estate and Rental and Leasing | 1,068,933 | 6.2 | % | |||||
| Arts, Entertainment, and Recreation | 873,375 | 5.1 | % | |||||
| Health Care and Social Assistance | 812,000 | 4.8 | % | |||||
| Administrative and Support and Waste Management and Remediation Services | 343,125 | 2.0 | % | |||||
| Manufacturing | 359,875 | 2.1 | % | |||||
| Professional, Scientific, and Technical Services | 105,375 | 0.6 | % | |||||
| Information | 101,125 | 0.6 | % | |||||
| * | Excludes Short-Term Investments |
88
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited)
| Identifier | COMMON STOCKS — 96.05% | Shares | Value | |||||||
| Administrative and Support Services — 0.40% | ||||||||||
| CTRP | Ctrip.com International Ltd. — ADR*ˆ | 6,000 | $ | 258,480 | ||||||
| IILG | Interval Leisure Group, Inc.* | 200 | 2,738 | |||||||
| ID | L-1 Identity Solutions, Inc.* | 20,000 | 235,000 | |||||||
| 496,218 | ||||||||||
| Amusement, Gambling, and Recreation Industries — 0.94% | ||||||||||
| DIS | The Walt Disney Co.ˆ | 29,691 | 1,159,137 | |||||||
| Asset Management — 0.26% | ||||||||||
| URB/A CN | Urbana Corporation — Class A* | 240,000 | 323,501 | |||||||
| Broadcasting (except Internet) — 18.30% | ||||||||||
| CBS | CBS Corporation — Class B | 48,340 | 1,377,206 | |||||||
| DISCA | Discovery Communications, Inc. — Class A*ˆ | 90,412 | 3,703,275 | |||||||
| LBTYK | Liberty Global, Inc. — Series C* | 100,707 | 4,300,189 | |||||||
| LCAPA | Liberty Media Corp. — Capital — Series A* | 23,580 | 2,021,985 | |||||||
| LINTA | Liberty Media Corp. — Interactive — Class A* | 174,500 | 2,926,365 | |||||||
| LSTZA | Liberty Media Corp. — Starz — Series A* | 40,190 | 3,023,896 | |||||||
| 2008 HK | Phoenix Satellite Television Holdings Limited | 5,006,000 | 1,974,944 | |||||||
| SNI | Scripps Networks Interactive — Class A | 65,000 | 3,177,200 | |||||||
| SIRI | Sirius XM Radio, Inc.* | 46,000 | 100,740 | |||||||
| 22,605,800 | ||||||||||
| Computer and Electronic Product Manufacturing — 2.05% | ||||||||||
| AAPL | Apple, Inc.* | 5,000 | 1,678,350 | |||||||
| QCOM | QUALCOMM Inc. | 15,000 | 851,850 | |||||||
| 2,530,200 | ||||||||||
| Credit Intermediation and Related Activities — 0.04% | ||||||||||
| TREE | Tree.com, Inc.* | 10,033 | 51,369 | |||||||
| Data Processing, Hosting and Related Services — 0.10% | ||||||||||
| CSGP | CoStar Group, Inc.*ˆ | 2,000 | 118,560 | |||||||
The accompanying notes are an integral part of these financial statements.
89
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Data Processor — 3.02% | ||||||||||
| MA | Mastercard, Inc. — Class A | 5,620 | $ | 1,693,531 | ||||||
| VRSK | Verisk Analytics, Inc. — Class A* | 10,000 | 346,200 | |||||||
| V | Visa, Inc. — Class Aˆ | 20,000 | 1,685,200 | |||||||
| 3,724,931 | ||||||||||
| Defense — 5.68% | ||||||||||
| CACI | CACI International, Inc. — Class A*ˆ | 55,000 | 3,469,400 | |||||||
| MANT | ManTech International Corporation — Class Aˆ | 80,000 | 3,553,600 | |||||||
| 7,023,000 | ||||||||||
| Educational Services — 0.32% | ||||||||||
| EDU | New Oriental Education & Technology Group, Inc. — ADR*ˆ | 3,550 | 396,606 | |||||||
| European Exchanges — 1.53% | ||||||||||
| NAT BB | Compagnie Nationale a Portefeuille*+ | 26,685 | 1,891,145 | |||||||
| Gaming — 1.22% | ||||||||||
| 200 HK | Melco International Development Limited | 1,500,000 | 1,513,165 | |||||||
| Global Exchanges — 2.06% | ||||||||||
| JSE SJ | JSE Limited | 51,000 | 478,941 | |||||||
| 8697 JP | Osaka Securities Exchange Co., Ltd. | 210 | 935,159 | |||||||
| SGX SP | Singapore Exchange Limited | 185,000 | 1,134,128 | |||||||
| 2,548,228 | ||||||||||
| Holding Company — 0.63% | ||||||||||
| GBLS BB | Groupe Bruxelles Lambert S.A. Strip VVPR* | 2,000 | 23 | |||||||
| IEP | Icahn Enterprises LP | 18,078 | 777,354 | |||||||
| 777,377 | ||||||||||
| Management of Companies and Enterprises — 2.01% | ||||||||||
| SATS | EchoStar Corporation — Class A* | 68,229 | 2,485,583 | |||||||
The accompanying notes are an integral part of these financial statements.
90
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Motion Picture and Sound Recording Industries — 8.60% | ||||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*ˆ | 154,420 | $ | 3,103,842 | ||||||
| SINA | SINA Corporation*ˆ | 41,980 | 4,370,118 | |||||||
| TWX | Time Warner, Inc.ˆ | 86,666 | 3,152,042 | |||||||
| 10,626,002 | ||||||||||
| Motor Vehicle and Parts Dealers — 0.92% | ||||||||||
| AN | AutoNation, Inc.*ˆ | 30,890 | 1,130,883 | |||||||
| Non-Store Retailers — 10.49% | ||||||||||
| CPRT | Copart, Inc.*ˆ | 20,030 | 933,398 | |||||||
| EBAY | eBay, Inc.* | 81,290 | 2,623,228 | |||||||
| HSNI | HSN, Inc.* | 200 | 6,584 | |||||||
| IACI | IAC/InterActiveCorp*ˆ | 60,740 | 2,318,446 | |||||||
| OSTK | Overstock.com, Inc.* | 1,000 | 15,220 | |||||||
| RBA | Ritchie Bros. Auctioneers, Incorporatedˆ | 162,000 | 4,453,380 | |||||||
| SOHU | Sohu.com Inc.*ˆ | 18,000 | 1,300,860 | |||||||
| BID | Sotheby’sˆ | 30,000 | 1,305,000 | |||||||
| 12,956,116 | ||||||||||
| Other Exchanges — 0.32% | ||||||||||
| FTIS LI | Financial Technologies (India) Ltd. — GDR | 144,000 | 390,816 | |||||||
| Other Information Services — 10.22% | ||||||||||
| BIDU | Baidu.com, Inc. — ADR* | 57,540 | 8,063,080 | |||||||
| EXPE | Expedia, Inc.ˆ | 50,320 | 1,458,777 | |||||||
| GOOG | Google Inc. — Class A* | 3,200 | 1,620,416 | |||||||
| NTES | NetEase.com Inc. — ADR* | 11,320 | 510,419 | |||||||
| YHOO | Yahoo! Inc.*ˆ | 60,000 | 902,400 | |||||||
| YOKU | Youku.com, Inc. — ADR*ˆ | 2,160 | 74,196 | |||||||
| 12,629,288 | ||||||||||
| Performing Arts, Spectator Sports, and Related Industries — 2.96% | ||||||||||
| LYV | Live Nation Entertainment, Inc.* | 112,724 | 1,292,944 | |||||||
| MSG | The Madison Square Garden Company — Class A* | 85,815 | 2,362,487 | |||||||
| 3,655,431 | ||||||||||
The accompanying notes are an integral part of these financial statements.
91
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Professional, Scientific, and Technical Services — 4.03% | ||||||||||
| JRJC | China Finance Online Company — ADR*ˆ | 10,000 | $ | 35,900 | ||||||
| CTSH | Cognizant Technology Solutions Corporation — Class A* | 39,000 | 2,860,260 | |||||||
| ICGE | ICG Group Inc.* | 15,000 | 183,450 | |||||||
| INFY | Infosys Technologies Limited — ADRˆ | 27,185 | 1,773,278 | |||||||
| MWW | Monster Worldwide, Inc.*ˆ | 2,000 | 29,320 | |||||||
| UNTD | United Online, Inc.ˆ | 10,000 | 60,300 | |||||||
| WYY | WidePoint Corp.*ˆ | 39,062 | 32,812 | |||||||
| 4,975,320 | ||||||||||
| Publishing Industries (except Internet) — 7.06% | ||||||||||
| ROVI | Rovi Corporation*ˆ | 94,600 | 5,426,256 | |||||||
| SSP | The E.W. Scripps Company — Class A*ˆ | 341,000 | 3,297,470 | |||||||
| 8,723,726 | ||||||||||
| Rental and Leasing Services — 0.98% | ||||||||||
| CDCO | Comdisco Holding Company, Inc. | 194,400 | 1,211,112 | |||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 1.89% | ||||||||||
| COWN | Cowen Group, Inc. — Class A*ˆ | 193,103 | 726,067 | |||||||
| ICE | IntercontinentalExchange Inc.*ˆ | 11,670 | 1,455,366 | |||||||
| MKTX | MarketAxess Holdings, Inc. | 6,000 | 150,360 | |||||||
| 2,331,793 | ||||||||||
| Special Purpose Entity — 0.00% | ||||||||||
| ADPAO | Adelphia Contingent Value Vehicle CVV Services ACC-4 Int*+ | 250,827 | 0 | |||||||
| ADPAL | Adelphia Recovery Trust Ser ACC-6 E/F Int*+ | 4,878,645 | 0 | |||||||
| 0 | ||||||||||
| Telecommunications — 8.45% | ||||||||||
| CHU | China Unicom (Hong Kong) Limited — ADRˆ | 107,645 | 2,181,964 | |||||||
| DISH | DISH Network Corp. — Class A* | 60,410 | 1,852,775 | |||||||
| 215 HK | Hutchison Telecommunications Hong Kong Holdings Limited | 2,300,000 | 709,356 | |||||||
The accompanying notes are an integral part of these financial statements.
92
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Telecommunications (Continued) | ||||||||||
| HTHKY | Hutchison Telecommunications Hong Kong Holdings Limited — ADR ˆ | 45,000 | $ | 205,650 | ||||||
| SNSH | Sunshine PCS Corporation — Class A* | 149 | 5,111 | |||||||
| VIA/B | Viacom Inc. — Class B | 107,440 | 5,479,440 | |||||||
| 10,434,296 | ||||||||||
| U.S. Equity Exchanges — 0.55% | ||||||||||
| NYX | NYSE Euronext | 19,830 | 679,574 | |||||||
| Warehousing and Storage — 1.02% | ||||||||||
| IRM | Iron Mountain Incorporatedˆ | 37,147 | 1,266,341 | |||||||
| TOTAL COMMON STOCKS (cost $74,400,125 ) | 118,655,518 | |||||||||
| Principal | ||||||||||
| ESCROW NOTES — 0.00% | Amount | |||||||||
| Special Purpose Entity — 0.00% | ||||||||||
| 006ESCBG1 | Adelphia Communications Corp.*+ | $ | 200,000 | 0 | ||||||
| 006ESC958 | Adelphia Communications Corp. Preferred*+ | 190,000 | 0 | |||||||
| TOTAL ESCROW NOTES (cost $0 ) | 0 | |||||||||
| RIGHTS — 0.79% | Shares | |||||||||
| Rental and Leasing Services — 0.79% | ||||||||||
| CDCOR | Comdisco Holding Company, Inc. | |||||||||
| Expiration Date: 12/31/2050 | ||||||||||
| Strike Price: $1.00# | 12,240,699 | 979,256 | ||||||||
| TOTAL RIGHTS (cost $2,643,576 ) | 979,256 | |||||||||
The accompanying notes are an integral part of these financial statements.
93
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Internet Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | SHORT-TERM INVESTMENTS — 3.22% | Shares | Value | |||||||
| Money Market Funds — 3.22% | ||||||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00%b | 3,975,558 | $ | 3,975,558 | ||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $3,975,558 ) | 3,975,558 | |||||||||
| INVESTMENTS PURCHASED WITH | ||||||||||
| THE CASH PROCEEDS FROM | ||||||||||
| SECURITIES LENDING — 39.88% | ||||||||||
| Investment Companies — 39.88% | ||||||||||
| Mount Vernon Securities Lending Trust — | ||||||||||
| Prime Portfolio, 0.20%b | 49,273,501 | 49,273,501 | ||||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $49,273,501) | 49,273,501 | |||||||||
| TOTAL INVESTMENTS — 139.94% (cost $130,292,760) | $ | 172,883,833 | ||||||||
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $48,206,745 at June 30, 2011. |
| # — | Contingent value right (contingent upon profitability of company). |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $1,891,145 or 1.53% of net assets. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
| ADR — | American Depository Receipt. |
| GDR — | Global Depository Receipt. |
The accompanying notes are an integral part of these financial statements.
94
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | COMMON STOCKS — 100.07% | Shares | Value | |||||||
| Arts, Entertainment, and Recreation — 0.77% | ||||||||||
| 585 HK | Imagi International Holdings Limited* | 1,000,000 | $ | 39,837 | ||||||
| Asset Management — 1.92% | ||||||||||
| 8739 JP | SPARX Group Co., Ltd.* | 1,000 | 99,124 | |||||||
| Beverage and Tobacco Product Manufacturing — 1.46% | ||||||||||
| ZWC PW | Grupa Zywiec S.A. | 200 | 43,751 | |||||||
| ZWACK HB | Zwack Unicum Nyrt. | 400 | 31,756 | |||||||
| 75,507 | ||||||||||
| Chemical Manufacturing — 17.03% | ||||||||||
| LYB | LyondellBasell Industries NV — Class Aˆ | 4,000 | 154,080 | |||||||
| MRK GR | Merck KGaA | 1,000 | 108,675 | |||||||
| SNY | Sanofi-Aventis — ADRˆ | 4,000 | 160,680 | |||||||
| SHPGY | Shire PLC — ADRˆ | 1,500 | 141,315 | |||||||
| 4911 JP | Shiseido Company, Limited | 10,000 | 186,200 | |||||||
| SQM | Sociedad Quimica y Minera de Chile SA — ADRˆ | 2,000 | 129,440 | |||||||
| 880,390 | ||||||||||
| Commercial Banking — 2.52% | ||||||||||
| BHW PW | Bank Handlowy w Warszawie S.A. | 500 | 15,860 | |||||||
| MIL PW | Bank Millennium S.A. | 8,000 | 15,750 | |||||||
| MFG | Mizuho Financial Group, Inc. — ADRˆ | 30,000 | 98,400 | |||||||
| 130,010 | ||||||||||
| Computer and Electronic Product Manufacturing — 10.15% | ||||||||||
| 6954 JP | Fanuc Corporation | 1,500 | 249,301 | |||||||
| 6861 JP | Keyence Corporation | 500 | 141,233 | |||||||
| 6506 JP | YASKAWA Electric Corporation | 12,000 | 133,855 | |||||||
| 524,389 | ||||||||||
| Credit Intermediation and Related Activities — 7.71% | ||||||||||
| MTU | Mitsubishi UFJ Financial Group, Inc. — ADR | 20,000 | 96,600 | |||||||
| OTP HB | OTP Bank Nyrt. | 2,000 | 65,094 | |||||||
| SMFG | Sumitomo Mitsui Financial Group, Inc. — ADRˆ | 16,000 | 98,400 | |||||||
The accompanying notes are an integral part of these financial statements.
95
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Credit Intermediation and Related Activities (Continued) | ||||||||||
| 8309 JP | Sumitomo Mitsui Trust Holdings, Inc. | 40,000 | $ | 138,625 | ||||||
| 398,719 | ||||||||||
| Food Manufacturing — 1.92% | ||||||||||
| BARN SW | Barry Callebaut AG | 100 | 99,078 | |||||||
| Funds, Trusts, and Other Financial Vehicles — 3.27% | ||||||||||
| AER CN | Groupe Aeroplan, Inc. | 8,000 | 110,488 | |||||||
| 2337 JP | Ichigo Group Holdings Co., Ltd.* | 500 | 58,319 | |||||||
| 168,807 | ||||||||||
| Global Exchanges — 2.59% | ||||||||||
| 8697 JP | Osaka Securities Exchange Co., Ltd. | 30 | 133,594 | |||||||
| Insurance Carriers and Related Activities — 2.07% | ||||||||||
| MUV2 GR | Muenchener Rueckversicherungs-Gesellschaft AG | 700 | 107,044 | |||||||
| Machinery Manufacturing — 0.68% | ||||||||||
| KWG GR | KHD Humboldt Wedag International AG* | 3,978 | 35,189 | |||||||
| �� | ||||||||||
| Medical Equipment and Supplies Manufacturing — 1.38% | ||||||||||
| NOBN VX | Nobel Biocare Holding AG | 3,500 | 71,353 | |||||||
| Merchant Wholesalers, Durable Goods — 9.37% | ||||||||||
| CFAO FP | CFAO | 2,000 | 86,661 | |||||||
| 973 HK | L’Occitane International SA* | 40,000 | 106,917 | |||||||
| 7974 JP | Nintendo Co., Ltd. | 1,100 | 205,913 | |||||||
| 7867 JP | Tomy Company, Ltd. | 10,000 | 84,839 | |||||||
| 484,330 | ||||||||||
| Merchant Wholesalers, Nondurable Goods — 8.30% | ||||||||||
| EDEN FP | Edenred | 5,000 | 152,557 | |||||||
| 5002 JP | Showa Shell Sekiyu K.K. | 10,000 | 92,417 | |||||||
| 3402 JP | Toray Industries, Inc. | 25,000 | 183,839 | |||||||
| 428,813 | ||||||||||
| Mining (except Oil and Gas) — 2.35% | ||||||||||
| ELT AU | Elementos Limited* | 9,081 | 2,192 | |||||||
| ORE AU | Orocobre Ltd.* | 30,000 | 66,283 | |||||||
The accompanying notes are an integral part of these financial statements.
96
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Mining (except Oil and Gas) (Continued) | ||||||||||
| TTT | Terra Nova Realty Corp. | 7,000 | $ | 53,060 | ||||||
| 121,535 | ||||||||||
| Oil and Gas Extraction — 0.47% | ||||||||||
| MAU FP | Establissements Maurel et Prom | 1,000 | 24,515 | |||||||
| Paper Manufacturing — 0.51% | ||||||||||
| PTI PL | Portucel — Empresa Produtora de Pasta e Papel, S.A. | 8,000 | 26,590 | |||||||
| Professional, Scientific, and Technical Services — 7.70% | ||||||||||
| ALKB DC | Alk-Abello A/S | 800 | 48,839 | |||||||
| BSLN SW | Basilea Pharmaceutica AG* | 750 | 54,773 | |||||||
| 8601 JP | Daiwa Securities Group Inc. | 15,000 | 65,772 | |||||||
| ICLL AV | Intercell AG* | 4,000 | 16,462 | |||||||
| PTS CN | Points International Ltd.* | 6,000 | 60,097 | |||||||
| 4825 JP | Weathernews, Inc. | 6,000 | 152,040 | |||||||
| 397,983 | ||||||||||
| Real Estate — 3.41% | ||||||||||
| BRE CN | Brookfield Real Estate Services, Inc. | 7,000 | 103,427 | |||||||
| GFJ GR | Gagfah SA | 10,000 | 72,754 | |||||||
| 176,181 | ||||||||||
| Retail Trade — 1.19% | ||||||||||
| CA FP | Carrefour SA | 1,500 | 61,603 | |||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 1.91% | ||||||||||
| NMR | Nomura Holdings, Inc. — ADRˆ | 20,000 | 98,600 | |||||||
| Sporting Goods, Hobby, Book, and Music Stores — 2.33% | ||||||||||
| 7309 JP | Shimano Inc. | 2,200 | 120,651 | |||||||
| Telecommunications — 3.62% | ||||||||||
| VOD | Vodafone Group Plc — ADRˆ | 7,000 | 187,040 | |||||||
| Transportation Equipment — 1.52% | ||||||||||
| BRE IM | Brembo S.p.A. | 5,500 | 78,403 | |||||||
The accompanying notes are an integral part of these financial statements.
97
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Global Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Transportation Equipment Manufacturing — 1.25% | ||||||||||
| 1211 HK | BYD Company Limited — Class H* | 20,000 | $ | 64,639 | ||||||
| Utilities — 2.67% | ||||||||||
| EGPW IM | Enel Green Power SpA | 50,000 | 137,910 | |||||||
| TOTAL COMMON STOCKS (cost $5,008,769 ) | 5,171,834 | |||||||||
| WARRANTS — 0.01% | ||||||||||
| Oil and Gas and Consumable Fuels — 0.01% | ||||||||||
| B4PM666 | Maurel Et Prom Cw14 Expiration Date: 6/30/2014 Strike Price: $14.20* | 1,000 | 653 | |||||||
| TOTAL WARRANTS (cost $0 ) | 653 | |||||||||
| INVESTMENTS PURCHASED WITH | ||||||||||
| THE CASH PROCEEDS FROM | ||||||||||
| SECURITIES LENDING — 10.89% | ||||||||||
| Investment Companies — 10.89% | ||||||||||
| Mount Vernon Securities Lending Trust — | ||||||||||
| Prime Portfolio, 0.20%b | 562,925 | 562,925 | ||||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $562,925) | 562,925 | |||||||||
| TOTAL INVESTMENTS — 110.97% (cost $5,571,694) | $ | 5,735,412 | ||||||||
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $513,402 at June 30, 2011. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
| ADR — | American Depository Receipt. |
The accompanying notes are an integral part of these financial statements.
