ThZeal - The Zeal

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09303 & 811-09923

Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust

(Exact name of registrant as specified in charter)

470 Park Avenue South

New York, NY 10016

(Address of principal executive offices) (Zip code)

U.S. Bancorp Fund Services, LLC

615 E. Michigan Street

Milwaukee, WI 53202

(Name and address of agent for service)

(800) 930-3828

Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2014

Date of reporting period: June 30, 2014

Item 1. Report to Stockholders.

KINETICS MUTUAL FUNDS, INC.

Table of Contents

June 30, 2014

	Page
Shareholders’ Letter	2
Year 2014 Semi-Annual Investment Commentary	5
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS
Expense Example	9
Statements of Assets & Liabilities	16
Statements of Operations	20
Statements of Changes in Net Assets	24
Notes to Financial Statements	35
Financial Highlights	50
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Portfolio Assets	79
Portfolio of Investments — The Internet Portfolio	87
Portfolio of Investments — The Global Portfolio	92
Portfolio of Investments — The Paradigm Portfolio	97
Portfolio of Investments — The Medical Portfolio	103
Portfolio of Investments — The Small Cap Opportunities Portfolio	106
Portfolio of Investments — The Market Opportunities Portfolio	111
Portfolio of Investments — The Alternative Income Portfolio	115
Portfolio of Investments — The Multi-Disciplinary Portfolio	125
Portfolio of Options Written — The Alternative Income Portfolio	134
Portfolio of Options Written — The Multi-Disciplinary Portfolio	167
Statements of Assets & Liabilities	178
Statements of Operations	182
Statements of Changes in Net Assets	186
Notes to Financial Statements	190

KINETICS MUTUAL FUNDS, INC.

Shareholders’ Letter

Dear Fellow Shareholders:

We are pleased to present the Kinetics Mutual Funds (“Funds”) Semi-Annual Report for the six-month period ended June 30, 2014. Equity markets have continued to advance during the first half of the year, albeit at a slower pace than in 2013. We believe that this advance is rooted in fundamentals for most companies; however, there are pockets of speculative excesses that have been enabled and encouraged by sustained low borrowing costs. Tempting as they may be, we strongly believe that stocks with speculative valuations should be avoided, as a small change in sentiment and/or earnings momentum can result in large, possibly permanent, losses. This strategy has resulted in modest underperformance for most of the Funds on a year-to-date basis, although we are confident that this is a temporary phenomenon. The Funds (No-Load Class) appreciated as follows during the first half of the year: The Paradigm Fund +4.66%, The Multi-Disciplinary Income Fund +4.90%, The Small Cap Opportunities Fund +3.81%, The Market Opportunities Fund +0.51%, The Internet Fund -2.38%, The Medical Fund +9.67%, The Alternative Income Fund +2.67%, and The Global Fund +2.81%. This compares to returns of +7.14% for the S&P 500 Index and +6.18% for the MSCI All Country World Index.

As a security’s valuation increases, so too does the risk of owning the security, because there is inherently a lower potential for upside, and additional future growth and profitability has already been reflected in the price. U.S. equity markets have risen considerably for over 5 years, resulting in increased risk for investors, but we believe that most equities still evidence significant, potential long-term upside, thereby justifying the investment risk. It is of the utmost importance for us to remain disciplined in assessing potential upside, compared to relative risk, as market prices now reflect varying degrees of positive developments for individual companies and economies alike. Our investment approach is based on our extended investment time horizon; thus, we are not overly concerned with short-term results, instead emphasizing potential cash flows and asset values over the next three to five years. This approach doesn’t fit precisely within either classic value or growth investing strategies, as we attempt to avoid making such classifications. Ideally, we are currently buying companies that are fairly valued based upon current asset values and cash flows, yet have “free” exposure to future growth potential. Frequently, such companies do not yet have visible drivers for revenue or earnings expansion, and thus are not closely followed by growth investors, and therefore have not been driven up in price. In short, we believe many of the “obvious” bargains in

the equity markets are no longer available at attractive prices. However, fortunes have been made buying excellent companies at fair prices—this is the current emphasis of our investment strategy.

Our equity investment process aims to identify underpriced securities primarily by extending our time horizon and identifying securities that are prone to mispricing using prevailing investment approaches. Similarly, we believe that we can exploit this strategy in certain Funds through the options market, which is also prone to mispricing. Options are primarily priced based upon implied volatility, which in turn is based on the standard deviation of the returns of the underlying equity. Note that we wrote “based on” the experienced volatility of the underlying equity, not “directly driven by”, as options are based upon implied volatility. Implied volatility tends to be higher than experienced volatility, which is directly attributable to the fact that investors are willing to pay a premium for protection from experienced volatility. This dynamic enables us to utilize a put-writing strategy in two of the Funds1 that effectively earns the aforementioned premiums in exchange for assuming the price volatility of the equity. We are able to do so with confidence because we have done extensive valuation work on most of the companies’ underlying the put options, and believe them to be attractively priced. The strategy, which can be made more conservative by writing out-of-the-money puts, or more aggressive by writing at-the-money puts, generally results in an attractive cash flow stream. The strategy has historically outperformed equity indexes in down markets, while trailing in sharply rising markets, and has the potential to significantly outperform in range bound markets. These strategies offer a compelling complement to an investor’s equity allocation, due to the varying performance drivers.

Shareholders can continue to access additional information from our website, www.kineticsfunds.com. This website provides a broad array of information, including recent portfolio holdings, quarterly investment commentaries, conference call transcripts, newsflashes, recent performance data, and online access to account information.

Kinetics offers the following funds to investors:

The Paradigm Fund focuses on companies that are valued attractively and currently have, or are expected to soon have, sustainable high business returns. The Fund has produced attractive returns since its inception in an environment that should be described as difficult for equity investors. The Paradigm Fund is Kinetics’ flagship fund.


1	This options strategy is used in The Multi-Disciplinary Income Fund and The Alternative Income Fund.

The Multi-Disciplinary Income Fund seeks to utilize stock options and fixed-income investments in order to provide investors with equity-like returns, but with more muted volatility. At times, the options strategies of the Fund may cause the manager to purchase equity securities.

The Small Cap Opportunities Fund focuses on undervalued and special situation small capitalization equities that have the potential for rewarding long-term investment results. The same investment fundamentals employed by The Paradigm Fund are used to identify such opportunities.

The Medical Fund is a sector fund, offering an investment in scientific discovery within the promising field of medical research, particularly in the development of cancer treatments and therapies. As a sector fund, The Medical Fund is likely to have heightened volatility.

The Internet Fund is a sector fund that focuses on companies engaged in the evolution of Internet-related developments. As such, this Fund has been, and is likely to continue to be, quite volatile. 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 focuses on selecting long life cycle international companies that can generate long-term wealth through their business operations. This Fund is presently finding exciting opportunities in the more developed markets.

The Market Opportunities Fund focuses on those companies that benefit from increasing transactional volume or throughput, such as publicly-traded exchanges and credit card processors, or companies that act as facilitators, such as gaming companies, airports and publicly-traded toll roads.

The Alternative Income Fund seeks to provide current income and gains, with a secondary objective of obtaining long-term growth of capital. The Fund utilizes stock options and fixed income investments in order to generate a total return with limited market value variability.

The Kinetics Investment Team

KINETICS MUTUAL FUNDS, INC.

Investment Commentary

Dear Fellow Shareholders,

One of the most difficult evaluations for professional investors, and ultimately their clients, is the notion of risk and reward. Academic attempts to quantify these figures are well-intentioned, yet noticeably lacking in results. The truth is that there is no valid quantifiable method to gauge risk and reward, because prices are set by human beings, and hence are subject to human behavior, which is hardly quantifiable. All that we can do is make an educated assessment of asset values and cash flows under varying scenarios, and then assess the likelihood of each scenario. Even if we are able to precisely predict these values, we must then subject them to critical discount rate and growth assumptions. It is prudent to use very conservative assumptions for both, which we do, and if the company still appears to offer value, we consider making an investment. The good news is that we are still able to identify many such companies, while the less-good news is that the overall market is approaching valuation levels that cannot be justified using our high discount rate/low growth rate assumptions. As markets trend higher yet, to almost fix the levels seen during the 2009 nadir1, we are continuously calculating which future variables are discounted in current prices. Again, assuming a high discount rate (which is consistent with our high hurdle rate of return), we believe there is a good likelihood for many companies to achieve these rates. However, for many other companies, their current valuations can only be justified when very ambitious assumptions are made in terms of discount rates, growth, and profitability. This reminds us of the infamous 2007 quote of former Citigroup CEO Chuck Prince: “But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” Investors in such companies continue to dance, seemingly ignoring what happens when the music stops and the valuations are ultimately reconciled with fundamentals.

Many people might believe that investors in the aforementioned companies that are trading at aggressive valuations are driven simply by greed. True, these companies may offer very large gains in a short period of time, yet this is frequently paired with the potential for rapid losses. Rather than disparage such investors for imprudence, one must consider the “institutional imperative” to continue dancing. This is the imperative to keep pace with your benchmark index every week, month, quarter, and year, as clients are not likely to tolerate


1	For the S&P 500 Index

underperformance for very long. Few investment managers enjoy the long-term investment horizon that permits them to truly reduce risk in a meaningful manner during increasingly speculative markets. Of course we, too, are subject to this imperative to a certain degree, but we attempt to alleviate this perpetual pressure by communicating our long-term outlook to investors and remaining benchmark agnostic. The first factor sometimes seems futile, and of course we understand when our investors become impatient, but the latter factor truly allows us to avoid areas that we believe are excessively valued. For example, we have always maintained a very low exposure to pure technology companies for the simple reason that we have minimal visibility into the prospects for these companies beyond the current product cycle. Just consider the variety of once-mighty technology firms that are now facing obsolescence. An index-conscious investor may also appreciate this dynamic, but is still compelled to own these companies due to his or her desire to minimize index tracking error. It doesn’t make logical sense to do so, but these are the established parameters in mainstream investment management.

We do not mean to raise alarm with our shareholders, but to inform them that there are pockets of risky companies in the marketplace, and we expect to forego owning such companies. This may be a trying experience, as low rates and easy access to capital have the potential to drive these companies higher yet. In contrast, we continue to hold many of the companies that have led to our strong post-crisis performance, which we are still able to discount at appropriately high rates, and still justify the values. So long as we are able to do this, we expect to hold course in the Funds and maintain a very low turnover. For investors that may be even more risk averse (compared to our high hurdle discount rates), we urge these individuals to consider our option income strategies that can potentially achieve equity-like returns with lower realized volatility and greater downside protection. In our opinion, these strategies offer benefits when compared to conventional yield-oriented strategies such as traditional bonds, leveraged loans, real estate investment trusts, or master limited partnerships.

Disclosure

This material is intended to be reviewed in conjunction with a current prospectus, which includes all fees and expenses that apply to a continued investment, as well as information regarding the risk factors, policies and objectives of the Funds. Read it carefully before investing.

Mutual Fund investing involves risk. Principal loss is possible. Because The Internet Fund, The Medical Fund and The Market Opportunities Fund invest in a single industry or geographic region, their shares are subject to a higher degree of risk than funds with a higher level of diversification. Internet, biotechnology and certain capital markets or gaming stocks are subject to a rate of change in technology, obsolescence and competition that is generally higher than that of other industries, hence they may experience extreme price and volume fluctuations.

International investing [for all Funds] presents special risks including currency exchange fluctuation, government regulations, and the potential for political and economic instability. Accordingly, the share prices for these Funds are expected to be more volatile than that of U.S.-only funds. Past performance is no guarantee of future performance.

Because smaller companies [for The Small Cap Opportunities Fund] often have narrower markets and limited financial resources, they present more risk than larger, more well established, companies.

Non-investment grade debt securities [for all Funds], i.e., junk bonds, are subject to greater credit risk, price volatility and risk of loss than investment grade securities.

Further, options contain special risks including the imperfect correlation between the value of the option and the value of the underlying asset. Investments [for The Multi- Disciplinary Fund and The Alternative Income Fund] in futures, swaps and other derivative instruments may result in loss as derivative instruments may be illiquid, difficult to price and leveraged so that small changes may produce disproportionate losses to the Funds. To the extent the Funds segregate assets to cover derivative positions, they may impair their ability to meet current obligations, to honor requests for redemption and to manage the investments in a manner consistent with their

respective investment objectives. Purchasing and writing put and call options and, in particular, writing “uncovered” options are highly specialized activities that entail greater than ordinary investment risk.

As non-diversified Funds [except The Global Fund and The Multi-Disciplinary Fund] the value of Fund shares may fluctuate more than shares invested in a broader range of industries and companies. Unlike other investment companies that directly acquire and manage their own portfolios of securities, The Kinetics Mutual Funds pursue their investment objectives by investing all of their investable assets in a corresponding portfolio series of the Kinetics Portfolios Trust.

The information concerning the Funds included in the shareholder report contains certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.

The Nasdaq Composite (NASDAQ) and the Standard & Poor’s 500 Index (S&P 500) each represent an unmanaged, broad-basket of stocks. They are typically used as a proxy for overall market performance.

Distributor: Kinetics Funds Distributor LLC is not an affiliate of Kinetics Mutual Funds, Inc. Kinetics Funds Distributor LLC is an affiliate of Kinetics Asset Management LLC, Investment Adviser to Kinetics Mutual Funds, Inc.

For more information, log onto www.kineticsfunds.com. July 1, 2014 — Kinetics Asset Management LLC®

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example

June 30, 2014 (Unaudited)

Shareholders incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, reinvestments of dividends or other distributions made by a Fund, redemption fees, and exchange fees, and (2), ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help investors understand the ongoing costs (in dollars) of investing in a series of Kinetics Mutual Funds, Inc. (each a “Feeder Fund” and collectively the “Feeder Funds”), and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested on January 1, 2014 and held for the entire period from January 1, 2014 to June 30, 2014.

Actual Expenses

The first line and second line items of the table below provide information about actual account values and actual expenses before and after expense reimbursement. Unlike other mutual funds that directly acquire and manage their own portfolio securities, each Feeder Fund invests all or generally all of its investable assets in a corresponding series of The Kinetics Portfolios Trust (each, a “Master Portfolio”, and together the “Master Portfolios”), a separately registered investment company. The Master Portfolio, in turn, invests in securities. With this type of organization, expenses can accrue specifically to the Master Portfolio or the Feeder Fund or both. Each Feeder Fund records its proportionate share of the Master Portfolio’s expenses, including directed brokerage credits, on a daily basis. Any expense reductions include Fund-specific expenses as well as the expenses allocated from the Master Portfolio.

The Feeder Funds will charge shareholder fees for outgoing wire transfers, returned checks, and exchanges executed by telephone between a Feeder Fund and any other Feeder Fund. The Feeder Funds’ transfer agent charges a $5.00 transaction fee to shareholder accounts for telephone exchanges between any two Feeder Funds. The Feeder Funds’ transfer agent does not charge a transaction fee for written exchange requests. IRA accounts are assessed a $15.00 annual fee. Finally, as a disincentive to market-timing transactions, the Feeder Funds will assess a 2.00% fee on the redemption or exchange of Fund shares held for less than 30 days. These fees will be paid to the Feeder Funds to help offset transaction costs. The Feeder Funds reserve the right to waive the redemption fee, subject to their sole discretion, in instances deemed not to be disadvantageous to the Feeder Funds or shareholders as described in the Feeder Funds’ prospectus.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example — (Continued)

June 30, 2014 (Unaudited)

You may use the information provided in the first line, together with the amounts you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The third and fourth line items of the table below provide information about hypothetical account values and hypothetical expenses before and after expense reimbursements based on the Feeder Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Feeder Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses one paid for the period. You may use this information to compare the ongoing costs of investing in the Feeder Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight one’s ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help one determine the relative total costs of owning different funds. If these transactional costs had been included, one’s costs would have been higher.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example — (Continued)

June 30, 2014 (Unaudited)


								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/14 to
	( 1/1/14)		( 6/30/14)		Ratio			6/30/14)
The Internet Fund
No Load Class Actual	$	1,000.00	$	976.20		1.78	%	$	8.72
No Load Class Hypothetical (5% return
before expenses)	$	1,000.00	$	1,015.97		1.78	%	$	8.90
Advisor Class A Actual	$	1,000.00	$	975.10		2.03	%	$	9.94
Advisor Class A Hypothetical (5% return
before expenses)	$	1,000.00	$	1,014.73		2.03	%	$	10.14
Advisor Class C Actual	$	1,000.00	$	972.60		2.53	%	$	12.37
Advisor Class C Hypothetical (5% return
before expenses)	$	1,000.00	$	1,012.25		2.53	%	$	12.62

The Global Fund
No Load Class Actual — after
expense reimbursement	$	1,000.00	$	1,028.10		1.39	%	$	6.99
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 — after
expense reimbursement	$	1,000.00	$	1,028.20		1.64	%	$	8.25
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 — after
expense reimbursement	$	1,000.00	$	1,023.70		2.14	%	$	10.74
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,014.19		2.14	%	$	10.69

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example — (Continued)

June 30, 2014 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/14 to
	( 1/1/14)		( 6/30/14)		Ratio			6/30/14)
The Paradigm Fund
No Load Class Actual — after
expense reimbursement	$	1,000.00	$	1,046.60		1.64	%	$	8.32
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 — after
expense reimbursement	$	1,000.00	$	1,045.30		1.89	%	$	9.58
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 — after
expense reimbursement	$	1,000.00	$	1,042.90		2.39	%	$	12.11
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,012.95		2.39	%	$	11.93
Institutional Class Actual — after
expense reimbursement	$	1,000.00	$	1,047.50		1.44	%	$	7.31
Institutional Class Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,017.66		1.44	%	$	7.20

The Medical Fund
No Load Class Actual — after
expense reimbursement	$	1,000.00	$	1,096.70		1.39	%	$	7.23
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 — after
expense reimbursement	$	1,000.00	$	1,095.20		1.64	%	$	8.52
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 — after
expense reimbursement	$	1,000.00	$	1,092.20		2.14	%	$	11.10
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,014.19		2.14	%	$	10.69

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example — (Continued)

June 30, 2014 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/14 to
	( 1/1/14)		( 6/30/14)		Ratio			6/30/14)
The Small Cap Opportunities Fund
No Load Class Actual — after
expense reimbursement	$	1,000.00	$	1,038.10		1.64	%	$	8.29
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 — after
expense reimbursement	$	1,000.00	$	1,036.60		1.89	%	$	9.54
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 — after
expense reimbursement	$	1,000.00	$	1,034.50		2.39	%	$	12.06
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,012.95		2.39	%	$	11.93
Institutional Class Actual — after
expense reimbursement	$	1,000.00	$	1,038.80		1.44	%	$	7.28
Institutional Class 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 — after
expense reimbursement	$	1,000.00	$	1,005.10		1.64	%	$	8.15
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 — after
expense reimbursement	$	1,000.00	$	1,004.00		1.89	%	$	9.39
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 — after
expense reimbursement	$	1,000.00	$	1,001.20		2.39	%	$	11.86
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,012.95		2.39	%	$	11.93
Institutional Class Actual — after
expense reimbursement	$	1,000.00	$	1,006.20		1.44	%	$	7.16
Institutional Class Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,017.66		1.44	%	$	7.20

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example — (Continued)

June 30, 2014 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/14 to
	( 1/1/14)		( 6/30/14)		Ratio			6/30/14)
The Alternative Income Fund
No Load Class Actual — after
expense reimbursement	$	1,000.00	$	1,026.70		0.95	%	$	4.77
No Load Class Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,020.09		0.95	%	$	4.76
Advisor Class A Actual — after
expense reimbursement	$	1,000.00	$	1,025.50		1.20	%	$	6.03
Advisor Class A Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,018.85		1.20	%	$	6.01
Advisor Class C Actual — after
expense reimbursement	$	1,000.00	$	1,022.80		1.70	%	$	8.53
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,016.37		1.70	%	$	8.50
Institutional Class Actual — after
expense reimbursement	$	1,000.00	$	1,027.60		0.75	%	$	3.77
Institutional Class Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,021.08		0.75	%	$	3.76

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Expense Example — (Continued)

June 30, 2014 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/14 to
	( 1/1/14)		( 6/30/14)		Ratio			6/30/14)
The Multi-Disciplinary Fund
No Load Class Actual — after
expense reimbursement	$	1,000.00	$	1,049.00		1.49	%	$	7.57
No Load Class Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,017.41		1.49	%	$	7.45
Advisor Class A Actual — after
expense reimbursement	$	1,000.00	$	1,047.60		1.74	%	$	8.83
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 — after
expense reimbursement	$	1,000.00	$	1,044.40		2.24	%	$	11.35
Advisor Class C Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,013.69		2.24	%	$	11.18
Institutional Class Actual — after
expense reimbursement	$	1,000.00	$	1,049.80		1.29	%	$	6.56
Institutional Class Hypothetical (5% return
before expenses) — after
expense reimbursement	$	1,000.00	$	1,018.40		1.29	%	$	6.46


Note:	Each Feeder Fund records its proportionate share of the respective Master Portfolio’s expenses on a daily basis. Any expense reductions include Feeder Fund-specific expenses as well as the expenses allocated for the Master Portfolio.
*	Expenses are equal to the Feeder Fund’s annualized expense ratio before expense reimbursement and after expense reimbursement multiplied by the average account value over the period, multiplied by 181/365.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities

June 30, 2014 (Unaudited)

	The Internet			The Global
	Fund			Fund
ASSETS:
Investments in the Master Portfolio, at value*	$	168,029,880		$	10,866,875
Receivable from Adviser		–			8,855
Receivable for Master Portfolio interest sold		98,704			–
Receivable for Fund shares sold		32,052			25,392
Prepaid expenses and other assets		30,604			26,222
Total Assets		168,191,240			10,927,344
LIABILITIES:
Payable for Master Portfolio interest purchased		–			25,392
Payable to Directors and Officers		3,255			223
Payable for Fund shares repurchased		130,756			–
Payable for shareholder servicing fees		34,175			2,305
Payable for distribution fees		2,951			1,473
Accrued expenses and other liabilities		60,315			12,386
Total Liabilities		231,452			41,779
Net Assets	$	167,959,788		$	10,885,565
NET ASSETS CONSIST OF:
Paid in capital	$	76,539,620		$	8,201,936
Accumulated net investment loss		(1,010,754	)		(56,355	)
Accumulated net realized gain (loss) on investments and
foreign currency		7,595,083			(139,820	)
Net unrealized appreciation on:
Investments and foreign currency		84,835,839			2,879,804
Net Assets	$	167,959,788		$	10,885,565
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS:
Net Assets	$	161,688,339		$	8,129,887
Shares outstanding		2,794,367			1,306,983
Net asset value per share (offering price and redemption price)	$	57.86		$	6.22
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A:
Net Assets	$	5,117,155		$	1,033,626
Shares outstanding		90,728			166,712
Net asset value per share (redemption price)	$	56.40		$	6.20
Offering price per share ($56.40 divided by .9425 and $6.20
divided by .9425)	$	59.84		$	6.58
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C:
Net Assets	$	1,154,294		$	1,722,052
Shares outstanding		21,430			285,276
Net asset value per share (offering price and redemption price)	$	53.86		$	6.04


*	Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities — (Continued)

June 30, 2014 (Unaudited)

	The Paradigm			The Medical
	Fund			Fund
ASSETS:
Investments in the Master Portfolio, at value*	$	1,306,563,813		$	26,837,141
Receivable from Adviser		75,744			14,610
Receivable for Fund shares sold		1,295,433			69,419
Prepaid expenses and other assets		83,978			21,832
Total Assets		1,308,018,968			26,943,002
LIABILITIES:
Payable for Master Portfolio interest purchased		236,819			48,581
Payable to Directors and Officers		23,536			504
Payable for Fund shares repurchased		1,058,614			20,838
Payable for shareholder servicing fees		211,062			5,426
Payable for distribution fees		319,393			3,405
Accrued expenses and other liabilities		233,580			15,217
Total Liabilities		2,083,004			93,971
Net Assets	$	1,305,935,964		$	26,849,031
NET ASSETS CONSIST OF:
Paid in capital	$	1,612,768,928		$	17,466,430
Accumulated net investment loss		(16,285,540	)		80,924
Accumulated net realized loss on investments and foreign currency		(775,545,217	)		(284,557	)
Net unrealized appreciation on:
Investments and foreign currency		484,997,793			9,586,234
Net Assets	$	1,305,935,964		$	26,849,031
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS:
Net Assets	$	604,911,792		$	21,637,389
Shares outstanding		16,825,180			747,947
Net asset value per share (offering price and redemption price)	$	35.95		$	28.93
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A:
Net Assets	$	224,422,943		$	4,608,688
Shares outstanding		6,362,867			164,251
Net asset value per share (redemption price)	$	35.27		$	28.06
Offering price per share ($35.27 divided by .9425 and $28.06
divided by .9425)	$	37.42		$	29.77
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C:
Net Assets	$	145,389,323		$	602,954
Shares outstanding		4,305,709			21,844
Net asset value per share (offering price and redemption price)	$	33.77		$	27.60
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS:
Net Assets	$	331,211,906			N/A
Shares outstanding		9,219,825			N/A
Net asset value per share (offering price and redemption price)	$	35.92			N/A


*	Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities — (Continued)

June 30, 2014 (Unaudited)

	The Small Cap			The Market
	Opportunities			Opportunities
	Fund			Fund
ASSETS:
Investments in the Master Portfolio, at value*	$	425,887,728		$	63,526,697
Receivable from Adviser		65,112			9,870
Receivable for Master Portfolio interest sold		–			107,247
Receivable for Fund shares sold		2,930,127			791
Prepaid expenses and other assets		76,969			38,403
Total Assets		428,959,936			63,683,008
LIABILITIES:
Payable for Master Portfolio interest purchased		1,958,839			—
Payable to Directors and Officers		7,134			1,243
Payable for Fund shares repurchased		971,288			108,037
Payable for shareholder servicing fees		80,029			12,683
Payable for distribution fees		29,470			12,862
Accrued expenses and other liabilities		69,210			19,505
Total Liabilities		3,115,970			154,330
Net Assets	$	425,843,966		$	63,528,678
NET ASSETS CONSIST OF:
Paid in capital	$	487,393,366		$	69,889,208
Accumulated net investment loss		(3,500,730	)		(770,405	)
Accumulated net realized loss on investments and foreign currency		(149,796,891	)		(22,508,804	)
Net unrealized appreciation on:
Investments and foreign currency		91,748,221			16,918,679
Net Assets	$	425,843,966		$	63,528,678
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS:
Net Assets	$	334,650,873		$	44,956,755
Shares outstanding		8,035,288			2,532,891
Net asset value per share (offering price and redemption price)	$	41.65		$	17.75
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A:
Net Assets	$	37,474,682		$	10,744,376
Shares outstanding		917,721			607,909
Net asset value per share (redemption price)	$	40.83		$	17.67
Offering price per share ($40.83 divided by .9425 and $17.67
divided by .9425)	$	43.32		$	18.75
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C:
Net Assets	$	13,531,363		$	5,817,504
Shares outstanding		339,514			335,482
Net asset value per share (offering price and redemption price)	$	39.86		$	17.34
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS:
Net Assets	$	40,187,048		$	2,010,043
Shares outstanding		956,509			112,596
Net asset value per share (offering price and redemption price)	$	42.01		$	17.85


*	Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities — (Continued)

June 30, 2014 (Unaudited)

	The Alternative			The Multi-
	Income			Disciplinary
	Fund			Fund
ASSETS:
Investments in the Master Portfolio, at value*	$	29,828,062		$	112,736,399
Receivable from Adviser		23,773			35,347
Receivable for Master Portfolio interest sold		105,861			–
Receivable for Fund shares sold		757			615,183
Prepaid expenses and other assets		37,718			39,544
Total Assets		29,996,171			113,426,473
LIABILITIES:
Payable for Master Portfolio interest purchased		–			549,771
Payable to Directors and Officers		481			1,900
Payable for Fund shares repurchased		106,618			65,412
Payable for shareholder servicing fees		4,331			14,115
Payable for distribution fees		5,671			20,819
Accrued expenses and other liabilities		13,491			26,511
Total Liabilities		130,592			678,528
Net Assets	$	29,865,579		$	112,747,945
NET ASSETS CONSIST OF:
Paid in capital	$	36,678,013		$	108,439,565
Accumulated net investment loss		(27,646	)		(870,062	)
Accumulated net realized gain (loss) on investments,
foreign currency and written options contracts		(7,713,317	)		1,277,116
Net unrealized appreciation on:
Investments and foreign currency		50,458			2,260,402
Written option contracts		878,071			1,640,924
Net Assets	$	29,865,579		$	112,747,945
CALCULATION OF NET ASSET VALUE PER SHARE — NO LOAD CLASS:
Net Assets	$	13,655,334		$	20,359,537
Shares outstanding		151,581			1,783,752
Net asset value per share (offering price and redemption price)	$	90.09		$	11.41
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS A:
Net Assets	$	4,680,922		$	25,442,309
Shares outstanding		52,111			2,238,185
Net asset value per share (redemption price)	$	89.83		$	11.37
Offering price per share ($89.83 divided by .9425 and $11.37
divided by .9425)	$	95.31		$	12.06
CALCULATION OF NET ASSET VALUE PER SHARE — ADVISOR CLASS C:
Net Assets	$	1,329,968		$	11,867,509
Shares outstanding		15,126			1,052,656
Net asset value per share (offering price and redemption price)	$	87.93		$	11.27
CALCULATION OF NET ASSET VALUE PER SHARE — INSTITUTIONAL CLASS:
Net Assets	$	10,199,355		$	55,078,590
Shares outstanding		111,979			4,810,559
Net asset value per share (offering price and redemption price)	$	91.08		$	11.45


*	Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations

For the Six Months Ended June 30, 2014 (Unaudited)

	The Internet			The Global
	Fund			Fund
INVESTMENT LOSS ALLOCATED FROM MASTER PORTFOLIOS:
Dividends†	$	379,706		$	37,505
Interest		571			58
Income from securities lending		15,099			22,967
Expenses allocated from Master Portfolio		(1,125,816	)		(89,184	)
Net investment loss from Master Portfolio		(730,440	)		(28,654	)
EXPENSES:
Distribution fees — Advisor Class A		6,650			2,291
Distribution fees — Advisor Class C		4,078			5,822
Shareholder servicing fees — Advisor Class A		6,650			2,291
Shareholder servicing fees — Advisor Class C		1,360			1,941
Shareholder servicing fees — No Load Class		203,718			10,182
Transfer agent fees and expenses		74,276			10,286
Reports to shareholders		19,544			1,810
Administration fees		28,426			2,750
Professional fees		8,285			4,223
Directors’ and Officers’ fees and expenses		3,331			323
Registration fees		23,277			21,442
Fund accounting fees		4,278			332
Other expenses		4,538			228
Total expenses		388,411			63,921
Less, expense reimbursement		—			(64,866	)
Net expenses		388,411			(945	)
Net investment loss		(1,118,851	)		(27,709	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized gain on:
Investments and foreign currency		2,584,251			256,805
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		(6,031,508	)		71,658
Net gain (loss) on investments		(3,447,257	)		328,463
Net increase (decrease) in net assets resulting from operations	$	(4,566,108	)	$	300,754
† Net of foreign taxes withheld of:	$	1,409		$	2,125

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2014 (Unaudited)

	The Paradigm			The Medical
	Fund			Fund
INVESTMENT LOSS ALLOCATED FROM MASTER PORTFOLIOS:
Dividends†	$	3,108,566		$	279,223
Interest		7,164			148
Income from securities lending		766,214			31,693
Expenses allocated from Master Portfolio		(8,408,041	)		(185,990	)
Net investment income (loss) from Master Portfolio		(4,526,097	)		125,074
EXPENSES:
Distribution fees — Advisor Class A		260,880			5,840
Distribution fees — Advisor Class C		520,198			2,126
Shareholder servicing fees — Advisor Class A		260,880			5,840
Shareholder servicing fees — Advisor Class C		173,399			709
Shareholder servicing fees — No Load Class		730,508			26,384
Shareholder servicing fees — Institutional Class		329,346			–
Transfer agent fees and expenses		155,276			13,309
Reports to shareholders		101,298			2,893
Administration fees		212,903			4,315
Professional fees		39,590			4,636
Directors’ and Officers’ fees and expenses		30,533			614
Registration fees		42,263			22,557
Fund accounting fees		32,764			663
Other expenses		27,436			543
Total expenses		2,917,274			90,429
Less, expense waiver for Institutional Class shareholder
servicing fees		(247,010	)		—
Less, expense reimbursement		(284,895	)		(85,351	)
Net expenses		2,385,369			5,078
Net investment loss		(6,911,466	)		119,996
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized gain on:
Investments and foreign currency		8,519,792			124,755
Net change in unrealized appreciation of:
Investments and foreign currency		56,445,954			2,079,076
Net gain on investments		64,965,746			2,203,831
Net increase in net assets resulting from operations	$	58,054,280		$	2,323,827
† Net of foreign taxes withheld of:	$	120,715		$	24,583

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2014 (Unaudited)

	The Small Cap			The Market
	Opportunities			Opportunities
	Fund			Fund
INVESTMENT LOSS ALLOCATED FROM MASTER PORTFOLIOS:
Dividends†	$	1,146,004		$	399,647
Interest		1,926			459
Income from securities lending		242,390			34,131
Expenses allocated from Master Portfolio		(2,678,867	)		(451,978	)
Net investment loss from Master Portfolio		(1,288,547	)		(17,741	)
EXPENSES:
Distribution fees — Advisor Class A		37,670			13,530
Distribution fees — Advisor Class C		40,561			21,081
Shareholder servicing fees — Advisor Class A		37,670			13,530
Shareholder servicing fees — Advisor Class C		13,520			7,027
Shareholder servicing fees — No Load Class		411,135			59,011
Shareholder servicing fees — Institutional Class		32,543			1,885
Transfer agent fees and expenses		48,420			14,026
Reports to shareholders		35,677			4,763
Administration fees		66,124			11,592
Professional fees		16,457			5,722
Directors’ and Officers’ fees and expenses		13,108			1,518
Registration fees		50,072			30,042
Fund accounting fees		10,493			1,651
Other expenses		4,415			1,428
Total expenses		817,865			186,806
Less, expense waiver for Institutional Class shareholder
servicing fees		(24,407	)		(1,413	)
Less, expense reimbursement		(126,933	)		(67,217	)
Net expenses		666,525			118,176
Net investment loss		(1,955,072	)		(135,917	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized gain on:
Investments and foreign currency		10,607,039			3,363,810
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		7,797,824			(3,036,607	)
Net gain on investments		18,404,863			327,203
Net increase in net assets resulting from operations	$	16,449,791		$	191,286
† Net of foreign taxes withheld of:	$	13,166		$	14,446

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2014 (Unaudited)

	The Alternative			The Multi-
	Income			Disciplinary
	Fund			Fund
INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS:
Dividends	$	21,136		$	243,960
Interest		77,674			1,577,786
Income from securities lending		4,035			13,269
Expenses allocated from Master Portfolio		(165,392	)		(702,487	)
Net investment income (loss) from Master Portfolio		(62,547	)		1,132,528
EXPENSES:
Distribution fees — Advisor Class A		4,094			37,906
Distribution fees — Advisor Class C		6,089			41,958
Shareholder servicing fees — Advisor Class A		4,094			37,906
Shareholder servicing fees — Advisor Class C		2,030			13,986
Shareholder servicing fees — No Load Class		16,230			24,786
Shareholder servicing fees — Institutional Class		9,430			41,310
Transfer agent fees and expenses		11,624			15,746
Reports to shareholders		1,393			11,453
Administration fees		4,434			18,877
Professional fees		4,696			6,677
Directors’ and Officers’ fees and expenses		711			2,199
Registration fees		26,323			33,860
Fund accounting fees		674			2,412
Other expenses		422			2,115
Total expenses		92,244			291,191
Less, expense waiver for Institutional Class shareholder
servicing fees		(7,072	)		(30,982	)
Less, expense reimbursement		(120,073	)		(159,381	)
Net expenses		(34,901	)		100,828
Net investment income (loss)		(27,646	)		1,031,700
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized gain (loss) on:
Investments and foreign currency		(46,153	)		(2,102,757	)
Written option contracts expired or closed		392,201			2,679,330
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		108,712			4,980,924
Written option contracts		274,450			(1,685,001	)
Net gain on investments		729,210			3,872,496
Net increase in net assets resulting from operations	$	701,564		$	4,904,196

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets

	The Internet Fund						The Global Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment income (loss)	$	(1,118,851	)	$	(2,263,838	)	$	(27,709	)	$	8,809
Net realized gain on sale of investments
and foreign currency		2,584,251			11,540,964			256,805			66,904
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		(6,031,508	)		52,880,805			71,658			2,169,965
Net increase (decrease) in net assets
resulting from operations		(4,566,108	)		62,157,931			300,754			2,245,678
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS:
Net investment income		—			—			—			(9,185	)
Net realized gains		—			(8,399,207	)		—			—
Total distributions		—			(8,399,207	)		—			(9,185	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS A:
Net investment income		—			—			—			(2,107	)
Net realized gains		—			(264,840	)		—			—
Total distributions		—			(264,840	)		—			(2,107	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS C:
Net investment income		—			—			—			(1,648	)
Net realized gains		—			(47,335	)		—			—
Total distributions		—			(47,335	)		—			(1,648	)
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS:
Proceeds from shares sold		11,554,092			26,409,652			686,008			3,089,656
Redemption fees		13,534			4,961			53			68
Proceeds from shares issued to holders
in reinvestment of dividends		—			8,096,254			—			8,850
Cost of shares redeemed		(17,833,989	)		(69,661,189	)		(1,474,229	)		(1,183,302	)
Net increase (decrease) in net assets
resulting from capital share
transactions		(6,266,363	)		(35,150,322	)		(788,168	)		1,915,272
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS A:
Proceeds from shares sold		1,820,845			4,387,670			711,334			1,186,661
Redemption fees		234			550			1,415			40
Proceeds from shares issued to holders
in reinvestment of dividends		—			221,753			—			1,866
Cost of shares redeemed		(2,057,732	)		(1,362,298	)		(1,717,697	)		(576,135	)
Net increase (decrease) in net assets
resulting from capital share
transactions		(236,653	)		3,247,675			(1,004,948	)		612,432

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Internet Fund						The Global Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS C:
Proceeds from shares sold	$	523,123		$	604,756		$	180,066		$	914,460
Redemption fees		—			—			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			35,987			—			1,580
Cost of shares redeemed		(244,681	)		(34,603	)		(22,083	)		(2,000	)
Net increase in net assets resulting
from capital share transactions		278,442			606,140			157,983			914,040
TOTAL INCREASE (DECREASE) IN
NET ASSETS:		(10,790,682	)		22,150,042			(1,334,379	)		5,674,482
NET ASSETS:
Beginning of period		178,750,470			156,600,428			12,219,944			6,545,462

End of period*	$	167,959,788		$	178,750,470		$	10,885,565		$	12,219,944
* Including undistributed net investment
income (loss) of:	$	(1,010,754	)	$	108,097		$	(56,355	)	$	(28,646	)
CHANGES IN SHARES OUTSTANDING —
NO LOAD CLASS:
Shares sold		201,464			525,397			115,889			584,835
Shares issued in reinvestments of
dividends and distributions		—			137,016			—			1,468
Shares redeemed		(314,821	)		(1,345,154	)		(247,261	)		(224,143	)
Net increase (decrease) in shares
outstanding		(113,357	)		(682,741	)		(131,372	)		362,160
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS A:
Shares sold		32,737			83,265			121,017			208,374
Shares issued in reinvestments of
dividends and distributions		—			3,845			—			310
Shares redeemed		(37,190	)		(24,534	)		(284,361	)		(110,866	)
Net increase (decrease) in shares
outstanding		(4,453	)		62,576			(163,344	)		97,818
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS C:
Shares sold		9,575			12,031			30,732			175,531
Shares issued in reinvestments of
dividends and distributions		—			652			—			269
Shares redeemed		(4,633	)		(731	)		(3,856	)		(347	)
Net increase in shares
outstanding		4,942			11,952			26,876			175,453

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Paradigm Fund						The Medical Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment income (loss)	$	(6,911,466	)	$	(6,330,819	)	$	119,996		$	(13,040	)
Net realized gain (loss) on sale of
investments and foreign currency		8,519,792			950,246			124,755			(340,728	)
Net change in unrealized appreciation
of investments and foreign
currency		56,445,954			384,565,800			2,079,076			8,683,292
Net increase in net assets resulting
from operations		58,054,280			379,185,227			2,323,827			8,329,524
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS:
Net investment income		—			(3,649,194	)		—			(47,302	)
Net realized gains		—			—			—			(118,630	)
Total distributions		—			(3,649,194	)		—			(165,932	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS A:
Net investment income		—			(958,523	)		—			(4,406	)
Net realized gains		—			—			—			(22,398	)
Total distributions		—			(958,523	)		—			(26,804	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS C:
Net investment income		—			(111,115	)		—			(632	)
Net realized gains		—			—			—			(3,216	)
Total distributions		—			(111,115	)		—			(3,848	)
DISTRIBUTIONS TO SHAREHOLDERS —
INSTITUTIONAL CLASS:
Net investment income		—			(2,547,950	)		N/A			N/A
Net realized gains		—			—			N/A			N/A
Total distributions		—			(2,547,950	)		N/A			N/A
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS:
Proceeds from shares sold		53,069,221			128,552,091			1,309,932			5,499,559
Redemption fees		6,452			28,908			1,594			2,309
Proceeds from shares issued to holders
in reinvestment of dividends		—			3,421,586			—			163,327
Cost of shares redeemed		(73,024,458	)		(129,139,004	)		(2,074,936	)		(6,191,262	)
Net increase (decrease) in net assets
resulting from capital share
transactions		(19,948,785	)		2,863,581			(763,410	)		(526,067	)

