ThZeal - The Zeal

As filed with the Securities and Exchange Commission on September 9, 2019

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, 2019

Date of reporting period: June 30, 2019

Item 1. Report to Stockholders.


KINETICS MUTUAL FUNDS, INC.
Table of Contents
June 30, 2019 (Unaudited)

	Page
Shareholders’ Letter	2
Year 2019 Semi-Annual Investment Commentary	7
KINETICS MUTUAL FUNDS, INC. — FEEDER FUNDS AND
THE KINETICS SPIN-OFF AND CORPORATE RESTRUCTURING FUND
Expense Example	12
Allocation of Assets — The Kinetics Spin-off and Corporate
Restructuring Fund	19
Schedule of Investments — The Kinetics Spin-off and Corporate
Restructuring Fund	20
Statements of Assets & Liabilities	23
Statements of Operations	28
Statements of Changes in Net Assets	33
Notes to Financial Statements	46
Financial Highlights	72
KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS
Allocation of Consolidated Portfolio Assets	105
Consolidated Portfolio of Investments —The Internet Portfolio	113
Consolidated Portfolio of Investments — The Global Portfolio	116
Consolidated Portfolio of Investments — The Paradigm Portfolio	120
Portfolio of Investments — The Medical Portfolio	125
Consolidated Portfolio of Investments — The Small Cap
Opportunities Portfolio	127
Consolidated Portfolio of Investments — The Market
Opportunities Portfolio	130
Portfolio of Investments — The Alternative Income Portfolio	133
Portfolio of Investments — The Multi-Disciplinary Income Portfolio	134
Consolidated Statements of Assets & Liabilities	138
Consolidated Statements of Operations	142
Consolidated Statements of Changes in Net Assets	146
Consolidated Notes to Financial Statements	150

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, 2019. The Funds continue to be positioned in companies that we believe are valued attractively, based on our assessment of the prospective asset values and cash flows over the next five years. This long-term focus has been especially challenging recently, but it has become even more crucial due to factors relating to market structure and central bank policies, which have emphasized short-term results. While stimulative measures from the federal government and central bank have inflated corporate results over the past 18 months, the outlook beyond the next 18 months is far more challenging. The Funds benefitted from the sharp recovery from the market declines experienced late last year, but much as we believed that the declines indiscriminately impacted high quality, attractively valued assets, the subsequent recovery has been indiscriminate in inflating most assets back to levels consistent with prior highs. A performance summary for the half year ended June 30, 2019 follows (No-Load Class):

The Internet Fund 38.47%; The Global Fund 28.02%; The Paradigm Fund 28.92%; The Medical Fund 4.35%; The Small Cap Opportunities Fund 22.37%; The Market Opportunities Fund 25.70%; The Alternative Income Fund 1.64%; The Multi-Disciplinary Income Fund 6.94%; and the Kinetics Spin-Off and Corporate Restructuring Fund 26.51%. This compares to returns of: 18.54% for the S&P 500^®Index; 13.69% for the S&P 600 Small Cap Index; 16.23% for the MSCI All Country World (ACWI) Index; 6.11% for the Bloomberg Barclays U.S. Aggregate Bond Index; 9.94% for the Bloomberg Barclays U.S. Corporate High Yield Index; 3.24% for the Bloomberg Barclays 1-3 Year U.S. Credit Bond Index; 21.33% for the Nasdaq Index; and 14.03% for the MSCI EAFE Index.

While we continue to provide equity and fixed income reference benchmark numbers (to aid in your understanding of how the broad asset classes have performed throughout the first half of 2019), we do not manage our Funds against any specific benchmark, nor have we ever done so in the history of the Funds. We believe that such benchmark adherence is highly detrimental to the long-term returns of a sound investment strategy, particularly in recent years, as the benchmarks themselves have undergone distortions that make them inconsistent with their original objectives.

The equity market declines experienced in the 4th quarter of 2018 are now a distant memory for most, as the S&P 500 Index (“S&P 500”) is now marginally higher than the peak closing level achieved in September of 2018. Investors have been rewarded repeatedly during the past decade for remaining fully invested, or, better yet, for increasing investment exposure to equities during any market declines. To wit, the trailing ten-year total return for the S&P 500 Index is 14.7% annually, which amounts to a near quadrupling of the initial investment. There have been six notable “corrections” during this period, where the market declined in excess of 10% (2010: -16%; 2011: -20%; 2015 (2): -12%, -13%; 2018 (2): -10%, -20%), but none of these declines were sustained, and, in each case, prior highs were recouped within months.

The comfort that investors generally seem to draw from these returns simply confirms the manner in which short-term memory can create serious risk exposure. Equity performance, and continued resilience to downturns, has been assisted materially by the sustained low interest rate policies maintained by central banks across the world. It may come as a surprise that an investment in the S&P 500 at the pre-financial crisis peak in 2007 would have earned a total return through the first half of this year (nearly 12 years) of 141%, or approximately 7.8% annually. It might be even more surprising that the near-20-year annual return for the S&P 500, from the peak of the prior Internet Bubble peak at year-end 1999, is only 5.9%. These returns are paltry compared to the nearly 15% annual return of the past decade, but we expect that most investors would be immensely fortunate to compound at a 5.9%, let alone a 7.8% rate over the next 12 years.

The role of central banks and artificially suppressed interest rates on trailing equity returns cannot be overstated. The focus of this analysis will be on the United States, but in general, policies have been more accommodative, but less impactful, internationally. In 2006, the Federal Reserve raised short-term interest rates by 100 basis points (1.00%) to 5.25% in four 0.25% movements during the first half of the year. By September of 2007, rates were reduced by 50 basis points to 4.75%; not coincidentally, this was just prior to the market peak in October 2007. By the end of 2008, rates had been reduced to a “target level¹” of 0.00% – 0.25% and remained at this level until December of 2015;

1	The FOMC adopted a target range policy for rates at this meeting, which has been maintained ever since.

for nearly 7 full years, interest rates had been held at zero. It should be noted that by December 2015, when rates were finally raised, the S&P 500 Index had already eclipsed the previous 2007 peak level by a considerable margin. Rates were subsequently increased at a measured pace through December of 2018, ultimately peaking at the range of 2.25% - 2.50%, which rate prevails today. The S&P 500 Index is currently trading at approximately double the 2007 peak level, and real GDP is over 20% higher than in 2007; yet, short-term interest rates are at approximately half the level that they were at in 2007.

The impact of interest rates is circular in nature, as it impacts both the economy and asset (equity) prices. The economy is impacted primarily by rates influencing consumers’ and businesses’ willingness to spend versus to save –consider that U.S. GDP is approximately 69% personal consumption and 18% business investment. Lower rates enable consumers and businesses to borrow more inexpensively, in order to consume. However, the second derivative of low rates is that they disincentivize savings and safe investments by depressing the yields, thereby inflating the prices of risk assets. Ultimately, consumers and businesses would be compelled to consume more, as they can borrow more inexpensively, and incremental investments of their savings are increasingly less attractive given low yields/high prices. A tax cut to corporations and higher income families is intended to further the consumption persuasion, boosting GDP in turn. Logically, there are limits to the benefits of lower rates and other stimuli, with increasingly diminishing returns from each subsequent action. Alas, at the midpoint of this year, the market is pricing in approximately a 70% chance that rates will be lowered 25bps and a 30% chance that rates will be lowered 50bps at the July 2019 Federal Reserve Meeting²– while the S&P 500 reaches new record levels daily.

Despite these facts, and the obvious implications for the future, optimism for U.S. equities now remains at very high levels. The most common argument for maintaining full equity exposure today is that the earnings yield on the S&P 500 is quite high relative to the 10-Year U.S. Treasury yield. As an example, a price to earnings ratio on the Index of 20x (historically very high) would represent a 5% earnings yield (1 / 20x = 0.05, or 5%), which, relative to a 2% 10-Year U.S. Treasury, would offer an incremental 3% in yield. At the midpoint of this year, the earnings yield was 5.2%, compared to a 10-Year yield of 2.0%, netting a

2	Probabilities provided by the CME FedWatch Tool.

3.2% spread. Comparatively, based on the past 30 years, the S&P 500 earnings yield has averaged only 0.68% higher than the 10-Year yield, and the median difference has been 0.96%. However, the attraction of the earnings yield today is simply a derivative of low interest rates, as the U.S. 10-Year Treasury yield is highly dependent on short-term interest rates set by the Federal Reserve. Over this 30-year period, the average and median yields on the U.S. 10-Year Treasury were 4.73% and 4.55%, respectively – both more than double the current level. If interest rates were currently consistent with the 30-year average, the current incremental earnings yield would be merely 0.47%.

This mid-year review of historical interest rates and equity market returns provides explication for our caution regarding equity markets over the past several years. There are obvious parallels to the 2005-2006 rate hikes, which needed to be reversed in 2007, although this ultimately only delayed the inevitable market decline in 2008/2009. The primary distinction that we identify today is the explicit willingness of central banks to inflate asset prices (equities) during inevitable market declines, which now includes policy tools beyond interest rates (i.e., quantitative easing). The finite nature of future rate cuts is even now in question – of course, a starting level of 2.5% leaves far less room to cut than did the 5.25% starting point in 2006, but various developed nations across Europe have shown a willingness to drop rates below zero. Thus, the markets ascend, and confidence in future equity returns remains inflated, based on the expectations of unlimited government support of asset prices.

Global central banks have been able to engage in such rate policies, hence, inflating the value of all financial assets, largely because consumer prices (which do not include financial assets) have remained subdued. It is generally politically unpalatable (for democracies) to promote/accept high consumer price inflation, not to mention being destructive to globally oriented businesses. Global inflation has remained muted largely due to technological shifts in the economy, as well as due to a profound demographic shift. Recall that 69% of U.S. GDP is driven by personal consumption; yet, the largest concentration of wealth (baby boomers) in the country is held by those who are past their highest consumption years. This concentration of wealth in aging demographics is standard across developed nations (it is far more pronounced in Japan, for instance), although it is less prominent in developing economies. We believe

that, eventually, inflation will pose a great risk to the wealth of future generations, as financial asset inflation has enriched those with considerable wealth, but it has not materially benefitted those without capital to invest (i.e., wage growth has annualized at 2.28%³annually since the end of 2008). Equity markets may continue to rise, although the future rate of growth will need to be far lower, and perhaps to be negative in real terms (adjusted for inflation), should central banks support equities through rate cuts and easing. To this end, the Funds continue to maintain large cash balances and are generally concentrated in companies that we believe are not artificially profitable due to the current rate/inflation structure, and thus, can withstand or even benefit from a marked shift in the prevailing rate/inflation structure. We maintain this allocation despite the distinct risk of not fully participating in further speculative equity market advances driven by technology and cyclical companies that rely on the continuation of the status quo, and expect far more attractive levels to allocate capital in due course.

3	U.S. Bureau of Labor Statistics, Employed full time: Median usual weekly nominal earnings (second quartile): Wage and salary workers: 25 years and over.

KINETICS MUTUAL FUNDS, INC.
Investment Commentary

A multitude of factors drive investment decisions for individuals and institutions, which impact stock prices over the short and long-term. These range from the obvious (a desire to grow capital) to the more esoteric (a desire to limit return variability). As ardent value investors, we accept these behavioral factors as part of the balancing mechanism that generates market prices for securities, although we recognize that it can often result in distortions between asset prices and fundamental values. Our investment methodology is based upon the historical observation that, over extended periods of time, fundamental asset values and cash flows are what ultimately determine security prices. Hence, we rely upon the differences between stock prices and underlying asset values to generate attractive, long-term returns that are largely driven by different, specific variables than the broader market.

The current market advance, which is currently in its 10th year, has been unique given its duration, magnitude and concentration. It has largely been an accommodative market for the generation of strong absolute returns (as all asset prices have risen), but has also been a challenging environment in which to generate attractive returns on a relative basis (to the S&P 500 Index). The strong trailing performance of the S&P 500 Index has driven more asset flows into the top companies within the index regardless of prices, bolstering returns further. As a result, active managers with price discipline, who are seeking differentiated (uncorrelated) returns, have found this environment challenging.

As an example, the S&P 500 Index has returned 14.7% annually over the 10-year period ended June 30, 2019, which compares to 15.0% and 5.8%, respectively, for the S&P 600 (Small Cap) and MSCI Emerging Market indexes. Furthermore, the S&P 900 Growth Index has returned 16.1% annually over this period compared to 13.2% for the S&P 900 Value Index. In summary, over this extended 10-year observation period, large capitalization U.S. domiciled companies have performed similarly to smaller capitalization companies, and have outperformed emerging market issues, while growth companies have trounced the performance of their peer value companies. These observations are at odds with the historical observations that small and emerging market companies tend to outperform during strong markets. Additionally, value stocks often outperform growth stocks over a full cycle; however, this cycle has yet to end, and the outperformance of growth stocks has thus far been striking.

It can be argued that there are logical drivers for this return dispersion, ranging from the mounting global dominance of U.S. corporations (technology skewed), the current technological growth cycle, sustained low interest rates, global trade dynamics, and the strength of the U.S. Dollar. However, the

byproduct of all of these factors is a tremendous and growing concentration of asset liquidity in the largest U.S. equities, which are almost exclusively growth and technology-oriented companies. The companies happen to be the core holdings, and primary performance contributors, of the S&P 500 Index and, as such, of the passive index funds that track it.

Historically, equity investments were considered higher risk and far less liquid compared to the “safest” and “most liquid” asset class (excluding cash): U.S. treasuries. Logically, investors allocated smaller portions of their total net worth into higher risk and less liquid stocks, but intended to hold those investments for an extended period of time. Fixed income investments were frequently used for short-term and safer return requirements, and, until very recently, offered a reasonable rate of return. However, as fixed income markets have experienced a severe compression of yields over the past decade, capital allocators have sought alternative, more productive outlets for their capital. Generally, these funds require greater liquidity than does longer-term, committed equity capital. Hence, these fund flows have been concentrated in the largest, most liquid equities in the market, supporting their share prices in turn. Computerized trading strategies and indexation fund flows have furthered this liquidity-oriented allocation trend, although such pools of capital cannot be relied upon during market disruptions. This has resulted in lower observed variability in the largest stocks, which only creates more demand for these equities.

In aggregate, investors appear to accept this new liquidity concentration and “excess” return stream in large capitalization, technology (growth) dominated companies to be an enduring, if not permanent feature of capital markets. We believe that it is worth considering what the fundamental fair value of equities would be if the liquidity, low volatility and/or suppressed interest rate harmony were to be disrupted in any way. At the very least, it warrants exploring equity allocations that are not overly sensitive to these factors, and better yet, those that could benefit from any disruption. To this end, we believe there are incredibly compelling equity investments that meet these criteria today; however, most are distinctly out of favor.

These “contrarian” types of investment ideas have long been the source of our best return drivers and have served our investors very well through full investment cycles. This strategy is confronting its most disruptive and enduring headwind since we began investing: the current liquidity trend towards the largest, growing mega-capitalization (index) companies. We’ll conclude our thoughts on the current market backdrop with a reminder of Hyman Minsky’s “financial-instability hypothesis,” summarized as “stability leads to instability.”

The broader mandate equity Funds (The Paradigm Fund, The Small Cap Opportunities Fund, The Market Opportunities Fund, The Internet Fund and The Global Fund) continue to express a defensive outlook through elevated cash positions, which detracted from performance through the first half of the year given the appreciation of the portfolio investments. However, these Funds all benefitted materially from overweight positions in Texas Pacific Land Trust, which appreciated more than twice the level of the S&P 500^®Index. The Internet Fund, The Global Fund and The Market Opportunities Fund were the most impacted by cash balances during the period, however each of these funds have outsized exposure to cryptocurrency, which benefitted the funds considerably given an approximate 3.5x increase in the market value of these underlying investments. The Spin-off and Corporate Restructuring Fund also had a high concentration and exposure to Texas Pacific Land Trust, which benefitted performance. The Medical Fund also has a high concentration where the top positions constitute a substantial portion of the fund’s assets. The income-oriented funds (The Multi-Disciplinary Income Fund and The Alternative Income Fund) also maintain defensive positioning, largely expressed through reduced option exposure, which detracted from performance relative to a full exposure. The income generation potential from options is not sufficient relative to the risks that we identify, but we are eager to reinitiate this exposure as conditions permit. We believe the positioning for all of the funds is currently optimal, and we continue to assess any developments that would warrant a modification.

Disclosure

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

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

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

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

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

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

respective investment objectives. Purchasing and writing put and call 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, The Alternative Income Fund and The Multi-Disciplinary Income Fund, the value of Fund shares may fluctuate more than shares invested in a broader range of industries and companies. Unlike other investment companies that directly acquire and manage their own portfolios of securities, The Kinetics Mutual Funds, except Kinetics Spin-Off and Corporate Restructuring Fund, 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 MSCI All Country World Index, the S&P 500^®Index, NASDAQ Composite^®, S&P 600^®Small Cap Index, MSCI EAFE^®Index, Bloomberg Barclays U.S. 1-3 Year Credit Index, Bloomberg Barclays U.S. Aggregate Bond Index and Bloomberg Barclays U.S. Corporate High Yield Bond Index each represent an unmanaged, broad-basket of stocks or bonds. 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 Horizon Kinetics Asset Management LLC, Investment Adviser to Kinetics Mutual Funds, Inc.

For more information, log onto www.kineticsfunds.com. July 1, 2019 — Horizon Kinetics Asset Management, LLC^®

KINETICS MUTUAL FUNDS, INC. — THE FUNDS
Expense Example
June 30, 2019 (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. (except the Spin-off Fund, each a “Feeder Fund” and including the Spin-off Fund, collectively the “Funds”), and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested on January 1, 2019 and held for the entire period from January 1, 2019 to June 30, 2019.

Actual Expenses

The Actual Expenses comparison provides information about actual account values and actual expenses. Unlike other mutual funds that directly acquire and manage their own portfolio securities, each Feeder Fund invests all 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. Note, the Spin-off Fund is not a Feeder Fund.

The Funds will charge shareholder fees for outgoing wire transfers, returned checks, and exchanges executed by telephone between a Fund and any other Fund. The Funds’ transfer agent charges a $5.00 transaction fee to shareholder accounts for telephone exchanges between any two Funds. The 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 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 Funds to help offset transaction costs. The Funds reserve the right to waive

KINETICS MUTUAL FUNDS, INC. — THE FUNDS
Expense Example — (Continued)
June 30, 2019 (Unaudited)

the redemption fee, subject to their sole discretion, in instances deemed not to be disadvantageous to the Funds or shareholders as described in the Funds’ prospectus.

A shareholder may use the information provided in the first line, together with the amounts invested, to estimate the expenses paid over the period. A shareholder may divide his/her account value by $1,000 (e.g., 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 paid on his/her account during this period.

Hypothetical Example for Comparison Purposes

The Hypothetical Example for Comparison Purposes provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses paid for the period. A shareholder may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, a shareholder would compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The expenses shown in the table are meant to highlight ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the Hypothetical Example for Comparison Purposes is useful in comparing ongoing costs only, and will not help determine the relative total costs of owning different funds. In addition, if these transactional costs were included, shareholders costs would have been higher.

KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2019 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/19 to
	(1/1/19)		(6/30/19)		Ratio			6/30/19)

The Internet Fund
No Load Class Actual	$	1,000.00	$	1,384.70		1.88	%	$	11.12
No Load Class Hypothetical (5% return
before expenses)	$	1,000.00	$	1,015.50		1.88	%	$	9.39
Advisor Class A Actual	$	1,000.00	$	1,382.80		2.13	%	$	12.58
Advisor Class A Hypothetical (5% return
before expenses)	$	1,000.00	$	1,014.26		2.13	%	$	10.64
Advisor Class C Actual	$	1,000.00	$	1,379.60		2.63	%	$	15.52
Advisor Class C Hypothetical (5% return
before expenses)	$	1,000.00	$	1,011.76		2.63	%	$	13.12

The Global Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,280.20		1.39	%	$	7.86
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.90		1.39	%	$	6.95
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,277.10		1.64	%	$	9.26
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,016.66		1.64	%	$	8.20
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,275.40		2.14	%	$	12.07
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,014.18		2.14	%	$	10.69

KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2019 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/19 to
	(1/1/19)		(6/30/19)		Ratio			6/30/19)

The Paradigm Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,289.20		1.64	%	$	9.31
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,016.66		1.64	%	$	8.20
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,287.60		1.89	%	$	10.72
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,015.42		1.89	%	$	9.44
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,284.50		2.39	%	$	13.54
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,012.94		2.39	%	$	11.93
Institutional Class Actual – after expense
reimbursement	$	1,000.00	$	1,290.70		1.44	%	$	8.18
Institutional Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.65		1.44	%	$	7.20

The Medical Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,043.50		1.39	%	$	7.04
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.90		1.39	%	$	6.95
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,042.20		1.64	%	$	8.30
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,016.66		1.64	%	$	8.20
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,039.60		2.14	%	$	10.82
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,014.18		2.14	%	$	10.69

KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2019 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/19 to
	(1/1/19)		(6/30/19)		Ratio			6/30/19)

The Small Cap Opportunities Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,223.70		1.64	%	$	9.04
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,016.66		1.64	%	$	8.20
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,222.00		1.89	%	$	10.41
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,015.42		1.89	%	$	9.44
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,219.00		2.39	%	$	13.15
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,012.94		2.39	%	$	11.93
Institutional Class Actual – after expense
reimbursement	$	1,000.00	$	1,224.90		1.44	%	$	7.94
Institutional Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.65		1.44	%	$	7.20

The Market Opportunities Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,257.00		1.40	%	$	7.83
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.85		1.40	%	$	7.00
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,255.50		1.65	%	$	9.23
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,016.61		1.65	%	$	8.25
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,251.80		2.15	%	$	12.00
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,014.13		2.15	%	$	10.74
Institutional Class Actual – after expense
reimbursement	$	1,000.00	$	1,258.10		1.20	%	$	6.72
Institutional Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,018.84		1.20	%	$	6.01

KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2019 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/19 to
	(1/1/19)		(6/30/19)		Ratio			6/30/19)

The Alternative Income Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,016.40		0.95	%	$	4.75
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,020.08		0.95	%	$	4.76
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,015.30		1.20	%	$	6.00
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,018.84		1.20	%	$	6.01
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,012.70		1.70	%	$	8.48
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,016.36		1.70	%	$	8.50
Institutional Class Actual – after expense
reimbursement	$	1,000.00	$	1,017.60		0.75	%	$	3.75
Institutional Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,021.08		0.75	%	$	3.76

The Multi-Disciplinary Income Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,069.40		1.49	%	$	7.65
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	$	1,068.50		1.74	%	$	8.92
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	$	1,066.70		2.24	%	$	11.48
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	$	1,071.30		1.29	%	$	6.63
Institutional Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,018.40		1.29	%	$	6.46

KINETICS MUTUAL FUNDS, INC. — THE FUNDS
Expense Example — (Continued)
June 30, 2019 (Unaudited)

								Expenses Paid
	Beginning		Ending					During
	Account		Account		Annualized			Period*
	Value		Value		Expense			(1/1/19 to
	(1/1/19)		(6/30/19)		Ratio			6/30/19)

The Kinetics Spin-off and Corporate
Restructuring Fund
No Load Class Actual – after expense
reimbursement	$	1,000.00	$	1,265.10		1.45	%	$	8.14
No Load Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.61		1.45	%	$	7.25
Advisor Class A Actual – after expense
reimbursement	$	1,000.00	$	1,264.70		1.50	%	$	8.42
Advisor Class A Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,017.36		1.50	%	$	7.50
Advisor Class C Actual – after expense
reimbursement	$	1,000.00	$	1,260.20		2.25	%	$	12.61
Advisor Class C Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,013.64		2.25	%	$	11.23
Institutional Class Actual – after expense
reimbursement	$	1,000.00	$	1,267.10		1.25	%	$	7.03
Institutional Class Hypothetical (5% return
before expenses) – after expense
reimbursement	$	1,000.00	$	1,018.60		1.25	%	$	6.26

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 from the Master Portfolio.

* Expenses are equal to the Fund’s annualized expense ratio after expense reimbursement multiplied by the average account value over the period, multiplied by 181/365.

KINETICS MUTUAL FUNDS, INC. — THE FUND
Allocation of Portfolio Assets
June 30, 2019 (Unaudited)

The Kinetics Spin-off and Corporate Restructuring Fund


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Mining, Quarrying, and Oil and Gas Extraction	$	8,444,403		38.1	%
Manufacturing		3,091,756		13.9	%
Real Estate and Rental and Leasing		2,431,901		11.0	%
Information		1,986,850		9.0	%
Management of Companies and Enterprises		1,554,124		7.0	%
Administrative and Support and Waste Management and
Remediation Services		1,270,506		5.7	%
Educational Services		897,039		4.1	%
Finance and Insurance		521,546		2.4	%
Accommodation and Food Services		495,360		2.2	%
Transportation and Warehousing		430,500		1.9	%
Arts, Entertainment, and Recreation		218,393		1.0	%
Professional, Scientific, and Technical Services		28,750		0.1	%
Retail Trade		28,416		0.1	%

*	Excludes Short-Term Investments

KINETICS MUTUAL FUNDS, INC. — THE FUND

The Kinetics Spin-off and Corporate

Restructuring Fund

Schedule of Investments — June 30, 2019 (Unaudited)

COMMON STOCKS — 96.45%	Shares		Value
Accommodation – 2.23%
Civeo Corporation*		288,000	$	495,360
Administrative and Support Services – 5.73%
PayPal Holdings, Inc.*^c		11,100		1,270,506
Beverage and Tobacco Product Manufacturing – 0.36%
Crimson Wine Group Limited*		10,000		80,000
Broadcasting (except Internet) – 6.75%
Cable One, Inc.		750		878,243
The E.W. Scripps Company – Class A		20,000		305,800
TEGNA, Inc.		11,600		175,740
Tribune Media Company – Class A		3,000		138,660
				1,498,443
Chemical Manufacturing – 0.28%
Prestige Consumer Healthcare, Inc.*		797		25,249
Rayonier Advanced Materials, Inc.		5,800		37,642
				62,891
Educational Services – 4.04%
Graham Holdings Company – Class B		1,300		897,039
Fabricated Metal Product Manufacturing – 0.88%
Masco Corporation		5,000		196,200
Funds, Trusts, and Other Financial Vehicles – 1.63%
Capital Southwest Corporation		17,300		362,435
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) – 0.03%
PrairieSky Royalty Limited		500		7,025
Machinery Manufacturing – 2.90%
The Manitowoc Company, Inc.*		8,025		142,845
Welbilt, Inc.*		30,000		501,000
				643,845
Management of Companies and Enterprises – 7.01%
Associated Capital Group, Inc. – Class A^c		33,600		1,256,640
Dundee Corporation – Class A*		48,400		37,186
Galaxy Digital Holdings Ltd.*		24,000		43,068
Icahn Enterprises LP		3,000		217,230
				1,554,124

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

KINETICS MUTUAL FUNDS, INC. — THE FUND
The Kinetics Spin-off and Corporate
Restructuring Fund
Schedule of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value

Medical Equipment and Supplies Manufacturing – 1.18%
Avanos Medical, Inc.*		6,000	$	261,660
Miscellaneous Manufacturing – 4.61%
CSW Industrials, Inc.		15,000		1,022,250
Oil and Gas Extraction – 38.06%
Texas Pacific Land Trust^c		10,730		8,444,402
Other Financial Investment Activities – 0.72%
GAMCO Investors, Inc. – Class A		8,300		159,111
Other Telecommunications – 1.39%
Liberty Broadband Corporation – Series A*		3,000		308,520
Publishing Industries (except Internet) – 0.81%
Gannett Company, Inc.		7,700		62,832
New Media Investment Group, Inc.		12,400		117,056
				179,888
Real Estate – 10.93%
Dream Unlimited Corp. – Class A^c		203,200		1,124,556
The Howard Hughes Corporation*^c		10,500		1,300,320
				2,424,876
Scientific Research and Development Services – 0.13%
Rafael Holdings, Inc. – Class B*		1,000		28,750
Spectator Sports – 0.99%
Liberty Media Corp.-Liberty Braves – Class C*		1,590		44,472
Liberty Media Corp.-Liberty Formula One – Class A*		4,850		173,921
				218,393
Sporting Goods, Hobby, Musical Instrument, and Book Stores – 0.13%
Vista Outdoor, Inc.*		3,200		28,416
Transportation Equipment Manufacturing – 3.72%
General Electric Company		76,000		798,000
Wabtec Corp.		375		26,910
				824,910
Water Transportation – 1.94%
A.P. Moeller-Maersk A/S – Class B – ADR		70,000		430,500

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

KINETICS MUTUAL FUNDS, INC. — THE FUND
The Kinetics Spin-off and Corporate
Restructuring Fund
Schedule of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value

TOTAL COMMON STOCKS
(cost $13,075,421)				$	21,399,544


SHORT-TERM INVESTMENTS – 3.68%
Money Market Funds – 0.00%
Fidelity Institutional Government Portfolio – Class I, 2.26%^b		362			362

	Principal
	Amount
U.S. Treasury Obligations – 3.68%
United States Treasury Bills^f
Maturity Date: 08/06/2019, Yield to Maturity 2.20%	$	819,000		817,295
TOTAL SHORT-TERM INVESTMENTS
(cost $817,569)				817,657
TOTAL INVESTMENTS – 100.13%
(cost $13,892,990)			$	22,217,201

Percentages are stated as a percent of net assets.

* — Non-income producing security.

^b— The rate quoted is the annualized seven-day yield as of June 30, 2019.

^c— Significant Investment. See note 6.