98
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | COMMON STOCKS — 95.99% | Shares | Value | |||||||
| Asset Management — 5.49% | ||||||||||
| BAM | Brookfield Asset Management Inc. — Class A | 1,853,790 | $ | 61,490,214 | ||||||
| URB/A CN | Urbana Corporation — Class A* | 398,178 | 536,712 | |||||||
| 806 HK | Value Partners Group Limited | 3,713,000 | 3,177,786 | |||||||
| 65,204,712 | ||||||||||
| Beverage and Tobacco Product Manufacturing — 1.38% | ||||||||||
| 168 HK | Tsingtao Brewery Co. Limited — Class H | 2,840,000 | 16,404,898 | |||||||
| Broadcasting (except Internet) — 8.54% | ||||||||||
| CBS | CBS Corporation — Class B | 573,720 | 16,345,283 | |||||||
| DISCA | Discovery Communications, Inc. — Class A*ˆ | 273,673 | 11,209,646 | |||||||
| LCAPA | Liberty Media Corp. — Capital — Series A* | 234,906 | 20,143,189 | |||||||
| LINTA | Liberty Media Corp. — Interactive — Class A* | 1,132,192 | 18,986,860 | |||||||
| LSTZA | Liberty Media Corp. — Starz — Series A* | 285,589 | 21,487,717 | |||||||
| SNI | Scripps Networks Interactive — Class A | 75,973 | 3,713,560 | |||||||
| VIA/B | Viacom Inc. — Class B | 188,499 | 9,613,449 | |||||||
| 101,499,704 | ||||||||||
| Chemical Manufacturing — 2.66% | ||||||||||
| SIAL | Sigma-Aldrich Corp. | 429,815 | 31,539,825 | |||||||
| Credit Intermediation and Related Activities — 0.00% | ||||||||||
| UCBHQ | UCBH Holdings, Inc.*ˆ | 112,751 | 1,240 | |||||||
| Gaming — 11.43% | ||||||||||
| LVS | Las Vegas Sands Corp.* | 1,465,011 | 61,838,114 | |||||||
| 200 HK | Melco International Development Limited | 1,863,000 | 1,879,352 | |||||||
| MGM | MGM Resorts International*ˆ | 759,661 | 10,035,122 | |||||||
| WYNN | Wynn Resorts Limited | 432,295 | 62,051,624 | |||||||
| 135,804,212 | ||||||||||
The accompanying notes are an integral part of these financial statements.
99
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| General Merchandise Stores — 2.93% | ||||||||||
| JCP | J.C. Penney Company, Inc.ˆ | 301,490 | $ | 10,413,465 | ||||||
| SCC CN | Sears Canada Inc. | 306,219 | 5,562,711 | |||||||
| SHLD | Sears Holdings Corporation*ˆ | 263,852 | 18,849,587 | |||||||
| 34,825,763 | ||||||||||
| Global Exchanges — 2.76% | ||||||||||
| 388 HK | Hong Kong Exchanges & Clearing Limited | 528,000 | 11,066,579 | |||||||
| JSE SJ | JSE Limited | 470,543 | 4,418,865 | |||||||
| 8697 JP | Osaka Securities Exchange Co., Ltd. | 3,889 | 17,318,260 | |||||||
| 32,803,704 | ||||||||||
| Holding Company — 9.06% | ||||||||||
| BRK/A | Berkshire Hathaway Inc. — Class A* | 34 | 3,947,570 | |||||||
| GBLS BB | Groupe Bruxelles Lambert S.A. Strip VVPR* | 23,520 | 273 | |||||||
| IEP | Icahn Enterprises LP | 467,319 | 20,094,717 | |||||||
| JS SP | Jardine Strategic Holdings Limited | 60,000 | 1,836,000 | |||||||
| LUK | Leucadia National Corporationˆ | 2,270,231 | 77,414,877 | |||||||
| OCX CN | Onex Corporation | 113,500 | 4,397,838 | |||||||
| 107,691,275 | ||||||||||
| Insurance Carriers and Related Activities — 2.07% | ||||||||||
| MKL | Markel Corporation* | 32,732 | 12,988,385 | |||||||
| 2328 HK | PICC Property & Casualty Co. Ltd. — Class H* | 2,538,000 | 4,318,224 | |||||||
| PWF CN | Power Financial Corporation | 234,000 | 7,215,677 | |||||||
| 24,522,286 | ||||||||||
| Manufactured Brands — 0.90% | ||||||||||
| JAH | Jarden Corporation | 308,543 | 10,647,819 | |||||||
| Merchant Wholesalers, Nondurable Goods — 0.63% | ||||||||||
| NOBL SP | Noble Group Limited | 4,692,000 | 7,525,230 | |||||||
| Mining (except Oil and Gas) — 3.27% | ||||||||||
| AAUKY | Anglo American PLC — ADR | 175,000 | 4,348,750 | |||||||
| FNV CN | Franco-Nevada Corporation | 922,362 | 34,428,982 | |||||||
| 38,777,732 | ||||||||||
| Motion Picture and Sound Recording Industries — 3.17% | ||||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*ˆ | 1,873,460 | 37,656,546 | |||||||
The accompanying notes are an integral part of these financial statements.
100
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Motor Vehicle and Parts Dealers — 5.22% | ||||||||||
| AN | AutoNation, Inc.*ˆ | 761,100 | $ | 27,863,871 | ||||||
| AZO | AutoZone, Inc.* | 55,477 | 16,357,393 | |||||||
| PAG | Penske Automotive Group, Inc.ˆ | 782,530 | 17,794,732 | |||||||
| 62,015,996 | ||||||||||
| Oil and Gas Extraction — 9.12% | ||||||||||
| CNQ | Canadian Natural Resources Ltd. | 651,605 | 27,276,186 | |||||||
| COS CN | Canadian Oil Sands Ltd. | 1,420,008 | 41,024,031 | |||||||
| SU | Suncor Energy, Inc.ˆ | 1,022,062 | 39,962,624 | |||||||
| 108,262,841 | ||||||||||
| Performing Arts, Spectator Sports, and Related Industries — 1.10% | ||||||||||
| LYV | Live Nation Entertainment, Inc.* | 1,140,726 | 13,084,127 | |||||||
| Port and Harbor Operations — 0.02% | ||||||||||
| 3382 HK | Tianjin Port Development Holdings Ltd. | 1,512,000 | 287,567 | |||||||
| Real Estate — 15.18% | ||||||||||
| ALX | Alexander’s, Inc. — REIT | 5,091 | 2,021,127 | |||||||
| 1 HK | Cheung Kong (Holdings) Limited | 1,063,240 | 15,548,879 | |||||||
| ELS | Equity Lifestyle Properties, Inc. | 273,050 | 17,049,242 | |||||||
| FCE/A | Forest City Enterprises, Inc. — Class A*ˆ | 1,802,642 | 33,655,326 | |||||||
| 10 HK | Hang Lung Group Limited | 1,450,000 | 9,186,296 | |||||||
| 12 HK | Henderson Land Development Company Limited | 3,491,260 | 22,499,799 | |||||||
| HHC | The Howard Hughes Corporation* | 741,400 | 48,220,656 | |||||||
| 823 HK | The Link — REIT | 2,200,000 | 7,506,072 | |||||||
| TPL | Texas Pacific Land Trust | 210,598 | 9,554,831 | |||||||
| VNO | Vornado Realty Trust — REITˆ | 105,869 | 9,864,874 | |||||||
| 4 HK | The Wharf Holdings Limited | 740,300 | 5,141,963 | |||||||
| 180,249,065 | ||||||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 6.34% | ||||||||||
| CBOE | CBOE Holdings Inc.ˆ | 1,611,526 | 39,643,540 | |||||||
| ICE | IntercontinentalExchange Inc.*ˆ | 286,211 | 35,693,374 | |||||||
| 75,336,914 | ||||||||||
The accompanying notes are an integral part of these financial statements.
101
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Support Activities for Transportation — 1.87% | ||||||||||
| 995 HK | Anhui Expressway Co. Ltd. — Class H | 1,052,000 | $ | 878,728 | ||||||
| 694 HK | Beijing Capital International Airport Company Limited — Class H* | 27,459,000 | 12,844,335 | |||||||
| 357 HK | Hainan Meilan International Airport Company Limited — Class H | 2,587,720 | 2,607,107 | |||||||
| 548 HK | Shenzhen Expressway Company Limited — Class H | 2,100,000 | 1,192,798 | |||||||
| 107 HK | Sichuan Expressway Co. Limited — Class H | 9,000,000 | 4,649,370 | |||||||
| 22,172,338 | ||||||||||
| Telecommunications — 2.71% | ||||||||||
| DISH | DISH Network Corp. — Class A* | 706,670 | 21,673,569 | |||||||
| SATS | EchoStar Corporation — Class A* | 288,328 | 10,503,789 | |||||||
| 32,177,358 | ||||||||||
| Utilities — 0.14% | ||||||||||
| BIP | Brookfield Infrastructure Partners LPˆ | 65,930 | 1,651,547 | |||||||
| TOTAL COMMON STOCKS (cost $978,710,176) | 1,140,142,699 | |||||||||
| Principal | ||||||||||
| ESCROW NOTES — 0.00% | Amount | |||||||||
| Special Purpose Entity — 0.00% | ||||||||||
| 13199ACT6 | Calpine Corporation (converted from Capline Corp., 8.750%, 07/15/2008)*+ | $ | 200,000 | 0 | ||||||
| 13199ACU3 | Calpine Corporation (converted from Capline Corp., 7.875%, 04/01/2008)*+ | 200,000 | 0 | |||||||
| 13199ACV1 | Calpine Corporation (converted from Capline Corp., 7.625%, 04/15/2050)*+ | 100,000 | 0 | |||||||
| TOTAL ESCROW NOTES (cost $0) | 0 | |||||||||
The accompanying notes are an integral part of these financial statements.
102
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Principal | ||||||||||
| Identifier | CONVERTIBLE BONDS — 0.46% | Amount | Value | |||||||
| Real Estate — 0.46% | ||||||||||
| 345550AK3 | Forest City Enterprises, Inc. | |||||||||
| 3.625%, 10/15/2014 | $ | 4,000,000 | $ | 5,467,500 | ||||||
| TOTAL CONVERTIBLE BONDS (cost $3,226,569 ) | 5,467,500 | |||||||||
| CORPORATE BONDS — 0.00% | ||||||||||
| Credit Intermediation and Related Activities — 0.00% | ||||||||||
| 317928AA7 | FINOVA Group, Inc. | |||||||||
| 7.500%, 11/15/2009, Acquired 10/19/2006-3/29/2007 at $7,902,157 (Default Effective 4/29/2005)*+ | 9,503,880 | 10 | ||||||||
| TOTAL CORPORATE BONDS (cost $7,341,784 ) | 10 | |||||||||
| SHORT-TERM INVESTMENTS — 3.67% | Shares | |||||||||
| Money Market Funds — 3.67% | ||||||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00% b | 43,588,609 | 43,588,609 | |||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $43,588,609 ) | 43,588,609 | |||||||||
| INVESTMENTS PURCHASED WITH | ||||||||||
| THE CASH PROCEEDS FROM | ||||||||||
| SECURITIES LENDING — 15.85% | ||||||||||
| Investment Companies — 15.85% | ||||||||||
| Mount Vernon Securities Lending Trust — Prime Portfolio, 0.20%b | 188,226,101 | 188,226,101 | ||||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $188,226,101) | 188,226,101 | |||||||||
| TOTAL INVESTMENTS — 115.97% (cost $1,221,093,239) | $ | 1,377,424,919 | ||||||||
The accompanying notes are an integral part of these financial statements.
103
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Paradigm Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $180,989,628 at June 30, 2011. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $10 or 0.00% of net assets. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
| ADR — | American Depository Receipt. |
| REIT — | Real Estate Investment Trust. |
The accompanying notes are an integral part of these financial statements.
104
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Medical Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | COMMON STOCKS — 95.01% | Shares | Value | |||||||
| Ambulatory Health Care Services — 0.00% | ||||||||||
| AVXT | AVAX Technologies, Inc.* | 50,000 | $ | 1,450 | ||||||
| Chemical Manufacturing — 4.53% | ||||||||||
| AGEN | Agenus, Inc.*ˆ | 892 | 696 | |||||||
| APHB | Ampliphi Biosciences Corp.* | 1,000 | 225 | |||||||
| LONN VX | Lonza Group AG | 15,000 | 1,173,952 | |||||||
| MRK | Merck & Co., Inc. | 11,000 | 388,190 | |||||||
| MMRF | MMRGlobal Inc.* | 43,000 | 2,021 | |||||||
| 1,565,084 | ||||||||||
| Computer and Electronic Product Manufacturing — 0.01% | ||||||||||
| TGX | Theragenics Corporation* | 2,000 | 3,520 | |||||||
| Pharmaceutical and Biotechnology — 84.48% | ||||||||||
| ABT | Abbott Laboratories | 29,000 | 1,525,980 | |||||||
| ATLN VX | Actelion Ltd. | 14,000 | 689,551 | |||||||
| AEZS | AEterna Zentaris Inc.*ˆ | 102,500 | 225,500 | |||||||
| ALKS | Alkermes, Inc.*ˆ | 32,000 | 595,200 | |||||||
| ARNA | Arena Pharmaceuticals, Inc.*ˆ | 45,000 | 61,200 | |||||||
| AZN | AstraZeneca PLC — ADRˆ | 21,000 | 1,051,470 | |||||||
| ATB CN | Atrium Innovations Inc.*ˆ | 4,884 | 80,265 | |||||||
| BIIB | Biogen Idec, Inc.* | 37,250 | 3,982,770 | |||||||
| BPAX | BioSante Pharmaceuticals, Inc.*ˆ | 13,476 | 37,059 | |||||||
| BMY | Bristol-Myers Squibb Company | 48,000 | 1,390,080 | |||||||
| CLDX | Celldex Therapeutics Inc.*ˆ | 26,294 | 93,344 | |||||||
| CEPH | Cephalon, Inc.*ˆ | 11,000 | 878,900 | |||||||
| 1093 HK | China Pharmaceutical Group Limited | 1,640,000 | 794,531 | |||||||
| CBST | Cubist Pharmaceuticals, Inc.*ˆ | 38,000 | 1,367,620 | |||||||
| DNDN | Dendreon Corporation* | 29,000 | 1,143,760 | |||||||
| LLY | Eli Lilly & Company | 37,000 | 1,388,610 | |||||||
| EPCT | EpiCept Corporation* | 680 | 360 | |||||||
| GSK | GlaxoSmithKline plc — ADRˆ | 37,673 | 1,616,172 | |||||||
| HGSI | Human Genome Sciences, Inc.*ˆ | 21,000 | 515,340 | |||||||
| IMGN | ImmunoGen, Inc.*ˆ | 14,000 | 170,660 | |||||||
| ISIS | Isis Pharmaceuticals, Inc.*ˆ | 29,000 | 265,640 | |||||||
| ISA CN | Isotechnika Pharma Inc.* | 40,000 | 5,806 | |||||||
| JNJ | Johnson & Johnson | 30,000 | 1,995,600 | |||||||
| LIFE | Life Technologies Corporation* | 36,000 | 1,874,520 | |||||||
| MAXY | Maxygen, Inc.ˆ | 39,000 | 213,330 | |||||||
| MYRX | Myrexis Inc.* | 72,000 | 257,760 | |||||||
| COX FP | NicOx SA* | 41,535 | 108,478 | |||||||
| NVS | Novartis AG — ADR | 35,000 | 2,138,850 | |||||||
The accompanying notes are an integral part of these financial statements.
105
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Medical Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Pharmaceutical and Biotechnology (Continued) | ||||||||||
| ONTY | Oncothyreon, Inc.*ˆ | 28,333 | $ | 260,380 | ||||||
| PTIE | Pain Therapeutics, Inc. | 38,000 | 147,060 | |||||||
| PFE | Pfizer, Inc. | 56,000 | 1,153,600 | |||||||
| PGNX | Progenics Pharmaceuticals, Inc.*ˆ | 65,200 | 468,136 | |||||||
| SNY | Sanofi-Aventis — ADRˆ | 36,000 | 1,446,120 | |||||||
| SCR | Simcere Pharmaceutical Group — ADR*ˆ | 58,000 | 566,660 | |||||||
| TELK | Telik, Inc.*ˆ | 116,000 | 90,480 | |||||||
| VICL | Vical Incorporated*ˆ | 82,500 | 339,900 | |||||||
| VPHM | ViroPharma Incorporated*ˆ | 15,000 | 277,500 | |||||||
| 29,218,192 | ||||||||||
| Pharmaceutical and Medicine Manufacturing — 1.64% | ||||||||||
| 4508 JP | Mitsubishi Tanabe Pharma Corporation | 34,000 | 568,039 | |||||||
| Professional, Scientific, and Technical Services — 4.35% | ||||||||||
| AFFX | Affymetrix, Inc.* | 134,000 | 1,062,620 | |||||||
| AMRI | Albany Molecular Research, Inc.* | 56,000 | 269,360 | |||||||
| CDXS | Codexis, Inc.*ˆ | 5,611 | 54,034 | |||||||
| PACB | Pacific Biosciences of California Inc.* | 10,000 | 117,000 | |||||||
| 1,503,014 | ||||||||||
| TOTAL COMMON STOCKS (cost $28,511,882 ) | 32,859,299 | |||||||||
| Principal | ||||||||||
| ESCROW NOTES — 0.00% | Amount | |||||||||
| Special Purpose Entity — 0.00% | ||||||||||
| 053ESC992 | Avigen Inc. Escrow*+ | $ | 51,000 | 0 | ||||||
| TOTAL ESCROW NOTES (cost $0 ) | 0 | |||||||||
| RIGHTS — 0.12% | Shares | |||||||||
| Funds, Trusts, and Other Financial Vehicles — 0.01% | ||||||||||
| LGNYZ | Ligand Pharmaceuticals Incorporated General Contingent Value Right* | 44,000 | 2,200 | |||||||
| LGNXZ | Ligand Pharmaceuticals Incorporated Glucagon Contingent Value Right* | 44,000 | 48 | |||||||
| LGNDZ | Ligand Pharmaceuticals Incorporated Roche Contingent Value Right | 44,000 | 1,672 | |||||||
The accompanying notes are an integral part of these financial statements.
106
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Medical Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Funds, Trusts, and Other Financial Vehicles (Continued) | ||||||||||
| LGNZZ | Ligand Pharmaceuticals Incorporated TR Beta Contingent Value Right* | 44,000 | $ | 44 | ||||||
| 3,964 | ||||||||||
| Pharmaceutical and Biotechnology — 0.11% | ||||||||||
| GCVRZ | Sanofi Contingent Value Right* | 15,538 | 37,447 | |||||||
| TOTAL RIGHTS (cost $0 ) | 41,411 | |||||||||
| SHORT-TERM INVESTMENTS — 4.89% | ||||||||||
| Money Market Funds — 4.89% | ||||||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00%b | 1,688,687 | 1,688,687 | |||||||
| FAIXX | First American Prime Obligations Fund — Class Y, 0.00%b | 4,434 | 4,434 | |||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $1,693,121) | 1,693,121 | |||||||||
| INVESTMENTS PURCHASED WITH THE | ||||||||||
| CASH PROCEEDS FROM SECURITIES | ||||||||||
| LENDING — 25.66% | ||||||||||
| Investment Companies — 25.66% | ||||||||||
| Mount Vernon Securities Lending Trust — | ||||||||||
| Prime Portfolio, 0.26%b | 8,874,018 | 8,874,018 | ||||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $8,874,018) | 8,874,018 | |||||||||
| TOTAL INVESTMENTS — 125.68% (cost $39,079,021) | $ | 43,467,849 | ||||||||
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $8,409,612 at June 30, 2011. |
| + — | Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
| ADR — | American Depository Receipt. |
The accompanying notes are an integral part of these financial statements.