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Paradigm Fund						The Medical Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS A:
Proceeds from shares sold	$	29,916,413		$	41,783,343		$	1,347,488		$	2,015,743
Redemption fees		2,259			4,446			200			962
Proceeds from shares issued to holders
in reinvestment of dividends		—			869,957			—			16,802
Cost of shares redeemed		(19,771,917	)		(32,587,410	)		(850,533	)		(2,055,321	)
Net increase (decrease) in net assets
resulting from capital share
transactions		10,146,755			10,070,336			497,155			(21,814	)
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS C:
Proceeds from shares sold		7,869,901			10,763,761			71,750			110,624
Redemption fees		331			4			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			100,621			—			1,975
Cost of shares redeemed		(6,828,834	)		(15,948,545	)		(45,690	)		(219,103	)
Net increase (decrease) in net assets
resulting from capital share
transactions		1,041,398			(5,084,159	)		26,060			(106,504	)
CAPITAL SHARE TRANSACTIONS —
INSTITUTIONAL CLASS:
Proceeds from shares sold		41,512,569			110,215,275			N/A			N/A
Redemption fees		5,016			5,525			N/A			N/A
Proceeds from shares issued to holders
in reinvestment of dividends		—			1,781,955			N/A			N/A
Cost of shares redeemed		(59,206,495	)		(63,765,372	)		N/A			N/A
Net increase (decrease) in net assets
resulting from capital share
transactions		(17,688,910	)		48,237,383			N/A			N/A
TOTAL INCREASE IN NET ASSETS:		31,604,738			428,005,586			2,083,632			7,478,555
NET ASSETS:
Beginning of period		1,274,331,226			846,325,640			24,765,399			17,286,844
End of period*	$	1,305,935,964		$	1,274,331,226		$	26,849,031		$	24,765,399
* Including undistributed net investment
income (loss) of:	$	(16,285,540	)	$	(9,374,074	)	$	80,924		$	(39,072	)

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Paradigm Fund						The Medical Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CHANGES IN SHARES OUTSTANDING —
NO LOAD CLASS:
Shares sold		1,545,972			4,367,391			46,732			245,850
Shares issued in reinvestments of
dividends and distributions		—			100,105			—			6,196
Shares redeemed		(2,124,234	)		(4,435,343	)		(75,485	)		(275,053	)
Net increase (decrease) in
shares outstanding		(578,262	)		32,153			(28,753	)		(23,007	)
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS A:
Shares sold		882,433			1,418,522			49,882			90,529
Shares issued in reinvestments of
dividends and distributions		—			25,915			—			656
Shares redeemed		(582,711	)		(1,136,718	)		(31,839	)		(94,006	)
Net increase (decrease) in
shares outstanding		299,722			307,719			18,043			(2,821	)
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS C:
Shares sold		242,459			385,726			2,603			4,926
Shares issued in reinvestments of
dividends and distributions		—			3,123			—			78
Shares redeemed		(209,812	)		(590,232	)		(1,761	)		(10,184	)
Net increase (decrease) in
shares outstanding		32,647			(201,383	)		842			(5,180	)
CHANGES IN SHARES OUTSTANDING —
INSTITUTIONAL CLASS:
Shares sold		1,206,189			3,816,087			N/A			N/A
Shares issued in reinvestments of
dividends and distributions		—			52,226			N/A			N/A
Shares redeemed		(1,718,968	)		(2,177,559	)		N/A			N/A
Net increase (decrease) in
shares outstanding		(512,779	)		1,690,754			N/A			N/A

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Small Cap						The Market
	Opportunities Fund						Opportunities Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment loss	$	(1,955,072	)	$	(535,751	)	$	(135,917	)	$	(33,421	)
Net realized gain on sale of investments
and foreign currency		10,607,039			912,039			3,363,810			4,586,000
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		7,797,824			74,228,630			(3,036,607	)		16,099,778
Net increase in net assets resulting
from operations		16,449,791			74,604,918			191,286			20,652,357
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS:
Net investment income		—			—			—			(173,362	)
Total distributions		—			—			—			(173,362	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS A:
Net investment income		—			—			—			(43,317	)
Total distributions		—			—			—			(43,317	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS C:
Net investment income		—			—			—			(20,715	)
Total distributions		—			—			—			(20,715	)
DISTRIBUTIONS TO SHAREHOLDERS —
INSTITUTIONAL CLASS:
Net investment income		—			—			—			(6,619	)
Total distributions		—			—			—			(6,619	)
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS:
Proceeds from shares sold		157,263,992			191,484,979			7,225,489			12,840,687
Redemption fees		33,208			16,105			2,124			2,752
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			172,044
Cost of shares redeemed		(113,713,554	)		(37,876,316	)		(9,882,623	)		(13,323,220	)
Net increase (decrease) in net assets
resulting from capital share
transactions		43,583,646			153,624,768			(2,655,010	)		(307,737	)

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Small Cap						The Market
	Opportunities Fund						Opportunities Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS A:
Proceeds from shares sold	$	17,903,630		$	11,072,084		$	2,291,068		$	5,568,364
Redemption fees		691			2,704			—			1,711
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			34,665
Cost of shares redeemed		(3,612,419	)		(2,330,561	)		(3,303,812	)		(3,495,307	)
Net increase (decrease) in net assets
resulting from capital share
transactions		14,291,902			8,744,227			(1,012,744	)		2,109,433
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS C:
Proceeds from shares sold		6,834,211			3,682,497			554,299			378,584
Redemption fees		1,917			716			—			199
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			18,554
Cost of shares redeemed		(952,850	)		(937,616	)		(275,538	)		(546,143	)
Net increase (decrease) in net assets
resulting from capital share
transactions		5,883,278			2,745,597			278,761			(148,806	)
CAPITAL SHARE TRANSACTIONS —
INSTITUTIONAL CLASS:
Proceeds from shares sold		25,011,205			36,054,133			325,178			13,645,790
Redemption fees		255			—			—			1,462
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			6,468
Cost of shares redeemed		(27,273,289	)		(9,399,860	)		(139,853	)		(12,782,149	)
Net increase (decrease) in net assets
resulting from capital share
transactions		(2,261,829	)		26,654,273			185,325			871,571
TOTAL INCREASE (DECREASE) IN
NET ASSETS:		77,946,788			266,373,783			(3,012,382	)		22,932,805
NET ASSETS:
Beginning of period		347,897,178			81,523,395			66,541,060			43,608,255
End of period*	$	425,843,966		$	347,897,178		$	63,528,678		$	66,541,060
* Including undistributed net investment
loss of:	$	(3,500,730	)	$	(1,545,658	)	$	(770,405	)	$	(634,488	)

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Small Cap						The Market
	Opportunities Fund						Opportunities Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CHANGES IN SHARES OUTSTANDING —
NO LOAD CLASS:
Shares sold		3,925,189			5,488,513			415,376			787,628
Shares issued in reinvestments of
dividends and distributions		—			—			—			9,814
Shares redeemed		(2,814,736	)		(1,104,650	)		(570,750	)		(835,192	)
Net increase (decrease) in
shares outstanding		1,110,453			4,383,863			(155,374	)		(37,750	)
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS A:
Shares sold		454,500			321,977			131,489			358,219
Shares issued in reinvestments of
dividends and distributions		—			—			—			1,983
Shares redeemed		(92,076	)		(71,873	)		(190,547	)		(233,140	)
Net increase (decrease) in
shares outstanding		362,424			250,104			(59,058	)		127,062
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS C:
Shares sold		177,637			110,477			32,513			25,837
Shares issued in reinvestments of
dividends and distributions		—			—			—			1,080
Shares redeemed		(24,420	)		(28,337	)		(16,113	)		(37,227	)
Net increase (decrease) in
shares outstanding		153,217			82,140			16,400			(10,310	)
CHANGES IN SHARES OUTSTANDING —
INSTITUTIONAL CLASS:
Shares sold		615,893			990,478			18,639			937,141
Shares issued in reinvestments of
dividends and distributions		—			—			—			367
Shares redeemed		(674,105	)		(271,270	)		(7,994	)		(854,503	)
Net increase (decrease) in
shares outstanding		(58,212	)		719,208			10,645			83,005

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Alternative						The Multi-
	Income Fund						Disciplinary Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment income (loss)	$	(27,646	)	$	(54,057	)	$	1,031,700		$	1,363,638
Net realized gain on sale of
investments, foreign currency
and written option contracts
expired or closed		346,048			331,354			576,573			2,371,485
Net change in unrealized appreciation
(depreciation) of investments,
foreign currency and written
options		383,162			594,800			3,295,923			(739,904	)
Net increase in net assets resulting
from operations		701,564			872,097			4,904,196			2,995,219
DISTRIBUTIONS TO SHAREHOLDERS —
NO LOAD CLASS:
Net investment income		—			—			(180,784	)		(487,296	)
Net realized gains		—			—			(82,316	)		(441,978	)
Total distributions		—			—			(263,100	)		(929,274	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS A:
Net investment income		—			—			(194,271	)		(924,799	)
Net realized gains		—			—			(103,459	)		(819,239	)
Total distributions		—			—			(297,730	)		(1,744,038	)
DISTRIBUTIONS TO SHAREHOLDERS —
ADVISOR CLASS C:
Net investment income		—			—			(70,069	)		(183,756	)
Net realized gains		—			—			(48,618	)		(258,354	)
Total distributions		—			—			(118,687	)		(442,110	)
DISTRIBUTIONS TO SHAREHOLDERS —
INSTITUTIONAL CLASS:
Net investment income		—			—			(521,477	)		(457,067	)
Net realized gains		—			—			(219,359	)		(509,401	)
Total distributions		—			—			(740,836	)		(966,468	)
CAPITAL SHARE TRANSACTIONS —
NO LOAD CLASS:
Proceeds from shares sold		2,367,382			9,908,542			2,848,127			8,952,699
Redemption fees		397			9			1			334
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			212,289			736,771
Cost of shares redeemed		(892,430	)		(3,240,996	)		(2,953,900	)		(9,582,407	)
Net increase in net assets resulting
from capital share transactions		1,475,349			6,667,555			106,517			107,397

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Alternative						The Multi-
	Income Fund						Disciplinary Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS A:
Proceeds from shares sold	$	2,119,693		$	1,848,803		$	2,564,640		$	33,189,160
Redemption fees		102			313			5			4,331
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			270,743			1,696,922
Cost of shares redeemed		(417,638	)		(1,667,426	)		(14,647,398	)		(24,094,744	)
Net increase (decrease) in net assets
resulting from capital
share transactions		1,702,157			181,690			(11,812,010	)		10,795,669
CAPITAL SHARE TRANSACTIONS —
ADVISOR CLASS C:
Proceeds from shares sold		140,668			1,152,698			1,066,327			4,855,689
Redemption fees		—			—			33			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			113,401			423,776
Cost of shares redeemed		(704,873	)		(1,134,524	)		(905,930	)		(1,435,484	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(564,205	)		18,174			273,831			3,843,981
CAPITAL SHARE TRANSACTIONS —
INSTITUTIONAL CLASS:
Proceeds from shares sold		4,598,650			5,417,780			48,737,567			17,790,455
Redemption fees		—			—			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			738,321			955,985
Cost of shares redeemed		(1,510,152	)		(384,298	)		(18,939,640	)		(1,638,909	)
Net increase in net assets resulting
from capital share transactions		3,088,498			5,033,482			30,536,248			17,107,531
TOTAL INCREASE IN NET ASSETS:		6,403,363			12,772,998			22,588,429			30,767,907
NET ASSETS:
Beginning of period		23,462,216			10,689,218			90,159,516			59,391,609
End of period*	$	29,865,579		$	23,462,216		$	112,747,945		$	90,159,516
* Including undistributed net investment
loss of:	$	(27,646	)	$	—		$	(870,062	)	$	(935,161	)
CHANGES IN SHARES OUTSTANDING —
NO LOAD CLASS:
Shares sold		26,810			939,415			255,431			790,030
Shares issued in reinvestments of
dividends and distributions		—			—			18,665			66,399
Shares redeemed		(10,049	)		(1,368,656	)(1)		(264,104	)		(849,113	)
Net increase (decrease) in
shares outstanding		16,761			(429,241	)		9,992			7,316

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

	The Alternative						The Multi-
	Income Fund						Disciplinary Fund
	For the						For the
	Six Months			For the			Six Months			For the
	Ended			Year Ended			Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS A:
Shares sold		23,790			43,207			229,967			2,944,381
Shares issued in reinvestments of
dividends and distributions		—			—			23,874			153,652
Shares redeemed		(4,714	)		(321,663	)(1)		(1,310,784	)		(2,138,431	)
Net increase (decrease) in
shares outstanding		19,076			(278,456	)		(1,056,943	)		959,602
CHANGES IN SHARES OUTSTANDING —
ADVISOR CLASS C:
Shares sold		1,622			33,993			95,754			435,881
Shares issued in reinvestments of
dividends and distributions		—			—			10,071			38,723
Shares redeemed		(8,122	)		(226,741	)(1)		(81,880	)		(128,853	)
Net increase (decrease) in
shares outstanding		(6,500	)		(192,748	)		23,945			345,751
CHANGES IN SHARES OUTSTANDING —
INSTITUTIONAL CLASS:
Shares sold		51,441			246,519			4,328,981			1,566,653
Shares issued in reinvestments of
dividends and distributions		—			—			64,709			86,068
Shares redeemed		(16,673	)		(363,249	)(1)		(1,683,363	)		(144,343	)
Net increase (decrease) in
shares outstanding		34,768			(116,730	)		2,710,327			1,508,378


(1)	Shares redeemed include: 1,198,771 No Load Class shares, 210,478 Class A shares, 159,007 Class C shares and 332,551 Institutional Class shares respectively due to the reverse split. During the year ended December 31, 2013, shares of the Alternative Income Fund were adjusted to reflect a 10:1 reverse stock split.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements

June 30, 2014 (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 Alternative Income Fund (“Alternative Income”), and The Multi-Disciplinary Fund (“Multi-Disciplinary”). Investment operations of the Company began on October 21, 1996 (Internet), September 30, 1999 (Medical), December 31, 1999 (Global and Paradigm), March 20, 2000 (Small Cap), January 31, 2006 (Market Opportunities), June 29, 2007 (Alternative Income), and February 11, 2008 (Multi-Disciplinary). Each series, unlike many other investment companies which directly acquire and manage their own portfolios of securities, seeks to achieve its investment objective by investing all of its investable assets in a corresponding portfolio series (each a “Master Portfolio” and collectively the “Master Portfolios”) of Kinetics Portfolios Trust (the “Trust”).

On April 28, 2000 (January 31, 2006 with respect to Market Opportunities, June 29, 2007 with respect to Alternative Income, and February 11, 2008 with respect to Multi-Disciplinary), each series in the Company entered into a master-feeder fund structure. By entering into this structure, each series (each a “Feeder Fund” and collectively, the “Feeder Funds”) invested all of its assets in a corresponding Master Portfolio which had the same investment objective as the Feeder Fund. Each Master Portfolio has multiple feeder funds. Each Feeder Fund receives a proportionate amount of interest in the Master Portfolio equal to its relative contribution of capital. Thus, each Feeder Fund is allocated its portion of income, gains (losses) and expenses from the Master Portfolio.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

Each Feeder Fund’s respective interest in the corresponding Master Portfolio as of June 30, 2014 is as follows:

	Interest in
	Master Portfolio
Internet Fund		99.989	%
Global Fund		99.924	%
Paradigm Fund		96.476	%
Medical Fund		99.886	%
Small Cap Fund		99.990	%
Market Opportunities Fund		99.973	%
Alternative Income Fund		99.613	%
Multi-Disciplinary Fund		99.859	%

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, 2014 each of the Feeder Funds offers Advisor Class A shares. Advisor Class A shares are subject to an annual Rule 12b-1 fee of 0.25% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. The Advisor Class A shares are also subject to a front-end sales charge of 5.75%.

As of June 30, 2014, each of the Feeder Funds offers Advisor Class C shares. Advisor Class C shares are subject to an annual Rule 12b-1 fee of 0.75% of average daily net assets and a shareholder servicing fee of 0.25% of average daily net assets. If you sell your Advisor Class C shares within 12 months of purchase, you will have to pay a contingent deferred sales charge of 1.00%, which is applied to the NAV of the shares on the date of original purchase or on the date of redemption, whichever is less.

As of June 30, 2014, each of the Feeder Funds offers No Load Class shares. No Load Class shares are subject to a shareholder servicing fee of 0.25% of average daily net assets but do not have 12b-1 fees or a sales charge.

As of June 30, 2014 the Paradigm, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds offer Institutional Class shares. Institutional Class shares are subject to a shareholder servicing fee of 0.20% of average daily net assets but do not have 12b-1 fees or a sales charge. The Adviser has voluntarily agreed to waive a portion of the Institutional Class shareholder servicing fee in excess of 0.05%.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

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 unrealized gains or losses on investments are allocated to each class based on its relative net assets.

Refer to the Master Portfolio’s financial statements to obtain information about the investment objective of the corresponding Feeder Fund. The financial statements of the Master Portfolios, including the portfolios of investments, are contained elsewhere in this report and should be read in conjunction with the Feeder Funds’ financial statements.

2. Significant Accounting Policies

Security Valuation

Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which an option is quoted, thus providing a view across the entire U.S. options marketplace. Composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. If

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

the composite option price is not available, the mean between the highest bid and the lowest asked quotations at the close of the exchanges will be used. If none of the above are available, exchange traded options are valued at the last quoted sales price. Non-exchange traded options for which over-the-counter quotations are not readily available are valued at the mean of the current bid and asked prices. Fixed-income securities (other than obligations having a maturity of 60 days or less) are normally valued on the basis of quotes obtained from pricing services, which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data.

Investment grade fixed-income securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value. Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Advisor or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Advisor; and (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At June 30, 2014, 0.00%, 0.00%, and 0.00% of the net assets of The Internet Portfolio, The Paradigm Portfolio and The Market Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at June 30, 2014.

Repurchase Agreements

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

102% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.

Written Option Accounting

The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When the Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.

Foreign Currency Translations

The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market values of investment securities and other assets and liabilities are translated at the exchange rate of such currencies against the U.S. dollar, as provided by an approved pricing service, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. The 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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

during the period. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Master Portfolios do isolate and treat as ordinary income the effect of changes in foreign exchange rates arising from actual foreign currency transactions and the effect of changes in foreign exchange rates arising between trade date and settlement date.

Restricted and Illiquid Securities

The Master Portfolios may invest in restricted securities. These securities are valued by the Master Portfolios after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios have no right to require registration of unregistered securities. At June 30, 2014 the following Master Portfolio held securities restricted to institutional investors (144A securities):

			Percentage of
	Market Value		Net Assets
The Alternative Income Portfolio	$	658,595		2.20	%
The Multi-Disciplinary Portfolio		17,578,917		15.57	%

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, 2014, the following Master Portfolios held illiquid securities:

				Percentage of
	Market Value			Net Assets
The Internet Portfolio	$	—	*		0.00	%
The Paradigm Portfolio		—	*		0.00	%
The Market Opportunities Portfolio		—	*		0.00	%
The Multi-Disciplinary Portfolio		525,000			0.47	%


*	Amount is less than $0.50.

When-Issued Securities

The Master Portfolios may purchase securities on a when-issued or delayed delivery basis. Although the purchase amounts of these securities are established at the time the purchaser enters into the agreement, these securities may be delivered and paid for at a future date. The Master Portfolios record purchases of when-issued securities and reflect the values of such securities in determining net asset value in the same manner as other portfolio

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

intend to distribute investment company net taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is recorded.

Dividends from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. The character of distributions made during the year from net investment income or net realized gains may differ from the characterization for federal income tax purposes due to differences in the recognition of income, expenses and gain items for financial statement and tax purposes. Additionally, the Feeder Funds may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes. Where appropriate, reclassifications between capital accounts are made for such differences that are permanent in nature

There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. As of June 30, 2014, open tax years include the tax years ended December 31, 2010 through 2013. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates.

Other

Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis and includes amortization of premiums and discounts on the interest method. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Company’s understanding of the applicable country’s tax rules and rates.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

3. Investment Adviser

The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Kinetics Asset Management LLC (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Master Portfolios. The Adviser is a wholly-owned subsidiary of Horizon Kinetics LLC. Under the terms of the Agreements, the Master Portfolios, except the Alternative Income Portfolio, compensate the Adviser for its management services at the annual rate of 1.25% of each Master Portfolio’s average daily net assets. The Alternative Income Portfolio compensates the Adviser for its management services at the annual rate of 0.90% of the Master Portfolio’s average daily net assets.

The Adviser has voluntarily agreed to waive a portion of its advisory fee and/or reimburse certain operating expenses as deemed appropriate through at least May 1, 2015. The Adviser may discontinue the voluntary waiver/reimbursement at any time after May 1, 2015; these waivers/reimbursements are not subject to recapture.

For the period ended June 30, 2014, the rate earned by the Adviser from the Master Portfolios and the waived fees/reimbursed expenses for the Feeder Funds are as follows:

	The Internet			The Global
	Fund			Fund
Annual Advisory Rate		1.25	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	—		$	64,866
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	$	284,895		$	85,351
Expenses Reimbursed by Adviser through
institutional class shareholder servicing
fee waiver	$	247,010		$	—

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

	The Small Cap			The Market
	Opportunities			Opportunities
	Fund			Fund
Annual Advisory Rate		1.25	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	126,933		$	67,217
Expenses Reimbursed by Adviser through
institutional class shareholder servicing
fee waiver	$	24,407		$	1,413

	The Alternative			The Multi-
	Income			Disciplinary
	Fund			Fund
Annual Advisory Rate		0.90	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	120,073		$	159,381
Expenses Reimbursed by Adviser through
institutional class shareholder servicing
fee waiver	$	7,072		$	30,982

The Adviser receives a shareholder servicing fee from the No Load Class, Advisor Class A and Advisor Class C shares of a Feeder Fund pursuant to a Shareholder Servicing Agreement in the amount equal to 0.25% of the Feeder Fund’s average daily net assets attributable to No Load Class, Advisor Class A and Advisor Class C shares, respectively. For the Institutional Class, the Adviser receives a shareholder servicing fee pursuant to a shareholder servicing agreement in the amount equal to 0.20% of a Feeder Fund’s average daily net assets attributable to Institutional Class shares. At this time, the Adviser has contractually agreed to waive and/or reimburse the portion of the Institutional Class shareholder servicing fee in excess of 0.05% of a Feeder Fund’s average daily net assets attributable to Institutional Class shares until at least May 1, 2015. For the six months ended June 30, 2014, the Adviser waived amounts depicted in the above table in shareholder servicing fees for the Institutional Class of the Paradigm, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds. During the six months ended June 30, 2014, Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income and Multi-Disciplinary Funds incurred shareholder servicing expenses of $211,728, $14,414, $1,494,133, $32,933, $494,868, $81,453, $31,784, and $117,988 respectively, pursuant to the Shareholder Servicing Plan. 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.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

For the six months ended June 30, 2014, the Feeder Funds were allocated $13,000 for the services of the Chief Compliance Officer employed by the Adviser.

The Company, on behalf of the Feeder Funds, has adopted two Retail Distribution Plans pursuant to Rule 12b-1 under the 1940 Act (the “12b-1Plans”). One Plan is for Advisor Class A shares, while the other Plan is for Advisor Class C shares. Under the first Plan, Advisor Class A shares may pay up to an annual rate of 0.50% of the average daily net asset value of Advisor Class A shares to the Distributor or other qualified recipients under the Plan. During the six months ended June 30, 2014, payments under the 12b-1 Plan for the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds were limited to 0.25% of the average daily net asset value of such shares of such Funds. During the six months ended June 30, 2014, the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds incurred expenses of $6,650, $2,291, $260,880, $5,840, $37,670, $13,530, $4,094 and $37,906 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, 2014, Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds Advisor Class C Shares incurred expenses of $4,078, $5,822, $520,198, $2,126, $40,561, $21,081, $6,089 and $41,958, respectively, pursuant to the 12b-1 Plan.

Kinetics Funds Distributor, LLC (the “Distributor”) acts as the Funds’ principal underwriter in a continuous public offering of the Feeder Funds’ shares. The Distributor is an affiliate of the Adviser. For the six months ended June 30, 2014, the Distributor received $4,804, $687, $51,881, $624, $12,063, $1,794, $305, and $161 from sales loads from the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds.

4. Reclassification of Capital Accounts

GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended December 31, 2013, each Fund recorded the following reclassifications to the accounts listed below:

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

	INCREASE/(DECREASE)
				Accumulated
				Net			Accumulated
				Investment			Net Realized
				Income			Gain
	Paid In Capital			(Loss)			(Loss)
Internet	$	(2,073,487	)	$	2,328,094		$	(254,607	)
Global		–			53,671			(53,671	)
Paradigm		(11,104,043	)		13,673,332			(2,569,289	)
Medical		–			(2,064	)		2,064
Small Cap		948,572			(262,869	)		(685,703	)
Market Opportunities		(91,727	)		799,552			(707,825	)
Alternative Income		(145,322	)		126,512			18,810
Multi-Disciplinary		–			187,120			(187,120	)

5. Income Taxes

At December 31, 2013 the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds had $0, $966, $0, $0, $260,462, $0, $0, and $453,666, respectively, of undistributed net investment income on a tax basis.

At December 31, 2013, the Internet and Multi-Disciplinary Funds had $5,361,037 and $17,495, respectively, of accumulated net realized gains on a tax basis.

At December 31, 2013, the Feeder Funds had accumulated net realized capital loss carryforwards expiring in the following years:

										No			No
										Expiration			Expiration
Feeder Fund	2016			2017			2018			Short-term			Long-term
Internet	$	—		$	—		$	—		$	—		$	—
Global		—			(367,030	)		—			—			—
Paradigm		(205,745,172	)		(445,505,345	)		(115,786,082	)		(1,814,849	)		—
Medical		—			—			—			—			(342,501	)
Small Cap		(53,244,496	)		(96,486,615	)		(8,224,702	)		—			—
Market Opportunities		(16,707,598	)		(6,623,055	)		(2,108,533	)		—			—
Alternative Income		(987,119	)		(4,868,599	)		(2,203,647	)		—			—
Multi-Disciplinary		—			—			—			—			—

As a result of the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), losses incurred in this fiscal year and beyond retain their character, short-term or long-term, have no expiration date and are utilized prior to capital loss carryforwards accumulated before the enactment of the Modernization Act.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

For the year ended December 31, 2013, the following Feeder Funds utilized capital loss carryforwards:

	Capital Loss
Fund	Carryforward
Global	$	36,284
Small Cap		1,332,607
Market Opportunities		3,947,393
Alternative		1,652

At December 31, 2013, the following Feeder Funds deferred, on a tax basis, post-October losses:

	Post-October			Post-October
Feeder Fund	Losses			Currency Losses
Internet	$	(36,653	)		—
Paradigm		—		$	(825,325	)
Medical		—			(39,071	)
Market Opportunities		—			(107,573	)

The tax components of dividends paid during the years ended December 31, 2013 and December 31, 2012, are:

	Internet					Global
	Ordinary		Long-Term			Ordinary			Long-Term
	Income		Capital Gains			Income			Capital Gains
	Distribution		Distribution			Distribution			Distribution
2013	$	—		$	8,711,382		$	12,940		$	—
2012	$	—		$	5,260,270		$	156,516		$	—

	Paradigm					Medical
	Ordinary		Long-Term			Ordinary				Long-Term
	Income		Capital Gains			Income				Capital Gains
	Distribution		Distribution			Distribution				Distribution
2013	$	7,266,782		$	—		$	52,349		$	144,235
2012	$	3,816,172		$	—		$	301,886		$	1,910,710

	Small Cap					Market Opportunities
	Ordinary		Long-Term			Ordinary				Long-Term
	Income		Capital Gains			Income				Capital Gains
	Distribution		Distribution			Distribution				Distribution
2013	$	—		$	—		$	244,013		$	—
2012	$	—		$	—		$	654,956		$	—

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

	Alternative Income				Multi-Disciplinary
	Ordinary		Long-Term		Ordinary		Long-Term
	Income		Capital Gains		Income		Capital Gains
	Distribution		Distribution		Distribution		Distribution
2013	$	—	$	—	$	3,590,035	$	491,855
2012	$	251,325	$	—	$	2,322,725	$	—

6. Tax Information

The Global, Paradigm, Medical, and Market Opportunities Funds designate 49%, 100%, 100% and 84%, respectively, of dividends declared after December 31, 2013 from net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003.

The Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, and Multi-Disciplinary Funds hereby designate 0%, 100%, 100%, 27%, 0%, 100%, 0% and 88%, respectively, as ordinary income distributions and 100%, 73% and 12% for the Internet, Medical and Multi-Disciplinary Funds as long-term capital gain distributions for the purposes of the dividends paid deduction, which include earnings and profits distributed to shareholders on redemptions of Fund shares.

For corporate shareholders in the Feeder Funds, the percentage of ordinary dividend income distributed for the year ended December 31, 2013, which is designated as qualifying for the dividends-received deduction, is as follows: Global 22%, Paradigm 100%, Medical 100%, and Market Opportunities 63%. The Multi-Disciplinary Fund designates 100% of its ordinary income distributions for the fiscal year ended December 31, 2013 as interest-related dividends under Internal Revenue Code Section 871(k)(l)(C).

The Multi-Disciplinary Fund designates 38% of its ordinary income distribution as a short-term capital gain distribution under Internal Revenue Code Section 871(k)(2)(C).

7. Information about Proxy Voting

Information regarding how the Company and the Master Portfolios vote proxies relating to portfolio securities is available without charge, upon request by calling toll-free at 1-800-930-3828 or by accessing the Company’s website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Feeder Funds and the Master Portfolios voted

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.

8. Information about the Portfolio Holdings

The Feeder Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Form N-Q. The Feeder Funds’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

9. Subsequent Events

Effective July 7, 2014, The Multi-Disciplinary Fund changed its name to The Multi-Disciplinary Income Fund. The Multi-Disciplinary Portfolio made corresponding changes to its name on July 7, 2014.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights

	The Internet Fund
	No Load Class
	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, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
PER SHARE DATA:(1)
Net Asset Value,
Beginning of Period	$	59.27		$	43.18		$	36.26		$	37.25		$	30.74		$	20.71
Income from Investment Operations:
Net investment loss(2)		(0.37	)		(0.67	)		(0.15	)		(0.37	)		(0.28	)		(0.14	)
Net realized and unrealized gain
(loss) on investments		(1.04	)		19.78			8.56			(0.37	)		6.79			10.21
Total from investment
operations		(1.41	)		19.11			8.41			(0.74	)		6.51			10.07
Redemption Fees(3)		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			—			—			—			—			(0.04	)
From net realized gains		—			(3.02	)		(1.49	)		(0.25	)		—			—
Total distributions		—			(3.02	)		(1.49	)		(0.25	)		—			(0.04	)
Net Asset Value, End of Period	$	57.86		$	59.27		$	43.18		$	36.26		$	37.25		$	30.74
Total return		(2.38	)%(4)		44.28	%		23.24	%		(1.98	)%		21.18	%		48.61	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	161,688		$	172,332		$	155,036		$	103,828		$	113,085		$	104,666
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.78	%(5)		1.84	%		1.94	%		1.94	%		1.95	%		1.98	%
After expense reimbursement(6)		1.78	%(5)		1.84	%		1.89	%		1.89	%		1.89	%		1.89	%
Ratio of net investment income
(loss) to average net assets:
Before expense reimbursement		(1.31	)%(5)		(1.30	)%		(0.41	)%		(0.99	)%		(0.91	)%		(0.64	)%
After expense reimbursement(6)		(1.31	)%(5)		(1.30	)%		(0.36	)%		(0.94	)%		(0.85	)%		(0.55	)%
Portfolio turnover rate(7)		0	%		8	%		9	%		32	%		12	%		14	%


(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Internet Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Internet Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	57.84		$	42.30		$	35.63		$	36.69		$	30.35		$	20.50
Income from Investment
Operations:
Net investment loss(2)		(0.43	)		(0.81	)		(0.24	)		(0.46	)		(0.36	)		(0.21	)
Net realized and unrealized
gain (loss) on investments		(1.01	)		19.36			8.40			(0.36	)		6.70			10.09
Total from investment
operations		(1.44	)		18.55			8.16			(0.82	)		6.34			9.88
Redemption Fees		0.00	(3)		0.01			—			0.01			0.00	(3)		0.01
Less Distributions:
From net investment income		—			—			—			—			—			(0.04	)
From net realized gains		—			(3.02	)		(1.49	)		(0.25	)		—			—
Total distributions		—			(3.02	)		(1.49	)		(0.25	)		—			(0.04	)
Net Asset Value, End of Period	$	56.40		$	57.84		$	42.30		$	35.63		$	36.69		$	30.35
Total return(4)		(2.49	)%(5)		43.94	%		22.92	%		(2.20	)%		20.89	%		48.23	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	5,117		$	5,506		$	1,379		$	1,050		$	1,892		$	738
Ratio of operating expenses to
average net assets:
Before expense
reimbursement		2.03	%(6)		2.09	%		2.19	%		2.19	%		2.20	%		2.23	%
After expense
reimbursement(7)		2.03	%(6)		2.09	%		2.14	%		2.14	%		2.14	%		2.14	%
Ratio of net investment loss to
average net assets:
Before expense reimbursement		(1.56	)%(6)		(1.55	)%		(0.66	)%		(1.24	)%		(1.16	)%		(0.89	)%
After expense reimbursement(7)		(1.56	)%(6)		(1.55	)%		(0.61	)%		(1.19	)%		(1.10	)%		(0.80	)%
Portfolio turnover rate(8)		0	%		8	%		9	%		32	%		12	%		14	%

(1)		Information presented relates to a share of capital stock outstanding for each period.
(2)		Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)		Amount calculated is less than $0.005.
(4)		The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)		Not annualized.
(6)		Annualized.
(7)		See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)		Portfolio turnover of The Internet Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Internet Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	55.38		$	40.79		$	34.58		$	35.79		$	29.76		$	20.20
Income from Investment
Operations:
Net investment loss(2)		(0.54	)		(1.03	)		(0.43	)		(0.63	)		(0.51	)		(0.31	)
Net realized and unrealized gain
(loss) on investments		(0.98	)		18.64			8.13			(0.34	)		6.54			9.91
Total from investment
operations		(1.52	)		17.61			7.70			(0.97	)		6.03			9.60
Redemption Fees		—			—			—			0.01			—			—
Less Distributions:
From net investment income		—			—			—			—			—			(0.04	)
From net realized gains		—			(3.02	)		(1.49	)		(0.25	)		—			—
Total distributions		—			(3.02	)		(1.49	)		(0.25	)		—			(0.04	)
Net Asset Value, End of Period	$	53.86		$	55.38		$	40.79		$	34.58		$	35.79		$	29.76
Total return		(2.74	)%(3)		43.20	%		22.32	%		(2.67	)%		20.26	%		47.51	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,154		$	913		$	185		$	103		$	196		$	120
Ratio of operating expenses to
average net assets:
Before expense
reimbursement		2.53	%(4)		2.59	%		2.69	%		2.69	%		2.70	%		2.73	%
After expense
reimbursement(5)		2.53	%(4)		2.59	%		2.64	%		2.64	%		2.64	%		2.64	%
Ratio of net investment loss to
average net assets:
Before expense reimbursement		(2.06	)%(4)		(2.05	)%		(1.16	)%		(1.74	)%		(1.66	)%		(1.39	)%
After expense reimbursement(5)		(2.06	)%(4)		(2.05	)%		(1.11	)%		(1.69	)%		(1.60	)%		(1.30	)%
Portfolio turnover rate(6)		0	%		8	%		9	%		32	%		12	%		14	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Not annualized.
(4)	Annualized.
(5)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(6)	Portfolio turnover of The Internet Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Global Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	6.05		$	4.71		$	3.92		$	4.67		$	3.92		$	2.36
Income from Investment Operations:
Net investment income (loss)(2)		(0.01	)		0.01			0.03			0.06			0.02			0.02
Net realized and unrealized gain
(loss) on investments		0.18			1.34			0.88			(0.78	)		0.78			1.55
Total from investment
operations		0.17			1.35			0.91			(0.72	)		0.80			1.57
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.01
Less Distributions:
From net investment income		—			(0.01	)		(0.12	)		(0.03	)		(0.05	)		(0.02	)
Total distributions		—			(0.01	)		(0.12	)		(0.03	)		(0.05	)		(0.02	)
Net Asset Value, End of Period	$	6.22		$	6.05		$	4.71		$	3.92		$	4.67		$	3.92
Total return		2.81	%(4)		28.59	%		23.16	%		(15.41	)%		20.30	%		66.86	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	8,130		$	8,705		$	5,069		$	3,631		$	4,541		$	4,370
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.51	%(5)		2.83	%		3.38	%		3.94	%		4.17	%		5.32	%
After expense reimbursement(6)		1.39	%(5)		1.39	%		1.39	%		1.39	%		1.39	%		1.39	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.46	)%(5)		(1.22	)%		(1.22	)%		(1.11	)%		(2.26	)%		(3.27	)%
After expense reimbursement(6)		(0.34	)%(5)		0.22	%		0.77	%		1.44	%		0.52	%		0.66	%
Portfolio turnover rate(7)		12	%		15	%		23	%		135	%		122	%		53	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Global Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Global Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	6.03		$	4.71		$	3.92		$	4.68		$	3.93		$	2.36
Income from Investment Operations:
Net investment income (loss)(2)		(0.02	)		(0.00	)(3)		0.02			0.05			0.01			0.01
Net realized and unrealized gain
(loss) on investments		0.19			1.33			0.88			(0.78	)		0.78			1.57
Total from investment
operations		0.17			1.33			0.90			(0.73	)		0.79			1.58
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		—
Less Distributions:
From net investment income		—			(0.01	)		(0.11	)		(0.03	)		(0.04	)		(0.01	)
Total distributions		—			(0.01	)		(0.11	)		(0.03	)		(0.04	)		(0.01	)
Net Asset Value, End of Period	$	6.20		$	6.03		$	4.71		$	3.92		$	4.68		$	3.93
Total return(4)		2.82	%(5)		28.16	%		22.94	%		(15.59	)%		20.04	%		67.11	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,034		$	1,992		$	1,093		$	392		$	707		$	368
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.76	%(6)		3.08	%		3.63	%		4.19	%		4.42	%		5.57	%
After expense reimbursement(7)		1.64	%(6)		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.71	)%(6)		(1.47	)%		(1.47	)%		(1.36	)%		(2.51	)%		(3.52	)%
After expense reimbursement(7)		(0.59	)%(6)		(0.03	)%		0.52	%		1.19	%		0.27	%		0.41	%
Portfolio turnover rate(8)		12	%		15	%		23	%		135	%		122	%		53	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The Global Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Global Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	5.90		$	4.62		$	3.87		$	4.64		$	3.90		$	2.37
Income from Investment Operations:
Net investment income (loss)(2)		(0.03	)		(0.03	)		0.00	(3)		0.03			(0.01	)		0.00	(3)
Net realized and unrealized gain
(loss) on investments		0.17			1.32			0.85			(0.77	)		0.77			1.53
Total from investment
operations		0.14			1.29			0.85			(0.74	)		0.76			1.53
Redemption Fees		—			—			—			—			—			—
Less Distributions:
From net investment income		—			(0.01	)		(0.10	)		(0.03	)		(0.02	)		(0.00	)(3)
Total distributions		—			(0.01	)		(0.10	)		(0.03	)		(0.02	)		(0.00	)(3)
Net Asset Value, End of Period	$	6.04		$	5.90		$	4.62		$	3.87		$	4.64		$	3.90
Total return		2.37	%(4)		27.84	%		22.04	%		(15.94	)%		19.24	%		65.08	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,722		$	1,523		$	383		$	111		$	64		$	36
Ratio of operating expenses to
average net assets:
Before expense reimbursement		3.26	%(5)		3.58	%		4.13	%		4.69	%		4.92	%		6.07	%
After expense reimbursement(6)		2.14	%(5)		2.14	%		2.14	%		2.14	%		2.14	%		2.14	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(2.21	)%(5)		(1.97	)%		(1.97	)%		(1.86	)%		(3.01	)%		(4.02	)%
After expense reimbursement(6)		(1.09	)%(5)		(0.53	)%		0.02	%		0.69	%		(0.23	)%		(0.09	)%
Portfolio turnover rate(7)		12	%		15	%		23	%		135	%		122	%		53	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Global Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Paradigm Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	34.35		$	23.99		$	19.81		$	23.31		$	20.18		$	14.42
Income from Investment Operations:
Net investment income (loss)(2)		(0.18	)		(0.15	)		0.05			0.02			0.11			0.15
Net realized and unrealized gain
(loss) on investments		1.78			10.72			4.25			(3.34	)		3.39			5.78
Total from investment
operations		1.60			10.57			4.30			(3.32	)		3.50			5.93
Redemption Fees(3)		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			(0.21	)		(0.12	)		(0.18	)		(0.37	)		(0.17	)
Total distributions		—			(0.21	)		(0.12	)		(0.18	)		(0.37	)		(0.17	)
Net Asset Value, End of Period	$	35.95		$	34.35		$	23.99		$	19.81		$	23.31		$	20.18
Total return		4.66	%(4)		44.07	%		21.78	%		(14.27	)%		17.37	%		41.02	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	604,912		$	597,746		$	416,696		$	430,528		$	687,056		$	825,278
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.69	%(5)		1.72	%		1.78	%		1.78	%		1.76	%		1.73	%
After expense reimbursement(6)		1.64	%(5)		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.07	)%(5)		(0.60	)%		0.08	%		(0.03	)%		0.43	%		0.78	%
After expense reimbursement(6)		(1.02	)%(5)		(0.52	)%		0.22	%		0.11	%		0.55	%		0.87	%
Portfolio turnover rate(7)		5	%		4	%		6	%		58	%		7	%		15	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Paradigm Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Paradigm Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	33.74		$	23.59		$	19.45		$	22.95		$	19.88		$	14.16
Income from Investment Operations:
Net investment income (loss)(2)		(0.21	)		(0.22	)		(0.01	)		(0.03	)		0.06			0.10
Net realized and unrealized gain
(loss) on investments		1.74			10.53			4.18			(3.29	)		3.33			5.68
Total from investment
operations		1.53			10.31			4.17			(3.32	)		3.39			5.78
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		—
Less Distributions:
From net investment income		—			(0.16	)		(0.03	)		(0.18	)		(0.32	)		(0.06	)
Total distributions		—			(0.16	)		(0.03	)		(0.18	)		(0.32	)		(0.06	)
Net Asset Value, End of Period	$	35.27		$	33.74		$	23.59		$	19.45		$	22.95		$	19.88
Total return(4)		4.53	%(5)		43.70	%		21.49	%		(14.49	)%		17.11	%		40.64	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	224,423		$	204,548		$	135,747		$	146,939		$	226,264		$	252,106
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.94	%(6)		1.97	%		2.03	%		2.03	%		2.01	%		1.98	%
After expense reimbursement(7)		1.89	%(6)		1.89	%		1.89	%		1.89	%		1.89	%		1.89	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.32	)%(6)		(0.85	)%		(0.17	)%		(0.28	)%		0.18	%		0.53	%
After expense reimbursement(7)		(1.27	)%(6)		(0.77	)%		(0.03	)%		(0.14	)%		0.30	%		0.62	%
Portfolio turnover rate(8)		5	%		4	%		6	%		58	%		7	%		15	%