^f— Level 2 Investment. See note 7.

ADR — American Depository Receipt.

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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities

June 30, 2019 (Unaudited)


	The Internet		The Global
	Fund		Fund
ASSETS:
Investments in the Master Portfolio, at value*	$	138,780,513	$	14,807,580
Receivable from Adviser		—		11,790
Receivable for Fund shares sold		338,036		670,185
Prepaid expenses and other assets		27,275		27,538
Total Assets		139,145,824		15,517,093
LIABILITIES:
Payable for Master Portfolio interest purchased		272,494		665,939
Payable to Adviser		3,630		—
Payable to Directors		2,736		284
Payable to Chief Compliance Officer		181		19
Payable for Fund shares repurchased		65,543		4,245
Payable for shareholder servicing fees		26,672		2,739
Payable for distribution fees		9,099		25,732
Accrued expenses and other liabilities		56,082		17,963
Total Liabilities		436,437		716,921
Net Assets	$	138,709,387	$	14,800,172
NET ASSETS CONSIST OF:
Paid in capital	$	102,277,636	$	11,283,898
Accumulated earnings		36,431,751		3,516,274
Net Assets	$	138,709,387	$	14,800,172
CALCULATION OF NET ASSET VALUE PER SHARE – NO LOAD CLASS:
Net Assets	$	134,356,533	$	7,927,672
Shares outstanding		3,568,263		1,133,566
Net asset value per share (offering price and redemption price)	$	37.65	$	6.99
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS A:
Net Assets	$	3,146,740	$	1,461,809
Shares outstanding		91,029		209,899
Net asset value per share (redemption price)	$	34.57	$	6.96
Offering price per share ($34.57 divided by .9425 and $6.96
divided by .9425)	$	36.68	$	7.38
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS C:
Net Assets	$	1,206,114	$	5,410,691
Shares outstanding		41,283		828,138
Net asset value per share (offering price and redemption price)	$	29.22	$	6.53

* Each Feeder Fund invests all or generally all its assets directly in the corresponding Master Portfolio. The financial statements for the Master Portfolios, along with the portfolio of investments in securities, are contained elsewhere in this report and should be read in conjunction with the Feeder 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, 2019 (Unaudited)


	The Paradigm		The Medical
	Fund		Fund
ASSETS:
Investments in the Master Portfolio, at value*	$	812,193,045	$	16,350,802
Receivable from Adviser		60,745		14,015
Receivable for Master Portfolio interest sold		41,705		6,614
Receivable for Fund shares sold		730,278		47
Prepaid expenses and other assets		69,606		23,225
Total Assets		813,095,379		16,394,703
LIABILITIES:
Payable to Directors		17,914		377
Payable to Chief Compliance Officer		1,234		27
Payable for Fund shares repurchased		771,983		6,661
Payable for shareholder servicing fees		127,907		3,344
Payable for distribution fees		167,896		754
Accrued expenses and other liabilities		198,180		19,010
Total Liabilities		1,285,114		30,173
Net Assets	$	811,810,265	$	16,364,530
NET ASSETS CONSIST OF:
Paid in capital	$	457,185,882	$	11,256,319
Accumulated earnings		354,624,383		5,108,211
Net Assets	$	811,810,265	$	16,364,530
CALCULATION OF NET ASSET VALUE PER SHARE – NO LOAD CLASS:
Net Assets	$	366,468,773	$	15,005,228
Shares outstanding		6,878,961		612,679
Net asset value per share (offering price and redemption price)	$	53.27	$	24.49
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS A:
Net Assets	$	114,414,245	$	1,184,822
Shares outstanding		2,224,275		50,517
Net asset value per share (redemption price)	$	51.44	$	23.45
Offering price per share ($51.44 divided by .9425 and $23.45
divided by .9425)	$	54.58	$	24.88
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS C:
Net Assets	$	125,128,259	$	174,480
Shares outstanding		2,624,600		7,737
Net asset value per share (offering price and redemption price)	$	47.68	$	22.55
CALCULATION OF NET ASSET VALUE PER SHARE – INSTITUTIONAL CLASS:
Net Assets	$	205,798,988		N/A
Shares outstanding		3,824,552		N/A
Net asset value per share (offering price and redemption price)	$	53.81		N/A

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, 2019 (Unaudited)


	The Small Cap		The Market
	Opportunities		Opportunities
	Fund		Fund

ASSETS:
Investments in the Master Portfolio, at value*	$	313,189,159	$	89,706,107
Receivable from Adviser		51,193		29,567
Receivable for Fund shares sold		466,063		608,998
Prepaid expenses and other assets		56,427		27,413
Total Assets		313,762,842		90,372,085
LIABILITIES:
Payable for Master Portfolio interest purchased		102,554		604,639
Payable to Directors		7,314		1,892
Payable to Chief Compliance Officer		442		131
Payable for Fund shares repurchased		363,509		4,359
Payable for shareholder servicing fees		55,285		15,738
Payable for distribution fees		32,995		30,829
Accrued expenses and other liabilities		84,274		33,547
Total Liabilities		646,373		691,135
Net Assets	$	313,116,469	$	89,680,950
NET ASSETS CONSIST OF:
Paid in capital	$	247,228,529	$	60,576,791
Accumulated earnings		65,887,940		29,104,159
Net Assets	$	313,116,469	$	89,680,950
CALCULATION OF NET ASSET VALUE PER SHARE – NO LOAD CLASS:
Net Assets	$	206,433,372	$	59,683,555
Shares outstanding		3,281,848		2,175,126
Net asset value per share (offering price and redemption price)	$	62.90	$	27.44
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS A:
Net Assets	$	32,103,850	$	7,592,067
Shares outstanding		527,398		281,429
Net asset value per share (redemption price)	$	60.87	$	26.98
Offering price per share ($60.87 divided by .9425 and $26.98
divided by .9425)	$	64.58	$	28.63
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS C:
Net Assets	$	10,770,027	$	10,926,597
Shares outstanding		185,873		423,533
Net asset value per share (offering price and redemption price)	$	57.94	$	25.80
CALCULATION OF NET ASSET VALUE PER SHARE – INSTITUTIONAL CLASS:
Net Assets	$	63,809,220	$	11,478,731
Shares outstanding		996,034		411,724
Net asset value per share (offering price and redemption price)	$	64.06	$	27.88

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, 2019 (Unaudited)


			The Multi-
	The Alternative		Disciplinary
	Income		Income
	Fund		Fund

ASSETS:
Investments in the Master Portfolio, at value*	$	18,663,077	$	36,368,434
Receivable from Adviser		17,847		12,040
Receivable for Master Portfolio interest sold		—		33,178
Receivable for Fund shares sold		10,995		10,928
Prepaid expenses and other assets		42,630		20,152
Total Assets		18,734,549		36,444,732
LIABILITIES:
Payable for Master Portfolio interest purchased		6,767		—
Payable to Directors		434		840
Payable to Chief Compliance Officer		28		69
Payable for Fund shares repurchased		4,228		44,106
Payable for shareholder servicing fees		1,768		4,192
Payable for distribution fees		5,160		44,192
Accrued expenses and other liabilities		20,135		24,327
Total Liabilities		38,520		117,726
Net Assets	$	18,696,029	$	36,327,006
NET ASSETS CONSIST OF:
Paid in capital	$	18,640,493	$	38,873,941
Accumulated earnings (deficit)		55,536		(2,546,935	)
Net Assets	$	18,696,029	$	36,327,006
CALCULATION OF NET ASSET VALUE PER SHARE – NO LOAD CLASS:
Net Assets	$	4,025,929	$	5,907,344
Shares outstanding		40,966		539,297
Net asset value per share (offering price and redemption price)	$	98.27	$	10.95
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS A:
Net Assets	$	972,809	$	2,536,033
Shares outstanding		10,026		232,663
Net asset value per share (redemption price)	$	97.03	$	10.90
Offering price per share ($97.03 divided by .9425 and $10.90
divided by .9425)	$	102.95	$	11.56
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS C:
Net Assets	$	1,014,687	$	7,787,453
Shares outstanding		10,866		722,504
Net asset value per share (offering price and redemption price)	$	93.38	$	10.78
CALCULATION OF NET ASSET VALUE PER SHARE – INSTITUTIONAL CLASS:
Net Assets	$	12,682,604	$	20,096,176
Shares outstanding		127,365		1,830,897
Net asset value per share (offering price and redemption price)	$	99.58	$	10.98

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

KINETICS MUTUAL FUNDS, INC. — THE FUND

Statement of Assets & Liabilities — (Continued)

June 30, 2019 (Unaudited)


	The Kinetics
	Spin-off and
	Corporate
	Restructuring
	Fund

ASSETS:
Investments, at value⁽¹⁾	$	22,217,201
Cash		3,297
Dividends and interest receivable		8,127
Prepaid expenses and other assets		27,108
Total Assets		22,255,733
LIABILITIES:
Payable to Adviser		4,743
Payable to Directors		511
Payable to Chief Compliance Officer		40
Payable to custodian		1,021
Payable for Fund shares repurchased		13,597
Payable for shareholder servicing fees		2,198
Payable for distribution fees		5,446
Accrued expenses and other liabilities		40,436
Total Liabilities		67,992
Net Assets	$	22,187,741
⁽¹⁾Cost of investments	$	13,892,990
NET ASSETS CONSIST OF:
Paid in capital	$	14,947,278
Accumulated earnings		7,240,463
Net Assets	$	22,187,741
CALCULATION OF NET ASSET VALUE PER SHARE – NO LOAD CLASS:
Net Assets	$	14,481
Shares outstanding		1,172
Net asset value per share (offering price and redemption price)	$	12.36
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS A:
Net Assets	$	3,933,726
Shares outstanding		333,498
Net asset value per share (redemption price)	$	11.80
Offering price per share ($11.80 divided by .9425)	$	12.52
CALCULATION OF NET ASSET VALUE PER SHARE – ADVISOR CLASS C:
Net Assets	$	4,274,179
Shares outstanding		385,291
Net asset value per share (offering price and redemption price)	$	11.09
CALCULATION OF NET ASSET VALUE PER SHARE – INSTITUTIONAL CLASS:
Net Assets	$	13,965,355
Shares outstanding		1,177,676
Net asset value per share (offering price and redemption price)	$	11.86

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, 2019 (Unaudited)


	The Internet			The Global
	Fund			Fund
INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS:
Dividends†	$	216,803		$	34,684
Interest		445,567			67,092
Income from securities lending		69,726			2,972
Expenses allocated from Master Portfolio		(819,019	)		(100,152	)
Net investment income (loss) from Master Portfolio		(86,923	)		4,596
EXPENSES:
Distribution fees – Advisor Class A		3,433			1,500
Distribution fees – Advisor Class C		4,312			17,809
Shareholder servicing fees – Advisor Class A		3,433			1,500
Shareholder servicing fees – Advisor Class C		1,437			5,936
Shareholder servicing fees – No Load Class		143,284			7,884
Transfer agent fees and expenses		49,931			8,892
Reports to shareholders		18,346			1,641
Administration fees		25,556			4,801
Professional fees		9,844			4,621
Directors’ fees		5,137			542
Chief Compliance Officer fees		1,040			113
Registration fees		28,916			25,457
Fund accounting fees		2,707			283
Other expenses		2,582			253
Total expenses		299,958			81,232
Less, expense reimbursement		—			(76,894	)
Net expenses		299,958			4,338
Net investment income (loss)		(386,881	)		258
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized gain (loss) on:
Investments and foreign currency		(83,368	)		1,491
Net change in unrealized appreciation of:
Investments and foreign currency		39,601,372			3,020,967
Net gain on investments		39,518,004			3,022,458
Net increase in net assets resulting from operations	$	39,131,123		$	3,022,716
† Net of foreign taxes withheld of:	$	733		$	1,263

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, 2019 (Unaudited)


	The Paradigm			The Medical
	Fund			Fund
INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS:
Dividends†	$	3,428,893		$	263,383
Interest		1,218,874			1,119
Income from securities lending		101,259			8,289
Expenses allocated from Master Portfolio		(5,199,318	)		(125,866	)
Net investment income (loss) from Master Portfolio		(450,292	)		146,925
EXPENSES:
Distribution fees – Advisor Class A		140,505			1,633
Distribution fees – Advisor Class C		444,144			1,015
Shareholder servicing fees – Advisor Class A		140,505			1,633
Shareholder servicing fees – Advisor Class C		148,048			338
Shareholder servicing fees – No Load Class		436,050			18,832
Shareholder servicing fees – Institutional Class		185,986			—
Transfer agent fees and expenses		98,857			10,628
Reports to shareholders		41,583			2,210
Administration fees		159,990			4,671
Professional fees		43,699			4,893
Directors’ fees		34,581			767
Chief Compliance Officer fees		7,262			163
Registration fees		47,606			25,982
Fund accounting fees		17,853			420
Other expenses		14,549			344
Total expenses		1,961,218			73,529
Less, expense waiver for Institutional Class shareholder
servicing fees		(139,490	)		—
Less, expense reimbursement		(343,898	)		(81,083	)
Net expenses		1,477,830			(7,554	)
Net investment income (loss)		(1,928,122	)		154,479
REALIZED AND UNREALIZED GAIN ON INVESTMENTS ALLOCATED
FROM MASTER PORTFOLIOS:
Net realized gain on:
Investments and foreign currency		3,536,182			514,085
Net change in unrealized appreciation of:
Investments and foreign currency		183,510,953			49,441
Net gain on investments		187,047,135			563,526
Net increase in net assets resulting from operations	$	185,119,013		$	718,005
† Net of foreign taxes withheld of:	$	59,417		$	16,187

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, 2019 (Unaudited)


	The Small Cap			The Market
	Opportunities			Opportunities
	Fund			Fund
INVESTMENT INCOME (LOSS) ALLOCATED FROM MASTER PORTFOLIOS:
Dividends†	$	1,194,517		$	292,949
Interest		1,152,476			405,967
Income from securities lending		16,260			14,338
Expenses allocated from Master Portfolio		(2,078,578	)		(574,092	)
Net investment income from Master Portfolio		284,675			139,162
EXPENSES:
Distribution fees – Advisor Class A		28,645			8,830
Distribution fees – Advisor Class C		38,730			36,711
Shareholder servicing fees – Advisor Class A		28,645			8,830
Shareholder servicing fees – Advisor Class C		12,910			12,237
Shareholder servicing fees – No Load Class		272,922			67,852
Shareholder servicing fees – Institutional Class		53,331			10,507
Transfer agent fees and expenses		35,782			17,065
Reports to shareholders		24,668			4,596
Administration fees		63,598			19,078
Professional fees		19,894			8,600
Directors’ fees		13,765			3,682
Chief Compliance Officer fees		2,899			773
Registration fees		43,386			40,125
Fund accounting fees		6,977			1,926
Other expenses		5,095			1,545
Total expenses		651,247			242,357
Less, expense waiver for Institutional Class shareholder
servicing fees		(39,998	)		(7,880	)
Less, expense reimbursement		(175,503	)		(202,037	)
Net expenses		435,746			32,440
Net investment income (loss)		(151,071	)		106,722
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized loss on:
Investments and foreign currency		(743,608	)		(101,238	)
Net change in unrealized appreciation of:
Investments and foreign currency		52,360,079			18,374,679
Net gain on investments		51,616,471			18,273,441
Net increase in net assets resulting from operations	$	51,465,400		$	18,380,163
† Net of foreign taxes withheld of:	$	43,365		$	4,763

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, 2019 (Unaudited)


				The Multi-
	The Alternative			Disciplinary
	Income			Income
	Fund			Fund
INVESTMENT INCOME ALLOCATED FROM MASTER PORTFOLIOS:
Dividends	$	72,118		$	120,059
Interest		150,187			915,297
Income from securities lending		—			12,373
Expenses allocated from Master Portfolio		(108,438	)		(268,667	)
Net investment income from Master Portfolio		113,867			779,062
EXPENSES:
Distribution fees – Advisor Class A		1,224			3,399
Distribution fees – Advisor Class C		3,847			29,238
Shareholder servicing fees – Advisor Class A		1,224			3,399
Shareholder servicing fees – Advisor Class C		1,282			9,746
Shareholder servicing fees – No Load Class		5,204			7,299
Shareholder servicing fees – Institutional Class		12,767			20,842
Transfer agent fees and expenses		11,746			13,432
Reports to shareholders		2,189			2,827
Administration fees		6,121			9,893
Professional fees		4,992			5,931
Directors’ fees		872			1,691
Chief Compliance Officer fees		180			362
Registration fees		32,280			45,558
Fund accounting fees		466			930
Other expenses		405			820
Total expenses		84,799			155,367
Less, expense waiver for Institutional Class shareholder
servicing fees		(9,575	)		(15,632	)
Less, expense reimbursement		(101,416	)		(119,487	)
Net expenses		(26,192	)		20,248
Net investment income		140,059			758,814
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
ALLOCATED FROM MASTER PORTFOLIOS:
Net realized gain (loss) on:
Investments and foreign currency		(20	)		(17,612	)
Written option contracts expired or closed		31,375			—
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		175,373			1,787,479
Written option contracts		(26,725	)		—
Net gain on investments		180,003			1,769,867
Net increase in net assets resulting from operations	$	320,062		$	2,528,681

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

KINETICS MUTUAL FUNDS, INC. — THE FUND

Statement of Operations — (Continued)

For the Six Months Ended June 30, 2019 (Unaudited)


	The Kinetics
	Spin-off and
	Corporate
	Restructuring
	Fund
INVESTMENT INCOME:
Dividends†	$	208,223
Interest		12,616
Total investment income		220,839
EXPENSES:
Distribution fees – Advisor Class A		4,845
Distribution fees – Advisor Class C		16,441
Shareholder servicing fees – Advisor Class A		4,845
Shareholder servicing fees – Advisor Class C		5,480
Shareholder servicing fees – No Load Class		17
Shareholder servicing fees – Institutional Class		13,447
Investment advisory fees		108,608
Transfer agent fees and expenses		11,886
Reports to shareholders		1,681
Administration fees		11,852
Professional fees		10,332
Directors’ fees		1,126
Chief Compliance Officer fees		212
Registration fees		37,675
Fund accounting fees		2,477
Custodian fees and expenses		2,674
Other expenses		437
Total expenses		234,035
Less, expense waiver for Institutional Class shareholder servicing fees		(10,085	)
Less, expense reimbursement		(61,410	)
Net expenses		162,540
Net investment income		58,299
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on:
Investments and foreign currency		222,060
Net change in unrealized appreciation of:
Investments and foreign currency		4,588,172
Net gain on investments		4,810,232
Net increase in net assets resulting from operations	$	4,868,531
† Net of foreign taxes withheld of:	$	2,350

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

OPERATIONS:
Net investment income (loss)	$	(386,881	)	$	(1,528,279	)	$	258		$	(85,713	)
Net realized gain (loss) on sale of
investments and foreign currency		(83,368	)		32,297,461			1,491			(275,998	)
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		39,601,372			(74,911,350	)		3,020,967			(3,290,792	)
Net increase (decrease) in net assets
resulting from operations		39,131,123			(44,142,168	)		3,022,716			(3,652,503	)
DISTRIBUTIONS TO SHAREHOLDERS:
No Load Class (See Note 5)		—			(29,829,211	)		—			(4,521	)
Advisor Class A (See Note 5)		—			(761,641	)		—			(802	)
Advisor Class C (See Note 5)		—			(385,282	)		—			(3,643	)
Total distributions to shareholders		—			(30,976,134	)		—			(8,966	)
CAPITAL SHARE TRANSACTIONS –
NO LOAD CLASS:
Proceeds from shares sold		2,472,540			15,506,662			1,197,309			1,114,685
Redemption fees		1,086			71,771			275			5,543
Proceeds from shares issued to holders
in reinvestment of dividends		—			29,208,393			—			4,459
Cost of shares redeemed		(8,237,807	)		(32,343,565	)		(505,571	)		(2,135,351	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(5,764,181	)		12,443,261			692,013			(1,010,664	)
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS A:
Proceeds from shares sold		143,583			1,208,292			228,097			160,717
Redemption fees		—			2,647			194			75
Proceeds from shares issued to holders
in reinvestment of dividends		—			701,010			—			733
Cost of shares redeemed		(381,949	)		(1,754,869	)		(73,923	)		(336,656	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(238,366	)		157,080			154,368			(175,131	)
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS C:
Proceeds from shares sold		47,452			617,031			161,303			542,381
Redemption fees		—			673			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			378,088			—			3,544
Cost of shares redeemed		(280,327	)		(816,194	)		(191,580	)		(380,036	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(232,875	)		179,598			(30,277	)		165,889

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018
TOTAL INCREASE (DECREASE) IN
NET ASSETS:	$	32,895,701		$	(62,338,363	)	$	3,838,820		$	(4,681,375	)
NET ASSETS:
Beginning of period		105,813,686			168,152,049			10,961,352			15,642,727
End of period	$	138,709,387		$	105,813,686		$	14,800,172		$	10,961,352
CHANGES IN SHARES OUTSTANDING –
NO LOAD CLASS:
Shares sold		70,605			312,559			178,486			160,540
Shares issued in reinvestments of
dividends and distributions		—			1,071,144			—			815
Shares redeemed		(263,120	)		(730,044	)		(81,677	)		(323,558	)
Net increase (decrease) in
shares outstanding		(192,515	)		653,659			96,809			(162,203	)
CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS A:
Shares sold		4,642			26,425			36,127			23,309
Shares issued in reinvestments of
dividends and distributions		—			27,962			—			134
Shares redeemed		(12,857	)		(40,084	)		(12,053	)		(50,489	)
Net increase (decrease) in
shares outstanding		(8,215	)		14,303			24,074			(27,046	)
CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS C:
Shares sold		1,784			14,737			25,514			84,067
Shares issued in reinvestments of
dividends and distributions		—			17,801			—			691
Shares redeemed		(10,782	)		(24,012	)		(33,469	)		(68,137	)
Net increase (decrease) in
shares outstanding		(8,998	)		8,526			(7,955	)		16,621

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

OPERATIONS:
Net investment income (loss)	$	(1,928,122	)	$	(8,440,870	)	$	154,479		$	176,963
Net realized gain on sale of investments
and foreign currency		3,536,182			126,256,576			514,085			1,558,346
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		183,510,953			(161,220,219	)		49,441			(1,464,481	)
Net increase (decrease) in net assets
resulting from operations		185,119,013			(43,404,513	)		718,005			270,828
DISTRIBUTIONS TO SHAREHOLDERS:
No Load Class (See Note 5)		—			(28,537,272	)		—			(1,297,367	)
Advisor Class A (See Note 5)		—			(9,460,887	)		—			(114,972	)
Advisor Class C (See Note 5)		—			(10,598,549	)		—			(28,691	)
Institutional Class (See Note 5)		—			(14,412,154	)		N/A			N/A
Total distributions to shareholders		—			(63,008,862	)		—			(1,441,030	)
CAPITAL SHARE TRANSACTIONS –
NO LOAD CLASS:
Proceeds from shares sold		13,170,005			82,815,246			120,481			275,511
Redemption fees		5,457			36,638			4			600
Proceeds from shares issued to holders
in reinvestment of dividends		—			27,524,795			—			1,275,339
Cost of shares redeemed		(29,444,400	)		(101,236,433	)		(578,677	)		(1,751,133	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(16,268,938	)		9,140,246			(458,192	)		(199,683	)
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS A:
Proceeds from shares sold		9,032,075			21,835,533			2,720			43,479
Redemption fees		—			435			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			8,391,508			—			106,203
Cost of shares redeemed		(17,605,898	)		(26,515,410	)		(192,629	)		(1,718,121	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(8,573,823	)		3,712,066			(189,909	)		(1,568,439	)
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS C:
Proceeds from shares sold		2,339,619			4,108,371			—			6,203
Redemption fees		419			233			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			9,940,055			—			17,314
Cost of shares redeemed		(6,266,486	)		(15,531,853	)		(158,873	)		(60,909	)
Net decrease in net assets resulting
from capital share transactions		(3,926,448	)		(1,483,194	)		(158,873	)		(37,392	)

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

CAPITAL SHARE TRANSACTIONS –
INSTITUTIONAL CLASS:
Proceeds from shares sold	$	29,813,835		$	55,326,340		$	N/A		$	N/A
Redemption fees		17,338			667			N/A			N/A
Proceeds from shares issued to holders
in reinvestment of dividends		—			12,639,473			N/A			N/A
Cost of shares redeemed		(17,549,379	)		(104,577,445	)		N/A			N/A
Net increase (decrease) in net assets
resulting from capital
share transactions		12,281,794			(36,610,965	)		N/A			N/A
TOTAL INCREASE (DECREASE) IN
NET ASSETS:		168,631,598			(131,655,222	)		(88,969	)		(2,975,716	)
NET ASSETS:
Beginning of period		643,178,667			774,833,889			16,453,499			19,429,215
End of period	$	811,810,265		$	643,178,667		$	16,364,530		$	16,453,499
CHANGES IN SHARES OUTSTANDING –
NO LOAD CLASS:
Shares sold		264,550			1,519,083			4,922			10,660
Shares issued in reinvestments of
dividends and distributions		—			666,945			—			55,235
Shares redeemed		(597,177	)		(1,993,617	)		(23,576	)		(68,554	)
Net increase (decrease) in
shares outstanding		(332,627	)		192,411			(18,654	)		(2,659	)
CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS A:
Shares sold		191,096			412,429			119			1,803
Shares issued in reinvestments of
dividends and distributions		—			210,314			—			4,797
Shares redeemed		(357,512	)		(530,967	)		(8,241	)		(70,696	)
Net increase (decrease) in
shares outstanding		(166,416	)		91,776			(8,122	)		(64,096	)

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS C:
Shares sold		50,571			83,476			—			261
Shares issued in reinvestments of
dividends and distributions		—			268,071			—			811
Shares redeemed		(139,520	)		(328,265	)		(7,024	)		(2,576	)
Net increase (decrease) in
shares outstanding		(88,949	)		23,282			(7,024	)		(1,504	)
CHANGES IN SHARES OUTSTANDING –
INSTITUTIONAL CLASS:
Shares sold		600,611			1,056,356			N/A			N/A
Shares issued in reinvestments of
dividends and distributions		—			303,541			N/A			N/A
Shares redeemed		(349,070	)		(2,078,833	)		N/A			N/A
Net increase (decrease) in
shares outstanding		251,541			(718,936	)		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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018
OPERATIONS:
Net investment income (loss)	$	(151,071	)	$	(1,690,146	)	$	106,722		$	(515,996	)
Net realized gain (loss) on sale of
investments and foreign currency		(743,608	)		1,459,768			(101,238	)		3,265,471
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		52,360,079			(7,770,718	)		18,374,679			(12,163,458	)
Net increase (decrease) in net assets
resulting from operations		51,465,400			(8,001,096	)		18,380,163			(9,413,983	)
DISTRIBUTIONS TO SHAREHOLDERS:
No Load Class (See Note 5)		—			—			—			(4,071,130	)
Advisor Class A (See Note 5)		—			—			—			(550,627	)
Advisor Class C (See Note 5)		—			—			—			(756,822	)
Institutional Class (See Note 5)		—			—			—			(797,447	)
Total distributions to shareholders		—			—			—			(6,176,026	)
CAPITAL SHARE TRANSACTIONS –
NO LOAD CLASS:
Proceeds from shares sold		80,161,987			143,962,162			1,849,540			11,158,690
Redemption fees		10,673			105,311			5,730			22,294
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			4,049,701
Cost of shares redeemed		(75,197,176	)		(107,174,264	)		(2,890,837	)		(7,907,108	)
Net increase (decrease) in net assets
resulting from capital
share transactions		4,975,484			36,893,209			(1,035,567	)		7,323,577
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS A:
Proceeds from shares sold		21,856,703			10,894,936			489,278			2,608,472
Redemption fees		260			42			—			1,069
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			488,996
Cost of shares redeemed		(3,376,109	)		(11,614,360	)		(915,188	)		(2,750,126	)
Net increase (decrease) in net assets
resulting from capital
share transactions		18,480,854			(719,382	)		(425,910	)		348,411

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS C:
Proceeds from shares sold	$	1,736,716		$	2,267,642		$	660,858		$	2,488,206
Redemption fees		—			61			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			710,825
Cost of shares redeemed		(1,235,078	)		(1,950,729	)		(419,538	)		(898,991	)
Net increase in net assets resulting
from capital share transactions		501,638			316,974			241,320			2,300,040
CAPITAL SHARE TRANSACTIONS –
INSTITUTIONAL CLASS:
Proceeds from shares sold		20,655,316			59,836,127			760,160			4,583,098
Redemption fees		281			194			—			3,077
Proceeds from shares issued to holders
in reinvestment of dividends		—			—			—			772,205
Cost of shares redeemed		(6,245,393	)		(46,387,833	)		(1,140,478	)		(4,061,116	)
Net increase (decrease) in net assets
resulting from capital
share transactions		14,410,204			13,448,488			(380,318	)		1,297,264
TOTAL INCREASE (DECREASE) IN
NET ASSETS:		89,833,580			41,938,193			16,779,688			(4,320,717	)
NET ASSETS:
Beginning of period		223,282,889			181,344,696			72,901,262			77,221,979
End of period	$	313,116,469		$	223,282,889		$	89,680,950		$	72,901,262
CHANGES IN SHARES OUTSTANDING –
NO LOAD CLASS:
Shares sold		1,323,534			2,475,834			72,712			409,732
Shares issued in reinvestments of
dividends and distributions		—			—			—			184,918
Shares redeemed		(1,238,543	)		(1,892,831	)		(118,491	)		(293,818	)
Net increase (decrease) in
shares outstanding		84,991			583,003			(45,779	)		300,832