107
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | COMMON STOCKS — 99.38% | Shares | Value | |||||||
| Air Transportation — 2.67% | ||||||||||
| 670 HK | China Eastern Airlines Corporation Limited — Class H* | 1,139,000 | $ | 506,437 | ||||||
| 1055 HK | China Southern Airlines Company Limited — Class H* | 4,664,000 | 2,505,303 | |||||||
| 3,011,740 | ||||||||||
| Asset Management — 12.84% | ||||||||||
| BNBMF | BAM Investments Ltd.* | 125,540 | 2,160,780 | |||||||
| CNS | Cohen & Steers, Inc.ˆ | 83,623 | 2,772,102 | |||||||
| OCX CN | Onex Corporation | 24,860 | 963,262 | |||||||
| PZN | Pzena Investment Management, Inc. — Class A | 96,360 | 547,325 | |||||||
| SII CN | Sprott, Inc. | 1,680 | 12,873 | |||||||
| URB/A CN | Urbana Corporation — Class A* | 481,071 | 648,445 | |||||||
| GROW | US Global Investors, Inc. — Class Aˆ | 73,940 | 532,368 | |||||||
| 806 HK | Value Partners Group Limited | 2,330,000 | 1,994,140 | |||||||
| WSDT | WisdomTree Investments, Inc.* | 771,080 | 4,888,647 | |||||||
| 14,519,942 | ||||||||||
| Commercial Banking — 1.50% | ||||||||||
| BLBD LI | BLOM Bank s.a.l. — GDR | 199,240 | 1,693,540 | |||||||
| Credit Intermediation and Related Activities — 0.20% | ||||||||||
| FBOD | First Bank of Delaware | 80,025 | 162,451 | |||||||
| PFBCD | Preferred Bank of Los Angeles* | 9,361 | 67,396 | |||||||
| 229,847 | ||||||||||
| Defense — 1.76% | ||||||||||
| CACI | CACI International, Inc. — Class A*ˆ | 17,988 | 1,134,683 | |||||||
| MANT | ManTech International Corporation — Class Aˆ | 19,275 | 856,196 | |||||||
| 1,990,879 | ||||||||||
| Gaming — 1.78% | ||||||||||
| 200 HK | Melco International Development Limited | 1,999,000 | 2,016,545 | |||||||
| Global Exchanges — 5.34% | ||||||||||
| JSE SJ | JSE Limited | 352,000 | 3,305,629 | |||||||
| 8697 JP | Osaka Securities Exchange Co., Ltd. | 613 | 2,729,775 | |||||||
| 6,035,404 | ||||||||||
| Holding Company — 8.85% | ||||||||||
| IEP | Icahn Enterprises LP | 232,498 | 9,997,414 | |||||||
The accompanying notes are an integral part of these financial statements.
108
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Insurance Carriers and Related Activities — 2.40% | ||||||||||
| GLRE | Greenlight Capital Re, Ltd. — Class A*ˆ | 103,305 | $ | 2,715,888 | ||||||
| Manufactured Brands — 4.16% | ||||||||||
| JAH | Jarden Corporation | 136,310 | 4,704,058 | |||||||
| Mining (except Oil and Gas) — 7.37% | ||||||||||
| FNV CN | Franco-Nevada Corporation | 144,480 | 5,393,001 | |||||||
| IMN CN | Inmet Mining Corporation | 40,790 | 2,935,171 | |||||||
| 8,328,172 | ||||||||||
| Motion Picture and Sound Recording Industries — 2.03% | ||||||||||
| DWA | DreamWorks Animation SKG, Inc. — Class A*ˆ | 114,144 | 2,294,294 | |||||||
| Motor Vehicle and Parts Dealers — 2.69% | ||||||||||
| PAG | Penske Automotive Group, Inc.ˆ | 133,520 | 3,036,245 | |||||||
| Non-Store Retailers — 3.65% | ||||||||||
| RBA | Ritchie Bros. Auctioneers, Incorporatedˆ | 15,077 | 414,467 | |||||||
| BID | Sotheby’sˆ | 85,249 | 3,708,331 | |||||||
| 4,122,798 | ||||||||||
| Oil and Gas Extraction — 1.82% | ||||||||||
| SEMUF | Siem Industries Inc.* | 29,342 | 2,053,940 | |||||||
| Other Exchanges — 0.81% | ||||||||||
| NZX NZ | NZX Ltd. | 462,420 | 919,476 | |||||||
| Performing Arts, Spectator Sports, and Related Industries — 2.21% | ||||||||||
| LYV | Live Nation Entertainment, Inc.* | 140,567 | 1,612,303 | |||||||
| MSG | The Madison Square Garden Company — Class A* | 32,250 | 887,843 | |||||||
| 2,500,146 | ||||||||||
| Pharmaceutical and Biotechnology — 0.47% | ||||||||||
| 1093 HK | China Pharmaceutical Group Limited | 1,105,000 | 535,339 | |||||||
| Pipeline Transportation — 0.94% | ||||||||||
| 135 HK | Kunlun Energy Co., Ltd. | 618,000 | 1,062,601 | |||||||
| SUG | Southern Union Company | 1 | 20 | |||||||
| 1,062,621 | ||||||||||
| Publishing Industries (except Internet) — 0.78% | ||||||||||
| ROVI | Rovi Corporation*ˆ | 13,510 | 774,934 | |||||||
| VALU | Value Line, Inc.ˆ | 7,615 | 102,117 | |||||||
| 877,051 | ||||||||||
The accompanying notes are an integral part of these financial statements.
109
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Rail Transportation — 0.02% | ||||||||||
| 525 HK | Guangshen Railway Company Limited — Class H | 58,000 | $ | 24,298 | ||||||
| Real Estate — 16.26% | ||||||||||
| ALX | Alexander’s, Inc. | 6,110 | 2,425,670 | |||||||
| BLMC | Biloxi Marsh Lands Corporation | 100 | 1,155 | |||||||
| HHC | The Howard Hughes Corporation*ˆ | 50,343 | 3,274,308 | |||||||
| KEWL | Keweenaw Land Association Ltd.* | 380 | 34,960 | |||||||
| 823 HK | The Link REIT | 626,000 | 2,135,819 | |||||||
| PVR | Penn Virginia Resources Partners, L.P. | 39,821 | 1,072,778 | |||||||
| TPL | Texas Pacific Land Trustˆ | 180,700 | 8,198,359 | |||||||
| FUR | Winthrop Realty Trust | 103,573 | 1,236,662 | |||||||
| 18,379,711 | ||||||||||
| Rental and Leasing Services — 0.04% | ||||||||||
| CDCO | Comdisco Holding Company, Inc. | 7,560 | 47,099 | |||||||
| Restaurants — 0.59% | ||||||||||
| WEN | Wendy’s/Arby’s Group, Inc. — Class A | 130,326 | 660,753 | |||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 4.23% | ||||||||||
| CBOE | CBOE Holdings Inc.ˆ | 122,190 | 3,005,874 | |||||||
| JEF | Jefferies Group, Inc.ˆ | 86,890 | 1,772,556 | |||||||
| RHJI BB | RHJ International* | 800 | 5,766 | |||||||
| 4,784,196 | ||||||||||
| Support Activities for Transportation — 9.42% | ||||||||||
| 694 HK | Beijing Capital International Airport Company Limited — Class H | 5,199,000 | 2,431,906 | |||||||
| 357 HK | Hainan Meilan International Airport Company Limited — Class H | 3,095,000 | 3,118,187 | |||||||
| 548 HK | Shenzhen Expressway Company Limited — Class H | 539,000 | 306,152 | |||||||
| 107 HK | Sichuan Expressway Co. Limited — Class H | 9,282,000 | 4,795,050 | |||||||
| 10,651,295 | ||||||||||
The accompanying notes are an integral part of these financial statements.
110
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Telecommunications — 0.35% | ||||||||||
| CIBY | CIBL, Inc. | 18 | $ | 9,630 | ||||||
| SATS | EchoStar Corporation — Class A* | 9,250 | 336,977 | |||||||
| LICT | Lynch Interactive Corporation* | 16 | 35,120 | |||||||
| SNSH | Sunshine PCS Corporation — Class A* | 208 | 7,135 | |||||||
| 388,862 | ||||||||||
| Utilities — 0.74% | ||||||||||
| PICO | PICO Holdings, Inc.* | 28,851 | 836,679 | |||||||
| Waste Management and Remediation Services — 3.46% | ||||||||||
| CVA | Covanta Holding Corporation | 213,415 | 3,519,213 | |||||||
| SWSH | Swisher Hygiene, Inc.*ˆ | 70,530 | 397,084 | |||||||
| 3,916,297 | ||||||||||
| TOTAL COMMON STOCKS (cost $93,710,667) | 112,334,529 | |||||||||
| Principal | ||||||||||
| CORPORATE BONDS — 0.00% | Amount | |||||||||
| Credit Intermediation and Related Activities — 0.00% | ||||||||||
| 317928AA7 | FINOVA Group, Inc. | |||||||||
| 7.500%, 11/15/2009, Acquired 10/19/2006-5/17/2007 at $741,082 (Default Effective 4/29/2005)*+ | $ | 2,783,965 | 3 | |||||||
| TOTAL CORPORATE BONDS (cost $1,232,811 ) | 3 | |||||||||
| RIGHTS — 0.40% | Shares | |||||||||
| Rental and Leasing Services — 0.40% | ||||||||||
| CDCOR | Comdisco Holding Company, Inc. | |||||||||
| Expiration Date: 12/31/2050 | ||||||||||
| Strike Price: $1.00# | 5,634,807 | 450,785 | ||||||||
| TOTAL RIGHTS (cost $1,296,169 ) | 450,785 | |||||||||
The accompanying notes are an integral part of these financial statements.
111
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Small Cap Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | SHORT-TERM INVESTMENTS — 0.71% | Shares | Value | |||||||
| Money Market Funds — 0.71% | ||||||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00%b | 802,423 | $ | 802,423 | ||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $802,423 ) | 802,423 | |||||||||
| INVESTMENTS PURCHASED WITH | ||||||||||
| THE CASH PROCEEDS FROM | ||||||||||
| SECURITIES LENDING — 16.78% | ||||||||||
| Investment Companies — 16.78% | ||||||||||
| Mount Vernon Securities Lending Trust — Prime Portfolio, 0.20%b | 18,973,978 | 18,973,978 | ||||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $18,973,978) | 18,973,978 | |||||||||
| TOTAL INVESTMENTS — 117.27% (cost $116,016,048) | $ | 132,561,718 | ||||||||
Percentages are stated as a percent of net assets.
| * | — Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $18,371,855 at June 30, 2011. |
| + | — Security is considered illiquid and was fair valued. The aggregate value of such securities is $3 or 0.00% of net assets. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
| # | — Contingent value right (contingent upon profitability of company). |
GDR — Global Depository Receipt.
REIT — Real Estate Investment Trust.
The accompanying notes are an integral part of these financial statements.
112
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | COMMON STOCKS — 99.09% | Shares | Value | |||||||
| Asset Management — 28.76% | ||||||||||
| BNBMF | BAM Investments Ltd.* | 31,090 | $ | 535,117 | ||||||
| BX | The Blackstone Group LPˆ | 68,399 | 1,132,688 | |||||||
| BAM | Brookfield Asset Management Inc. — Class A | 71,540 | 2,372,982 | |||||||
| CNS | Cohen & Steers, Inc.ˆ | 45,822 | 1,518,999 | |||||||
| EV | Eaton Vance Corp.ˆ | 17,500 | 529,025 | |||||||
| JZCP LN | JZ Capital Partners Ltd. | 44,440 | 282,444 | |||||||
| OCX CN | Onex Corporation | 25,390 | 983,798 | |||||||
| RCP LN | RIT Capital Partners plc* | 14,570 | 303,059 | |||||||
| SII CN | Sprott, Inc. | 43,155 | 330,671 | |||||||
| TROW | T. Rowe Price Group, Inc. | 3,490 | 210,587 | |||||||
| URB/A CN | Urbana Corporation — Class A* | 356,004 | 479,864 | |||||||
| 806 HK | Value Partners Group Limited | 1,712,000 | 1,465,222 | |||||||
| WSDT | WisdomTree Investments, Inc.* | 679,007 | 4,304,904 | |||||||
| 14,449,360 | ||||||||||
| Credit Intermediation and Related Activities — 0.44% | ||||||||||
| CATY | Cathay General Bancorpˆ | 3,237 | 53,054 | |||||||
| CLFC | Center Financial Corporation* | 5,454 | 34,633 | |||||||
| EWBC | East West Bancorp, Inc. | 3,204 | 64,753 | |||||||
| NARA | Nara Bancorp, Inc.* | 6,164 | 50,113 | |||||||
| UCBHQ | UCBH Holdings, Inc.* | 6,803 | 75 | |||||||
| WIBC | Wilshire Bancorp, Inc.*ˆ | 6,341 | 18,643 | |||||||
| 221,271 | ||||||||||
| Data Processor — 5.32% | ||||||||||
| FISV | Fiserv, Inc.* | 3,606 | 225,844 | |||||||
| MA | Mastercard, Inc. — Class A | 4,555 | 1,372,603 | |||||||
| VRSK | Verisk Analytics, Inc. — Class A* | 5,117 | 177,151 | |||||||
| V | Visa, Inc. — Class Aˆ | 10,650 | 897,369 | |||||||
| 2,672,967 | ||||||||||
| European Exchanges — 1.59% | ||||||||||
| DB1 GR | Deutsche Boerse AG | 10,508 | 798,485 | |||||||
| Gaming — 3.17% | ||||||||||
| LVS | Las Vegas Sands Corp.* | 37,790 | 1,595,116 | |||||||
The accompanying notes are an integral part of these financial statements.
113
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Global Exchanges — 13.28% | ||||||||||
| 388 HK | Hong Kong Exchanges & Clearing Limited | 133,350 | $ | 2,794,940 | ||||||
| JSE SJ | JSE Limited | 124,500 | 1,169,178 | |||||||
| 8697 JP | Osaka Securities Exchange Co., Ltd. | 150 | 667,971 | |||||||
| SGX SP | Singapore Exchange Limited | 332,727 | 2,039,758 | |||||||
| 6,671,847 | ||||||||||
| Holding Company — 3.88% | ||||||||||
| BRK/A | Berkshire Hathaway Inc. — Class A*ˆ | 9 | 1,044,945 | |||||||
| IEP | Icahn Enterprises LPˆ | 21,100 | 907,300 | |||||||
| 1,952,245 | ||||||||||
| Insurance Carriers and Related Activities — 4.40% | ||||||||||
| 2628 HK | China Life Insurance Co., Limited — Class H | 114,000 | 389,683 | |||||||
| GLRE | Greenlight Capital Re, Ltd. — Class A* | 300 | 7,887 | |||||||
| MKL | Markel Corporation* | 523 | 207,532 | |||||||
| 2318 HK | Ping An Insurance Group Company of China Limited — Class H | 60,000 | 619,530 | |||||||
| PWF CN | Power Financial Corporation | 32,000 | 986,759 | |||||||
| 2,211,391 | ||||||||||
| Mining (except Oil and Gas) — 7.66% | ||||||||||
| FNV CN | Franco-Nevada Corporation | 103,105 | 3,848,598 | |||||||
| Non-Store Retailers — 3.66% | ||||||||||
| BID | Sotheby’sˆ | 42,278 | 1,839,093 | |||||||
| Other Exchanges — 1.27% | ||||||||||
| FTIS LI | Financial Technologies (India) Ltd. — GDR | 102,980 | 279,488 | |||||||
| IMAREX NO | IMAREX ASA* | 1,850 | 19,717 | |||||||
| NZX NZ | NZX Ltd. | 170,954 | 339,925 | |||||||
| 639,130 | ||||||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 22.69% | ||||||||||
| CBOE | CBOE Holdings Inc.ˆ | 164,971 | 4,058,287 | |||||||
| CME | CME Group, Inc. | 7,628 | 2,224,249 | |||||||
| ICE | IntercontinentalExchange Inc.* | 26,747 | 3,335,618 | |||||||
| IVZ | Invesco Limited | 16,415 | 384,111 | |||||||
| JEF | Jefferies Group, Inc.ˆ | 54,730 | 1,116,492 | |||||||
| LSE LN | London Stock Exchange Group plc | 16,538 | 281,619 | |||||||
| 11,400,376 | ||||||||||
The accompanying notes are an integral part of these financial statements.
114
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Market Opportunities Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Shares | Value | ||||||||
| Support Activities for Transportation — 0.12% | ||||||||||
| 107 HK | Sichuan Expressway Co. Limited — Class H | 114,000 | $ | 58,892 | ||||||
| Telecommunications — 0.03% | ||||||||||
| IRDM | Iridium Communications, Inc.*ˆ | 1,672 | 14,463 | |||||||
| U.S. Equity Exchanges — 2.68% | ||||||||||
| NDAQ | The NASDAQ OMX Group, Inc.* | 11,800 | 298,540 | |||||||
| NYX | NYSE Euronext | 30,535 | 1,046,434 | |||||||
| 1,344,974 | ||||||||||
| Utilities — 0.14% | ||||||||||
| BIP | Brookfield Infrastructure Partners LPˆ | 2,816 | 70,541 | |||||||
| TOTAL COMMON STOCKS (cost $41,567,168 ) | 49,788,749 | |||||||||
| SHORT-TERM INVESTMENTS — 1.08% | ||||||||||
| Money Market Funds — 1.08% | ||||||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00%b | 542,126 | 542,126 | |||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $542,126 ) | 542,126 | |||||||||
| INVESTMENTS PURCHASED WITH | ||||||||||
| THE CASH PROCEEDS FROM | ||||||||||
| SECURITIES LENDING — 20.46% | ||||||||||
| Investment Companies — 20.46% | ||||||||||
| Mount Vernon Securities Lending Trust — | ||||||||||
| Prime Portfolio, 0.20%b | 10,281,357 | 10,281,357 | ||||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $10,281,357) | 10,281,357 | |||||||||
| TOTAL INVESTMENTS — 120.63% (cost $52,390,651) | $ | 60,612,232 | ||||||||
Percentages are stated as a percent of net assets.
| * — | Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $10,018,029 at June 30, 2011. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
| GDR — | Global Depository Receipt. |
The accompanying notes are an integral part of these financial statements.
115
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Identifier | COMMON STOCKS — 11.93% | Shares | Value | |||||||
| Administrative and Support Services — 0.26% | ||||||||||
| TRIT | Tri-Tech Holding Inc.*ˆ | 6,000 | $ | 48,180 | ||||||
| Machinery Manufacturing — 3.03% | ||||||||||
| AMN | Ameron International Corporation | 5,246 | 344,557 | |||||||
| ARF CN | Armtec Infrastructure, Inc. | 12,650 | 45,120 | |||||||
| ERII | Energy Recovery Inc.*ˆ | 51,108 | 167,123 | |||||||
| 556,800 | ||||||||||
| Professional, Scientific, and Technical Services — 2.35% | ||||||||||
| TTEK | Tetra Tech, Inc.*ˆ | 19,194 | 431,865 | |||||||
| Utilities — 6.29% | ||||||||||
| BRC-U CN | Brookfield Renewable Power Fund | 11,250 | 268,404 | |||||||
| CDZI | Cadiz Inc.*ˆ | 40,000 | 434,400 | |||||||
| CWCO | Consolidated Water Co., Ltd.ˆ | 27,875 | 258,959 | |||||||
| PNH MK | Puncak Niaga Holdings Berhad — EIS | 18,972 | 3,299 | |||||||
| UU/ LN | United Utilities Group PLC | 20,000 | 192,274 | |||||||
| 1,157,336 | ||||||||||
| TOTAL COMMON STOCKS (cost $2,470,037) | 2,194,181 | |||||||||
| Principal | ||||||||||
| CONVERTIBLE BONDS — 17.07% | Amount | |||||||||
| Holding Company — 7.16% | ||||||||||
| 451102AB3 | Icahn Enterprises LP | |||||||||
| 4.000%, 08/15/2013# | $ | 1,370,000 | 1,316,981 | |||||||
| Oil and Gas Extraction — 9.91% | ||||||||||
| 165167CB1 | Chesapeake Energy Corp. | |||||||||
| 2.250%, 12/15/2038ˆ | 2,000,000 | 1,822,500 | ||||||||
| TOTAL CONVERTIBLE BONDS (cost $2,888,645) | 3,139,481 | |||||||||
| CORPORATE BONDS — 28.06% | ||||||||||
| Fabricated Metal Product Manufacturing — 11.57% | ||||||||||
| 624758AB4 | Mueller Water Products, Inc. | |||||||||
| 7.375%, 06/01/2017# | 2,250,000 | 2,126,250 | ||||||||
The accompanying notes are an integral part of these financial statements.
116
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Principal | ||||||||||
| Identifier | Amount | Value | ||||||||
| Utilities — 16.49% | ||||||||||
| 7595554 | Veolia Environnement SA | |||||||||
| 4.875%, 05/28/2013# | $ | 2,000,000 | $ | 3,032,228 | ||||||
| TOTAL CORPORATE BONDS (cost $5,012,826 ) | 5,158,478 | |||||||||
| WARRANTS — 0.04% | Shares | |||||||||
| Utilities — 0.04% | ||||||||||
| CHC/WS | China Hydroelectric Corporation Expiration Date: 1/25/2014 Strike Price: $15.00* | 40,000 | 6,400 | |||||||
| TOTAL WARRANTS (cost $48,000 ) | 6,400 | |||||||||
| SHORT-TERM INVESTMENTS — 11.62% | ||||||||||
| Money Market Funds — 11.62% | ||||||||||
| FGVXX | First American Government Obligations Fund — Class Y, 0.00%#b | 620,172 | 620,172 | |||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00%#b | 620,575 | 620,575 | |||||||
| FAIXX | First American Prime Obligations Fund — Class Y, 0.00%#b | 620,437 | 620,437 | |||||||
| FOCXX | First American Treasury Obligations Fund — Class Y, 0.00%#b | 275,691 | 275,691 | |||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $2,136,875) | 2,136,875 | |||||||||
The accompanying notes are an integral part of these financial statements.