(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.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Paradigm Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	32.38		$	22.66		$	18.76		$	22.25		$	19.33		$	13.80
Income from Investment Operations:
Net investment income (loss)(2)		(0.29	)		(0.35	)		(0.11	)		(0.14	)		(0.04	)		0.02
Net realized and unrealized gain
(loss) on investments		1.68			10.10			4.01			(3.17	)		3.22			5.51
Total from investment
operations		1.39			9.75			3.90			(3.31	)		3.18			5.53
Redemption Fees(3)		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			(0.03	)		—			(0.18	)		(0.26	)		—
Total distributions		—			(0.03	)		—			(0.18	)		(0.26	)		—
Net Asset Value, End of Period	$	33.77		$	32.38		$	22.66		$	18.76		$	22.25		$	19.33
Total return		4.29	%(4)		43.01	%		20.85	%		(14.90	)%		16.45	%		39.97	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	145,389		$	138,355		$	101,405		$	102,534		$	152,571		$	169,578
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.44	%(5)		2.47	%		2.53	%		2.53	%		2.51	%		2.48	%
After expense reimbursement(6)		2.39	%(5)		2.39	%		2.39	%		2.39	%		2.39	%		2.39	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.82	)%(5)		(1.35	)%		(0.67	)%		(0.78	)%		(0.32	)%		0.03	%
After expense reimbursement(6)		(1.77	)%(5)		(1.27	)%		(0.53	)%		(0.64	)%		(0.20	)%		0.12	%
Portfolio turnover rate(7)		5	%		4	%		6	%		58	%		7	%		15	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Paradigm Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Paradigm Fund
	Institutional Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	34.28		$	23.93		$	19.79		$	23.25		$	20.13		$	14.44
Income from Investment Operations:
Net investment income (loss)(2)		(0.14	)		(0.09	)		0.10			0.07			0.16			0.18
Net realized and unrealized gain
(loss) on investments		1.78			10.70			4.24			(3.35	)		3.38			5.78
Total from investment
operations		1.64			10.61			4.34			(3.28	)		3.54			5.96
Redemption Fees(3)		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			(0.26	)		(0.20	)		(0.18	)		(0.42	)		(0.27	)
Total distributions		—			(0.26	)		(0.20	)		(0.18	)		(0.42	)		(0.27	)
Net Asset Value, End of Period	$	35.92		$	34.28		$	23.93		$	19.79		$	23.25		$	20.13
Total return		4.75	%(4)		44.40	%		21.99	%		(14.13	)%		17.62	%		41.31	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	331,212		$	333,682		$	192,478		$	134,309		$	142,261		$	125,372
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.64	%(5)		1.67	%		1.73	%		1.73	%		1.71	%		1.68	%
After expense reimbursement(6)		1.44	%(5)		1.44	%		1.44	%		1.44	%		1.44	%		1.44	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.02	)%(5)		(0.55	)%		0.13	%		0.02	%		0.48	%		0.83	%
After expense reimbursement(6)		(0.82	)%(5)		(0.32	)%		0.42	%		0.31	%		0.75	%		1.07	%
Portfolio turnover rate(7)		5	%		4	%		6	%		58	%		7	%		15	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Paradigm Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Medical Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	26.38		$	17.82		$	18.75		$	19.48		$	18.77		$	15.23
Income from Investment Operations:
Net investment income (loss)(2)		0.13			(0.00	)(3)		0.33			0.18			0.10			0.20
Net realized and unrealized gain
on investments		2.42			8.77			1.32			0.82			0.72			3.51
Total from investment
operations		2.55			8.77			1.65			1.00			0.82			3.71
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.01
Less Distributions:
From net investment income		—			(0.06	)		(0.36	)		(0.25	)		(0.11	)		(0.16	)
From net realized gains		—			(0.15	)		(2.22	)		(1.48	)		—			(0.02	)
Total distributions		—			(0.21	)		(2.58	)		(1.73	)		(0.11	)		(0.18	)
Net Asset Value, End of Period	$	28.93		$	26.38		$	17.82		$	18.75		$	19.48		$	18.77
Total return		9.67	%(4)		49.25	%		8.86	%		5.11	%		4.30	%		24.47	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	21,637		$	20,489		$	14,254		$	16,376		$	25,777		$	21,126
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.04	%(5)		2.09	%		2.22	%		2.02	%		2.00	%		2.15	%
After expense reimbursement(6)		1.39	%(5)		1.39	%		1.39	%		1.39	%		1.39	%		1.39	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		0.32	%(5)		(0.70	)%		0.83	%		0.24	%		(0.06	)%		0.42	%
After expense reimbursement(6)		0.97	%(5)		0.00	%		1.66	%		0.87	%		0.55	%		1.17	%
Portfolio turnover rate(7)		3	%		12	%		0	%		5	%		3	%		13	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Medical Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Medical Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	25.62		$	17.33		$	18.29		$	19.06		$	18.36		$	14.90
Income from Investment Operations:
Net investment income (loss)(2)		0.10			(0.06	)		0.27			0.12			0.05			0.15
Net realized and unrealized gain
on investments		2.34			8.52			1.29			0.80			0.71			3.44
Total from investment
operations		2.44			8.46			1.56			0.92			0.76			3.59
Redemption Fees		0.00	(3)		0.01			0.00	(3)		0.00	(3)		0.00	(3)		0.01
Less Distributions:
From net investment income		—			(0.03	)		(0.30	)		(0.21	)		(0.06	)		(0.12	)
From net realized gains		—			(0.15	)		(2.22	)		(1.48	)		—			(0.02	)
Total distributions		—			(0.18	)		(2.52	)		(1.69	)		(0.06	)		(0.14	)
Net Asset Value, End of Period	$	28.06		$	25.62		$	17.33		$	18.29		$	19.06		$	18.36
Total return(4)		9.52	%(5)		48.90	%		8.60	%		4.79	%		4.13	%		24.17	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	4,609		$	3,746		$	2,583		$	3,240		$	4,207		$	4,347
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.29	%(6)		2.34	%		2.47	%		2.27	%		2.25	%		2.40	%
After expense reimbursement(7)		1.64	%(6)		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		0.07	%(6)		(0.95	)%		0.58	%		(0.01	)%		(0.31	)%		0.17	%
After expense reimbursement(7)		0.72	%(6)		(0.25	)%		1.41	%		0.62	%		0.30	%		0.92	%
Portfolio turnover rate(8)		3	%		12	%		0	%		5	%		3	%		13	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The Medical Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Medical Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	25.27		$	17.19		$	18.15		$	18.90		$	18.27		$	14.83
Income from Investment Operations:
Net investment income (loss)(2)		0.03			(0.16	)		0.17			0.02			(0.04	)		0.07
Net realized and unrealized gain
on investments		2.30			8.42			1.29			0.80			0.69			3.41
Total from investment
operations		2.33			8.26			1.46			0.82			0.65			3.48
Redemption Fees		—			—			—			0.00	(3)		—			0.00	(3)
Less Distributions:
From net investment income		—			(0.03	)		(0.20	)		(0.09	)		(0.02	)		(0.02	)
From net realized gains		—			(0.15	)		(2.22	)		(1.48	)		—			(0.02	)
Total distributions		—			(0.18	)		(2.42	)		(1.57	)		(0.02	)		(0.04	)
Net Asset Value, End of Period	$	27.60		$	25.27		$	17.19		$	18.15		$	18.90		$	18.27
Total return		9.22	%(4)		48.08	%		8.08	%		4.32	%		3.55	%		23.50	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	603		$	531		$	450		$	580		$	692		$	454
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.79	%(5)		2.84	%		2.97	%		2.77	%		2.75	%		2.90	%
After expense reimbursement(6)		2.14	%(5)		2.14	%		2.14	%		2.14	%		2.14	%		2.14	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(0.43	)%(5)		(1.45	)%		0.08	%		(0.51	)%		(0.81	)%		(0.33	)%
After expense reimbursement(6)		0.22	%(5)		(0.75	)%		0.91	%		0.12	%		(0.20	)%		0.42	%
Portfolio turnover rate(7)		3	%		12	%		0	%		5	%		3	%		13	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Medical Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Small Cap Opportunities Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	40.12		$	25.17		$	19.85		$	23.32		$	20.83		$	13.17
Income from Investment Operations:
Net investment income (loss)(2)		(0.19	)		(0.10	)		0.01			(0.04	)		(0.04	)		(0.04	)
Net realized and unrealized gain
(loss) on investments		1.72			15.05			5.31			(3.15	)		2.93			7.70
Total from investment
operations		1.53			14.95			5.32			(3.19	)		2.89			7.66
Redemption Fees(3)		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			—			—			(0.28	)		(0.40	)		—
Total distributions		—			—			—			(0.28	)		(0.40	)		—
Net Asset Value, End of Period	$	41.65		$	40.12		$	25.17		$	19.85		$	23.32		$	20.83
Total return		3.81	%(4)		59.40	%		26.74	%		(13.65	)%		13.86	%		58.16	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	334,651		$	277,816		$	63,947		$	67,798		$	130,279		$	161,205
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.70	%(5)		1.73	%		1.96	%		1.90	%		1.86	%		1.86	%
After expense reimbursement(6)		1.64	%(5)		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.01	)%(5)		(0.38	)%		(0.25	)%		(0.44	)%		(0.42	)%		(0.48	)%
After expense reimbursement(6)		(0.95	)%(5)		(0.29	)%		0.07	%		(0.18	)%		(0.20	)%		(0.26	)%
Portfolio turnover rate(7)		9	%		6	%		22	%		47	%		4	%		4	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Small Cap Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Small Cap Opportunities Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	39.39		$	24.77		$	19.59		$	22.98		$	20.53		$	13.01
Income from Investment Operations:
Net investment loss(2)		(0.23	)		(0.18	)		(0.04	)		(0.10	)		(0.09	)		(0.08	)
Net realized and unrealized gain
(loss) on investments		1.67			14.79			5.22			(3.08	)		2.87			7.60
Total from investment
operations		1.44			14.61			5.18			(3.18	)		2.78			7.52
Redemption Fees		0.00	(3)		0.01			0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)
Less Distributions:
From net investment income		—			—			—			(0.21	)		(0.33	)		—
Total distributions		—			—			—			(0.21	)		(0.33	)		—
Net Asset Value, End of Period	$	40.83		$	39.39		$	24.77		$	19.59		$	22.98		$	20.53
Total return(4)		3.66	%(5)		59.02	%		26.44	%		(13.85	)%		13.56	%		57.80	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	37,475		$	21,871		$	7,558		$	7,250		$	11,509		$	14,244
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.95	%(6)		1.98	%		2.21	%		2.15	%		2.11	%		2.11	%
After expense reimbursement(7)		1.89	%(6)		1.89	%		1.89	%		1.89	%		1.89	%		1.89	%
Ratio of net investment loss
to average net assets:
Before expense reimbursement		(1.26	)%(6)		(0.63	)%		(0.50	)%		(0.69	)%		(0.67	)%		(0.73	)%
After expense reimbursement(7)		(1.20	)%(6)		(0.54	)%		(0.18	)%		(0.43	)%		(0.45	)%		(0.51	)%
Portfolio turnover rate(8)		9	%		6	%		22	%		47	%		4	%		4	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The Small Cap Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Small Cap Opportunities Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	38.53		$	24.35		$	19.36		$	22.68		$	20.28		$	12.92
Income from Investment Operations:
Net investment loss(2)		(0.32	)		(0.34	)		(0.15	)		(0.20	)		(0.20	)		(0.16	)
Net realized and unrealized gain
(loss) on investments		1.64			14.51			5.14			(3.04	)		2.84			7.52
Total from investment
operations		1.32			14.17			4.99			(3.24	)		2.64			7.36
Redemption Fees		0.01			0.01			—			—			—			0.00	(3)
Less Distributions:
From net investment income		—			—			—			(0.08	)		(0.24	)		—
Total distributions		—			—			—			(0.08	)		(0.24	)		—
Net Asset Value, End of Period	$	39.86		$	38.53		$	24.35		$	19.36		$	22.68		$	20.28
Total return		3.45	%(4)		58.23	%		25.77	%		(14.29	)%		13.00	%		56.97	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	13,531		$	7,178		$	2,536		$	2,440		$	3,450		$	4,445
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.45	%(5)		2.48	%		2.71	%		2.65	%		2.61	%		2.61	%
After expense reimbursement(6)		2.39	%(5)		2.39	%		2.39	%		2.39	%		2.39	%		2.39	%
Ratio of net investment loss to
average net assets:
Before expense reimbursement		(1.76	)%(5)		(1.13	)%		(1.00	)%		(1.19	)%		(1.17	)%		(1.23	)%
After expense reimbursement(6)		(1.70	)%(5)		(1.04	)%		(0.68	)%		(0.93	)%		(0.95	)%		(1.01	)%
Portfolio turnover rate(7)		9	%		6	%		22	%		47	%		4	%		4	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Small Cap Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Small Cap Opportunities Fund
	Institutional Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	40.44		$	25.32		$	19.93		$	23.45		$	20.90		$	13.19
Income from Investment Operations:
Net investment income (loss)(2)		(0.15	)		(0.03	)		0.06			0.00	(3)		0.00	(3)		(0.01	)
Net realized and unrealized gain
(loss) on investments		1.72			15.15			5.33			(3.17	)		2.95			7.72
Total from investment
operations		1.57			15.12			5.39			(3.17	)		2.95			7.71
Redemption Fees		0.00	(3)		—			0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)
Less Distributions:
From net investment income		—			—			—			(0.35	)		(0.40	)		—
Total distributions		—			—			—			(0.35	)		(0.40	)		—
Net Asset Value, End of Period	$	42.01		$	40.44		$	25.32		$	19.93		$	23.45		$	20.90
Total return		3.88	%(4)		59.72	%		27.04	%		(13.51	)%		14.10	%		58.45	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	40,187		$	41,032		$	7,482		$	5,498		$	9,808		$	19,749
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.65	%(5)		1.68	%		1.91	%		1.85	%		1.81	%		1.81	%
After expense reimbursement(6)		1.44	%(5)		1.44	%		1.44	%		1.44	%		1.44	%		1.44	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(0.96	)%(5)		(0.33	)%		(0.20	)%		(0.39	)%		(0.37	)%		(0.43	)%
After expense reimbursement(6)		(0.75	)%(5)		(0.09	)%		0.27	%		0.02	%		0.00	%		(0.06	)%
Portfolio turnover rate(7)		9	%		6	%		22	%		47	%		4	%		4	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Small Cap Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Market Opportunities Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	17.66		$	12.08		$	10.45		$	11.46		$	10.84		$	7.22
Income from Investment Operations:
Net investment income (loss)(2)		(0.03	)		0.00	(3)		0.03			0.01			0.04			0.00	(3)
Net realized and unrealized gain
(loss) on investments		0.12			5.65			1.80			(0.91	)		1.18			3.62
Total from investment
operations		0.09			5.65			1.83			(0.90	)		1.22			3.62
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.01
Less Distributions:
From net investment income		—			(0.07	)		(0.20	)		(0.11	)		(0.60	)		(0.01	)
Total distributions		—			(0.07	)		(0.20	)		(0.11	)		(0.60	)		(0.01	)
Net Asset Value, End of Period	$	17.75		$	17.66		$	12.08		$	10.45		$	11.46		$	10.84
Total return		0.51	%(4)		46.74	%		17.52	%		(7.85	)%		11.31	%		50.21	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	44,957		$	47,466		$	32,929		$	30,191		$	38,562		$	41,254
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.85	%(5)		1.88	%		1.97	%		1.93	%		1.92	%		1.93	%
After expense reimbursement(6)		1.64	%(5)		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(0.52	)%(5)		(0.21	)%		(0.10	)%		(0.20	)%		0.06	%		(0.25	)%
After expense reimbursement(6)		(0.31	)%(5)		0.03	%		0.23	%		0.09	%		0.34	%		0.04	%
Portfolio turnover rate(7)		14	%		21	%		26	%		14	%		12	%		14	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Market Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Market Opportunities Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	17.60		$	12.07		$	10.43		$	11.43		$	10.80		$	7.22
Income from Investment Operations:
Net investment income (loss)(2)		(0.05	)		(0.03	)		0.00	(3)		(0.02	)		0.01			(0.02	)
Net realized and unrealized gain
(loss) on investments		0.12			5.63			1.80			(0.90	)		1.19			3.61
Total from investment
operations		0.07			5.60			1.80			(0.92	)		1.20			3.59
Redemption Fees		—			0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)
Less Distributions:
From net investment income		—			(0.07	)		(0.16	)		(0.08	)		(0.57	)		(0.01	)
Total distributions		—			(0.07	)		(0.16	)		(0.08	)		(0.57	)		(0.01	)
Net Asset Value, End of Period	$	17.67		$	17.60		$	12.07		$	10.43		$	11.43		$	10.80
Total return(4)		0.40	%(5)		46.36	%		17.26	%		(8.08	)%		11.11	%		49.66	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	10,744		$	11,742		$	6,518		$	8,600		$	14,167		$	18,770
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.10	%(6)		2.13	%		2.22	%		2.18	%		2.17	%		2.18	%
After expense reimbursement(7)		1.89	%(6)		1.89	%		1.89	%		1.89	%		1.89	%		1.89	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(0.77	)%(6)		(0.46	)%		(0.35	)%		(0.45	)%		(0.19	)%		(0.50	)%
After expense reimbursement(7)		(0.56	)%(6)		(0.22	)%		(0.02	)%		(0.16	)%		0.09	%		(0.21	)%
Portfolio turnover rate(8)		14	%		21	%		26	%		14	%		12	%		14	%

(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.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Market Opportunities Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	17.32		$	11.94		$	10.32		$	11.30		$	10.69		$	7.17
Income from Investment Operations:
Net investment loss(2)		(0.09	)		(0.11	)		(0.06	)		(0.08	)		(0.04	)		(0.06	)
Net realized and unrealized gain
(loss) on investments		0.11			5.56			1.78			(0.88	)		1.17			3.59
Total from investment
operations		0.02			5.45			1.72			(0.96	)		1.13			3.53
Redemption Fees		—			0.00	(3)		0.00	(3)		—			0.00	(3)		0.00	(3)
Less Distributions:
From net investment income		—			(0.07	)		(0.10	)		(0.02	)		(0.52	)		(0.01	)
Total distributions		—			(0.07	)		(0.10	)		(0.02	)		(0.52	)		(0.01	)
Net Asset Value, End of Period	$	17.34		$	17.32		$	11.94		$	10.32		$	11.30		$	10.69
Total return		0.12	%(4)		45.61	%		16.70	%		(8.51	)%		10.54	%		49.17	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	5,818		$	5,525		$	3,932		$	4,233		$	5,569		$	6,055
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.60	%(5)		2.63	%		2.72	%		2.68	%		2.67	%		2.68	%
After expense reimbursement(6)		2.39	%(5)		2.39	%		2.39	%		2.39	%		2.39	%		2.39	%
Ratio of net investment loss
to average net assets:
Before expense reimbursement		(1.27	)%(5)		(0.96	)%		(0.85	)%		(0.95	)%		(0.69	)%		(1.00	)%
After expense reimbursement(6)		(1.06	)%(5)		(0.72	)%		(0.52	)%		(0.66	)%		(0.41	)%		(0.71	)%
Portfolio turnover rate(7)		14	%		21	%		26	%		14	%		12	%		14	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Market Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Market Opportunities Fund
	Institutional Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value, Beginning
of Period	$	17.74		$	12.10		$	10.46		$	11.48		$	10.86		$	7.21
Income from Investment Operations:
Net investment income (loss)(2)		(0.01	)		0.03			0.05			0.03			0.06			0.02
Net realized and unrealized gain
(loss) on investments		0.12			5.67			1.81			(0.92	)		1.19			3.64
Total from investment
operations		0.11			5.70			1.86			(0.89	)		1.25			3.66
Redemption Fees		—			0.01			—			—			—			—
Less Distributions:
From net investment income		—			(0.07	)		(0.22	)		(0.13	)		(0.63	)		(0.01	)
Total distributions		—			(0.07	)		(0.22	)		(0.13	)		(0.63	)		(0.01	)
Net Asset Value, End of Period	$	17.85		$	17.74		$	12.10		$	10.46		$	11.48		$	10.86
Total return		0.62	%(3)		47.15	%		17.83	%		(7.71	)%		11.54	%		50.70	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	2,010		$	1,809		$	229		$	186		$	212		$	19
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.80	%(4)		1.83	%		1.92	%		1.88	%		1.87	%		1.88	%
After expense reimbursement(5)		1.44	%(4)		1.44	%		1.44	%		1.44	%		1.44	%		1.44	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(0.47	)%(4)		(0.16	)%		(0.05	)%		(0.15	)%		0.11	%		(0.20	)%
After expense reimbursement(5)		(0.11	)%(4)		0.23	%		0.43	%		0.29	%		0.54	%		0.24	%
Portfolio turnover rate(6)		14	%		21	%		26	%		14	%		12	%		14	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Not annualized.
(4)	Annualized.
(5)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(6)	Portfolio turnover of The Market Opportunities Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Alternative Income Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012(1)			For the Year Ended December 31, 2011(1)			For the Year Ended December 31, 2010(1)			For the Year Ended December 31, 2009(1)
PER SHARE DATA:(2)
Net Asset Value, Beginning
of Period	$	87.88		$	83.31		$	77.90		$	83.82		$	88.57		$	76.13
Income from Investment Operations:
Net investment income (loss)(3)		(0.09	)		(0.21	)		1.53			1.03			0.72			0.37
Net realized and unrealized gain
(loss) on investments		2.30			4.78			6.09			(5.13	)		(4.75	)		12.08
Total from investment
operations		2.21			4.57			7.62			(4.10	)		(4.03	)		12.45
Redemption Fees		0.00	(4)		0.00	(4)		0.00	(4)		0.00	(4)		0.00	(4)		0.01
Less Distributions:
From net investment income		—			—			(2.21	)		(1.82	)		(0.72	)		(0.02	)
Total distributions		—			—			(2.21	)		(1.82	)		(0.72	)		(0.02	)
Net Asset Value, End of Period	$	90.09		$	87.88		$	83.31		$	77.90		$	83.82		$	88.57
Total return		2.67	%(5)		5.22	%		9.90	%		(4.88	)%		(4.60	)%		16.46	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	13,655		$	11,848		$	4,699		$	5,613		$	7,001		$	7,176
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.83	%(6)		2.23	%		2.55	%		2.29	%		2.17	%		2.36	%
After expense reimbursement(7)		0.95	%(6)		0.95	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.08	)%(6)		(1.52	)%		0.93	%		0.59	%		0.33	%		(0.26	)%
After expense reimbursement(7)		(0.20	)%(6)		(0.24	)%		1.84	%		1.24	%		0.86	%		0.46	%
Portfolio turnover rate(8)		8	%		19	%		56	%		69	%		111	%		45	%

(1)	Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013.
(2)	Information presented relates to a share of capital stock outstanding for each period.
(3)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(4)	Amount calculated is less than $0.005.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The Alternative Income Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Alternative Income Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012(1)			For the Year Ended December 31, 2011(1)			For the Year Ended December 31, 2010(1)			For the Year Ended December 31, 2009(1)
PER SHARE DATA:(2)
Net Asset Value, Beginning
of Period	$	87.73		$	83.38		$	77.76		$	83.52		$	88.18		$	75.94
Income from Investment Operations:
Net investment income (loss)(3)		(0.20	)		(0.43	)		1.31			0.82			0.50			0.17
Net realized and unrealized gain
(loss) on investments		2.30			4.77			6.09			(5.13	)		(4.70	)		12.06
Total from investment
operations		2.10			4.34			7.40			(4.31	)		(4.20	)		12.23
Redemption Fees		0.00	(4)		0.01			0.00	(4)		0.01			0.01			0.01
Less Distributions:
From net investment income		—			—			(1.78	)		(1.46	)		(0.47	)		—
Total distributions		—			—			(1.78	)		(1.46	)		(0.47	)		—
Net Asset Value, End of Period	$	89.83		$	87.73		$	83.38		$	77.76		$	83.52		$	88.18
Total return(5)		2.55	%(6)		4.91	%		9.61	%		(5.08	)%		(4.80	)%		16.21	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	4,681		$	2,898		$	2,597		$	4,559		$	10,100		$	10,339
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.08	%(7)		2.48	%		2.80	%		2.54	%		2.42	%		2.61	%
After expense reimbursement(8)		1.20	%(7)		1.20	%		1.89	%		1.89	%		1.89	%		1.89	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.33	)%(7)		(1.77	)%		0.68	%		0.34	%		0.08	%		(0.51	)%
After expense reimbursement(8)		(0.45	)%(7)		(0.49	)%		1.59	%		0.99	%		0.61	%		0.21	%
Portfolio turnover rate(9)		8	%		19	%		56	%		69	%		111	%		45	%

(1)	Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013.
(2)	Information presented relates to a share of capital stock outstanding for each period.
(3)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(4)	Amount calculated is less than $0.005.
(5)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(6)	Not annualized.
(7)	Annualized.
(8)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(9)	Portfolio turnover of The Alternative Income Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Alternative Income Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012(1)			For the Year Ended December 31, 2011(1)			For the Year Ended December 31, 2010(1)			For the Year Ended December 31, 2009(1)
PER SHARE DATA:(2)
Net Asset Value, Beginning
of Period	$	86.10		$	82.26		$	76.75		$	82.53		$	87.12		$	75.42
Income from Investment Operations:
Net investment income (loss)(3)		(0.41	)		(0.84	)		0.89			0.40			0.09			(0.23	)
Net realized and unrealized gain
(loss) on investments		2.24			4.68			6.00			(5.03	)		(4.57	)		11.93
Total from investment
operations		1.83			3.84			6.89			(4.63	)		(4.48	)		11.70
Redemption Fees		—			—			0.00	(4)		0.01			0.00	(4)		0.00	(4)
Less Distributions:
From net investment income		—			—			(1.38	)		(1.16	)		(0.11	)		—
Total distributions		—			—			(1.38	)		(1.16	)		(0.11	)		—
Net Asset Value, End of Period	$	87.93		$	86.10		$	82.26		$	76.75		$	82.53		$	87.12
Total return		2.28	%(5)		4.46	%		8.96	%		(5.51	)%		(5.15	)%		15.52	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,330		$	1,862		$	1,763		$	2,316		$	2,840		$	2,700
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.58	%(6)		2.98	%		3.30	%		3.04	%		2.92	%		3.11	%
After expense reimbursement(7)		1.70	%(6)		1.70	%		2.39	%		2.39	%		2.39	%		2.39	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		(1.83	)%(6)		(2.27	)%		0.18	%		(0.16	)%		(0.42	)%		(1.01	)%
After expense reimbursement(7)		(0.95	)%(6)		(0.99	)%		1.09	%		0.49	%		0.11	%		(0.29	)%
Portfolio turnover rate(8)		8	%		19	%		56	%		69	%		111	%		45	%

(1)	Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013.
(2)	Information presented relates to a share of capital stock outstanding for each period.
(3)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(4)	Amount calculated is less than $0.005. (5) Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The Alternative Income Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Alternative Income Fund
	Institutional Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012(1)			For the Year Ended December 31, 2011(1)			For the Year Ended December 31, 2010(1)			For the Year Ended December 31, 2009(1)
PER SHARE DATA:(2)
Net Asset Value, Beginning
of Period	$	88.76		$	84.00		$	78.49		$	84.22		$	88.97		$	76.32
Income from Investment Operations:
Net investment income (loss)(3)		0.00	(4)		(0.04	)		1.72			1.21			0.88			0.55
Net realized and unrealized gain
(loss) on investments		2.32			4.80			6.16			(5.13	)		(4.74	)		12.26
Total from investment
operations		2.32			4.76			7.88			(3.92	)		(3.86	)		12.81
Redemption Fees		—			—			0.01			0.17			0.01			0.06
Less Distributions:
From net investment income		—			—			(2.38	)		(1.98	)		(0.90	)		(0.22	)
Total distributions		—			—			(2.38	)		(1.98	)		(0.90	)		(0.22	)
Net Asset Value, End of Period	$	91.08		$	88.76		$	84.00		$	78.49		$	84.22		$	88.97
Total return		2.76	%(5)		5.39	%		10.17	%		(4.43	)%		(4.38	)%		16.94	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	10,199		$	6,854		$	1,629		$	798		$	4,182		$	2,905
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.78	%(6)		2.18	%		2.50	%		2.24	%		2.12	%		2.31	%
After expense reimbursement(7)		0.75	%(6)		0.75	%		1.44	%		1.44	%		1.44	%		1.44	%
Ratio of net investment income (loss) to
average net assets:
Before expense reimbursement		(1.03	)%(6)		(1.47	)%		0.98	%		0.64	%		0.38	%		(0.21	)%
After expense reimbursement(7)		0.00	%(6)		(0.04	)%		2.04	%		1.44	%		1.06	%		0.66	%
Portfolio turnover rate(8)		8	%		19	%		56	%		69	%		111	%		45	%

(1)	Per share data adjusted for 1:10 reverse stock split completed as of May 31, 2013.
(2)	Information presented relates to a share of capital stock outstanding for each period.
(3)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(4)	Amount calculated is less than $0.005.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The Alternative Income Portfolio.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Multi-Disciplinary Fund
	No Load Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value,
Beginning of Period	$	11.02		$	11.08		$	10.09		$	10.47		$	9.86		$	8.22
Income from Investment Operations:
Net investment income(2)		0.12			0.20			0.34			0.83			0.35			0.09
Net realized and unrealized gain
(loss) on investments		0.42			0.28			1.20			(0.80	)		0.91			1.79
Total from investment
operations		0.54			0.48			1.54			0.03			1.26			1.88
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		—
Less Distributions:
From net investment income		(0.10	)		(0.28	)		(0.43	)		(0.36	)		(0.35	)		(0.08	)
From net realized gains		(0.05	)		(0.26	)		(0.12	)		(0.05	)		(0.30	)		(0.16	)
Total distributions		(0.15	)		(0.54	)		(0.55	)		(0.41	)		(0.65	)		(0.24	)
Net Asset Value, End of Period	$	11.41		$	11.02		$	11.08		$	10.09		$	10.47		$	9.86
Total return		4.90	%(4)		4.28	%		15.38	%		0.24	%		13.04	%		22.90	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	20,360		$	19,553		$	19,566		$	13,389		$	3,489		$	938
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.80	%(5)		1.83	%(8)		2.00	%		2.38	%		6.11	%		13.11	%
After expense reimbursement(6)		1.49	%(5)		1.50	%(8)		1.49	%		1.49	%		1.49	%		1.49	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		1.78	%(5)		1.41	%(9)		2.65	%		7.09	%		(1.19	)%		(10.69	)%
After expense reimbursement(6)		2.09	%(5)		1.74	%(9)		3.16	%		7.98	%		3.43	%		0.93	%
Portfolio turnover rate(7)		20	%		54	%		41	%		74	%		38	%		77	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Multi-Disciplinary Portfolio.
(8)	The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 1.82% before expense reimbursement and 1.49% after expense reimbursement.
(9)	The ratio of net investment income includes borrowing expense on securities sold short.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Multi-Disciplinary Fund
	Advisor Class A
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value,
Beginning of Period	$	10.98		$	11.03		$	10.05		$	10.44		$	9.85		$	8.20
Income from Investment Operations:
Net investment income(2)		0.10			0.17			0.31			0.78			0.33			0.06
Net realized and unrealized gain
(loss) on investments		0.43			0.29			1.20			(0.78	)		0.89			1.80
Total from investment
operations		0.53			0.46			1.51			—			1.22			1.86
Redemption Fees		0.00	(3)		0.00	(3)		0.00	(3)		—			—			—
Less Distributions:
From net investment income		(0.09	)		(0.25	)		(0.41	)		(0.34	)		(0.33	)		(0.05	)
From net realized gains		(0.05	)		(0.26	)		(0.12	)		(0.05	)		(0.30	)		(0.16	)
Total distributions		(0.14	)		(0.51	)		(0.53	)		(0.39	)		(0.63	)		(0.21	)
Net Asset Value, End of Period	$	11.37		$	10.98		$	11.03		$	10.05		$	10.44		$	9.85
Total return(4)		4.76	%(5)		4.15	%		15.12	%		(0.01	)%		12.64	%		22.73	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	25,442		$	36,170		$	25,764		$	4,726		$	356		$	103
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.05	%(6)		2.08	%(9)		2.25	%		2.63	%		6.36	%		13.36	%
After expense reimbursement(7)		1.74	%(6)		1.75	%(9)		1.74	%		1.74	%		1.74	%		1.74	%
Ratio of net investment income (loss)
to average net assets:
Before expense reimbursement		1.53	%(6)		1.16	%(10)		2.40	%		6.84	%		(1.44	)%		(10.94	)%
After expense reimbursement(7)		1.84	%(6)		1.49	%(10)		2.91	%		7.73	%		3.18	%		0.68	%
Portfolio turnover rate(8)		20	%		54	%		41	%		74	%		38	%		77	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	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 ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 2.07% before expense reimbursement and 1.74% after expense reimbursement.
(10)	The ratio of net investment income includes borrowing expense on securities sold short.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Multi-Disciplinary Fund
	Advisor Class C
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value,
Beginning of Period	$	10.90		$	10.96		$	10.00		$	10.40		$	9.80		$	8.17
Income from Investment Operations:
Net investment income(2)		0.07			0.11			0.26			0.74			0.27			0.02
Net realized and unrealized gain
(loss) on investments		0.42			0.29			1.18			(0.78	)		0.90			1.78
Total from investment
operations		0.49			0.40			1.44			(0.04	)		1.17			1.80
Redemption Fees		0.00	(3)		—			—			—			—			—
Less Distributions:
From net investment income		(0.07	)		(0.20	)		(0.36	)		(0.31	)		(0.27	)		(0.01	)
From net realized gains		(0.05	)		(0.26	)		(0.12	)		(0.05	)		(0.30	)		(0.16	)
Total distributions		(0.12	)		(0.46	)		(0.48	)		(0.36	)		(0.57	)		(0.17	)
Net Asset Value, End of Period	$	11.27		$	10.90		$	10.96		$	10.00		$	10.40		$	9.80
Total return		4.44	%(4)		3.59	%		14.48	%		(0.49	)%		12.13	%		22.03	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	11,868		$	11,209		$	7,485		$	1,645		$	128		$	105
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.55	%(5)		2.58	%(8)		2.75	%		3.13	%		6.86	%		13.86	%
After expense reimbursement(6)		2.24	%(5)		2.25	%(8)		2.24	%		2.24	%		2.24	%		2.24	%
Ratio of net investment income
(loss) to average net assets:
Before expense reimbursement		1.03	%(5)		0.66	%(9)		1.90	%		6.34	%		(1.94	)%		(11.44	)%
After expense reimbursement(6)		1.34	%(5)		0.99	%(9)		2.41	%		7.23	%		2.68	%		0.18	%
Portfolio turnover rate(7)		20	%		54	%		41	%		74	%		38	%		77	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The Multi-Disciplinary Portfolio.
(8)	The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 2.57% before expense reimbursement and 2.24% after expense reimbursement.
(9)	The ratio of net investment income includes borrowing expense on securities sold short.

The accompanying notes are an integral part of these financial statements.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)

	The Multi-Disciplinary Fund
	Institutional Class
	For the Six Months Ended June 30, 2014 (Unaudited)			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012			For the Year Ended December 31, 2011			For the Year Ended December 31, 2010			For the Year Ended December 31, 2009
PER SHARE DATA:(1)
Net Asset Value,
Beginning of Period	$	11.06		$	11.11		$	10.12		$	10.50		$	9.89		$	8.23
Income from Investment Operations:
Net investment income(2)		0.13			0.22			0.36			0.85			0.37			0.10
Net realized and unrealized gain
(loss) on investments		0.42			0.29			1.20			(0.80	)		0.91			1.81
Total from investment
operations		0.55			0.51			1.56			0.05			1.28			1.91
Redemption Fees		—			—			—			—			—			—
Less Distributions:
From net investment income		(0.11	)		(0.30	)		(0.45	)		(0.38	)		(0.37	)		(0.09	)
From net realized gains		(0.05	)		(0.26	)		(0.12	)		(0.05	)		(0.30	)		(0.16	)
Total distributions		(0.16	)		(0.56	)		(0.57	)		(0.43	)		(0.67	)		(0.25	)
Net Asset Value, End of Period	$	11.45		$	11.06		$	11.11		$	10.12		$	10.50		$	9.89
Total return		4.98	%(3)		4.58	%		15.55	%		0.42	%		13.19	%		23.25	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	55,079		$	23,227		$	6,576		$	3,878		$	142		$	101
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.75	%(4)		1.78	%(7)		1.95	%		2.33	%		6.06	%		13.06	%
After expense reimbursement(5)		1.29	%(4)		1.30	%(7)		1.29	%		1.29	%		1.29	%		1.29	%
Ratio of net investment income
(loss) to average net assets:
Before expense reimbursement		1.83	%(4)		1.46	%(8)		2.70	%		7.14	%		(1.14	)%		(10.64	)%
After expense reimbursement(5)		2.29	%(4)		1.94	%(8)		3.36	%		8.18	%		3.63	%		1.13	%
Portfolio turnover rate(6)		20	%		54	%		41	%		74	%		38	%		77	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Not annualized.
(4)	Annualized.
(5)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(6)	Portfolio turnover of The Multi-Disciplinary Portfolio.
(7)	The ratio of expenses includes borrowing expense on securities sold short. The expense ratio excluding borrowing expenses on securities sold short was 1.77% before expense reimbursement and 1.29% after expense reimbursement.
(8)	The ratio of net investment income includes borrowing expense on securities sold short.