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
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018
CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS A:
Shares sold		373,002			181,646			19,817			96,994
Shares issued in reinvestments of
dividends and distributions		—			—			—			22,681
Shares redeemed		(56,519	)		(206,344	)		(37,359	)		(106,854	)
Net increase (decrease) in
shares outstanding		316,483			(24,698	)		(17,542	)		12,821
CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS C:
Shares sold		31,208			42,783			27,642			95,868
Shares issued in reinvestments of
dividends and distributions		—			—			—			34,389
Shares redeemed		(21,496	)		(36,924	)		(17,467	)		(35,654	)
Net increase in shares outstanding		9,712			5,859			10,175			94,603
CHANGES IN SHARES OUTSTANDING –
INSTITUTIONAL CLASS:
Shares sold		332,808			1,013,611			29,978			164,990
Shares issued in reinvestments of
dividends and distributions		—			—			—			34,737
Shares redeemed		(102,969	)		(775,830	)		(45,605	)		(150,570	)
Net increase (decrease) in
shares outstanding		229,839			237,781			(15,627	)		49,157

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 Income Fund
	For the						For the
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

OPERATIONS:
Net investment income	$	140,059		$	212,204		$	758,814		$	1,740,685
Net realized gain (loss) on sale of
investments, foreign currency and
written options		31,355			12,211			(17,612	)		(106,042	)
Net change in unrealized appreciation
(depreciation) of investments, foreign
currency and written options		148,648			(52,473	)		1,787,479			(2,045,258	)
Net increase (decrease) in net assets
resulting from operations		320,062			171,942			2,528,681			(410,615	)
DISTRIBUTIONS TO SHAREHOLDERS:
No Load Class (See Note 5)		(33,323	)		(43,839	)		(126,497	)		(279,550	)
Advisor Class A (See Note 5)		(6,915	)		(7,366	)		(54,636	)		(135,583	)
Advisor Class C (See Note 5)		(5,010	)		(2,517	)		(141,080	)		(274,465	)
Institutional Class (See Note 5)		(114,042	)		(157,514	)		(464,434	)		(1,052,523	)
Total distributions to shareholders		(159,290	)		(211,236	)		(786,647	)		(1,742,121	)
CAPITAL SHARE TRANSACTIONS –
NO LOAD CLASS:
Proceeds from shares sold		276,602			1,775,799			545,480			1,580,972
Redemption fees		—			693			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		29,248			38,990			122,822			269,844
Cost of shares redeemed		(580,323	)		(2,508,132	)		(1,168,891	)		(2,346,967	)
Net decrease in net assets resulting
from capital share transactions		(274,473	)		(692,650	)		(500,589	)		(496,151	)
CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS A:
Proceeds from shares sold		129,033			200,164			45,226			740,005
Proceeds from shares issued to holders
in reinvestment of dividends		6,610			7,098			47,547			120,015
Cost of shares redeemed		(103,345	)		(769,557	)		(498,509	)		(2,516,680	)
Net increase (decrease) in net assets
resulting from capital
share transactions		32,298			(562,295	)		(405,736	)		(1,656,660	)

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 Income Fund
	For the						For the
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

CAPITAL SHARE TRANSACTIONS –
ADVISOR CLASS C:
Proceeds from shares sold	$	—		$	100,725		$	250,451		$	2,550,446
Proceeds from shares issued to holders
in reinvestment of dividends		4,673			2,361			121,618			240,821
Cost of shares redeemed		(105,110	)		(506,070	)		(674,206	)		(1,640,422	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(100,437	)		(402,984	)		(302,137	)		1,150,845
CAPITAL SHARE TRANSACTIONS –
INSTITUTIONAL CLASS:
Proceeds from shares sold		1,320,103			2,595,166			863,716			4,284,382
Redemption fees		—			21			—			—
Proceeds from shares issued to holders
in reinvestment of dividends		114,001			157,456			459,890			1,044,349
Cost of shares redeemed		(1,578,824	)		(5,023,911	)		(2,769,293	)		(13,935,784	)
Net increase (decrease) in net assets
resulting from capital
share transactions		(144,720	)		2,271,268			(1,445,687	)		(8,607,053	)
TOTAL DECREASE IN NET ASSETS:		(326,560	)		(3,968,491	)		(912,115	)		(11,761,755	)
NET ASSETS:
Beginning of period		19,022,589			22,991,080			37,239,121			49,000,876
End of period	$	18,696,029		$	19,022,589		$	36,327,006		$	37,239,121
CHANGES IN SHARES OUTSTANDING –
NO LOAD CLASS:
Shares sold		2,825			18,217			50,167			144,240
Shares issued in reinvestments of
dividends and distributions		298			401			11,291			25,153
Shares redeemed		(5,920	)		(25,771	)		(108,823	)		(215,707	)
Net decrease in shares outstanding		(2,797	)		(7,153	)		(47,365	)		(46,314	)
CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS A:
Shares sold		1,337			2,079			4,133			67,860
Shares issued in reinvestments of
dividends and distributions		68			74			4,394			11,231
Shares redeemed		(1,068	)		(8,043	)		(46,016	)		(232,124	)
Net increase (decrease) in
shares outstanding		337			5,890			(37,489	)		(153,033	)

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 Income Fund
	For the						For the
	Period Ended			For the			Period Ended			For the
	June 30,			Year Ended			June 30,			Year Ended
	2019			December 31,			2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

CHANGES IN SHARES OUTSTANDING –
ADVISOR CLASS C:
Shares sold		—			1,088			23,366			237,920
Shares issued in reinvestments of
dividends and distributions		50			25			11,363			22,803
Shares redeemed		(1,132	)		(5,485	)		(62,890	)		(153,690	)
Net increase (decrease) in
shares outstanding		(1,082	)		(4,372	)		(28,161	)		107,033
CHANGES IN SHARES OUTSTANDING –
INSTITUTIONAL CLASS:
Shares sold		13,293			26,221			79,109			391,889
Shares issued in reinvestments of
dividends and distributions		1,147			1,595			42,180			97,116
Shares redeemed		(15,886	)		(50,795	)		(253,477	)		(1,279,794	)
Net increase (decrease) in
shares outstanding		(1,446	)		22,979			(132,188	)		(790,789	)

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

KINETICS MUTUAL FUNDS, INC. — THE FUND

Statements of Changes in Net Assets — (Continued)


	The Kinetics Spin-off and
	Corporate Restructuring Fund
	For the
	Period Ended			For the
	June 30,			Year Ended
	2019			December 31,
	(Unaudited)			2018
OPERATIONS:
Net investment income (loss)	$	58,299		$	(166,846	)
Net realized gain (loss) on sale of investments and foreign currency		222,060			(117,499	)
Net change in unrealized appreciation (depreciation) of investments and foreign currency		4,588,172			(1,246,793	)
Net increase (decrease) in net assets resulting from operations		4,868,531			(1,531,138	)
DISTRIBUTIONS TO SHAREHOLDERS:
No Load Class (See Note 5)		—			(506	)
Advisor Class A (See Note 5)		—			(153,489	)
Advisor Class C (See Note 5)		—			(201,832	)
Institutional Class (See Note 5)		—			(525,309	)
Total distributions to shareholders		—			(881,136	)
CAPITAL SHARE TRANSACTIONS – NO LOAD CLASS:
Proceeds from shares sold		—			2,600
Proceeds from shares issued to holders in reinvestment of dividends		—			506
Cost of shares redeemed		—			—
Net increase in net assets resulting from capital share transactions		—			3,106
CAPITAL SHARE TRANSACTIONS – ADVISOR CLASS A:
Proceeds from shares sold		261,907			83,577
Proceeds from shares issued to holders in reinvestment of dividends		—			149,160
Cost of shares redeemed		(500,430	)		(823,693	)
Net decrease in net assets resulting from capital share transactions		(238,523	)		(590,956	)
CAPITAL SHARE TRANSACTIONS – ADVISOR CLASS C:
Proceeds from shares sold		21,995			40,259
Proceeds from shares issued to holders in reinvestment of dividends		—			201,572
Cost of shares redeemed		(880,877	)		(1,087,034	)
Net decrease in net assets resulting from capital share transactions		(858,882	)		(845,203	)

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

KINETICS MUTUAL FUNDS, INC. — THE FUND

Statement of Changes in Net Assets — (Continued)


	The Kinetics Spin-off and
	Corporate Restructuring Fund
	For the
	Period Ended			For the
	June 30,			Year Ended
	2019			December 31,
	(Unaudited)			2018
CAPITAL SHARE TRANSACTIONS – INSTITUTIONAL CLASS
Proceeds from shares sold	$	236,671		$	300,943
Proceeds from shares issued to holders in reinvestment of dividends		—			442,957
Cost of shares redeemed		(538,519	)		(2,088,988	)
Net decrease in net assets resulting from capital share transactions		(301,848	)		(1,345,088	)
TOTAL INCREASE (DECREASE) IN NET ASSETS:		3,469,278			(5,190,415	)
NET ASSETS:
Beginning of period		18,718,463			23,908,878
End of period	$	22,187,741		$	18,718,463
CHANGES IN SHARES OUTSTANDING – NO LOAD CLASS:
Shares sold		—			195
Shares issued in reinvestments of dividends and distributions		—			52
Shares redeemed		—			—
Net increase in shares outstanding		—			247
CHANGES IN SHARES OUTSTANDING – ADVISOR CLASS A:
Shares sold		24,171			6,872
Shares issued in reinvestments of dividends and distributions		—			16,073
Shares redeemed		(44,882	)		(73,949	)
Net decrease in shares outstanding		(20,711	)		(51,004	)
CHANGES IN SHARES OUTSTANDING – ADVISOR CLASS C:
Shares sold		2,038			3,328
Shares issued in reinvestments of dividends and distributions		—			23,010
Shares redeemed		(84,024	)		(102,216	)
Net decrease in shares outstanding		(81,986	)		(75,878	)
CHANGES IN SHARES OUTSTANDING – INSTITUTIONAL CLASS:
Shares sold		20,061			25,225
Shares issued in reinvestments of dividends and distributions		—			47,528
Shares redeemed		(48,097	)		(182,315	)
Net decrease in shares outstanding		(28,036	)		(109,562	)

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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements

June 30, 2019 (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”), The Multi-Disciplinary Income Fund (“Multi-Disciplinary Income”) and The Kinetics Spin-off and Corporate Restructuring Fund (“Spin-off Fund”). 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), February 11, 2008 (Multi-Disciplinary Income) and May 4, 2007 (Spin-off Fund). The Spin-off Fund completed a plan of reorganization at the close of business on December 8, 2017 to begin operations under the Company. Prior to December 8, 2017, the Spin-off Fund, was known as Horizon Spin-off and Corporate Restructuring a series of Investment Managers Series Trust. Each series, except the Spin-off Fund, 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”). The Spin-off Fund does not invest all of its investable assets in a Master Portfolio and will directly acquire and manage its own portfolio of securities.

On April 28, 2000 (January 31, 2006, with respect to Market Opportunities, June 29, 2007, with respect to Alternative Income, and February 11, 2008, with respect to Multi-Disciplinary Income), each series in the Company, except for the Spin-off Fund, entered into a master-feeder fund structure. By entering into this structure, each series, except for the Spin-off Fund, (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, 2019 (Unaudited)

Each Feeder Fund’s respective interest in the corresponding Master Portfolio as of June 30, 2019, is as follows:


	Interest in
	Master Portfolio
The Internet Fund	99.978%
The Global Fund	99.930%
The Paradigm Fund	97.702%
The Medical Fund	99.772%
The Small Cap Opportunities Fund	99.978%
The Market Opportunities Fund	99.968%
The Alternative Income Fund	99.317%
The Multi-Disciplinary Income Fund	99.484%

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, 2019, each of the 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, 2019, each of the 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, 2019, each of the 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, 2019, the Paradigm, Small Cap, Market Opportunities, Alternative Income, Multi-Disciplinary Income and Spin-off 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 contractually agreed to waive the 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, 2019 (Unaudited)

Each class of shares for each Feeder Fund and the Spin-off Fund has identical rights and privileges except with respect to the Rule 12b-1 fees paid by the Advisor Class A and Advisor Class C shares, the front-end sales charge on the Advisor Class A shares, the contingent deferred sales charge on Class C, the shareholder servicing fees paid by the Advisor Class A, Advisor Class C, No Load Class and Institutional Class shares, voting rights on matters pertaining to a single class of shares and the exchange privileges of each class of shares. Shares of each Feeder Fund and the Spin-off Fund will assess a 2.00% redemption fee (with exceptions) on shares redeemed or exchanged within 30 days of purchase. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class based on its relative net assets.

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

2. Significant Accounting Policies

Security Valuation

Master Portfolios and Spin-off Fund equity securities that are listed on a 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, including exchange-traded funds, that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted equity securities and listed equity securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Futures, options on futures and swap contracts that are listed or traded on a national securities exchange, commodities exchange,

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

contract market or over-the-counter markets and are freely transferable will be 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 a composite option price is not available, then a quote provided by one of the authorized pricing vendors will be used. If neither a composite price nor a quote from an authorized pricing provider is available, and it is the day of expiration or post-expiration, expiring options will be priced at intrinsic value. Non-exchange-traded options for which over-the-counter quotations are not readily available are valued at the mean between the last bid and asked quotations. Debt obligations (including convertible securities) that are either investment grade or below investment grade and irrespective of days to maturity are valued at evaluated mean by one of the authorized third party pricing agents which rely on various valuation methodologies such as matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. Certain instruments, such as repurchase agreements and demand notes, do not have values from third parties and are valued at amortized cost. Investments in registered open-end investment companies (including money market funds), other than exchange-traded funds, are valued at their reported net asset value (“NAV”).

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 and Spin-off Fund. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Adviser or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

or formula produced by third parties independent of the Adviser; (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At June 30, 2019, 0.00% and 0.00% of the net assets of The Internet Portfolio and The Paradigm Portfolio, respectively, were fair valued securities. The other Master Portfolios and Spin-off Fund did not hold any fair valued securities at June 30, 2019.

Bitcoin

The Master Portfolios and Spin-off Fund may invest in Grayscale Bitcoin Trust, a Delaware statutory trust (“Bitcoin Trust”) that invests in bitcoins. From time to time, the Bitcoin Trust issues creation units in exchange for bitcoins and distributes bitcoins in exchange for redemption units. The performance of the Bitcoin Trust is intended to reflect changes in the value of the Trust’s bitcoin investments. At June 30, 2019, 23.4%, 16.0%, 3.6%, 1.5%, and 10.1% of the net assets of The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Small Cap Opportunities Portfolio and The Market Opportunities Portfolio, respectively, were invested in the Bitcoin Trust. Investments in bitcoins produce non qualifying income under subchapter M of the Internal Revenue Code.

Bitcoin is a decentralized digital currency that enables instant transfers to anyone, anywhere in the world. Managing transactions in bitcoins occurs via an open source, cryptographic protocol central authority. The Bitcoin Network is an online, end-user-to-end-user network that hosts the public transaction ledger, known as the Blockchain, and the source code that comprises the basis for the cryptographic and algorithmic protocols governing the Bitcoin Network. No single entity owns or operates the Bitcoin Network, the infrastructure of which is collectively maintained by a decentralized user base. Since the Bitcoin Network is decentralized, it does not rely on either governmental authorities or financial institutions to create, transmit or determine the value of bitcoins. Rather, the value of bitcoins is determined by the supply of and demand for bitcoins in the global bitcoin exchange market for the trading of bitcoins, which consists of transactions on electronic bitcoin exchanges (“Bitcoin Exchanges”). Pricing on Bitcoin Exchanges and other venues can be volatile and can adversely affect the value of the Bitcoin Trust. Currently, there is relatively small use of bitcoins in the retail and commercial marketplace in comparison to the relatively large use of bitcoins by speculators, thus contributing to price volatility that could adversely affect a Master Portfolio’s direct or indirect

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

investment in the Bitcoin Trust. Bitcoin transactions are irrevocable, and stolen or incorrectly transferred bitcoins may be irretrievable. As a result, any incorrectly executed bitcoin transactions could adversely affect the value of a Master Portfolio’s direct or indirect investment in the Bitcoin Trust. Shares of the Bitcoin Trust may trade at a premium or discount to the net asset value of the Bitcoin Trust. The price of bitcoins is set in transfers by mutual agreement or barter as well as the number of merchants that accept bitcoins. Because bitcoins are digital files that can be transferred without the involvement of intermediaries or third parties, there are little or no transaction costs in direct end-user-to-end-user transactions. Bitcoins can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. dollar, at rates determined by the Bitcoin Exchanges. Additionally, third party service providers such as Bitcoin Exchanges are also used for transfers but they may charge significant fees for processing transactions.

As bitcoins have grown in popularity, the U.S. Congress and a number of federal and state agencies (including the Financial Crimes Enforcement Network (FinCEN), the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the Financial Industry Regulatory Authority, the Consumer Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, and state financial institution regulators) have begun to examine the operations of the network that facilitates bitcoins, bitcoin users and the Bitcoin Exchanges, with particular focus on (1) the extent to which bitcoins can be used to launder the proceeds of illegal activities or fund criminal or terrorist enterprises, (2) the safety and soundness of the Bitcoin Exchange or other service-providers that hold bitcoins for users and (3) other risks to investors and consumers who hold and use bitcoins. Ongoing and future regulatory actions may alter, perhaps to a materially adverse extent, the value of a Master Portfolio’s and it’s Subsidiary’s investment in the Bitcoin Trust or the ability of the Bitcoin Trust to continue to operate.

Repurchase Agreements

Each Master Portfolio and the Spin-off Fund 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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

in repurchase agreements, it is the Trust’s policy that the Master Portfolios and Spin-off Fund 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 and Spin-off Fund in each repurchase agreement. If the seller defaults and the value of the collateral declines, realization of the collateral by the Master Portfolio and Spin-off Fund may be delayed or limited.

Written Options

The Master Portfolios and Spin-off Fund may write (sell) call or put options for trading or hedging purposes. When a Master Portfolio or Spin-off Fund writes an option, an amount equal to the premium received by the Master Portfolio or Spin-off Fund 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 or Spin-off Fund 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 or Spin-off Fund enters into a closing purchase transaction, the Master Portfolio or Spin-off Fund 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 or Spin-off Fund realizes a gain or loss from the sale of the security (or closing of the short sale). As collateral for uncovered written options, each of the Master Portfolios and Spin-off Fund are required under the 1940 Act to maintain assets consisting of cash, cash equivalents or unencumbered, 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.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

Foreign Currency Translations

The books and records of the Master Portfolios and Spin-off Fund are maintained in U.S. dollars. For the Master Portfolios and Spin-off Fund, 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 and Spin-off Fund do not isolate and treat as ordinary income that portion of the results of operations arising as a result of changes in the exchange rate from the fluctuations arising from changes in the market prices of securities held during the period. Such fluctuations are included with the net realized and unrealized gain or loss from investments. However, for federal income tax purposes, the Master Portfolios and Spin-off Fund 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 and Spin-off Fund may invest in restricted securities. These securities are valued by the Master Portfolios and Spin-off Fund after giving due consideration to pertinent factors including recent private sales, market conditions and the issuer’s financial performance. The Master Portfolios and Spin-off Fund have no right to require registration of unregistered securities. The 144A securities have been deemed to be liquid by the Master Portfolio and Spin-off Fund’s Adviser under the supervision of the Board of Trustees/Directors. At June 30, 2019, the following Master Portfolios and Spin-off Fund held securities restricted to institutional investors (144A securities):


		Percentage of
	Market Value	Net Assets
The Multi-Disciplinary Income Portfolio	$9,062,233	24.79%

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

An illiquid asset is any asset which may not be sold or disposed of in current market conditions within seven days without the sale or disposition significantly changing the market value of the investment. At June 30, 2019, the following Master Portfolios and Spin-off Fund held illiquid securities:


				Percentage of
	Market Value			Net Assets
The Internet Portfolio	$	—	*		0.00	%
The Paradigm Portfolio		—	*		0.00	%
The Multi-Disciplinary Income Portfolio		160,760			0.44	%

* Amount is less than $0.50

When-Issued Securities

The Master Portfolios and Spin-off Fund 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 and Spin-off Fund record purchases of when-issued securities and reflect the values of such securities in determining net asset value in the same manner as other portfolio securities. The Master Portfolios and Spin-off Fund 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 and Spin-off Fund may lend its portfolio securities to broker-dealers by entering directly into lending arrangements with such broker-dealers or indirectly through repurchase agreements with respect to no more than 33 ¹/₃% of the total assets of each Master Portfolio and Spin-off Fund (including any collateral posted) or 50% of the total assets of each Master Portfolio and Spin-off Fund (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 and Spin-off Fund receive interest on the collateral received as well as a fee for the securities loaned.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

Expense Allocation

Common expenses incurred by the Funds are allocated among the Funds (i) based upon relative average net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the 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 a 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 intended that the Spin-off Fund will be managed to satisfy the requirements of subchapter M of the Internal Revenue Code.

The consolidated financial statements include the accounts of Cayman, Ltd., Cayman wholly-owned Controlled Foreign Corporations (“CFCs”) and the accounts of Delaware Corporations (“Cayman” or “Delaware”, respectively, or “Subsidiaries” for both). The respective Master Portfolios hold a CFC: Internet Portfolio, Global Portfolio, Paradigm Portfolio, Small Cap Opportunities Portfolio and Market Opportunities Portfolio. The respective Master Portfolios hold a Delaware subsidiary: Internet Portfolio, Global Portfolio and Market Opportunities Portfolio. The investment of up to 25% of a Master Portfolio’s assets in the Subsidiaries is a structure that has been used by a number of Registered Investment Companies (“RICs”), avoiding bad income generation by indirectly making commodities-related investments. These investments would not generate qualifying income if they were made directly by the RIC. Section 851(b) of the Internal Revenue Code provides that income earned by a CFC or controlled subsidiary, such as the Subsidiaries, will be treated as qualifying income for a RIC provided the Subsidiaries distribute those earnings out to the RIC each year. If the IRS were to determine that income derived from a Master Portfolio’s investment in its Subsidiaries do not constitute qualifying income

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

and if such positions were upheld by a court, or if future legislation or Treasury regulations were to adversely affect the tax treatment of such investments, then the corresponding Feeder Fund might cease to qualify as a RIC and could be required to reduce its exposure to such investments. In that event, a Feeder Fund’s taxable income would be subject to tax at the Feeder Fund level at regular corporate tax rates (without reduction for distributions to shareholders) and to a further tax at the shareholder level when such income is distributed. In such an event, in order to re-qualify for taxation as a regulated investment company, the Feeder Fund may be required to recognize unrealized gains, pay substantial taxes and interest and make certain distributions.

It is the Funds’ policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and the Funds intend to distribute investment company net taxable income and net capital gains to shareholders.

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 realized gain items for financial statement and tax purposes. Additionally, the 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, 2019, open tax years include the tax years ended December 31, 2015 through December 31, 2018. 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.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

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 accretion of discounts on the effective 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 incorporated in accordance with the Company’s understanding of the applicable country’s tax rules and rates.

3. Investment Adviser

The Trust has entered into Investment Advisory Agreements (the “Agreements”) with Horizon 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 and Spin-off Fund. 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 Spinoff Fund compensates the Adviser for its management services at the annual rate of 1.00% of the Fund’s average daily net assets.

The Adviser has agreed to waive a portion of its advisory fee and/or reimburse certain operating expenses as deemed appropriate through at least May 1, 2020. The Adviser may discontinue the waiver/reimbursement at any time after May 1, 2020; these waivers/reimbursements are not subject to recapture. Operating expenses exclude brokerage commissions, borrowing costs on

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

securities sold short, short dividends, interest expense, taxes, acquired fund fees and expenses and extraordinary expenses. Below are operating expense limitations by each share class of each of the funds:


	The Internet			The Global
	Fund			Fund
No Load Class		1.89	%		1.39	%
Class A		2.14	%		1.64	%
Class C		2.64	%		2.14	%

	The Paradigm			The Medical
	Fund			Fund
No Load Class		1.64	%		1.39	%
Class A		1.89	%		1.64	%
Class C		2.39	%		2.14	%
Institutional Class		1.44	%		N/A

	The Small Cap			The Market
	Opportunities			Opportunities
	Fund			Fund
No Load Class		1.64	%		1.40	%
Class A		1.89	%		1.65	%
Class C		2.39	%		2.15	%
Institutional Class		1.44	%		1.20	%

	The			The Multi-
	Alternative			Disciplinary
	Income			Income
	Fund			Fund
No Load Class		0.95	%		1.49	%
Class A		1.20	%		1.74	%
Class C		1.70	%		2.24	%
Institutional Class		0.75	%		1.29	%

	The
	Spin-off
	Fund
No Load Class		1.45	%
Class A		1.50	%
Class C		2.25	%
Institutional Class		1.25	%

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

For the period ended June 30, 2019, the rate earned by the Adviser from the Master Portfolios and Spin-off Fund and the waived fees/reimbursed expenses for the Funds are as follows:


	The Internet			The Global
	Fund			Fund
Annual Advisory Rate		1.25	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	—		$	76,894

	The Paradigm			The Medical
	Fund			Fund

Annual Advisory Rate		1.25	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	343,898		$	81,083
Expenses Reimbursed by Adviser through
institutional class shareholder servicing
fee waiver	$	139,490			N/A

	The Small Cap			The Market
	Opportunities			Opportunities
	Fund			Fund
Annual Advisory Rate		1.25	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	175,503		$	202,037
Expenses Reimbursed by Adviser through
institutional class shareholder servicing
fee waiver	$	39,998		$	7,880

	The			The Multi-
	Alternative			Disciplinary
	Income			Income
	Fund			Fund
Annual Advisory Rate		0.90	%		1.25	%
Expenses Reimbursed by Adviser through
voluntary waiver	$	101,416		$	119,487
Expenses Reimbursed by Adviser through
institutional class shareholder
servicing fee waiver	$	9,575		$	15,632

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)


	The
	Spin-off
	Fund
Annual Advisory Rate	1.00%

Expenses Reimbursed by Adviser through
voluntary waiver	$61,410

Expenses Reimbursed by Adviser through
institutional class shareholder servicing
fee waiver	$10,085

The Adviser receives the shareholder servicing fees from the No Load Class, Advisor Class A and Advisor Class C shares of a Fund pursuant to a Shareholder Servicing Agreement in the amount equal to 0.25% of the Funds’ 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 Funds’ 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 Funds’ average daily net assets attributable to Institutional Class shares until at least May 1, 2020. For the period ended June 30, 2019, 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, Multi-Disciplinary Income and Spinoff Funds.


	Shareholder Servicing
	Expenses for the
	period ended
	June 30, 2019
The Internet Fund	$	148,154
The Global Fund		15,320
The Paradigm Fund		910,589
The Medical Fund		20,803
The Small Cap Opportunities Fund		367,808
The Market Opportunities Fund		99,426
The Alternative Income Fund		20,477
The Multi-Disciplinary Income Fund		41,286
The Spin-off Fund		23,789

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

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 Funds.

For the period ended June 30, 2019, the Funds were allocated approximately $13,000 for the services of the Chief Compliance Officer employed by the Adviser.

The Company, on behalf of the Funds, has adopted two Retail Distribution Plans pursuant to Rule 12b-1 under the 1940 Act (each a “12b-1 Plan”). One 12b-1 Plan is for Advisor Class A shares, while the other 12b-1 Plan is for Advisor Class C shares. Under the 12b-1 Plan for Advisor Class A shares, 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 12b-1 Plan. During the period ended June 30, 2019, payments under the 12b-1 Plan for the Advisor Class A shares of the Internet, Global, Paradigm, Medical, Small Cap, Market Opportunities, Alternative Income, Multi-Disciplinary Income and Spin-off Funds were limited to 0.25% of the average daily net asset value of such shares of such Funds. Under the second 12b-1 Plan, Advisor Class C shares pay an annual rate of 0.75% of the average daily net asset value of such shares.


	12b-1 Expenses for
	the period ended
	June 30, 2019
	Advisor Class A		Advisor Class C
The Internet Fund	$	3,433	$	4,312
The Global Fund		1,500		17,809
The Paradigm Fund		140,505		444,144
The Medical Fund		1,633		1,015
The Small Cap Opportunities Fund		28,645		38,730
The Market Opportunities Fund		8,830		36,711
The Alternative Income Fund		1,224		3,847
The Multi-Disciplinary Income Fund		3,399		29,238
The Spin-off Fund		4,845		16,441

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

Kinetics Funds Distributor, LLC (the “Distributor”) acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. The Distributor is an affiliate of the Adviser.