117
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| INVESTMENTS PURCHASED WITH THE | ||||||||||
| CASH PROCEEDS FROM | ||||||||||
| Identifier | SECURITIES LENDING — 13.73% | Shares | Value | |||||||
| Investment Companies — 13.73% | ||||||||||
| Mount Vernon Securities Lending Trust — Prime Portfolio, 0.20%b | 2,525,320 | $ | 2,525,320 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $2,525,320) | 2,525,320 | |||||||||
| TOTAL INVESTMENTS — 82.45% (cost $15,081,703) | $ | 15,160,735 | ||||||||
Percentages are stated as a percent of net assets.
| EIS — | Enhanced Income Security. This exchange-traded security is composed of both an issuer’s common shares and its subordinated notes. |
| * — | Non-income producing security. |
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $2,385,886 at June 30, 2011. |
| # — | All or a portion of the shares have been committed as collateral for written option contracts. |
b — The rate quoted is the annualized seven-day yield as of June 30, 2011.
The accompanying notes are an integral part of these financial statements.
118
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Principal | ||||||||||
| Identifier | CONVERTIBLE BONDS — 24.63% | Amount | Value | |||||||
| Computer and Electronic Product Manufacturing — 0.60% | ||||||||||
| 502413AW7 | L-3 Communications Holdings, Inc. 3.000%, 08/01/2035 | $ | 100,000 | $ | 102,375 | |||||
| Holding Company — 8.31% | ||||||||||
| 451102AB3 | Icahn Enterprises LP 4.000%, 08/15/2013 | 1,480,000 | 1,422,724 | |||||||
| Oil and Gas Extraction — 5.26% | ||||||||||
| Chesapeake Energy Corp. | ||||||||||
| 165167BW6 | 2.750%, 11/15/2035# | 100,000 | 111,125 | |||||||
| 165167CB1 | 2.250%, 12/15/2038# | 865,000 | 788,231 | |||||||
| 899,356 | ||||||||||
| Professional, Scientific, and Technical Services — 0.62% | ||||||||||
| 159864AB3 | Charles River Laboratories International, Inc. 2.250%, 06/15/2013 | 100,000 | 105,375 | |||||||
| Real Estate — 3.36% | ||||||||||
| 029169AA7 | American Real Estate 4.000%, 08/15/2013, Acquired 6/24/2011 at $48,130#* | 50,000 | 48,065 | |||||||
| 10112RAK0 | Boston Properties LP 2.875%, 02/15/2037# | 100,000 | 100,750 | |||||||
| 345550AH0 | Forest City Enterprises, Inc. 3.625%, 10/15/2011# | 425,000 | 426,742 | |||||||
| 575,557 | ||||||||||
| U.S. Equity Exchanges — 6.48% | ||||||||||
| 631103AA6 | The NASDAQ OMX Group, Inc. 2.500%, 08/15/2013ˆ# | 1,100,000 | 1,109,625 | |||||||
| TOTAL CONVERTIBLE BONDS (cost $4,101,807 ) | 4,215,012 | |||||||||
The accompanying notes are an integral part of these financial statements.
119
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Principal | ||||||||||
| Identifier | CORPORATE BONDS — 44.79% | Amount | Value | |||||||
| Administrative and Support Services — 2.01% | ||||||||||
| Corrections Corp. of America | ||||||||||
| 22025YAJ9 | 6.750%, 01/31/2014# | $ | 100,000 | $ | 102,500 | |||||
| 22025YAK6 | 7.750%, 06/01/2017# | 220,000 | 240,625 | |||||||
| 343,125 | ||||||||||
| Ambulatory Health Care Services — 4.75% | ||||||||||
| 23918KAL2 | Davita, Inc. 6.375%, 11/01/2018# | 800,000 | 812,000 | |||||||
| Amusement, Gambling, and Recreation Industries — 5.10% | ||||||||||
| 707569AL3 | Penn National Gaming, Inc. 6.750%, 03/01/2015# | 850,000 | 873,375 | |||||||
| Chemical Manufacturing — 1.50% | ||||||||||
| 785583AC9 | Sabine Pass LNG LP 7.250%, 11/30/2013ˆ | 250,000 | 257,500 | |||||||
| Mining (except Oil and Gas) — 11.18% | ||||||||||
| 20854PAD1 | Consol Energy, Inc. 8.000%, 04/01/2017# | 1,500,000 | 1,642,500 | |||||||
| 704549AH7 | Peabody Energy Corp. 6.500%, 09/15/2020 | 250,000 | 270,000 | |||||||
| 1,912,500 | ||||||||||
| Oil and Gas Extraction — 6.52% | ||||||||||
| Harvest Operations Corp. | ||||||||||
| 41754WAE1 | 7.250%, 09/30/2013# | 200,000 | 213,386 | |||||||
| 41754WAJ0 | 7.500%, 05/31/2015# | 830,000 | 902,333 | |||||||
| 1,115,719 | ||||||||||
| Real Estate — 6.36% | ||||||||||
| 779273AF8 | Rouse Co. 7.200%, 09/15/2012 | 273,000 | 285,626 | |||||||
| The Rouse Company LP | ||||||||||
| U77928AA4 | 6.750%, 05/01/2013 | 200,000 | 207,750 | |||||||
| 779273AG6 | 5.375%, 11/26/2013 | 590,000 | 595,163 | |||||||
| 1,088,539 | ||||||||||
The accompanying notes are an integral part of these financial statements.
120
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Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| Principal | ||||||||||
| Identifier | Amount | Value | ||||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 0.44% | ||||||||||
| 52107QAC9 | Lazard Group LLC 7.125%, 05/15/2015 | $ | 67,000 | $ | 75,453 | |||||
| Telecommunications — 0.59% | ||||||||||
| 27876GAQ1 | Echostar DBS Corp. 6.375%, 10/01/2011 | 100,000 | 101,125 | |||||||
| Utilities — 6.34% | ||||||||||
| 13134YAD9 | Calpine Construction Finance Company, L.P. 8.000%, 06/01/2016, Acquired 10/25/2010 through 6/8/2011 at $1,074,857ˆ#* | 1,000,000 | 1,085,000 | |||||||
| TOTAL CORPORATE BONDS (cost $7,567,525) | 7,664,336 | |||||||||
| MUNICIPAL BONDS — 8.79% | ||||||||||
| Air Transportation — 8.79% | ||||||||||
| Branson Missouri Regional Airport Transportation Development District | ||||||||||
| 105459AB7 | 6.000%, 07/01/2025# | 2,000,000 | 860,000 | |||||||
| 105459AC5 | 6.000%, 07/01/2037# | 1,500,000 | 645,000 | |||||||
| TOTAL MUNICIPAL BONDS (cost $1,585,183 ) | 1,505,000 | |||||||||
| SHORT-TERM INVESTMENTS — 7.31% | Shares | Value | ||||||||
| Money Market Funds — 7.31% | ||||||||||
| FVGXX | First American Government Obligations Fund — Class Y, 0.00%#b | 10,277 | 10,277 | |||||||
| FIUXX | First American Prime Obligations Fund — Class I, 0.00%#b | 650,137 | 650,137 | |||||||
| FAIXX | First American Prime Obligations Fund — Class Y, 0.00%#b | 589,815 | 589,815 | |||||||
| TOTAL SHORT-TERM INVESTMENTS (cost $1,250,229) | 1,250,229 | |||||||||
The accompanying notes are an integral part of these financial statements.
121
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Investments — June 30, 2011 (Unaudited) — (Continued)
| INVESTMENTS PURCHASED WITH THE | ||||||||||
| CASH PROCEEDS FROM SECURITIES | ||||||||||
| Identifier | LENDING — 14.50% | Shares | ||||||||
| Investment Companies — 14.50% | ||||||||||
| Mount Vernon Securities Lending Trust — | ||||||||||
| Prime Portfolio, 0.20%b | 2,481,435 | $ | 2,481,435 | |||||||
| TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS FROM SECURITIES LENDING (cost $2,481,435) | 2,481,435 | |||||||||
| TOTAL INVESTMENTS — 100.02% (cost $16,986,179) | $ | 17,116,012 | ||||||||
Percentages are stated as a percent of net assets.
| ˆ — | This security or a portion of this security was out on loan at June 30, 2011. Total loaned securities had a market value of $2,434,401 at June 30, 2011. |
| # — | All or a portion of the shares have been committed as collateral for written option contracts. |
| b — | The rate quoted is the annualized seven-day yield as of June 30, 2011. |
| * — | Restricted Security restricted to institutional investors (144A Securities). |
The accompanying notes are an integral part of these financial statements.
122
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The Water Infrastructure Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited)
| Identifier | PUT OPTIONS WRITTEN | Contracts | Value | |||||||
| Administrative and Support Services | ||||||||||
| ACM 110917P00025000 | Aecom Technology Corp. | |||||||||
| Expiration: September 2011, Exercise Price: $25.00 | 260 | $ | 13,000 | |||||||
| Chemical Manufacturing | ||||||||||
| CCC 110716P00012500 | Calgon Carbon Corporation | |||||||||
| Expiration: July 2011, Exercise Price: $12.50 | 500 | 3,750 | ||||||||
| NLC 110917P00025000 | Nalco Holding Co. | |||||||||
| Expiration: September 2011, Exercise Price: $25.00 | 200 | 9,500 | ||||||||
| 13,250 | ||||||||||
| Computer and Electronic Product Manufacturing | ||||||||||
| DHR 120121P00035000 | Danaher Corporation | |||||||||
| Expiration: January 2012, Exercise Price: $35.00 | 40 | 1,400 | ||||||||
| DHR 120121P00045000 | Danaher Corporation | |||||||||
| Expiration: January 2012, Exercise Price: $45.00 | 145 | 18,850 | ||||||||
| 20,250 | ||||||||||
| Fabricated Metal Product Manufacturing | ||||||||||
| INSU 110917P00022500 | Insituform Technologies, Inc. — Class A | |||||||||
| Expiration: September 2011, Exercise Price: $22.50 | 100 | 28,300 | ||||||||
| NWPX 110917P00020000 | Northwest Pipe Company | |||||||||
| Expiration: September 2011, Exercise Price: $20.00 | 30 | 900 | ||||||||
| NWPX 110917P00022500 | Northwest Pipe Company | |||||||||
| Expiration: September 2011, Exercise Price: $22.50 | 20 | 1,250 | ||||||||
| 30,450 | ||||||||||
The accompanying notes are an integral part of these financial statements.
123
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Funds, Trusts, and Other Financial Vehicles | ||||||||||
| PHO 110917P00019000 | PowerShares Water Resources ETF | |||||||||
| Expiration: September 2011, Exercise Price: $19.00 | 600 | $ | 36,000 | |||||||
| PHO 111217P00018000 | PowerShares Water Resources ETF | |||||||||
| Expiration: December 2011, Exercise Price: $18.00 | 175 | 12,688 | ||||||||
| 48,688 | ||||||||||
| Machinery Manufacturing | ||||||||||
| AMN 110917P00065000 | Ameron International Corporation | |||||||||
| Expiration: September 2011, Exercise Price: $65.00 | 96 | 36,960 | ||||||||
| ESE 110917P00035000 | ESCO Technologies, Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $35.00 | 200 | 31,500 | ||||||||
| ITT 110716P00050000 | ITT Corporation | |||||||||
| Expiration: July 2011, Exercise Price: $50.00 | 145 | 725 | ||||||||
| LNN 110917P00060000 | Lindsay Corporation | |||||||||
| Expiration: September 2011, Exercise Price: $60.00 | 200 | 40,999 | ||||||||
| PLL 110917P00050000 | Pall Corporation | |||||||||
| Expiration: September 2011, Exercise Price: $50.00 | 225 | 17,438 | ||||||||
| VMI 110917P00090000 | Valmont Industries, Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $90.00 | 20 | 6,750 | ||||||||
| 134,372 | ||||||||||
The accompanying notes are an integral part of these financial statements.
124
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Professional, Scientific, and Technical Services | ||||||||||
| TTEK 110917P00022500 | Tetra Tech, Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $22.50 | 140 | $ | 18,900 | |||||||
| URS 110716P00040000 | URS Corp. | |||||||||
| Expiration: July 2011, Exercise Price: $40.00 | 110 | 825 | ||||||||
| URS 111022P00040000 | URS Corp. | |||||||||
| Expiration: October 2011, Exercise Price: $40.00 | 80 | 9,600 | ||||||||
| 29,325 | ||||||||||
| Utilities | ||||||||||
| AWK 110917P00025000 | American Water Works Co., Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $25.00 | 101 | 1,010 | ||||||||
| WTR 110917P00020000 | Aqua America, Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $20.00 | 50 | 1,125 | ||||||||
| WTR 110917P00022500 | Aqua America, Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $22.50 | 30 | 3,225 | ||||||||
| SBS 110716P00050000 | Cia de Saneamento Basico do Estado de Sao Paulo — ADR | |||||||||
| Expiration: July 2011, Exercise Price: $50.00 | 150 | 3,000 | ||||||||
| CIG 110917P00017500 | Companhia Energetica de Minas Gerais — ADR | |||||||||
| Expiration: September 2011, Exercise Price: $17.50 | 5 | 188 | ||||||||
| PICO 110716P00030000 | PICO Holdings, Inc. | |||||||||
| Expiration: July 2011, Exercise Price: $30.00 | 250 | 28,125 | ||||||||
| VE 110716P00030000 | Veolia Environnement — ADR | |||||||||
| Expiration: July 2011, Exercise Price: $30.00 | 165 | 32,588 | ||||||||
| VE 111022P00030000 | Veolia Environnement — ADR | |||||||||
| Expiration: October 2011, Exercise Price: $30.00 | 165 | 43,724 | ||||||||
| 112,985 | ||||||||||
The accompanying notes are an integral part of these financial statements.
125
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Water Infrastructure Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Waste Management and Remediation Services | ||||||||||
| CLH 110716P00075000 | Clean Harbors, Inc. | |||||||||
| Expiration: July 2011, Exercise Price: $75.00 | 80 | $ | 200 | |||||||
| WCN 110917P00025000 | Waste Connections, Inc. | |||||||||
| Expiration: September 2011, Exercise Price: $25.00 | 5 | 50 | ||||||||
| WM 120121P00032500 | Waste Management, Inc. | |||||||||
| Expiration: January 2012, Exercise Price: $32.50 | 200 | 22,000 | ||||||||
| 22,250 | ||||||||||
| TOTAL PUT OPTIONS WRITTEN (premiums received ($803,519) | $ | 424,570 | ||||||||
| ADR — | American Depository Receipt. |
| ETF — | Exchange Traded Fund. |
The accompanying notes are an integral part of these financial statements.
126
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | PUT OPTIONS WRITTEN | Contracts | Value | |||||||
| Administrative and Support Services | ||||||||||
| EXPE 120121P00015000 | Expedia, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 30 | $ | 300 | |||||||
| EXPE 120121P00024000 | Expedia, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $24.00 | 19 | 1,900 | ||||||||
| 2,200 | ||||||||||
| Air Transportation | ||||||||||
| ZNH 110917P00020000 | China Southern Airlines Company Limited — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $20.00 | 10 | 400 | ||||||||
| ZNH 110917P00022500 | China Southern Airlines Company Limited — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $22.50 | 31 | 2,635 | ||||||||
| 3,035 | ||||||||||
| Amusement, Gambling, and Recreation Industries | ||||||||||
| LVS 120121P00030000 | Las Vegas Sands Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 8 | 976 | ||||||||
| LVS 120121P00035000 | Las Vegas Sands Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 3 | 678 | ||||||||
| DIS 120121P00035000 | The Walt Disney Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 36 | 5,076 | ||||||||
| 6,730 | ||||||||||
| Asset Management | ||||||||||
| BLK 110716P00175000 | BlackRock, Inc. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $175.00 | 2 | 70 | ||||||||
The accompanying notes are an integral part of these financial statements.
127
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Asset Management (Continued) | ||||||||||
| BLK 111022P00175000 | BlackRock, Inc. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $175.00 | 3 | $ | 1,890 | |||||||
| BAM 110917P00030000 | Brookfield Asset Management Inc. — Class A | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $30.00 | 20 | 850 | ||||||||
| EV 111119P00030000 | Eaton Vance Corp. | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $30.00 | 22 | 4,565 | ||||||||
| FII 110716P00025000 | Federated Investors, Inc. — Class B | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $25.00 | 16 | 1,920 | ||||||||
| FII 111022P00022500 | Federated Investors, Inc. — Class B | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $22.50 | 10 | 1,150 | ||||||||
| FII 111022P00025000 | Federated Investors, Inc. — Class B | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $25.00 | 20 | 4,900 | ||||||||
| FII 120121P00020000 | Federated Investors, Inc. — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 17 | 1,615 | ||||||||
| FII 120121P00022500 | Federated Investors, Inc. — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 5 | 925 | ||||||||
| BEN 120121P00105000 | Franklin Resources, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $105.00 | 7 | 2,083 | ||||||||
| BEN 120121P00110000 | Franklin Resources, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $110.00 | 5 | 1,900 | ||||||||
| IVZ 111022P00022500 | Invesco Limited | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $22.50 | 46 | 5,635 | ||||||||
The accompanying notes are an integral part of these financial statements.
128
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Asset Management (Continued) | ||||||||||
| LM 120121P00030000 | Legg Mason, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 35 | $ | 6,825 | |||||||
| LM 120218P00030000 | Legg Mason, Inc. | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $30.00 | 16 | 3,520 | ||||||||
| TROW 120121P00050000 | T. Rowe Price Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 30 | 6,300 | ||||||||
| GROW 110917P00007500 | US Global Investors, Inc. — Class A | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $7.50 | 30 | 2,700 | ||||||||
| GROW 111217P00007500 | US Global Investors, Inc. — Class A | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $7.50 | 20 | 2,600 | ||||||||
| 49,448 | ||||||||||
| Beverage and Tobacco Product Manufacturing | ||||||||||
| DEO 110716P00065000 | Diageo plc — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $65.00 | 4 | 20 | ||||||||
| DEO 110716P00070000 | Diageo plc — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $70.00 | 4 | 20 | ||||||||
| DEO 120121P00075000 | Diageo plc — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $75.00 | 10 | 3,075 | ||||||||
| 3,115 | ||||||||||
| Broadcasting (except Internet) | ||||||||||
| DISCA 111022P00035000 | Discovery Communications Inc. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $35.00 | 28 | 1,470 | ||||||||
The accompanying notes are an integral part of these financial statements.
129
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Building Material and Garden Equipment and Supplies Dealers | ||||||||||
| SHW 120121P00070000 | The Sherwin-Williams Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $70.00 | 2 | $ | 335 | |||||||
| SHW 120121P00075000 | The Sherwin-Williams Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $75.00 | 10 | 2,800 | ||||||||
| 3,135 | ||||||||||
| Chemical Manufacturing | ||||||||||
| CCJ 120121P00022500 | Cameco Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 17 | 2,465 | ||||||||
| CCJ 120121P00025000 | Cameco Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 30 | 7,200 | ||||||||
| CCJ 120121P00030000 | Cameco Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 7 | 3,710 | ||||||||
| CCJ 120121P00035000 | Cameco Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 6 | 5,610 | ||||||||
| LYB 120121P00033000 | LyondellBasell Industries NV — Class A | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $33.00 | 30 | 7,350 | ||||||||
| NLC 110917P00025000 | Nalco Holding Co. | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $25.00 | 24 | 1,140 | ||||||||
| NVS 120121P00050000 | Novartis AG — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 15 | 1,050 | ||||||||
| SIAL 110716P00060000 | Sigma-Aldrich Corp. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $60.00 | 10 | 50 | ||||||||
The accompanying notes are an integral part of these financial statements.
130
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Chemical Manufacturing (Continued) | ||||||||||
| SIAL 111022P00060000 | Sigma-Aldrich Corp. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $60.00 | 14 | $ | 805 | |||||||
| SIAL 120121P00060000 | Sigma-Aldrich Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $60.00 | 4 | 500 | ||||||||
| 29,880 | ||||||||||
| Computer and Electronic Product Manufacturing | ||||||||||
| DCM 110716P00017500 | NTT Docomo, Inc. — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $17.50 | 20 | 200 | ||||||||
| COL 110716P00055000 | Rockwell Collins, Inc. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $55.00 | 9 | 45 | ||||||||
| COL 111022P00055000 | Rockwell Collins, Inc. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $55.00 | 5 | 475 | ||||||||
| 720 | ||||||||||
| Construction | ||||||||||
| BRP1 110917P00010000 | Brookfield Residential Properties Inc. | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $10.00 | 83 | 20,957 | ||||||||
| Couriers and Messengers | ||||||||||
| FDX 120121P00075000 | FedEx Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $75.00 | 2 | 364 | ||||||||
| FDX 120121P00080000 | FedEx Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $80.00 | 7 | 1,820 | ||||||||
| FDX 120121P00085000 | FedEx Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $85.00 | 2 | 750 | ||||||||
| UPS 120121P00065000 | United Parcel Service — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $65.00 | 10 | 1,900 | ||||||||
The accompanying notes are an integral part of these financial statements.