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited)

The Internet Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Information	$	97,537,633		58.0	%
Retail Trade		22,239,149		13.2	%
Management of Companies and Enterprises		15,872,573		9.5	%
Arts, Entertainment, and Recreation		14,200,290		8.5	%
Finance and Insurance		8,911,763		5.3	%
Manufacturing		5,027,224		3.0	%
Real Estate and Rental and Leasing		409,400		0.2	%
Administrative and Support and Waste Management and
Remediation Services		377,560		0.2	%
Professional, Scientific, and Technical Services		13,080		0.0	%

* Excludes Short-Term Investments

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Global Portfolio

			Percentage
	Market		of Total
Country Allocation*	Value		Net Assets
United States	$	5,560,024		50.9	%
Canada		2,663,288		24.5	%
France		876,243		8.1	%
Cayman Islands		679,692		6.3	%
Switzerland		293,798		2.7	%
Spain		161,798		1.5	%
Singapore		70,495		0.7	%
Guernsey		75,558		0.7	%
Brazil		49,847		0.5	%
Greece		45,461		0.4	%
Japan		38,450		0.4	%
Argentina		23,033		0.2	%
Germany		6,967		0.1	%

* Excludes Short-Term Investments

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Paradigm Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Information	$	317,065,034		23.3	%
Real Estate and Rental and Leasing		212,172,199		15.7	%
Management of Companies and Enterprises		160,853,060		11.9	%
Finance and Insurance		136,964,780		10.1	%
Arts, Entertainment, and Recreation		115,341,900		8.5	%
Retail Trade		109,852,273		8.1	%
Manufacturing		82,400,955		6.1	%
Mining, Quarrying, and Oil and Gas Extraction		73,823,393		5.5	%
Petroleum and Gas		65,962,118		4.9	%
Utilities		2,750,600		0.2	%
Construction		1,104,074		0.1	%
Transportation and Warehousing		953,641		0.1	%
Accommodation and Food Services		337,528		0.0	%
Wholesale Trade		66,857		0.0	%

* Excludes Short-Term Investments

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Medical Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Manufacturing	$	23,622,502		88.0	%
Professional, Scientific, and Technical Services		2,233,452		8.3	%
Finance and Insurance		9,240		0.0	%

* Excludes Short-Term Investments

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Small Cap Opportunities Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Real Estate and Rental and Leasing	$	101,327,144		23.9	%
Manufacturing		101,313,979		23.8	%
Finance and Insurance		66,548,699		15.6	%
Petroleum and Gas		35,944,695		8.4	%
Management of Companies and Enterprises		34,546,235		8.1	%
Information		23,592,080		5.5	%
Retail Trade		23,030,370		5.4	%
Arts, Entertainment, and Recreation		15,974,430		3.8	%
Mining, Quarrying, and Oil and Gas Extraction		6,970,065		1.6	%
Accommodation and Food Services		4,528,990		1.1	%
Wholesale Trade		946,944		0.2	%
Transportation Equipment		880,190		0.2	%

* Excludes Short-Term Investments

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Market Opportunities Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Finance and Insurance	$	29,943,886		47.0	%
Real Estate and Rental and Leasing		8,371,901		13.2	%
Management of Companies and Enterprises		8,251,689		13.0	%
Petroleum and Gas		4,867,344		7.7	%
Retail Trade		2,643,630		4.2	%
Accommodation and Food Services		1,419,060		2.2	%
Arts, Entertainment, and Recreation		884,152		1.4	%
Information		672,344		1.1	%
Mining, Quarrying, and Oil and Gas Extraction		229,360		0.4	%
Manufacturing		75,911		0.1	%
Wholesale Trade		17,856		0.0	%
Support Activities for Water Transportation		10,037		0.0	%

* Excludes Short-Term Investments

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Alternative Income Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Finance and Insurance	$	11,942,241		40.0	%
Manufacturing		8,773,564		29.3	%
Information		1,800,048		6.0	%
Retail Trade		1,780,075		5.9	%
Public Administration		1,599,897		5.3	%
Mining, Quarrying, and Oil and Gas Extraction		936,882		3.1	%
Utilities		357,474		1.2	%
Professional, Scientific, and Technical Services		242,834		0.8	%
Wholesale Trade		200,878		0.7	%
Accommodations and Food Services		200,314		0.7	%
Administrative and Support and Waste Management and
Remediation Services		104,028		0.3	%
Transportation and Warehousing		101,939		0.3	%

* Excludes Short-Term Investments & Written Options

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2014 (Unaudited) — (Continued)

The Multi-Disciplinary Portfolio

			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Information	$	24,993,207		22.3	%
Manufacturing		18,306,390		16.2	%
Finance and Insurance		17,080,676		15.1	%
Mining, Quarrying, and Oil and Gas Extraction		14,528,224		12.8	%
Administrative and Support and Waste Management and
Remediation Services		8,911,384		7.9	%
Real Estate and Rental and Leasing		6,557,528		5.8	%
Accommodation and Food Services		3,731,063		3.3	%
Construction		3,660,000		3.2	%
Retail Trade		3,620,625		3.2	%
Arts, Entertainment, and Recreation		2,761,273		2.4	%
Wholesale Trade		1,901,688		1.7	%
Other Services (except Public Administration)		1,305,443		1.2	%
Transportation and Warehousing		525,000		0.5	%
Health Care and Social Assistance		326,625		0.3	%
Professional, Scientific, and Technical Services		253,125		0.2	%
Utilities		115,250		0.1	%

* Excludes Short-Term Investments & Written Options

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Internet Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited)

Identifier	COMMON STOCKS — 97.86%	Shares		Value
	Administrative and Support Services — 0.23%
CRMZ	CreditRiskMonitor.com, Inc.	600	$	1,740
CTRP	Ctrip.com International Ltd. — ADR*	5,800		371,432
IILG	Interval Leisure Group, Inc.^	200		4,388
				377,560
	Broadcasting (except Internet) — 3.67%
CBS	CBS Corporation — Class B	53,300		3,312,062
DIS	The Walt Disney Company^	33,300		2,855,142
				6,167,204
	Computer and Electronic Product Manufacturing — 0.33%
QCOM	QUALCOMM Inc.	7,000		554,400
	Credit Intermediation and Related Activities — 0.17%
TREE	Tree.com, Inc.*^	9,833		286,534
	Data Processing, Hosting and Related Services — 0.19%
CSGP	CoStar Group, Inc.*	2,000		316,340
	Data Processor — 3.60%
MA	MasterCard, Inc. — Class A	36,000		2,644,920
VRSK	Verisk Analytics, Inc. — Class A*	7,700		462,154
V	Visa, Inc. — Class A^	14,000		2,949,940
				6,057,014
	Defense — 2.27%
CACI	CACI International, Inc. — Class A*^	40,000		2,808,400
MANT	ManTech International Corporation — Class A	34,000		1,003,680
				3,812,080
	E-Commerce — 12.68%
EBAY	eBay, Inc.*^	72,000		3,604,320
IACI	IAC/InterActiveCorp	100,000		6,923,000
LINTA	Liberty Interactive Corporation — Class A*	367,400		10,786,864
				21,314,184
	Gaming — 1.66%
200 HK	Melco International Development Limited	920,000		2,783,598
	General Merchandise Stores — 0.01%
SHLD	Sears Holdings Corporation*^	400		15,984

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Internet Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Global Exchanges — 0.20%
EXAE GA	Hellenic Exchanges S.A. Holding Clearing Settlement
	and Registry*	11,000	$	125,017
JSE SJ	JSE Limited	24,000		216,417
				341,434
	Holding Company — 16.87%
GBLS BB	Groupe Bruxelles Lambert S.A. Strip VVPR*+	2,000		—
IEP	Icahn Enterprises LP	37,177		3,706,519
LMCA	Liberty Media Corporation — Class A*	118,800		16,237,584
LVNTA	Liberty Ventures — Series A*	114,000		8,413,200
				28,357,303
	Media — 19.34%
DISCA	Discovery Communications, Inc. — Class A*	101,700		7,554,276
SNI	Scripps Networks Interactive — Class A^	77,000		6,247,780
STRZA	Starz — Class A*	129,200		3,848,868
TWX	Time Warner, Inc.	77,000		5,409,250
VIAB	Viacom Inc. — Class B	108,800		9,436,224
				32,496,398
	Motion Picture and Sound Recording Industries — 2.21%
DWA	DreamWorks Animation SKG, Inc. — Class A*	160,000		3,721,600
	Motor Vehicle and Parts Dealers — 0.71%
AN	AutoNation, Inc.*	20,000		1,193,600
	Non-Store Retailers — 1.24%
CPRT	Copart, Inc.*	38,860		1,397,405
LE	Lands’ End, Inc.*	120		4,030
OSTK	Overstock.com, Inc.*	1,000		15,770
BID	Sotheby’s^	16,000		671,840
				2,089,045
	Other Exchanges — 0.04%
CBOE	CBOE Holdings Inc.	1,200		59,052
	Other Information Services — 7.07%
GOOGL	Google Inc. — Class A*	8,600		5,028,162
GOOG	Google Inc. — Class C*	8,600		4,947,408
YHOO	Yahoo! Inc.*^	54,000		1,897,020
				11,872,590

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Internet Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Performing Arts, Spectator Sports, and Related Industries — 5.10%
LYV	Live Nation Entertainment, Inc.*	195,000	$	4,814,550
MSG	The Madison Square Garden Company — Class A*	60,000		3,747,000
				8,561,550
	Professional, Scientific, and Technical Services — 0.01%
MWW	Monster Worldwide, Inc.*	2,000		13,080
	Publishing Industries (except Internet) — 1.11%
SSP	The E.W. Scripps Company — Class A*	77,500		1,639,900
TIME	Time Inc.*	9,625		233,118
				1,873,018
	Rental and Leasing Services — 0.16%
CDCO	Comdisco Holding Company, Inc.*	56,000		274,400
	Satellite Telecommunications — 16.91%
DISH	DISH Network Corp. — Class A*	146,000		9,501,680
SATS	EchoStar Corporation — Class A*	218,000		11,540,920
LBTYK	Liberty Global plc — Series C*^	144,000		6,092,640
LORL	Loral Space & Communications Inc.*	8,600		625,134
VSAT	ViaSat, Inc.*^	11,400		660,744
				28,421,118
	Securities, Commodity Contracts, and Other Financial Investments
	and Related Activities — 1.29%
ICE	IntercontinentalExchange Group, Inc.	8,030		1,516,867
MKTX	MarketAxess Holdings, Inc.	5,700		308,142
OTCM	OTC Markets Group Inc. — Class A	30,600		342,720
				2,167,729
	Security System Services — 0.77%
ASCMA	Ascent Capital Group LLC — Class A*^	19,600		1,293,796
	Telecommunications — 0.02%
ICTG	ICTC Group Inc.*	149		3,278
9984 JP	SoftBank Corp.	400		29,783
				33,061
	TOTAL COMMON STOCKS
	(cost $79,658,372)			164,453,672

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Internet Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier	ESCROW NOTES — 0.00%		Amount		Value
	Special Purpose Entity — 0.00%
006ESC958	Adelphia Communications Corp. Preferred*+	$	190,000	$	—
	TOTAL ESCROW NOTES
	(cost $0)				—

	RIGHTS — 0.08%		Shares
	Rental and Leasing Services — 0.08%
CDCOR	Comdisco Holding Company, Inc.*#		1,800,000		135,000
	TOTAL RIGHTS
	(cost $89,222)				135,000

			Principal
	SHORT-TERM INVESTMENTS — 2.13%		Amount
	Commercial Paper — 2.13%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	3,578,000		3,578,000

			Shares
	Money Market Funds — 0.00%
FIGXX	Fidelity Institutional Government Portfolio — Class I, 0.01%b		7,876		7,876
	TOTAL SHORT-TERM INVESTMENTS
	(cost $3,585,876)				3,585,876

	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
	SECURITIES LENDING — 12.58%
	Money Market Funds — 12.58%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b		21,133,565		21,133,565
	TOTAL INVESTMENTS PURCHASED WITH THE
	CASH PROCEEDS FROM SECURITIES LENDING
	(cost $21,133,565)				21,133,565
	TOTAL INVESTMENTS — 112.65%
	(cost $104,467,035)			$	189,308,113

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Internet Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $20,765,137 at June 30, 2014.
+ —	Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets.
# —	Contingent value right (contingent upon profitability of company).
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
ADR — American Depository Receipt.

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Global Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier	COMMON STOCKS — 96.15%	Shares		Value
	Apparel Manufacturing — 2.48%
MC FP	LVMH Moet Hennessy Louis Vuitton SA	1,400	$	269,916
	Asset Management — 12.29%
APO	Apollo Global Management LLC — Class A	300		8,316
BAM	Brookfield Asset Management Inc. — Class A	4,000		176,080
DDEJF	Dundee Corporation — Class A*	36,000		581,040
JZCP LN	JZ Capital Partners Ltd.	10,000		75,558
ONEXF	Onex Corporation	8,000		496,000
				1,336,994
	Beverage and Tobacco Product Manufacturing — 0.16%
CWGL	Crimson Wine Group Ltd.*^	1,350		12,218
FNEVY	Fraser and Neave Limited — ADR	400		4,860
				17,078
	Chemical Manufacturing — 1.34%
PAH	Platform Specialty Products Corporation*	5,200		145,756
	Construction of Buildings — 2.00%
BRP	Brookfield Residential Properties Inc.*	10,100		209,575
LEN	Lennar Corporation — Class A^	200		8,396
				217,971
	Credit Intermediation and Related Activities — 0.03%
IFT	Imperial Holdings, Inc.*	400		2,728
	Crop Production — 0.21%
CRESY	Cresud S.A.C.I.F.y A. — ADR	1,765		23,033
	E-Commerce — 4.05%
LINTA	Liberty Interactive Corporation — Class A*	15,000		440,400
	Electronics and Appliance Stores — 0.47%
SHOS	Sears Hometown and Outlet Stores Inc.*	2,400		51,528
	European Exchanges — 1.37%
BME SM	Bolsas y Mercados Espanoles	3,130		149,471
	Gaming — 2.29%
WYNN	Wynn Resorts Limited	1,200		249,072
	General Merchandise Stores — 4.13%
SEARF	Sears Canada Inc.^	6,600		89,826
SHLD	Sears Holdings Corporation*^	9,000		359,640
				449,466

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Global Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Global Exchanges — 0.88%
BVMF3 BZ	BM&FBOVESPA SA	9,470	$	49,846
EXAE GA	Hellenic Exchanges S.A. Holding Clearing Settlement
	and Registry*	4,000		45,461
				95,307
	Holding Company — 20.17%
BOL FP	Bollore SA	925		600,370
CKI CN	Clarke Inc.	2,000		20,074
IEP	Icahn Enterprises LP	6,094		607,596
LUK	Leucadia National Corporation	2,200		57,684
LMCA	Liberty Media Corporation — Class A*	3,600		492,048
LVNTA	Liberty Ventures — Series A*	5,200		383,760
PVF CN	Partners Value Fund Inc.*	1,200		32,056
				2,193,588
	Insurance Carriers and Related Activities — 0.74%
AFSI	AmTrust Financial Services, Inc.^	500		20,905
GLRE	Greenlight Capital Re, Ltd. — Class A*	1,800		59,292
				80,197
	Jewelry, Watch, Precious Stone, and Precious Metal Merchant
	Wholesalers — 2.70%
CFR VX	Compagnie Financiere Richemont SA	2,800		293,798
	Lessors of Nonresidential Buildings (except Miniwarehouses) — 5.81%
HHC	The Howard Hughes Corporation*	4,000		631,320
	Media — 2.01%
ATC NA	Altice S.A.*	100		6,967
DISCA	Discovery Communications, Inc. — Class A*	1,200		89,136
STRZA	Starz — Class A*	4,094		121,960
				218,063
	Mining (except Oil and Gas) — 0.69%
FNV	Franco-Nevada Corporation	1,000		57,340
NCQ	NovaCopper Inc.*	666		726
NG	NovaGold Resources Inc.*	4,000		16,840
				74,906
	Motion Picture and Sound Recording Industries — 1.84%
DWA	DreamWorks Animation SKG, Inc. — Class A*	8,600		200,036

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Global Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Oil and Gas — 3.98%
TPL	Texas Pacific Land Trust	2,700	$	432,297
	Oil and Gas Extraction — 9.76%
CLR	Continental Resources, Inc.*	1,050		165,942
PARR	Par Petroleum Corporation*	3,400		68,850
POU CN	Paramount Resources Ltd. — Class A*	1,410		78,689
SEMUF	Siem Industries Inc.*	6,600		620,400
TOU CN	Tourmaline Oil Corp.*	2,415		127,331
				1,061,212
	Other Information Services — 0.01%
IIJI	Internet Initiative Japan Inc. — ADR	100		1,221
	Publishing Industries (except Internet) — 0.11%
PRIS	Promotora de Informaciones S.A. — ADR*^	873		1,641
PRS SM	Promotora de Informaciones S.A. — Class A*	18,310		8,901
PRIS/B US	Promotora de Informaciones S.A. — Class B — ADR*	700		1,785
				12,327
	Real Estate — 8.07%
BPY	Brookfield Property Partners LP	281		5,865
BRE CN	Brookfield Real Estate Services, Inc.	5,050		66,257
CIT SP	City Developments Limited	8,000		65,635
DRM CN	Dream Unlimited Corp. — Class A*	49,200		711,453
TPH	TRI Pointe Homes, Inc.*^	1,800		28,296
				877,506
	Restaurants — 5.16%
BKW	Burger King Worldwide Inc.	1,800		48,996
WEN	The Wendy’s Company^	60,000		511,800
				560,796
	Satellite Telecommunications — 2.75%
DISH	DISH Network Corp. — Class A*	2,000		130,160
SATS	EchoStar Corporation — Class A*	3,200		169,408
				299,568
	Telecommunications — 0.40%
NUM FP	Numericable Group SA*	100		5,957
9984 JP	SoftBank Corp.	500		37,229
				43,186

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Global Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier			Shares		Value
	Transportation Equipment Manufacturing — 0.25%
HEI/A	HEICO Corporation — Class A		675	$	27,405
	TOTAL COMMON STOCKS
	(cost $7,584,738)				10,456,146

	MUTUAL FUNDS — 0.81%
	Funds, Trusts, and Other Financial Vehicles — 0.81%
TRF	Templeton Russia and East European Fund, Inc.		5,800		88,508
	TOTAL MUTUAL FUNDS
	(cost $77,855)				88,508

			Principal
	SHORT-TERM INVESTMENTS — 2.52%		Amount
	Commercial Paper — 2.45%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	267,000		267,000

			Shares
	Money Market Funds — 0.07%
FIGXX	Fidelity Institutional Government Portfolio — Class I, 0.01%b		7,449		7,449
	TOTAL SHORT-TERM INVESTMENTS
	(cost $274,449)				274,449

	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
	SECURITIES LENDING — 6.57%
	Money Market Funds — 6.57%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b		714,121		714,121
	TOTAL INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM SECURITIES LENDING
	(cost $714,121)				714,121
	TOTAL INVESTMENTS — 106.05%
	(cost $8,651,163)			$	11,533,224

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Global Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

	Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $699,502 at June 30, 2014.
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
ADR — American Depository Receipt.

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Paradigm Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier	COMMON STOCKS — 94.49%	Shares		Value
	Apparel Manufacturing — 0.13%
LB	L Brands, Inc.	25,600	$	1,501,696
LVMUY	LVMH Moet Hennessy Louis Vuitton SA — ADR	5,200		200,616
				1,702,312
	Asset Management — 5.86%
APO	Apollo Global Management LLC — Class A	1,000		27,720
BAM	Brookfield Asset Management Inc. — Class A	1,085,600		47,788,112
DDEJF	Dundee Corporation — Class A*	158,100		2,551,734
JZCP LN	JZ Capital Partners Ltd.	15,200		114,848
OAK	Oaktree Capital Group LLC	14,400		719,856
ONEXF	Onex Corporation	411,800		25,531,600
RCP LN	RIT Capital Partners plc	22,400		504,491
806 HK	Value Partners Group Limited	2,747,000		1,839,509
WETF	WisdomTree Investments, Inc.*^	24,700		305,292
				79,383,162
	Beverage and Tobacco Product Manufacturing — 0.12%
BF/A	Brown-Forman Corporation — Class A	450		41,553
ROX	Castle Brands, Inc.*^	72,000		64,080
CWGL	Crimson Wine Group Ltd.*^	171,860		1,555,333
				1,660,966
	Broadcasting (except Internet) — 2.57%
CBS	CBS Corporation — Class B	561,020		34,861,783
	Chemical Manufacturing — 1.41%
OPK	OPKO Health, Inc.*^	4,000		35,360
PAH	Platform Specialty Products Corporation*	148,900		4,173,667
SIAL	Sigma-Aldrich Corporation	145,815		14,797,306
VHI	Valhi, Inc.^	4,600		29,532
				19,035,865
	Construction of Buildings — 0.13%
BRP	Brookfield Residential Properties Inc.*	28,600		593,450
LEN	Lennar Corporation — Class A	26,300		1,104,074
				1,697,524
	Credit Intermediation and Related Activities — 0.00%
IFT	Imperial Holdings, Inc.*	7,200		49,104
OCN	Ocwen Financial Corporation*^	200		7,420
				56,524

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Paradigm Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	E-Commerce — 2.94%
IACI	IAC/InterActiveCorp	44,700	$	3,094,581
LINTA	Liberty Interactive Corporation — Class A*	1,248,400		36,653,024
				39,747,605
	Electronics and Appliance Stores — 0.19%
SHOS	Sears Hometown and Outlet Stores Inc.*	117,500		2,522,725
	Gaming — 4.93%
LVS	Las Vegas Sands Corp.	358,200		27,302,004
MGM	MGM Resorts International*^	481,600		12,714,240
WYNN	Wynn Resorts Limited	129,000		26,775,240
				66,791,484
	Gasoline Stations — 0.03%
SUSS	Susser Holdings Corporation*^	5,200		419,744
	General Merchandise Stores — 2.04%
SEARF	Sears Canada Inc.^	493,400		6,715,174
SHLD	Sears Holdings Corporation*^	521,780		20,850,329
				27,565,503
	Global Exchanges — 0.25%
EXAE GA	Hellenic Exchanges S.A. Holding Clearing Settlement
	and Registry*	33,600		381,870
JSE SJ	JSE Limited	330,000		2,975,741
				3,357,611
	Holding Company — 17.16%
BOL FP	Bollore SA	5,200		3,375,051
GBLS BB	Groupe Bruxelles Lambert S.A. Strip VVPR*+	23,520		—
IEP	Icahn Enterprises LP^	945,845		94,300,794
LUK	Leucadia National Corporation	1,373,900		36,023,658
LMCA	Liberty Media Corporation — Class A*	624,400		85,342,992
LVNTA	Liberty Ventures — Series A*	180,800		13,343,040
PVF CN	Partners Value Fund Inc.*	800		21,371
				232,406,906
	Insurance Carriers and Related Activities — 1.11%
AFSI	AmTrust Financial Services, Inc.^	4,600		192,326
MKL	Markel Corporation*	22,732		14,904,008
				15,096,334

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Paradigm Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Lessors of Nonresidential Buildings
	(except Miniwarehouses) — 11.56%
HHC	The Howard Hughes Corporation*	959,300	$	151,406,319
RSE	Rouse Properties, Inc.^	298,400		5,105,624
				156,511,943
	Lessors of Residential Buildings and Dwellings — 1.06%
ELS	Equity Lifestyle Properties, Inc. — REIT	325,200		14,360,832
	Machinery Manufacturing — 0.10%
CFX	Colfax Corporation*^	17,300		1,289,542
	Manufactured Brands — 2.35%
JAH	Jarden Corporation*^	536,000		31,811,600
	Media — 5.19%
DISCA	Discovery Communications, Inc. — Class A*	389,923		28,963,481
SNI	Scripps Networks Interactive — Class A^	69,973		5,677,609
STRZA	Starz — Class A*	619,000		18,440,010
VIAB	Viacom Inc. — Class B	197,700		17,146,521
				70,227,621
	Merchant Wholesalers, Nondurable Goods — 0.01%
GLEN LN	Glencore Xstrata plc*	12,000		66,857
	Mining (except Oil and Gas) — 1.21%
FNV	Franco-Nevada Corporation^	286,800		16,445,112
	Motion Picture and Sound Recording Industries — 3.18%
DWA	DreamWorks Animation SKG, Inc. — Class A*^	1,853,400		43,110,084
	Motor Vehicle and Parts Dealers — 4.19%
AN	AutoNation, Inc.*	950,800		56,743,744
	Non-Store Retailers — 0.34%
LE	Lands’ End, Inc.*^	138,810		4,661,240
	Oil and Gas — 4.87%
TPL	Texas Pacific Land Trust	411,980		65,962,118
	Oil and Gas Extraction — 4.24%
CNQ	Canadian Natural Resources Ltd.	194,400		8,924,904
CLR	Continental Resources, Inc.*^	112,990		17,856,939
PARR	Par Petroleum Corporation*	23,600		477,900
SEMUF	Siem Industries Inc.*	29,700		2,791,800
TOU CN	Tourmaline Oil Corp.*	518,290		27,326,738
				57,378,281

The accompanying notes are an integral part of these financial statements.

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Paradigm Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Other Exchanges — 2.88%
CBOE	CBOE Holdings Inc.^	779,126	$	38,340,790
URB/A CN	Urbana Corporation — Class A	398,178		675,416
				39,016,206
	Other Information Services — 0.00%
GOOGL	Google Inc. — Class A*	30		17,540
GOOG	Google Inc. — Class C*	30		17,258
				34,798
	Performing Arts, Spectator Sports, and Related Industries — 3.58%
LYV	Live Nation Entertainment, Inc.*	1,966,400		48,550,416
	Real Estate — 3.01%
BPY	Brookfield Property Partners LP	73,064		1,524,846
DRM CN	Dream Unlimited Corp. — Class A*	258,100		3,732,236
FCE/A	Forest City Enterprises, Inc. — Class A*^	1,258,200		25,000,434
TPH	TRI Pointe Homes, Inc.*^	60,400		949,488
VNO	Vornado Realty Trust — REIT	89,000		9,498,970
				40,705,974
	Restaurants — 2.05%
BKW	Burger King Worldwide Inc.^	12,400		337,528
WEN	The Wendy’s Company^	3,209,600		27,377,888
				27,715,416
	Satellite Telecommunications — 5.48%
DISH	DISH Network Corp. — Class A*	709,100		46,148,228
SATS	EchoStar Corporation — Class A*	512,500		27,131,750
LORL	Loral Space & Communications Inc.*	300		21,807
VSAT	ViaSat, Inc.*	16,800		973,728
				74,275,513
	Security System Services — 0.05%
ASCMA	Ascent Capital Group LLC — Class A*^	10,400		686,504
	Support Activities for Transportation — 0.07%
357 HK	Hainan Meilan International Airport Company Limited —
	Class H	1,041,000		953,641
	Transportation Equipment Manufacturing — 0.00%
HEI/A	HEICO Corporation — Class A	1,250		50,750

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, 2014 (Unaudited) — (Continued)

Identifier			Shares		Value
	Utilities — 0.20%
BIP	Brookfield Infrastructure Partners LP^		65,930	$	2,750,600
	TOTAL COMMON STOCKS
	(cost $774,218,091)				1,279,614,840
			Principal
	ESCROW NOTES — 0.00%		Amount
	Special Purpose Entity — 0.00%
006ESCBG1	Adelphia Communications Corp.*+	$	200,000		—
	TOTAL ESCROW NOTES
	(cost $0)				—

	MUTUAL FUNDS — 0.00%		Shares
	Funds, Trusts, and Other Financial Vehicles — 0.00%
TRF	Templeton Russia and East European Fund, Inc.		2,200		33,572
	TOTAL MUTUAL FUNDS
	(cost $32,396)				33,572

			Principal
	SHORT-TERM INVESTMENTS — 5.57%		Amount
	Commercial Paper — 4.61%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014		$62,480,000		62,480,000

			Shares
	Money Market Funds — 0.96%
FIGXX	Fidelity Institutional Government Portfolio — Class I, 0.01%b		12,966,640		12,966,640
	TOTAL SHORT-TERM INVESTMENTS
	(cost $75,446,640)				75,446,640

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, 2014 (Unaudited) — (Continued)

	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
Identifier	SECURITIES LENDING — 5.50%	Shares		Value
	Money Market Funds — 5.50%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b	74,540,645	$	74,540,645
	TOTAL INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM SECURITIES LENDING
	(cost $74,540,645)			74,540,645
	TOTAL INVESTMENTS — 105.56%
	(cost $ 924,237,772)		$	1,429,635,697

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $73,703,910 at June 30, 2014.
+ —	Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets.
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
ADR — American Depository Receipt. REIT — Real Estate Investment Trust.

The accompanying notes are an integral part of these financial statements.

102

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Medical Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier	COMMON STOCKS — 96.20%	Shares		Value
	Chemical Manufacturing — 8.25%
AGEN	Agenus, Inc.*	148	$	477
ALKS	Alkermes plc*^	25,000		1,258,250
APHB	Ampliphi Biosciences Corp.*	1,000		438
IMNP	Immune Pharmaceuticals Inc.*	17		43
LONN VX	Lonza Group AG*	5,000		544,091
MACK	Merrimack Pharmaceuticals, Inc.*^	12,000		87,480
MMRF	MMRGlobal Inc.*	43,000		1,225
OSIR	Osiris Therapeutics, Inc.*^	18,000		281,160
SNTA	Synta Pharmaceuticals Corp.*^	11,000		44,990
				2,218,154
	Pharmaceutical and Biotechnology — 79.64%
ABT	Abbott Laboratories	13,000		531,700
ABBV	AbbVie Inc.	14,000		790,160
ARNA	Arena Pharmaceuticals, Inc.*^	45,000		263,700
AZN	AstraZeneca plc — ADR	13,000		966,030
BIIB	Biogen Idec, Inc.*	7,250		2,285,998
BMY	Bristol-Myers Squibb Company	34,000		1,649,340
CLDX	Celldex Therapeutics Inc.*^	26,294		429,118
CBST	Cubist Pharmaceuticals, Inc.*	24,000		1,675,680
DNDN	Dendreon Corporation*^	34,000		78,200
LLY	Eli Lilly & Company	23,000		1,429,910
GSK	GlaxoSmithKline plc — ADR^	22,673		1,212,552
ISIS	Isis Pharmaceuticals, Inc.*^	17,000		585,650
JNJ	Johnson & Johnson	14,000		1,464,680
MRK	Merck & Co., Inc.	16,000		925,600
NVS	Novartis AG — ADR^	18,000		1,629,540
ONTY	Oncothyreon, Inc.*	32,333		104,759
PFE	Pfizer, Inc.	46,000		1,365,280
PGNX	Progenics Pharmaceuticals, Inc.*	67,200		289,632
RHHBY	Roche Holding AG Ltd. — ADR	22,000		820,600
SNY	Sanofi — ADR	26,000		1,382,420
SHPG	Shire plc — ADR	6,000		1,412,940
VICL	Vical Inc.*^	84,500		103,090
				21,396,579

The accompanying notes are an integral part of these financial statements.

103

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Medical Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier			Shares		Value
	Professional, Scientific, and Technical Services — 8.31%
AFFX	Affymetrix, Inc.*^		104,000	$	926,640
AMRI	Albany Molecular Research, Inc.*^		56,000		1,126,720
CDXS	Codexis, Inc.*^		5,611		8,192
ONTX	Onconova Therapeutics, Inc.*^		18,000		97,740
PACB	Pacific Biosciences of California Inc.*		12,000		74,160
					2,233,452
	TOTAL COMMON STOCKS
	(cost $16,267,866)				25,848,185

	RIGHTS — 0.06%
	Funds, Trusts, and Other Financial Vehicles — 0.03%
LGNDZ	Ligand Pharmaceuticals Inc.*		44,000		660
LGNXZ	Ligand Pharmaceuticals Inc.*		44,000		4,840
LGNYZ	Ligand Pharmaceuticals Inc.*		44,000		3,300
LGNZZ	Ligand Pharmaceuticals Inc.*		44,000		440
					9,240
	Pharmaceutical and Biotechnology — 0.03%
GCVRZ	Sanofi*^		15,538		7,769
	TOTAL RIGHTS
	(cost $0)				17,009

			Principal
	SHORT-TERM INVESTMENTS — 3.56%		Amount
	Commercial Paper — 3.52%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	946,000		946,000

			Shares
	Money Market Funds — 0.04%
FIGXX	Fidelity Institutional Government Portfolio — Class I, 0.01%b		9,884		9,884
	TOTAL SHORT-TERM INVESTMENTS
	(cost $955,884)				955,884

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, 2014 (Unaudited) — (Continued)

	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
Identifier	SECURITIES LENDING — 19.78%	Shares		Value
	Money Market Funds — 19.78%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b	5,313,927	$	5,313,927
	TOTAL INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM SECURITIES LENDING
	(cost $5,313,927)			5,313,927
	TOTAL INVESTMENTS — 119.60%
	(cost $22,537,677)		$	32,135,005

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $5,028,621 at June 30, 2014.
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
ADR — American Depository Receipt.

The accompanying notes are an integral part of these financial statements.

105

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Small Cap Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier	COMMON STOCKS — 97.48%	Shares		Value
	Asset Management — 9.92%
DDEJF	Dundee Corporation — Class A*	884,900	$	14,282,286
JZCP LN	JZ Capital Partners Ltd.	196,400		1,483,957
OCX CN	Onex Corporation	378,700		23,430,743
RCP LN	RIT Capital Partners plc	135,200		3,044,962
SII CN	Sprott, Inc.	1,680		4,770
				42,246,718
	Automobile and Other Motor Vehicle Merchant Wholesalers — 0.21%
VTU LN	Vertu Motors plc	975,000		880,190
	Chemical Manufacturing — 3.83%
IPAR	Inter Parfums, Inc.	155,100		4,583,205
PAH	Platform Specialty Products Corporation*	418,300		11,724,949
				16,308,154
	Construction of Buildings — 3.05%
BRP	Brookfield Residential Properties Inc.*	625,100		12,970,825
	Credit Intermediation and Related Activities — 0.23%
BOKF	BOK Financial Corporation	11,400		759,240
IFT	Imperial Holdings, Inc.*	35,000		238,700
				997,940
	Electronics and Appliance Stores — 1.89%
SHOS	Sears Hometown and Outlet Stores Inc.*	375,700		8,066,279
	Forestry and Logging — 0.01%
KEWL	Keweenaw Land Association Ltd.*	380		33,440
	Gaming — 1.06%
TPCA	Tropicana Entertainment Inc.*	256,600		4,528,990
	General Merchandise Stores — 2.40%
SEARF	Sears Canada Inc.	613,100		8,344,291
SHLD	Sears Holdings Corporation*	46,500		1,858,140
				10,202,431
	Global Exchanges — 0.51%
EXAE GA	Hellenic Exchanges S.A. Holding Clearing Settlement
	and Registry	190,000		2,159,387

The accompanying notes are an integral part of these financial statements.

106

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Small Cap Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Holding Company — 9.46%
IEP	Icahn Enterprises LP	336,295	$	33,528,575
LVNTA	Liberty Ventures — Series A*	32,200		2,376,360
PVF CN	Partners Value Fund Inc.*	164,500		4,394,426
				40,299,361
	Insurance Carriers and Related Activities — 3.46%
AFSI	AmTrust Financial Services, Inc.	217,300		9,085,313
GLRE	Greenlight Capital Re, Ltd. — Class A*	171,400		5,645,916
				14,731,229
	Lessors of Nonresidential Buildings (except Miniwarehouses) — 10.62%
HHC	The Howard Hughes Corporation*	276,400		43,624,212
RSE	Rouse Properties, Inc.	92,800		1,587,808
				45,212,020
	Lessors of Residential Buildings and Dwellings — 1.45%
ELS	Equity Lifestyle Properties, Inc. — REIT	139,800		6,173,568
	Machinery Manufacturing — 0.60%
CFX	Colfax Corporation*	34,500		2,571,630
	Manufactured Brands — 7.14%
JAH	Jarden Corporation*	472,150		28,022,102
MOV	Movado Group, Inc.	57,200		2,383,524
				30,405,626
	Media — 1.22%
STRZA	Starz — Class A*	173,800		5,177,502
	Merchant Wholesalers, Durable Goods — 0.22%
DORM	Dorman Products, Inc.*	19,200		946,944
	Mining (except Oil and Gas) — 0.31%
FM CN	First Quantum Minerals Ltd.	39,366		841,884
MUX	McEwen Mining Inc.*	160,600		462,528
				1,304,412
	Motion Picture and Sound Recording Industries — 4.05%
DWA	DreamWorks Animation SKG, Inc. — Class A*	742,300		17,265,898
	Motor Vehicle and Parts Dealers — 0.45%
PAG	Penske Automotive Group, Inc.	38,700		1,915,650
	Non-Store Retailers — 0.11%
LE	Lands’ End, Inc.*	13,986		469,650

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, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Oil and Gas — 8.44%
TPL	Texas Pacific Land Trust	224,500	$	35,944,695
	Oil and Gas Extraction — 1.33%
BLMC	Biloxi Marsh Lands Corporation	100		3,345
PARR	Par Petroleum Corporation*	213,900		4,331,475
WPX	WPX Energy Inc.*	55,800		1,334,178
				5,668,998
	Other Exchanges — 0.47%
CBOE	CBOE Holdings Inc.	16,990		836,078
URB/A CN	Urbana Corporation — Class A	695,071		1,179,025
				2,015,103
	Performing Arts, Spectator Sports, and Related Industries — 3.75%
LYV	Live Nation Entertainment, Inc.*	647,000		15,974,430
	Petroleum and Coal Products Manufacturing — 1.23%
CVI	CVR Energy, Inc.	108,600		5,233,434
	Publishing Industries (except Internet) — 0.25%
PRIS	Promotora de Informaciones S.A. — ADR*^	150,205		282,386
PRIS/B US	Promotora de Informaciones S.A. — Class B — ADR*	251,600		641,580
VALU	Value Line, Inc.	7,615		128,008
				1,051,974
	Real Estate — 8.56%
DRM CN	Dream Unlimited Corp. — Class A*	2,235,900		32,332,072
TPH	TRI Pointe Homes, Inc.*	263,500		4,142,220
				36,474,292
	Rental and Leasing Services — 0.01%
CDCO	Comdisco Holding Company, Inc.*	7,560		37,044
	Restaurants — 5.92%
WEN	The Wendy’s Company	2,958,400		25,235,152
	Satellite Telecommunications — 0.46%
LORL	Loral Space & Communications Inc.*	14,000		1,017,660
VSAT	ViaSat, Inc.*	16,400		950,544
				1,968,204
	Securities, Commodity Contracts, and Other Financial Investments
	and Related Activities — 0.00%
RHJI BB	RHJ International*	800		3,896

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, 2014 (Unaudited) — (Continued)

Identifier			Shares		Value
	Telecommunications — 0.02%
CIBY	CIBL, Inc.*		18	$	24,930
ICTG	ICTC Group Inc.*		208		4,576
LICT	Lynch Interactive Corporation*		16		67,200
					96,706
	Transportation Equipment Manufacturing — 4.84%
ARII	American Railcar Industries, Inc.		153,600		10,409,472
FDML	Federal-Mogul Corporation*		504,200		10,199,966
					20,609,438
	TOTAL COMMON STOCKS
	(cost $322,540,999)				415,181,210

	RIGHTS — 0.10%
	Rental and Leasing Services — 0.10%
CDCOR	Comdisco Holding Company, Inc.		5,634,807		422,611
	TOTAL RIGHTS
	(cost $1,296,169)				422,611

			Principal
	SHORT-TERM INVESTMENTS — 2.02%		Amount
	Commercial Paper — 2.02%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	8,610,000		8,610,000

			Shares
	Money Market Funds — 0.00%
FIGXX	Fidelity Institutional Government Portfolio — Class I, 0.01%b		8,021		8,021
	TOTAL SHORT-TERM INVESTMENTS
	(cost $8,618,021)				8,618,021

The accompanying notes are an integral part of these financial statements.

109

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The Small Cap Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
Identifier	SECURITIES LENDING — 11.43%	Shares		Value
	Money Market Funds — 11.43%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b	48,702,392	$	48,702,392
	TOTAL INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM SECURITIES LENDING
	(cost $48,702,392)			48,702,392
	TOTAL INVESTMENTS — 111.03%
	(cost $381,157,581)			$472,924,234

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $47,293,574 at June 30, 2014.
# —	Contingent value right (contingent upon profitability of company).
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
ADR — American Depository Receipt.
REIT — Real Estate Investment Trust.

The accompanying notes are an integral part of these financial statements.