	Distributor Sales
	Load Fees for the
	period ended
	June 30, 2019
The Internet Fund	$	—
The Global Fund		69
The Paradigm Fund		9,298
The Medical Fund		—
The Small Cap Opportunities Fund		2,233
The Market Opportunities Fund		751
The Alternative Income Fund		537
The Multi-Disciplinary Income Fund		122
The Spin-off Fund		3

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, 2018, each Fund recorded the following reclassifications to the accounts listed below:


	INCREASE/(DECREASE)
	Accumulated
	Earnings
	(Deficit)			Paid In Capital
The Internet Fund	$	(3,671,159	)	$	3,671,159
The Global Fund		96,636			(96,636	)
The Paradigm Fund		63,983,762			(63,983,762	)
The Medical Fund		(135,633	)		135,633
The Small Cap Opportunities Fund		8,444,103			(8,444,103	)
The Market Opportunities Fund		5,499,335			(5,499,335	)
The Alternative Income Fund		2,172,468			(2,172,468	)
The Multi-Disciplinary Income Fund		—			—
The Spin-off Fund		305,339			(305,339	)

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

5. Income Taxes

At December 31, 2018, the components of accumulated earnings (losses) on a tax basis were as follows:


	Internet			Global			Paradigm			Medical
Net Unrealized Appreciation
(Depreciation)	$	(4,479,838	)	$	821,657		$	171,515,040		$	4,211,630
Undistributed Ordinary Income		584,678			—			—			33,026
Undistributed Long-Term
Capital Gains		1,370,903			—			—			145,550
Total Distributable Earnings	$	1,955,581		$	—		$	—		$	178,576
Other Accumulated Loss		(175,115	)		(328,099	)		(2,009,670	)		—
Total Accumulated Gain (Loss)	$	(2,699,372	)	$	493,558		$	169,505,370		$	4,390,206

										Multi-
	Small Cap			Market			Alternative			Disciplinary
	Opportunities			Opportunities			Income			Income
Net Unrealized Appreciation
(Depreciation)	$	18,831,624		$	11,178,621		$	(99,324	)	$	(2,723,858	)
Undistributed Ordinary Income		—			—			20,837			46,024
Undistributed Long-Term
Capital Gains		—			—			—			—
Total Distributable Earnings	$	—		$	—		$	20,837		$	46,024
Other Accumulated Loss		(4,409,084	)		(454,625	)		(26,749	)		(1,611,135	)
Total Accumulated Gain (Loss)	$	14,422,540		$	10,723,996		$	(105,236	)	$	(4,288,969	)

	Spin-off
	Fund
Net Unrealized Appreciation	$	3,971,944
Undistributed Ordinary Income		—
Undistributed Long-Term
Capital Gains		—
Total Distributable Earnings	$	—
Other Accumulated Loss		(1,600,012	)
Total Accumulated Gain	$	2,371,932

At December 31, 2018, the Funds had no accumulated net realized capital loss carryforwards that will expire in 2019.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

At December 31, 2018, the Global Fund had $137,054 in short-term capital loss carryforwards without expiration and $190,565 in long-term capital loss carryforwards without expiration. The Multi-Disciplinary Income Fund had $6,135 in short-term capital loss carryforwards without expiration and $1,605,000 in long-term capital loss carryforwards without expiration.

For the year ended December 31, 2018, the following Funds utilized capital loss carryforwards:


	Capital Loss
	Carryforward
The Internet Fund	$	—
The Global Fund		—
The Paradigm Fund		60,551,088
The Medical Fund		—
The Small Cap Opportunities Fund		1,512,633
The Market Opportunities Fund		—
The Alternative Income Fund		31,179
The Multi-Disciplinary Income Fund		—
The Spin-off Fund		—

For the year ended December 31, 2018, the Paradigm Fund, the Small Cap Opportunities Fund, the Market Opportunities Fund and the Alternative Income Fund had $55,234,994, $6,712,069, $906,590 and $2,172,468 of capital loss carryforwards expire without being utilized.

At December 31, 2018, the following Funds deferred, on a tax basis, post-October losses:


	Late Year			Post-October
	Ordinary			Capital Loss
	Loss Deferral			Deferral
The Internet Fund	$	—		$	—
The Global Fund		(480	)		—
The Paradigm Fund		(1,768,802	)		—
The Medical Fund		—			—
The Small Cap Opportunities Fund		(3,865,853	)		(40,662	)
The Market Opportunities Fund		(275,163	)		(164,377	)
The Alternative Income Fund		—			—
The Multi-Disciplinary Income Fund		—			—
The Spin-off Fund		(102,987	)		(1,003,864	)

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

The tax components of dividends paid during the six month period ended June 30, 2019 and the year ended December 31, 2018, are:


	The Internet Fund				The Global Fund
	Ordinary		Long-Term		Ordinary		Long-Term
	Income		Capital Gains		Income		Capital Gains
	Distribution		Distribution		Distribution		Distribution
2019	$	—	$	—	$	—	$	—
2018	$	777,455	$	30,198,679	$	—	$	8,966

	The Paradigm Fund				The Medical Fund
	Ordinary		Long-Term		Ordinary		Long-Term
	Income		Capital Gains		Income		Capital Gains
	Distribution		Distribution		Distribution		Distribution
2019	$	—	$	—	$	—	$	—
2018	$	—	$	63,008,862	$	176,000	$	1,265,030

	The Small Cap				The Market
	Opportunities Fund				Opportunities Fund
	Ordinary		Long-Term		Ordinary		Long-Term
	Income		Capital Gains		Income		Capital Gains
	Distribution		Distribution		Distribution		Distribution
2019	$	—	$	—	$	—	$	—
2018	$	—	$	—	$	4,281,585	$	1,894,441

	The Alternative				The Multi-Disciplinary
	Income Fund				Income Fund
	Ordinary		Long-Term		Ordinary		Long-Term
	Income		Capital Gains		Income		Capital Gains
	Distribution		Distribution		Distribution		Distribution
2019	$	159,290	$	—	$	786,647	$	—
2018	$	211,236	$	—	$	1,742,121	$	—

	The Spin-off
	Fund
	Ordinary		Long-Term
	Income		Capital Gains
	Distribution		Distribution
2019	$	—	$	—
2018	$	71,090	$	810,046

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

Each Feeder Fund and the Spin-off Fund designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Feeder Funds and the Spin-off Fund related to net capital gain to zero for the tax year ended December 31, 2018.

6. Securities Transactions, Tax Cost and Significant Investments – The Spin-off Fund

Purchases and sales of investment securities, other than short-term investments and short-term options, for the six month period ended June 30, 2019, were as follows for the Spin-off Fund:


	Purchases				Sales
	U.S. Government		Other		U.S. Government		Other
The Spin-off Fund	$	—	$	425,023	$	—	$	844,516

As of December 31, 2018, the cost of investments and unrealized appreciation (depreciation) on investment securities for federal income tax purposes was as follows for the Spin-off Fund:


	The Spin-off
	Fund
Tax Cost of Investments	$	14,739,313
Unrealized Appreciation		7,799,439
Unrealized Depreciation		(3,827,495	)
Net Unrealized Appreciation	$	3,971,944

Significant Investments

The Spin-off Fund may invest a greater percentage of its assets in one or more individual securities at any time. The greater percentage of assets in individual securities (not including short-term investments or other funds) exposes the portfolio to the risk of unanticipated industry conditions, the risks particular to a single company or security, and the risk of potentially lower liquidity. At June 30, 2019, Spin-off Fund invested approximately 60% of its net assets in individual securities greater than 5% of net assets. Please see the Schedule of Investments for further details.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

7. Summary of Fair Value Exposure – Spin-off Fund

Various inputs are used in determining the value of the Spin-off Fund’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 the Spin-off Fund has the ability to access.

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

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

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

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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

The following is a summary of the inputs used to value The Spin-off Fund’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Common Stocks	$	21,399,544	$	—	$	—	$	21,399,544
Short-Term Investments		362		817,295		—		817,657
Total Investments in Securities	$	21,399,906	$	817,295	$	—	$	22,217,201

As of June 30, 2019, there were no investments in Level 3 securities. During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Schedule of Investments for breakout of investments by industry classification.

8. Investment Adviser

The Spin-off Fund entered into Investment Advisory Agreements (the “Agreement”) with Horizon Kinetics Asset Management LLC (the “Adviser”), with whom certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Spin-off Fund. The Adviser is a wholly-owned subsidiary of Horizon Kinetics LLC. Under the terms of the Agreements, the Spin-off Fund compensates the Adviser for its management services at the annual rate of 1.00% of the Spin-off Fund’s average daily net assets. For the period ended June 30, 2019, Spin-off Fund incurred $108,608 in expenses pursuant to the Agreement.

9. Subsequent Events

In preparing these financial statements, management has evaluated Fund related events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or translations that occurred during the period that materially impacted the amounts or disclosures in the Funds’ financial statements.

10. Tax Information (Unaudited)

The Internet, Medical, Market Opportunities, and Spin-off Funds designated 18%, 100%, 8% and 100%, respectively, of dividends declared after December 31, 2018, from net investment income as qualified dividend income under the Jobs and Growth Tax Relief Reconciliation Act of 2003.

The Internet, Medical, Market Opportunities, Alternative Income, Multi-Disciplinary Income and Spin-off Funds designated 3%, 12%, 76%, 100%, 100% and 8%, respectively, as ordinary income distributions and 97%, 100%,

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

100%, 88%, 24% and 92%, respectively, for the Internet, Global, Paradigm, Medical, Market Opportunities and Spin-off Funds as long-term capital gain distribution 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 Internet, Medical, Market Opportunities and Spin-off Funds, the percentage of ordinary dividend income distributed for the year ended December 31, 2018, which was designated as qualifying for the dividends-received deduction, is 15%, 100%, 4% and 100%, respectively. The Internet, Medical, Market Opportunities, Alternative Income, Multi-Disciplinary Income and Spin-off Funds designated 14%, 1%, 11%, 58%, 72% and 9%, respectively, of their ordinary income distributions for the fiscal year ended December 31, 2018, as interest-related dividends under Internal Revenue Code Section 871(k)(l)(C).

The Internet, Market Opportunities and Spin-off Funds designated 100%, 100% and 100%, respectively, of their ordinary income distributions as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C).

11. Recent Accounting Pronouncements

In March 2017, the FASB issued ASU 2017‐08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310‐20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017‐08”). The amendments in the ASU 2017‐08 shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU 2017‐08 does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU 2017‐08 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management has assessed these changes and concluded these changes do not have a material impact on the Funds’ financial statements.

12. Information about Proxy Voting (Unaudited)

Information regarding how the Spin-off Fund, the Feeder Funds 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 Spin-off Fund, the Feeder Funds and the Master Portfolios voted proxies relating to portfolio

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

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.

13. Information about the Portfolio Holdings (Unaudited)

The Spin-off Fund and Feeder Funds file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Part F of Form N-PORT. The Spin-off Fund’s and Feeder Funds’ Part F of Form N-PORT is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Part F of Form N-PORT on the SEC’s website at www.sec.gov.

14. Approval of Investment Advisory Contract by Directors of Kinetics Mutual Funds, Inc.

At a meeting of the Board of Directors of the Company held on March 15, 2019, the Board, including all of the Directors who are not interested persons under the 1940 Act (the “Independent Directors”), approved the Advisory Agreement between Horizon Kinetics Asset Management LLC (the “Adviser”) and Kinetics Spin-off and Corporate Restructuring Fund (“Spin-off Fund”). The Board noted that the Adviser has served as the sub-adviser to the Spin-off Fund since its inception. In reaching a decision to approve the Advisory Agreement (the “Agreement”), the Board of Directors, including all of the Independent Directors, considered, among; (1) the nature, extent and quality of the services provided by the Adviser including, but not limited to, a review of the complexity of the services provided and 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 Spinoff Fund and the Adviser as compared with industry competitors; (4) an evaluation of the fee structure, any fee waivers, and the Spin-off Fund’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 Spin-off Fund grows and whether fee levels reflect these economies of scale for the benefit of the Spin-off Fund’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 Spin-off Fund;

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Notes to Financial Statements — (Continued)

June 30, 2019 (Unaudited)

(8) other compensation or possible benefits to the Adviser and its affiliates arising from their advisory and other relationships with the Spin-off Fund, including, if applicable, any benefits derived or to be derived by the Adviser from its relationship with the Spin-off Fund such as soft dollar arrangements by which brokers provide research to the Spin-off Fund or the Adviser in return for allocating the Spin-off Fund’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); (10) a comparison of the fees charged by the Adviser with fees charged by the Adviser to similar clients; and (11) the policies and procedures that are in place to address, among other things, informational and cyber-related security.

The Board of Directors, including all of the Independent Directors, concluded that: they were satisfied with the quality of services provided by the Adviser in advising the Spin-off Fund, the profits earned by the Adviser would be reasonable in light of the nature, extent and quality of the services provided to the Spin-off Fund; and that the Spin-off Fund was not large enough to attain significant economies of scale. Based on the factors considered, the Board of Directors, including all of the Independent Directors, concluded that it was appropriate to approve the Agreement.

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights


	The Internet Fund
	No Load Class
	For the
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	27.19		$	52.18		$	39.33		$	41.68		$	56.08		$	59.27
Income from Investment Operations:
Net investment income (loss)⁽²⁾		(0.10	)		(0.48	)		0.36			(0.68	)		(0.84	)		(0.77	)
Net realized and unrealized gain
(loss) on investments		10.56			(13.77	)		22.13			1.76			(2.21	)		0.69
Total from Investment
Operations		10.46			(14.25	)		22.49			1.08			(3.05	)		(0.08	)
Redemption Fees		0.00	⁽³⁾		0.02			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.01
Less Distributions:
From net realized gains		—			(10.76	)		(9.64	)		(3.43	)		(11.35	)		(3.12	)
Total Distributions		—			(10.76	)		(9.64	)		(3.43	)		(11.35	)		(3.12	)
Net Asset Value, End of Period	$	37.65		$	27.19		$	52.18		$	39.33		$	41.68		$	56.08
Total return		38.47	%⁽⁴⁾		(27.32	)%		57.43	%		2.59	%		(5.42	)%		(0.16	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	134,357		$	102,268		$	162,120		$	109,930		$	122,332		$	151,200
Ratio of operating expenses to
average net assets:⁽⁶⁾		1.88	%⁽⁵⁾		1.84	%		1.84	%		1.87	%		1.82	%		1.78	%
Ratio of net investment income
(loss) to average net assets:		(0.64	)%⁽⁵⁾		(1.05	)%		0.79	%		(1.68	)%		(1.51	)%		(1.34	)%
Portfolio turnover rate⁽⁷⁾		1	%		15	%		44	%		2	%		1	%		1	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	25.00		$	49.27		$	37.57		$	40.07		$	54.51		$	57.84
Income from Investment Operations:
Net investment income (loss)⁽²⁾		(0.13	)		(0.57	)		0.24			(0.75	)		(0.95	)		(0.89	)
Net realized and unrealized gain
(loss) on investments		9.70			(12.97	)		21.09			1.68			(2.14	)		0.68
Total from Investment
Operations		9.57			(13.54	)		21.33			0.93			(3.09	)		(0.21	)
Redemption Fees		—			0.03			0.01			—			—			0.00	⁽³⁾
Less Distributions:
From net realized gains		—			(10.76	)		(9.64	)		(3.43	)		(11.35	)		(3.12	)
Total Distributions		—			(10.76	)		(9.64	)		(3.43	)		(11.35	)		(3.12	)

Net Asset Value, End of Period	$	34.57		$	25.00		$	49.27		$	37.57		$	40.07		$	54.51
Total return⁽⁴⁾		38.28	%⁽⁵⁾		(27.47	)%		57.06	%		2.32	%		(5.65	)%		(0.41	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	3,147		$	2,481		$	4,185		$	1,923		$	2,978		$	5,143
Ratio of operating expenses to
average net assets:⁽⁷⁾		2.13	%⁽⁶⁾		2.09	%		2.09	%		2.12	%		2.07	%		2.03	%
Ratio of net investment income (loss)
to average net assets:		(0.89	)%⁽⁶⁾		(1.30	)%		0.54	%		(1.93	)%		(1.76	)%		(1.59	)%
Portfolio turnover rate⁽⁸⁾		1	%		15	%		44	%		2	%		1	%		1	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	21.18		$	44.24		$	34.52		$	37.27		$	51.81		$	55.38
Income from Investment Operations:
Net investment income (loss)⁽²⁾		(0.17	)		(0.70	)		0.02			(0.88	)		(1.15	)		(1.11	)
Net realized and unrealized gain
(loss) on investments		8.21			(11.61	)		19.30			1.56			(2.04	)		0.64
Total from Investment
Operations		8.04			(12.31	)		19.32			0.68			(3.19	)		(0.47	)
Redemption Fees		—			0.01			0.04			—			—			0.02
Less Distributions:
From net realized gains		—			(10.76	)		(9.64	)		(3.43	)		(11.35	)		(3.12	)
Total Distributions		—			(10.76	)		(9.64	)		(3.43	)		(11.35	)		(3.12	)
Net Asset Value, End of Period	$	29.22		$	21.18		$	44.24		$	34.52		$	37.27		$	51.81
Total return		37.96	%⁽³⁾		(27.86	)%		56.36	%		1.83	%		(6.14	)%		(0.86	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,206		$	1,065		$	1,847		$	704		$	848		$	1,105
Ratio of operating expenses to
average net assets:⁽⁵⁾		2.63	%⁽⁴⁾		2.59	%		2.59	%		2.62	%		2.57	%		2.53	%
Ratio of net investment income
(loss) to average net assets:		(1.39	)%⁽⁴⁾		(1.80	)%		0.04	%		(2.43	)%		(2.26	)%		(2.09	)%
Portfolio turnover rate⁽⁶⁾		1	%		15	%		44	%		2	%		1	%		1	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	5.46		$	7.15		$	5.23		$	4.59		$	5.33		$	6.05
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.01			(0.02	)		0.10			(0.01	)		(0.02	)		(0.02	)
Net realized and unrealized gain
(loss) on investments		1.52			(1.67	)		2.47			0.67			(0.72	)		(0.70	)
Total from Investment
Operations		1.53			(1.69	)		2.57			0.66			(0.74	)		(0.72	)
Redemption Fees⁽³⁾		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			—			(0.10	)		—			—			—
From net realized gains		—			(0.00	)⁽³⁾		(0.55	)		(0.02	)		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Total Distributions		—			(0.00	)⁽³⁾		(0.65	)		(0.02	)		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Net Asset Value, End of Period	$	6.99		$	5.46		$	7.15		$	5.23		$	4.59		$	5.33
Total return		28.02	%⁽⁴⁾		(23.58	)%		49.20	%		14.40	%		(13.83	)%		(11.89	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	7,928		$	5,665		$	8,577		$	5,316		$	4,745		$	6,771
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.64	%⁽⁵⁾		2.53	%		3.07	%⁽⁸⁾		3.04	%		2.87	%		2.61	%
After expense reimbursement⁽⁶⁾		1.39	%⁽⁵⁾		1.39	%		1.76	%⁽⁸⁾		1.39	%		1.39	%		1.39	%
Ratio of net investment income (loss)
to average net assets:		0.32	%⁽⁵⁾		(0.30	)%		1.69	%		(0.17	)%		(0.29	)%		(0.32	)%
Portfolio turnover rate⁽⁷⁾		1	%		28	%		169	%		11	%		16	%		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 Global Portfolio.
(8)	The ratio of expenses includes a tax expense. The expense ratio excluding the tax expense was 2.69% before expense reimbursement and 1.39% after expense reimbursement.

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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	5.45		$	7.15		$	5.19		$	4.57		$	5.31		$	6.03
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.00	⁽³⁾		(0.04	)		0.09			(0.02	)		(0.03	)		(0.03	)
Net realized and unrealized
gain (loss) on investments		1.51			(1.66	)		2.45			0.66			(0.71	)		(0.70	)
Total from Investment
Operations		1.51			(1.70	)		2.54			0.64			(0.74	)		(0.73	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.06			0.00	⁽³⁾		—			0.01
Less Distributions:
From net investment income		—			—			(0.09	)		—			—			—
From net realized gains		—			(0.00	)⁽³⁾		(0.55	)		(0.02	)		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Total Distributions		—			(0.00	)⁽³⁾		(0.64	)		(0.02	)		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Net Asset Value, End of Period	$	6.96		$	5.45		$	7.15		$	5.19		$	4.57		$	5.31
Total return⁽⁴⁾		27.71	%⁽⁵⁾		(23.72	)%		50.29	%		14.03	%		(13.89	)%		(11.93	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,462		$	1,012		$	1,523		$	309		$	376		$	497
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.89	%⁽⁶⁾		2.78	%		3.32	%⁽⁹⁾		3.29	%		3.12	%		2.86	%
After expense reimbursement⁽⁷⁾		1.64	%⁽⁶⁾		1.64	%		2.01	%⁽⁹⁾		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:		0.07	%⁽⁶⁾		(0.55	)%		1.44	%		(0.42	)%		(0.54	)%		(0.57	)%
Portfolio turnover rate⁽⁸⁾		1	%		28	%		169	%		11	%		16	%		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 Global Portfolio.
(9)	The ratio of expenses includes a tax expense. The expense ratio excluding the tax expense was 2.94% before expense reimbursement and 1.64% after expense reimbursement.

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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	5.12		$	6.76		$	4.99		$	4.41		$	5.16		$	5.90
Income from Investment Operations:
Net investment income (loss)⁽²⁾		(0.01	)		(0.07	)		0.05			(0.04	)		(0.05	)		(0.06	)
Net realized and unrealized
gain (loss) on investments		1.42			(1.57	)		2.34			0.64			(0.70	)		(0.68	)
Total from Investment
Operations		1.41			(1.64	)		2.39			0.60			(0.75	)		(0.74	)
Redemption Fees		—			—			—			—			—			0.00	⁽³⁾
Less Distributions:
From net investment income		—			—			(0.07	)		—			—			—
From net realized gains		—			(0.00	)⁽³⁾		(0.55	)		(0.02	)		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Total Distributions		—			(0.00	)⁽³⁾		(0.62	)		(0.02	)		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Net Asset Value, End of Period	$	6.53		$	5.12		$	6.76		$	4.99		$	4.41		$	5.16
Total return		27.54	%⁽⁴⁾		(24.20	)%		48.02	%		13.63	%		(14.48	)%		(12.53	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	5,411		$	4,284		$	5,542		$	1,920		$	1,614		$	1,608
Ratio of operating expenses to
average net assets:
Before expense reimbursement		3.39	%⁽⁵⁾		3.28	%		3.82	%⁽⁸⁾		3.79	%		3.62	%		3.36	%
After expense reimbursement⁽⁶⁾		2.14	%⁽⁵⁾		2.14	%		2.51	%⁽⁸⁾		2.14	%		2.14	%		2.14	%
Ratio of net investment income (loss)
to average net assets:		(0.43	)%⁽⁵⁾		(1.05	)%		0.94	%		(0.92	)%		(1.04	)%		(1.07	)%
Portfolio turnover rate⁽⁷⁾		1	%		28	%		169	%		11	%		16	%		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 Global Portfolio.
(8)	The ratio of expenses includes a tax expense. The expense ratio excluding the tax expense was 3.44% before expense reimbursement and 2.14% after expense reimbursement.

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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	41.32		$	48.32		$	37.63		$	31.24		$	34.08		$	34.35
Income from Investment Operations:
Net investment loss⁽²⁾		(0.10	)		(0.50	)		(0.34	)		(0.36	)		(0.32	)		(0.36	)
Net realized and unrealized gain
(loss) on investments		12.05			(2.20	)		11.03			6.75			(2.52	)		0.09
Total from Investment
Operations		11.95			(2.70	)		10.69			6.39			(2.84	)		(0.27	)
Redemption Fees		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Less Distributions:
From net realized gains		—			(4.31	)		—			—			—			—
Total Distributions		—			(4.31	)		—			—			—			—
Net Asset Value, End of Period	$	53.27		$	41.32		$	48.32		$	37.63		$	31.24		$	34.08
Total return		28.92	%⁽⁴⁾		(5.55	)%		28.41	%		20.45	%		(8.33	)%		(0.79	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	366,469		$	297,990		$	339,189		$	336,837		$	292,014		$	521,738
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.73	%⁽⁵⁾		1.73	%		1.74	%		1.75	%		1.71	%		1.68	%
After expense reimbursement⁽⁶⁾		1.64	%⁽⁵⁾		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment loss
to average net assets:		(0.40	)%⁽⁵⁾		(0.93	)%		(0.82	)%		(1.11	)%		(0.92	)%		(1.02	)%
Portfolio turnover rate⁽⁷⁾		0	%		3	%		14	%		2	%		2	%		7	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	39.95		$	46.99		$	36.69		$	30.53		$	33.39		$	33.74
Income from Investment Operations:
Net investment loss⁽²⁾		(0.16	)		(0.61	)		(0.43	)		(0.43	)		(0.39	)		(0.43	)
Net realized and unrealized gain
(loss) on investments		11.65			(2.12	)		10.73			6.59			(2.47	)		0.08
Total from Investment
Operations		11.49			(2.73	)		10.30			6.16			(2.86	)		(0.35	)
Redemption Fees		—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Less Distributions:
From net realized gains		—			(4.31	)		—			—			—			—
Total Distributions		—			(4.31	)		—			—			—			—
Net Asset Value, End of Period	$	51.44		$	39.95		$	46.99		$	36.69		$	30.53		$	33.39
Total return⁽⁴⁾		28.76	%⁽⁵⁾		(5.79	)%		28.07	%		20.18	%		(8.57	)%		(1.04	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	114,414		$	95,503		$	108,029		$	103,921		$	129,707		$	171,958
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.98	%⁽⁶⁾		1.98	%		1.99	%		2.00	%		1.96	%		1.93	%
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:		(0.65	)%⁽⁶⁾		(1.18	)%		(1.07	)%		(1.36	)%		(1.17	)%		(1.27	)%
Portfolio turnover rate⁽⁸⁾		0	%		3	%		14	%		2	%		2	%		7	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)	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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	37.12		$	44.21		$	34.68		$	29.01		$	31.88		$	32.38
Income from Investment Operations:
Net investment loss⁽²⁾		(0.26	)		(0.81	)		(0.60	)		(0.56	)		(0.53	)		(0.58	)
Net realized and unrealized gain
(loss) on investments		10.82			(1.97	)		10.13			6.23			(2.34	)		0.08
Total from Investment
Operations		10.56			(2.78	)		9.53			5.67			(2.87	)		(0.50	)
Redemption Fees⁽³⁾		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net realized gains		—			(4.31	)		—			—			—			—
Total Distributions		—			(4.31	)		—			—			—			—
Net Asset Value, End of Period	$	47.68		$	37.12		$	44.21		$	34.68		$	29.01		$	31.88
Total return		28.45	%⁽⁴⁾		(6.27	)%		27.48	%		19.55	%		(9.00	)%		(1.54	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	125,128		$	100,718		$	118,924		$	111,973		$	114,008		$	135,333
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.48	%⁽⁵⁾		2.48	%		2.49	%		2.50	%		2.46	%		2.43	%
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:		(1.15	)%⁽⁵⁾		(1.68	)%		(1.57	)%		(1.86	)%		(1.67	)%		(1.77	)%
Portfolio turnover rate⁽⁷⁾		0	%		3	%		14	%		2	%		2	%		7	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	41.69		$	48.62		$	37.79		$	31.30		$	34.08		$	34.28
Income from Investment Operations:
Net investment loss⁽²⁾		(0.05	)		(0.39	)		(0.26	)		(0.30	)		(0.25	)		(0.29	)
Net realized and unrealized gain
(loss) on investments		12.17			(2.23	)		11.09			6.79			(2.53	)		0.09
Total from Investment
Operations		12.12			(2.62	)		10.83			6.49			(2.78	)		(0.20	)
Redemption Fees⁽³⁾		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net realized gains		—			(4.31	)		—			—			—			—
Total Distributions		—			(4.31	)		—			—			—			—
Net Asset Value, End of Period	$	53.81		$	41.69		$	48.62		$	37.79		$	31.30		$	34.08
Total return		29.07	%⁽⁴⁾		(5.37	)%		28.66	%		20.73	%		(8.16	)%		(0.61	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	205,799		$	148,968		$	208,692		$	270,880		$	302,130		$	346,273
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.68	%⁽⁵⁾		1.68	%		1.69	%		1.70	%		1.66	%		1.63	%
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:		(0.20	)%⁽⁵⁾		(0.73	)%		(0.62	)%		(0.91	)%		(0.72	)%		(0.82	)%
Portfolio turnover rate⁽⁷⁾		0	%		3	%		14	%		2	%		2	%		7	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	23.47		$	25.33		$	26.62		$	30.62		$	30.67		$	26.38
Income from Investment Operations:
Net investment income⁽²⁾		0.23			0.27			0.24			0.19			0.08			0.13
Net realized and unrealized gain
(loss) on investments		0.79			0.12			2.63			(2.64	)		1.96			4.21
Total from Investment
Operations		1.02			0.39			2.87			(2.45	)		2.04			4.34
Redemption Fees⁽³⁾		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			(0.29	)		(0.26	)		(0.22	)		(0.12	)		—
From net realized gains		—			(1.96	)		(3.90	)		(1.33	)		(1.97	)		(0.05	)
Total Distributions		—			(2.25	)		(4.16	)		(1.55	)		(2.09	)		(0.05	)
Net Asset Value, End of Period	$	24.49		$	23.47		$	25.33		$	26.62		$	30.62		$	30.67
Total return		4.35	%⁽⁴⁾		1.67	%		10.71	%		(8.01	)%		6.59	%		16.44	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	15,005		$	14,814		$	16,060		$	17,560		$	22,257		$	21,876
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.36	%⁽⁵⁾		2.23	%		2.15	%		2.08	%		1.99	%		2.02	%
After expense reimbursement⁽⁶⁾		1.39	%⁽⁵⁾		1.39	%		1.39	%		1.39	%		1.39	%		1.39	%
Ratio of net investment income
to average net assets:		1.89	%⁽⁵⁾		1.03	%		0.86	%		0.69	%		0.25	%		0.46	%
Portfolio turnover rate⁽⁷⁾		6	%		0	%		0	%		0	%		12	%		3	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	22.50		$	24.33		$	25.71		$	29.57		$	29.71		$	25.62
Income from Investment Operations:
Net investment income⁽²⁾		0.19			0.19			0.17			0.12			0.00	⁽³⁾		0.06
Net realized and unrealized gain
(loss) on investments		0.76			0.11			2.53			(2.55	)		1.90			4.08
Total from Investment
Operations		0.95			0.30			2.70			(2.43	)		1.90			4.14
Redemption Fees		—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Less Distributions:
From net investment income		—			(0.17	)		(0.18	)		(0.10	)		(0.07	)		—
From net realized gains		—			(1.96	)		(3.90	)		(1.33	)		(1.97	)		(0.05	)
Total Distributions		—			(2.13	)		(4.08	)		(1.43	)		(2.04	)		(0.05	)
Net Asset Value, End of Period	$	23.45		$	22.50		$	24.33		$	25.71		$	29.57		$	29.71
Total return⁽⁴⁾		4.22	%⁽⁵⁾		1.36	%		10.43	%		(8.24	)%		6.34	%		16.15	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,185		$	1,319		$	2,986		$	3,687		$	6,241		$	4,578
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.61	%⁽⁶⁾		2.48	%		2.40	%		2.33	%		2.24	%		2.27	%
After expense reimbursement⁽⁷⁾		1.64	%⁽⁶⁾		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income
to average net assets:		1.64	%⁽⁶⁾		0.78	%		0.61	%		0.44	%		0.00	%		0.21	%
Portfolio turnover rate⁽⁸⁾		6	%		0	%		0	%		0	%		12	%		3	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	21.69		$	23.57		$	24.99		$	28.82		$	29.15		$	25.27
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.13			0.07			0.03			(0.02	)		(0.16	)		(0.08	)
Net realized and unrealized gain
(loss) on investments		0.73			0.11			2.45			(2.48	)		1.87			4.01
Total from Investment
Operations		0.86			0.18			2.48			(2.50	)		1.71			3.93
Redemption Fees		—			—			—			—			—			—
Less Distributions:
From net investment income		—			(0.10	)		—			—			(0.07	)		—
From net realized gains		—			(1.96	)		(3.90	)		(1.33	)		(1.97	)		(0.05	)
Total Distributions		—			(2.06	)		(3.90	)		(1.33	)		(2.04	)		(0.05	)
Net Asset Value, End of Period	$	22.55		$	21.69		$	23.57		$	24.99		$	28.82		$	29.15
Total return		3.96	%⁽³⁾		0.90	%		9.86	%		(8.69	)%		5.81	%		15.54	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	174		$	320		$	383		$	422		$	608		$	631
Ratio of operating expenses to
average net assets:
Before expense reimbursement		3.11	%⁽⁴⁾		2.98	%		2.90	%		2.83	%		2.74	%		2.77	%
After expense reimbursement⁽⁵⁾		2.14	%⁽⁴⁾		2.14	%		2.14	%		2.14	%		2.14	%		2.14	%
Ratio of net investment income (loss)
to average net assets:		1.14	%⁽⁴⁾		0.28	%		0.11	%		(0.06	)%		(0.50	)%		(0.29	)%
Portfolio turnover rate⁽⁶⁾		6	%		0	%		0	%		0	%		12	%		3	%