131
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Couriers and Messengers (Continued) | ||||||||||
| UPS 120121P00067500 | United Parcel Service — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $67.50 | 8 | $ | 2,000 | |||||||
| 6,834 | ||||||||||
| Credit Intermediation and Related Activities | ||||||||||
| AXP 120121P00030000 | American Express Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 10 | 290 | ||||||||
| AXP 120121P00040000 | American Express Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $40.00 | 15 | 1,485 | ||||||||
| AXP 130119P00045000 | American Express Company | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $45.00 | 18 | 7,965 | ||||||||
| BAC 120121P00012500 | Bank Of America Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $12.50 | 84 | 17,220 | ||||||||
| BAC 120218P00010000 | Bank Of America Corporation | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $10.00 | 26 | 1,898 | ||||||||
| BK 120121P00025000 | The Bank Of New York Mellon Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 36 | 6,840 | ||||||||
| BOKF 110917P00050000 | BOK Financial Corporation | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $50.00 | 5 | 1,225 | ||||||||
| EWBC 110716P00020000 | East West Bancorp, Inc. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $20.00 | 20 | 600 | ||||||||
| EWBC 111022P00020000 | East West Bancorp, Inc. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $20.00 | 8 | 1,060 | ||||||||
| FIS 120121P00025000 | Fidelity National Information Services, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 6 | 318 | ||||||||
The accompanying notes are an integral part of these financial statements.
132
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Credit Intermediation and Related Activities (Continued) | ||||||||||
| MTB 120121P00065000 | M&T Bank Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $65.00 | 6 | $ | 510 | |||||||
| MTB 120121P00075000 | M&T Bank Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $75.00 | 3 | 667 | ||||||||
| MTB 120121P00080000 | M&T Bank Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $80.00 | 7 | 2,415 | ||||||||
| MTB 130119P00085000 | M&T Bank Corporation | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $85.00 | 6 | 6,450 | ||||||||
| NTRS 120121P00045000 | Northern Trust Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $45.00 | 8 | 2,480 | ||||||||
| NTRS 120121P00050000 | Northern Trust Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 8 | 4,720 | ||||||||
| STT 120121P00040000 | State Street Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $40.00 | 36 | 7,560 | ||||||||
| STI 120121P00021000 | SunTrust Banks, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $21.00 | 15 | 1,320 | ||||||||
| STI 120121P00025000 | SunTrust Banks, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 15 | 3,285 | ||||||||
| USB 120121P00022500 | U.S. Bancorp | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 36 | 3,384 | ||||||||
| USB 120121P00024000 | U.S. Bancorp | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $24.00 | 10 | 1,350 | ||||||||
The accompanying notes are an integral part of these financial statements.
133
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Credit Intermediation and Related Activities (Continued) | ||||||||||
| USB 120121P00025000 | U.S. Bancorp | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 8 | $ | 1,440 | |||||||
| 74,482 | ||||||||||
| Data Processing, Hosting and Related Services | ||||||||||
| GOOG 120121P00520000 | Google Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $520.00 | 2 | 9,900 | ||||||||
| Data Processor | ||||||||||
| V 120121P00065000 | Visa, Inc. — Class A | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $65.00 | 10 | 1,280 | ||||||||
| V 120121P00070000 | Visa, Inc. — Class A | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $70.00 | 14 | 2,786 | ||||||||
| 4,066 | ||||||||||
| Defense | ||||||||||
| CACI 110917P00050000 | CACI International Inc. — Class A | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $50.00 | 5 | 112 | ||||||||
| Depository Credit Intermediation | ||||||||||
| HDB 110716P00140000 | HDFC Bank Ltd. — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $140.00 | 2 | 35 | ||||||||
| HDB 110716P00145000 | HDFC Bank Ltd. — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $145.00 | 1 | 10 | ||||||||
| HDB 111022P00150000 | HDFC Bank Ltd. — ADR | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $150.00 | 3 | 960 | ||||||||
| HDB 111022P00155000 | HDFC Bank Ltd. — ADR | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $155.00 | 2 | 820 | ||||||||
| 1,825 | ||||||||||
The accompanying notes are an integral part of these financial statements.
134
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Electric Power Distribution | ||||||||||
| EBR 110917P00012490 | Centrais Eletricas Brasileiras S.A. — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $12.49 | 63 | $ | 15,750 | |||||||
| Fabricated Metal Product Manufacturing | ||||||||||
| CMC 110917P00015000 | Commercial Metals Company | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $15.00 | 60 | 7,200 | ||||||||
| FO 120121P00050000 | Fortune Brands, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 7 | 770 | ||||||||
| 7,970 | ||||||||||
| Food Manufacturing | ||||||||||
| ADM 120121P00025000 | Archer-Daniels-Midland Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 13 | 1,079 | ||||||||
| ADM 120121P00028000 | Archer-Daniels-Midland Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $28.00 | 11 | 1,859 | ||||||||
| ADM 120121P00030000 | Archer-Daniels-Midland Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 33 | 8,613 | ||||||||
| BG 120121P00050000 | Bunge Limited | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 3 | 270 | ||||||||
| BG 120121P00060000 | Bunge Limited | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $60.00 | 14 | 3,710 | ||||||||
| BG 120121P00065000 | Bunge Limited | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $65.00 | 5 | 2,125 | ||||||||
| BG 130119P00065000 | Bunge Limited | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $65.00 | 6 | 5,010 | ||||||||
The accompanying notes are an integral part of these financial statements.
135
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Food Manufacturing (Continued) | ||||||||||
| CAG 120121P00020000 | ConAgra Foods, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 9 | $ | 225 | |||||||
| CAG 120121P00022500 | ConAgra Foods, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 46 | 2,760 | ||||||||
| CAG 120121P00024000 | ConAgra Foods, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $24.00 | 20 | 2,050 | ||||||||
| UN 110820P00025000 | Unilever NV | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $25.00 | 16 | 120 | ||||||||
| UN 110820P00030000 | Unilever NV | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $30.00 | 15 | 487 | ||||||||
| UN 111119P00030000 | Unilever NV | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $30.00 | 20 | 2,200 | ||||||||
| 30,508 | ||||||||||
| Funds, Trusts, and Other Financial Vehicles | ||||||||||
| NLY 120121P00015000 | Annaly Capital Management Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 43 | 1,419 | ||||||||
| GGP 120121P00012500 | General Growth Properties, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $12.50 | 20 | 420 | ||||||||
| GGP 120121P00015000 | General Growth Properties, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 40 | 3,000 | ||||||||
| EWJ 120121P00010000 | iShares MSCI Japan Index Fund | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $10.00 | 130 | 6,110 | ||||||||
| PSA 111217P00095000 | Public Storage | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $95.00 | 3 | 607 | ||||||||
The accompanying notes are an integral part of these financial statements.
136
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Funds, Trusts, and Other Financial Vehicles (Continued) | ||||||||||
| PSA 111217P00105000 | Public Storage | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $105.00 | 2 | $ | 830 | |||||||
| 12,386 | ||||||||||
| General Merchandise Stores | ||||||||||
| SHLD 120121P00060000 | Sears Holdings Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $60.00 | 24 | 14,160 | ||||||||
| Holding Company | ||||||||||
| BRKB 120121P00070000 | Berkshire Hathaway Inc. — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $70.00 | 11 | 2,640 | ||||||||
| BRKB 120121P00072500 | Berkshire Hathaway Inc. — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $72.50 | 4 | 1,240 | ||||||||
| BRKB 120121P00075000 | Berkshire Hathaway Inc. — Class B | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $75.00 | 9 | 3,510 | ||||||||
| LUK 120121P00025000 | Leucadia National Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 10 | 550 | ||||||||
| LUK 120121P00030000 | Leucadia National Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 10 | 1,475 | ||||||||
| 9,415 | ||||||||||
| Insurance Carriers and Related Activities | ||||||||||
| AIG 120121P00028000 | American International Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $28.00 | 10 | 2,425 | ||||||||
| AIG 120121P00030000 | American International Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 35 | 11,900 | ||||||||
| AIG 120218P00028000 | American International Group, Inc. | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $28.00 | 12 | 3,198 | ||||||||
The accompanying notes are an integral part of these financial statements.
137
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Insurance Carriers and Related Activities (Continued) | ||||||||||
| LFC 120121P00047500 | China Life Insurance Co., Limited — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $47.50 | 4 | $ | 1,040 | |||||||
| LFC 120121P00062500 | China Life Insurance Co., Limited — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $62.50 | 6 | 7,200 | ||||||||
| FNF 111217P00015000 | Fidelity National Financial, Inc. — Class A | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $15.00 | 5 | 387 | ||||||||
| L 110917P00040000 | Loews Corporation | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $40.00 | 11 | 880 | ||||||||
| L 111217P00040000 | Loews Corporation | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $40.00 | 12 | 1,944 | ||||||||
| MMC 120121P00027500 | Marsh & McLennan Companies, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $27.50 | 58 | 5,075 | ||||||||
| PGR 120121P00020000 | The Progressive Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 51 | 4,590 | ||||||||
| PGR 120218P00020000 | The Progressive Corporation | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $20.00 | 25 | 2,688 | ||||||||
| 41,327 | ||||||||||
| Machinery Manufacturing | ||||||||||
| LNN 111217P00060000 | Lindsay Corporation | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $60.00 | 5 | 2,150 | ||||||||
The accompanying notes are an integral part of these financial statements.
138
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Management of Companies and Enterprises | ||||||||||
| GS 120121P00140000 | The Goldman Sachs Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $140.00 | 1 | $ | 1,500 | |||||||
| GS 120121P00150000 | The Goldman Sachs Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $150.00 | 5 | 10,765 | ||||||||
| 12,265 | ||||||||||
| Medical Laboratories | ||||||||||
| LH 110820P00080000 | Laboratory Corporation of America Holdings | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $80.00 | 3 | 60 | ||||||||
| Merchant Wholesalers, Nondurable Goods | ||||||||||
| TAP 110716P00040000 | Molson Coors Brewing Company — Class B | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $40.00 | 16 | 80 | ||||||||
| TAP 110716P00045000 | Molson Coors Brewing Company — Class B | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $45.00 | 20 | 1,400 | ||||||||
| TAP 111022P00045000 | Molson Coors Brewing Company — Class B | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $45.00 | 20 | 4,900 | ||||||||
| 6,380 | ||||||||||
| Mining (except Oil and Gas) | ||||||||||
| ABX 120121P00040000 | Barrick Gold Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $40.00 | 9 | 1,755 | ||||||||
| ABX 120121P00045000 | Barrick Gold Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $45.00 | 10 | 4,200 | ||||||||
The accompanying notes are an integral part of these financial statements.
139
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Mining (except Oil and Gas) (Continued) | ||||||||||
| ABX 120121P00050000 | Barrick Gold Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 7 | $ | 5,145 | |||||||
| ABX 130119P00040000 | Barrick Gold Corporation | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $40.00 | 12 | 5,820 | ||||||||
| GGP1 120121P00015000 | Greatland Gold Plc | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 24 | 336 | ||||||||
| HWD 110820P00010000 | Harry Winston Diamond Corporation | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $10.00 | 27 | 338 | ||||||||
| HWD 111119P00012500 | Harry Winston Diamond Corporation | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $12.50 | 52 | 2,860 | ||||||||
| NEM 120121P00045000 | Newmont Mining Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $45.00 | 5 | 865 | ||||||||
| NEM 120121P00050000 | Newmont Mining Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 5 | 1,563 | ||||||||
| NEM 120121P00052500 | Newmont Mining Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $52.50 | 20 | 8,440 | ||||||||
| RIO 120121P00060000 | Rio Tinto PLC — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $60.00 | 19 | 5,130 | ||||||||
| 36,452 | ||||||||||
| Miscellaneous Manufacturing | ||||||||||
| BDX 110917P00075000 | Becton, Dickinson and Company | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $75.00 | 12 | 510 | ||||||||
The accompanying notes are an integral part of these financial statements.
140
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Miscellaneous Manufacturing (Continued) | ||||||||||
| BDX 111217P00080000 | Becton, Dickinson and Company | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $80.00 | 6 | $ | 1,500 | |||||||
| IGT 120121P00015000 | International Game Technology | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 74 | 5,365 | ||||||||
| IGT 130119P00012500 | International Game Technology | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $12.50 | 12 | 1,230 | ||||||||
| 8,605 | ||||||||||
| Motion Picture and Sound Recording Industries | ||||||||||
| DWA 110917P00025000 | Dreamworks Animation SKG, Inc. — Class A | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $25.00 | 10 | 5,100 | ||||||||
| DWA 111217P00020000 | Dreamworks Animation SKG, Inc. — Class A | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $20.00 | 46 | 8,050 | ||||||||
| DWA 111217P00022500 | Dreamworks Animation SKG, Inc. — Class A | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $22.50 | 20 | 6,600 | ||||||||
| NWS 120121P00015000 | News Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 30 | 1,650 | ||||||||
| NWS 120121P00016000 | News Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $16.00 | 80 | 6,000 | ||||||||
| 27,400 | ||||||||||
| Non-Store Retailers | ||||||||||
| AMZN 120121P00160000 | Amazon.com, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $160.00 | 2 | 1,240 | ||||||||
The accompanying notes are an integral part of these financial statements.
141
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Non-Store Retailers (Continued) | ||||||||||
| AMZN 120121P00165000 | Amazon.com, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $165.00 | 2 | $ | 1,380 | |||||||
| AMZN 120121P00170000 | Amazon.com, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $170.00 | 2 | 1,640 | ||||||||
| EBAY 120121P00020000 | eBay, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 5 | 130 | ||||||||
| EBAY 120121P00025000 | eBay, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 35 | 3,045 | ||||||||
| BID 120121P00035000 | Sotheby’s | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 35 | 8,400 | ||||||||
| 15,835 | ||||||||||
| Oil and Gas and Consumable Fuels | ||||||||||
| SNP 120121P00090000 | China Petroleum and Chemical Corporation — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $90.00 | 11 | 4,455 | ||||||||
| PTR 120121P00105000 | PetroChina Company Limited — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $105.00 | 2 | 270 | ||||||||
| PTR 120121P00120000 | PetroChina Company Limited — ADR | �� | ||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $120.00 | 2 | 760 | ||||||||
| PTR 130119P00125000 | PetroChina Company Limited — ADR | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $125.00 | 8 | 11,120 | ||||||||
| 16,605 | ||||||||||
| Oil and Gas Extraction | ||||||||||
| CNQ 120121P00035000 | Canadian Natural Resources Ltd. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 10 | 1,625 | ||||||||
The accompanying notes are an integral part of these financial statements.
142
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Oil and Gas Extraction (Continued) | ||||||||||
| CNQ 120121P00037500 | Canadian Natural Resources Ltd. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $37.50 | 16 | $ | 3,760 | |||||||
| CNQ 120121P00040000 | Canadian Natural Resources Ltd. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $40.00 | 12 | 3,840 | ||||||||
| CEO 110917P00190000 | CNOOC Limited — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $190.00 | 2 | 240 | ||||||||
| CEO 111217P00190000 | CNOOC Limited — ADR | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $190.00 | 2 | 950 | ||||||||
| CEO 111217P00200000 | CNOOC Limited — ADR | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $200.00 | 3 | 2,130 | ||||||||
| ECA 120121P00029000 | Encana Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $29.00 | 17 | 3,230 | ||||||||
| ECA 120121P00030000 | EnCana Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 26 | 6,110 | ||||||||
| ECA 130119P00025000 | Encana Corporation | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $25.00 | 13 | 3,133 | ||||||||
| IMO 110820P00035000 | Imperial Oil Ltd. | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $35.00 | 2 | 70 | ||||||||
| IMO 110820P00040000 | Imperial Oil Ltd. | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $40.00 | 12 | 720 | ||||||||
| IMO 111119P00045000 | Imperial Oil Ltd. | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $45.00 | 8 | 2,200 | ||||||||
| IMO 120218P00040000 | Imperial Oil Ltd. | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $40.00 | 18 | 3,510 | ||||||||
The accompanying notes are an integral part of these financial statements.
143
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Oil and Gas Extraction (Continued) | ||||||||||
| NXY 110917P00021000 | Nexen Inc. | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $21.00 | 40 | $ | 3,960 | |||||||
| PBR 120121P00030000 | Petroleo Brasileiro S.A. — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 47 | 7,191 | ||||||||
| PBR 130119P00035000 | Petroleo Brasileiro S.A. — ADR | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $35.00 | 8 | 5,040 | ||||||||
| STO 110716P00022500 | StatoilHydro ASA — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $22.50 | 22 | 165 | ||||||||
| STO 111022P00025000 | StatoilHydro ASA — ADR | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $25.00 | 16 | 2,360 | ||||||||
| SU 120121P00035000 | Suncor Energy, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 68 | 15,096 | ||||||||
| TOT 120121P00045000 | Total SA — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $45.00 | 5 | 650 | ||||||||
| TOT 120121P00050000 | Total SA — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 17 | 3,740 | ||||||||
| 69,720 | ||||||||||
| Other Investment Pools and Funds | ||||||||||
| SDS 120121P00020000 | UltraShort S&P 500 ProShares ETF | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 100 | 19,000 | ||||||||
| SDS 120121P00021000 | UltraShort S&P 500 ProShares ETF | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $21.00 | 5 | 1,267 | ||||||||
| 20,267 | ||||||||||
The accompanying notes are an integral part of these financial statements.
144
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Performing Arts, Spectator Sports, and Related Industries | ||||||||||
| LYV 120121P00010000 | Live Nation Entertainment, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $10.00 | 100 | $ | 8,250 | |||||||
| Pharmaceutical and Biotechnology | ||||||||||
| BIIB 120121P00055000 | Biogen Idec Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $55.00 | 5 | 100 | ||||||||
| BIIB 120121P00060000 | Biogen Idec Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $60.00 | 10 | 375 | ||||||||
| BIIB 120121P00065000 | Biogen Idec Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $65.00 | 6 | 345 | ||||||||
| SNY 110917P00030000 | Sanofi-Aventis — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $30.00 | 33 | 363 | ||||||||
| 1,183 | ||||||||||
| Professional, Scientific, and Technical Services | ||||||||||
| ADP 120121P00045000 | Automatic Data Processing, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $45.00 | 20 | 2,000 | ||||||||
| ADP 130119P00050000 | Automatic Data Processing, Inc. | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $50.00 | 16 | 8,000 | ||||||||
| CRL 110820P00030000 | Charles River Laboratories International, Inc. | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $30.00 | 25 | 250 | ||||||||
| CRL 110820P00035000 | Charles River Laboratories International, Inc. | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $35.00 | 5 | 113 | ||||||||
The accompanying notes are an integral part of these financial statements.
145
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Professional, Scientific, and Technical Services (Continued) | ||||||||||
| CRL 111119P00035000 | Charles River Laboratories International, Inc. | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $35.00 | 13 | $ | 1,170 | |||||||
| FCN 120121P00030000 | FTI Consulting, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 12 | 750 | ||||||||
| 12,283 | ||||||||||
| Rail Transportation | ||||||||||
| CP 110917P00060000 | Canadian Pacific Railway Limited | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $60.00 | 12 | 1,950 | ||||||||
| CP 110917P00065000 | Canadian Pacific Railway Limited | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $65.00 | 5 | 2,075 | ||||||||
| CP 111217P00055000 | Canadian Pacific Railway Limited | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $55.00 | 7 | 1,085 | ||||||||
| CP 111217P00060000 | Canadian Pacific Railway Limited | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $60.00 | 5 | 1,525 | ||||||||
| CSX 120121P00019170 | CSX Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $19.17 | 21 | 725 | ||||||||
| CSX 120121P00020000 | CSX Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 15 | 660 | ||||||||
| CSX 120121P00022500 | CSX Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 9 | 801 | ||||||||
| NSC 120121P00050000 | Norfolk Southern Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $50.00 | 6 | 330 | ||||||||
| NSC 120121P00055000 | Norfolk Southern Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $55.00 | 4 | 360 | ||||||||
The accompanying notes are an integral part of these financial statements.
146
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Rail Transportation (Continued) | ||||||||||
| NSC 120121P00060000 | Norfolk Southern Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $60.00 | 3 | $ | 420 | |||||||
| NSC 120121P00065000 | Norfolk Southern Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $65.00 | 7 | 1,610 | ||||||||
| UNP 120121P00072500 | Union Pacific Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $72.50 | 2 | 200 | ||||||||
| UNP 120121P00080000 | Union Pacific Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $80.00 | 1 | 159 | ||||||||
| UNP 120121P00085000 | Union Pacific Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $85.00 | 7 | 1,652 | ||||||||
| UNP 120121P00087500 | Union Pacific Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $87.50 | 5 | 1,390 | ||||||||
| UNP 130119P00090000 | Union Pacific Corporation | |||||||||
| Expiration: January 2013, | ||||||||||
| Exercise Price: $90.00 | 4 | 3,410 | ||||||||
| 18,352 | ||||||||||
| Real Estate | ||||||||||
| CBG 111217P00021000 | CB Richard Ellis Group, Inc. — Class A | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $21.00 | 30 | 3,675 | ||||||||
| CBG 111217P00023000 | CB Richard Ellis Group, Inc. — Class A | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $23.00 | 15 | 2,812 | ||||||||
| JLL 111217P00090000 | Jones Lang LaSalle Incorporated | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $90.00 | 3 | 1,845 | ||||||||
The accompanying notes are an integral part of these financial statements.