110

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The Market Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier	COMMON STOCKS — 90.24%	Shares		Value
	Asset Management — 24.52%
APO	Apollo Global Management LLC — Class A	19,500	$	540,540
BX	The Blackstone Group LP	60,000		2,006,400
BAM	Brookfield Asset Management Inc. — Class A	54,000		2,377,080
DDEJF	Dundee Corporation — Class A*	194,600		3,140,844
FII	Federated Investors, Inc. — Class B^	3,600		111,312
JZCP LN	JZ Capital Partners Ltd.	60,600		457,881
OAK	Oaktree Capital Group LLC	44,800		2,239,552
OZM	Och-Ziff Capital Management Group — Class A	2,400		33,192
ONEXF	Onex Corporation	60,000		3,720,000
SII CN	Sprott, Inc.	41,155		116,864
806 HK	Value Partners Group Limited	306,000		204,911
WETF	WisdomTree Investments, Inc.*^	51,200		632,832
				15,581,408
	Beverage and Tobacco Product Manufacturing — 0.07%
CWGL	Crimson Wine Group Ltd.*^	5,080		45,974
	Chemical Manufacturing — 0.04%
BIOF	BioFuel Energy Corporation*	1,600		10,992
KDUS	Cadus Corporation*	7,200		12,168
				23,160
	Construction of Buildings — 0.54%
BRP	Brookfield Residential Properties Inc.*	16,400		340,300
	Credit Intermediation and Related Activities — 2.29%
BBCN	BBCN Bancorp, Inc.	10		159
EWBC	East West Bancorp, Inc.	3,204		112,108
IFT	Imperial Holdings, Inc.*^	197,200		1,344,904
				1,457,171
	Data Processor — 4.17%
MA	MasterCard, Inc. — Class A	16,000		1,175,520
V	Visa, Inc. — Class A^	7,000		1,474,970
				2,650,490
	E-Commerce — 1.06%
LINTA	Liberty Interactive Corporation — Class A*	22,900		672,344
	Electronics and Appliance Stores — 0.02%
SHOS	Sears Hometown and Outlet Stores Inc.*	610		13,097
	European Exchanges — 0.69%
DB1 GR	Deutsche Boerse AG	5,650		438,507

The accompanying notes are an integral part of these financial statements.

111

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The Market Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Gaming — 3.62%
LVS	Las Vegas Sands Corp.	11,600	$	884,152
TPCA	Tropicana Entertainment Inc.*	80,400		1,419,060
				2,303,212
	General Merchandise Stores — 0.43%
SEARF	Sears Canada Inc.^	300		4,083
SHLD	Sears Holdings Corporation*^	6,800		271,728
				275,811
	Global Exchanges — 2.62%
EXAE GA	Hellenic Exchanges S.A. Holding Clearing Settlement and Registry*	21,600		245,488
JSE SJ	JSE Limited	83,600		753,854
LSE LN	London Stock Exchange Group plc	12,800		439,650
SGX SP	Singapore Exchange Limited	40,000		222,953
				1,661,945
	Holding Company — 15.87%
CKI CN	Clarke Inc.	1,000		10,037
IEP	Icahn Enterprises LP^	61,726		6,154,088
LUK	Leucadia National Corporation	80,000		2,097,600
LVNTA	Liberty Ventures — Series A*	9,148		675,122
PVF CN	Partners Value Fund Inc.*	42,900		1,146,024
				10,082,871
	Insurance Carriers and Related Activities — 2.10%
AFSI	AmTrust Financial Services, Inc.^	19,600		819,476
GLRE	Greenlight Capital Re, Ltd. — Class A*	1,200		39,528
MKL	Markel Corporation*	725		475,339
				1,334,343
	Lessors of Nonresidential Buildings
	(except Miniwarehouses) — 7.45%
HHC	The Howard Hughes Corporation*	27,700		4,371,891
RSE	Rouse Properties, Inc.	21,200		362,732
				4,734,623
	Merchant Wholesalers, Durable Goods — 0.03%
AMRK	A-Mark Precious Metals, Inc.*	1,600		17,856
	Mining (except Oil and Gas) — 0.36%
FNV	Franco-Nevada Corporation	4,000		229,360

The accompanying notes are an integral part of these financial statements.

112

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The Market Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Non-Store Retailers — 2.64%
BID	Sotheby’s^	40,000	$	1,679,600
	Oil and Gas — 7.66%
TPL	Texas Pacific Land Trust	30,400		4,867,344
	Other Exchanges — 5.21%
CBOE	CBOE Holdings Inc.	45,400		2,234,134
FTIS LI	Financial Technologies (India) Ltd. — GDR	96,180		57,814
NZX NZ	NZX Ltd.	359,002		411,764
URB/A CN	Urbana Corporation — Class A	356,004		603,877
				3,307,589
	Real Estate — 5.19%
DRM CN	Dream Unlimited Corp. — Class A*	228,000		3,296,978
	Securities, Commodity Contracts, and Other Financial Investments and Related Activities — 3.26%
CME	CME Group, Inc.	6,400		454,080
ICE	IntercontinentalExchange Group, Inc.	5,600		1,057,840
OTCM	OTC Markets Group Inc. — Class A^	50,220		562,464
				2,074,384
	Transportation Equipment Manufacturing — 0.01%
ARII	American Railcar Industries, Inc.	100		6,777
	U.S. Equity Exchanges — 0.39%
NDAQ	The NASDAQ OMX Group, Inc.	6,400		247,168
	TOTAL COMMON STOCKS
	(cost $40,423,256)			57,342,312

	RIGHTS — 0.00%
	Asset Management — 0.00%
WPSL	W.P. Stewart & Co., Ltd.*+	205		—
	TOTAL RIGHTS
	(cost $0)			—

The accompanying notes are an integral part of these financial statements.

113

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The Market Opportunities Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier	MUTUAL FUNDS — 0.07%		Shares		Value
	Funds, Trusts, and Other Financial Vehicles — 0.07%
PFN	PIMCO Income Strategy Fund II		760	$	8,406
SPE	Special Opportunities Fund Inc.		2,000		33,400
TRF	Templeton Russia and East European Fund, Inc.		200		3,052
	TOTAL MUTUAL FUNDS
	(cost $41,435)				44,858

			Principal
	SHORT-TERM INVESTMENTS — 9.98%		Amount
	Commercial Paper — 4.99%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	3,170,000		3,170,000

			Shares
	Money Market Funds — 4.99%
FIGXX	Fidelity Institutional Government Portfolio —
	Class I, 0.01%b		3,170,000		3,170,000
	TOTAL SHORT-TERM INVESTMENTS
	(cost $6,340,000)				6,340,000

	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
	SECURITIES LENDING — 8.76%
	Money Market Funds — 8.76%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b		5,564,976		5,564,976
	TOTAL INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM SECURITIES LENDING
	(cost $5,564,976)				5,564,976
	TOTAL INVESTMENTS — 109.05%
	(cost $52,369,667)			$	69,292,146

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $5,474,060 at June 30, 2014.
+ —	Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets.
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.

GDR —

Global Depository Receipt.

The accompanying notes are an integral part of these financial statements.

114

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier	CORPORATE BONDS — 65.18%		Amount		Value
	Beverage and Tobacco Product Manufacturing — 3.05%
02209SAK9	Altria Group, Inc.
	4.125%, 09/11/2015	$	100,000	$	104,081
03523TBL1	Anheuser-Busch InBev Worldwide Inc.
	1.500%, 07/14/2014+		126,000		126,048
191216AP5	The Coca-Cola Company
	1.500%, 11/15/2015		100,000		101,529
26138EAM1	Dr. Pepper Snapple Group, Inc.
	2.900%, 01/15/2016		200,000		206,915
713448CL0	PepsiCo, Inc.
	0.950%, 02/22/2017		200,000		199,862
761713AV8	Reynolds American, Inc.
	1.050%, 10/30/2015		175,000		175,024
					913,459
	Broadcasting (except Internet) — 0.68%
63946BAB6	NBCUniversal Media, LLC
	3.650%, 04/30/2015		100,000		102,735
25468PCU8	The Walt Disney Company
	0.450%, 12/01/2015		100,000		100,135
					202,870
	Chemical Manufacturing — 3.33%
	Colgate-Palmolive Company
19416QDQ0	1.375%, 11/01/2015		150,000		152,000
19416QDX5	1.300%, 01/15/2017		200,000		202,253
260543CD3	The Dow Chemical Company
	2.500%, 02/15/2016		250,000		257,051
	Ecolab Inc.
278865AJ9	2.375%, 12/08/2014		125,000		126,094
278865AN0	1.000%, 08/09/2015		55,000		55,284
628530AW7	Mylan Inc.
	1.800%, 06/24/2016		200,000		202,930
					995,612
	Computer and Electronic Product
	Manufacturing — 6.24%
037833AM2	Apple, Inc.
	1.050%, 05/05/2017		250,000		250,512
111320AD9	Broadcom Corporation
	2.375%, 11/01/2015		200,000		204,752

The accompanying notes are an integral part of these financial statements.

115

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Computer and Electronic Product
	Manufacturing — 6.24% (Continued)
22303QAK6	Covidien International Finance SA
	2.800%, 06/15/2015	$	100,000	$	102,392
428236BC6	Hewlett-Packard Co.
	2.125%, 09/13/2015		100,000		101,793
459200HD6	IBM Corp.
	0.750%, 05/11/2015		100,000		100,446
458140AH3	Intel Corp.
	1.950%, 10/01/2016		200,000		205,340
	Medtronic, Inc.
585055AR7	3.000%, 03/15/2015		100,000		101,923
585055BB1	0.875%, 02/27/2017		250,000		249,248
882508AR5	Texas Instruments Inc.
	2.375%, 05/16/2016		200,000		206,829
883556AS1	Thermo Fisher Scientific, Inc.
	3.200%, 05/01/2015		140,000		143,138
902133AL1	Tyco Electronics Group SA
	1.600%, 02/03/2015		200,000		201,372
					1,867,745
	Consumer Staples — 0.67%
742718ED7	The Procter & Gamble Company
	0.750%, 11/04/2016		200,000		199,933
	Credit Intermediation and Related Activities — 12.04%
025815AA9	American Express Centurion
	0.875%, 11/13/2015		250,000		251,325
0258M0CZ0	American Express Credit Corporation
	5.125%, 08/25/2014+		100,000		100,689
06051GES4	Bank of America Corporation
	1.250%, 01/11/2016		250,000		251,970
06406HCD9	The Bank of New York Mellon Corporation
	0.700%, 10/23/2015		200,000		200,697
064159BV7	Bank of Nova Scotia
	0.950%, 03/15/2016		200,000		201,288
07330NAC9	Branch Banking & Trust Company Global Bank
	1.450%, 10/03/2016		180,000		182,050
140420NG1	Capital One Bank (USA), NA
	1.200%, 02/13/2017		250,000		250,150

The accompanying notes are an integral part of these financial statements.

116

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Credit Intermediation and Related
	Activities — 12.04% (Continued)
	Caterpillar Financial Services Corporation
14912L5B3	1.050%, 03/26/2015	$	100,000	$	100,596
14912L4S7	2.650%, 04/01/2016		200,000		207,188
31677QAX7	Fifth Third Bank
	0.900%, 02/26/2016		150,000		150,444
36962G6M1	General Electric Capital Corp.
	1.000%, 12/11/2015		200,000		201,609
41283LAC9	Harley-Davidson Financial Services Inc.
	1.150%, 09/15/2015, Acquired 01/08/2014
	at $200,694■		200,000		201,113
	John Deere Capital Corporation
24422ERQ4	0.875%, 04/17/2015		100,000		100,498
24422ESH3	1.050%, 12/15/2016		200,000		200,850
49327M2J2	Key Bank NA
	1.100%, 11/25/2016		250,000		251,088
69371RK62	PACCAR Financial Corporation
	1.050%, 06/05/2015		100,000		100,726
69349LAN8	PNC Bank NA
	1.300%, 10/03/2016		250,000		252,508
88166CAA6	Teva Pharmaceuticals Finance
	3.000%, 06/15/2015		100,000		102,463
92976GAB7	Wells Fargo Bank NA
	4.800%, 11/01/2014		96,000		97,480
94974BFL9	Wells Fargo & Company
	1.250%, 07/20/2016		200,000		201,828
					3,606,560
	Digital Security — 0.51%
871503AG3	Symantec Corp.
	2.750%, 09/15/2015		150,000		153,449
	Diversified Financial Services — 0.67%
46623EJR1	JPMorgan Chase & Co.
	1.100%, 10/15/2015		200,000		200,895
	E-Commerce — 1.14%
023135AK2	Amazon.com, Inc.
	0.650%, 11/27/2015		200,000		200,392

The accompanying notes are an integral part of these financial statements.

117

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	E-Commerce — 1.14% (Continued)
278642AD5	eBay, Inc.
	0.700%, 07/15/2015	$	140,000	$	140,589
					340,981
	Electrical Equipment, Appliance, and Component
	Manufacturing — 0.33%
963320AP1	Whirlpool Corporation
	1.350%, 03/01/2017		100,000		100,130
	Fabricated Metal Product Manufacturing — 0.69%
235851AL6	Danaher Corporation
	2.300%, 06/23/2016		200,000		206,587
	Food Manufacturing — 3.88%
205887BH4	ConAgra Foods, Inc.
	1.350%, 09/10/2015		100,000		100,768
370334BN3	General Mills, Inc.
	0.875%, 01/29/2016		200,000		200,957
423074AL7	HJ Heinz Co.
	2.000%, 09/12/2016		150,000		151,633
	Kellogg Company
487836BG2	1.125%, 05/15/2015		200,000		201,436
487836BF4	1.875%, 11/17/2016		100,000		102,026
50076QAK2	Kraft Foods Group Inc.
	1.625%, 06/04/2015		200,000		202,105
982526AR6	William Wrigley Jr. Company
	1.400%, 10/21/2016, Acquired 10/28/2013
	at $201,122■		200,000		201,499
					1,160,424
	Food Services and Drinking Places — 0.67%
855244AE9	Starbucks Corporation
	0.875%, 12/05/2016		200,000		200,314
	General Merchandise Stores — 1.42%
22160KAD7	Costco Wholesale Corporation
	0.650%, 12/07/2015		150,000		150,600
	Wal-Mart Stores, Inc.
931142CX9	1.500%, 10/25/2015		74,000		75,169
931142DE0	0.600%, 04/11/2016		200,000		200,478
					426,247

The accompanying notes are an integral part of these financial statements.

118

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Health and Personal Care Stores — 1.69%
	CVS Caremark Corporation
126650BT6	3.250%, 05/18/2015	$	100,000	$	102,571
126650CA6	1.200%, 12/05/2016		200,000		201,342
931422AG4	Walgreen Company
	1.000%, 03/13/2015		200,000		200,798
					504,711
	Holding Company — 0.84%
084664BX8	Berkshire Hathaway Finance Corp.
	0.950%, 08/15/2016#		250,000		251,473
	Insurance Carriers and Related Activities — 1.68%
74432QAE5	Prudential Financial, Inc.
	5.100%, 09/20/2014		100,000		101,026
91324PBX9	UnitedHealth Group Inc.
	0.850%, 10/15/2015		100,000		100,475
94973VAZ0	WellPoint, Inc.
	1.250%, 09/10/2015		300,000		302,379
					503,880
	Machinery Manufacturing — 1.00%
452308AS8	Illinois Tool Works, Inc.
	0.900%, 02/25/2017#		300,000		299,909
	Media — 0.85%
25470DAB5	Discovery Communications
	3.700%, 06/01/2015		100,000		102,977
92553PAK8	Viacom Inc.
	1.250%, 02/27/2015		150,000		150,863
					253,840
	Merchant Wholesalers, Nondurable Goods — 1.53%
	Express Scripts Holding Company
30219GAB4	2.100%, 02/12/2015		100,000		101,024
302182AF7	3.125%, 05/15/2016		150,000		156,345
581557AY1	McKesson Corp.
	0.950%, 12/04/2015		200,000		200,878
					458,247
	Mining (except Oil and Gas) — 1.34%
35671DAV7	Freeport-McMoRan Copper & Gold Inc.
	1.400%, 02/13/2015		300,000		301,233

The accompanying notes are an integral part of these financial statements.

119

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)


			Principal
Identifier			Amount		Value
	Mining (except Oil and Gas) — 1.34% (Continued)
76720AAA4	Rio Tinto Financial USA plc
	1.125%, 03/20/2015	$	100,000	$	100,539
					401,772
	Miscellaneous Manufacturing — 3.73%
88579YAD3	3M Co.
	1.375%, 09/29/2016		250,000		254,535
071813BH1	Baxter International Inc.
	0.950%, 06/01/2016		200,000		200,950
14170TAL5	CareFusion Corp.
	1.450%, 05/15/2017		300,000		299,986
067383AB5	CR Bard, Inc.
	2.875%, 01/15/2016		150,000		155,211
863667AC5	Stryker Corporation
	2.000%, 09/30/2016		200,000		205,262
					1,115,944
	Motor Vehicle and Parts Dealers — 0.84%
053332AQ5	AutoZone, Inc.
	1.300%, 01/13/2017		250,000		250,766
	Oil and Gas Extraction — 2.12%
136385AQ4	Canadian Natural Resources Ltd.
	1.450%, 11/14/2014		130,000		130,554
25179MAS2	Devon Energy Corporation
	1.200%, 12/15/2016		200,000		200,727
565849AJ5	Marathon Oil Corporation
	0.900%, 11/01/2015		100,000		100,384
674599CB9	Occidental Petroleum Corporation
	1.750%, 02/15/2017		200,000		203,830
					635,495
	Other Information Services — 0.76%
38259PAC6	Google Inc.
	2.125%, 05/19/2016		222,000		228,811
	Petroleum and Coal Products Manufacturing — 1.34%
166764AC4	Chevron Corporation
	0.889%, 06/24/2016		200,000		201,373

The accompanying notes are an integral part of these financial statements.

120

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Petroleum and Coal Products
	Manufacturing — 1.34% (Continued)
30231GAA0	Exxon Mobil Corp.
	0.921%, 03/15/2017#	$	200,000	$	200,343
					401,716
	Pharmaceutical and Biotechnology — 3.68%
031162AJ9	Amgen Inc.
	4.850%, 11/18/2014		140,000		142,388
377372AG2	GlaxoSmithKline Capital Inc.
	0.700%, 03/18/2016		200,000		200,580
478160BF0	Johnson & Johnson
	0.700%, 11/28/2016#		300,000		300,774
53217VAD1	Life Technologies Corporation
	3.500%, 01/15/2016		150,000		155,878
717081DJ9	Pfizer, Inc.
	1.100%, 05/15/2017		300,000		301,383
					1,101,003
	Pipeline Transportation — 0.34%
96950FAB0	Williams Partners LP
	3.800%, 02/15/2015		100,000		101,939
	Publishing Industries (except Internet) — 0.33%
884903BL8	Thomson Reuters Corporation
	0.875%, 05/23/2016		100,000		100,006
	Satellite Telecommunications — 0.52%
25459HAY1	DIRECTV Holdings, LLC
	3.500%, 03/01/2016		150,000		156,588
	Software — 0.34%
00724FAA9	Adobe Systems, Inc.
	3.250%, 02/01/2015		100,000		101,563
	Support Activities for Mining — 0.86%
806854AA3	Schlumberger Investment SA
	1.950%, 09/14/2016, Acquired 01/10/2014
	at $255,555 ■		250,000		255,983
	Telecommunications — 2.01%
00206RBL5	AT&T, Inc.
	0.800%, 12/01/2015		200,000		200,592

The accompanying notes are an integral part of these financial statements.

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Telecommunications — 2.01% (Continued)
92343VBH6	Verizon Communications Inc.
	0.700%, 11/02/2015	$	200,000	$	200,585
92857WAX8	Vodafone Group plc
	1.625%, 03/20/2017		200,000		201,745
					602,922
	Transportation Equipment Manufacturing — 2.52%
539830AX7	Lockheed Martin Corp.
	2.125%, 09/15/2016		250,000		257,498
89233P6J0	Toyota Motor Credit Corp.
	0.875%, 07/17/2015		200,000		201,231
B84TD43	VW Credit, Inc.
	1.875%, 10/13/2016		290,000		296,054
					754,783
	Utilities — 1.19%
693304AN7	PECO Energy Company
	5.000%, 10/01/2014		52,000		52,590
843646AF7	Southern Power Company
	4.875%, 07/15/2015		100,000		104,588
98389BAP5	Xcel Energy, Inc.
	0.750%, 05/09/2016		200,000		200,296
					357,474
	Waste Management and Remediation Services — 0.35%
94106LAT6	Waste Management, Inc.
	6.375%, 03/11/2015		100,000		104,027
	TOTAL CORPORATE BONDS
	(cost $19,484,992)				19,518,058

	U.S. GOVERNMENT AGENCY
	ISSUES — 4.13%1
	U.S. Government Agency Issues — 4.13%
3133ED4A7	Federal Farm Credit Bank
	0.375%, 10/07/2015#		300,000		300,599
	Federal Home Loan Banks
313371ZY5	1.875%, 12/11/2015#		175,000		178,941
313375RN9	1.000%, 03/11/2016#		200,000		201,822

The accompanying notes are an integral part of these financial statements.

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	U.S. Government Agency Issues — 4.13% (Continued)
3137EADQ9	Federal Home Loan Mortgage Corporation
	0.500%, 05/13/2016#	$	300,000	$	300,185
31398A4K5	Federal National Mortgage Association
	1.875%, 10/15/2015#		250,000		254,924
	TOTAL U.S. GOVERNMENT AGENCY ISSUES
	(cost $1,235,502)				1,236,471

	U.S. TREASURY OBLIGATIONS — 5.34%
	U.S. Treasury Notes — 5.34%
912828TK6	0.250%, 08/15/2015#		350,000		350,356
912828UW8	0.250%, 04/15/2016#		500,000		498,897
912828VL1	0.625%, 07/15/2016#		250,000		250,781
912828WA4	0.625%, 10/15/2016#		300,000		300,340
912828B74	0.625%, 02/15/2017#		200,000		199,523
	TOTAL U.S. TREASURY OBLIGATIONS
	(cost $1,596,744)				1,599,897

	EXCHANGE TRADED FUNDS — 18.78%		Shares
	Funds, Trusts, and Other Financial Vehicles — 18.78%
CSJ	iShares 1-3 Year Credit Bond ETF		34,100		3,603,688
MINT	PIMCO Enhanced Short Maturity ETF		4,700		476,580
SCPB	SPDR Barclays Short Term Corporate Bond ETF#		24,000		739,440
VCSH	Vanguard Short-Term Corporate Bond ETF		10,000		803,700
	TOTAL EXCHANGE TRADED FUNDS
	(cost $5,614,159)				5,623,408

	PURCHASED PUT OPTIONS — 0.21%		Contractsd
	Credit Intermediation and Related Activities — 0.16%
	iPath S&P 500 VIX Short-Term Futures ETN*
VXX 150117P00025000	Expiration Date: January 2015, Exercise Price: $25.00		20		5,770
VXX 160115P00020000	Expiration Date: January 2016, Exercise Price: $20.00		55		21,313
VXX 160115P00025000	Expiration Date: January 2016, Exercise Price: $25.00		30		20,400
					47,483

The accompanying notes are an integral part of these financial statements.

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The Alternative Income Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier			Contractsd		Value
	Funds, Trusts, and Other Financial Vehicles — 0.05%
	ProShares Ultra VIX Short-Term Futures ETF*
UVXY 160115P00015000	Expiration Date: January 2016, Exercise Price: $15.00		21	$	14,857
	TOTAL PURCHASED PUT OPTIONS
	(cost $56,248)				62,340

			Principal
	SHORT-TERM INVESTMENTS — 8.64%		Amount
	Commercial Paper — 4.32%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	1,293,000		1,293,000

			Shares
	Money Market Funds — 4.32%
FIGXX	Fidelity Institutional Government Portfolio —
	Class I, 0.01%b		1,293,000		1,293,000
	TOTAL SHORT-TERM INVESTMENTS
	(cost $2,586,000)				2,586,000
	TOTAL INVESTMENTS — 102.28%
	(cost $30,573,645)			$	30,626,174

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
# —	All or a portion of the securities have been committed as collateral for written option contracts.
■ —	Restricted security restricted to institutional investors (144a securities); the percentage of net assets comprised of 144a securities was 2.20%.
1 —	The obligations of certain U.S. Government-Sponsored entities are neither issued nor guaranteed by the United States Treasury.
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
d —	100 shares per contract.
+ —	Priced at amortized cost.
ETF — Exchange Traded Fund.
ETN — Exchange Traded Note.

The accompanying notes are an integral part of these financial statements.

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier	CONVERTIBLE BONDS — 29.13%		Amount		Value
	Administrative and Support Services — 4.93%
	WebMD Health Corporation
94770VAH5	2.250%, 03/31/2016	$	400,000	$	413,250
94770VAF9	2.500%, 01/31/2018#		4,875,000		5,149,219
					5,562,469
	Computer and Electronic Product Manufacturing — 0.44%
747906AJ4	Quantum Corp.
	4.500%, 11/15/2017		500,000		495,938
	Mining (except Oil and Gas) — 5.13%
250669AA6	Detour Gold Corporation
	5.500%, 11/30/2017		1,000,000		962,500
B7W1RP3	Kirkland Lake Gold Inc.
	6.000%, 06/30/2017		CAD 350,000		242,725
780287AA6	Royal Gold, Inc.
	2.875%, 06/15/2019		4,264,000		4,591,795
					5,797,020
	Nonmetallic Mineral Product Manufacturing — 4.70%
69073TAQ6	Owens-Brockway Glass Container
	3.000%, 06/01/2015, Acquired
	07/06/2011-03/15/2013 at $5,160,863^■	.	5,170,000		5,312,175
	Oil and Gas Extraction — 4.76%
	Chesapeake Energy Corporation
165167BW6	2.750%, 11/15/2035#		650,000		692,250
165167CB1	2.250%, 12/15/2038		4,830,000		4,679,062
					5,371,312
	Performing Arts, Spectator Sports, and
	Related Industries — 2.44%
538034AB5	Live Nation Entertainment, Inc.
	2.875%, 07/15/2027#		2,763,000		2,761,273
	Personal and Laundry Services — 1.16%
758932AA5	Regis Corporation
	5.000%, 07/15/2014		1,303,000		1,305,443
	Real Estate — 0.45%
345550AP2	Forest City Enterprises, Inc.
	4.250%, 08/15/2018		446,000		505,653

The accompanying notes are an integral part of these financial statements.

125

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Software Publishers — 4.22%
285512AA7	Electronic Arts, Inc.
	0.750%, 07/15/2016	$	3,750,000	$	4,760,156
	Transportation Equipment Manufacturing — 0.90%
63934EAL2	Navistar International Corp.
	3.000%, 10/15/2014^		1,000,000		1,012,500
	TOTAL CONVERTIBLE BONDS
	(cost $30,386,137)				32,883,939

	CORPORATE BONDS — 56.62%
	Apparel Manufacturing — 2.51%
532716AU1	L Brands, Inc.
	5.625%, 02/15/2022		2,600,000		2,827,500
	Beverage and Tobacco Product
	Manufacturing — 0.09%
21036PAL2	Constellation Brands, Inc.
	4.250%, 05/01/2023^		100,000		100,625
	Broadcasting (except Internet) — 2.85%
1248EPAY9	CCO Holdings LLC/Capital Corporation
	5.250%, 09/30/2022		2,150,000		2,190,312
	Sirius XM Radio, Inc.
82967NAN8	5.750%, 08/01/2021, Acquired
	02/28/2014-03/20/2014 at $785,136^■		750,000		791,250
82967NAL2	4.625%, 05/15/2023, Acquired 04/11/2014
	at $233,438^■		250,000		240,000
					3,221,562
	Chemical Manufacturing — 3.42%
044209AF1	Ashland Inc.
	4.750%, 08/15/2022^		3,550,000		3,585,500
345838AA4	Forest Laboratories, Inc.
	5.000%, 12/15/2021, Acquired 04/01/2014
	at $265,828■		250,000		274,590
					3,860,090
	Computer and Electronic Product
	Manufacturing — 0.66%
436440AF8	Hologic, Inc.
	6.250%, 08/01/2020		700,000		742,000

The accompanying notes are an integral part of these financial statements.

126

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Construction of Buildings — 3.24%
526057BN3	Lennar Corporation
	4.750%, 11/15/2022	$	3,660,000	$	3,660,000
	Credit Intermediation and Related Activities — 1.20%
02005NAE0	Ally Financial, Inc.
	8.000%, 03/15/2020		200,000		243,500
852060AG7	Sprint Capital Corp.
	6.900%, 05/01/2019^		1,000,000		1,107,500
					1,351,000
	Data Processing, Hosting and Related Services — 3.59%
	Sungard Data Systems, Inc.
867363AR4	7.375%, 11/15/2018		200,000		211,500
867363AX1	6.625%, 11/01/2019^		3,637,000		3,846,128
					4,057,628
	E-Commerce — 3.28%
44919PAC6	IAC/InterActiveCorp
	4.750%, 12/15/2022		3,750,000		3,707,813
	Electrical Equipment, Appliance, and Component
	Manufacturing — 0.92%
384313AD4	GrafTech International Ltd.
	6.375%, 11/15/2020		1,000,000		1,035,000
	Food Manufacturing — 3.93%
	Post Holdings, Inc.
737446AE4	6.750%, 12/01/2021, Acquired 04/17/2014
	at $262,332■		250,000		266,250
737446AB0	7.375%, 02/15/2022^		3,850,000		4,172,438
					4,438,688
	Gaming — 3.31%
552953CA7	MGM Resorts International
	6.625%, 12/15/2021		250,000		278,438
983130AT2	Wynn Las Vegas LLC
	5.375%, 03/15/2022^		3,300,000		3,452,625
					3,731,063

The accompanying notes are an integral part of these financial statements.

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Holding Company — 1.87%
	Icahn Enterprises
451102AX5	6.000%, 08/01/2020	$	250,000	$	269,062
451102BF3	5.875%, 02/01/2022^		1,750,000		1,841,875
					2,110,937
	Hospitals — 0.29%
12543DAQ3	Community Health Systems, Inc.
	7.125%, 07/15/2020		200,000		216,750
40412CAB7	HCA Holdings, Inc.
	7.750%, 05/15/2021		100,000		109,875
					326,625
	Lessors of Nonresidential Buildings
	(except Miniwarehouses) — 3.33%
44267DAA5	The Howard Hughes Corporation
	6.875%, 10/01/2021, Acquired
	03/05/2014-04/17/2014 at $3,787,064■		3,500,000		3,762,500
	Merchant Wholesalers, Durable Goods — 1.69%
	HD Supply, Inc.
40415RAF2	8.125%, 04/15/2019^		1,450,000		1,600,437
40415RAK1	11.500%, 07/15/2020		250,000		301,250
					1,901,687
	Mining (except Oil and Gas) — 2.07%
35671DAU9	Freeport-McMoRan Copper & Gold Inc.
	3.550%, 03/01/2022^		1,100,000		1,091,142
	Peabody Energy Corporation
704549AK0	6.000%, 11/15/2018^		950,000		995,125
704549AH7	6.500%, 09/15/2020		250,000		253,125
					2,339,392
	Motion Picture and Sound Recording
	Industries — 1.19%
26153CAA1	DreamWorks Animation SKG, Inc.
	6.875%, 08/15/2020, Acquired
	03/03/2014-03/25/2014 at $1,348,562■		1,240,000		1,342,300
	Motor Vehicle and Parts Dealers — 0.70%
70959WAE3	Penske Automotive Group, Inc.
	5.750%, 10/01/2022		750,000		793,125

The accompanying notes are an integral part of these financial statements.

128

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Non-Store Retailers — 2.97%
835898AF4	Sotheby’s
	5.250%, 10/01/2022, Acquired
	03/03/2014-04/03/2014 at $3,357,946#■	$	3,426,000	$	3,348,915
	Oil and Gas Extraction — 0.90%
212015AH4	Continental Resources, Inc.
	5.000%, 09/15/2022		100,000		108,875
98212BAD5	WPX Energy Inc.
	6.000%, 01/15/2022		850,000		911,625
					1,020,500
	Professional, Scientific, and Technical
	Services — 0.22%
65409QBA9	Nielsen Finance LLC
	4.500%, 10/01/2020		250,000		253,125
	Publishing Industries (except Internet) — 0.42%
67020YAD2	Nuance Communications, Inc.
	5.375%, 08/15/2020, Acquired
	02/14/2014-03/27/2014 at $449,375■		450,000		468,000
	Rental and Leasing Services — 2.03%
459745GF6	International Lease Finance Corp.
	8.250%, 12/15/2020		1,850,000		2,289,375
	Satellite Telecommunications — 3.62%
	Dish DBS Corp.
25470XAH8	4.625%, 07/15/2017		3,000,000		3,191,250
25470XAB1	7.875%, 09/01/2019		100,000		119,000
67054LAB3	Numericable Group SA
	6.000%, 05/15/2022, Acquired
	06/11/2014 at $263,099■		750,000		780,937
					4,091,187
	Securities, Commodity Contracts, and Other Financial
	Investments and Related Activities — 2.10%
683797AB0	Oppenheimer Holdings, Inc.
	8.750%, 04/15/2018		2,210,000		2,370,225
	Telecommunications — 2.96%
156700AS5	Centurylink, Inc.
	5.800%, 03/15/2022		500,000		523,125

The accompanying notes are an integral part of these financial statements.

129

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier			Amount		Value
	Telecommunications — 2.96% (Continued)
228227BD5	Crown Castle International Corp.
	5.250%, 01/15/2023	$	300,000	$	314,250
	Hughes Satellite Systems Corp.
444454AB8	6.500%, 06/15/2019		500,000		560,000
444454AA0	7.625%, 06/15/2021		500,000		575,000
83404DAA7	SoftBank Corp.
	4.500%, 04/15/2020, Acquired
	04/24/2014-04/28/2014 at $757,316■		750,000		765,000
852061AK6	Sprint Communications Inc.
	9.000%, 11/15/2018, Acquired 12/30/2013
	at $119,059^■		100,000		121,500
87264AAD7	T-Mobile USA, Inc.
	6.633%, 04/28/2021		350,000		380,187
55181WAA2	Virgin Media Secured Finance plc
	5.375%, 04/15/2021, Acquired 02/11/2014
	at $101,625^■		100,000		105,500
					3,344,562
	Transportation Equipment Manufacturing — 1.16%
63934EAM0	Navistar International Corp.
	8.250%, 11/01/2021^		1,250,000		1,309,375
	Utilities — 0.10%
629377BN1	NRG Energy, Inc.
	7.625%, 01/15/2018		100,000		115,250
	TOTAL CORPORATE BONDS
	(cost $63,087,801)				63,920,049

	MUNICIPAL BONDS — 0.47%
	Air Transportation — 0.47%
	Branson Missouri Regional Airport Transportation
	Development District
105459AB7	6.000%, 07/01/2025c+		2,000,000		300,000
105459AC5	6.000%, 07/01/2037c+		1,500,000		225,000
					525,000
	TOTAL MUNICIPAL BONDS
	(cost $2,245,112)				525,000

The accompanying notes are an integral part of these financial statements.

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier	ESCROW NOTES — 0.09%		Amount		Value
	Holding Company — 0.09%
29ESCQ8A3	Energy Future Intermediate Holdings Co. LLC	$	1,000,000	$	97,500
	TOTAL ESCROW NOTES
	(Cost $38,520)				97,500
	EXCHANGE TRADED FUNDS — 1.20%		Shares
	Funds, Trusts, and Other Financial Vehicles — 1.20%
BOND	PIMCO Total Return ETF^		12,400		1,351,600
	TOTAL EXCHANGE TRADED FUNDS
	(cost $1,319,040)				1,351,600

	EXCHANGE TRADED NOTES — 0.00%
	Credit Intermediation and Related Activities — 0.00%
ZIV	VelocityShares Daily Inverse VIX Medium
	Term ETN*		100		4,651
	TOTAL EXCHANGE TRADED NOTES
	(cost $3,791)				4,651

	MUTUAL FUNDS — 7.25%
	Funds, Trusts, and Other Financial
	Vehicles — 7.25%
ACG	ACM Income Fund, Inc.		131,200		986,624
ACP	Avenue Income Credit Strategies Fund		16,600		298,468
DSL	DoubleLine Income Solutions Fund		27,400		615,404
DBL	DoubleLine Opportunistic Credit Fund		18,900		446,985
TLI	LMP Corporate Loan Fund Inc.		12,000		144,240
PCM	PCM Fund Inc.		2,900		35,525
PCN	PIMCO Corporate Income Fund		1,700		28,849
PCI	PIMCO Dynamic Credit Income Fund		55,600		1,324,392
PDI	PIMCO Dynamic Income Fund		70,500		2,403,345
PKO	PIMCO Income Opportunity Fund		16,050		469,623
PFL	PIMCO Income Strategy Fund		20,600		254,204
PFN	PIMCO Income Strategy Fund II		20,100		222,306
SPE	Special Opportunities Fund Inc.		28,200		470,940
DMO	Western Asset Mortgage Defined
	Opportunity Fund Inc.		19,500		479,700
WIW	Western Asset/Claymore Inflation-Linked
	Opportunities & Income Fund		200		2,462

The accompanying notes are an integral part of these financial statements.

131

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

Identifier		Shares		Value
	Funds, Trusts, and Other Financial
	Vehicles — 7.25% (Continued)
WIA	Western Asset/Claymore Inflation-Linked
	Securities & Income Fund	200	$	2,446
	TOTAL MUTUAL FUNDS
	(cost $7,838,008)			8,185,513

	PURCHASED PUT OPTIONS — 1.42%	Contractsd
	Credit Intermediation and Related Activities — 0.25%
	iPath S&P 500 VIX Short-Term Futures ETN*
VXX 150117P00025000	Expiration Date: January 2015, Exercise Price: $25.00	2		577
VXX 160115P00015000	Expiration Date: January 2016, Exercise Price: $15.00	4		660
VXX 160115P00020000	Expiration Date: January 2016, Exercise Price: $20.00	536		207,700
VXX 160115P00025000	Expiration Date: January 2016, Exercise Price: $25.00	114		77,520
				286,457
	Funds, Trusts, and Other Financial
	Vehicles — 1.17%
	ProShares Ultra VIX Short-Term Futures ETF*
UVXY2 150117P00010000	Expiration Date: January 2015, Exercise Price: $10.00	18		9,045
UVXY2 150117P00011000	Expiration Date: January 2015, Exercise Price: $11.00	12		7,080
UVXY1 150117P00012000	Expiration Date: January 2015, Exercise Price: $12.00	6		6,570
UVXY2 150117P00012000	Expiration Date: January 2015, Exercise Price: $12.00	78		52,650
UVXY2 150117P00014000	Expiration Date: January 2015, Exercise Price: $14.00	4		3,410
UVXY2 150117P00015000	Expiration Date: January 2015, Exercise Price: $15.00	4		3,770
UVXY2 150117P00016000	Expiration Date: January 2015, Exercise Price: $16.00	18		18,585
UVXY2 160115P00008000	Expiration Date: January 2016, Exercise Price: $8.00	60		30,300
UVXY2 160115P00009000	Expiration Date: January 2016, Exercise Price: $9.00	214		126,795
UVXY2 160115P00010000	Expiration Date: January 2016, Exercise Price: $10.00	26		17,550
UVXY 160115P00015000	Expiration Date: January 2016, Exercise Price: $15.00	705		498,787
UVXY 160115P00020000	Expiration Date: January 2016, Exercise Price: $20.00	510		548,250
				1,322,792
	TOTAL PURCHASED PUT OPTIONS
	(cost $1,395,269)			1,609,249

The accompanying notes are an integral part of these financial statements.

132

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The Multi-Disciplinary Portfolio

Portfolio of Investments — June 30, 2014 (Unaudited) — (Continued)

			Principal
Identifier	SHORT-TERM INVESTMENTS — 5.36%		Amount		Value
	Commercial Paper — 3.91%
039715141	U.S. Bank N.A., 0.02%, 07/01/2014	$	4,414,000		4,414,000
			Shares
	Money Market Funds — 1.45%
FIGXX	Fidelity Institutional Government
	Portfolio — Class I, 0.01%b		1,642,442		1,642,442
	TOTAL SHORT-TERM INVESTMENTS
	(cost $6,056,442)				6,056,442
	INVESTMENTS PURCHASED WITH
	THE CASH PROCEEDS FROM
	SECURITIES LENDING — 22.21%
	Money Market Funds — 22.21%
	Mount Vernon Securities Lending Trust —
	Prime Portfolio, 0.18%b		25,078,937		25,078,937
	TOTAL INVESTMENTS PURCHASED WITH THE
	CASH PROCEEDS FROM SECURITIES LENDING
	(cost $25,078,937)				25,078,937
	TOTAL INVESTMENTS — 123.75%
	(cost $137,449,056)			$	139,712,880

Percentages are stated as a percent of net assets.
* —	Non-income producing security.
^ —	This security or a portion of this security was out on loan at June 30, 2014. Total loaned securities had a market value of $24,410,710 at June 30, 2014.
# —	All or a portion of the shares have been committed as collateral for written option contracts.
■ —	Restricted security restricted to institutional investors (144a securities); the percentage of net assets comprised of 144a securities was 15.57%.
c —	The security missed January 1, 2012 interest payment and has ceased to accrue income. A forbearance agreement is currently in place.
+ —	Security is considered illiquid. The aggregate value of such securities is $525,000 or 0.47% of net assets.
b —	The rate quoted is the annualized seven-day yield as of June 30, 2014.
d —	100 shares per contract.
CAD — Canadian Dollars.
ETF — Exchange Traded Fund.
ETN — Exchange Traded Note.

The accompanying notes are an integral part of these financial statements.