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

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

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Financial Highlights — (Continued)


	The Small Cap Opportunities Fund
	No Load Class
	For the
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	51.40		$	51.25		$	40.60		$	32.64		$	37.21		$	40.12
Income from Investment Operations:
Net investment loss⁽²⁾		(0.03	)		(0.35	)		(0.33	)		(0.36	)		(0.35	)		(0.36	)
Net realized and unrealized gain
(loss) on investments		11.53			0.47			10.98			8.32			(4.22	)		(2.56	)
Total from Investment
Operations		11.50			0.12			10.65			7.96			(4.57	)		(2.92	)
Redemption Fees		0.00	⁽³⁾		0.03			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.01
Less Distributions:
From net investment income		—			—			—			—			—			—
Total Distributions		—			—			—			—			—			—
Net Asset Value, End of Period	$	62.90		$	51.40		$	51.25		$	40.60		$	32.64		$	37.21
Total return		22.37	%⁽⁴⁾		0.29	%		26.23	%		24.39	%		(12.26	)%		(7.28	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	206,433		$	164,330		$	133,960		$	132,443		$	145,032		$	251,110
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.76	%⁽⁵⁾		1.74	%		1.78	%		1.76	%		1.73	%		1.71	%
After expense reimbursement⁽⁶⁾		1.64	%⁽⁵⁾		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment loss
to average net assets:		(0.09	)%⁽⁵⁾		(0.60	)%		(0.74	)%		(1.03	)%		(0.94	)%		(0.89	)%
Portfolio turnover rate⁽⁷⁾		2	%		3	%		9	%		4	%		2	%		19	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	49.81		$	49.81		$	39.55		$	31.88		$	36.43		$	39.39
Income from Investment Operations:
Net investment loss⁽²⁾		(0.10	)		(0.48	)		(0.42	)		(0.43	)		(0.43	)		(0.45	)
Net realized and unrealized
gain (loss) on investments		11.16			0.48			10.68			8.10			(4.12	)		(2.51	)
Total from Investment
Operations		11.06			—			10.26			7.67			(4.55	)		(2.96	)
Redemption Fees⁽³⁾		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			—			—			—			—			—
Total Distributions		—			—			—			—			—			—
Net Asset Value, End of Period	$	60.87		$	49.81		$	49.81		$	39.55		$	31.88		$	36.43
Total return⁽⁴⁾		22.20	%⁽⁵⁾		0.00	%		25.94	%		24.06	%		(12.47	)%		(7.54	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	32,104		$	10,505		$	11,735		$	13,694		$	14,857		$	25,591
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.01	%⁽⁶⁾		1.99	%		2.03	%		2.01	%		1.98	%		1.96	%
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:		(0.34	)%⁽⁶⁾		(0.85	)%		(0.99	)%		(1.28	)%		(1.19	)%		(1.14	)%
Portfolio turnover rate⁽⁸⁾		2	%		3	%		9	%		4	%		2	%		19	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	The total return calculation does not reflect the 5.75% front end sales charge on Advisor Class A shares.
(5)	Not annualized.
(6)	Annualized.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(8)	Portfolio turnover of The 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	47.53		$	47.77		$	38.12		$	30.88		$	35.47		$	38.53
Income from Investment Operations:
Net investment loss⁽²⁾		(0.23	)		(0.73	)		(0.61	)		(0.58	)		(0.59	)		(0.63	)
Net realized and unrealized gain
(loss) on investments		10.64			0.49			10.26			7.82			(4.00	)		(2.44	)
Total from Investment
Operations		10.41			(0.24	)		9.65			7.24			(4.59	)		(3.07	)
Redemption Fees		—			0.00	⁽³⁾		—			0.00	⁽³⁾		—			0.01
Less Distributions:
From net investment income		—			—			—			—			—			—
Total Distributions		—			—			—			—			—			—
Net Asset Value, End of Period	$	57.94		$	47.53		$	47.77		$	38.12		$	30.88		$	35.47
Total return		21.90	%⁽⁴⁾		(0.50	)%		25.31	%		23.45	%		(12.92	)%		(7.97	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	10,770		$	8,373		$	8,135		$	8,426		$	8,840		$	12,928
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.51	%⁽⁵⁾		2.49	%		2.53	%		2.51	%		2.48	%		2.46	%
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:		(0.84	)%⁽⁵⁾		(1.35	)%		(1.49	)%		(1.78	)%		(1.69	)%		(1.64	)%
Portfolio turnover rate⁽⁷⁾		2	%		3	%		9	%		4	%		2	%		19	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	52.30		$	52.07		$	41.16		$	33.03		$	37.57		$	40.44
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.03			(0.24	)		(0.24	)		(0.29	)		(0.28	)		(0.28	)
Net realized and unrealized gain
(loss) on investments		11.73			0.47			11.15			8.42			(4.26	)		(2.59	)
Total from Investment
Operations		11.76			0.23			10.91			8.13			(4.54	)		(2.87	)
Redemption Fees⁽³⁾		0.00			0.00			0.00			0.00			0.00			0.00
Less Distributions:
From net investment income		—			—			—			—			—			—
Total Distributions		—			—			—			—			—			—
Net Asset Value, End of Period	$	64.06		$	52.30		$	52.07		$	41.16		$	33.03		$	37.57
Total return		22.49	%⁽⁴⁾		0.44	%		26.51	%		24.61	%		(12.06	)%		(7.12	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	63,809		$	40,075		$	27,514		$	50,517		$	51,258		$	63,392
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.71	%⁽⁵⁾		1.69	%		1.73	%		1.71	%		1.68	%		1.66	%
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:		0.11	%⁽⁵⁾		(0.40	)%		(0.54	)%		(0.83	)%		(0.74	)%		(0.69	)%
Portfolio turnover rate⁽⁷⁾		2	%		3	%		9	%		4	%		2	%		19	%

(1)	Information presented relates to a share of capital stock outstanding for each period.
(2)	Net investment income per share represents net investment income divided by the average shares outstanding throughout the period.
(3)	Amount calculated is less than $0.005.
(4)	Not annualized.
(5)	Annualized.
(6)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.
(7)	Portfolio turnover of The 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	21.83		$	26.72		$	18.26		$	15.16		$	16.68		$	17.66
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.04			(0.14	)		0.17			(0.15	)		(0.15	)		(0.10	)
Net realized and unrealized gain
(loss) on investments		5.57			(2.77	)		8.46			3.25			(1.37	)		(0.88	)
Total from Investment
Operations		5.61			(2.91	)		8.63			3.10			(1.52	)		(0.98	)
Redemption Fees		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾		—			0.00	⁽³⁾
Less Distributions:
From net investment income		—			—			(0.17	)		—			—			—
From net realized gains		—			(1.99	)		—			—			—			—
Total Distributions		—			(1.99	)		(0.17	)		—			—			—
Net Asset Value, End of Period	$	27.44		$	21.83		$	26.72		$	18.26		$	15.16		$	16.68
Total return		25.70	%⁽⁴⁾		(10.86	)%		47.28	%		20.45	%		(9.11	)%		(5.55	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	59,684		$	48,487		$	51,298		$	32,178		$	31,230		$	37,318
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.89	%⁽⁵⁾		1.86	%		1.92	%		1.97	%		1.90	%		1.86	%
After expense reimbursement⁽⁶⁾		1.40	%⁽⁵⁾		1.64	%		1.64	%		1.64	%		1.64	%		1.64	%
Ratio of net investment income (loss)
to average net assets:		0.35	%⁽⁵⁾		(0.53	)%		0.81	%		(0.96	)%		(0.91	)%		(0.55	)%
Portfolio turnover rate⁽⁷⁾		1	%		8	%		35	%		5	%		2	%		18	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	21.49		$	26.41		$	18.07		$	15.04		$	16.59		$	17.60
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.01			(0.21	)		0.11			(0.19	)		(0.19	)		(0.14	)
Net realized and unrealized gain
(loss) on investments		5.48			(2.72	)		8.37			3.22			(1.36	)		(0.87	)
Total from Investment
Operations		5.49			(2.93	)		8.48			3.03			(1.55	)		(1.01	)
Redemption Fees		—			0.00	⁽³⁾		0.00	⁽³⁾		—			0.00	⁽³⁾		—
Less Distributions:
From net investment income		—			—			(0.14	)		—			—			—
From net realized gains		—			(1.99	)		—			—			—			—
Total Distributions		—			(1.99	)		(0.14	)		—			—			—

Net Asset Value, End of Period	$	26.98		$	21.49		$	26.41		$	18.07		$	15.04		$	16.59
Total return⁽⁴⁾		25.55	%⁽⁵⁾		(11.10	)%		46.91	%		20.15	%		(9.34	)%		(5.74	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	7,592		$	6,426		$	7,557		$	4,537		$	4,502		$	8,817
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.14	%⁽⁶⁾		2.11	%		2.17	%		2.22	%		2.15	%		2.11	%
After expense reimbursement⁽⁷⁾		1.65	%⁽⁶⁾		1.89	%		1.89	%		1.89	%		1.89	%		1.89	%
Ratio of net investment income (loss)
to average net assets:		0.10	%⁽⁶⁾		(0.78	)%		0.56	%		(1.21	)%		(1.16	)%		(0.80	)%
Portfolio turnover rate⁽⁸⁾		1	%		8	%		35	%		5	%		2	%		18	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	20.61		$	25.53		$	17.51		$	14.65		$	16.24		$	17.32
Income from Investment Operations:
Net investment income (loss)⁽²⁾		(0.05	)		(0.33	)		0.01			(0.26	)		(0.27	)		(0.22	)
Net realized and unrealized gain
(loss) on investments		5.24			(2.60	)		8.07			3.12			(1.32	)		(0.86	)
Total from Investment
Operations		5.19			(2.93	)		8.08			2.86			(1.59	)		(1.08	)
Redemption Fees		—			—			—			—			—			0.00	⁽³⁾
Less Distributions:
From net investment income		—			—			(0.06	)		—			—			—
From net realized gains		—			(1.99	)		—			—			—			—
Total Distributions		—			(1.99	)		(0.06	)		—			—			—

Net Asset Value, End of Period	$	25.80		$	20.61		$	25.53		$	17.51		$	14.65		$	16.24
Total return		25.18	%⁽⁴⁾		(11.48	)%		46.12	%		19.52	%		(9.79	)%		(6.24	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	10,927		$	8,517		$	8,139		$	4,428		$	4,079		$	5,109
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.64	%⁽⁵⁾		2.61	%		2.67	%		2.72	%		2.65	%		2.61	%
After expense reimbursement⁽⁶⁾		2.15	%⁽⁵⁾		2.39	%		2.39	%		2.39	%		2.39	%		2.39	%
Ratio of net investment income (loss)
to average net assets:		(0.40	)%⁽⁵⁾		(1.28	)%		0.06	%		(1.71	)%		(1.66	)%		(1.30	)%
Portfolio turnover rate⁽⁷⁾		1	%		8	%		35	%		5	%		2	%		18	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	22.16		$	27.04		$	18.46		$	15.29		$	16.80		$	17.74
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.07			(0.09	)		0.22			(0.12	)		(0.12	)		(0.06	)
Net realized and unrealized gain
(loss) on investments		5.65			(2.81	)		8.55			3.29			(1.39	)		(0.88	)
Total from Investment
Operations		5.72			(2.90	)		8.77			3.17			(1.51	)		(0.94	)
Redemption Fees		—			0.01			0.02			—			—			—
Less Distributions:
From net investment income		—			—			(0.21	)		—			—			—
From net realized gains		—			(1.99	)		—			—			—			—
Total Distributions		—			(1.99	)		(0.21	)		—			—			—

Net Asset Value, End of Period	$	27.88		$	22.16		$	27.04		$	18.46		$	15.29		$	16.80
Total return		25.81	%⁽³⁾		(10.70	)%		47.65	%		20.73	%		(8.93	)%		(5.36	)%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	11,479		$	9,471		$	10,228		$	2,426		$	2,355		$	3,108
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.84	%⁽⁴⁾		1.81	%		1.87	%		1.92	%		1.85	%		1.81	%
After expense reimbursement⁽⁵⁾		1.20	%⁽⁴⁾		1.44	%		1.44	%		1.44	%		1.44	%		1.44	%
Ratio of net investment income (loss)
to average net assets:		0.55	%⁽⁴⁾		(0.33	)%		1.01	%		(0.76	)%		(0.71	)%		(0.35	)%
Portfolio turnover rate⁽⁶⁾		1	%		8	%		35	%		5	%		2	%		18	%

(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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	97.46		$	97.57		$	95.36		$	91.68		$	89.06		$	87.88
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.68			0.92			0.08			(0.01	)		0.01			(0.12	)
Net realized and unrealized gain
(loss) on investments		0.92			(0.03	)		2.12			3.69			2.56			1.30
Total from Investment
Operations		1.60			0.89			2.20			3.68			2.57			1.18
Redemption Fees		—			0.01			0.01			0.00	⁽³⁾		0.05			0.00	⁽³⁾
Less Distributions:
From net investment income		(0.79	)		(1.01	)		—			—			—			—
Total Distributions		(0.79	)		(1.01	)		—			—			—			—

Net Asset Value, End of Period	$	98.27		$	97.46		$	97.57		$	95.36		$	91.68		$	89.06
Total return		1.64	%⁽⁴⁾		0.92	%		2.32	%		4.00	%		2.94	%		1.50	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	4,026		$	4,265		$	4,968		$	5,664		$	4,570		$	8,202
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.02	%⁽⁵⁾		1.88	%		1.75	%		1.78	%		1.74	%		1.80	%
After expense reimbursement⁽⁶⁾		0.95	%⁽⁵⁾		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Ratio of net investment income
(loss) to average net assets:		1.40	%⁽⁵⁾		0.94	%		0.08	%		(0.01	)%		0.01	%		(0.14	)%
Portfolio turnover rate⁽⁷⁾		0	%		0	%		0	%		1	%		6	%		17	%

(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 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	96.24		$	96.38		$	94.44		$	91.02		$	88.69		$	87.73
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.55			0.66			(0.16	)		(0.24	)		(0.22	)		(0.34	)
Net realized and unrealized gain
(loss) on investments		0.92			(0.03	)		2.10			3.65			2.55			1.30
Total from Investment
Operations		1.47			0.63			1.94			3.41			2.33			0.96
Redemption Fees		—			—			0.00	⁽³⁾		0.01			—			0.00	⁽³⁾
Less Distributions:
From net investment income		(0.68	)		(0.77	)		—			—			—			—
Total Distributions		(0.68	)		(0.77	)		—			—			—			—

Net Asset Value, End of Period	$	97.03		$	96.24		$	96.38		$	94.44		$	91.02		$	88.69
Total return⁽⁴⁾		1.53	%⁽⁵⁾		0.65	%		2.05	%		3.76	%		2.63	%		1.24	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	973		$	932		$	1,501		$	2,458		$	1,565		$	1,554
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.27	%⁽⁶⁾		2.13	%		2.00	%		2.03	%		1.99	%		2.05	%
After expense reimbursement⁽⁷⁾		1.20	%⁽⁶⁾		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Ratio of net investment income
(loss) to average net assets:		1.15	%⁽⁶⁾		0.69	%		(0.17	)%		(0.26	)%		(0.24	)%		(0.39	)%
Portfolio turnover rate⁽⁸⁾		0	%		0	%		0	%		1	%		6	%		17	%

(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 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	92.65		$	92.73		$	91.33		$	88.46		$	86.60		$	86.10
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.30			0.17			(0.62	)		(0.68	)		(0.65	)		(0.77	)
Net realized and unrealized gain
(loss) on investments		0.89			(0.04	)		2.02			3.55			2.48			1.27
Total from Investment
Operations		1.19			0.13			1.40			2.87			1.83			0.50
Redemption Fees		—			—			—			—			0.03			—
Less Distributions:
From net investment income		(0.46	)		(0.21	)		—			—			—			—
Total Distributions		(0.46	)		(0.21	)		—			—			—			—

Net Asset Value, End of Period	$	93.38		$	92.65		$	92.73		$	91.33		$	88.46		$	86.60
Total return		1.27	%⁽³⁾		0.15	%		1.53	%		3.23	%		2.15	%		0.74	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	1,015		$	1,107		$	1,513		$	1,640		$	1,356		$	1,506
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.77	%⁽⁴⁾		2.63	%		2.50	%		2.53	%		2.49	%		2.55	%
After expense reimbursement⁽⁵⁾		1.70	%⁽⁴⁾		1.70	%		1.70	%		1.70	%		1.70	%		1.70	%
Ratio of net investment income
(loss) to average net assets:		0.65	%⁽⁴⁾		0.19	%		(0.67	)%		(0.76	)%		(0.74	)%		(0.89	)%
Portfolio turnover rate⁽⁶⁾		0	%		0	%		0	%		1	%		6	%		17	%

(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 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
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	98.73		$	98.88		$	96.66		$	92.84		$	90.14		$	88.76
Income from Investment Operations:
Net investment income⁽²⁾		0.79			1.13			0.27			0.18			0.19			0.06
Net realized and unrealized gain
(loss) on investments		0.95			(0.05	)		2.16			3.75			2.60			1.32
Total from Investment
Operations		1.74			1.08			2.43			3.93			2.79			1.38
Redemption Fees		—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Less Distributions:
From net investment income		(0.89	)		(1.23	)		(0.21	)		(0.11	)		(0.09	)		—
Total Distributions		(0.89	)		(1.23	)		(0.21	)		(0.11	)		(0.09	)		—

Net Asset Value, End of Period	$	99.58		$	98.73		$	98.88		$	96.66		$	92.84		$	90.14
Total return		1.76	%⁽⁴⁾		1.10	%		2.51	%		4.22	%		3.09	%		1.72	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	12,683		$	12,718		$	15,008		$	18,165		$	20,255		$	26,874
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.97	%⁽⁵⁾		1.83	%		1.70	%		1.73	%		1.69	%		1.75	%
After expense reimbursement⁽⁶⁾		0.75	%⁽⁵⁾		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Ratio of net investment income
to average net assets:		1.60	%⁽⁵⁾		1.14	%		0.28	%		0.19	%		0.21	%		0.06	%
Portfolio turnover rate⁽⁷⁾		0	%		0	%		0	%		1	%		6	%		17	%

(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 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 Income Fund
	No Load Class
	For the
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	10.46		$	11.02		$	10.95		$	10.32		$	10.79		$	11.02
Income from Investment Operations:
Net investment income⁽²⁾		0.22			0.44			0.37			0.43			0.37			0.33
Net realized and unrealized gain
(loss) on investments		0.50			(0.55	)		0.14			0.63			(0.60	)		(0.06	)
Total from Investment
Operations		0.72			(0.11	)		0.51			1.06			(0.23	)		0.27
Redemption Fees		—			—			0.00	⁽³⁾		—			0.00	⁽³⁾		0.00	⁽³⁾
Less Distributions:
From net investment income		(0.23	)		(0.45	)		(0.44	)		(0.43	)		(0.23	)		(0.29	)
From net realized gains		—			—			—			—			(0.01	)		(0.21	)
Total Distributions		(0.23	)		(0.45	)		(0.44	)		(0.43	)		(0.24	)		(0.50	)

Net Asset Value, End of Period	$	10.95		$	10.46		$	11.02		$	10.95		$	10.32		$	10.79
Total return		6.94	%⁽⁴⁾		(1.00	)%		4.75	%		10.41	%		(2.17	)%		2.46	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	5,907		$	6,134		$	6,974		$	6,809		$	6,108		$	10,105
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.13	%⁽⁵⁾		1.97	%		1.91	%		1.85	%		1.79	%		1.79	%
After expense reimbursement⁽⁶⁾		1.49	%⁽⁵⁾		1.49	%		1.49	%		1.49	%		1.49	%		1.49	%
Ratio of net investment income
to average net assets:		4.14	%⁽⁵⁾		4.06	%		3.37	%		4.02	%		3.38	%		2.93	%
Portfolio turnover rate⁽⁷⁾		0	%		2	%		16	%		9	%		10	%		35	%

(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 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 Income Fund
	Advisor Class A
	For the
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	10.41		$	10.96		$	10.90		$	10.27		$	10.75		$	10.98
Income from Investment Operations:
Net investment income⁽²⁾		0.21			0.41			0.34			0.40			0.34			0.30
Net realized and unrealized gain
(loss) on investments		0.50			(0.54	)		0.13			0.63			(0.60	)		(0.06	)
Total from Investment
Operations		0.71			(0.13	)		0.47			1.03			(0.26	)		0.24
Redemption Fees		—			—			0.00	⁽³⁾		—			0.00	⁽³⁾		0.00	⁽³⁾
Less Distributions:
From net investment income		(0.22	)		(0.42	)		(0.41	)		(0.40	)		(0.21	)		(0.26	)
From net realized gains		—			—			—			—			(0.01	)		(0.21	)
Total Distributions		(0.22	)		(0.42	)		(0.41	)		(0.40	)		(0.22	)		(0.47	)

Net Asset Value, End of Period	$	10.90		$	10.41		$	10.96		$	10.90		$	10.27		$	10.75
Total return⁽⁴⁾		6.85	%⁽⁵⁾		(1.18	)%		4.40	%		10.17	%		(2.46	)%		2.17	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	2,536		$	2,811		$	4,640		$	6,935		$	8,754		$	12,281
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.38	%⁽⁶⁾		2.22	%		2.16	%		2.10	%		2.04	%		2.04	%
After expense reimbursement⁽⁷⁾		1.74	%⁽⁶⁾		1.74	%		1.74	%		1.74	%		1.74	%		1.74	%
Ratio of net investment income
to average net assets:		3.89	%⁽⁶⁾		3.81	%		3.12	%		3.77	%		3.13	%		2.68	%
Portfolio turnover rate⁽⁸⁾		0	%		2	%		16	%		9	%		10	%		35	%

(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 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 Income Fund
	Advisor Class C
	For the
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	10.29		$	10.86		$	10.79		$	10.18		$	10.65		$	10.90
Income from Investment Operations:
Net investment income⁽²⁾		0.18			0.35			0.29			0.34			0.28			0.24
Net realized and unrealized
gain (loss) on investments		0.50			(0.54	)		0.14			0.62			(0.58	)		(0.06	)
Total from Investment
Operations		0.68			(0.19	)		0.43			0.96			(0.30	)		0.18
Redemption Fees		—			—			—			—			—			0.00	⁽³⁾
Less Distributions:
From net investment income		(0.19	)		(0.38	)		(0.36	)		(0.35	)		(0.16	)		(0.22	)
From net realized gains		—			—			—			—			(0.01	)		(0.21	)
Total Distributions		(0.19	)		(0.38	)		(0.36	)		(0.35	)		(0.17	)		(0.43	)

Net Asset Value, End of Period	$	10.78		$	10.29		$	10.86		$	10.79		$	10.18		$	10.65
Total return		6.67	%⁽⁴⁾		(1.83	)%		4.00	%		9.51	%		(2.84	)%		1.61	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	7,787		$	7,727		$	6,987		$	7,790		$	9,266		$	10,403
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.88	%⁽⁵⁾		2.72	%		2.66	%		2.60	%		2.54	%		2.54	%
After expense reimbursement⁽⁶⁾		2.24	%⁽⁵⁾		2.24	%		2.24	%		2.24	%		2.24	%		2.24	%
Ratio of net investment income
to average net assets:		3.39	%⁽⁵⁾		3.31	%		2.62	%		3.27	%		2.63	%		2.18	%
Portfolio turnover rate⁽⁷⁾		0	%		2	%		16	%		9	%		10	%		35	%

(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 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 Income Fund
	Institutional Class
	For the
	Period			For the			For the			For the			For the			For the
	Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value,
Beginning of Period	$	10.48		$	11.04		$	10.97		$	10.34		$	10.82		$	11.06
Income from Investment Operations:
Net investment income⁽²⁾		0.23			0.46			0.40			0.45			0.39			0.35
Net realized and unrealized gain
(loss) on investments		0.51			(0.54	)		0.13			0.63			(0.59	)		(0.06	)
Total from Investment
Operations		0.74			(0.08	)		0.53			1.08			(0.20	)		0.29
Redemption Fees		—			—			—			0.00	⁽³⁾		0.00	⁽³⁾		—
Less Distributions:
From net investment income		(0.24	)		(0.48	)		(0.46	)		(0.45	)		(0.27	)		(0.32	)
From net realized gains		—			—			—			—			(0.01	)		(0.21	)
Total Distributions		(0.24	)		(0.48	)		(0.46	)		(0.45	)		(0.28	)		(0.53	)

Net Asset Value, End of Period	$	10.98		$	10.48		$	11.04		$	10.97		$	10.34		$	10.82
Total return		7.13	%⁽⁴⁾		(0.80	)%		4.93	%		10.61	%		(1.96	)%		2.61	%

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’s)	$	20,096		$	20,567		$	30,399		$	78,084		$	66,199		$	102,590
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.08	%⁽⁵⁾		1.92	%		1.86	%		1.80	%		1.74	%		1.74	%
After expense reimbursement⁽⁶⁾		1.29	%⁽⁵⁾		1.29	%		1.29	%		1.29	%		1.29	%		1.29	%
Ratio of net investment income
to average net assets:		4.34	%⁽⁵⁾		4.26	%		3.57	%		4.22	%		3.58	%		3.13	%
Portfolio turnover rate⁽⁷⁾		0	%		2	%		16	%		9	%		10	%		35	%

(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 Income Portfolio.