147
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Real Estate (Continued) | ||||||||||
| JOE 120121P00022500 | The St. Joe Company | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 10 | $ | 4,900 | |||||||
| 13,232 | ||||||||||
| Securities and Commodity Exchanges | ||||||||||
| CBOE 110917P00020000 | CBOE Holdings Inc. | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $20.00 | 8 | 200 | ||||||||
| CBOE 120121P00025000 | CBOE Holdings Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 47 | 13,395 | ||||||||
| CME 120121P00260000 | CME Group Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $260.00 | 2 | 2,300 | ||||||||
| CME 120121P00270000 | CME Group Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $270.00 | 3 | 4,539 | ||||||||
| 20,434 | ||||||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | ||||||||||
| AB 110716P00022500 | AllianceBernstein Holding LP | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $22.50 | 35 | 10,360 | ||||||||
| AB 120121P00017500 | AllianceBernstein Holding LP | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $17.50 | 45 | 4,725 | ||||||||
| SCHW 120121P00015000 | The Charles Schwab Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 12 | 1,080 | ||||||||
The accompanying notes are an integral part of these financial statements.
148
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities (Continued) | ||||||||||
| SCHW 120121P00017500 | The Charles Schwab Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $17.50 | 52 | $ | 10,790 | |||||||
| GHL 111217P00050000 | Greenhill & Co., Inc. | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $50.00 | 26 | 8,710 | ||||||||
| 35,665 | ||||||||||
| Support Activities for Transportation | ||||||||||
| PAC 110716P00035000 | Grupo Aeroportuario del Pacifico SAB de CV — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $35.00 | 12 | 3,000 | ||||||||
| ASR 110917P00045000 | Grupo Aeroportuario del Sureste S.A.B. de C.V. — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $45.00 | 7 | 157 | ||||||||
| ASR 110917P00050000 | Grupo Aeroportuario del Sureste S.A.B. de C.V. — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $50.00 | 7 | 262 | ||||||||
| 3,419 | ||||||||||
| Telecommunications | ||||||||||
| CHU 110716P00013000 | China Unicom (Hong Kong) Limited — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $13.00 | 9 | 67 | ||||||||
| Transportation Equipment Manufacturing | ||||||||||
| BA 120218P00070000 | Boeing Co. | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $70.00 | 22 | 10,670 | ||||||||
| OSK 120121P00030000 | Oshkosh Corporation | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 20 | 6,800 | ||||||||
The accompanying notes are an integral part of these financial statements.
149
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Transportation Equipment Manufacturing (Continued) | ||||||||||
| TM 120121P00070000 | Toyota Motor Corporation — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $70.00 | 8 | $ | 1,352 | |||||||
| TM 120121P00080000 | Toyota Motor Corporation — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $80.00 | 11 | 5,170 | ||||||||
| 23,992 | ||||||||||
| U.S. Equity Exchanges | ||||||||||
| NDAQ 120121P00017500 | The NASDAQ OMX Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $17.50 | 10 | 375 | ||||||||
| NDAQ 120121P00020000 | The NASDAQ OMX Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $20.00 | 28 | 2,030 | ||||||||
| NDAQ 120121P00022500 | The NASDAQ OMX Group, Inc. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $22.50 | 20 | 2,700 | ||||||||
| NYX 120121P00025000 | NYSE Euronext | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 12 | 432 | ||||||||
| NYX 120121P00030000 | NYSE Euronext | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 10 | 1,210 | ||||||||
| 6,747 | ||||||||||
| Utilities | ||||||||||
| CPN 120121P00012500 | Calpine Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $12.50 | 30 | 1,050 | ||||||||
| CPN 120121P00015000 | Calpine Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $15.00 | 14 | 1,505 | ||||||||
| SBS 110716P00045000 | Cia de Saneamento Basico do Estado de Sao Paulo — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $45.00 | 15 | 412 | ||||||||
The accompanying notes are an integral part of these financial statements.
150
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Utilities (Continued) | ||||||||||
| SBS 111022P00045000 | Cia de Saneamento Basico do Estado de Sao Paulo — ADR | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $45.00 | 4 | $ | 270 | |||||||
| CIG 110917P00015000 | Companhia Energetica de Minas Gerais — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $15.00 | 54 | 945 | ||||||||
| FE1 110716P00022500 | FirstEnergy Corp. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $22.50 | 4 | 20 | ||||||||
| FE1 110716P00025000 | FirstEnergy Corp. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $25.00 | 9 | 23 | ||||||||
| FE 120121P00035000 | FirstEnergy Corp. | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $35.00 | 20 | 1,200 | ||||||||
| GXP 110917P00017500 | Great Plains Energy Incorporated | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $17.50 | 6 | 45 | ||||||||
| GXP 111217P00020000 | Great Plains Energy Incorporated | |||||||||
| Expiration: December 2011, | ||||||||||
| Exercise Price: $20.00 | 25 | 2,313 | ||||||||
| HNP 110820P00020000 | Huaneng Power International, Inc. — ADR | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $20.00 | 27 | 608 | ||||||||
| HNP 111119P00022500 | Huaneng Power International, Inc. — ADR | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $22.50 | 35 | 7,088 | ||||||||
| HNP 120218P00020000 | Huaneng Power International, Inc. — ADR | |||||||||
| Expiration: February 2012, | ||||||||||
| Exercise Price: $20.00 | 17 | 1,615 | ||||||||
The accompanying notes are an integral part of these financial statements.
151
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Utilities (Continued) | ||||||||||
| KEP 110917P00012500 | Korea Electric Power Corporation — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $12.50 | 35 | $ | 1,312 | |||||||
| NGG 110917P00040000 | National Grid PLC — ADR | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $40.00 | 24 | 240 | ||||||||
| PICO 110716P00030000 | PICO Holdings, Inc. | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $30.00 | 22 | 2,475 | ||||||||
| PICO 111022P00025000 | PICO Holdings, Inc. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $25.00 | 10 | 350 | ||||||||
| PICO 111022P00030000 | PICO Holdings, Inc. | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $30.00 | 10 | 2,050 | ||||||||
| UNS 110917P00035000 | Unisource Energy Corporation | |||||||||
| Expiration: September 2011, | ||||||||||
| Exercise Price: $35.00 | 15 | 3,675 | ||||||||
| UTH 110820P00096000 | Utilities HOLDRs Trust | |||||||||
| Expiration: August 2011, | ||||||||||
| Exercise Price: $96.00 | 15 | 638 | ||||||||
| UTH 111119P00102000 | Utilities HOLDRs Trust | |||||||||
| Expiration: November 2011, | ||||||||||
| Exercise Price: $102.00 | 3 | 968 | ||||||||
| XLU 120121P00030000 | Utilities Select Sector SPDR Fund | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $30.00 | 55 | 3,658 | ||||||||
| VE 110716P00025000 | Veolia Environnement — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $25.00 | 15 | 150 | ||||||||
| VE 110716P00030000 | Veolia Environnement — ADR | |||||||||
| Expiration: July 2011, | ||||||||||
| Exercise Price: $30.00 | 5 | 988 | ||||||||
| VE 111022P00030000 | Veolia Environnement — ADR | |||||||||
| Expiration: October 2011, | ||||||||||
| Exercise Price: $30.00 | 4 | 1,060 | ||||||||
The accompanying notes are an integral part of these financial statements.
152
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
The Multi-Disciplinary Portfolio
Portfolio of Options Written — June 30, 2011 (Unaudited) — (Continued)
| Identifier | Contracts | Value | ||||||||
| Utilities (Continued) | ||||||||||
| VE 120121P00025000 | Veolia Environnement — ADR | |||||||||
| Expiration: January 2012, | ||||||||||
| Exercise Price: $25.00 | 21 | $ | 2,415 | |||||||
| 37,073 | ||||||||||
| TOTAL PUT OPTIONS WRITTEN (premiums received ($986,977)) | $ | 745,861 | ||||||||
| ADR — | American Depository Receipt. |
| ETF — | Exchange Traded Fund. |
The accompanying notes are an integral part of these financial statements.
153
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Assets & Liabilities
June 30, 2011 (Unaudited)
| The Internet | The Global | |||||||
| Portfolio | Portfolio | |||||||
ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 172,883,833 | $ | 5,735,412 | ||||
Foreign currencies, at value(3) | 21,229 | 17,750 | ||||||
| Receivable for contributed capital | 16,363 | — | ||||||
| Receivable for investments sold | 167,142 | — | ||||||
| Dividends and interest receivable | 48,046 | 15,217 | ||||||
| Other accounts receivable | 99,877 | — | ||||||
| Other assets | 13,349 | 201 | ||||||
| Total Assets | 173,249,839 | 5,768,580 | ||||||
LIABILITIES: | ||||||||
| Payable to Adviser | 122,418 | 5,238 | ||||||
| Payable to Custodian | — | 17,160 | ||||||
| Payable to Trustees and Officers | 1,835 | 70 | ||||||
| Payable for securities purchased | 265,615 | — | ||||||
| Payable for collateral received for securities loaned | 49,273,501 | 562,925 | ||||||
| Payable for withdrawn capital | 24,779 | 712 | ||||||
| Accrued expenses and other liabilities | 22,662 | 13,969 | ||||||
| Total Liabilities | 49,710,810 | 600,074 | ||||||
| Net Assets | $ | 123,539,029 | $ | 5,168,506 | ||||
(1)Cost of investments | $ | 130,292,760 | $ | 5,571,694 | ||||
(2)Includes loaned securities with a market value of | $ | 48,206,745 | $ | 513,402 | ||||
(3)Cost of foreign currencies | $ | 21,223 | $ | 17,698 | ||||
The accompanying notes are an integral part of these financial statements.
154
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Assets & Liabilities — (Continued)
June 30, 2011 (Unaudited)
| The | The | |||||||
| Paradigm | Medical | |||||||
| Portfolio | Portfolio | |||||||
ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 1,377,424,919 | $ | 43,467,849 | ||||
Foreign currencies, at value(3) | 38,283 | — | ||||||
| Cash | 13,571 | — | ||||||
| Receivable for contributed capital | 1,166,481 | 427 | ||||||
| Receivable for investments sold | 18,706,973 | — | ||||||
| Dividends and interest receivable | 1,016,880 | 39,089 | ||||||
| Other assets | 198,529 | 5,212 | ||||||
| Total Assets | 1,398,565,636 | 43,512,577 | ||||||
LIABILITIES: | ||||||||
| Payable to Adviser | 1,205,153 | 34,984 | ||||||
| Payable to Trustees and Officers | 18,624 | 485 | ||||||
| Payable for securities purchased | 18,738,375 | — | ||||||
| Payable for collateral received for securities loaned | 188,226,101 | 8,874,018 | ||||||
| Payable for withdrawn capital | 2,436,931 | 5,873 | ||||||
| Accrued expenses and other liabilities | 161,884 | 10,967 | ||||||
| Total Liabilities | 210,787,068 | 8,926,327 | ||||||
| Net Assets | $ | 1,187,778,568 | $ | 34,586,250 | ||||
(1)Cost of investments | $ | 1,221,093,239 | $ | 39,079,021 | ||||
(2)Includes loaned securities with a market value of | $ | 180,989,628 | $ | 8,409,612 | ||||
(3)Cost of foreign currencies | $ | 38,150 | $ | — | ||||
The accompanying notes are an integral part of these financial statements.
155
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Assets & Liabilities — (Continued)
June 30, 2011 (Unaudited)
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Portfolio | Portfolio | |||||||
ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 132,561,718 | $ | 60,612,232 | ||||
Foreign currencies, at value(3) | 14,187 | 3,413 | ||||||
| Cash | — | 873 | ||||||
| Receivable for contributed capital | 45,628 | 5,657 | ||||||
| Dividends and interest receivable | 159,625 | 25,487 | ||||||
| Other accounts receivable | 20,976 | — | ||||||
| Other assets | 5,930 | 2,452 | ||||||
| Total Assets | 132,808,064 | 60,650,114 | ||||||
LIABILITIES: | ||||||||
| Payable to Adviser | 116,095 | 50,849 | ||||||
| Payable to Trustees and Officers | 1,948 | 786 | ||||||
| Payable for securities purchased | 394,204 | — | ||||||
| Payable for collateral received for securities loaned | 18,973,978 | 10,281,357 | ||||||
| Payable for withdrawn capital | 247,385 | 54,050 | ||||||
| Accrued expenses and other liabilities | 38,079 | 14,898 | ||||||
| Total Liabilities | 19,771,689 | 10,401,940 | ||||||
| Net Assets | $ | 113,036,375 | $ | 50,248,174 | ||||
(1)Cost of investments | $ | 116,016,048 | $ | 52,390,651 | ||||
(2)Includes loaned securities with a market value of | $ | 18,371,855 | $ | 10,018,029 | ||||
(3)Cost of foreign currencies | $ | 14,163 | $ | 3,372 | ||||
The accompanying notes are an integral part of these financial statements.
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Statements of Assets & Liabilities — (Continued)
June 30, 2011 (Unaudited)
| The Water | The Multi- | |||||||
| Infrastructure | Disciplinary | |||||||
| Portfolio | Portfolio | |||||||
ASSETS: | ||||||||
Investments, at value(1)(2) | $ | 15,160,735 | $ | 17,116,012 | ||||
| Deposit at brokers for written options | 6,232,146 | 2,899,471 | ||||||
| Receivable for contributed capital | 100 | 576,459 | ||||||
| Dividends and interest receivable | 52,264 | 202,699 | ||||||
| Other assets | 816 | 173 | ||||||
| Total Assets | 21,446,061 | 20,794,814 | ||||||
LIABILITIES: | ||||||||
Written options, at value(3) | 424,570 | 745,861 | ||||||
| Payable to Adviser | 18,845 | 13,959 | ||||||
| Payable to Trustees and Officers | 305 | 139 | ||||||
| Payable for securities purchased | — | 430,000 | ||||||
| Payable for collateral received for securities loaned | 2,525,320 | 2,481,435 | ||||||
| Payable for withdrawn capital | 80,453 | — | ||||||
| Accrued expenses and other liabilities | 9,641 | 11,434 | ||||||
| Total Liabilities | 3,059,134 | 3,682,828 | ||||||
| Net Assets | $ | 18,386,927 | $ | 17,111,986 | ||||
(1)Cost of investments | $ | 15,081,703 | $ | 16,986,179 | ||||
(2)Includes loaned securities with a market value of | $ | 2,385,886 | $ | 2,434,401 | ||||
(3)Premiums received | $ | 803,519 | $ | 986,977 | ||||
The accompanying notes are an integral part of these financial statements.
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Statements of Operations
For the Six Months Ended June 30, 2011 (Unaudited)
| The Internet | The Global | |||||||
| Portfolio | Portfolio | |||||||
INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 380,363 | $ | 79,231 | ||||
| Interest | 3 | — | ||||||
| Income from securities lending | 67,526 | 498 | ||||||
| Total investment income | 447,892 | 79,729 | ||||||
EXPENSES: | ||||||||
| Investment advisory fees | 755,919 | 33,422 | ||||||
| Administration fees | 26,896 | 1,188 | ||||||
| Professional fees | 4,947 | 4,301 | ||||||
| Fund accounting fees | 13,216 | 5,474 | ||||||
| Trustees’ and Officers’ fees and expenses | 5,730 | 251 | ||||||
| Custodian fees and expenses | 33,689 | 13,824 | ||||||
| Other expenses | 2,264 | 111 | ||||||
| Total expenses | 842,661 | 58,571 | ||||||
| Net investment income (loss) | (394,769 | ) | 21,158 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 17,170,009 | 251,822 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (3,982,921 | ) | (404,417 | ) | ||||
| Net gain (loss) on investments | 13,187,088 | (152,595 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | $ | 12,792,319 | $ | (131,437 | ) | |||
| † Net of Foreign Taxes Withheld of: | $ | 9,289 | $ | 10,108 | ||||
The accompanying notes are an integral part of these financial statements.
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Statements of Operations — (Continued)
For the Six Months Ended June 30, 2011 (Unaudited)
| The | The | |||||||
| Paradigm | Medical | |||||||
| Portfolio | Portfolio | |||||||
INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 7,760,719 | $ | 415,784 | ||||
| Interest | 189,076 | — | ||||||
| Income from securities lending | 988,645 | 18,766 | ||||||
| Total investment income | 8,938,440 | 434,550 | ||||||
EXPENSES: | ||||||||
| Investment advisory fees | 7,704,861 | 198,545 | ||||||
| Administration fees | 277,880 | 7,065 | ||||||
| Professional fees | 57,464 | 3,130 | ||||||
| Fund accounting fees | 111,660 | 4,514 | ||||||
| Trustees’ and Officers’ fees and expenses | 58,444 | 1,486 | ||||||
| Custodian fees and expenses | 218,073 | 3,637 | ||||||
| Other expenses | 25,203 | 574 | ||||||
| Total expenses | 8,453,585 | 218,951 | ||||||
| Net investment income | 484,855 | 215,599 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 154,201,027 | 719,638 | ||||||
| Realized gain distributions received from other investment companies | 8,158 | — | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (134,009,074 | ) | 3,705,553 | |||||
| Net gain on investments | 20,200,111 | 4,425,191 | ||||||
| Net increase in net assets resulting from operations | $ | 20,684,966 | $ | 4,640,790 | ||||
| † Net of Foreign Taxes Withheld of: | $ | 416,778 | $ | 28,662 | ||||
The accompanying notes are an integral part of these financial statements.
159
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Operations — (Continued)
For the Six Months Ended June 30, 2011 (Unaudited)
| The Small Cap | The Market | |||||||
| Opportunities | Opportunities | |||||||
| Portfolio | Portfolio | |||||||
INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 924,374 | $ | 451,200 | ||||
| Interest | 2 | 18 | ||||||
| Income from securities lending | 38,829 | 18,207 | ||||||
| Total investment income | 963,205 | 469,425 | ||||||
EXPENSES: | ||||||||
| Investment advisory fees | 803,250 | 331,747 | ||||||
| Administration fees | 29,532 | 12,009 | ||||||
| Professional fees | 4,431 | 3,387 | ||||||
| Fund accounting fees | 14,576 | 7,665 | ||||||
| Trustees’ and Officers’ fees and expenses | 6,357 | 2,552 | ||||||
| Custodian fees and expenses | 55,106 | 23,096 | ||||||
| Other expenses | 3,128 | 1,149 | ||||||
| Total expenses | 916,380 | 381,605 | ||||||
| Net investment income | 46,825 | 87,820 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain on: | ||||||||
| Investments and foreign currency | 13,504,452 | 657,359 | ||||||
| Realized gain distributions received from other investment companies | — | 3,215 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | (14,033,236 | ) | 987,033 | |||||
| Net gain (loss) on investments | (528,784 | ) | 1,647,607 | |||||
| Net increase (decrease) in net assets resulting from operations | $ | (481,959 | ) | $ | 1,735,427 | |||
| † Net of Foreign Taxes Withheld of: | $ | 53,978 | $ | 27,509 | ||||
The accompanying notes are an integral part of these financial statements.
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Operations — (Continued)
For the Six Months Ended June 30, 2011 (Unaudited)
| The Water | The Multi- | |||||||
| Infrastructure | Disciplinary | |||||||
| Portfolio | Portfolio | |||||||
INVESTMENT INCOME: | ||||||||
| Dividends† | $ | 24,921 | $ | — | ||||
| Interest | 230,849 | 335,951 | ||||||
| Income from securities lending | 2,130 | 217 | ||||||
| Total investment income | 257,900 | 336,168 | ||||||
EXPENSES: | ||||||||
| Investment advisory fees | 123,173 | 59,725 | ||||||
| Administration fees | 4,341 | 2,341 | ||||||
| Professional fees | 4,409 | 2,306 | ||||||
| Fund accounting fees | 3,407 | 7,056 | ||||||
| Trustees’ and Officers’ fees and expenses | 995 | 389 | ||||||
| Custodian fees and expenses | — | 2,155 | ||||||
| Other expenses | 353 | 70 | ||||||
| Total expenses | 136,678 | 74,042 | ||||||
| Net investment income | 121,222 | 262,126 | ||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments and foreign currency | (385,393 | ) | (2,026 | ) | ||||
| Written option contracts expired or closed | 1,532,820 | 175,872 | ||||||
| Net change in unrealized appreciation (depreciation) of: | ||||||||
| Investments and foreign currency | 57,136 | 54,269 | ||||||
| Written option contracts | (789,331 | ) | 70,510 | |||||
| Net gain on investments | 415,232 | 298,625 | ||||||
| Net increase in net assets resulting from operations | $ | 536,454 | $ | 560,751 | ||||
| † Net of Foreign Taxes Withheld of: | $ | 2,123 | $ | — | ||||
The accompanying notes are an integral part of these financial statements.