133

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The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited)

Identifier	PUT OPTIONS WRITTEN	Contractsd		Value
	Accommodation
	Carnival Corporation
CCL 150117P00024500	Expiration: January 2015, Exercise Price: $24.50	33	$	412
CCL 150117P00029500	Expiration: January 2015, Exercise Price: $29.50	9		360
CCL 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	29		3,625
CCL 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	3		518
	Marriott International Inc. — Class A
MAR 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	35		1,138
MAR 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	8		320
MAR 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	2		250
	Starwood Hotels & Resorts Worldwide, Inc.
HOT 150117P00053700	Expiration: January 2015, Exercise Price: $53.70	1		27
HOT 160115P00053700	Expiration: January 2016, Exercise Price: $53.70	4		684
HOT 160115P00056200	Expiration: January 2016, Exercise Price: $56.20	10		2,080
HOT 160115P00058700	Expiration: January 2016, Exercise Price: $58.70	1		255
				9,669
	Administrative and Support Services
	Accenture plc — Class A
ACN 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	5		412
ACN 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	7		1,575
	Expedia, Inc.
EXPE 141018P00050000	Expiration: October 2014, Exercise Price: $50.00	3		53
EXPE 141018P00055000	Expiration: October 2014, Exercise Price: $55.00	2		70
EXPE 150117P00044480	Expiration: January 2015, Exercise Price: $44.48	4		120
EXPE 150117P00049480	Expiration: January 2015, Exercise Price: $49.48	6		330
EXPE 150117P00054480	Expiration: January 2015, Exercise Price: $54.48	4		390
EXPE 150117P00059480	Expiration: January 2015, Exercise Price: $59.48	12		1,980
EXPE 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	3		435
EXPE 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	10		3,075
EXPE 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		435
				8,875
	Ambulatory Health Care Services
	DaVita HealthCare Partners Inc.
DVA 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	11		990
DVA 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		148
				1,138

The accompanying notes are an integral part of these financial statements.

134

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The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd	Value
	Apparel Manufacturing
	L Brands, Inc.
LB 141122P00045000	Expiration: November 2014, Exercise Price: $45.00	3	$ 97
LB 150117P00039000	Expiration: January 2015, Exercise Price: $39.00	11	247
LB 150117P00043000	Expiration: January 2015, Exercise Price: $43.00	9	383
LB 150117P00046000	Expiration: January 2015, Exercise Price: $46.00	5	338
LB 160115P00039000	Expiration: January 2016, Exercise Price: $39.00	10	1,250
LB 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	3	420
LB 160115P00041500	Expiration: January 2016, Exercise Price: $41.50	2	320
			3,055
	Asset Management
	Affiliated Managers Group, Inc.
AMG 141220P00140000	Expiration: December 2014, Exercise Price: $140.00	1	135
AMG 141220P00145000	Expiration: December 2014, Exercise Price: $145.00	1	162
	BlackRock, Inc.
BLK 160115P00210000	Expiration: January 2016, Exercise Price: $210.00	8	4,840
BLK 160115P00220000	Expiration: January 2016, Exercise Price: $220.00	1	710
BLK 160115P00230000	Expiration: January 2016, Exercise Price: $230.00	4	3,520
	The Blackstone Group LP
BX 141220P00024000	Expiration: December 2014, Exercise Price: $24.00	6	150
BX 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	40	300
BX 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	16	312
BX 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	5	420
BX 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	39	5,265
	Franklin Resources, Inc.
BEN 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	1	30
BEN 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	42	5,460
	KKR & Co. LP
KKR 150117P00013000	Expiration: January 2015, Exercise Price: $13.00	50	500
KKR 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	22	1,375
	Legg Mason, Inc.
LM 141122P00034000	Expiration: November 2014, Exercise Price: $34.00	10	175
			23,354

The accompanying notes are an integral part of these financial statements.

135

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The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)]

Identifier		Contractsd		Value
	Beverage and Tobacco Product Manufacturing
	Anheuser-Busch InBev NV — ADR
BUD 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	2	$	595
	Constellation Brands, Inc. — Class A
STZ 150117P00042500	Expiration: January 2015, Exercise Price: $42.50	8		100
STZ 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	2		40
STZ 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	9		405
STZ 160115P00052500	Expiration: January 2016, Exercise Price: $52.50	3		270
STZ 160115P00057500	Expiration: January 2016, Exercise Price: $57.50	3		405
STZ 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	7		1,137
STZ 160115P00062500	Expiration: January 2016, Exercise Price: $62.50	2		400
	The Coca-Cola Company
KO 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	18		153
KO 150117P00032500	Expiration: January 2015, Exercise Price: $32.50	5		57
KO 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	8		184
KO 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	7		567
	Lorillard, Inc.
LO 150117P00036670	Expiration: January 2015, Exercise Price: $36.67	28		420
LO 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	2		129
LO 160115P00037500	Expiration: January 2016, Exercise Price: $37.50	11		1,243
	Molson Coors Brewing Company — Class B
TAP 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	22		385
TAP 160115P00037500	Expiration: January 2016, Exercise Price: $37.50	2		70
TAP 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	14		665
TAP 160115P00042500	Expiration: January 2016, Exercise Price: $42.50	6		360
TAP 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	5		425
TAP 160115P00047500	Expiration: January 2016, Exercise Price: $47.50	3		308
	Philip Morris International, Inc.
PM 150117P00075000	Expiration: January 2015, Exercise Price: $75.00	5		700
				9,018
	Broadcasting (except Internet)
	CBS Corporation — Class B
CBS 141220P00040000	Expiration: December 2014, Exercise Price: $40.00	2		25
CBS 141220P00042500	Expiration: December 2014, Exercise Price: $42.50	3		67
CBS 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	12		120
CBS 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	4		70
CBS 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	2		70
CBS 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	8		400
CBS 150117P00047000	Expiration: January 2015, Exercise Price: $47.00	2		140

The accompanying notes are an integral part of these financial statements.

136

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Broadcasting (except Internet) — (Continued)
	Comcast Corporation — Class A
CMCSA 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	15	$	262
CMCSA 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	6		165
CMCSA 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	6		399
CMCSA 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	10		975
CMCSA 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	8		1,004
	Sirius XM Holdings Inc.
SIRI 160115P00002500	Expiration: January 2016, Exercise Price: $2.50	160		2,080
	Time Warner Inc.
TWX1 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	4		384
TWX1 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	5		740
	Twenty-First Century Fox, Inc. — Class A
FOXA 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	28		560
FOXA 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	15		525
FOXA 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	14		910
FOXA 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	25		2,375
	The Walt Disney Company
DIS 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	8		676
DIS 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	16		1,952
DIS 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	4		740
DIS 160115P00062500	Expiration: January 2016, Exercise Price: $62.50	1		219
				14,858
	Building Equipment Contractors
	Honeywell International Inc.
HON 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	1		31
HON 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	7		1,155
HON 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	1		236
				1,422
	Building Material and Garden Equipment and Supplies Dealers
	Fastenal Company
FAST 150117P00032500	Expiration: January 2015, Exercise Price: $32.50	31		542
FAST 150117P00034500	Expiration: January 2015, Exercise Price: $34.50	13		325
FAST 150117P00037500	Expiration: January 2015, Exercise Price: $37.50	7		332
FAST 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	15		1,800
FAST 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	3		458
FAST 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	2		440

The accompanying notes are an integral part of these financial statements.

137

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd	Value
	Building Material and Garden Equipment and
	Supplies Dealers — (Continued)
	The Home Depot, Inc.
HD 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	1	$ 37
HD 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	10	625
	Lowe’s Companies, Inc.
LOW 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	10	300
LOW 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	9	378
LOW 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	5	373
LOW 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	31	4,371
	The Sherwin-Williams Company
SHW 150117P00130000	Expiration: January 2015, Exercise Price: $130.00	4	140
SHW 150117P00135000	Expiration: January 2015, Exercise Price: $135.00	4	180
SHW 150117P00150000	Expiration: January 2015, Exercise Price: $150.00	2	170
SHW 160115P00140000	Expiration: January 2016, Exercise Price: $140.00	2	800
SHW 160115P00150000	Expiration: January 2016, Exercise Price: $150.00	2	1,100
			12,371
	Chemical Manufacturing
	Celgene Corporation
CELG 141018P00052500	Expiration: October 2014, Exercise Price: $52.50	2	27
CELG 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	12	300
CELG 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	6	204
CELG 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	10	420
CELG 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	2	110
CELG 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	4	460
CELG 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	12	2,148
CELG 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	4	1,042
	CF Industries Holdings, Inc.
CF 150117P00170000	Expiration: January 2015, Exercise Price: $170.00	1	150
CF 160115P00175000	Expiration: January 2016, Exercise Price: $175.00	1	960
CF 160115P00180000	Expiration: January 2016, Exercise Price: $180.00	3	3,255
CF 160115P00185000	Expiration: January 2016, Exercise Price: $185.00	1	1,225

The accompanying notes are an integral part of these financial statements.

138

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Chemical Manufacturing — (Continued)
	The Dow Chemical Company
DOW 141220P00037000	Expiration: December 2014, Exercise Price: $37.00	4	$	108
DOW 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	12		96
DOW 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	1		13
DOW 150117P00032000	Expiration: January 2015, Exercise Price: $32.00	12		216
DOW 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	8		420
DOW 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	20		1,340
DOW 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	6		588
DOW 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2		248
DOW 160115P00037000	Expiration: January 2016, Exercise Price: $37.00	19		2,993
	E.I. du Pont de Nemours and Company
DD 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	10		175
DD 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	18		1,710
	Eastman Chemical Company
EMN 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	3		60
EMN 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	10		300
EMN 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		142
EMN 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	12		2,430
EMN 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	3		855
	LyondellBasell Industries NV — Class A
LYB 150117P00057250	Expiration: January 2015, Exercise Price: $57.25	3		45
LYB 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		240
LYB 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	2		365
	Monsanto Company
MON 150117P00075000	Expiration: January 2015, Exercise Price: $75.00	10		175
MON 150117P00082500	Expiration: January 2015, Exercise Price: $82.50	5		132
MON 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	2		220
MON 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	4		578
MON 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	5		950
MON 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	1		246
	The Mosaic Company
MOS 150117P00032500	Expiration: January 2015, Exercise Price: $32.50	3		30
MOS 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	34		510
MOS 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	15		1,455

The accompanying notes are an integral part of these financial statements.

139

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Chemical Manufacturing — (Continued)
	Mylan Inc.
MYL 141018P00037000	Expiration: October 2014, Exercise Price: $37.00	4	$	102
MYL 150117P00032000	Expiration: January 2015, Exercise Price: $32.00	3		74
MYL 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	28		1,120
MYL 150117P00036000	Expiration: January 2015, Exercise Price: $36.00	2		92
MYL 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	4		218
MYL 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2		304
MYL 160115P00037000	Expiration: January 2016, Exercise Price: $37.00	2		384
	OPKO Health, Inc.
OPK 150117P00003000	Expiration: January 2015, Exercise Price: $3.00	66		330
OPK 160115P00003000	Expiration: January 2016, Exercise Price: $3.00	66		1,980
	Teva Pharmaceutical Industries Ltd. — ADR
TEVA 150117P00032500	Expiration: January 2015, Exercise Price: $32.50	21		199
TEVA 150117P00037500	Expiration: January 2015, Exercise Price: $37.50	4		108
TEVA 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	35		1,418
TEVA 160115P00032500	Expiration: January 2016, Exercise Price: $32.50	6		366
TEVA 160115P00037500	Expiration: January 2016, Exercise Price: $37.50	6		783
				34,419
	Clothing and Clothing Accessories Stores
	The Estee Lauder Companies Inc. — Class A
EL 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	2		230
	The Gap, Inc.
GPS 150117P00028000	Expiration: January 2015, Exercise Price: $28.00	9		121
GPS 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	5		115
GPS 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	17		1,573
GPS 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	20		2,420
	Nordstrom, Inc.
JWN 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	16		264
JWN 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	4		456
	Tiffany & Co.
TIF 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	4		82
TIF 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	11		1,028
TIF 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		135
TIF 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	1		191
TIF 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	7		1,593
TIF 160115P00072500	Expiration: January 2016, Exercise Price: $72.50	1		313
				8,521

The accompanying notes are an integral part of these financial statements.

140

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd			Value
	Computer and Electronic Product Manufacturing
	Agilent Technologies, Inc.
A 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	19		$	342
A 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	5			165
A 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	18			801
A 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	1			104
A 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	17			3,026
A 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	2			560
	Altera Corporation
ALTR 150117P00023000	Expiration: January 2015, Exercise Price: $23.00	20			250
	Apple, Inc.
AAPL 160115P00057140	Expiration: January 2016, Exercise Price: $57.14	7			696
AAPL7 160115P00057140	Expiration: January 2016, Exercise Price: $57.14	28	e		286
AAPL 160115P00058570	Expiration: January 2016, Exercise Price: $58.57	21			2,468
AAPL 160115P00068570	Expiration: January 2016, Exercise Price: $68.57	1			288
AAPL 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	2			655
	Broadcom Corporation — Class A
BRCM 150117P00023000	Expiration: January 2015, Exercise Price: $23.00	20			230
BRCM 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	8			488
BRCM 160115P00027000	Expiration: January 2016, Exercise Price: $27.00	3			376
	Cisco Systems, Inc.
CSCO 140719P00018000	Expiration: July 2014, Exercise Price: $18.00	29			29
CSCO 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	20			110
CSCO 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	4			42
CSCO 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	10			265
CSCO 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	18			1,152
	EMC Corporation
EMC 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	7			553
	Hologic, Inc.
HOLX 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	61			2,897
	International Business Machines Corporation
IBM 150117P00160000	Expiration: January 2015, Exercise Price: $160.00	5			1,562
IBM 160115P00130000	Expiration: January 2016, Exercise Price: $130.00	1			301
IBM 160115P00140000	Expiration: January 2016, Exercise Price: $140.00	2			900
IBM 160115P00160000	Expiration: January 2016, Exercise Price: $160.00	2			1,835

The accompanying notes are an integral part of these financial statements.

141

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Computer and Electronic Product Manufacturing — (Continued)
	QUALCOMM Inc.
QCOM 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	1	$	21
QCOM 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	15		1,342
QCOM 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	6		864
QCOM 160115P00057500	Expiration: January 2016, Exercise Price: $57.50	1		180
QCOM 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	3		668
	Sony Corporation
SNE 150117P00012000	Expiration: January 2015, Exercise Price: $12.00	14		210
SNE 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	26		1,755
SNE 160115P00013000	Expiration: January 2016, Exercise Price: $13.00	25		2,375
	St. Jude Medical, Inc.
STJ 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	2		30
STJ 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	20		1,700
STJ 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	8		1,060
STJ 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	14		3,150
	Texas Instruments Inc.
TXN 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	9		113
TXN 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	2		123
	Thermo Fisher Scientific, Inc.
TMO 150117P00075000	Expiration: January 2015, Exercise Price: $75.00	1		33
TMO 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	10		2,575
TMO 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	4		1,340
				37,920
	Construction of Buildings
	Lennar Corporation — Class A
LEN 141122P00028000	Expiration: November 2014, Exercise Price: $28.00	5		55
LEN 141122P00030000	Expiration: November 2014, Exercise Price: $30.00	5		95
LEN 150117P00023000	Expiration: January 2015, Exercise Price: $23.00	8		84
LEN 150117P00028000	Expiration: January 2015, Exercise Price: $28.00	20		490
LEN 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	12		432
LEN 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	15		1,065
LEN 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	14		1,680
LEN 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	9		1,391
				5,292

The accompanying notes are an integral part of these financial statements.

142

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Consumer Staples
	The Procter & Gamble Company
PG 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	8	$	312
PG 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	7		851
				1,163
	Couriers and Messengers
	FedEx Corp.
FDX 150117P00097500	Expiration: January 2015, Exercise Price: $97.50	3		82
FDX 150117P00100000	Expiration: January 2015, Exercise Price: $100.00	2		67
FDX 150117P00105000	Expiration: January 2015, Exercise Price: $105.00	3		134
FDX 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	5		633
FDX 160115P00095000	Expiration: January 2016, Exercise Price: $95.00	4		642
FDX 160115P00097500	Expiration: January 2016, Exercise Price: $97.50	1		181
FDX 160115P00100000	Expiration: January 2016, Exercise Price: $100.00	7		1,407
				3,146
	Credit Intermediation and Related Activities
	American Express Company
AXP 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	17		255
AXP 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	1		26
AXP 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		99
AXP 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	7		1,005
AXP 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	6		1,035
	Bank of America Corporation
BAC 150117P00010000	Expiration: January 2015, Exercise Price: $10.00	30		135
BAC 150117P00012000	Expiration: January 2015, Exercise Price: $12.00	32		496
BAC 160115P00010000	Expiration: January 2016, Exercise Price: $10.00	42		1,533
BAC 160115P00012000	Expiration: January 2016, Exercise Price: $12.00	118		8,555
	The Bank of New York Mellon Corporation
BK 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	28		1,316
BK 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	20		1,250
	Capital One Financial Corporation
COF 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	8		1,056
	Citigroup Inc.
C 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	6		219
C 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	3		289
C 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	17		2,091
	Ocwen Financial Corporation
OCN 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	8		580
OCN 160115P00027500	Expiration: January 2016, Exercise Price: $27.50	20		6,600

The accompanying notes are an integral part of these financial statements.

143

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Credit Intermediation and Related Activities — (Continued)
	State Street Corporation
STT 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	2	$	381
	U.S. Bancorp
USB 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	4		270
USB 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	3		300
USB 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2		270
	Wells Fargo & Company
WFC 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	19		266
WFC 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	6		405
				28,432
	Data Processor
	MasterCard, Inc. — Class A
MA 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	6		255
MA 150117P00055500	Expiration: January 2015, Exercise Price: $55.50	2		91
MA 150117P00058000	Expiration: January 2015, Exercise Price: $58.00	10		635
MA 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	10		2,245
MA 160115P00057000	Expiration: January 2016, Exercise Price: $57.00	2		534
MA 160115P00058000	Expiration: January 2016, Exercise Price: $58.00	3		865
MA 160115P00062000	Expiration: January 2016, Exercise Price: $62.00	10		4,025
	Visa, Inc. — Class A
V 150117P00140000	Expiration: January 2015, Exercise Price: $140.00	2		71
V 150117P00145000	Expiration: January 2015, Exercise Price: $145.00	4		172
V 150117P00180000	Expiration: January 2015, Exercise Price: $180.00	3		774
V 160115P00150000	Expiration: January 2016, Exercise Price: $150.00	1		383
V 160115P00165000	Expiration: January 2016, Exercise Price: $165.00	2		1,225
				11,275
	Diversi_ed Financial Services
	JPMorgan Chase & Co.
JPM 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	8		168
JPM 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	21		2,205
JPM 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	9		1,733
				4,106

The accompanying notes are an integral part of these financial statements.

144

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	E-Commerce
	Amazon.com, Inc.
AMZN 150117P00255000	Expiration: January 2015, Exercise Price: $255.00	1	$	562
AMZN 150117P00260000	Expiration: January 2015, Exercise Price: $260.00	1		642
AMZN 150117P00270000	Expiration: January 2015, Exercise Price: $270.00	5		4,162
AMZN 160115P00230000	Expiration: January 2016, Exercise Price: $230.00	1		1,198
AMZN 160115P00260000	Expiration: January 2016, Exercise Price: $260.00	1		1,975
AMZN 160115P00290000	Expiration: January 2016, Exercise Price: $290.00	1		3,058
	eBay, Inc.
EBAY 150117P00038000	Expiration: January 2015, Exercise Price: $38.00	6		234
EBAY 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	7		413
EBAY 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	3		368
EBAY 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	34		7,480
EBAY 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	9		3,465
	IAC/InterActiveCorp
IACI 140719P00050000	Expiration: July 2014, Exercise Price: $50.00	9		22
IACI 141018P00050000	Expiration: October 2014, Exercise Price: $50.00	3		105
IACI 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	11		303
IACI 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	11		550
IACI 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	14		1,260
IACI 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	2		330
	Liberty Interactive Corporation — Class A
LINTA 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	5		75
LINTA 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	30		450
				26,652
	Electrical Equipment, Appliance, and Component Manufacturing
	Corning Inc.
GLW 150117P00012000	Expiration: January 2015, Exercise Price: $12.00	38		209
	Emerson Electric Co.
EMR 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	2		365
EMR 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	5		1,450
	Whirlpool Corporation
WHR 141220P00110000	Expiration: December 2014, Exercise Price: $110.00	2		336
WHR 150117P00100000	Expiration: January 2015, Exercise Price: $100.00	5		532
WHR 150117P00105000	Expiration: January 2015, Exercise Price: $105.00	1		149
WHR 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	2		730
WHR 160115P00105000	Expiration: January 2016, Exercise Price: $105.00	1		693
WHR 160115P00110000	Expiration: January 2016, Exercise Price: $110.00	1		840
WHR 160115P00115000	Expiration: January 2016, Exercise Price: $115.00	2		2,010
				7,314

The accompanying notes are an integral part of these financial statements.

145

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Fabricated Metal Product Manufacturing
	Danaher Corporation
DHR 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	12	$	180
DHR 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	8		140
DHR 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	3		360
				680
	Food and Beverage Stores
	The Kroger Co.
KR 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	12		90
KR 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	12		210
KR 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	12		390
KR 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	9		383
	Whole Foods Market, Inc.
WFM 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	3		187
WFM 150117P00037500	Expiration: January 2015, Exercise Price: $37.50	12		3,510
WFM 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	14		2,149
WFM 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	9		1,832
WFM 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	8		3,100
				11,851
	Food Manufacturing
	Archer-Daniels-Midland Company
ADM 141220P00035000	Expiration: December 2014, Exercise Price: $35.00	4		108
ADM 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	28		350
ADM 150117P00032000	Expiration: January 2015, Exercise Price: $32.00	1		18
ADM 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	3		157
ADM 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	39		2,847
ADM 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	7		844
	Bunge Limited
BG 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	2		125
BG 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	2		240
BG 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		182
BG 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	10		4,150
	Mead Johnson Nutrition Company
MJN 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	4		190
MJN 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	10		535
MJN 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	1		55
MJN 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		118

The accompanying notes are an integral part of these financial statements.

146

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Food Manufacturing — (Continued)
	Mondelez International Inc. — Class A
MDLZ 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	3	$	280
	Tyson Foods, Inc. — Class A
TSN 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	8		760
TSN 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	3		638
				11,597
	Food Services and Drinking Places
	Starbucks Corporation
SBUX 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	5		77
SBUX 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	12		318
SBUX 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	2		100
SBUX 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	5		518
SBUX 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	19		3,183
SBUX 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		253
	Yum! Brands, Inc.
YUM 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	1		14
YUM 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	13		429
YUM 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	4		328
YUM 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	8		1,020
				6,240
	Funds, Trusts, and Other Financial Vehicles
	CBRE Group, Inc. — Class A
CBG 140920P00020000	Expiration: September 2014, Exercise Price: $20.00	5		12
CBG 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	41		308
	iShares MSCI Emerging Markets ETF
EEM 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	2		30
EEM 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	6		360
EEM 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	4		320
	Market Vectors Gold Miners ETF
GDX 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	8		32
GDX 150117P00016000	Expiration: January 2015, Exercise Price: $16.00	3		15
GDX 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	8		60
GDX 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	30		795
GDX 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	21		609
GDX 160115P00016000	Expiration: January 2016, Exercise Price: $16.00	3		118
				2,659

The accompanying notes are an integral part of these financial statements.

147

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Furniture and Home Furnishings Stores
	Bed Bath & Beyond Inc.
BBBY 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	10	$	3,300
	Gaming
	Las Vegas Sands Corp.
LVS 141220P00055000	Expiration: December 2014, Exercise Price: $55.00	1		74
LVS 150117P00047250	Expiration: January 2015, Exercise Price: $47.25	1		42
LVS 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	4		232
LVS 150117P00052250	Expiration: January 2015, Exercise Price: $52.25	9		635
LVS 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	2		180
LVS 150117P00057250	Expiration: January 2015, Exercise Price: $57.25	2		215
LVS 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	2		468
LVS 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	18		6,075
LVS 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		955
	Wynn Resorts Limited
WYNN 141220P00150000	Expiration: December 2014, Exercise Price: $150.00	2		369
WYNN 141220P00155000	Expiration: December 2014, Exercise Price: $155.00	1		237
WYNN 150117P00167000	Expiration: January 2015, Exercise Price: $167.00	3		1,387
WYNN 150117P00175000	Expiration: January 2015, Exercise Price: $175.00	1		627
WYNN 160115P00120000	Expiration: January 2016, Exercise Price: $120.00	1		365
WYNN 160115P00140000	Expiration: January 2016, Exercise Price: $140.00	3		2,093
WYNN 160115P00147000	Expiration: January 2016, Exercise Price: $147.00	1		865
WYNN 160115P00167000	Expiration: January 2016, Exercise Price: $167.00	3		4,448
				19,267
	General Merchandise Stores
	Costco Wholesale Corporation
COST 150117P00083000	Expiration: January 2015, Exercise Price: $83.00	1		31
COST 150117P00088000	Expiration: January 2015, Exercise Price: $88.00	6		255
COST 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	3		540
COST 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	8		1,916
COST 160115P00095000	Expiration: January 2016, Exercise Price: $95.00	1		325
	Family Dollar Stores, Inc.
FDO 150117P00042500	Expiration: January 2015, Exercise Price: $42.50	11		275

The accompanying notes are an integral part of these financial statements.

148

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd	Value
	General Merchandise Stores — (Continued)
	Macy’s, Inc.
M 141122P00045000	Expiration: November 2014, Exercise Price: $45.00	3	$ 97
M 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	4	70
M 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	2	55
M 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	2	72
M 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	30	1,260
M 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	2	230
M 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	19	2,736
	Sears Holdings Corporation
SHLD1 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	5	93
SHLD1 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	8	824
	Wal-Mart Stores, Inc.
WMT 150117P00062500	Expiration: January 2015, Exercise Price: $62.50	5	178
WMT 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	4	214
WMT 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1	83
			9,254
	Health and Personal Care Stores
	CVS Caremark Corporation
CVS 160115P00052500	Expiration: January 2016, Exercise Price: $52.50	3	297
CVS 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1	128
CVS 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	17	3,536
	Walgreen Company
WAG 141018P00055000	Expiration: October 2014, Exercise Price: $55.00	2	35
WAG 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	10	555
WAG 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	8	316
WAG 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	22	1,738
WAG 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	7	1,001
WAG 160115P00052500	Expiration: January 2016, Exercise Price: $52.50	1	186
WAG 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	5	1,228
			9,020

The accompanying notes are an integral part of these financial statements.

149

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Heavy and Civil Engineering Construction
	Chicago Bridge & Iron Company N.V.
CBI 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	3	$	510
CBI 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	1		222
CBI 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	4		1,160
CBI 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	3		1,410
CBI 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	14		9,240
CBI 160115P00062500	Expiration: January 2016, Exercise Price: $62.50	3		2,280
				14,822
	Holding Company
	Icahn Enterprises LP
IEP 140920P00075000	Expiration: September 2014, Exercise Price: $75.00	14		315
IEP 140920P00080000	Expiration: September 2014, Exercise Price: $80.00	8		420
IEP 140920P00085000	Expiration: September 2014, Exercise Price: $85.00	2		220
IEP 141220P00075000	Expiration: December 2014, Exercise Price: $75.00	3		330
	Leucadia National Corporation
LUK2 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	33		248
LUK2 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	42		3,465
				4,998
	Insurance Carriers and Related Activities
	Aetna Inc.
AET 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	8		152
AET 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	12		1,290
AET 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		165
AET 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		495
	Aflac, Inc.
AFL 150117P00047000	Expiration: January 2015, Exercise Price: $47.00	8		200
AFL 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	10		410
AFL 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	2		393
	American International Group, Inc.
AIG 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	38		437
AIG 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	14		1,071
AIG 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	15		1,710
	Lincoln National Corporation
LNC 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	6		1,392

The accompanying notes are an integral part of these financial statements.

150

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Insurance Carriers and Related Activities — (Continued)
	MetLife, Inc.
MET 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	18	$	297
MET 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	2		42
MET 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	8		692
MET 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	25		3,212
MET 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	14		2,310
	Prudential Financial, Inc.
PRU 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		209
PRU 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	8		2,520
	UnitedHealth Group Inc.
UNH 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	7		161
UNH 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	12		1,704
UNH 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	9		1,886
	WellPoint, Inc.
WLP 150117P00062500	Expiration: January 2015, Exercise Price: $62.50	7		147
WLP 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	1		26
WLP 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		102
WLP 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	5		673
WLP 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	2		387
WLP 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	15		3,983
				26,066
	Leather and Allied Product Manufacturing
	Coach, Inc.
COH 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	5		687
COH 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	60		9,150
	NIKE, Inc. — Class B
NKE 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	2		24
NKE 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	4		66
NKE 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	12		1,074
NKE 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	20		2,900
NKE 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		229
				14,130
	Machinery Manufacturing
	Baker Hughes Inc.
BHI 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	2		328
BHI 160115P00052500	Expiration: January 2016, Exercise Price: $52.50	4		812

The accompanying notes are an integral part of these financial statements.

151

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Machinery Manufacturing — (Continued)
	Cameron International Corporation
CAM 141122P00047500	Expiration: November 2014, Exercise Price: $47.50	3	$	60
CAM 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	8		660
	Caterpillar Inc.
CAT 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		82
CAT 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	8		920
CAT 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	5		797
CAT 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	1		315
	Cummins Inc.
CMI 141220P00110000	Expiration: December 2014, Exercise Price: $110.00	1		62
CMI 150117P00095000	Expiration: January 2015, Exercise Price: $95.00	1		32
CMI 150117P00097500	Expiration: January 2015, Exercise Price: $97.50	2		85
CMI 150117P00115000	Expiration: January 2015, Exercise Price: $115.00	1		110
CMI 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	1		200
CMI 160115P00095000	Expiration: January 2016, Exercise Price: $95.00	1		248
CMI 160115P00100000	Expiration: January 2016, Exercise Price: $100.00	3		938
CMI 160115P00105000	Expiration: January 2016, Exercise Price: $105.00	9		3,465
CMI 160115P00110000	Expiration: January 2016, Exercise Price: $110.00	2		940
CMI 160115P00115000	Expiration: January 2016, Exercise Price: $115.00	1		575
	Deere & Company
DE 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	1		23
DE 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	4		400
	Eaton Corporation plc
ETN 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	4		100
ETN 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	11		467
ETN 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	12		1,680
ETN 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	10		2,100
	General Electric Company
GE 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	25		687
GE 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	15		600
GE 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	34		2,244
	Ingersoll-Rand plc
IR1 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	4		40
IR 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	3		420
IR 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	11		2,613

The accompanying notes are an integral part of these financial statements.

152

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Machinery Manufacturing — (Continued)
	National Oilwell Varco, Inc.
NOV1 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	4	$	110
NOV1 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	10		1,120
NOV 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		216
NOV1 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	8		1,216
				24,665
	Management of Companies and Enterprises
	The Goldman Sachs Group, Inc.
GS 150117P00115000	Expiration: January 2015, Exercise Price: $115.00	2		85
GS 150117P00120000	Expiration: January 2015, Exercise Price: $120.00	2		104
GS 150117P00125000	Expiration: January 2015, Exercise Price: $125.00	1		69
GS 160115P00115000	Expiration: January 2016, Exercise Price: $115.00	3		698
GS 160115P00120000	Expiration: January 2016, Exercise Price: $120.00	1		286
				1,242
	Media
	Viacom Inc. — Class B
VIAB 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	8		280
VIAB 150117P00062500	Expiration: January 2015, Exercise Price: $62.50	1		42
VIAB 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	13		2,698
VIAB 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	2		590
				3,610
	Merchant Wholesalers, Nondurable Goods
	Cardinal Health, Inc.
CAH 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	18		180
CAH 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	5		87
CAH 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	2		65
CAH 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	6		855
CAH 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	12		2,490
CAH 160115P00052500	Expiration: January 2016, Exercise Price: $52.50	2		525
	Express Scripts Holding Company
ESRX 150117P00047500	Expiration: January 2015, Exercise Price: $47.50	10		235
ESRX 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	2		119
ESRX 160115P00047500	Expiration: January 2016, Exercise Price: $47.50	2		236
ESRX 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	11		1,667
ESRX 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	6		1,449
ESRX 160115P00057500	Expiration: January 2016, Exercise Price: $57.50	4		1,192

The accompanying notes are an integral part of these financial statements.

153

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Merchant Wholesalers, Nondurable Goods — (Continued)
	McKesson Corp.
MCK 150117P00125000	Expiration: January 2015, Exercise Price: $125.00	8	$	440
MCK 160115P00120000	Expiration: January 2016, Exercise Price: $120.00	6		1,830
MCK 160115P00125000	Expiration: January 2016, Exercise Price: $125.00	1		320
MCK 160115P00130000	Expiration: January 2016, Exercise Price: $130.00	4		1,520
	Ralph Lauren Corporation
RL 150117P00115000	Expiration: January 2015, Exercise Price: $115.00	5		312
RL 150117P00120000	Expiration: January 2015, Exercise Price: $120.00	1		88
RL 160115P00110000	Expiration: January 2016, Exercise Price: $110.00	1		310
RL 160115P00115000	Expiration: January 2016, Exercise Price: $115.00	5		1,900
RL 160115P00125000	Expiration: January 2016, Exercise Price: $125.00	1		580
RL 160115P00130000	Expiration: January 2016, Exercise Price: $130.00	1		700
				17,100
	Mining (except Oil and Gas)
	BHP Billiton Limited — ADR
BHP 150117P00047500	Expiration: January 2015, Exercise Price: $47.50	10		375
BHP 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	1		90
BHP 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	4		584
BHP 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	10		2,315
	Freeport-McMoRan Copper & Gold Inc.
FCX 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	23		207
FCX 150117P00024000	Expiration: January 2015, Exercise Price: $24.00	24		348
FCX 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	4		70
FCX 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	2		56
FCX 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	21		1,533
FCX 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	27		2,848
	Newmont Mining Corporation
NEM 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	6		240
NEM 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	8		712
	Rio Tinto plc — ADR
RIO 150117P00037500	Expiration: January 2015, Exercise Price: $37.50	15		637
RIO 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	3		173
RIO 160115P00037500	Expiration: January 2016, Exercise Price: $37.50	6		1,320
RIO 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	2		570
				12,078

The accompanying notes are an integral part of these financial statements.

154

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Miscellaneous Manufacturing
	3M Co.
MMM 150117P00105000	Expiration: January 2015, Exercise Price: $105.00	1	$	56
MMM 160115P00095000	Expiration: January 2016, Exercise Price: $95.00	7		1,176
MMM 160115P00110000	Expiration: January 2016, Exercise Price: $110.00	1		338
	Baxter International Inc.
BAX 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	5		102
	Hasbro, Inc.
HAS 160115P00037500	Expiration: January 2016, Exercise Price: $37.50	2		305
HAS 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	12		2,640
HAS 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	7		2,100
	International Game Technology
IGT 150117P00010000	Expiration: January 2015, Exercise Price: $10.00	65		975
IGT 150117P00012000	Expiration: January 2015, Exercise Price: $12.00	57		2,423
	Intuitive Surgical, Inc.
ISRG 150117P00300000	Expiration: January 2015, Exercise Price: $300.00	1		560
ISRG 150117P00320000	Expiration: January 2015, Exercise Price: $320.00	1		875
	Stryker Corporation
SYK 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	12		270
SYK 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		115
SYK 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		325
				12,260
	Motion Picture and Sound Recording Industries
	DreamWorks Animation SKG, Inc. — Class A
DWA 140920P00019000	Expiration: September 2014, Exercise Price: $19.00	26		845
DWA 140920P00020000	Expiration: September 2014, Exercise Price: $20.00	23		1,092
DWA 140920P00023000	Expiration: September 2014, Exercise Price: $23.00	16		2,560
DWA 141220P00018000	Expiration: December 2014, Exercise Price: $18.00	55		2,888
DWA 141220P00020000	Expiration: December 2014, Exercise Price: $20.00	17		1,700
				9,085
	Motor Vehicle and Parts Dealers
	AutoNation, Inc.
AN 141018P00045000	Expiration: October 2014, Exercise Price: $45.00	7		140
	CarMax, Inc.
KMX 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	14		350
KMX 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	3		202
KMX 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	38		4,750
				5,442

The accompanying notes are an integral part of these financial statements.

155

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Nonmetallic Mineral Product Manufacturing
	USG Corporation
USG 141122P00020000	Expiration: November 2014, Exercise Price: $20.00	5	$	88
USG 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	20		600
USG 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	50		7,000
				7,688
	Non-Store Retailers
	Sotheby’s
BID 141018P00030000	Expiration: October 2014, Exercise Price: $30.00	5		137
BID 141018P00032000	Expiration: October 2014, Exercise Price: $32.00	4		160
BID 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	4		140
BID 150117P00029000	Expiration: January 2015, Exercise Price: $29.00	12		690
BID 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	10		700
BID 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	6		825
BID1 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	10		975
BID 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	16		3,400
BID1 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2		330
				7,357
	Oil and Gas Extraction
	Anadarko Petroleum Corporation
APC 150117P00067500	Expiration: January 2015, Exercise Price: $67.50	9		193
APC 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	5		205
APC 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	3		210
APC 160115P00072500	Expiration: January 2016, Exercise Price: $72.50	1		170
APC 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	1		229
	Apache Corporation
APA 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	7		679
APA 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	3		415
	Canadian Natural Resources Ltd.
CNQ 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	4		290
	Chesapeake Energy Corporation
CHK 150117P00018000	Expiration: January 2015, Exercise Price: $18.00	63		441
CHK 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	10		120
CHK 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	5		247
CHK 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	57		4,360

The accompanying notes are an integral part of these financial statements.

156

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Oil and Gas Extraction — (Continued)
	Continental Resources, Inc.
CLR 141220P00100000	Expiration: December 2014, Exercise Price: $100.00	1	$	52
CLR 150117P00075000	Expiration: January 2015, Exercise Price: $75.00	13		162
CLR 150117P00080000	Expiration: January 2015, Exercise Price: $80.00	13		195
CLR 150117P00090000	Expiration: January 2015, Exercise Price: $90.00	1		35
CLR 150117P00100000	Expiration: January 2015, Exercise Price: $100.00	1		68
CLR 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	1		153
CLR 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	3		540
CLR 160115P00110000	Expiration: January 2016, Exercise Price: $110.00	1		600
	Encana Corporation
ECA 150117P00013000	Expiration: January 2015, Exercise Price: $13.00	25		187
ECA 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	15		188
ECA 160115P00013000	Expiration: January 2016, Exercise Price: $13.00	14		350
	EOG Resources, Inc.
EOG 150117P00062500	Expiration: January 2015, Exercise Price: $62.50	6		156
EOG 150117P00075000	Expiration: January 2015, Exercise Price: $75.00	2		114
EOG 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		205
EOG 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	2		275
EOG 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	14		2,247
EOG 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	2		372
EOG 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	4		986
	Marathon Oil Corporation
MRO 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	19		1,036
	Occidental Petroleum Corporation
OXY 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	2		239
OXY 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	11		1,876
	Pioneer Natural Resources Company
PXD 141220P00150000	Expiration: December 2014, Exercise Price: $150.00	1		120
PXD 160115P00150000	Expiration: January 2016, Exercise Price: $150.00	1		750
PXD 160115P00160000	Expiration: January 2016, Exercise Price: $160.00	1		955
	Talisman Energy Inc.
TLM 150117P00008000	Expiration: January 2015, Exercise Price: $8.00	12		300
TLM 160115P00008000	Expiration: January 2016, Exercise Price: $8.00	132		9,570
				29,290
	Other Exchanges
	CBOE Holdings Inc.
CBOE 150117P00038750	Expiration: January 2015, Exercise Price: $38.75	30		2,475
CBOE 160115P00034500	Expiration: January 2016, Exercise Price: $34.50	10		1,350
CBOE 160115P00039500	Expiration: January 2016, Exercise Price: $39.50	2		525
				4,350

The accompanying notes are an integral part of these financial statements.

157

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Other Information Services
	Google Inc. — Class A/C
GOLG8 150117P00850000	Expiration: January 2015, Exercise Price: $850.00	1e	$	48
GOLG1 150117P00950000	Expiration: January 2015, Exercise Price: $950.00	1		1,200
GOLG1 160115P00830000	Expiration: January 2016, Exercise Price: $830.00	1		2,160
GOLG8 160115P00900000	Expiration: January 2016, Exercise Price: $900.00	1e		337
				3,745
	Paper Manufacturing
	Kimberly-Clark Corporation
KMB 150117P00082500	Expiration: January 2015, Exercise Price: $82.50	8		280
	Performing Arts, Spectator Sports, and Related Industries
	Live Nation Entertainment, Inc.
LYV 141018P00016000	Expiration: October 2014, Exercise Price: $16.00	9		112
LYV 150117P00012000	Expiration: January 2015, Exercise Price: $12.00	79		988
LYV 150117P00016000	Expiration: January 2015, Exercise Price: $16.00	9		158
LYV 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	10		250
LYV 160115P00013000	Expiration: January 2016, Exercise Price: $13.00	48		2,640
LYV 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	8		540
LYV 160115P00017000	Expiration: January 2016, Exercise Price: $17.00	10		1,075
				5,763
	Petroleum and Coal Products Manufacturing
	ConocoPhillips
COP 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	10		560
	Hess Corporation
HES 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	4		42
HES 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	2		24
HES 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	2		29
HES 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	4		258
HES 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	26		2,886
	Marathon Petroleum Corporation
MPC 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	1		185
MPC 150117P00067500	Expiration: January 2015, Exercise Price: $67.50	2		490
MPC 160115P00062500	Expiration: January 2016, Exercise Price: $62.50	2		960
MPC 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	2		1,140
MPC 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	1		660
MPC 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	1		780

The accompanying notes are an integral part of these financial statements.