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

100

KINETICS MUTUAL FUNDS, INC. — THE FUND

Financial Highlights — (Continued)

	The Spin-off Fund
	No Load Class
	For the						December 11,
	Period Ended			For the			2017^
	June 30,			Year Ended			through
	2019			December 31,			December 31,
	(Unaudited)			2018			2017

PER SHARE DATA:⁽¹⁾
Net Asset Value, Beginning of Period	$	9.77		$	11.14		$	10.81
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.03			(0.08	)		0.00	⁽³⁾
Net realized and unrealized gain (loss) on investments		2.56			(0.84	)		0.33
Total from Investment Operations		2.59			(0.92	)		0.33
Redemption fees		—			—			—
Less Distributions:
From net realized gains		—			(0.45	)		—
Total Distributions		—			(0.45	)		—
Net Asset Value, End of Period	$	12.36		$	9.77		$	11.14
Total return		26.51	%⁽⁴⁾		(8.22	)%		3.05	%⁽⁴⁾

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’S)	$	14		$	11		$	10
Ratio of operating expenses to average net assets:
Before expense reimbursement		1.99	%⁽⁵⁾		1.84	%		1.70	%⁽⁵⁾
After expense reimbursement⁽⁶⁾		1.45	%⁽⁵⁾		1.45	%		1.45	%⁽⁵⁾
Ratio of net investment income to average net assets:		0.58	%⁽⁵⁾		(0.63	)%		(0.61	)%⁽⁵⁾
Portfolio turnover rate⁽⁴⁾		2	%		9	%		0	%

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

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

101

KINETICS MUTUAL FUNDS, INC. — THE FUND

Financial Highlights — (Continued)


	The Spin-off Fund
	Advisor Class A
	For the
	Period			For the			For the			For the			For the			For the			For the
	Ended			Year			Period			Year			Year			Year			Year
	June 30,			Ended			Ended			Ended			Ended			Ended			Ended
	2019			December 31,			December 31,			April 30,			April 30,			April 30,			April 30,
	(Unaudited)			2018			2017^			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value, Beginning
of Period	$	9.33		$	10.67		$	9.82		$	8.52		$	10.22		$	10.32		$	8.74
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.03			(0.08	)		(0.02	)		0.03			0.00	⁽³⁾		(0.03	)		(0.03	)
Net realized and unrealized gain
(loss) on investments		2.44			(0.81	)		1.29			1.45			(1.70	)		(0.07	)		1.60
Net Increase from payment by
affiliates		—			—			—			—			—			—			0.01
Total from Investment
Operations		2.47			(0.89	)		1.27			1.48			(1.70	)		(0.10	)		1.58
Redemption fees		—			—			—			—			—			—			—
Less Distributions:
From net investment income		—			—			0.00	⁽³⁾		—			—			—			—
From net realized gains		—			(0.45	)		(0.42	)		(0.18	)		—			—			—
Total Distributions		—			(0.45	)		(0.42	)		(0.18	)		—			—			—

Net Asset Value, End of Period	$	11.80		$	9.33		$	10.67		$	9.82		$	8.52		$	10.22		$	10.32
Total return⁽⁴⁾		26.47	%⁽⁵⁾		(8.30	)%		12.95	%⁽⁵⁾		17.36	%		(16.63	)%		(0.97	)%		18.08	%⁽⁸⁾

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’S)	$	3,934		$	3,303		$	4,322		$	4,583		$	6,067		$	14,604		$	12,536
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.24	%⁽⁶⁾		2.06	%		2.07	%⁽⁶⁾		2.45	%		1.74	%		1.77	%		1.94	%
After expense reimbursement⁽⁷⁾		1.50	%⁽⁶⁾		1.50	%		1.50	%⁽⁶⁾		1.50	%		1.50	%		1.50	%		1.50	%
Ratio of net investment income to
average net assets:		0.53	%⁽⁶⁾		(0.68	)%		(0.27	)%⁽⁶⁾		0.31	%		0.05	%		(0.30	)%		(0.32	)%
Portfolio turnover rate		2	%⁽⁵⁾		9	%		0	%⁽⁵⁾		11	%		2	%		40	%		18	%

^	For the period May 1, 2017 through December 31, 2017. The Fund changed its fiscal year end from April 30 to December 31.
(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)	Total return would have been 17.96% had the Advisor not reimbursed the Fund for the loss on a portfolio investment.

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

102

KINETICS MUTUAL FUNDS, INC. — THE FUND

Financial Highlights — (Continued)


	The Spin-off Fund
	Advisor Class C
	For the
	Period			For the			For the			For the			For the			For the			For the
	Ended			Year			Period			Year			Year			Year			Year
	June 30,			Ended			Ended			Ended			Ended			Ended			Ended
	2019			December 31,			December 31,			April 30,			April 30,			April 30,			April 30,
	(Unaudited)			2018			2017^			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value, Beginning
of Period	$	8.80		$	10.17		$	9.43		$	8.25		$	9.97		$	10.14		$	8.64
Income from Investment Operations:
Net investment income (loss)⁽²⁾		(0.01	)		(0.16	)		(0.07	)		(0.04	)		(0.06	)		(0.11	)		(0.09	)
Net realized and unrealized gain
(loss) on investments		2.30			(0.76	)		1.23			1.40			(1.66	)		(0.06	)		1.58
Net Increase from payment by
affiliates		—			—			—			—			—			—			0.01
Total from Investment
Operations		2.29			(0.92	)		1.16			1.36			(1.72	)		(0.17	)		1.50
Redemption fees		—			—			—			—			—			—			—
Less Distributions:
From net investment income		—			—			—			—			—			—			—
From net realized gains		—			(0.45	)		(0.42	)		(0.18	)		—			—			—
Total Distributions		—			(0.45	)		(0.42	)		(0.18	)		—			—			—

Net Asset Value, End of Period	$	11.09		$	8.80		$	10.17		$	9.43		$	8.25		$	9.97		$	10.14
Total return		26.02	%⁽³⁾		(9.00	)%		12.31	%⁽³⁾		16.46	%		(17.25	)%		(1.68	)%		17.36	%⁽⁶⁾

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’S)	$	4,274		$	4,114		$	5,526		$	5,678		$	6,290		$	12,057		$	10,701
Ratio of operating expenses to
average net assets:
Before expense reimbursement		2.74	%⁽⁴⁾		2.56	%		2.82	%⁽⁴⁾		3.20	%		2.49	%		2.52	%		2.53	%
After expense reimbursement⁽⁵⁾		2.25	%⁽⁴⁾		2.25	%		2.25	%⁽⁴⁾		2.25	%		2.25	%		2.25	%		2.09	%
Ratio of net investment income to
average net assets:		(0.22	)%⁽⁴⁾		(1.43	)%		(1.02	)%⁽⁴⁾		(0.44	)%		(0.70	)%		(1.05	)%		(0.91	)%
Portfolio turnover rate		2	%⁽³⁾		9	%		0	%⁽³⁾		11	%		2	%		40	%		18	%

^	For the period May 1, 2017 through December 31, 2017. The Fund changed its fiscal year end from April 30 to December 31.
(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)	Total return would have been 17.25% had the Advisor not reimbursed the Fund for the loss on a portfolio investment.

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

103

KINETICS MUTUAL FUNDS, INC. — THE FUND

Financial Highlights — (Continued)


	The Spin-off Fund
	Institutional Class
	For the
	Period			For the			For the			For the			For the			For the			For the
	Ended			Year			Period			Year			Year			Year			Year
	June 30,			Ended			Ended			Ended			Ended			Ended			Ended
	2019			December 31,			December 31,			April 30,			April 30,			April 30,			April 30,
	(Unaudited)			2018			2017^			2017			2016			2015			2014

PER SHARE DATA:⁽¹⁾
Net Asset Value, Beginning
of Period	$	9.36		$	10.68		$	9.85		$	8.53		$	10.20		$	10.27		$	8.67
Income from Investment Operations:
Net investment income (loss)⁽²⁾		0.04			(0.05	)		0.00	⁽³⁾		0.05			0.03			(0.01	)		(0.01	)
Net realized and unrealized gain
(loss) on investments		2.46			(0.82	)		1.29			1.45			(1.70	)		(0.06	)		1.60
Net Increase from payment by
affiliates		—			—			—			—			—			—			0.01
Total from Investment
Operations		2.50			(0.87	)		1.29			1.50			(1.67	)		(0.07	)		1.60
Redemption fees		—			—			0.00	⁽³⁾		—			—			—			—
Less Distributions:
From net investment income		—			—			(0.04	)		—			—			—			—
From net realized gains		—			(0.45	)		(0.42	)		(0.18	)		—			—			—
Total Distributions		—			(0.45	)		(0.46	)		(0.18	)		—			—			—

Net Asset Value, End of Period	$	11.86		$	9.36		$	10.68		$	9.85		$	8.53		$	10.20		$	10.27
Total return		26.71	%⁽⁴⁾		(8.11	)%		13.07	%⁽⁴⁾		17.57	%		(16.37	)%		(0.68	)%		18.45	%⁽⁶⁾

SUPPLEMENTAL DATA AND RATIOS
Net assets, end of period (000’S)	$	13,965		$	11,290		$	14,050		$	12,022		$	24,185		$	52,312		$	52,635
Ratio of operating expenses to
average net assets:
Before expense reimbursement		1.94	%⁽⁵⁾		1.76	%		1.83	%⁽⁵⁾		2.20	%		1.49	%		1.52	%		1.69	%
After expense reimbursement⁽⁷⁾		1.25	%⁽⁵⁾		1.25	%		1.25	%⁽⁵⁾		1.25	%		1.25	%		1.25	%		1.25	%
Ratio of net investment income
to average net assets:		0.78	%⁽⁵⁾		(0.43	)%		(0.02	)%⁽⁵⁾		0.56	%		0.30	%		(0.05	)%		(0.07	)%
Portfolio turnover rate		2	%⁽⁴⁾		9	%		0	%⁽⁴⁾		11	%		2	%		40	%		18	%

^	For the period May 1, 2017 through December 31, 2017. The Fund changed its fiscal year end from April 30 to December 31.
(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)	Total return would have been 18.34% had the Advisor not reimbursed the Fund for the loss on a portfolio investment.
(7)	See Note #3, Investment Adviser, for the waiver and expense reimbursement discussion.

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

104

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Consolidated Portfolio Assets

June 30, 2019 (Unaudited)

The Internet Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Finance and Insurance^#	$	42,752,171		30.8	%
Information		24,833,960		17.9	%
Mining, Quarrying, and Oil and Gas Extraction		16,547,252		11.9	%
Professional, Scientific, and Technical Services		8,897,584		6.4	%
Administrative and Support and Waste Management and
Remediation Services		7,212,228		5.2	%
Arts, Entertainment, and Recreation		1,163,360		0.8	%
Management of Companies and Enterprises		888,880		0.7	%
Retail Trade		93,496		0.1	%

*	Excludes Short-Term Investments
#	In the Finance and Insurance Sector, $32,478,042 represents a cryptocurrency investment of 23.4% of total net assets as of June 30, 2019.

105

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

Allocation of Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Global Portfolio


			Percentage
	Market		of Total
Country Allocation*	Value		Net Assets
United States^#	$	5,669,398		38.3	%
Canada		1,481,869		10.0	%
United Kingdom		355,460		2.4	%
France		311,275		2.1	%
Cayman Islands		242,000		1.6	%
Brazil		97,736		0.7	%
Australia		30,750		0.2	%
New Zealand		7,021		0.1	%
Guernsey		5,905		0.0	%
Bermuda		533		0.0	%

*	Excludes Short-Term Investments
#	In the United States Sector, $2,368,149 represents a cryptocurrency investment of 16.0% of total net assets as of June 30, 2019.

106

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Allocation of Consolidated Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Paradigm Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Mining, Quarrying, and Oil and Gas Extraction	$	346,663,251		41.7	%
Finance and Insurance^#		110,154,330		13.3	%
Information		73,287,710		8.8	%
Real Estate and Rental and Leasing		70,901,693		8.5	%
Management of Companies and Enterprises		45,344,303		5.5	%
Arts, Entertainment, and Recreation		39,044,382		4.7	%
Accommodation and Food Services		15,150,308		1.8	%
Professional, Scientific, and Technical Services		7,520,247		0.9	%
Manufacturing		4,368,375		0.5	%
Retail Trade		3,501,768		0.4	%
Transportation and Warehousing		3,232,211		0.4	%
Utilities		2,859,804		0.4	%

*	Excludes Short-Term Investments
#	In the Finance and Insurance Sector, $29,739,528 represents a cryptocurrency investment of 3.6% of total net assets as of June 30, 2019.

107

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Allocation of Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Medical Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Manufacturing	$	15,585,217		95.1	%
Professional, Scientific, and Technical Services		750,670		4.6	%

*	Excludes Short-Term Investments

108

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Allocation of Consolidated Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Small Cap Opportunities Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Mining, Quarrying, and Oil and Gas Extraction	$	94,916,290		30.3	%
Management of Companies and Enterprises		32,454,912		10.4	%
Real Estate and Rental and Leasing		24,049,982		7.7	%
Finance and Insurance^#		18,029,094		5.7	%
Accommodation and Food Services		12,576,880		4.0	%
Professional, Scientific, and Technical Services		12,506,209		4.0	%
Arts, Entertainment, and Recreation		10,931,250		3.5	%
Manufacturing		6,755,240		2.1	%
Transportation and Warehousing		6,497,902		2.1	%
Wholesale Trade		871,400		0.3	%
Information		304,196		0.1	%

*	Excludes Short-Term Investments
#	In the Finance and Insurance Sector, $4,646,800 represents a cryptocurrency investment of 1.5% of total net assets as of June 30, 2019.

109

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Allocation of Consolidated Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Market Opportunities Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Mining, Quarrying, and Oil and Gas Extraction	$	29,147,113		32.5	%
Finance and Insurance^#		16,131,387		18.0	%
Management of Companies and Enterprises		3,145,651		3.5	%
Real Estate and Rental and Leasing		2,765,240		3.1	%
Information		2,459,264		2.7	%
Transportation and Warehousing		417,574		0.5	%
Manufacturing		22,400		0.0	%
Wholesale Trade		20,880		0.0	%
Professional, Scientific, and Technical Services		5,695		0.0	%
Retail Trade		200		0.0	%

*	Excludes Short-Term Investments
#	In the Finance and Insurance Sector, $9,106,354 represents a cryptocurrency investment of 10.1% of total net assets as of June 30, 2019.

110

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Allocation of Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Alternative Income Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Finance and Insurance	$	5,853,461		31.2	%

*	Excludes Short-Term Investments

111

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Allocation of Portfolio Assets

June 30, 2019 (Unaudited) — (Continued)

The Multi-Disciplinary Income Portfolio


			Percentage
	Market		of Total
Sector Allocation*	Value		Net Assets
Manufacturing	$	6,113,399		16.7	%
Construction		6,078,890		16.6	%
Information		4,226,077		11.6	%
Mining, Quarrying, and Oil and Gas Extraction		3,694,980		10.1	%
Retail Trade		3,607,687		9.9	%
Finance and Insurance		3,148,148		8.6	%
Management of Companies and Enterprises		3,041,250		8.3	%
Transportation and Warehousing		2,773,073		7.6	%
Real Estate and Rental and Leasing		1,713,030		4.7	%
Professional, Scientific, and Technical Services		511,250		1.4	%

*	Excludes Short-Term Investments

112

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The Internet Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited)


COMMON STOCKS — 73.76%	Shares		Value
Administrative and Support Services — 5.20%
CreditRiskMonitor.com, Inc.^f		780	$	1,248
PayPal Holdings, Inc.*^c		63,000		7,210,980
				7,212,228
Broadcasting (except Internet) — 4.47%
The E.W. Scripps Company — Class A		40,000		611,600
The Madison Square Garden Company — Class A*		16,366		4,581,498
MSG Networks, Inc. — Class A*		49,100		1,018,334
				6,211,432
Credit Intermediation and Related Activities — 2.49%
LendingTree, Inc.*^		8,233		3,458,107
Data Processing, Hosting, and Related Services — 4.71%
IHS Markit Limited*		200		12,744
MasterCard, Inc. — Class A		7,000		1,851,710
Verisk Analytics, Inc.		7,000		1,025,220
Visa, Inc. — Class A		21,000		3,644,550
				6,534,224
Electronic Shopping and Mail-Order Houses — 0.06%
Liberty Expedia Holdings, Inc. — Class A*		1,800		86,022
Management of Companies and Enterprises — 0.64%
Galaxy Digital Holdings Ltd*		112,000		200,985
Icahn Enterprises LP		9,500		687,895
				888,880
Oil and Gas Extraction — 11.92%
Texas Pacific Land Trust^c		21,026		16,547,252
Other Information Services — 4.99%
Alphabet, Inc. — Class A*		3,200		3,464,960
Alphabet, Inc. — Class C*		3,200		3,458,912
				6,923,872
Other Motor Vehicle Dealers — 0.00%
Copart, Inc.*		100		7,474
Other Professional, Scientific, and Technical Services — 0.37%
GMO Internet, Inc.		28,400		514,185

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

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The Internet Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value
Other Telecommunications — 3.03%
Liberty Broadband Corporation — Series A*		8,000	$	822,720
Liberty Broadband Corporation — Series C*		8,000		833,760
Liberty Global plc — Series C*		59,800		1,586,494
Liberty Latin America Limited — Class C*		16,496		283,566
Liberty Media Corp.—Liberty SiriusXM — Class A*		18,000		680,580
				4,207,120
Professional, Scientific, and Technical Services — 6.04%
CACI International, Inc. — Class A*		29,200		5,974,028
Cookpad, Inc.*		268,000		763,122
ManTech International Corporation — Class A		25,000		1,646,250
				8,383,400
Satellite Telecommunications — 0.69%
EchoStar Corporation — Class A*		21,600		957,312
Securities and Commodity Exchanges — 0.48%
Cboe Global Markets, Inc.		6,424		665,719
Securities, Commodity Contracts, and Other Financial Investments
and Related Activities — 27.83%
CME Group, Inc.		4,180		811,380
Grayscale Bitcoin Trust*^^c		2,146,599		32,478,042
MarketAxess Holdings, Inc.		5,000		1,607,100
OTC Markets Group, Inc. — Class A		116,985		3,731,822
				38,628,344
Spectator Sports — 0.84%
Liberty Media Corp.—Liberty Braves — Class A*		8,000		222,400
Liberty Media Corp.—Liberty Braves — Class C*		8,000		223,760
Liberty Media Corp.—Liberty Formula One — Class A*		20,000		717,200
				1,163,360
TOTAL COMMON STOCKS
(cost $67,299,488)				102,388,931

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

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The Internet Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Principal
ESCROW NOTES — 0.00%	Amount		Value
Other Telecommunications — 0.00%
Adelphia Communications Corp. Preferred*+^a	$	190,000	$	—
TOTAL ESCROW NOTES
(cost $0)				—

SHORT-TERM INVESTMENTS — 26.14%	Shares
Money Market Funds — 0.00%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		1,802	1,802

	Principal
	Amount
U.S. Treasury Obligations — 26.14%
United States Treasury Bills^f
Maturity Date: 08/06/2019, Yield to Maturity 2.20%	$	35,478,000	35,404,117
Maturity Date: 08/13/2019, Yield to Maturity 2.02%		429,000	427,947
Maturity Date: 08/20/2019, Yield to Maturity 2.03%		453,000	451,688
			36,283,752
TOTAL SHORT-TERM INVESTMENTS
(cost $36,281,801)			36,285,554

INVESTMENTS PURCHASED WITH THE CASH
PROCEEDS FROM SECURITIES LENDING — 4.84%	Shares
Money Market Funds — 4.84%
First American Government Obligations Fund — Class X, 2.30%^b		6,714,974		6,714,974
TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS
FROM SECURITIES LENDING
(cost $6,714,974)				6,714,974
TOTAL INVESTMENTS — 104.74%
(cost $110,296,263)			$	145,389,459

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, 2019. Total loaned securities had a market value of $7,102,950 at June 30, 2019. The remaining contractual maturities of all of the securities lending transactions were overnight and continuous.

+ — Security is considered illiquid and was fair valued. The aggregate value of such securities is $0 or 0.00% of net assets.

a — Value determined using significant unobservable inputs.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

f — Level 2 Investment. See note 8.

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

115

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The Global Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


COMMON STOCKS — 55.22%	Shares		Value
Accommodation — 2.34%
Civeo Corporation*		201,600	$	346,752
Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) — 0.02%
PrairieSky Royalty Limited		200		2,810
Management of Companies and Enterprises — 4.22%
Bollore SA		68,000		300,013
Clarke, Inc.*^f		24,800		246,191
Galaxy Digital Holdings Ltd.*		44,000		78,958
				625,162
Mining (except Oil and Gas) — 3.56%
Franco-Nevada Corporation		3,600		305,568
NovaGold Resources, Inc.*		4,000		23,640
Wheaton Precious Metals Corporation		8,200		198,276
				527,484
Oil and Gas Extraction — 15.35%
Texas Pacific Land Trust^c		2,890		2,274,401
Other Financial Investment Activities — 1.54%
Brookfield Asset Management, Inc. — Class A		4,000		191,120
Burford Capital Limited		300		5,905
IMF Bentham Limited*		15,000		30,750
				227,775
Other Investment Pools and Funds — 0.47%
Partners Value Investments LP*^f		2,193		70,250
Other Pipeline Transportation — 0.08%
Rubis SCA		200		11,262
Other Telecommunications — 0.05%
Liberty Latin America Limited — Class A*		9		155
Liberty Latin America Limited — Class C*		22		378
NZME Limited		20,000		7,021
				7,554
Professional, Scientific, and Technical Services — 5.11%
CACI International, Inc. — Class A*^c		3,700		756,983

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

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The Global Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value
Securities and Commodity Exchanges — 1.44%
B3 SA - Brasil Bolsa Balcao		10,000	$	97,736
Cboe Global Markets, Inc.		1,118		115,858
				213,594
Securities, Commodity Contracts, and Other Financial Investments
and Related Activities — 17.01%
CME Group, Inc.		786		152,571
Grayscale Bitcoin Trust*^^c		156,520		2,368,149
				2,520,720
Support Activities for Mining — 1.63%
Siem Industries, Inc.*^f		5,500		242,000
Support Activities for Water Transportation — 2.40%
Braemar Shipping Services plc		2,000		4,826
Clarkson plc		11,000		350,634
				355,460
TOTAL COMMON STOCKS
(cost $4,303,574)				8,182,207

PREFERRED STOCKS — 0.08%
Other Investment Pools and Funds — 0.08%
Partners Value Investments LP — Class A		515		12,231
TOTAL PREFERRED STOCKS
(cost $9,785)				12,231

	Principal
CONVERTIBLE BONDS — 0.01%	Amount
Department Stores — 0.01%
Sears Holdings Corporation, 8.000%, 12/15/2019^ef	$	41,080		1,438
TOTAL CONVERTIBLE BONDS
(cost $41,080)				1,438

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

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The Global Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


WARRANTS — 0.04%	Shares		Value
Other Investment Pools and Funds — 0.04%
Partners Value Investments LP*^f
Expiration: 06/30/2026, Exercise Price: 32.45 CAD		1,893	$	6,071
TOTAL WARRANTS
(cost $7,160)				6,071
SHORT-TERM INVESTMENTS — 40.27%
Money Market Funds — 0.00%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		493		493

	Principal
	Amount
U.S. Treasury Obligations — 40.27%
United States Treasury Bills^f
Maturity Date: 07/02/2019, Yield to Maturity 2.24%	$	16,000	15,999
Maturity Date: 07/09/2019, Yield to Maturity 2.31%		15,000	14,993
Maturity Date: 07/30/2019, Yield to Maturity 2.26%		4,778,000	4,769,773
Maturity Date: 08/06/2019, Yield to Maturity 2.20%		1,016,000	1,013,884
Maturity Date: 08/13/2019, Yield to Maturity 2.02%		77,000	76,811
Maturity Date: 08/20/2019, Yield to Maturity 2.02%		75,000	74,783
			5,966,243
TOTAL SHORT-TERM INVESTMENTS
(cost $5,966,204)			5,966,736

INVESTMENTS PURCHASED WITH THE CASH
PROCEEDS FROM SECURITIES LENDING — 0.98%	Shares
Money Market Funds — 0.98%
First American Government Obligations Fund — Class X, 2.30%^b		145,578		145,578
TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS
FROM SECURITIES LENDING
(cost $145,578)				145,578
TOTAL INVESTMENTS — 96.60%
(cost $10,473,381)			$	14,314,261

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

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The Global Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (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, 2019. Total loaned securities had a market value of $154,568 at June 30, 2019. The remaining contractual maturities of all of the securities lending transactions were overnight and continuous.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

e — Default or other conditions exist and the security is not presently accruing income.

f — Level 2 Investment. See note 8.

CAD — Canadian Dollars.

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

119

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The Paradigm Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


COMMON STOCKS — 86.85%	Shares		Value
Accommodation — 0.47%
Civeo Corporation*		2,290,000	$	3,938,800
Amusement, Gambling, and Recreation Industries — 0.41%
Las Vegas Sands Corp.		38,900		2,298,601
MGM Resorts International		39,900		1,139,943
				3,438,544
Beverage and Tobacco Product Manufacturing — 0.06%
Crimson Wine Group Limited*		65,600		524,800
Broadcasting (except Internet) — 0.22%
CBS Corporation — Class B		36,000		1,796,400
Cable and Other Subscription Programming — 0.81%
Discovery Communications, Inc. — Class A*		148,600		4,562,020
Discovery Communications, Inc. — Class C*		75,800		2,156,510
				6,718,530
Chemical Manufacturing — 0.02%
Element Solutions, Inc.*		18,000		186,120
Data Processing, Hosting, and Related Services — 0.01%
IHS Markit Limited*		800		50,976
Electronic Shopping and Mail-Order Houses — 0.42%
Liberty Expedia Holdings, Inc. — Class A*		25,000		1,194,750
Qurate Retail, Inc.*		186,200		2,307,018
				3,501,768
Food Services and Drinking Places — 1.35%
The Wendy’s Company		572,600		11,211,508
Insurance Carriers and Related Activities — 1.89%
Markel Corporation*		14,400		15,690,240
Management of Companies and Enterprises — 5.45%
Associated Capital Group, Inc. — Class A		261,200		9,768,880
Bollore SA		336,000		1,482,415
Icahn Enterprises LP		468,200		33,902,362
RIT Capital Partners plc		7,200		190,645
				45,344,302
Mining (except Oil and Gas) — 2.21%
Franco-Nevada Corporation		216,600		18,385,008

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

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The Paradigm Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value
Motion Picture and Sound Recording Industries — 0.28%
Lions Gate Entertainment Corporation — Class B		167,800	$	1,948,158
Viacom, Inc. — Class B		12,000		358,440
				2,306,598
Oil and Gas Extraction — 39.34%
Continental Resources, Inc.*		47,200		1,986,648
Texas Pacific Land Trust^cd		411,203		323,612,649
Tourmaline Oil Corp.^f		113,600		1,446,946
				327,046,243
Other Financial Investment Activities — 5.18%
Brookfield Asset Management, Inc. — Class A		703,000		33,589,340
Brookfield Business Partners LP		5,000		191,550
GAMCO Investors, Inc. — Class A		1,800		34,506
Onex Corp.		152,600		9,223,861
				43,039,257
Other Investment Pools and Funds — 0.00%
Partners Value Investments LP*^f		800		25,627
Other Professional, Scientific, and Technical Services — 0.07%
GMO Internet, Inc.		32,000		579,363
Other Telecommunications — 5.93%
GCI Liberty, Inc. — Class A*		72,000		4,425,120
Liberty Broadband Corporation — Series A*		42,000		4,319,280
Liberty Broadband Corporation — Series C*		140,000		14,590,800
Liberty Media Corp.—Liberty SiriusXM — Class A*		284,000		10,738,040
Liberty Media Corp.—Liberty SiriusXM — Class C*		400,000		15,192,000
				49,265,240
Performing Arts, Spectator Sports, and Related Industries — 3.35%
Live Nation Entertainment, Inc.*		420,000		27,825,000
Professional, Scientific, and Technical Services — 0.83%
CACI International, Inc. — Class A*		32,200		6,587,798
Cookpad, Inc.*		124,000		353,087
				6,940,885
Real Estate — 8.53%
Dream Unlimited Corp. — Class A^f		272,000		1,510,015
Equity Lifestyle Properties, Inc. — REIT		67,700		8,214,718
The Howard Hughes Corporation*^c		494,000		61,176,960
				70,901,693

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

121

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The Paradigm Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value
Satellite Telecommunications — 1.58%
DISH Network Corporation — Class A*		110,200	$	4,232,782
EchoStar Corporation — Class A*		201,200		8,917,184
				13,149,966
Securities and Commodity Exchanges — 2.11%
Cboe Global Markets, Inc.		169,600		17,575,648
Securities, Commodity Contracts, and Other Financial Investments
and Related Activities — 4.07%
CME Group, Inc.		21,000		4,076,310
Grayscale Bitcoin Trust*^		1,965,600		29,739,528
				33,815,838
Spectator Sports — 0.94%
Liberty Media Corp.—Liberty Formula One — Class A*		92,000		3,299,120
Liberty Media Corp.—Liberty Formula One — Class C*		119,800		4,481,718
				7,780,838
Support Activities for Mining — 0.15%
Siem Industries, Inc.*^f		28,000		1,232,000
Support Activities for Water Transportation — 0.39%
Clarkson plc		101,400		3,232,211
Transportation Equipment Manufacturing — 0.44%
General Electric Company		336,000		3,528,000
Wabtec Corp.		1,804		129,455
				3,657,455
Utilities — 0.34%
Brookfield Infrastructure Partners LP		66,600		2,859,804
TOTAL COMMON STOCKS
(cost $352,563,837)				722,020,662

PREFERRED STOCKS — 0.00%
Other Investment Pools and Funds — 0.00%
Partners Value Investments LP — Class A		217		5,154
TOTAL PREFERRED STOCKS
(cost $1,764)				5,154

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

122

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The Paradigm Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Principal
ESCROW NOTES — 0.00%	Amount		Value
Other Telecommunications 0.00%
Adelphia Communications Corp.*+^a	$	200,000	$	—
TOTAL ESCROW NOTES
(cost $0)				—

WARRANTS — 0.00%	Shares
Other Investment Pools and Funds — 0.00%
Partners Value Investments LP*^f
Expiration: 06/30/2026, Exercise Price: 32.45 CAD		800	2,566
TOTAL WARRANTS
(cost $2,367)			2,566

SHORT-TERM INVESTMENTS — 13.21%
Money Market Funds — 0.02%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		129,884	129,884

	Principal
	Amount
U.S. Treasury Obligations — 13.19%
United States Treasury Bills^f
Maturity Date: 07/02/2019, Yield to Maturity 2.24%	$	826,000	825,955
Maturity Date: 07/16/2019, Yield to Maturity 2.27%		190,000	189,838
Maturity Date: 07/30/2019, Yield to Maturity 2.26%		16,529,000	16,500,539
Maturity Date: 08/06/2019, Yield to Maturity 2.20%		91,545,000	91,354,357
Maturity Date: 08/13/2019, Yield to Maturity 2.02%		715,000	713,246
Maturity Date: 08/20/2019, Yield to Maturity 2.03%		64,000	63,815
			109,647,750
TOTAL SHORT-TERM INVESTMENTS
(cost $109,766,364)			109,777,634

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

123

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Paradigm Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


INVESTMENTS PURCHASED WITH THE CASH
PROCEEDS FROM SECURITIES LENDING — 3.34%	Shares		Value

Money Market Funds — 3.34%
First American Government Obligations Fund — Class X, 2.30%^b		27,724,643	$	27,724,643
TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS
FROM SECURITIES LENDING
(cost $27,724,643)				27,724,643
TOTAL INVESTMENTS — 103.40%
(cost $490,058,975)			$	859,530,659

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, 2019. Total loaned securities had a market value of $29,436,762 at June 30, 2019. The remaining contractual maturities of all of the securities lending transactions were overnight and continuous.