161
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets
| The Internet Portfolio | The Global Portfolio | |||||||||||||||
| For the | For the | |||||||||||||||
| Six Months Ended | For the | Six Months Ended | For the | |||||||||||||
| June 30, 2011 | Year Ended | June 30, 2011 | Year Ended | |||||||||||||
| (Unaudited) | December 31, 2010 | (Unaudited) | December 31, 2010 | |||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income (loss) | $ | (394,769 | ) | $ | (350,263 | ) | $ | 21,158 | $ | (24,971 | ) | |||||
| Net realized gain on sale of investments, foreign currency and written options | 17,170,009 | 3,608,489 | 251,822 | 621,908 | ||||||||||||
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | (3,982,921 | ) | 18,105,026 | (404,417 | ) | 246,931 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | 12,792,319 | 21,363,252 | (131,437 | ) | 843,868 | |||||||||||
NET DECREASE IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | ||||||||||||||||
| Contributions | 1,993,482 | 1,346,460 | 527,566 | 1,327,460 | ||||||||||||
| Withdrawals | (6,513,725 | ) | (13,061,708 | ) | (530,457 | ) | (1,636,790 | ) | ||||||||
| Net decrease in net assets resulting from beneficial interest transactions | (4,520,243 | ) | (11,715,248 | ) | (2,891 | ) | (309,330 | ) | ||||||||
| Total increase (decrease) in net assets | 8,272,076 | 9,648,004 | (134,328 | ) | 534,538 | |||||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 115,266,953 | 105,618,949 | 5,302,834 | 4,768,296 | ||||||||||||
| End of period | $ | 123,539,029 | $ | 115,266,953 | $ | 5,168,506 | $ | 5,302,834 | ||||||||
The accompanying notes are an integral part of these financial statements.
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets — (Continued)
| The Paradigm Portfolio | The Medical Portfolio | |||||||||||||||
| For the | For the | |||||||||||||||
| Six Months Ended | For the | Six Months Ended | For the | |||||||||||||
| June 30, 2011 | Year Ended | June 30, 2011 | Year Ended | |||||||||||||
| (Unaudited) | December 31, 2010 | (Unaudited) | December 31, 2010 | |||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income | $ | 484,855 | $ | 10,490,238 | $ | 215,599 | $ | 171,404 | ||||||||
| Net realized gain (loss) on sale of investments and foreign currency and distributions received from other investment companies | 154,209,185 | (109,064,403 | ) | 719,638 | (219,849 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) of investments and foreign currency | (134,009,074 | ) | 286,372,800 | 3,705,553 | 1,376,880 | |||||||||||
| Net increase in net assets resulting from operations | 20,684,966 | 187,798,635 | 4,640,790 | 1,328,435 | ||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | ||||||||||||||||
| Contributions | 7,612,192 | 12,611,540 | 2,296,426 | 8,554,289 | ||||||||||||
| Withdrawals | (87,969,372 | ) | (358,281,150 | ) | (3,043,146 | ) | (5,133,179 | ) | ||||||||
| Net increase (decrease) in net assets resulting from beneficial interest transactions | (80,357,180 | ) | (345,669,610 | ) | (746,720 | ) | 3,421,110 | |||||||||
| Total increase (decrease) in net assets | (59,672,214 | ) | (157,870,975 | ) | 3,894,070 | 4,749,545 | ||||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 1,247,450,782 | 1,405,321,757 | 30,692,180 | 25,942,635 | ||||||||||||
| End of period | $ | 1,187,778,568 | $ | 1,247,450,782 | $ | 34,586,250 | $ | 30,692,180 | ||||||||
The accompanying notes are an integral part of these financial statements.
163
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets — (Continued)
| The Small Cap Opportunities Portfolio | The Market Opportunities Portfolio | |||||||||||||||
| For the | For the | |||||||||||||||
| Six Months Ended | For the | Six Months Ended | For the | |||||||||||||
| June 30, 2011 | Year Ended | June 30, 2011 | Year Ended | |||||||||||||
| (Unaudited) | December 31, 2010 | (Unaudited) | December 31, 2010 | |||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income | $ | 46,825 | $ | 34,333 | $ | 87,820 | $ | 330,735 | ||||||||
| Net realized gain (loss) on sale of investments, foreign currency and written options and distributions received from other investment companies | 13,504,452 | (589,161 | ) | 660,574 | (336,199 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | (14,033,236 | ) | 20,474,498 | 987,033 | 6,168,917 | |||||||||||
| Net increase (decrease) in net assets resulting from operations | (481,959 | ) | 19,919,670 | 1,735,427 | 6,163,453 | |||||||||||
NET DECREASE IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | ||||||||||||||||
| Contributions | 26,450 | 8,900,395 | 71,337 | 1,707,965 | ||||||||||||
| Withdrawals | (41,652,268 | ) | (73,460,711 | ) | (10,087,842 | ) | (15,461,186 | ) | ||||||||
| Net decrease in net assets resulting from beneficial interest transactions | (41,625,818 | ) | (64,560,316 | ) | (10,016,505 | ) | (13,753,221 | ) | ||||||||
| Total decrease in net assets | (42,107,777 | ) | (44,640,646 | ) | (8,281,078 | ) | (7,589,768 | ) | ||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 155,144,152 | 199,784,798 | 58,529,252 | 66,119,020 | ||||||||||||
| End of period | $ | 113,036,375 | $ | 155,144,152 | $ | 50,248,174 | $ | 58,529,252 | ||||||||
The accompanying notes are an integral part of these financial statements.
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Statements of Changes in Net Assets — (Continued)
| The Water Infrastructure Portfolio | The Multi-Disciplinary Portfolio | |||||||||||||||
| For the | For the | |||||||||||||||
| Six Months Ended | For the | Six Months Ended | For the | |||||||||||||
| June 30, 2011 | Year Ended | June 30, 2011 | Year Ended | |||||||||||||
| (Unaudited) | December 31, 2010 | (Unaudited) | December 31, 2010 | |||||||||||||
OPERATIONS: | ||||||||||||||||
| Net investment income | $ | 121,222 | $ | 270,250 | $ | 262,126 | $ | 60,260 | ||||||||
| Net realized gain (loss) on sale of investments, foreign currency and written options | 1,147,427 | (2,463,151 | ) | 173,846 | 111,002 | |||||||||||
| Net change in unrealized appreciation (depreciation) of investments, foreign currency and written options | (732,195 | ) | 806,163 | 124,779 | 154,643 | |||||||||||
| Net increase (decrease) in net assets resulting from operations | 536,454 | (1,386,738 | ) | 560,751 | 325,905 | |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM BENEFICIAL INTEREST TRANSACTIONS: | ||||||||||||||||
| Contributions | 1,072,837 | 10,339,696 | 12,555,714 | 3,080,316 | ||||||||||||
| Withdrawals | (7,445,451 | ) | (7,936,060 | ) | (212,528 | ) | (520,802 | ) | ||||||||
| Net increase (decrease) in net assets resulting from beneficial interest transactions | (6,372,614 | ) | 2,403,636 | 12,343,186 | 2,559,514 | |||||||||||
| Total increase (decrease) in net assets | (5,836,160 | ) | 1,016,898 | 12,903,937 | 2,885,419 | |||||||||||
NET ASSETS: | ||||||||||||||||
| Beginning of period | 24,223,087 | 23,206,189 | 4,208,049 | 1,322,630 | ||||||||||||
| End of period | $ | 18,386,927 | $ | 24,223,087 | $ | 17,111,986 | $ | 4,208,049 | ||||||||
The accompanying notes are an integral part of these financial statements.
165
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements
June 30, 2011 (Unaudited)
1. Organization
The Kinetics Portfolios Trust (the “Trust”) was organized as a Delaware Statutory Trust on March 14, 2000 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company issuing its beneficial interests in series, each series representing a distinct portfolio with its own investment objective and policies. The series currently authorized are: The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Water Infrastructure Portfolio and The Multi-Disciplinary Portfolio (collectively, the “Master Portfolios”). Pursuant to the 1940 Act, the Master Portfolios, are “non-diversified” series of the Trust. The Market Opportunities Portfolio commenced operations on January 31, 2006, The Water Infrastructure Portfolio commenced operations on June 29, 2007 and The Multi Disciplinary Portfolio commenced operations on February 11, 2008. Each of the remaining Master Portfolios commenced operations on April 28, 2000.
Each Master Portfolio is a Master Investment Portfolio in a master-feeder fund structure. Each Master Portfolio has multiple feeder funds invested in the Master Portfolio. By contributing assets to the Master Portfolio, the feeder funds receive a beneficial interest in the Master Portfolio. The Master Portfolio then invests the contributed assets in portfolio securities and allocates income, gains (losses) and expenses to the feeder funds based on the feeder funds’ proportionate interests in the Master Portfolio.
Each of the Master Portfolios, except for The Multi-Disciplinary Portfolio, seeks to provide investors with long-term capital growth. The Multi-Disciplinary Portfolio seeks to provide investors with total return. The Internet Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in the Internet and Internet-related activities. The Global Portfolio generally invests in the equity securities of foreign companies that have the ability to facilitate an increase in the growth of their traditional business lines and in U.S. companies benefiting from international economic growth. The Paradigm Portfolio invests primarily in the equity securities of U.S. and foreign companies that the investment adviser believes are undervalued and that have high returns on equity and are well positioned to reduce their costs, extend the reach of their distribution channels and experience significant growth in their assets or revenues. The Medical Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in medical research, pharmaceutical treatments and related medical technology industries and
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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 Water Infrastructure Portfolio invests primarily in securities and derivatives issued by U.S. and foreign companies engaged in water infrastructure and natural resources with a specific water theme and related activities. The Multi-Disciplinary Portfolio utilizes a two-part investment strategy, which includes fixed income and derivatives components.
2. Significant Accounting Policies
Security Valuation
Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the NYSE, “fair value” will be determined. Purchased non-exchange traded options, futures, unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the last reported sale price on an exchange on which the option is traded. If no sales are reported on a particular day, the mean between the highest bid and lowest asked quotations at the close of the exchanges will be used. Fixed-income securities (other than obligations having a maturity of 60 days or less) are normally valued on the basis of quotes obtained from pricing services, which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Other assets and securities for which no quotations are readily available
167
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
(including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. At June 30, 2011, 1.53%, 0.00%, 0.00%, and 0.00% of the net assets of The Internet Portfolio, The Paradigm Portfolio, The Medical Portfolio, and The Small Cap Portfolio, respectively, were fair valued securities.
Repurchase Agreements
Each Master Portfolio may enter into repurchase agreements with banks that are members of the Federal Reserve System or securities dealers who are members of a national securities exchange or are primary dealers in U.S. Government Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 100% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults, and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.
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.
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Foreign Currency Translations
The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market value of investment securities and other assets and liabilities are translated at the exchange rate of such currencies against the U.S. dollar, as provided by an approved pricing service, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. The Master Portfolios do not isolate and treat as ordinary income that portion of the results of operations arising as a result of changes in the exchange rate from the fluctuations arising from changes in the market prices of securities held during the period. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.
Restricted and Illiquid Securities
The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At June 30, 2011 the following Master Portfolio held securities restricted to institutional investors (144A Securities):
| Percentage | ||||||||
| Market Value | of Net Assets | |||||||
| The Multi-Disciplinary Portfolio | $ | 1,133,065 | 6.62 | % | ||||
An illiquid asset is any asset which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the Master Portfolio has valued the investment. At June 30, 2011, the following Master Portfolios held illiquid securities:
| Percentage | ||||||||
| Market Value | of Net Assets | |||||||
| The Internet Portfolio | $ | 1,891,145 | 1.53 | % | ||||
| The Paradigm Portfolio | $ | 10 | 0.00 | % | ||||
| The Medical Portfolio | $ | 0 | 0.00 | % | ||||
| The Small Cap Opportunities Portfolio | $ | 3 | 0.00 | % | ||||
When-Issued Securities
The Master Portfolios may purchase securities on a when-issued or delayed delivery basis. Although the purchase amounts of these securities are
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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.
Expense Allocation
Common expenses incurred by the Master Portfolios are allocated among the Master Portfolios (i) based upon relative average net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the Master Portfolios, depending on the nature of the expenditure. All expenses incurred by the Master Portfolios are allocated to the feeder funds daily based on their proportionate interests in the respective Master Portfolios.
Federal Income Taxes
Each Master Portfolio will be treated as a partnership for federal income tax purposes. As such, each investor in a Master Portfolio will be subject to taxation on its share of the Master Portfolio’s ordinary income and capital gains. It is intended that each Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of subchapter M of the Internal Revenue Code.
There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. As of June 30, 2011, open tax years include the tax years ended December 31, 2007 through 2010. The Master Portfolios are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.
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June 30, 2011 (Unaudited)
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Other
Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income is recognized on the accrual basis. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
3. Investment Adviser
Effective May 1, 2011, Kinetics Asset Management LLC, Kinetics Advisers, LLC, and Horizon Asset Management, LLC, together with various affiliates, became wholly-owned subsidiaries of a newly-formed entity, Horizon Kinetics LLC. 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. Under the terms of the Agreements, the Master Portfolios compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets.
For the six months ended June 30, 2011, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Water Infrastructure Portfolio and The Multi-Disciplinary Portfolio incurred expenses of $755,919, $33,422, $7,704,861, $198,545, $803,250, $331,747, $123,173 and $59,725, respectively, pursuant to the Agreements.
For the six months ended June 30, 2011, the Trust was allocated $12,000 for the services of the Chief Compliance Officer employed by the Adviser.
4. Approval of Investment Advisory Contracts by Trustees of Kinetics Portfolios Trust
At a meeting of the Board of Trustees of the Trust held on March 11, 2011, the Board, including all of the Trustees who are not interested persons under the 1940 Act (the “Independent Trustees”), approved the Agreements with
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
respect to each Master Portfolio. In reaching a decision to renew the Agreements, the Board of Trustees, including all of the Independent Trustees, considered, among others (1) the nature, extent and quality of the services provided by the Adviser, including what the Adviser had communicated that it had learned over the past year and the changes the Adviser had discussed as having made during the period; (2) the performance of the Master Portfolios over the previous three months as well as the one, three, five, and ten-year periods, as applicable, ended December 31, 2010, as compared to the relevant Lipper, Inc. (“Lipper”) peer group; (3) the contractual and actual compensation to be paid under the Agreements as compared to the compensation paid to relevant Lipper peer groups; (4) the expense ratios of the Master Portfolios, with expense waivers, as compared to expense ratios for relevant peer groups of Lipper portfolios; (5) the experience and qualifications of the Adviser’s personnel and the Adviser’s portfolio management capabilities and investment methodologies; (6) the Adviser’s operations, compliance program and policies with respect to the Code of Ethics; (7) the financial condition of the Adviser; (8) the cost of services to be provided by the Adviser and the Adviser’s profitability from each Master Portfolio for the year ended December 31, 2010; (9) the “fall-out” benefits to the Adviser and its affiliates from the relationship with the Master Portfolios; (10) the extent to which economies of scale are relevant given each Master Portfolios’ current asset size and current asset growth potential; and (11) that each Master Portfolio is designed for long-term investors. The Lipper peer group information was provided by U.S. Bancorp Fund Services, LLC, the Trust’s administrator. The Independent Trustees also discussed the continuing viability of the Master Portfolios. The Board of Trustees considered and discussed the pending reorganization among Kinetics Asset Management LLC, Kinetics Advisers, LLC and Horizon Asset Management, LLC.
The Board of Trustees, including a majority of the Independent Trustees, concluded that: they were satisfied with the quality of services provided by the Adviser in advising the Master Portfolios, the profits earned by the Adviser were reasonable in light of the nature, extent and quality of the services provided to each Master Portfolio; and that each Master Portfolio was not large enough to attain significant economies of scale. Based on the factors considered, the Board of Trustees, including a majority of the Independent Trustees, concluded that it was appropriate to renew the Agreements.