158

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Petroleum and Coal Products Manufacturing — (Continued)
	Phillips 66
PSX 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	4	$	80
PSX 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	1		35
PSX 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	6		465
PSX 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	15		3,037
PSX 160115P00057500	Expiration: January 2016, Exercise Price: $57.50	4		970
PSX 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		625
PSX 160115P00062500	Expiration: January 2016, Exercise Price: $62.50	3		1,095
	Valero Energy Corporation
VLO 141220P00040000	Expiration: December 2014, Exercise Price: $40.00	6		558
VLO 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	8		352
VLO 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	8		904
VLO 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	4		642
VLO 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	32		6,320
VLO 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	6		1,689
VLO 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	3		1,028
				25,814
	Pharmaceutical and Biotechnology
	AbbVie Inc.
ABBV 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	12		210
ABBV 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	26		2,795
ABBV 160115P00037500	Expiration: January 2016, Exercise Price: $37.50	21		3,150
ABBV 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	5		925
	Allergan, Inc.
AGN 150117P00085000	Expiration: January 2015, Exercise Price: $85.00	1		67
AGN 150117P00092500	Expiration: January 2015, Exercise Price: $92.50	1		80
AGN 160115P00092500	Expiration: January 2016, Exercise Price: $92.50	1		150
	Amgen Inc.
AMGN 150117P00080000	Expiration: January 2015, Exercise Price: $80.00	1		46
AMGN 150117P00082500	Expiration: January 2015, Exercise Price: $82.50	3		166
AMGN 150117P00087500	Expiration: January 2015, Exercise Price: $87.50	4		318
AMGN 150117P00090000	Expiration: January 2015, Exercise Price: $90.00	2		194
AMGN 150117P00100000	Expiration: January 2015, Exercise Price: $100.00	5		1,030
AMGN 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	2		502
AMGN 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	9		2,993
AMGN 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	2		865

The accompanying notes are an integral part of these financial statements.

159

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Pharmaceutical and Biotechnology — (Continued)
	Biogen Idec, Inc.
BIIB 150117P00200000	Expiration: January 2015, Exercise Price: $200.00	1	$	225
BIIB 150117P00210000	Expiration: January 2015, Exercise Price: $210.00	1		287
BIIB 150117P00220000	Expiration: January 2015, Exercise Price: $220.00	1		375
BIIB 150117P00225000	Expiration: January 2015, Exercise Price: $225.00	1		425
BIIB 160115P00210000	Expiration: January 2016, Exercise Price: $210.00	1		1,220
	Bristol-Myers Squibb Company
BMY 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	4		72
BMY 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	12		354
BMY 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	10		610
BMY 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	3		300
BMY 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	18		2,304
BMY 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	10		2,470
	Eli Lilly & Company
LLY 150117P00043000	Expiration: January 2015, Exercise Price: $43.00	10		245
LLY 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	5		605
	Gilead Sciences, Inc.
GILD 141122P00055000	Expiration: November 2014, Exercise Price: $55.00	6		108
GILD 150117P00047500	Expiration: January 2015, Exercise Price: $47.50	2		45
GILD 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	4		102
GILD 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	14		735
GILD 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	1		72
GILD 150117P00062500	Expiration: January 2015, Exercise Price: $62.50	2		190
GILD 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	4		510
GILD 160115P00057500	Expiration: January 2016, Exercise Price: $57.50	2		506
GILD 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	2		605
	Merck & Co., Inc.
MRK 150117P00038000	Expiration: January 2015, Exercise Price: $38.00	6		102
MRK 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	7		374
MRK 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	8		612
MRK 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	5		883
	Pfizer, Inc.
PFE 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	50		525
PFE 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	23		1,691
				30,043

The accompanying notes are an integral part of these financial statements.

160

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Pipeline Transportation
	The Williams Companies, Inc.
WMB 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	5	$	22
WMB 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	21		368
WMB 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	8		256
WMB 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	52		1,872
				2,518
	Primary Metal Manufacturing
	Nucor Corporation
NUE 150117P00038000	Expiration: January 2015, Exercise Price: $38.00	20		830
	Professional, Scientific, and Technical Services
	Cerner Corporation
CERN 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	20		500
CERN 150117P00037500	Expiration: January 2015, Exercise Price: $37.50	18		765
CERN 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	8		500
CERN 150117P00042500	Expiration: January 2015, Exercise Price: $42.50	3		300
CERN 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	10		2,475
	Fluor Corporation
FLR 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	4		130
FLR 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	8		620
FLR 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	9		1,260
FLR 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	3		645
FLR 160115P00057500	Expiration: January 2016, Exercise Price: $57.50	2		540
FLR 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	9		2,925
	The Interpublic Group of Companies, Inc.
IPG 150117P00008000	Expiration: January 2015, Exercise Price: $8.00	50		625
	Leidos Holdings Inc.
LDOS1 150117P00007000	Expiration: January 2015, Exercise Price: $7.00	50		500
LDOS 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	6		1,080
LDOS 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	8		3,360
				16,225
	Publishing Industries (except Internet)
	Autodesk, Inc.
ADSK 141018P00036000	Expiration: October 2014, Exercise Price: $36.00	4		48
ADSK 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	8		288
ADSK 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	6		288
ADSK 150117P00039000	Expiration: January 2015, Exercise Price: $39.00	2		127
ADSK 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	4		296
ADSK 160115P00037000	Expiration: January 2016, Exercise Price: $37.00	4		766
ADSK 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	2		514

The accompanying notes are an integral part of these financial statements.

161

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Publishing Industries (except Internet) — (Continued)
	Electronic Arts Inc.
EA 141220P00021000	Expiration: December 2014, Exercise Price: $21.00	7	$	70
EA 141220P00026000	Expiration: December 2014, Exercise Price: $26.00	3		105
EA 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	5		27
EA 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	21		210
EA 150117P00026000	Expiration: January 2015, Exercise Price: $26.00	3		129
EA 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	12		294
EA 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	5		225
	Nuance Communications, Inc.
NUAN 150117P00010000	Expiration: January 2015, Exercise Price: $10.00	84		420
NUAN 160115P00010000	Expiration: January 2016, Exercise Price: $10.00	8		160
				3,967
	Rail Transportation
	CSX Corporation
CSX 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	10		125
CSX 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	15		750
	Norfolk Southern Corporation
NSC 150117P00067500	Expiration: January 2015, Exercise Price: $67.50	1		25
NSC 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	1		90
NSC 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	1		252
				1,242
	Real Estate
	General Growth Properties, Inc.
GGP 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	60		300
	Satellite Telecommunications
	DIRECTV
DTV 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	1		37
DTV 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	1		84
	DISH Network Corp. — Class A
DISH 141220P00045000	Expiration: December 2014, Exercise Price: $45.00	3		225
DISH 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	17		552
DISH 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	11		605
DISH 150117P00041000	Expiration: January 2015, Exercise Price: $41.00	20		1,100
DISH 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	2		185
DISH 150117P00046000	Expiration: January 2015, Exercise Price: $46.00	2		200
DISH 160115P00043000	Expiration: January 2016, Exercise Price: $43.00	3		705
DISH 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	5		1,363

The accompanying notes are an integral part of these financial statements.

162

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Satellite Telecommunications — (Continued)
	Liberty Global plc — Class A
LBTYA 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2	$	390
LBTY2 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	3		893
				6,339
	Securities, Commodity Contracts, and Other Financial
	Investments and Related Activities
	The Charles Schwab Corporation
SCHW 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	63		630
SCHW 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	4		50
SCHW 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	20		500
SCHW 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	20		1,350
SCHW 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	15		1,538
	CME Group Inc.
CME 150117P00042500	Expiration: January 2015, Exercise Price: $42.50	11		192
CME 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	7		157
CME 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	1		58
CME 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	2		150
CME 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	6		840
CME 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	4		930
CME 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	10		3,400
	Morgan Stanley
MS 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	9		468
MS 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	39		3,568
				13,831
	Software
	Adobe Systems, Inc.
ADBE 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	8		164
ADBE 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	12		1,524
ADBE 160115P00047000	Expiration: January 2016, Exercise Price: $47.00	9		1,359
ADBE 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	6		1,167
				4,214
	Software Publishers
	Citrix Systems, Inc.
CTXS 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	10		450
CTXS 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	6		600
CTXS 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2		165

The accompanying notes are an integral part of these financial statements.

163

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Software Publishers — (Continued)
	Microsoft Corporation
MSFT 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	25	$	162
MSFT 150117P00028000	Expiration: January 2015, Exercise Price: $28.00	9		108
MSFT 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	39		1,618
MSFT 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	13		891
MSFT 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	10		965
	Oracle Corporation
ORCL 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	13		150
ORCL 150117P00028000	Expiration: January 2015, Exercise Price: $28.00	27		486
ORCL 160115P00028000	Expiration: January 2016, Exercise Price: $28.00	8		692
ORCL 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	3		354
				6,641
	Support Activities for Mining
	Halliburton Company
HAL 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	8		36
HAL 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	10		425
HAL 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	22		1,287
HAL 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	6		462
HAL 160115P00043000	Expiration: January 2016, Exercise Price: $43.00	7		707
HAL 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	5		613
HAL 160115P00047000	Expiration: January 2016, Exercise Price: $47.00	2		298
HAL 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	5		975
	Helmerich & Payne, Inc.
HP 141220P00080000	Expiration: December 2014, Exercise Price: $80.00	1		55
HP 150117P00077500	Expiration: January 2015, Exercise Price: $77.50	2		115
HP 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	1		420
HP 160115P00082500	Expiration: January 2016, Exercise Price: $82.50	1		440
HP 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	1		475
	Schlumberger Limited
SLB 150117P00067500	Expiration: January 2015, Exercise Price: $67.50	1		15
SLB 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	9		707
SLB 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	12		1,260
SLB 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	1		249

The accompanying notes are an integral part of these financial statements.

164

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Support Activities for Mining — (Continued)
	Transocean Ltd.
RIG 141122P00031000	Expiration: November 2014, Exercise Price: $31.00	4	$	110
RIG 150117P00033000	Expiration: January 2015, Exercise Price: $33.00	33		1,402
RIG 150117P00038000	Expiration: January 2015, Exercise Price: $38.00	1		108
RIG 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	13		1,580
RIG 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	16		3,880
RIG 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	1		363
				15,982
	Support Activities for Transportation
	Expeditors International of Washington, Inc.
EXPD 150117P00032500	Expiration: January 2015, Exercise Price: $32.50	26		650
EXPD 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	30		2,325
EXPD 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	1		168
				3,143
	Telecommunications
	Verizon Communications Inc.
VZ 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	8		100
VZ 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	16		1,304
				1,404
	Transportation Equipment Manufacturing
	American Railcar Industries, Inc.
ARII 141220P00045000	Expiration: December 2014, Exercise Price: $45.00	4		310
ARII 141220P00050000	Expiration: December 2014, Exercise Price: $50.00	4		560
	The Boeing Company
BA 150117P00085000	Expiration: January 2015, Exercise Price: $85.00	4		148
BA 150117P00087500	Expiration: January 2015, Exercise Price: $87.50	1		41
BA 150117P00092500	Expiration: January 2015, Exercise Price: $92.50	2		123
BA 150117P00100000	Expiration: January 2015, Exercise Price: $100.00	3		310
BA 160115P00095000	Expiration: January 2016, Exercise Price: $95.00	1		370
BA 160115P00100000	Expiration: January 2016, Exercise Price: $100.00	13		6,078
BA 160115P00105000	Expiration: January 2016, Exercise Price: $105.00	2		1,200
	General Dynamics Corporation
GD 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	1		122
	Johnson Controls, Inc.
JCI 150117P00032000	Expiration: January 2015, Exercise Price: $32.00	2		35
JCI 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	2		65
JCI 160115P00033000	Expiration: January 2016, Exercise Price: $33.00	4		430
JCI 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	28		3,850
JCI 160115P00038000	Expiration: January 2016, Exercise Price: $38.00	2		395

The accompanying notes are an integral part of these financial statements.

165

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Transportation Equipment Manufacturing — (Continued)
	PACCAR Inc.
PCAR 150117P00040300	Expiration: January 2015, Exercise Price: $40.30	18	$	405
PCAR 150117P00043300	Expiration: January 2015, Exercise Price: $43.30	3		98
	Textron Inc.
TXT 141220P00030000	Expiration: December 2014, Exercise Price: $30.00	5		227
TXT 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	5		138
TXT 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	5		270
TXT 160115P00027000	Expiration: January 2016, Exercise Price: $27.00	12		1,578
	Toyota Motor Corporation — ADR
TM 150117P00085000	Expiration: January 2015, Exercise Price: $85.00	1		25
TM 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	6		1,335
TM 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	2		537
	Toyota Motor Credit Corp.
TM 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	1		157
	United Technologies Corporation
UTX 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	2		404
UTX 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	3		789
				20,000
	U.S. Equity Exchanges
	The NASDAQ OMX Group, Inc.
NDAQ 141220P00027000	Expiration: December 2014, Exercise Price: $27.00	5	$	75
NDAQ 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	9		1,508
				1,583
	Waste Management and Remediation Services
	Waste Management, Inc.
WM 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	2		200
	TOTAL PUT OPTIONS WRITTEN
	(premiums received $1,565,600)		$	684,115

d —	100 Shares Per Contract Unless Otherwise Noted.
e —	10 Shares Per Contract
ADR — American Depository Receipt.
ETF — Exchange Traded Fund

The accompanying notes are an integral part of these financial statements.

166

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier	PUT OPTIONS WRITTEN	Contractsd		Value
	Accommodation
	Carnival Corporation
CCL 150117P00032500	Expiration: January 2015, Exercise Price: $32.50	16	$	1,280
	Marriott International Inc. — Class A
MAR 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	16		120
MAR 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	76		5,320
MAR 160115P00042000	Expiration: January 2016, Exercise Price: $42.00	32		2,880
	Royal Caribbean Cruises Ltd.
RCL 150117P00028000	Expiration: January 2015, Exercise Price: $28.00	52		676
				10,276
	Administrative and Support Services
	Expedia, Inc.
EXPE 150117P00039480	Expiration: January 2015, Exercise Price: $39.48	9		90
EXPE 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	102		31,365
EXPE 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	12		5,220
				36,675
	Ambulatory Health Care Services
	DaVita HealthCare Partners Inc.
DVA 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	50		4,500

	Apparel Manufacturing
	L Brands, Inc.
LB 150117P00041000	Expiration: January 2015, Exercise Price: $41.00	41		1,333
	Asset Management
	Apollo Global Management LLC — Class A
APO 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	28		11,340
	BlackRock, Inc.
BLK 160115P00250000	Expiration: January 2016, Exercise Price: $250.00	25		33,625
	The Blackstone Group LP
BX 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	21		3,969
	Franklin Resources, Inc.
BEN 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	56		20,720
	KKR & Co. LP
KKR 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	68		1,020
	Oaktree Capital Group LLC
OAK 140719P00050000	Expiration: July 2014, Exercise Price: $50.00	8		700
OAK 140719P00055000	Expiration: July 2014, Exercise Price: $55.00	32		16,160
				87,534

The accompanying notes are an integral part of these financial statements.

167

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Beverage and Tobacco Product Manufacturing
	Molson Coors Brewing Company — Class B
TAP 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	50	$	375
	Broadcasting (except Internet)
	CBS Corporation — Class B
CBS 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	3		30
CBS 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	39		682
CBS 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	10		350
CBS 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	8		400
CBS 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	167		55,945
	Comcast Corporation — Class A
CMCSA 150117P00037000	Expiration: January 2015, Exercise Price: $37.00	16		280
	Sirius XM Holdings Inc.
SIRI 160115P00003000	Expiration: January 2016, Exercise Price: $3.00	336		9,408
SIRI 160115P00003500	Expiration: January 2016, Exercise Price: $3.50	192		10,080
	Twenty-First Century Fox, Inc. — Class A
FOXA 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	14		490
FOXA1 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	37		555
FOXA 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	14		3,115
				81,335
	Building Material and Garden Equipment and Supplies Dealers
	Fastenal Company
FAST 150117P00037500	Expiration: January 2015, Exercise Price: $37.50	6		285
FAST 150117P00042500	Expiration: January 2015, Exercise Price: $42.50	7		822
	The Sherwin-Williams Company
SHW 150117P00160000	Expiration: January 2015, Exercise Price: $160.00	5		713
				1,820
	Chemical Manufacturing
	Celgene Corporation
CELG 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	84		42,210
	Monsanto Company
MON 150117P00090000	Expiration: January 2015, Exercise Price: $90.00	6		264
	OPKO Health, Inc.
OPK 160115P00005000	Expiration: January 2016, Exercise Price: $5.00	168		12,180
				54,654

The accompanying notes are an integral part of these financial statements.

168

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Clothing and Clothing Accessories Stores
	Tiffany & Co.
TIF 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	4	$	82
TIF 150117P00062500	Expiration: January 2015, Exercise Price: $62.50	40		960
TIF 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	9		257
TIF 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	14		3,185
TIF 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	34		9,112
TIF 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	14		5,110
				18,706
	Computer and Electronic Product Manufacturing
	Apple, Inc.
AAPL 160115P00064290	Expiration: January 2016, Exercise Price: $64.29	77		15,207
AAPL 160115P00068570	Expiration: January 2016, Exercise Price: $68.57	84		24,192
AAPL 160115P00071430	Expiration: January 2016, Exercise Price: $71.43	14		5,005
	Hologic, Inc.
HOLX 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	45		4,275
	Sony Corporation
SNE 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	24		1,620
SNE 150117P00017000	Expiration: January 2015, Exercise Price: $17.00	180		27,450
SNE 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	240		37,200
				114,949
	Construction of Buildings
	Lennar Corporation — Class A
LEN 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	132		1,650
LEN 150117P00033000	Expiration: January 2015, Exercise Price: $33.00	16		1,056
LEN 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	56		3,976
LEN 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	73		11,279
				17,961
	Credit Intermediation and Related Activities
	Altisource Portfolio Solutions SA
ASPS 140719P00105000	Expiration: July 2014, Exercise Price: $105.00	36		7,560
	Bank of America Corporation
BAC 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	128		23,232
	The Bank Of New York Mellon Corporation
BK 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	6		117

The accompanying notes are an integral part of these financial statements.

169

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Credit Intermediation and Related Activities — (Continued)
	Ocwen Financial Corporation
OCN 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	16	$	15,520
OCN 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	14		17,780
OCN 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	36		58,860
	Wells Fargo & Company
WFC 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	16		2,000
				125,069
	E-Commerce
	IAC/InterActiveCorp
IACI 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	20		550
IACI 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	56		5,040
IACI 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	10		1,650
IACI 150117P00060000	Expiration: January 2015, Exercise Price: $60.00	18		5,040
	Liberty Interactive Corporation — Class A
LINTA 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	136		3,740
LINTA 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	122		7,930
				23,950
	Fabricated Metal Product Manufacturing
	McDermott International, Inc.
MDR 150117P00008000	Expiration: January 2015, Exercise Price: $8.00	600		52,500
MDR 150117P00010000	Expiration: January 2015, Exercise Price: $10.00	46		10,235
				62,735
	Food Services and Drinking Places
	Starbucks Corporation
SBUX 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	30		45
SBUX 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	2		14
SBUX 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	5		95
SBUX 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	9		239
SBUX 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	24		900
SBUX 160115P00067500	Expiration: January 2016, Exercise Price: $67.50	24		11,040
SBUX 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	28		15,400
				27,733
	Funds, Trusts, and Other Financial Vehicles
	iShares iBoxx $ High Yield Corporate Bond ETF
HYG 150117P00091000	Expiration: January 2015, Exercise Price: $91.00	57		10,972

The accompanying notes are an integral part of these financial statements.

170

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd	Value
	Funds, Trusts, and Other Financial Vehicles — (Continued)
	Market Vectors Gold Miners ETF
GDX 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	50	$ 1,325
	Market Vectors Junior Gold Miners ETF
GDXJ1 150117P00007000	Expiration: January 2015, Exercise Price: $7.00	50	875
	ProShares Short VIX Short-Term Futures ETF
SVXY 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	8	180
SVXY 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	4	260
	SPDR S&P 500 ETF Trust
SPY 141220P00140000	Expiration: December 2014, Exercise Price: $140.00	1	28
			13,640
	Gaming
	Las Vegas Sands Corp.
LVS 150117P00044250	Expiration: January 2015, Exercise Price: $44.25.	9	329
LVS 160115P00055000	Expiration: January 2016, Exercise Price: $55.00	62	20,925
LVS 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	26	12,415
	Wynn Resorts Limited
WYNN 150117P00117000	Expiration: January 2015, Exercise Price: $117.00	5	237
WYNN 160115P00135000	Expiration: January 2016, Exercise Price: $135.00	31	18,523
WYNN 160115P00140000	Expiration: January 2016, Exercise Price: $140.00	18	12,555
			64,984
	General Merchandise Stores
	Family Dollar Stores, Inc.
FDO 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	25	1,937
FDO 150117P00052500	Expiration: January 2015, Exercise Price: $52.50	9	1,013
	Sears Holdings Corporation
SHLD1 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	6	1,260
SHLD1 150117P00045000	Expiration: January 2015, Exercise Price: $45.00	65	36,725
SHLD1 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	92	77,050
SHLD 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	2	1,005
SHLD1 160115P00035000	Expiration: January 2016, Exercise Price: $35.00	13	7,117
SHLD1 160115P00060000	Expiration: January 2016, Exercise Price: $60.00	6	12,180
			138,287

The accompanying notes are an integral part of these financial statements.

171

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Holding Company
	Icahn Enterprises LP
IEP 140920P00090000	Expiration: September 2014, Exercise Price: $90.00	26	$	5,655
IEP 140920P00100000	Expiration: September 2014, Exercise Price: $100.00	35		21,700
IEP 141220P00090000	Expiration: December 2014, Exercise Price: $90.00	5		2,425
	Leucadia National Corporation
LUK2 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	286		50,765
LUK2 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	19		7,885
	Liberty Media Corporation — Class A
LMCA 140719P00135000	Expiration: July 2014, Exercise Price: $135.00	12		1,920
LMCA1 141018P00120000	Expiration: October 2014, Exercise Price: $120.00	38		6,270
				96,620
	Insurance Carriers and Related Activities
	American International Group, Inc.
AIG 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	102		26,673
	AmTrust Financial Services, Inc.
AFSI 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	76		23,180
AFSI 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	38		26,410
				76,263
	Leather and Allied Product Manufacturing
	Coach, Inc.
COH 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	124		117,180
	Lessors of Nonresidential Buildings
	(except Miniwarehouses)
	The Howard Hughes Corporation
HHC 140719P00100000	Expiration: July 2014, Exercise Price: $100.00	32		1,360
HHC 140719P00105000	Expiration: July 2014, Exercise Price: $105.00	9		405
HHC 140719P00110000	Expiration: July 2014, Exercise Price: $110.00	10		425
HHC 140719P00115000	Expiration: July 2014, Exercise Price: $115.00	1		42
				2,232
	Machinery Manufacturing
	National Oilwell Varco, Inc.
NOV1 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	45		1,238

The accompanying notes are an integral part of these financial statements.

172

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Media
	Starz — Class A
STRZA 140719P00025000	Expiration: July 2014, Exercise Price: $25.00	28	$	210
	Viacom Inc. — Class B
VIAB 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	32		640
VIAB 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	10		250
				1,100
	Merchant Wholesalers, Nondurable Goods
	Cardinal Health, Inc.
CAH 150117P00042000	Expiration: January 2015, Exercise Price: $42.00	7		105
	Mining (except Oil and Gas)
	Barrick Gold Corporation
ABX 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	124		5,394
ABX 160115P00013000	Expiration: January 2016, Exercise Price: $13.00	134		9,246
ABX 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	76		9,842
	Freeport-McMoRan Copper & Gold Inc.
FCX 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	2		18
FCX 150117P00024000	Expiration: January 2015, Exercise Price: $24.00	116		1,682
FCX 150117P00027000	Expiration: January 2015, Exercise Price: $27.00	52		1,456
FCX 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	4		938
FCX 160115P00032000	Expiration: January 2016, Exercise Price: $32.00	20		6,200
	Newmont Mining Corporation
NEM 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	60		10,890
	Rio Tinto plc — ADR
RIO 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	5		287
	Silver Wheaton Corporation
SLW 150117P00018000	Expiration: January 2015, Exercise Price: $18.00	16		312
SLW 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	106		4,346
SLW 160115P00018000	Expiration: January 2016, Exercise Price: $18.00	52		5,460
				56,071
	Miscellaneous Manufacturing
	Hasbro, Inc.
HAS 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	17		637
	International Game Technology
IGT 150117P00010000	Expiration: January 2015, Exercise Price: $10.00	20		300
				937

The accompanying notes are an integral part of these financial statements.

173

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Nonmetallic Mineral Product Manufacturing
	USG Corporation
USG 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	16	$	480
	Non-Store Retailers
	Sotheby’s
BID1 150117P00028000	Expiration: January 2015, Exercise Price: $28.00	17		510
	Oil and Gas Extraction
	Canadian Natural Resources Ltd.
CNQ 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	4		290
	Chesapeake Energy Corporation
CHK1 150117P00022000	Expiration: January 2015, Exercise Price: $22.00	16		384
CHK 150117P00025000	Expiration: January 2015, Exercise Price: $25.00	4		256
CHK1 160115P00020000	Expiration: January 2016, Exercise Price: $20.00	128		9,792
CHK1 160115P00023000	Expiration: January 2016, Exercise Price: $23.00	46		6,348
CHK1 160115P00025000	Expiration: January 2016, Exercise Price: $25.00	14		2,723
	Continental Resources, Inc.
CLR 150117P00055000	Expiration: January 2015, Exercise Price: $55.00	1		7
CLR 150117P00070000	Expiration: January 2015, Exercise Price: $70.00	23		230
CLR 150117P00085000	Expiration: January 2015, Exercise Price: $85.00	19		428
CLR 150117P00090000	Expiration: January 2015, Exercise Price: $90.00	10		350
CLR 150117P00095000	Expiration: January 2015, Exercise Price: $95.00	12		600
CLR 160115P00080000	Expiration: January 2016, Exercise Price: $80.00	14		2,520
CLR 160115P00090000	Expiration: January 2016, Exercise Price: $90.00	7		2,030
CLR 160115P00100000	Expiration: January 2016, Exercise Price: $100.00	36		14,040
	Talisman Energy Inc.
TLM 150117P00010000	Expiration: January 2015, Exercise Price: $10.00	8		680
TLM 160115P00010000	Expiration: January 2016, Exercise Price: $10.00	116		18,270
				58,948
	Other Exchanges
	CBOE Holdings Inc.
CBOE 150117P00043750	Expiration: January 2015, Exercise Price: $43.75	34		5,695
CBOE 160115P00044500	Expiration: January 2016, Exercise Price: $44.50	50		22,000
				27,695

The accompanying notes are an integral part of these financial statements.

174

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Other Information Services
	Google Inc. — Class A/C
GOLG1 150117P00800000	Expiration: January 2015, Exercise Price: $800.00	1	$	350
GOLG1 160115P00950000	Expiration: January 2016, Exercise Price: $950.00	7		31,640
				31,990
	Performing Arts, Spectator Sports, and
	Related Industries
	Live Nation Entertainment, Inc.
LYV 150117P00012000	Expiration: January 2015, Exercise Price: $12.00	102		1,275
LYV 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	242		3,630
LYV 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	180		12,150
LYV 160115P00017000	Expiration: January 2016, Exercise Price: $17.00	112		12,040
				29,095
	Pharmaceutical and Biotechnology
	AbbVie Inc.
ABBV 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	76		14,060
	Amgen Inc.
AMGN 160115P00085000	Expiration: January 2016, Exercise Price: $85.00	76		25,270
	Gilead Sciences, Inc.
GILD 160115P00050000	Expiration: January 2016, Exercise Price: $50.00	76		9,690
				49,020
	Pipeline Transportation
	The Williams Companies, Inc.
WMB 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	7		32
WMB 160115P00030000	Expiration: January 2016, Exercise Price: $30.00	144		5,184
				5,216
	Professional, Scientific, and Technical Services
	Iron Mountain Inc.
IRM 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	13		943
	Verisign Inc.
VRSN 150117P00050000	Expiration: January 2015, Exercise Price: $50.00	62		24,335
				25,278

The accompanying notes are an integral part of these financial statements.

175

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Publishing Industries (except Internet)
	Nuance Communications, Inc.
NUAN 160115P00013000	Expiration: January 2016, Exercise Price: $13.00	210	$	13,650
NUAN 160115P00015000	Expiration: January 2016, Exercise Price: $15.00	8		940
				14,590
	Rail Transportation
	Norfolk Southern Corporation
NSC 150117P00065000	Expiration: January 2015, Exercise Price: $65.00	7		140
	Real Estate
	General Growth Properties, Inc.
GGP 150117P00020000	Expiration: January 2015, Exercise Price: $20.00	18		585
	TRI Pointe Homes, Inc.
TPH 140719P00015000	Expiration: July 2014, Exercise Price: $15.00	1		37
TPH 150117P00014000	Expiration: January 2015, Exercise Price: $14.00	54		5,805
TPH 150117P00015000	Expiration: January 2015, Exercise Price: $15.00	36		5,580
				12,007
	Restaurants
	The Wendy’s Company
WEN 150117P00007000	Expiration: January 2015, Exercise Price: $7.00	232		5,800
WEN 160115P00007000	Expiration: January 2016, Exercise Price: $7.00	1,080		72,900
				78,700
	Satellite Telecommunications
	DISH Network Corp. — Class A
DISH 150117P00030000	Expiration: January 2015, Exercise Price: $30.00	26		455
DISH 150117P00032000	Expiration: January 2015, Exercise Price: $32.00	4		100
DISH 150117P00036000	Expiration: January 2015, Exercise Price: $36.00	12		330
DISH 150117P00040000	Expiration: January 2015, Exercise Price: $40.00	78		4,290
DISH 160115P00045000	Expiration: January 2016, Exercise Price: $45.00	2		545
DISH 160115P00047000	Expiration: January 2016, Exercise Price: $47.00	48		15,360
	Liberty Global plc — Class A
LBTY2 160115P00075000	Expiration: January 2016, Exercise Price: $75.00	6		3,990
				25,070

The accompanying notes are an integral part of these financial statements.

176

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The Multi-Disciplinary Portfolio

Portfolio of Options Written — June 30, 2014 (Unaudited) — (Continued)

Identifier		Contractsd		Value
	Securities, Commodity Contracts, and Other
	Financial Investments and Related Activities
	CME Group Inc.
CME 150117P00047500	Expiration: January 2015, Exercise Price: $47.50	25	$	750
CME 150117P00057500	Expiration: January 2015, Exercise Price: $57.50	2		200
CME 160115P00065000	Expiration: January 2016, Exercise Price: $65.00	10		7,200
CME 160115P00070000	Expiration: January 2016, Exercise Price: $70.00	32		31,680
				39,830
	Support Activities for Mining
	Transocean Ltd.
RIG 160115P00040000	Expiration: January 2016, Exercise Price: $40.00	120		53,700
	Support Activities for Transportation
	Expeditors International of Washington, Inc.
EXPD 150117P00035000	Expiration: January 2015, Exercise Price: $35.00	30		1,200
	Transportation Equipment Manufacturing
	American Railcar Industries, Inc.
ARII 140920P00040000	Expiration: September 2014, Exercise Price: $40.00	4		40
ARII 141220P00050000	Expiration: December 2014, Exercise Price: $50.00	42		5,880
				5,920
	TOTAL PUT OPTIONS WRITTEN
	(premiums received $3,340,899)		$	1,697,651


d —	100 Shares Per Contract unless otherwise noted.

ADR — American Depository Receipt.

ETF — Exchange Traded Fund.

The accompanying notes are an integral part of these financial statements.

177

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Statements of Assets & Liabilities

June 30, 2014 (Unaudited)

	The Internet Portfolio		The Global Portfolio
ASSETS:
Investments, at value (1)(2)	$	189,308,113	$	11,533,224
Foreign currencies, at value (3)		—		1,891
Cash		—		614
Receivable for contributed capital		32,052		25,392
Receivable for investments sold		—		42,390
Dividends and interest receivable		66,993		5,559
Other accounts receivable		99,877		—
Prepaid expenses and other assets		7,232		3,336
Total Assets		189,514,267		11,612,406
LIABILITIES:
Payable to Adviser		170,992		11,589
Payable to Trustees and Officers		3,161		207
Payable for collateral received for securities loaned		21,133,565		714,121
Payable for withdrawn capital		130,756		—
Accrued expenses and other liabilities		26,766		11,346
Total Liabilities		21,465,240		737,263
Net Assets	$	168,049,027	$	10,875,143
(1) Cost of investments	$	104,467,035	$	8,651,163
(2) Includes loaned securities with a market value of	$	20,765,137	$	699,502
(3) Cost of foreign currencies	$	—	$	1,891

The accompanying notes are an integral part of these financial statements.

178

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Statements of Assets & Liabilities — (Continued)

June 30, 2014 (Unaudited)

	The Paradigm Portfolio		The Medical Portfolio
ASSETS:
Investments, at value (1)(2)	$	1,429,635,697	$	32,135,005
Foreign currencies, at value (3)		5,483		—
Cash		214,005		3,813
Receivable for contributed capital		1,295,433		69,419
Receivable for investments sold		257,541		—
Dividends and interest receivable		292,995		28,543
Prepaid expenses and other assets		171,708		4,046
Total Assets		1,431,872,862		32,240,826
LIABILITIES:
Payable to Adviser		1,370,867		27,149
Payable to Trustees and Officers		23,805		471
Payable for securities purchased		422,220		—
Payable for collateral received for securities loaned		74,540,645		5,313,927
Payable for withdrawn capital		1,058,614		20,838
Accrued expenses and other liabilities		163,691		10,605
Total Liabilities		77,579,842		5,372,990
Net Assets	$	1,354,293,020	$	26,867,836
(1) Cost of investments	$	924,237,772	$	22,537,677
(2) Includes loaned securities with a market value of	$	73,703,910	$	5,028,621
(3) Cost of foreign currencies	$	5,483	$	—

The accompanying notes are an integral part of these financial statements.

179

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Statements of Assets & Liabilities — (Continued)

June 30, 2014 (Unaudited)

	The Small Cap Opportunities Portfolio		The Market Opportunities Portfolio
ASSETS:
Investments, at value (1)(2)	$	472,924,234	$	69,292,146
Cash		—		75,586
Receivable for contributed capital		2,930,127		791
Receivable for investments sold		—		143,253
Dividends and interest receivable		180,809		16,735
Other accounts receivable		20,977		—
Prepaid expenses and other assets		51,196		5,610
Total Assets		476,107,343		69,534,121
LIABILITIES:
Payable to Adviser		430,149		65,351
Payable to Trustees and Officers		7,032		1,199
Payable for securities purchased		10,493		232,339
Payable for collateral received for securities loaned		48,702,392		5,564,976
Payable for withdrawn capital		971,288		108,037
Accrued expenses and other liabilities		53,992		18,591
Total Liabilities		50,175,346		5,990,493
Net Assets	$	425,931,997	$	63,543,628
(1) Cost of investments	$	381,157,581	$	52,369,667
(2) Includes loaned securities with a market value of	$	47,293,574	$	5,474,060

The accompanying notes are an integral part of these financial statements.

180

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Statements of Assets & Liabilities — (Continued)

June 30, 2014 (Unaudited)

	The Alternative Income Portfolio		The Multi- Disciplinary Portfolio
ASSETS:
Investments, at value (1)(2)	$	30,626,174	$	139,712,880
Cash		118,886		441,093
Receivable for contributed capital		757		615,183
Receivable for investments sold		—		5,008
Dividends and interest receivable		84,684		1,128,451
Prepaid expenses and other assets		1,167		5,654
Total Assets		30,831,668		141,908,269
LIABILITIES:
Written options, at value (3)		684,115		1,697,651
Payable to Adviser		21,823		112,404
Payable to Trustees and Officers		489		1,880
Payable for securities purchased		56,237		2,030,955
Payable for collateral received for securities loaned		—		25,078,937
Payable for withdrawn capital		106,618		65,412
Accrued expenses and other liabilities		18,362		24,942
Total Liabilities		887,644		29,012,181
Net Assets	$	29,944,024	$	112,896,088
(1) Cost of investments	$	30,573,645	$	137,449,056
(2) Includes loaned securities with a market value of	$	—	$	24,410,710
(3) Premiums received	$	1,565,600	$	3,340,899

The accompanying notes are an integral part of these financial statements.

181

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Statements of Operations

For the Six Months Ended June 30, 2014 (Unaudited)

	The Internet Portfolio			The Global Portfolio
INVESTMENT INCOME:
Dividends†	$	379,750		$	37,532
Interest		576			58
Income from securities lending		15,170			22,983
Total investment income		395,496			60,573
EXPENSES:
Investment advisory fees		1,058,487			71,967
Administration fees		36,819			2,933
Professional fees		8,613			4,243
Fund accounting fees		13,483			3,182
Trustees’ and Officers’ fees and expenses		3,832			314
Custodian fees and expenses		277			6,377
Other expenses		4,427			231
Total expenses		1,125,938			89,247
Net investment loss		(730,442	)		(28,674	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on:
Investments and foreign currency		2,584,505			257,030
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		(6,032,141	)		71,420
Net realized and unrealized gain (loss) on investments		(3,447,636	)		328,450
Net increase (decrease) in net assets resulting from operations	$	(4,178,078	)	$	299,776
† Net of foreign taxes withheld of:	$	1,409		$	2,126

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, 2014 (Unaudited)

	The Paradigm Portfolio			The Medical Portfolio
INVESTMENT INCOME:
Dividends†	$	3,222,334		$	279,538
Interest		7,466			148
Income from securities lending		794,463			31,728
Total investment income		4,024,263			311,414
EXPENSES:
Investment advisory fees		8,173,674			164,582
Administration fees		281,329			5,687
Professional fees		42,615			4,658
Fund accounting fees		98,830			2,871
Trustees’ and Officers’ fees and expenses		34,952			692
Custodian fees and expenses		62,698			7,172
Other expenses		27,818			533
Total expenses		8,721,916			186,195
Net investment income (loss)		(4,697,653	)		125,219
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments and foreign currency		8,885,297			124,901
Net change in unrealized appreciation of:
Investments and foreign currency		58,393,408			2,081,524
Net realized and unrealized gain on investments		67,278,705			2,206,425
Net increase in net assets resulting from operations	$	62,581,052		$	2,331,644
† Net of foreign taxes withheld of:	$	125,257		$	24,610

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, 2014 (Unaudited)

	The Small Cap Opportunities Portfolio			The Market Opportunities Portfolio
INVESTMENT INCOME:
Dividends†	$	1,146,097		$	399,746
Interest		1,931			461
Income from securities lending		242,415			34,234
Total investment income		1,390,443			434,441
EXPENSES:
Investment advisory fees		2,506,653			409,237
Administration fees		85,439			14,166
Professional fees		16,516			5,804
Fund accounting fees		31,709			6,636
Trustees’ and Officers’ fees and expenses		14,204			1,691
Custodian fees and expenses		20,329			13,159
Other expenses		4,295			1,398
Total expenses		2,679,145			452,091
Net investment loss		(1,288,702	)		(17,650	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on:
Investments and foreign currency		10,608,921			3,364,667
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		7,798,558			(3,037,348	)
Net realized and unrealized gain on investments		18,407,479			327,319
Net increase in net assets resulting from operations	$	17,118,777		$	309,669
† Net of foreign taxes withheld of:	$	13,168		$	14,449

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, 2014 (Unaudited)

	The Alternative Income Portfolio			The Multi- Disciplinary Portfolio
INVESTMENT INCOME:
Dividends	$	21,223		$	244,111
Interest		78,001			1,580,137
Income from securities lending		4,052			13,289
Total investment income		103,276			1,837,537
EXPENSES:
Investment advisory fees		122,810			640,659
Administration fees		5,775			23,967
Professional fees		4,726			6,824
Fund accounting fees.		27,967			17,748
Trustees’ and Officers’ fees and expenses		794			2,422
Custodian fees and expenses		3,594			9,960
Other expenses		412			2,036
Total expenses		166,078			703,616
Net investment income (loss)		(62,802	)		1,133,921
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments and foreign currency		(45,843	)		(2,104,887	)
Written option contracts expired or closed		393,726			2,683,126
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		109,699			4,988,596
Written option contracts		274,957			(1,688,291	)
Net realized and unrealized gain on investments		732,539			3,878,544
Net increase in net assets resulting from operations	$	669,737		$	5,012,465

The accompanying notes are an integral part of these financial statements.