+ — Security is considered illiquid and was fair valued. The aggregate value of such securities is $0.00 or 0.00% of net assets.

a — Value determined using significant unobservable inputs.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

d — Affiliated issuer. See note 10.

f — Level 2 Investment. See note 8.

CAD — Canadian Dollars.

REIT — Real Estate Investment Trust.

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

124

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Medical Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


COMMON STOCKS — 99.55%	Shares		Value
Chemical Manufacturing — 0.03%
Celldex Therapeutics, Inc.*		1,752	$	$4,696
Pharmaceutical and Medicine Manufacturing — 95.02%
AbbVie, Inc.		10,000		727,200
Agenus, Inc.*		148		444
Alkermes plc*		21,000		473,340
Arena Pharmaceuticals, Inc.*		4,500		263,835
AstraZeneca plc — ADR^c		24,000		990,720
Biogen, Inc.*^c		3,750		877,013
Bristol-Myers Squibb Company^c		20,500		929,675
Celgene Corporation*		7,000		647,080
Eli Lilly & Company^c		8,500		941,715
Gilead Sciences, Inc.		11,000		743,160
GlaxoSmithKline plc — ADR^c		22,673		907,373
Immune Pharmaceuticals, Inc.*		1		—
Ionis Pharmaceuticals, Inc.*		12,000		771,240
Johnson & Johnson^c		9,000		1,253,520
Madrigal Pharmaceuticals, Inc.*		514		53,872
Merck & Co., Inc.^c		15,000		1,257,750
Merrimack Pharmaceuticals, Inc.*		7,500		45,375
Novartis AG — ADR^c		14,000		1,278,340
Onconova Therapeutics, Inc.*		160		456
Pacific Biosciences of California, Inc.*		12,000		72,600
Pfizer, Inc.^c		32,000		1,386,240
Progenics Pharmaceuticals, Inc.*		67,200		414,624
Roche Holding AG Limited — ADR		11,000		386,100
Sanofi — ADR^c		25,000		1,081,750
Xenon Pharmaceuticals, Inc.*		7,000		69,020
				15,572,442
Professional, Scientific, and Technical Services — 4.50%
Amgen, Inc.		4,000		737,120
TOTAL COMMON STOCKS
(cost $12,004,329)				16,314,258

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

125

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Medical Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


RIGHTS — 0.13%	Shares		Value
Pharmaceutical and Medicine Manufacturing — 0.05%
Sanofi*		15,538	$	8,079
Scientific Research and Development Services — 0.08%
Ligand Pharmaceuticals, Inc.*^f		44,000		10,560
Ligand Pharmaceuticals, Inc.		44,000		2,200
Ligand Pharmaceuticals, Inc.*		44,000		570
Ligand Pharmaceuticals, Inc.*^#f		44,000		220
				13,550
TOTAL RIGHTS
(cost $0)				21,629

SHORT-TERM INVESTMENTS — 0.26%
Money Market Funds — 0.04%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		6,911		6,911

	Principal
	Amount
U.S. Treasury Obligations — 0.22%
United States Treasury Bills^f
Maturity Date: 07/16/2019, Yield to Maturity 2.25%	$	10,000		9,992
Maturity Date: 08/06/2019, Yield to Maturity 2.20%		26,000		25,946
				35,938
TOTAL SHORT-TERM INVESTMENTS
(cost $42,845)				42,849
TOTAL INVESTMENTS — 99.94%
(cost $12,047,174)			$	16,378,736

Percentages are stated as a percent of net assets.

* — Non-income producing security.

# — Contingent value right (contingent upon profitability of company).

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

f — Level 2 Investment. See note 8.

ADR — American Depository Receipt.

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

126

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Small Cap Opportunities Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


COMMON STOCKS — 69.61%	Shares		Value
Accommodation — 1.77%
Civeo Corporation*		3,214,000	$	5,528,080
Beverage and Tobacco Product Manufacturing — 0.26%
Crimson Wine Group Limited*		101,200		809,600
Chemical Manufacturing — 1.68%
Element Solutions, Inc.*		62,400		645,216
Inter Parfums, Inc.		69,600		4,627,704
				5,272,920
Food Services and Drinking Places — 2.25%
The Wendy’s Company		360,000		7,048,800
Funds, Trusts, and Other Financial Vehicles — 0.00%
Equity Commonwealth REIT		400		13,008
Machinery Manufacturing — 0.22%
Colfax Corporation*		24,000		672,720
Management of Companies and Enterprises — 10.36%
Associated Capital Group, Inc. — Class A		164,750		6,161,650
Dundee Corporation — Class A*		2,012,400		1,546,127
Galaxy Digital Holdings Ltd.*		448,000		803,940
Icahn Enterprises LP^c		306,100		22,164,701
RIT Capital Partners plc		67,000		1,774,063
Sandstorm Gold Ltd.*		800		4,432
				32,454,913
Merchant Wholesalers, Durable Goods — 0.28%
Dorman Products, Inc.*		10,000		871,400
Mining (except Oil and Gas) — 0.03%
Wheaton Precious Metals Corporation		4,400		106,392
Motion Picture and Sound Recording Industries — 0.01%
Lions Gate Entertainment Corporation — Class B		3,600		41,796
Oil and Gas Extraction — 30.27%
Permian Basin Royalty Trust		163,800		997,542
Texas Pacific Land Trust^c		119,204		93,812,356
				94,809,898
Other Financial Investment Activities — 1.28%
GAMCO Investors, Inc. — Class A		22,000		421,740
Onex Corporation^f		59,400		3,582,915
				4,004,655

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

127

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Small Cap Opportunities Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value
Other Investment Pools and Funds — 2.40%
JZ Capital Partners Limited*		25,800	$	159,237
Partners Value Investments LP*^f		191,000		6,118,476
Urbana Corporation — Class A		694,471		1,240,931
				7,518,644
Other Pipeline Transportation — 1.73%
Rubis SCA		96,100		5,411,314
Performing Arts, Spectator Sports, and Related Industries — 3.49%
Live Nation Entertainment, Inc.*		165,000		10,931,250
Professional, Scientific, and Technical Services — 3.99%
CACI International, Inc. — Class A*		50,300		10,290,877
Cookpad, Inc.*		778,000		2,215,332
				12,506,209
Real Estate — 7.68%
Dream Unlimited Corp. — Class A^f		2,188,400		12,148,958
The Howard Hughes Corporation*		96,100		11,901,024
				24,049,982
Securities, Commodity Contracts, and Other Financial Investments
and Related Activities — 1.48%
Grayscale Bitcoin Trust*^		307,125		4,646,800
Support Activities for Water Transportation — 0.35%
Braemar Shipping Services plc		450,322		1,086,588
Telecommunications — 0.08%
LICT Corporation*		16		262,400
TOTAL COMMON STOCKS
(cost $142,877,608)				218,047,369

PREFERRED STOCKS — 0.39%
Other Investment Pools and Funds — 0.39%
Partners Value Investments LP — Class A		51,933		1,233,409
TOTAL PREFERRED STOCKS
(cost $420,822)				1,233,409

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

128

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Small Cap Opportunities Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


WARRANTS — 0.20%	Shares		Value
Other Investment Pools and Funds — 0.20%
Partners Value Investments LP*^f
Expiration: 06/30/2026, Exercise Price: 32.45 CAD		191,000	$	612,577
TOTAL WARRANTS
(cost $564,856)				612,577

SHORT-TERM INVESTMENTS — 29.78%
Money Market Funds — 0.00%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		33		33

	Principal
	Amount
U.S. Treasury Obligations — 29.78%
United States Treasury Bills^f
Maturity Date: 07/30/2019, Yield to Maturity 2.26%	$	16,690,000	16,661,262
Maturity Date: 08/06/2019, Yield to Maturity 2.20%		76,800,000	76,640,064
			93,301,326
TOTAL SHORT-TERM INVESTMENTS
(cost $93,291,591)			93,301,359

INVESTMENTS PURCHASED WITH THE CASH
PROCEEDS FROM SECURITIES LENDING — 1.38%	Shares
Money Market Funds — 1.38%
First American Government Obligations Fund — Class X, 2.30%^b		4,332,755		4,332,755
TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS
FROM SECURITIES LENDING
(cost $4,332,755)				4,332,755
TOTAL INVESTMENTS — 101.36%
(cost $241,487,632)			$	317,527,469

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, 2019. Total loaned securities had a market value of $4,600,322 at June 30, 2019. The remaining contractual maturities of all of the securities lending transactions were overnight and continuous.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

f — Level 2 Investment. See note 8.

CAD— Canadian Dollars.

REIT — Real Estate Investment Trust.

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

129

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Market Opportunities Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


COMMON STOCKS — 59.84%	Shares		Value
Beverage and Tobacco Product Manufacturing — 0.02%
Crimson Wine Group Limited*		2,800	$	22,400
Data Processing, Hosting, and Related Services — 2.74%
IHS Markit Limited*		200		12,744
MasterCard, Inc. — Class A		4,000		1,058,120
Visa, Inc. — Class A		8,000		1,388,400
				2,459,264
Insurance Carriers and Related Activities — 0.77%
Arthur J. Gallagher & Co.		400		35,036
Markel Corporation*		600		653,760
				688,796
Management of Companies and Enterprises — 3.51%
Associated Capital Group, Inc. — Class A		33,800		1,264,120
Clarke, Inc.*^f		1,000		9,927
Dundee Corporation — Class A*		2,000		1,537
Galaxy Digital Holdings Ltd.*		110,000		197,396
Icahn Enterprises LP		23,100		1,672,671
				3,145,651
Merchant Wholesalers, Durable Goods — 0.02%
A-Mark Precious Metals, Inc.*		1,600		20,880
Mining (except Oil and Gas) — 0.62%
Franco-Nevada Corporation		4,800		407,424
Wheaton Precious Metals Corporation		6,200		149,916
				557,340
Oil and Gas Extraction — 31.86%
Texas Pacific Land Trust^c		36,328		28,589,773
Other Financial Investment Activities — 0.70%
GAMCO Investors, Inc. — Class A		3,800		72,846
Oaktree Capital Group LLC		9,000		445,860
Sprott, Inc.		41,155		105,908
				624,614
Other Investment Pools and Funds — 2.27%
Partners Value Investments LP*^f		43,516		1,393,987
Urbana Corporation^f		3,200		5,865
Urbana Corporation — Class A		356,004		636,134
				2,035,986

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

130

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Market Opportunities Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Shares		Value
Professional, Scientific, and Technical Services — 0.01%
Cookpad, Inc.*		2,000	$	5,695
Real Estate — 3.08%
Dream Unlimited Corp. — Class A^f		272,800		1,514,456
The Howard Hughes Corporation*		10,100		1,250,784
				2,765,240
Securities and Commodity Exchanges — 1.40%
Cboe Global Markets, Inc.		7,806		808,936
NASDAQ, Inc.		1,800		173,106
NZX Limited		359,002		270,118
				1,252,160
Securities, Commodity Contracts, and Other Financial Investments
and Related Activities — 12.38%
CME Group, Inc.		5,891		1,143,502
Grayscale Bitcoin Trust*^^c		601,874		9,106,354
IntercontinentalExchange Group, Inc.		10,000		859,400
				11,109,256
Support Activities for Water Transportation — 0.46%
Clarkson plc		13,100		417,574
TOTAL COMMON STOCKS
(cost $24,131,501)				53,694,629

PREFERRED STOCKS — 0.31%
Other Investment Pools and Funds — 0.31%
Partners Value Investments LP — Class A		11,832		281,010
TOTAL PREFERRED STOCKS
(cost $219,010)				281,010

	Principal
CONVERTIBLE BONDS — 0.00%	Amount
Department Stores — 0.00%
Sears Holdings Corporation, 8.000%, 12/15/2019^ef	$	5,720	200
TOTAL CONVERTIBLE BONDS
(cost $5,720)			200

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

131

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Market Opportunities Portfolio

Consolidated Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


WARRANTS — 0.16%	Shares		Value

Other Investment Pools and Funds — 0.16%
Partners Value Investments LP*^f
Expiration: 06/30/2026, Exercise Price: 32.45 CAD		43,516	$	139,565
TOTAL WARRANTS
(cost $130,104)				139,565

SHORT-TERM INVESTMENTS — 39.14%
Money Market Funds — 0.00%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		1,150		1,150

	Principal
	Amount
U.S. Treasury Obligations — 39.14%
United States Treasury Bills^f
Maturity Date: 07/02/2019, Yield to Maturity 2.24%	$	7,000	7,000
Maturity Date: 07/30/2019, Yield to Maturity 2.26%		8,861,000	8,845,742
Maturity Date: 08/06/2019, Yield to Maturity 2.20%		26,012,000	25,957,830
Maturity Date: 08/13/2019, Yield to Maturity 2.05%		80,000	79,804
Maturity Date: 08/20/2019, Yield to Maturity 2.02%		230,000	229,334
			35,119,710
TOTAL SHORT-TERM INVESTMENTS
(cost $35,117,303)			35,120,860

INVESTMENTS PURCHASED WITH THE CASH
PROCEEDS FROM SECURITIES LENDING — 1.38%	Shares
Money Market Funds — 1.38%
First American Government Obligations Fund — Class X, 2.30%^b		1,241,317		1,241,317
TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS
FROM SECURITIES LENDING
(cost $1,241,317)				1,241,317
TOTAL INVESTMENTS — 100.83%
(cost $60,844,955)			$	90,477,581

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, 2019. Total loaned securities had a market value of $1,317,974 at June 30, 2019. The remaining contractual maturities of all of the securities lending transactions were overnight and continuous.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

e — Default or other conditions exist and the security is not presently accruing income.

f — Level 2 Investment. See note 8.

CAD— Canadian Dollars.

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

132

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Alternative Income Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


EXCHANGE TRADED FUNDS — 31.15%	Shares		Value
Funds, Trusts, and Other Financial Vehicles — 31.15%
iShares 1-3 Year Credit Bond ETF		54,000	$	2,885,760
PIMCO Enhanced Short Maturity Active ETF		4,700		478,225
SPDR Barclays Short Term Corporate Bond ETF^#		24,000		738,720
Vanguard Short-Term Corporate Bond ETF		21,700		1,750,756
TOTAL EXCHANGE TRADED FUNDS
(cost $5,804,792)				5,853,461

SHORT-TERM INVESTMENTS — 67.05%
Money Market Funds — 12.50%
Fidelity Institutional Government Portfolio — Class I, 2.26%^#b		2,348,988		2,348,988

	Principal
	Amount
U.S. Treasury Obligations — 54.55%
United States Treasury Bills^f
Maturity Date: 08/06/2019, Yield to Maturity 2.20%	$	10,272,000		10,250,609
TOTAL SHORT-TERM INVESTMENTS
(cost $12,598,493)				12,599,597
TOTAL INVESTMENTS — 98.20%
(cost $18,403,285)			$	18,453,058

Percentages are stated as a percent of net assets.

# — All or a portion of the securities have been committed as collateral for written option contracts, totaling $3,087,056.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

f — Level 2 Investment. See note 8.

ETF — Exchange Traded Fund.

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

133

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Multi-Disciplinary Income Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Principal
CONVERTIBLE BONDS — 1.72%	Amount		Value
Pipeline Transportation of Natural Gas — 1.72%
Cheniere Energy, Inc., 4.250%, 03/15/2045^f	$	800,000	$	630,480
TOTAL CONVERTIBLE BONDS
(cost $638,274)				630,480

CORPORATE BONDS — 84.71%
Advertising, Public Relations, and Related Services — 1.40%
Lamar Media Corp., 5.000%, 05/01/2023^f		500,000		511,250
Broadcasting (except Internet) — 5.92%
Altice Luxembourg SA, 7.750%, 05/15/2022◾^f		250,000		254,688
Cablevision Systems Corporation, 5.875%, 09/15/2022^f		200,000		210,500
Sinclair Television Group, Inc., 5.375%, 04/01/2021^f		250,000		250,781
Sirius XM Radio, Inc., 4.625%, 05/15/2023◾^f		1,050,000		1,065,750
TEGNA, Inc.^f
5.125%, 10/15/2019		133,000		133,333
5.125%, 07/15/2020		250,000		250,937
				2,165,989
Chemical Manufacturing — 10.56%
Ashland, Inc., 4.750%, 08/15/2022^cf		3,000,000		3,146,250
The Chemours Company^f
6.625%, 05/15/2023		474,000		492,069
7.000%, 05/15/2025		214,000		224,165
				3,862,484
Construction of Buildings — 16.63%
Brookfield Residential Properties^cf
6.500%, 12/15/2020◾		3,250,000		3,258,125
6.125%, 07/01/2022◾		100,000		102,000
6.375%, 05/15/2025◾		651,000		660,765
Lennar Corporation, 4.750%, 11/15/2022^cf		1,960,000		2,058,000
				6,078,890
Deep Sea, Coastal, and Great Lakes Water Transportation — 5.42%
Stolt-Nielsen Limited, 6.375%, 09/21/2022^cf		2,000,000		1,981,833
Fabricated Metal Product Manufacturing — 0.66%
Ball Corporation, 5.250%, 07/01/2025^f		224,000		243,040

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

134

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Multi-Disciplinary Income Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Principal
	Amount		Value
Food Manufacturing — 5.49%
Lamb Weston Holdings, Inc.^cf
4.625%, 11/01/2024◾	$	1,000,000	$	1,041,250
4.875%, 11/01/2026◾		925,000		966,625
				2,007,875
Management of Companies and Enterprises — 8.32%
Icahn Enterprises, 5.875%, 02/01/2022^cf		3,000,000		3,041,250
Metal Ore Mining — 0.75%
Teck Resources Limited, 4.750%, 01/15/2022^f		264,000		273,581
Motor Vehicle and Parts Dealers — 9.87%
Penske Automotive Group, Inc., 5.750%, 10/01/2022^cf		3,550,000		3,607,687
Oil and Gas Extraction — 6.31%
Continental Resources, Inc., 5.000%, 09/15/2022^f		479,000		483,427
Murphy Oil Corp., 4.450%, 12/01/2022^f		1,208,000		1,224,610
QEP Resources, Inc.^f
6.875%, 03/01/2021		250,000		258,125
5.375%, 10/01/2022		120,000		117,150
5.250%, 05/01/2023		230,000		222,525
				2,305,837
Publishing Industries (except Internet) — 0.70%
Tribune Media Company, 5.875%, 07/15/2022^f		250,000		255,600
Real Estate — 4.69%
The Howard Hughes Corporation, 5.375%, 03/15/2025◾^f		1,650,000		1,713,030
Support Activities for Mining — 3.05%
Ensco plc, 4.700%, 03/15/2021^f		600,000		560,562
Rowan Companies, Inc., 4.875%, 06/01/2022^f		600,000		555,000
				1,115,562
Telecommunications — 4.94%
CenturyLink, Inc., 5.800%, 03/15/2022^f		500,000		523,750
Crown Castle International Corp., 4.875%, 04/15/2022^f		700,000		744,488
Hughes Satellite Systems Corp., 7.625%, 06/15/2021^f		500,000		536,250
				1,804,488
TOTAL CORPORATE BONDS
(cost $30,283,874)				30,968,396

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

135

KINETICS PORTFOLIOS TRUST — MASTER INVESTMENT PORTFOLIOS

The Multi-Disciplinary Income Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)


	Principal
MUNICIPAL BONDS — 0.44%	Amount		Value
Support Activities for Air Transportation — 0.44%
Branson Missouri Regional Airport Transportation Development District,
5.000%, 04/01/2043+^ef	$	1,045,935	$	160,760
TOTAL MUNICIPAL BONDS
(cost $2,253,382)				160,760

CLOSED-END FUNDS — 8.61%	Shares
Funds, Trusts, and Other Financial Vehicles — 8.61%
DoubleLine Opportunistic Credit Fund		50,900	1,064,828
PIMCO Dynamic Income Fund^		64,800	2,083,320
TOTAL CLOSED-END FUNDS
(cost $3,353,432)			3,148,148
SHORT-TERM INVESTMENTS — 3.62%
Money Market Funds — 0.02%
Fidelity Institutional Government Portfolio — Class I, 2.26%^b		5,809	5,809

	Principal
	Amount
U.S. Treasury Obligations — 3.60%
United States Treasury Bills^f
Maturity Date: 07/30/2019, Yield to Maturity 2.10%	$	1,318,000	1,315,731
TOTAL SHORT-TERM INVESTMENTS
(cost $1,321,590)			1,321,540

INVESTMENTS PURCHASED WITH THE CASH
PROCEEDS FROM SECURITIES LENDING — 5.46%	Shares
Money Market Funds — 5.46%
First American Government Obligations Fund — Class X, 2.30%^b		1,995,000		1,995,000
TOTAL INVESTMENTS PURCHASED WITH THE CASH PROCEEDS
FROM SECURITIES LENDING
(cost $1,995,000)				1,995,000
TOTAL INVESTMENTS — 104.56%
(cost $39,845,552)			$	38,224,324

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

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The Multi-Disciplinary Income Portfolio

Portfolio of Investments — June 30, 2019 (Unaudited) — (Continued)

Percentages are stated as a percent of net assets.

◾— The percentage of net assets comprised of 144a securities was 24.79%.

^ — This security or a portion of this security was out on loan at June 30, 2019. Total loaned securities had a market value of $1,929,000 at June 30, 2019. The remaining contractual maturities of all of the securities lending transactions were overnight and continuous.

+ — Security is considered illiquid. The aggregate value of such securities is $160,760 or 0.44% of net assets.

b — The rate quoted is the annualized seven-day yield as of June 30, 2019.

c — Significant Investment. See note 2.

e — Default or other conditions exist and the security is not presently accruing income.

f — Level 2 Investment. See note 8.

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

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Statements of Assets & Liabilities

June 30, 2019 (Unaudited)


	The Internet		The Global
	Portfolio		Portfolio
	(Consolidated)		(Consolidated)
ASSETS:
Investments, at value⁽¹⁾⁽²⁾	$	145,389,459	$	14,314,261
Cash		603		1,207
Receivable for contributed capital		338,036		670,185
Receivable for investments sold		31,685		—
Dividends and interest receivable		2,362		16,331
Prepaid expenses and other assets		12,770		559
Total Assets		145,774,915		15,002,543
LIABILITIES:
Payable to Adviser		133,378		13,665
Payable to Trustees		2,810		288
Payable to Chief Compliance Officer		185		20
Payable for collateral received for securities loaned		6,714,974		145,578
Payable for withdrawn capital		65,543		4,245
Accrued expenses and other liabilities		47,240		20,837
Total Liabilities		6,964,130		184,633
Net Assets	$	138,810,785	$	14,817,910
⁽¹⁾ Cost of investments	$	110,296,263	$	10,473,381
⁽²⁾ Includes loaned securities with a market value of	$	7,102,950	$	154,568

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

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Statements of Assets & Liabilities — (Continued)

June 30, 2019 (Unaudited)


	The Paradigm
	Portfolio		The Medical
	(Consolidated)		Portfolio
ASSETS:
Investments, at value
Unaffiliated issuers⁽¹⁾	$	535,918,010	$	16,378,736
Affiliated issuers⁽²⁾		323,612,649		—
Total investments, at value⁽³⁾⁽⁴⁾	$	859,530,659	$	16,378,736
Cash		13,469		—
Receivable for contributed capital		730,278		47
Receivable for investments sold		381,434		—
Dividends and interest receivable		105,035		50,749
Prepaid expenses and other assets		66,772		1,207
Total Assets		860,827,647		16,430,739
LIABILITIES:
Payable to Adviser		821,306		16,746
Payable to Trustees		18,792		381
Payable to Chief Compliance Officer		1,268		27
Payable for collateral received for securities loaned		27,724,643		—
Payable for withdrawn capital		771,983		6,661
Accrued expenses and other liabilities		189,824		18,761
Total Liabilities		29,527,816		42,576
Net Assets	$	831,299,831	$	16,388,163
⁽¹⁾ Unaffiliated issuers cost	$	445,598,895	$	12,047,174
⁽²⁾ Affiliated issuers cost	$	44,460,080	$	—
⁽³⁾ Total issuers cost	$	490,058,975	$	12,047,174
⁽⁴⁾ Includes loaned securities with a market value of	$	29,436,762	$	—

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

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Statements of Assets & Liabilities — (Continued)

June 30, 2019 (Unaudited)


	The Small Cap		The Market
	Opportunities		Opportunities
	Portfolio		Portfolio
	(Consolidated)		(Consolidated)
ASSETS:
Investments, at value⁽¹⁾⁽²⁾	$	317,527,469	$	90,477,581
Cash		36,314		5,372
Receivable for contributed capital		466,063		608,998
Receivable for investments sold		47,993		14,451
Dividends and interest receivable		325,186		8,237
Prepaid expenses and other assets		14,612		4,048
Total Assets		318,417,637		91,118,687
LIABILITIES:
Payable to Adviser		326,547		87,715
Payable to Trustees		7,555		1,943
Payable to Chief Compliance Officer		442		133
Payable for securities purchased		41,066		9,584
Payable for collateral received for securities loaned		4,332,755		1,241,317
Payable for withdrawn capital		363,509		4,359
Accrued expenses and other liabilities		87,425		38,873
Total Liabilities		5,159,299		1,383,924
Net Assets	$	313,258,338	$	89,734,763
⁽¹⁾ Cost of investments	$	241,487,632	$	60,844,955
⁽²⁾ Includes loaned securities with a market value of	$	4,600,322	$	1,317,974

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

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Statements of Assets & Liabilities — (Continued)

June 30, 2019 (Unaudited)


			The Multi-
	The Alternative		Disciplinary
	Income		Income
	Portfolio		Portfolio
ASSETS:
Investments, at value⁽¹⁾⁽²⁾	$	18,453,058	$	38,224,324
Cash at broker		360,482		—
Receivable for contributed capital		10,995		10,928
Dividends and interest receivable		4,362		414,298
Prepaid expenses and other assets		584		10,329
Total Assets		18,829,481		38,659,879
LIABILITIES:
Payable to Adviser		13,996		38,392
Payable to Trustees		437		855
Payable to Chief Compliance Officer		34		60
Payable for collateral received for securities loaned		—		1,995,000
Payable for withdrawn capital		4,228		44,106
Accrued expenses and other liabilities		19,318		24,325
Total Liabilities		38,013		2,102,738
Net Assets	$	18,791,468	$	36,557,141
⁽¹⁾ Cost of investments	$	18,403,285	$	39,845,552
⁽²⁾ Includes loaned securities with a market value of	$	—	$	1,929,000

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

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Statements of Operations

For the Six Months Ended June 30, 2019 (Unaudited)


	The Internet			The Global
	Portfolio			Portfolio
	(Consolidated)			(Consolidated)
INVESTMENT INCOME:
Dividends†	$	216,849		$	34,710
Interest		445,649			67,137
Income from securities lending		69,735			2,974
Total investment income		732,233			104,821
EXPENSES:
Investment advisory fees		741,184			76,449
Administration fees		34,672			9,554
Professional fees		14,839			7,293
Fund accounting fees		12,152			2,514
Trustees’ fees		6,107			629
Chief Compliance Officer fees		1,059			114
Custodian fees and expenses		6,063			2,897
Registration fees		523			522
Other expenses		2,595			253
Total expenses		819,194			100,225
Net investment income (loss)		(86,961	)		4,596
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments and foreign currency		(83,490	)		1,495
Net change in unrealized appreciation of:
Investments and foreign currency		39,609,993			3,023,218
Net realized and unrealized gain on investments		39,526,503			3,024,713
Net increase in net assets resulting from operations	$	39,439,542		$	3,029,309
† Net of foreign taxes withheld of:	$	733		$	1,264

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, 2019 (Unaudited)


	The Paradigm
	Portfolio			The Medical
	(Consolidated)			Portfolio
INVESTMENT INCOME:
Dividends†	$	1,013,385		$	263,966
Interest		1,245,298			1,121
Income from securities lending		101,261			8,307
Dividends from affiliated issuer		2,494,818			—
Total investment income		4,854,762			273,394
EXPENSES:
Investment advisory fees		4,896,977			104,158
Administration fees		195,413			10,504
Professional fees		42,627			4,825
Fund accounting fees		76,704			2,543
Trustees’ fees		40,173			896
Chief Compliance Officer fees		7,461			164
Custodian fees and expenses		45,627			2,684
Registration fees		24			24
Other expenses		14,943			346
Total expenses		5,319,949			126,144
Net investment income (loss)		(465,187	)		147,250
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments and foreign currency		(2,740,267	)		514,789
Affiliated issuer		6,373,889			—
Net change in unrealized appreciation of:
Investments and foreign currency		91,069,133			49,960
Affiliated Issuer		96,664,965			—
Net realized and unrealized gain on investments		191,367,720			564,749
Net increase in net assets resulting from operations	$	190,902,533		$	711,999
† Net of foreign taxes withheld of:	$	60,798		$	16,223