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June 30, 2011 (Unaudited)
5. Securities Transactions
Purchases and sales of investment securities, other than short-term investments, for the six months ended June 30, 2011 were as follows:
| Purchases | Sales | |||||||||||||||
| U.S. | U.S. | |||||||||||||||
| Government | Other | Government | Other | |||||||||||||
| The Internet Portfolio | $ | — | $ | 25,347,123 | $ | — | $ | 32,957,438 | ||||||||
| The Global Portfolio | — | 3,132,615 | — | 3,068,151 | ||||||||||||
| The Paradigm Portfolio | — | 505,310,342 | — | 587,830,683 | ||||||||||||
| The Medical Portfolio | — | 1,267,616 | — | 2,959,594 | ||||||||||||
| The Small Cap Opportunities Portfolio | — | 15,969,085 | — | 56,086,786 | ||||||||||||
| The Market Opportunities Portfolio | — | 6,072,078 | — | 16,752,267 | ||||||||||||
| The Water Infrastructure Portfolio | — | 1,164,963 | — | 630,967 | ||||||||||||
| The Multi-Disciplinary Portfolio | — | 11,496,779 | — | 2,194,581 | ||||||||||||
As of December 31, 2010, the cost of investments and unrealized appreciation (depreciation) on investment securities for federal income tax purposes was as follows:
| Net | ||||||||||||||||
| Unrealized | ||||||||||||||||
| Appreciation | Unrealized | Unrealized | Tax Cost of | |||||||||||||
| (Depreciation) | Appreciation | Depreciation | Investments | |||||||||||||
| The Internet Portfolio | $ | 45,780,455 | $ | 55,045,628 | $ | (9,265,173 | ) | $ | 107,981,610 | |||||||
| The Global Portfolio | 514,949 | 626,963 | (112,014 | ) | 5,326,364 | |||||||||||
| The Paradigm Portfolio | 228,453,024 | 360,791,025 | (132,338,001 | ) | 1,261,640,870 | |||||||||||
| The Medical Portfolio | 527,740 | 5,989,204 | (5,461,464 | ) | 40,963,881 | |||||||||||
| The Small Cap Opportunities Portfolio | 22,538,214 | 48,513,109 | (25,974,895 | ) | 173,109,281 | |||||||||||
| The Market Opportunities Portfolio | 4,483,119 | 12,417,832 | (7,934,713 | ) | 69,188,537 | |||||||||||
| The Water Infrastructure Portfolio | 2,163 | 551,721 | (549,558 | ) | 19,404,536 | |||||||||||
| The Multi-Disciplinary Portfolio | 62,862 | 104,758 | (41,896 | ) | 3,777,994 | |||||||||||
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
For the six months ended June 30, 2011, the Master Portfolios wrote the following options:
| Number | Premium | |||||||
| of Contracts | Amount | |||||||
The Water Infrastructure Portfolio | ||||||||
| Outstanding at the Beginning of the Year | 8,680 | $ | 1,687,618 | |||||
| Options Written | 4,537 | 792,214 | ||||||
| Options Expired | (7,445 | ) | (1,467,607 | ) | ||||
| Options Closed | (235 | ) | (70,572 | ) | ||||
| Options Exercised | (1,050 | ) | (138,134 | ) | ||||
| Outstanding at June 30, 2011 | 4,487 | $ | 803,519 | |||||
The Multi-Disciplinary Portfolio | ||||||||
| Outstanding at the Beginning of the Year | 1,027 | $ | 300,469 | |||||
| Options Written | 4,542 | 909,989 | ||||||
| Options Exercised | (164 | ) | (35,378 | ) | ||||
| Options Expired | (709 | ) | (170,291 | ) | ||||
| Options Closed | (154 | ) | (17,812 | ) | ||||
| Outstanding at June 30, 2011 | 4,542 | $ | 986,977 | |||||
6. Portfolio Securities Loaned
As of June 30, 2011, the Master Portfolios had loaned securities that were collateralized by cash. The cash collateral is invested by the custodian in a money market pooled account approved by the Adviser. Although risk is mitigated by the collateral, a Master Portfolio could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. The Master Portfolio receives interest on the collateral received as well as a fee for the securities loaned. The Master Portfolios will continue to receive dividends and interest on all securities loaned. Gain or loss in the fair value of the securities loaned that may occur during the term of the loan will be accounted for by the Master Portfolios. The value of the securities on loan and the value of the related collateral at June 30, 2011, were as follows:
| Securities | Collateral | |||||||
| The Internet Portfolio | $ | 48,206,745 | $ | 49,273,501 | ||||
| The Global Portfolio | 513,402 | 562,925 | ||||||
| The Paradigm Portfolio | 180,989,628 | 188,226,101 | ||||||
| The Medical Portfolio | 8,409,612 | 8,874,018 | ||||||
| The Small Cap Opportunities Portfolio | 18,371,855 | 18,973,978 | ||||||
| The Market Opportunities Portfolio | 10,018,029 | 10,281,357 | ||||||
| The Water Infrastructure Portfolio | 2,385,886 | 2,525,320 | ||||||
| The Multi-Disciplinary Portfolio | 2,434,401 | 2,481,435 | ||||||
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
7. Selected Financial Highlights
Financial highlights for the Master Portfolios were as follows:
| The Internet Portfolio | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | For the | For the | For the | For the | For the | |||||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 1.39 | %(1) | 1.37 | % | 1.37 | % | 1.34 | % | 1.34 | % | 1.39 | % | ||||||||||||
| After expense reduction | 1.39 | %(1) | 1.37 | % | 1.37 | % | 1.34 | % | 1.33 | % | 1.33 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | (0.65 | )%(1) | (0.33 | )% | (0.04 | )% | 1.59 | % | 1.58 | % | 0.17 | % | ||||||||||||
| After expense reduction | (0.65 | )%(1) | (0.33 | )% | (0.04 | )% | 1.59 | % | 1.59 | % | 0.23 | % | ||||||||||||
| Portfolio turnover rate | 21 | % | 12 | % | 14 | % | 19 | % | 15 | % | 11 | % | ||||||||||||
| (1) | Annualized. |
| The Global Portfolio | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | For the | For the | For the | For the | For the | |||||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 2.19 | %(1) | 2.43 | % | 2.81 | % | 2.46 | % | 1.99 | % | 1.62 | % | ||||||||||||
| After expense reduction | 2.19 | %(1) | 2.43 | % | 2.81 | % | 2.46 | % | 1.98 | % | 1.46 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 0.79 | %(1) | (0.51 | )% | (0.74 | )% | 0.83 | % | 3.73 | % | 2.78 | % | ||||||||||||
| After expense reduction | 0.79 | %(1) | (0.51 | )% | (0.74 | )% | 0.83 | % | 3.74 | % | 2.94 | % | ||||||||||||
| Portfolio turnover rate | 57 | % | 122 | % | 53 | % | 98 | % | 22 | % | 10 | % | ||||||||||||
| (1) | Annualized. |
| The Paradigm Portfolio | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | For the | For the | For the | For the | For the | |||||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 1.37 | %(1) | 1.36 | % | 1.36 | % | 1.33 | % | 1.33 | % | 1.40 | % | ||||||||||||
| After expense reduction | 1.37 | %(1) | 1.36 | % | 1.36 | % | 1.33 | % | 1.33 | % | 1.32 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 0.08 | %(1) | 0.83 | % | 1.15 | % | 0.86 | % | 0.75 | % | 0.85 | % | ||||||||||||
| After expense reduction | 0.08 | %(1) | 0.83 | % | 1.15 | % | 0.86 | % | 0.75 | % | 0.93 | % | ||||||||||||
| Portfolio turnover rate | 41 | % | 7 | % | 15 | % | 34 | % | 8 | % | 3 | % | ||||||||||||
| (1) | Annualized. |
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
| The Medical Portfolio | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | For the | For the | For the | For the | For the | |||||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 1.38 | %(1) | 1.39 | % | 1.43 | % | 1.42 | % | 1.49 | % | 1.44 | % | ||||||||||||
| After expense reduction | 1.38 | %(1) | 1.39 | % | 1.43 | % | 1.42 | % | 1.40 | % | 1.34 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 1.36 | %(1) | 0.55 | % | 1.14 | % | 1.02 | % | 0.42 | % | 0.33 | % | ||||||||||||
| After expense reduction | 1.36 | %(1) | 0.55 | % | 1.14 | % | 1.02 | % | 0.51 | % | 0.43 | % | ||||||||||||
| Portfolio turnover rate | 4 | % | 3 | % | 13 | % | 28 | % | 38 | % | 20 | % | ||||||||||||
| (1) | Annualized. |
| The Small Cap Opportunities Portfolio | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | For the | For the | For the | For the | For the | |||||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 1.43 | %(1) | 1.42 | % | 1.42 | % | 1.36 | % | 1.34 | % | 1.40 | % | ||||||||||||
| After expense reduction | 1.43 | %(1) | 1.42 | % | 1.42 | % | 1.36 | % | 1.31 | % | 1.27 | % | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 0.07 | %(1) | 0.02 | % | (0.05 | )% | 0.51 | % | 0.38 | % | 0.30 | % | ||||||||||||
| After expense reduction | 0.07 | %(1) | 0.02 | % | (0.05 | )% | 0.51 | % | 0.41 | % | 0.43 | % | ||||||||||||
| Portfolio turnover rate | 12 | % | 4 | % | 4 | % | 16 | % | 17 | % | 6 | % | ||||||||||||
| (1) | Annualized. |
| The Market Opportunities Portfolio | ||||||||||||||||||||||||
| For the | ||||||||||||||||||||||||
| Six Months | For the | For the | For the | For the | January 31, | |||||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | Year Ended | 2006ˆ through | |||||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 1.44 | %(1) | 1.42 | % | 1.42 | % | 1.36 | % | 1.44 | % | 1.81 | %(1) | ||||||||||||
| After expense reduction | 1.44 | %(1) | 1.42 | % | 1.42 | % | 1.36 | % | 1.44 | % | 1.61 | %(1) | ||||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||||||
| Before expense reduction | 0.33 | %(1) | 0.56 | % | 0.26 | % | 1.25 | % | 0.61 | % | 0.16 | %(1) | ||||||||||||
| After expense reduction | 0.33 | %(1) | 0.56 | % | 0.26 | % | 1.25 | % | 0.61 | % | 0.36 | %(1) | ||||||||||||
| Portfolio turnover rate | 11 | % | 12 | % | 14 | % | 77 | % | 14 | % | 0 | % | ||||||||||||
| ˆ | Commencement of operations. |
| (1) | Annualized. |
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Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
| The Water Infrastructure Portfolio | ||||||||||||||||||||
| For the | ||||||||||||||||||||
| Six Months | For the | For the | For the | June 29, | ||||||||||||||||
| Ended | Year Ended | Year Ended | Year Ended | 2007ˆ through | ||||||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||||||
| Before expense reduction | 1.39 | %(1) | 1.47 | % | 1.49 | % | 1.49 | % | 2.01 | %(1) | ||||||||||
| After expense reduction | 1.39 | %(1) | 1.47 | % | 1.49 | % | 1.49 | % | 2.01 | %(1) | ||||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||||||
| Before expense reduction | 1.23 | %(1) | 1.04 | % | 0.63 | % | 1.27 | % | 0.96 | %(1) | ||||||||||
| After expense reduction | 1.23 | %(1) | 1.04 | % | 0.63 | % | 1.27 | % | 0.96 | %(1) | ||||||||||
| Portfolio turnover rate | 6 | % | 111 | % | 45 | % | 66 | % | 7 | % | ||||||||||
| ˆ | Commencement of operations. |
| (1) | Annualized. |
| The Multi-Disciplinary Portfolio | ||||||||||||||||
| For the | ||||||||||||||||
| Six Months | For the | For the | February 11, | |||||||||||||
| Ended | Year Ended | Year Ended | 2008ˆ through | |||||||||||||
| June 30, 2011 | December 31, | December 31, | December 31, | |||||||||||||
| (Unaudited) | 2010 | 2009 | 2008 | |||||||||||||
| Ratio of expenses to average net assets: | ||||||||||||||||
| Before expense reduction | 1.55 | %(1) | 2.41 | % | 3.66 | % | 5.09 | %(1) | ||||||||
| After expense reduction | 1.55 | %(1) | 2.41 | % | 3.66 | % | 5.09 | %(1) | ||||||||
| Ratio of net investment income (loss) to average net assets: | ||||||||||||||||
| Before expense reduction | 5.49 | %(1) | 2.58 | % | (1.20 | )% | (3.49 | )%(1) | ||||||||
| After expense reduction | 5.49 | %(1) | 2.58 | % | (1.20 | )% | (3.49 | )%(1) | ||||||||
| Portfolio turnover rate | 28 | % | 38 | % | 77 | % | N/A(2 | ) | ||||||||
| ˆ | Commencement of operations. |
| (1) | Annualized. |
| (2) | The Portfolio did not hold any long-term securities during the period, therefore the portfolio turnover is not applicable. |
8. Summary of Fair Value Exposure
Various inputs are used in determining the value of the Master Portfolios’ 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 the Trust has the ability to access.
Level 2 — Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions a market participant would use in
177
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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 Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 116,759,262 | ˆ | $ | 5,111 | (1) | $ | 1,891,145 | (2) | $ | 118,655,518 | |||||
| Escrow Notes | — | — | — | * | — | * | ||||||||||
| Rights | 979,256 | — | — | 979,256 | ||||||||||||
| Short-Term Investments | 3,975,558 | — | — | 3,975,558 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 49,273,501 | — | — | 49,273,501 | ||||||||||||
| Total Investments in Securities | $ | 170,987,577 | $ | 5,111 | $ | 1,891,145 | $ | 172,883,833 | ||||||||
| * | Amount is less than $0.50. |
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industry: |
| Telecommunications | 5,111 |
| (2) | The Common Stocks Level 3 balance consists of the market values of the associated Level 3 investments in the following industries: |
| European Exchanges | $ | 1,891,145 | ||
| Special Purpose Entity | — | * | ||
| $ | 1,891,145 | |||
| Transfers out of Level 2 into Level 1 | $ | 1,211,112 | ||
| Transfers out of Level 1 and into Level 3 | $ | 1,891,145 |
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Transfers were made into Level 3 due to a lack of market activity. Transfers were made out of Level 2 and 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:
| Investments in | ||||
Description | Securities | |||
| Balance as of December 31, 2010 | $ | 502 | ||
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | — | |||
| Change in unrealized appreciation (depreciation) | (502 | ) | ||
| Purchases | — | |||
| Sales | — | |||
Transfer in and/or out of Level 3 | 1,891,145 | |||
| Balance as of June 30, 2011 | $ | 1,891,145 | ||
| * | Amount is less than $0.50. |
The Global Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 5,171,834 | ˆ | $ | — | $ | — | $ | 5,171,834 | * | ||||||
| Warrants | 653 | — | — | 653 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 562,925 | — | — | 562,925 | ||||||||||||
| Total Investments in Securities | $ | 5,735,412 | $ | — | $ | — | $ | 5,735,412 | ||||||||
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
The Paradigm Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 1,140,142,699 | ˆ | $ | — | $ | — | $ | 1,140,142,699 | |||||||
| Escrow Notes | — | — | — | * | — | * | ||||||||||
| Convertible Bonds | — | 5,467,500 | 5,467,500 | |||||||||||||
| Corporate Bonds | — | — | 10 | 10 | ||||||||||||
| Short-Term Investments | 43,588,609 | — | — | 43,588,609 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 188,226,101 | — | — | 188,226,101 | ||||||||||||
| Total Investments in Securities | $ | 1,371,957,409 | $ | 5,467,500 | $ | 10 | $ | 1,377,424,919 | ||||||||
| * | Amount is less than $0.50. |
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
| Transfers out of Level 2 and into Level 3 | $ | 10 |
Transfers were made out of Level 2 due to a lack of market activity.
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
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:
| Investments in | ||||
Description | Securities | |||
| Balance as of December 31, 2010 | $ | — | * | |
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | — | |||
| Change in unrealized appreciation (depreciation) | — | |||
| Purchases | — | |||
| Sales | — | |||
Transfer in and/or out of Level 3 | 10 | |||
| Balance as of June 30, 2011 | $ | 10 | ||
| * | Amount is less than $0.50. |
The Medical Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 32,859,299 | ˆ | $ | — | $ | — | $ | 32,859,299 | |||||||
| Escrow Notes | — | — | — | * | — | * | ||||||||||
| Rights | 37,447 | 3,964 | (1) | — | 41,411 | |||||||||||
| Short-Term Investments | 1,693,121 | — | — | 1,693,121 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 8,874,018 | — | — | 8,874,018 | ||||||||||||
| Total Investments in Securities | $ | 43,463,885 | $ | 3,964 | $ | — | * | $ | 43,467,849 | |||||||
| * | Amount is less than $0.50. |
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
| (1) | The Rights Level 2 balance consists of the market value of the associated Level 2 investments in the following industry: |
| Funds, Trusts, and Other Financial Vehicles | $ | 3,964 |
| Transfers into Level 2 out of Level 1 | $ | 3,964 |
Transfers were made out of Level 1 and into Level 2 due to a lack of market activity.
Transfers between levels are recognized at the end of the reporting period.
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Investments in | ||||
Description | Securities | |||
| Balance as of December 31, 2010 | $ | — | * | |
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | — | |||
| Change in unrealized appreciation (depreciation) | — | |||
| Purchases | — | |||
| Sales | — | |||
Transfer in and/or out of Level 3 | — | |||
| Balance as of June 30, 2011 | $ | — | * | |
| * | Amount is less than $0.50. |
The Small Cap Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 108,066,769 | ˆ | $ | 4,267,760 | (1) | $ | — | $ | 112,334,529 | ||||||
| Corporate Bonds | — | — | 3 | 3 | ||||||||||||
| Rights | 450,785 | — | — | 450,785 | ||||||||||||
| Short-Term Investments | 802,423 | — | — | 802,423 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 18,973,978 | — | — | 18,973,978 | ||||||||||||
| Total Investments in Securities | $ | 128,293,955 | $ | 4,267,760 | $ | 3 | $ | 132,561,718 | ||||||||
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries: |
| Asset Management | $ | 2,160,780 | ||
| Oil and Gas Extraction | 2,053,940 | |||
| Real Estate | 1,155 | |||
| Telecommunications | 51,885 | |||
| $ | 4,267,760 | |||
| Transfers into Level 2 out of Level 1 | $ | 2,089,060 | ||
| Transfers out of Level 2 into Level 3 | $ | 3 |
Transfers were made out of Level 1 and into Level 2 due to a lack of market activity. Transfers were made out of Level 2 and into Level 3 due to a lack of market activity.
Transfers between levels are recognized at the end of the reporting period.
181
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| Investments in | ||||
Description | Securities | |||
| Balance as of December 31, 2010 | $ | — | ||
| Accrued discounts/premiums | — | |||
| Realized gain (loss) | — | |||
| Change in unrealized appreciation (depreciation) | — | |||
| Purchases | — | |||
| Sales | — | |||
Transfer in and/or out of Level 3 | 3 | |||
| Balance as of June 30, 2011 | $ | 3 | ||
The Market Opportunities Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 49,253,632 | ˆ | $ | 535,117 | (1) | $ | — | $ | 49,788,749 | ||||||
| Short-Term Investments | 542,126 | — | — | 542,126 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 10,281,357 | — | — | 10,281,357 | ||||||||||||
| Total Investments in Securities | $ | 60,077,115 | $ | 535,117 | $ | — | $ | 60,612,232 | ||||||||
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
| (1) | The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industry: |
| Asset Management | $ | 535,117 |
The Water Infrastructure Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Common Stocks | $ | 2,194,181 | ˆ | $ | — | $ | — | $ | 2,194,181 | |||||||
| Convertible Bonds | — | 3,139,481 | — | 3,139,481 | ||||||||||||
| Corporate Bonds | — | 5,158,478 | — | 5,158,478 | ||||||||||||
| Warrants | — | 6,400 | — | 6,400 | ||||||||||||
| Short-Term Investments | 2,136,875 | — | — | 2,136,875 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 2,525,320 | — | — | 2,525,320 | ||||||||||||
| Total Investments in Securities | $ | 6,856,376 | $ | 8,304,359 | $ | — | $ | 15,160,735 | ||||||||
| Put Options Written | $ | — | $ | (424,570 | ) | $ | — | $ | (424,570 | ) | ||||||
| ˆ | See Portfolio of Investments for breakout of common stocks by industry classification. |
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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
The Multi-Disciplinary Portfolio
The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2011:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Convertible Bonds | $ | — | $ | 4,215,012 | $ | — | $ | 4,215,012 | ||||||||
| Corporate Bonds | — | 7,664,336 | — | 7,664,336 | ||||||||||||
| Municipal Bonds | — | 1,505,000 | — | 1,505,000 | ||||||||||||
| Short-Term Investments | 1,250,229 | — | — | 1,250,229 | ||||||||||||
| Investments Purchased with the Cash | ||||||||||||||||
| Proceeds from Securities Lending | 2,481,435 | — | — | 2,481,435 | ||||||||||||
| Total Investments in Securities | $ | 3,731,664 | $ | 13,384,348 | $ | — | $ | 17,116,012 | ||||||||
| Put Options Written | $ | — | $ | (745,861 | ) | $ | — | $ | (745,861 | ) | ||||||
9. Disclosures about Derivative Instruments and Hedging Activities
The Master Portfolios have adopted enhanced disclosure regarding derivatives and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why a Master Portfolio uses derivatives, how derivatives are accounted for by the Master Portfolios, and how derivative instruments affect a Master Portfolio’s results of operations and financial position. The Master Portfolios utilized options to implement or to gain further exposure to their respective investment strategies.
The Water Infrastructure Portfolio
Statement of Assets and Liabilities
Fair Values of derivative instruments as of June 30, 2011:
| Assets | Liabilities | |||||||||||||
Equity Contracts | Description | Fair Value | Description | Fair Value | ||||||||||
| Purchased Options | Investments* | $ | — | |||||||||||
| Written option | ||||||||||||||
| Written Options | contracts, at value | $ | 424,570 | |||||||||||
| Total | $ | — | $ | 424,570 | ||||||||||
| * | Purchased options are included in investments with other long positions. |
183
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Statement of Operations
The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2011:
Amount of Realized Gain on Equity Contracts
Equity Contracts | ||||
| Purchased Options | $ | — | ** | |
| Written Options | 1,532,820 | |||
| Total | $ | 1,532,820 | ||
| ** | Purchased options are included with investments. |
Change in Unrealized Depreciation on Equity Contracts
Equity Contracts | ||||
| Purchased Options | $ | — | *** | |
| Written Options | (789,331 | ) | ||
| Total | $ | (789,331 | ) | |
| *** | Purchased options are included with investments. |
The Water Infrastructure Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For the six months ended June 30, 2011: no long option contracts were purchased and $0 premiums were paid, written option contracts (4,537 contracts) were opened and $792,214 premiums were received during the period.
The Multi-Disciplinary Portfolio
Statement of Assets and Liabilities
Fair Values of derivative instruments as of June 30, 2011:
| Assets | Liabilities | |||||||||||||
Equity Contracts | Description | Fair Value | Description | Fair Value | ||||||||||
| Purchased Options | Investments* | $ | — | |||||||||||
| Written option | ||||||||||||||
| Written Options | contracts, at value | $ | 745,861 | |||||||||||
| Total | $ | — | $ | 745,861 | ||||||||||
| * | Purchased options are included in investments with other long positions. |
184
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
Statement of Operations
The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2011:
Amount of Realized Gain on Equity Contracts
Equity Contracts | ||||
| Purchased Options | $ | — | ** | |
| Written Options | 175,872 | |||
| Total | $ | 175,872 | ||
| ** | Purchased options are included with investments. |
Change in Unrealized Appreciation on Equity Contracts
Equity Contracts | ||||
| Purchased Options | $ | — | *** | |
| Written Options | 70,510 | |||
| Total | $ | 70,510 | ||
| *** | Purchased options are included with investments. |
The Multi-Disciplinary Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For the six months ended June 30, 2011: no long option contracts were purchased and $0 premiums were paid, written option contracts (4,542 contracts) were opened and $909,989 premiums were received during the period.
10. New Accounting Pronouncement
In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” in GAAP and the International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact the update will have on its financial statement disclosures.
11. Subsequent Events
In preparing these financial statements, management has evaluated Portfolio related events and transactions for potential recognition or disclosure through
185
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Notes to Financial Statements — (Continued)
June 30, 2011 (Unaudited)
the date the financial statements were issued. There were no events or translations that occurred during the period that materially impacted the amounts or disclosures in the Portfolios’ financial statements.
12. Tax Information
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Portfolios. In general, the provisions of the Act will be effective for the Master Portfolios’ fiscal year ending December 31, 2011. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Master Portfolio’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers. Relevant information regarding the impact of the Act on the Master Portfolios, if any, will be contained within the “Federal Taxes” section of the financial statement notes for the fiscal year ending December 31, 2011.
13. Information about Proxy Voting
Information regarding how Kinetics Portfolios Trust votes proxies relating to portfolio securities is available without charge upon request by calling toll-free at 1-800-930-3828 or by accessing the Funds’ website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.
14. Information about the Portfolio Holdings
The Kinetics Portfolios Trust files its complete schedules of portfolio holdings for its first and third fiscal quarters with the SEC on Form N-Q. The Portfolios’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. The Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
186
Kinetics Mutual
Funds, Inc.
615 East Michigan Street
Milwaukee, WI 53202
INVESTMENT ADVISER AND
SHAREHOLDER SERVICING AGENT
Kinetics Asset Management LLC
555 Taxter Road
Suite 175
Elmsford, NY 10523
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Tait, Weller & Baker LLP
1818 Market Street
Suite 2400
Philadelphia, PA 19103
DISTRIBUTOR
Kinetics Funds Distributor, LLC
555 Taxter Road
Suite 175
Elmsford, NY 10523
ADMINISTRATOR
FUND ACCOUNTANT AND
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
CUSTODIAN
U.S. Bank, N.A.
Custody Operations
1555 River Center Drive, Suite 302
Milwaukee, WI 53212
THIS MATERIAL MUST BE PRECEDED OR
ACCOMPANIED BY A PROSPECTUS
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Schedule of Investments.
The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
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 |
1
| 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) Not applicable. |
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
(3) Not applicable to open-end investment companies.
| (b) | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust
| By (Signature and Title)* | /s/ Peter B. Doyle | |||
| Peter B. Doyle, President |
Date September 6, 2011
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 |
Date September 6, 2011
| By (Signature and Title)* | /s/ Leonid Polyakov |
Date September 6, 2011
| * | Print the name and title of each signing officer under his or her signature. |
3