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Statements of Changes in Net Assets

	The Internet Portfolio						The Global Portfolio
	For the			For the			For the			For the
	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment loss	$	(730,442	)	$	(1,454,560	)	$	(28,674	)	$	(11,316	)
Net realized gain on sale of
investments, foreign
currency and distributions
received from other investment
companies		2,584,505			11,541,829			257,030			66,987
Net change in unrealized
appreciation (depreciation)
of investments and foreign
currency		(6,032,141	)		52,885,945			71,420			2,171,749
Net increase (decrease) in net
assets resulting from
operations		(4,178,078	)		62,973,214			299,776			2,227,420
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
BENEFICIAL INTEREST
TRANSACTIONS:
Contributions		4,027,962			12,808,479			983,354			4,489,494
Withdrawals		(10,659,901	)		(53,634,097	)		(2,625,102	)		(1,037,208	)
Net increase (decrease) in net assets
resulting from beneficial
interest transactions		(6,631,939	)		(40,825,618	)		(1,641,748	)		3,452,286
Total increase (decrease) in
net assets		(10,810,017	)		22,147,596			(1,341,972	)		5,679,706
NET ASSETS:
Beginning of period		178,859,044			156,711,448			12,217,115			6,537,409
End of period	$	168,049,027		$	178,859,044		$	10,875,143		$	12,217,115

The accompanying notes are an integral part of these financial statements.

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Statements of Changes in Net Assets — (Continued)

	The Paradigm Portfolio						The Medical Portfolio
	For the			For the			For the			For the
	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment income (loss)	$	(4,697,653	)	$	(2,519,178	)	$	125,219		$	(4,268	)
Net realized gain (loss) on sale of
investments and foreign
currency		8,885,297			992,713			124,901			(341,050	)
Net change in unrealized
appreciation of investments and
foreign currency		58,393,408			400,868,795			2,081,524			8,692,907
Net increase in net assets resulting
from operations		62,581,052			399,342,330			2,331,644			8,347,589
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
BENEFICIAL INTEREST
TRANSACTIONS:
Contributions		36,448,798			130,575,410			1,923,992			5,013,915
Withdrawals		(72,480,427	)		(85,425,092	)		(2,177,138	)		(5,881,082	)
Net increase (decrease) in net
assets resulting from beneficial
interest transactions		(36,031,629	)		45,150,318			(253,146	)		(867,167	)
Total increase in net assets		26,549,423			444,492,648			2,078,498			7,480,422
NET ASSETS:
Beginning of period		1,327,743,597			883,250,949			24,789,338			17,308,916
End of period	$	1,354,293,020		$	1,327,743,597		$	26,867,836		$	24,789,338

The accompanying notes are an integral part of these financial statements.

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Statements of Changes in Net Assets — (Continued)

	The Small Cap						The Market
	Opportunities Portfolio						Opportunities Portfolio
	For the			For the			For the			For the
	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment income (loss)	$	(1,288,702	)	$	23,416		$	(17,650	)	$	156,009
Net realized gain on sale of
investments, foreign currency and
distributions received from other
investment companies		10,608,921			912,482			3,364,667			4,587,167
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		7,798,558			74,243,893			(3,037,348	)		16,103,917
Net increase in net assets
resulting from operations		17,118,777			75,179,791			309,669			20,847,093
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
BENEFICIAL INTEREST
TRANSACTIONS:
Contributions		113,727,092			200,357,556			6,839,345			28,774,153
Withdrawals		(52,912,107	)		(9,127,095	)		(10,166,699	)		(26,698,470	)
Net increase (decrease) in net assets
resulting from beneficial
interest transactions		60,814,985			191,230,461			(3,327,354	)		2,075,683
Total increase (decrease) in net assets		77,933,762			266,410,252			(3,017,685	)		22,922,776
NET ASSETS:
Beginning of period		347,998,235			81,587,983			66,561,313			43,638,537
End of period	$	425,931,997		$	347,998,235		$	63,543,628		$	66,561,313

The accompanying notes are an integral part of these financial statements.

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Statements of Changes in Net Assets — (Continued)

	The Alternative Income Portfolio						The Multi- Disciplinary Portfolio
	For the			For the			For the			For the
	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2014			December 31,			June 30, 2014			December 31,
	(Unaudited)			2013			(Unaudited)			2013
OPERATIONS:
Net investment income (loss)	$	(62,802	)	$	(93,420	)	$	1,133,921		$	1,621,053
Net realized gain on sale of
investments, foreign currency,
written options, securities sold
short and distributions received
from other investment companies		347,883			332,007			578,239			2,381,562
Net change in unrealized appreciation
(depreciation) of investments,
foreign currency, written
options and securities sold short		384,656			599,148			3,300,305			(743,581	)
Net increase in net assets
resulting from operations		669,737			837,735			5,012,465			3,259,034
NET INCREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTEREST TRANSACTIONS:
Contributions		8,147,887			15,277,302			37,870,944			49,389,741
Withdrawals		(2,426,631	)		(3,357,344	)		(20,298,829	)		(21,888,150	)
Net increase in net assets
resulting from beneficial
interest transactions		5,721,256			11,919,958			17,572,115			27,501,591
Total increase in net assets		6,390,993			12,757,693			22,584,580			30,760,625
NET ASSETS:
Beginning of period		23,553,031			10,795,338			90,311,508			59,550,883
End of period	$	29,944,024		$	23,553,031		$	112,896,088		$	90,311,508

The accompanying notes are an integral part of these financial statements.

189

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Notes to Financial Statements

June 30, 2014 (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 Alternative Income Portfolio and The Multi-Disciplinary Portfolio (collectively, the “Master Portfolios”). Pursuant to the 1940 Act, the Master Portfolios, are “non-diversified” series of the Trust, except The Global Portfolio and The Multi-Disciplinary Portfolio. The Market Opportunities Portfolio commenced operations on January 31, 2006, The Alternative Income Portfolio commenced operations on June 29, 2007 and The Multi-Disciplinary Portfolio commenced operations on February 11, 2008. Each of the remaining Master Portfolios commenced operations on April 28, 2000.

Each Master Portfolio is a Master Investment Portfolio in a master-feeder fund structure. Each Master Portfolio has multiple feeder funds invested in the Master Portfolio. By contributing assets to the Master Portfolio, the feeder funds receive a beneficial interest in the Master Portfolio. The Master Portfolio then invests the contributed assets in portfolio securities and allocates income, gains (losses) and expenses to the feeder funds based on the feeder funds’ proportionate interests in the Master Portfolio.

Each of the Master Portfolios, except for The Alternative Income Portfolio and The Multi-Disciplinary Portfolio, seeks to provide investors with long-term capital growth. The Alternative Income Portfolio seeks to provide current income and gains. The Multi-Disciplinary Portfolio seeks to provide investors with total return. The Internet Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in the Internet and Internet-related activities. The Global Portfolio generally invests in the equity securities of foreign companies that have the ability to facilitate an increase in the growth of their traditional business lines and in U.S. companies benefiting from international economic growth. The Paradigm Portfolio invests primarily in the equity securities of U.S. and foreign companies that the investment adviser believes are undervalued and that have high returns on equity and are well positioned to reduce their costs, extend the reach of their distribution channels and experience significant growth in their assets or revenues. The Medical

190

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in medical research, pharmaceutical treatments and related medical technology industries and related technology industries, generally, with a focus on companies engaged in cancer research and drug development. The Small Cap Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign small capitalized companies that provide attractive valuation opportunities due to special situations such as lack of institutional ownership, lack of significant analyst coverage or companies with sound fundamentals that have experienced a short-term earnings shortfall. The Market Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in capital markets or related to capital markets, as well as companies involved in the gaming industry. The Alternative Income and Multi-Disciplinary Portfolios utilizes a two-part investment strategy, which includes fixed income and derivatives components.

2. Significant Accounting Policies

Security Valuation

Master Portfolio securities that are listed on a U.S. securities exchange for which market quotations are readily available are valued at the last quoted sale price on the day the valuation is made. Price information on listed securities is taken from the exchange where the security is primarily traded. All equity securities that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). Foreign securities are valued by an independent pricing service. In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes (“NBBO”). NBBO consists of the highest bid price and lowest ask price across any of the exchanges on which an option is quoted thus providing a view across the entire U.S. options marketplace. Composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. If the composite option price is not available, the mean between the highest bid and the lowest asked quotations at the close of the exchanges will be used. If none of the above are available, exchange traded options are valued at the last

191

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

quoted sales price. Non-exchange traded options for which over-the-counter quotations are not readily available are valued at the mean of the current bid and asked prices. Fixed-income securities (other than obligations having a maturity of 60 days or less) are normally valued on the basis of quotes obtained from pricing services, which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data.

Investment grade fixed-income securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates fair value. Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Advisor or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Advisor; (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At June 30, 2014, 0.00%, 0.00% and 0.00% of the net assets of The Internet Portfolio, The Paradigm Portfolio and The Market Opportunities Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at June 30, 2014.

Repurchase Agreements

Each Master Portfolio may enter into repurchase agreements with banks that are members of the Federal Reserve System or securities dealers who are members of a national securities exchange or are primary dealers in U.S. Government Securities. In connection with transactions in repurchase agreements, it is the Trust’s policy that the Master Portfolio receive, as collateral, securities whose market value, including accrued interest, at all times will be at least equal to 102% of the amount invested by the Master Portfolio in each repurchase agreement. If the seller defaults, and the value of the collateral declines, realization of the collateral by the Master Portfolio may be delayed or limited.

192

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

Written Options

The Master Portfolios may write (sell) call or put options for trading or hedging purposes. When a Master Portfolio writes an option, an amount equal to the premium received by the Master Portfolio is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written. By writing the option, the Master Portfolio may become obligated during the term of the option to deliver or purchase the securities underlying the option at the exercise price if the option is exercised. When an option expires on its stipulated expiration date or the Master Portfolio enters into a closing purchase transaction, the Master Portfolio realizes a gain or loss if the cost of the closing transaction differs from the premium received when the option was sold, without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the underlying security (or increases the proceeds on the security sold short) and the Master Portfolio realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, the Master Portfolio is required under the 1940 Act to maintain assets consisting of cash, cash equivalents or liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for put options or the market value of the instrument underlying the contract for call options.

Foreign Currency Translations

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

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, 2014 the following Master Portfolios held securities restricted to institutional investors (144A Securities):

			Percentage of
	Market Value		Net Assets
The Alternative Income Portfolio	$	658,595		2.20	%
The Multi-Disciplinary Portfolio		17,578,917		15.57	%

				Percentage of
	Market Value			Net Assets
The Internet Portfolio	$	—	*		0.00	%
The Paradigm Portfolio		—	*		0.00	%
The Market Opportunities Portfolio		—	*		0.00	%
The Multi-Disciplinary Portfolio		525,000			0.47	%

* Amount is less than $0.50.

When-Issued Securities

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

Securities Lending

Each Master Portfolio may lend its portfolio securities to broker-dealers by entering directly into lending arrangements with such broker dealers or indirectly through repurchase agreements with respect to no more than 331/3% of the total assets of each Master Portfolio (including any collateral posted) or 50% of the total assets of each Master Portfolio (excluding any collateral posted). Securities lending and repurchase transactions will be fully collateralized at all times with cash and/or short-term debt obligations. The Master Portfolios receive interest on the collateral received as well as a fee for the securities loaned.

Short-Term Investments

The Portfolios may invest in money market funds and short-term high quality debt securities such as commercial paper, repurchase agreements and certificates of deposit. Money market funds typically invest in short-term instruments and attempt to maintain a stable net asset value. While the risk is low, these funds may lose value. At June 30, 2014, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio and The Multi-Disciplinary Portfolio invested approximately 13%, 7%, 6%, 20%, 11%, 9% and 22%, respectively, of net assets in the Mount Vernon Securities Lending Trust-Prime Portfolio which normally invests in short-term instruments with an objective of maximizing current income to the extent consistent with the preservation of capital and liquidity. Mount Vernon Securities Lending Trust-Prime Portfolio’s financial statements are available on the SEC website www.sec.gov.

Expense Allocation

Common expenses incurred by the Master Portfolios are allocated among the Master Portfolios (i) based upon relative average net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the Master Portfolios, depending on the nature of the expenditure. All expenses incurred by the Master Portfolios are allocated to the feeder funds daily based on their proportionate interests in the respective Master Portfolios.

Federal Income Taxes

Each Master Portfolio will be treated as a partnership for federal income tax purposes. As such, each investor in a Master Portfolio will be subject to taxation on its share of the Master Portfolio’s ordinary income and capital gains. It is intended that each Master Portfolio’s assets will be managed so an investor in

195

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

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, 2014, open tax years include the tax years ended December 31, 2010 through 2013. The Master Portfolios are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.

Use of Estimates

Other

Realized gains and losses on the sale of investments are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income is accounted for on the accrual basis and includes amortization of premiums and discounts on the interest method. Other noncash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.

3. Investment Adviser

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KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

For the six months ended June 30, 2014, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio, The Alternative Income Portfolio and The Multi-Disciplinary Portfolio incurred expenses of $1,058,487, $71,967, $8,173,674, $164,582, $2,506,653, $409,237, $122,810 and $640,659, respectively, pursuant to the Agreements.

For the six months ended June 30, 2014, the Trust was allocated $13,000 for the services of the Chief Compliance Officer employed by the Adviser.

4. Approval of Investment Advisory Contracts by Trustees of Kinetics Portfolios Trust

At a meeting of the Board of Trustees of the Trust held on March 14, 2014, the Board, including all of the Trustees who are not interested persons under the 1940 Act (the “Independent Trustees”), approved the Advisory Agreements with respect to each Master Portfolio. In reaching a decision to renew the Advisory Agreements, the Board of Trustees, including all of the Independent Trustees, considered, among others (1) the nature, extent, and quality of the services to be provided by the Adviser, including, but not limited to, a review of the complexity of the services provided, whether the services are provided in a satisfactory and efficient manner; (2) the experience and qualifications of the personnel providing such services; (3) the investment performance of the Trust and the Adviser as compared with industry competitors; (4) an evaluation of the fee structure, any fee waivers, and the Trust’s expense ratios, and a comparison of them in relation to those of other investment companies having comparable investment policies and limitations; (5) possible alternative fee structures or bases for determining fees; (6) the extent to which economies of scale would be realized as the Trust grows and whether fee levels reflect these economies of scale for the benefit of the Trust’s investors; (7) the direct and indirect costs of the services to be provided (and the basis of determining and allocating these costs) and profits to be realized by the Adviser and its affiliates from their relationship with the Trust; (8) other compensation or possible benefits to the Adviser and its affiliates arising from their advisory and other relationships with the Trust, including, if applicable, any benefits derived or to be derived by the Adviser from its relationship with the Trust such as soft dollar arrangements by which brokers provide research to the Trust or the Adviser in return for allocating the Trust’s brokerage; (9) the entrepreneurial risks borne by the Adviser, if any (e.g., because a fund is in a start-up mode or for other reasons, its revenues may be less or its expenses greater than anticipated); and (10) a

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comparison of the fees charged by the Adviser with fees charged by the Adviser to similar clients;

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.

5. Securities Transactions

Purchases and sales of investment securities, other than short-term investments, for the six months ended June 30, 2014 were as follows:

	Purchases				Sales
	U.S.				U.S.
	Government		Other		Government		Other
The Internet Portfolio	$	—	$	446,581	$	—	$	4,794,301
The Global Portfolio		—		1,343,524		—		2,252,732
The Paradigm Portfolio		—		66,810,193		—		81,032,730
The Medical Portfolio		—		710,421		—		1,056,720
The Small Cap Opportunities Portfolio		—		107,432,449		—		35,834,749
The Market Opportunities Portfolio		—		8,566,319		—		7,920,783
The Alternative Income Portfolio		698,313		9,792,552		—		2,041,024
The Multi-Disciplinary Portfolio		—		63,853,176		—		17,546,348

As of December 31, 2013, the cost of investments and unrealized appreciation (depreciation) on investment securities for federal income tax purposes was as follows:

	Internet			Global			Paradigm			Medical
Tax cost of Investments		117,409,807			13,048,074			1,104,043,145			19,467,492
Unrealized Appreciation		91,055,545			3,054,298			484,181,004			9,603,989
Unrealized Depreciation		(219,383	)		(302,799	)		(60,535,275	)		(2,154,995	)
Net unrealized appreciation (depreciation)		90,836,162			2,751,499			423,645,729			7,448,994

				Market			Alternative			Multi-
	Small Cap			Opportunities			Income			Disciplinary
Tax cost of Investments		339,982,206			52,397,674			21,276,045			75,897,875
Unrealized Appreciation		89,576,151			21,523,028			35,933			683,134
Unrealized Depreciation		(9,665,716	)		(2,407,862	)		(93,103	)		(3,659,168	)
Net unrealized appreciation (depreciation)		79,910,435			19,115,166			(57,170	)		(2,976,034	)

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For the six months ended June 30, 2014, the Master Portfolios wrote the following options:

	Number			Premium
	of Contracts			Amount
The Alternative Income Portfolio
Outstanding at the Beginning of the Year		6,199		$	1,141,683
Options Written		4,903			934,631
Options Expired		(1,364	)		(115,643	)
Options Closed		(1,756	)		(395,071	)
Outstanding at June 30, 2014		7,982		$	1,565,600

The Multi-Disciplinary Portfolio
Outstanding at the Beginning of the Year		20,763		$	5,343,721
Options Written		4,142			1,155,122
Options Exercised		(665	)		(126,080	)
Options Expired		(13,571	)		(2,812,847	)
Options Closed		(387	)		(219,017	)
Outstanding at June 30, 2014		10,282		$	3,340,899

6. Portfolio Securities Loaned

As of June 30, 2014, the Master Portfolios had loaned securities that were collateralized by cash. The cash collateral is invested by the custodian in a money market pooled account approved by the Adviser. Although risk is mitigated by the collateral, a Master Portfolio could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return them. The Master Portfolio receives interest on the collateral received 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, 2014, were as follows:

	Securities		Collateral
The Internet Portfolio	$	20,765,137	$	21,133,565
The Global Portfolio		699,502		714,121
The Paradigm Portfolio		73,703,910		74,540,645
The Medical Portfolio		5,028,621		5,313,927
The Small Cap Opportunities Portfolio		47,293,574		48,702,392
The Market Opportunities Portfolio		5,474,060		5,564,976
The Alternative Income Portfolio		—		—
The Multi-Disciplinary Portfolio		24,410,710		25,078,937

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7. Selected Financial Highlights

Financial highlights for the Master Portfolios were as follows:

	The Internet Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		(1.93	)%(2)		44.75	%		23.76	%		(1.47	)%		21.70	%		49.13	%
Ratio of expenses to average net assets:		1.33	%(1)		1.37	%		1.37	%		1.38	%		1.37	%		1.37	%
Ratio of net investment income (loss) to average net assets:		(0.86	)%(1)		(0.84	)%		0.16	%		(0.43	)%		(0.33	)%		(0.04	)%
Portfolio turnover rate		0	%		8	%		9	%		32	%		12	%		14	%

	The Global Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		2.65	%(2)		28.25	%		22.78	%		(16.25	)%		19.26	%		65.44	%
Ratio of expenses to average net assets:		1.55	%(1)		1.73	%		1.77	%		2.23	%		2.43	%		2.81	%
Ratio of net investment income (loss) to average net assets:		(0.50	)%(1)		(0.12	)%		0.40	%		0.61	%		(0.51	)%		(0.74	)%
Portfolio turnover rate		12	%		15	%		23	%		135	%		122	%		53	%

*	The returns are calculated by adjusting the corresponding No-Load Feeder returns by Feeder expenses and reimbursements.
(1)	Annualized.
(2)	Not annualized.

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	The Paradigm Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		4.97	%(2)		44.36	%		22.06	%		(14.00	)%		17.65	%		41.30	%
Ratio of expenses to average net assets:		1.33	%(1)		1.35	%		1.36	%		1.37	%		1.36	%		1.36	%
Ratio of net investment income (loss) to average net assets:		(0.72	)%(1)		(0.23	)%		0.50	%		0.37	%		0.83	%		1.15	%
Portfolio turnover rate		5	%		4	%		6	%		58	%		7	%		15	%

	The Medical Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		9.65	%(2)		49.23	%		8.81	%		5.10	%		4.30	%		24.43	%
Ratio of expenses to average net assets:		1.41	%(1)		1.41	%		1.44	%		1.40	%		1.39	%		1.43	%
Ratio of net investment income (loss) to average net assets:		0.95	%(1)		(0.02	)%		1.62	%		0.86	%		0.55	%		1.14	%
Portfolio turnover rate		3	%		12	%		0	%		5	%		3	%		13	%

	The Small Cap Opportunities Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		4.11	%(2)		59.69	%		26.94	%		(13.44	)%		14.08	%		58.38	%
Ratio of expenses to average net assets:		1.34	%(1)		1.35	%		1.44	%		1.43	%		1.42	%		1.42	%
Ratio of net investment income (loss) to average net assets:		(0.64	)%(1)		0.01	%		0.27	%		0.03	%		0.02	%		(0.05	)%
Portfolio turnover rate		9	%		6	%		22	%		47	%		4	%		4	%

*	The returns are calculated by adjusting the corresponding No-Load Feeder returns by Feeder expenses and reimbursements.
(1)	Annualized.
(2)	Not annualized.

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	The Market Opportunities Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		0.77	%(2)		46.98	%		17.73	%		(7.63	)%		11.53	%		50.43	%
Ratio of expenses to average net assets:		1.38	%(1)		1.40	%		1.43	%		1.42	%		1.42	%		1.42	%
Ratio of net investment income (loss) to average net assets:		(0.05	)%(1)		0.27	%		0.44	%		0.30	%		0.56	%		0.26	%
Portfolio turnover rate		14	%		21	%		26	%		14	%		12	%		14	%

	The Alternative Income Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		2.40	%(2)		4.92	%		10.05	%		(4.66	)%		(4.43	)%		16.61	%
Ratio of expenses to average net assets:		1.22	%(1)		1.25	%		1.49	%		1.42	%		1.47	%		1.49	%
Ratio of net investment income (loss) to average net assets:		(0.46	)%(1)		(0.54	)%		1.99	%		1.47	%		1.04	%		0.63	%
Portfolio turnover rate		8	%		19	%		56	%		69	%		111	%		45	%

	The Multi-Disciplinary Portfolio
	For the Six			For the Year			For the Year			For the Year			For the Year			For the Year
	Months Ended			Ended			Ended			Ended			Ended			Ended
	June 30, 2014			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2013			2012			2011			2010			2009
Total return*		5.02	%(2)		4.39	%		15.42	%		0.19	%		12.12	%		20.73	%
Ratio of expenses to average net assets:		1.37	%(1)		1.39	%		1.45	%		1.54	%		2.41	%		3.66	%
Ratio of net investment income (loss) to average net assets:		2.21	%(1)		1.87	%		3.23	%		8.00	%		2.58	%		(1.20	)%
Portfolio turnover rate		20	%		54	%		41	%		74	%		38	%		77	%

*	The returns are calculated by adjusting the corresponding No-Load Feeder returns by Feeder expenses and reimbursements.
(1)	Annualized.
(2)	Not annualized.

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June 30, 2014 (Unaudited)

8. Summary of Fair Value Exposure

Various inputs are used in determining the value of a Master Portfolio’s investments. These inputs are summarized in the three broad levels listed below:

	Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that a Master Portfolio has the ability to access.

	Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

	Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing a Master Portfolio’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

The Internet Portfolio

The following is a summary of the inputs used to value the The Internet Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3			Total
Common Stocks	$	164,174,254	$	279,418	(1)	$	—	(2)*	$	164,453,672
Escrow Notes		—		—			—	*		—	*
Rights		135,000		—			—			135,000
Short-Term Investments		7,876		3,578,000	†		—			3,585,876
Investments Purchased with the Cash Proceeds from Securities Lending		21,133,565		—			—			21,133,565
Total Investments in Securities	$	185,450,695	$	3,857,418		$	—		$	189,308,113

(1)	The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:

Administrative and Support Services	$	1,740
Rental and Leasing Services		274,400
Telecommunications		3,278
	$	279,418

(2)	The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industry:

Holding Company		$	—	*
Transfers out of Level 1 into Level 2		$	274,400

Transfers were made out of Level 1 into Level 2 due to a decrease in market activity.

Transfers between levels are recognized at the end of the reporting period.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

Description	Investments in Securities
Balance as of December 31, 2013		$	—	*
Accrued discounts/premiums			—
Realized gain (loss)			—
Change in unrealized appreciation (depreciation)			—
Net purchases			—
Net sales			—
Transfer in and/or out of Level 3			—
Balance as of June 30, 2014		$	—	*

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	Fair Value at	Valuation	Unobservable
Description	6/30/2014	Techniques	Input	Range
Common Stocks	$—*	Delisted-Acquired by the U.S. Government/ Market Comparables	No active market	$0.00-$0.00
Escrow Notes	—*	Conservative Value Assigned Pending Bankruptcy Litigation Proceedings/Market Comparables	No active market	$0.00-$0.00

There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.

^	See Portfolio of Investments for breakout of investments by industry classification.
*	Amount is less than $0.50.
†	Priced at amortized cost.

The Global Portfolio

The following is a summary of the inputs used to value the The Global Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3		Total
Common Stocks	$	9,629,088	$	827,058	(1)	$	—	$	10,456,146
Mutual Funds		88,508		—			—		88,508
Short-Term Investments		7,449		267,000	†		—		274,449
Investments Purchased with the Cash Proceeds from Securities Lending		714,121		—			—		714,121
Total Investments in Securities	$	10,439,166	$	1,094,058		$	—	$	11,533,224

(1)	The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:

Beverage and Tobacco Product Manufacturing	$	4,860
Holding Company		32,056
Oil and Gas Extraction		78,689
Real Estate		711,453
	$	827,058
Transfers out of Level 2 into Level 1	$	620,400

Transfers were made out of Level 2 into Level 1 due to a increase in market activity.

Transfers between levels are recognized at the end of the reporting period.

^	See Portfolio of Investments for breakout of investments by industry classification.
†	Priced at amortized cost.

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June 30, 2014 (Unaudited)

The Paradigm Portfolio

The following is a summary of the inputs used to value The Paradigm Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3			Total
Common Stocks	$	1,275,861,233	$	3,753,607	(1)	$	—	(2)*	$	1,279,614,840
Escrow Notes		—		—			—	*		—	*
Mutual Funds		33,572		—			—			33,572
Short-Term Investments		12,966,640		62,480,000	†		—			75,446,640
Investments Purchased with the Cash Proceeds from Securities Lending		74,540,645		—			—			74,540,645
Total Investments in Securities	$	1,363,402,090	$	66,233,607		$	—	*	$	1,429,635,697

(1)	The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:

Holding Company	$	21,371
Real Estate		3,732,236
	$	3,753,607

(2)	The Common Stocks Level 3 balance consists of the market value of the associated Level 3 investments in the following industry:

Holding Company	$	—	*
	$	—	*
Transfers out of Level 2 into Level 1	$	2,791,800

Transfers were made out of Level 2 into Level 1 due to a increase in market activity.

Transfers between levels are recognized at the end of the reporting period.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

Description	Investments in Securities
Balance as of December 31, 2013		$	—	*
Accrued discounts/premiums			—
Realized gain (loss)			—
Change in unrealized appreciation (depreciation)			—
Net purchases			—
Net sales			—
Transfer in and/or out of Level 3			—
Balance as of June 30, 2014		$	—	*

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June 30, 2014 (Unaudited)

	Fair Value at	Valuation	Unobservable
Description	6/30/2014	Techniques	Input	Range
Escrow Notes	—*	Conservative Value Assigned Pending Bankruptcy Litigation Proceedings/Market Comparables	No active market	$0.00-$0.00

There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.

^	See Portfolio of Investments for breakout of investments by industry classification.
*	Amount is less than $0.50.
†	Priced at amortized cost.

The Medical Portfolio

The following is a summary of the inputs used to value the The Medical Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3		Total
Common Stocks	$	25,848,185	$	—		$	—	$	25,848,185
Rights		7,769		9,240			—		17,009
Short-Term Investments		9,884		946,000	†		—		955,884
Investments Purchased with the Cash Proceeds from Securities Lending		5,313,927		—			—		5,313,927
Total Investments in Securities	$	31,179,765	$	955,240		$	—	$	32,135,005

For the period ended June 30, 2014, there were no transfers into or out of Level 1 or Level 2.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

Description	Investments in Securities
Balance as of December 31, 2013		$	—	*
Accrued discounts/premiums			—
Realized gain (loss)			3,813
Change in unrealized appreciation (depreciation)			—
Net purchases			—
Net sales			(3,813	)
Transfer in and/or out of Level 3			—
Balance as of June 30, 2014		$	—

^	See Portfolio of Investments for breakout of investments by industry classification.
*	Amount is less than $0.50.
†	Priced at amortized cost.

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

The Small Cap Opportunities Portfolio

The following is a summary of the inputs used to value the The Small Cap Opportunities Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3		Total
Common Stocks	$	354,107,025	$	61,074,185	(1)	$	—	$	415,181,210
Rights		422,611		—			—		422,611
Short-Term Investments		8,021		8,610,000	†		—		8,618,021
Investments Purchased with the Cash Proceeds from Securities Lending		48,702,392		—			—		48,702,392
Total Investments in Securities	$	403,240,049	$	69,684,185		$	—	$	472,924,234

(1)	The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:

Asset Management	$	23,430,743
Forestry and Logging		33,440
Holding Company		4,394,426
Mining (except Oil and Gas)		841,884
Real Estate		32,332,072
Rental and Leasing Services		37,044
Telecommunications		4,576
	$	61,074,185
Transfers out of Level 1 into Level 2	$	70,484
Transfers out of Level 2 into Level 1		70,545

Transfers were made out of Level 1 into Level 2 due to a decrease in market activity.

Transfers were made out of Level 2 into Level 1 due to an increase in market activity.

Transfers between levels are recognized at the end of the reporting period.

^	See Portfolio of Investments for breakout of investments by industry classification.
†	Priced at amortized cost.

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

The Market Opportunities Portfolio

The following is a summary of the inputs used to value the The Market Opportunities Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3			Total
Common Stocks	$	52,841,496	$	4,500,816	(1)	$	—		$	57,342,312
Rights		—		—			—	*		—	*
Mutual Funds		44,858		—			—			44,858
Short-Term Investments		3,170,000		3,170,000	†		—			6,340,000
Investments Purchased with the Cash Proceeds from Securities Lending		5,564,976		—			—			5,564,976
Total Investments in Securities	$	61,621,330	$	7,670,816		$	—	*	$	69,292,146

(1)	The Common Stocks Level 2 balance consists of the market value of the associated Level 2 investments in the following industries:

Holding Company	$	1,146,024
Other Exchanges		57,814
Real Estate		3,296,978
	$	4,500,816
Transfers out of Level 3 into Level 2	$	57,814

Transfers were made out of Level 3 into Level 2 due to an increase in market activity.

Transfers between levels are recognized at the end of the reporting period.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

Description	Investments in Securities
Balance as of December 31, 2013		$	41,105
Accrued discounts/premiums			—
Realized gain (loss)			—
Change in unrealized appreciation (depreciation)			16,709
Net purchases			—
Net sales			—
Transfer in and/or out of Level 3			(57,814	)
Balance as of June 30, 2014		$	—	*

	Fair Value at	Valuation	Unobservable
Description	6/30/2014	Techniques	Input	Range
Rights	—	Market Comparables	No active market	$0.00-$0.00

There is no active market for the Level 3 securities, so a conservative value is being assigned until such time as a market exists.

^	See Portfolio of Investments for breakout of investments by industry classification.
*	Amount is less than $0.50.
†	Priced at amortized cost.

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

The Alternative Income Portfolio

The following is a summary of the inputs used to value the The Alternative Income Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3		Total
Corporate Bonds	$	—	$	19,518,058		$	—	$	19,518,058
U.S. Government Agency Issues		—		1,236,471			—		1,236,471
U.S. Treasury Obligations		—		1,599,897			—		1,599,897
Exchange Traded Funds		5,623,408		—			—		5,623,408
Purchased Put Options		—		62,340			—		62,340
Short-Term Investments		1,293,000		1,293,000	†		—		2,586,000
Total Investments in Securities	$	6,916,408	$	23,709,766		$	—	$	30,626,174
Liabilities
Written Options	$	—	$	684,115		$	—	$	684,115

For the period ended June 30, 2014, there were no transfers into or out of Level 1 or Level 2, or investments in Level 3 securities.

^	See Portfolio of Investments for breakout of investments by industry classification.
†	Priced at amortized cost.

The Multi-Disciplinary Portfolio

The following is a summary of the inputs used to value the The Multi-Disciplinary Portfolio’s net assets as of June 30, 2014:

Assets^	Level 1		Level 2			Level 3		Total
Convertible Bonds	$	—	$	32,883,939		$	—	$	32,883,939
Corporate Bonds		—		63,920,049			—		63,920,049
Municipal Bonds		—		525,000			—		525,000
Escrow Notes		—		97,500			—		97,500
Exchange Traded Funds		1,351,600		—			—		1,351,600
Exchange Traded Notes		4,651		—			—		4,651
Mutual Funds		8,185,513		—			—		8,185,513
Purchased Put Options		—		1,609,249			—		1,609,249
Short-Term Investments		1,642,442		4,414,000	†		—		6,056,442
Investments Purchased with the Cash
Proceeds from Securities Lending		25,078,937		—			—		25,078,937
Total Investments in Securities	$	36,263,143	$	103,449,737		$	—	$	139,712,880
Liabilities
Written Options	$	—	$	1,697,651		$	—	$	1,697,651

For the period ended June 30, 2014, there were no transfers into or out of Level 1 or Level 2, or investments in Level 3 securities.

^	See Portfolio of Investments for breakout of investments by industry classification.
†	Priced at amortized cost.

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

9. Disclosures about Derivative Instruments and Hedging Activities

The Master Portfolios have adopted enhanced disclosure regarding derivatives and hedging activity intended to improve financial reporting of derivative instruments by enabling investors to understand how and why a Master Portfolio uses derivatives, how derivatives are accounted for by the Master Portfolios, and how derivative instruments affect a Master Portfolio’s results of operations and financial position. The Master Portfolios utilized options to implement or to gain further exposure to their respective investment strategies.

The Alternative Income Portfolio

Statement of Assets and Liabilities

Fair Values of derivative instruments as of June 30, 2014:

	Assets			Liabilities
Equity Contracts	Description	Fair Value		Description	Fair Value
Purchased Put Options	Investments, at value	$	62,340		$	—
Total		$	62,340		$	—
Written Options		$	—	Written option contracts, at value	$	684,115
Total		$	—		$	684,115

Statement of Operations

The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2014:

Amount of Realized Gain (Loss) on Equity Contracts

Equity Contracts
Purchased Put Options	$	—
Written Put Options		393,726
Total	$	393,726

Change in Unrealized Appreciation (Depreciation) on Equity Contracts


Equity Contracts
Purchased Put Options	$	6,092
Written Put Options		274,957
Total	$	281,049

The Alternative Income Portfolio has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect the Portfolio’s Statement of Assets and Liabilities and Statement of Operations. For

211

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

the six months ended June 30, 2014: written option contracts (4,903 contracts) were opened and $934,631 premiums were received during the period, purchased option contracts (126 contracts) were opened and $56,248 premiums were paid during the period.

The Multi-Disciplinary Portfolio

Statement of Assets and Liabilities

Fair Values of derivative instruments as of June 30, 2014:

	Assets			Liabilities
Equity Contracts	Description	Fair Value		Description	Fair Value
Purchased Put Options	Investments, at value	$	1,609,249	Written option contracts, at value	$	—
Total		$	1,609,249		$	—
Written Put Options		$	—		$	1,697,651
Total		$	—		$	1,697,651

Statement of Operations

The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2014:

Amount of Realized Gain (Loss) on Equity Contracts

Equity Contracts
Purchased Put Options	$	—
Written Put Options		2,683,126
Total	$	2,683,126

Change in Unrealized Appreciation (Depreciation) on Equity Contracts

Equity Contracts
Purchased Put Options	$	206,099
Written Put Options		(1,688,291	)
Total	$	(1,482,192	)

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, 2014: written option contracts (4,142 contracts) were opened and $1,155,122 premiums were received during the period, purchased option contracts (1,497 contracts) were opened and $1,024,882 premiums were paid during the period.

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

10. Offsetting Assets and Liabilities

The Portfolios are subject to various Master Netting Arrangements, which govern the terms of certain transactions with select counterparties. The Master Netting Arrangements allow the Portfolio to close out and net its total exposure to a counterparty in the event of a default with respect to all the transactions governed under a single agreement with a counterparty. The Master Netting Arrangements also specify collateral posting arrangements at pre-arranged exposure levels. Under the Master Netting Arrangements, collateral is routinely transferred if the total net exposure to certain transactions (net of existing collateral already in place) governed under the relevant Master Netting Arrangement with a counterparty in a given account exceeds a specified threshold depending on the counterparty and the type of Master Netting Arrangement.

The Internet Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Internet Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Securities
Lending	$	21,133,565	$	—	$	21,133,565	$	21,133,565	$	—	$	—

The Global Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Global Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Securities
Lending	$	714,121	$	—	$	714,121	$	714,121	$	—	$	—

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

The Paradigm Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Internet Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Securities
Lending	$	74,540,645	$	—	$	74,540,645	$	74,540,645	$	—	$	—

The Medical Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Medical Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Securities
Lending	$	5,313,927	$	—	$	5,313,927	$	5,313,927	$	—	$	—

The Small Cap Opportunities Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Small Cap Opportunities Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Securities
Lending	$	48,702,392	$	—	$	48,702,392	$	48,702,392	$	—	$	—

214

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

The Market Opportunities Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Market Opportunities Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Securities
Lending	$	5,564,976	$	—	$	5,564,976	$	5,564,976	$	—	$	—

The Alternative Income Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Alternative Income Portfolio as of June 30, 2014:

Liabilities:				Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
		Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Written
Options	$	684,115	$	—	$	684,115	$	—	$	684,115	$	—

The Multi-Disciplinary Portfolio

The following is a summary of the Assets and Liabilities subject to offsetting in The Multi-Disciplinary Portfolio as of June 30, 2014:

Liabilities:			Gross Amounts Offset in the		Net Amounts Presented in the		Gross Amounts not offset in the statement of financial position
	Gross Amounts of Recognized Liabilities		Statement of Financial Position		Statement of Financial Position		Financial Instruments		Collateral Pledged (Received)		Net Amount
Description
Written
Options	$	1,697,651	$	—	$	1,697,651	$	—	$	1,697,651	$	—
Securities
Lending		25,078,937		—		25,078,937		25,078,937		—		—
	$	26,776,588	$	—	$	26,776,588	$	25,078,937	$	1,697,651	$	—

215

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Notes to Financial Statements — (Continued)

June 30, 2014 (Unaudited)

11. Information about Proxy Voting

Information regarding how the Master Portfolios votes proxies relating to portfolio securities is available without charge upon request by calling toll-free at 1-800-930-3828 or by accessing the Funds’ website at www.kineticsfunds.com and by accessing the SEC’s website at www.sec.gov. Information regarding how the Master Portfolios voted proxies relating to portfolio securities during the most recent twelve month period ended June 30, is available without charge, upon request, by calling toll-free at 1-800-930-3828 or by accessing the SEC’s website at www.sec.gov.

12. Information about the Portfolio Holdings

The Kinetics Portfolios Trust files its complete schedules of portfolio holdings for its first and third fiscal quarters with the SEC on Form N-Q. The Master Portfolios’ Form N-Q is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Form N-Q on the SEC’s website at www.sec.gov. Finally, the Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

13. Subsequent Events

Effective July 7, 2014, The Multi-Disciplinary Portfolio changed its name to The Multi-Disciplinary Income Portfolio. The Multi-Disciplinary Fund made corresponding changes to its name on July 7, 2014.

14. Recent Accounting Pronouncements

In June 2014, the Financial Accounting Standard Board issued ASU No. 2014-11 “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” ASU No. 2014-11 makes limited changes to the accounting for repurchase agreements, clarifies when repurchase agreements and securities lending transactions should be accounted for as secured borrowings, and requires additional disclosures regarding these types of transactions. The guidance is effective for fiscal years beginning after December 15, 2014, and for interim periods within those fiscal years. Management is currently evaluating the impact these disclosures will have on the Fund’s financial statement disclosures.

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Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Schedule of Investments.

The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

Item 11. Controls and Procedures.

(a)	The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in

Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(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. Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Kinetics Mutual Funds, Inc. & Kinetics Portfolios Trust

By (Signature and Title)* /s/ Peter B. Doyle

Peter B. Doyle, President

Date 8/27/2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Peter B. Doyle

Peter B. Doyle, President

Date 8/27/2014

By (Signature and Title)* /s/ Leonid Polyakov

Leonid Polyakov, Treasurer

Date 8/26/2014

* Print the name and title of each signing officer under his or her signature.