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, 2019 (Unaudited)


	The Small Cap			The Market
	Opportunities			Opportunities
	Portfolio			Portfolio
	(Consolidated)			(Consolidated)
INVESTMENT INCOME:
Dividends†	$	1,194,773		$	293,042
Interest		1,152,714			406,093
Income from securities lending		16,437			14,388
Total investment income		2,363,924			713,523
EXPENSES:
Investment advisory fees		1,900,837			510,411
Administration fees		78,985			26,096
Professional fees		24,824			14,331
Fund accounting fees		30,138			9,182
Trustees’ fees		15,274			4,224
Chief Compliance Officer fees		2,887			777
Custodian fees and expenses		20,952			7,179
Registration fees		26			524
Other expenses		5,105			1,552
Total expenses		2,079,028			574,276
Net investment income		284,896			139,247
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on:
Investments and foreign currency		(743,747	)		(101,265	)
Net change in unrealized appreciation of:
Investments and foreign currency		52,372,737			18,380,470
Net realized and unrealized gain on investments		51,628,990			18,279,205
Net increase in net assets resulting from operations	$	51,913,886		$	18,418,452
† Net of foreign taxes withheld of:	$	43,374		$	4,764

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, 2019 (Unaudited)


				The Multi-
	The Alternative			Disciplinary
	Income			Income
	Portfolio			Portfolio
INVESTMENT INCOME:
Dividends	$	72,599		$	120,648
Interest		151,191			919,792
Income from securities lending		—			12,435
Total investment income		223,790			1,052,875
EXPENSES:
Investment advisory fees		85,647			233,768
Administration fees		11,802			16,409
Professional fees		4,919			5,773
Fund accounting fees		2,274			7,417
Trustees’ fees		1,018			1,999
Chief Compliance Officer fees		188			355
Custodian fees and expenses		2,881			3,410
Registration fees		25			27
Other expenses		409			828
Total expenses		109,163			269,986
Net investment income		114,627			782,889
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments and foreign currency		(97	)		(17,633	)
Written option contracts expired or closed		31,663			—
Net change in unrealized appreciation (depreciation) of:
Investments and foreign currency		176,550			1,796,085
Written option contracts		(26,903	)		—
Net realized and unrealized gain on investments		181,213			1,778,452
Net increase in net assets resulting from operations	$	295,840		$	2,561,341

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
	(Consolidated)						(Consolidated)
	For the			For the			For the			For the
	Period Ended			Year Ended			Period Ended			Year Ended
	June 30, 2019			December 31,			June 30, 2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

OPERATIONS:
Net investment income (loss)	$	(86,961	)	$	(852,933	)	$	4,596		$	(79,686	)
Net realized gain (loss) on sale of
investments and foreign currency		(83,490	)		32,301,030			1,495			(276,114	)
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		39,609,993			(74,922,835	)		3,023,218			(3,293,146	)
Net increase (decrease) in net assets
resulting from operations		39,439,542			(43,474,738	)		3,029,309			(3,648,946	)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
BENEFICIAL INTEREST
TRANSACTIONS:
Contributions		1,344,150			6,470,678			1,413,922			1,307,577
Withdrawals		(7,867,500	)		(25,363,999	)		(597,317	)		(2,373,818	)
Net increase (decrease) in net assets
resulting from beneficial
interest transactions		(6,523,350	)		(18,893,321	)		816,605			(1,066,241	)
Total increase (decrease) in
net assets		32,916,192			(62,368,059	)		3,845,914			(4,715,187	)
NET ASSETS:
Beginning of period		105,894,593			168,262,652			10,971,996			15,687,183
End of period	$	138,810,785		$	105,894,593		$	14,817,910		$	10,971,996

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
	(Consolidated)						The Medical Portfolio
	For the			For the			For the			For the
	Period Ended			Year Ended			Period Ended			Year Ended
	June 30, 2019			December 31,			June 30, 2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018
OPERATIONS:
Net investment income (loss)	$	(465,187	)	$	(5,456,085	)	$	147,250		$	171,494
Net realized gain on sale of
investments and foreign currency		3,633,622			129,576,341			514,789			1,560,378
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		187,734,098			(165,251,075	)		49,960			(1,466,285	)
Net increase (decrease) in net assets
resulting from operations		190,902,533			(41,130,819	)		711,999			265,587
NET DECREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTEREST TRANSACTIONS:
Contributions		12,314,598			77,369,100			107,412			206,115
Withdrawals		(30,196,966	)		(168,838,467	)		(900,940	)		(3,464,345	)
Net decrease in net assets resulting
from beneficial interest
transactions		(17,882,368	)		(91,469,367	)		(793,528	)		(3,258,230	)
Total increase (decrease) in net assets		173,020,165			(132,600,186	)		(81,529	)		(2,992,643	)
NET ASSETS:
Beginning of period		658,279,666			790,879,852			16,469,692			19,462,335
End of period	$	831,299,831		$	658,279,666		$	16,388,163		$	16,469,692

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
	(Consolidated)						(Consolidated)
	For the			For the			For the			For the
	Period Ended			Year Ended			Period Ended			Year Ended
	June 30, 2019			December 31,			June 30, 2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018

OPERATIONS:
Net investment income (loss)	$	284,896		$	(909,931	)	$	139,247		$	(250,527	)
Net realized gain (loss) on sale of
investments and foreign currency		(743,747	)		1,460,421			(101,265	)		3,266,854
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency		52,372,737			(7,770,750	)		18,380,470			(12,167,425	)
Net increase (decrease) in net assets
resulting from operations		51,913,886			(7,220,260	)		18,418,452			(9,151,098	)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
BENEFICIAL INTEREST
TRANSACTIONS:
Contributions		81,589,788			153,048,372			2,273,853			12,968,925
Withdrawals		(43,638,951	)		(103,903,461	)		(3,896,070	)		(8,159,216	)
Net increase (decrease) in net assets
resulting from beneficial
interest transactions		37,950,837			49,144,911			(1,622,217	)		4,809,709
Total increase (decrease) in net assets		89,864,723			41,924,651			16,796,235			(4,341,389	)
NET ASSETS:
Beginning of period		223,393,615			181,468,964			72,938,528			77,279,917
End of period	$	313,258,338		$	223,393,615		$	89,734,763		$	72,938,528

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

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Statements of Changes in Net Assets — (Continued)


	The Alternative						The Multi-Disciplinary
	Income Portfolio						Income Portfolio
	For the			For the			For the			For the
	Period Ended			Year Ended			Period Ended			Year Ended
	June 30, 2019			December 31,			June 30, 2019			December 31,
	(Unaudited)			2018			(Unaudited)			2018
OPERATIONS:
Net investment income	$	114,627		$	167,001		$	782,889		$	1,794,418
Net realized gain (loss) on sale of
investments, foreign currency and
written options		31,566			12,409			(17,633	)		(106,210	)
Net change in unrealized appreciation
(depreciation) of investments, foreign
currency and written options		149,647			(52,766	)		1,796,085			(2,054,163	)
Net increase (decrease) in net assets
resulting from operations		295,840			126,644			2,561,341			(365,955	)
NET DECREASE IN NET ASSETS
RESULTING FROM BENEFICIAL
INTEREST TRANSACTIONS:
Contributions		1,124,330			2,933,892			880,319			5,144,814
Withdrawals		(1,760,794	)		(7,035,790	)		(4,300,976	)		(16,568,073	)
Net decrease in net assets resulting
from beneficial interest
transactions		(636,464	)		(4,101,898	)		(3,420,657	)		(11,423,259	)
Total decrease in net assets		(340,624	)		(3,975,254	)		(859,316	)		(11,789,214	)
NET ASSETS:
Beginning of period		19,132,092			23,107,346			37,416,457			49,205,671
End of period	$	18,791,468		$	19,132,092		$	36,557,141		$	37,416,457

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

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Notes to Consolidated Financial Statements

June 30, 2019 (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 Income Portfolio (collectively, the “Master Portfolios”). Pursuant to the 1940 Act, the Master Portfolios, are “non-diversified” series of the Trust, except The Global Portfolio, The Alternative Income Portfolio and The Multi-Disciplinary Income Portfolio. The Market Opportunities Portfolio commenced operations on January 31, 2006, The Alternative Income Portfolio commenced operations on June 29, 2007 and The Multi-Disciplinary Income Portfolio commenced operations on February 11, 2008. Each of the remaining Master Portfolios commenced operations on April 28, 2000.

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

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

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

positioned to reduce their costs, extend the reach of their distribution channels and experience significant growth in their assets or revenues. The Medical Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in medical research, pharmaceutical treatments and related medical technology industries and related technology industries, generally, with a focus on companies engaged in cancer research and drug development. The Small Cap Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign small capitalized companies that provide attractive valuation opportunities due to special situations such as lack of institutional ownership, lack of significant analyst coverage or companies with sound fundamentals that have experienced a short-term earnings shortfall. The Market Opportunities Portfolio invests primarily in the equity securities of U.S. and foreign companies engaged in capital markets or related to capital markets, as well as companies involved in the gaming industry. The Alternative Income and Multi-Disciplinary Income Portfolios utilize a two-part investment strategy, which includes fixed income and derivatives components. The Internet Portfolio, Global Portfolio, Paradigm Portfolio, Small Cap Opportunities Portfolio and Market Opportunities Portfolio utilize wholly-owned subsidiaries to achieve their investment objectives. Please see Note 2 for further details.

2. Significant Accounting Policies

Security Valuation

Master Portfolios equity securities that are listed on a 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, including exchange-traded funds, that are traded using the National Association of Securities Dealers’ Automated Quotation System (“NASDAQ”) are valued using the NASDAQ Official Closing Price (“NOCP”). In the event market quotations are not readily available or if events occur that may materially affect the value of a particular security between the time trading ends on a particular security and the close of regular trading on the New York Stock Exchange (“NYSE”), “fair value” will be determined. Unlisted equity securities and listed equity securities not traded on the valuation date for which market quotations are readily available are valued at the last bid price. Futures, options on futures and swap contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or over-the-counter markets and are freely transferable will be valued at the composite price, using the

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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 asked price across the exchanges where the option is traded. If a composite option price is not available, then a quote provided by one of the authorized pricing vendors will be used. If neither a composite price nor a quote from an authorized pricing provider is available, and it is the day of expiration or post-expiration, expiring options will be priced at intrinsic value. Non-exchange-traded options for which over-the-counter quotations are not readily available are valued at the mean between the last bid and asked quotations. Debt obligations (including convertible securities) that are either investment grade or below investment grade and irrespective of days to maturity are valued at evaluated mean by one of the authorized third party pricing agents which rely on various valuation methodologies such as matrix pricing and other analytical pricing models as well as market transactions and dealer quotations. Certain instruments, such as repurchase agreements and demand notes, do not have values from third parties and are valued at amortized cost. Investments in registered open-end investment companies (including money market funds), other than exchange-traded funds, are valued at their reported net asset value (“NAV”).

Other assets and securities for which no quotations are readily available (including restricted securities) will be valued in good faith at fair value using methods determined by the Board of Trustees of the Master Portfolios. In determining the fair value of a security, the Board of Trustees shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Adviser or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Adviser; (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

traded on other foreign markets. At June 30, 2019, 0.00% and 0.00% of the net assets of The Internet Portfolio and The Paradigm Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at June 30, 2019.

Bitcoin

The Master Portfolios may invest in Grayscale Bitcoin Trust, a Delaware statutory trust (“Bitcoin Trust”) that invests in bitcoins. From time to time, the Bitcoin Trust issues creation units in exchange for bitcoins and distributes bitcoins in exchange for redemption units. The performance of the Bitcoin Trust is intended to reflect changes in the value of the Trust’s bitcoin investments. At June 30, 2019, 23.4%, 16.0%, 3.6%, 1.5%, and 10.1% of the net assets of The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Small Cap Opportunities Portfolio and The Market Opportunities Portfolio, respectively, were invested in the Bitcoin Trust. Investments in bitcoins produce non qualifying income under Subchapter M of the Internal Revenue Code.

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Bitcoin Trust may trade at a premium or discount to the net asset value of the Bitcoin Trust. The price of bitcoins is set in transfers by mutual agreement or barter as well as the number of merchants that accept bitcoins. Because bitcoins are digital files that can be transferred without the involvement of intermediaries or third parties, there are little or no transaction costs in direct end-user-to-end-user transactions. Bitcoins can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. dollar, at rates determined by the Bitcoin Exchanges. Additionally, third party service providers such as Bitcoin Exchanges are also used for transfers but they may charge significant fees for processing transactions.

As bitcoins have grown in popularity, the U.S. Congress and a number of federal and state agencies (including the Financial Crimes Enforcement Network (FinCEN), the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the Financial Industry Regulatory Authority, the Consumer Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, and state financial institution regulators) have begun to examine the operations of the network that facilitates bitcoins, bitcoin users and the Bitcoin Exchanges, with particular focus on (1) the extent to which bitcoins can be used to launder the proceeds of illegal activities or fund criminal or terrorist enterprises, (2) the safety and soundness of the Bitcoin Exchange or other service-providers that hold bitcoins for users and (3) other risks to investors and consumers who hold and use bitcoins. Ongoing and future regulatory actions may alter, perhaps to a materially adverse extent, the value of a Master Portfolio’s and its Subsidiary’s investment in the Bitcoin Trust or the ability of the Bitcoin Trust to continue to operate.

Consolidation of Subsidiaries

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

the Portfolio’s investment objectives and policies. By investing in its Subsidiaries, a Master Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The investments held by a Subsidiary are generally similar to those that are permitted to be held by the Master Portfolio and are subject to the same risks that apply to similar investments if held directly by the Master Portfolio. Each Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. However, each Master Portfolio wholly-owns and controls its Subsidiaries, making it unlikely that the Subsidiaries will take action contrary to the interests of the Master Portfolio. Each Subsidiary will be subject to the same investment restrictions and limitations and follow the same compliance policies and procedures as its Master Portfolio.

The Cayman Subsidiary is an exempted Cayman investment company and is not subject to Cayman Islands taxes at the present time. For U.S. income tax purposes, each Cayman Subsidiary is a CFC not subject to U.S. income taxes. As a wholly-owned CFC, however, each Cayman Subsidiary’s net income and capital gain will be included each year in the respective Portfolio’s investment company taxable income.

As of June 30, 2019, the respective Cayman Subsidiary’s market value and percent of the respective Portfolio’s net assets were:


Internet Portfolio	$	12,342,321	8.89	%
Global Portfolio	$	671,714	4.53	%
Paradigm Portfolio	$	36,779,288	4.42	%
Small Cap Opportunities Portfolio	$	8,469,788	2.70	%
Market Opportunities Portfolio	$	2,803,101	3.12	%

The Delaware Subsidiary is organized under Delaware law. Any net gains that the Delaware Subsidiary recognizes on future sales of the contributed Bitcoin Trust shares will be subject to federal and state corporate income tax, but the dividends that the Delaware Subsidiary pays to its respective Master Portfolio (i.e., those gains, net of the tax paid and any other expenses of the Delaware Subsidiary) will be eligible to be treated as “qualified dividend income” under the Internal Revenue Code.

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

As of June 30, 2019, the respective Delaware Subsidiary’s net assets and percent of the respective Portfolio’s net assets were:


Internet Portfolio	$	1,278	0.00	%
Global Portfolio	$	1,068	0.01	%
Market Opportunities Portfolio	$	1,712	0.00	%

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.

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 unencumbered, liquid securities. This collateral is required to be adjusted daily to reflect the exercise price of the purchase obligation for

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

put options or the market value of the instrument underlying the contract for call options.

Foreign Currency Translations

The books and records of the Master Portfolios are maintained in U.S. dollars. For the Master Portfolios, foreign currency transactions are translated into U.S. dollars on the following basis: (i) market values of investment securities and other assets and liabilities are translated at the exchange rate of such currencies against the U.S. dollar, as provided by an approved pricing service, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. The Master Portfolios do not isolate and treat as ordinary income that portion of the results of operations arising as a result of changes in the exchange rate from the fluctuations arising from changes in the market prices of securities held during the period. 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. The 144A securities have been deemed to be liquid by the Master Portfolios Adviser under the supervision of the Board of Trustees. At June 30, 2019, the following Master Portfolios held securities restricted to institutional investors (144A Securities):


		Percentage of
	Market Value	Net Assets
The Multi-Disciplinary Income Portfolio	$9,062,233	24.79%

An illiquid asset is any asset which may not be sold or disposed of in current market conditions within seven days without the sale or disposition

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significantly changing the market value of the investment. At June 30, 2019, the following Master Portfolios held illiquid securities:


				Percentage of
	Market Value			Net Assets
The Internet Portfolio	$	—	*		0.00	%
The Paradigm Portfolio		—	*		0.00	%
The Multi-Disciplinary Income Portfolio		160,760			0.44	%

* Amount is less than $0.50.

When-Issued Securities

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

Significant Investments

The Portfolios may invest a greater percentage of their assets in one or more individual securities at any time. The greater percentage of assets in individual securities (not including short-term investments or other funds) expose the Portfolios to the risk of unanticipated industry conditions, the risks particular to a single company or security, and the risk of potentially lower liquidity. At

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

June 30, 2019, The Internet Portfolio, The Global Portfolio, The Paradigm Portfolio, The Medical Portfolio, The Small Cap Opportunities Portfolio, The Market Opportunities Portfolio and The Multi-Disciplinary Income Portfolio invested approximately 41%, 36%, 46%, 67%, 37%, 42% and 58% of their respective net assets in individual securities greater than 5% of net assets. Please see the respective Schedule of Investments for further details.

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.

Expense Allocation

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

Federal Income Taxes

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

There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. As of June 30, 2019, open tax years include the tax years ended December 31, 2015 through December 31, 2018. The Master Portfolios are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next six months.

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

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 accretion of discounts on the effective 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 incorporated in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.

3. Investment Adviser

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

For the six-month period ended June 30, 2019, Master Portfolios incurred the following expenses pursuant to the Agreements:


	Investment Advisory Fees
The Internet Portfolio	$	741,184
The Global Portfolio		76,449
The Paradigm Portfolio		4,896,977
The Medical Portfolio		104,158
The Small Cap Opportunities Portfolio		1,900,837
The Market Opportunities Portfolio		510,411
The Alternative Income Portfolio		85,647
The Multi-Disciplinary Income Portfolio		233,768

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

For the six-month period ended June 30, 2019, the Trust was allocated approximately $13,000 for the services of the Chief Compliance Officer employed by the Adviser.

4. Approval of Investment Advisory Contract by Trustees of Kinetics Portfolios Trust (Unaudited)

At a meeting of the Board of Trustees of the Trust held on March 15, 2019, the Board, including a majority 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 approve the Advisory Agreements (the “Agreements”), the Board of Trustees, including a majority of the Independent Trustees, considered, among; (1) the nature, extent and quality of the services provided by the Adviser including, but not limited to, a review of the complexity of the services provided and 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 Funds over time, along with that of the Adviser as compared with industry competitors; (4) an evaluation of the fee structure, any fee waivers, and the Funds’ 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 Funds grows and whether fee levels reflect these economies of scale for the benefit of the Fund’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 Funds; (8) other compensation or possible benefits to the Adviser and its affiliates arising from their advisory and other relationships with the Funds, including, if applicable, any benefits derived or to be derived by the Adviser from its relationship with the Funds such as soft dollar arrangements by which brokers provide research to the Funds or the Adviser in return for allocating the Funds’ 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); (10) a comparison of the fees charged by the Adviser with fees charged by the Adviser to similar clients; and (11) the policies and procedures that are in place to address, among other things, informational and cyber-related security.

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(Continued) June 30, 2019 (Unaudited)

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 would be 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 approve the Agreements.

5. Securities Transactions

Purchases and sales of investment securities, other than short-term investments and short-term options, for the six-month period ended June 30, 2019, were as follows:


	Purchases				Sales
	U.S.				U.S.
	Government		Other		Government		Other
The Internet Portfolio	$	—	$	913,439	$	—	$	1,297,715
The Global Portfolio		—		186,373		—		44,665
The Paradigm Portfolio		—		1,565,824		—		28,125,282
The Medical Portfolio		—		968,335		—		1,619,181
The Small Cap Opportunities
Portfolio		—		10,153,135		—		3,536,882
The Market Opportunities
Portfolio		—		592,571		—		1,267,305
The Alternative Income Portfolio		—		—		—		—
The Multi-Disciplinary
Income Portfolio		—		3,902		—		3,914,304

As of December 31, 2018, 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	$	111,845,606		$	10,122,935		$	485,771,770		$	12,204,701
Unrealized Appreciation		5,961,464			1,794,922			246,828,639			6,492,815
Unrealized Depreciation		(10,442,344	)		(973,551	)		(69,641,788	)		(2,275,586	)
Net Unrealized Appreciation
(Depreciation)	$	(4,480,880	)	$	821,371		$	177,186,851		$	4,217,229

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)


										Multi-
	Small Cap			Market			Alternative			Disciplinary
	Opportunities			Opportunities			Income			Income
Tax Cost of Investments	$	205,050,760		$	61,972,397		$	18,920,465 $			39,845,695
Unrealized Appreciation		72,325,091			16,645,203			27,086			721,261
Unrealized Depreciation		(53,482,975	)		(5,458,999	)		(153,863	)		(3,455,438	)
Net Unrealized Appreciation
(Depreciation)	$	18,842,116		$	11,186,204		$	(126,777	)$		(2,734,177	)

6. Portfolio Securities Loaned

As of June 30, 2019, the Master Portfolios had loaned securities that were collateralized by cash. The majority of 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. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. As the securities loans are subject to termination by the Funds or the borrower at any time, the remaining maturities of the outstanding securities lending transactions are considered to be overnight and continuous. The value of the securities on loan and the value of the related collateral at June 30, 2019, were as follows:


	Securities		Collateral
The Internet Portfolio	$	7,102,950	$	6,714,974
The Global Portfolio		154,568		145,578
The Paradigm Portfolio		29,436,762		27,724,643
The Medical Portfolio		—		—
The Small Cap Opportunities Portfolio		4,600,322		4,332,755
The Market Opportunities Portfolio		1,317,974		1,241,317
The Alternative Income Portfolio		—		—
The Multi-Disciplinary Income Portfolio		1,929,000		1,995,000

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

7. Selected Financial Highlights

Financial highlights for the Master Portfolios were as follows:


	The Internet Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014
Total Return*		38.97	%⁽²⁾		(26.86	)%		57.90	%		3.09	%		(4.95	)%		0.28	%
Ratio of expenses
to average
net assets:		1.38	%⁽¹⁾		1.38	%		1.37	%		1.37	%		1.35	%		1.34	%
Ratio of net investment
income (loss)
to average
net assets:		(0.15	)%⁽¹⁾		(0.60	)%		1.27	%		(1.18	)%		(1.05	)%		(0.90	)%
Portfolio turnover
rate		1	%		15	%		44	%		2	%		1	%		1	%


	The Global Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)				2018			2017			2016			2015			2014
Total Return*		27.77	%⁽²⁾		(23.85	)%		49.37	%		14.13	%		(14.13	)%		(12.10	)%
Ratio of expenses
to average
net assets:		1.64	%⁽¹⁾		1.66	%		1.59	%		1.66	%		1.69	%		1.60	%
Ratio of net investment
income (loss)
to average
net assets:		0.08	%⁽¹⁾		(0.57	)%		1.88	%		(0.44	)%		(0.59	)%		(0.52	)%
Portfolio turnover rate		1	%		28	%		169	%		11	%		16	%		14	%


	The Paradigm Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)				2018			2017			2016			2015			2014
Total Return*		29.20	%⁽²⁾		(5.27	)%		28.69	%		20.72	%		(8.04	)%		(0.48	)%
Ratio of expenses
to average
net assets:		1.36	%⁽¹⁾		1.36	%		1.36	%		1.37	%		1.35	%		1.33	%
Ratio of net investment
loss to average
net assets:		(0.12	)%⁽¹⁾		(0.65	)%		(0.53	)%		(0.84	)%		(0.63	)%		(0.72	)%
Portfolio turnover rate		0	%		3	%		14	%		2	%		2	%		7	%

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)


	The Medical Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014
Total Return*		4.23	%⁽²⁾		1.59	%		10.67	%		(8.04	)%		6.58	%		16.42	%
Ratio of expenses
to average
net assets:		1.51	%⁽¹⁾		1.47	%		1.43	%		1.42	%		1.40	%		1.41	%
Ratio of net investment
income to average
net assets:		1.77	%⁽¹⁾		0.96	%		0.82	%		0.66	%		0.24	%		0.44	%
Portfolio turnover rate		6	%		0	%		0	%		0	%		12	%		3	%


	The Small Cap Opportunities Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)				2018			2017			2016			2015			2014
Total Return*		22.64	%⁽²⁾		0.56	%		26.50	%		24.67	%		(11.97	)%		(6.98	)%
Ratio of expenses
to average
net assets:		1.37	%⁽¹⁾		1.37	%		1.37	%		1.36	%		1.35	%		1.34	%
Ratio of net investment
income (loss)
to average
net assets:		0.19	%⁽¹⁾		(0.33	)%		(0.47	)%		(0.75	)%		(0.65	)%		(0.59	)%
Portfolio turnover rate		2	%		3	%		9	%		4	%		2	%		19	%


	The Market Opportunities Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)				2018			2017			2016			2015			2014
Total Return*		25.69	%⁽²⁾		(10.62	)%		47.53	%		20.68	%		(8.87	)%		(5.30	)%
Ratio of expenses
to average
net assets:		1.41	%⁽¹⁾		1.40	%		1.39	%		1.41	%		1.40	%		1.39	%
Ratio of net investment
income (loss)
to average
net assets:		0.34	%⁽¹⁾		(0.30	)%		1.05	%		(0.73	)%		(0.66	)%		(0.30	)%
Portfolio turnover rate		1	%		8	%		35	%		5	%		2	%		18	%

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)


	The Alternative Income Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)			2018			2017			2016			2015			2014
Total Return*		1.44	%⁽²⁾		0.77	%		2.20	%		3.85	%		2.73	%		1.23	%
Ratio of expenses
to average
net assets:		1.15	%⁽¹⁾		1.10	%		1.07	%		1.10	%		1.16	%		1.22	%
Ratio of net investment
income (loss)
to average
net assets:		1.20	%⁽¹⁾		0.79	%		(0.04	)%		(0.16	)%		(0.20	)%		(0.40	)%
Portfolio turnover rate		0	%		0	%		0	%		1	%		6	%		17	%


	The Multi-Disciplinary Income Portfolio
	For the			For the			For the			For the			For the			For the
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2019			December 31,			December 31,			December 31,			December 31,			December 31,
	(Unaudited)				2018			2017			2016			2015			2014
Total Return*		6.99	%⁽²⁾		(0.93	)%		4.84	%		10.52	%		(2.05	)%		2.58	%
Ratio of expenses
to average
net assets:		1.44	%⁽¹⁾		1.42	%		1.40	%		1.38	%		1.37	%		1.37	%
Ratio of net investment
income to average
net assets:		4.19	%⁽¹⁾		4.13	%		3.47	%		4.13	%		3.50	%		3.06	%
Portfolio turnover rate		0	%		2	%		16	%		9	%		10	%		35	%

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

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.

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

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 Internet Portfolio

The following is a summary of the inputs used to value The Internet Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3			Total
Common Stocks	$	102,387,683	$	1,248	$	—		$	102,388,931
Escrow Notes		—		—		—	*		—	*
Short-Term Investments		1,802		36,283,752		—			36,285,554
Investments Purchased with the Cash
Proceeds from Securities Lending		6,714,974		—		—			6,714,974
Total Investments in Securities	$	109,104,459	$	36,285,000	$	—	*	$	145,389,459

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

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


Description	Investments in Securities
Balance as of December 31, 2018	$	—	*
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		—	**
Net purchases and/or acquisitions		—
Net sales and/or write-offs		—
Transfer in and/or out of Level 3		—
Balance as of June 30, 2019	$	—	*


	Fair Value at	Valuation	Unobservable
Description	6/30/2019	Techniques	Input	Range
Escrow Notes	$—*	Conservative Value	No active	$0.00-$0.00
		Assigned Pending	market
		Bankruptcy Litigation
		Proceedings/Market
		Comparables

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

^	See Consolidated Portfolio of Investments for breakout of investments by industry classification.
*	Amount is less than $0.50.
**	Total change in unrealized appreciation/depreciation included in the statement of operations attributable to Level 3 securities held on June 30, 2019 is zero.

The Global Portfolio

The following is a summary of the inputs used to value The Global Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Common Stocks	$	7,623,766	$	558,441	$	—	$	8,182,207
Preferred Stocks		12,231		—		—		12,231
Convertible Bonds		—		1,438		—		1,438
Warrants		—		6,071		—		6,071
Short-Term Investments		493		5,966,243		—		5,966,736
Investments Purchased with the Cash
Proceeds from Securities Lending		145,578		—		—		145,578
Total Investments in Securities	$	7,782,068	$	6,532,193	$	—	$	14,314,261

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

As of June 30, 2019, there were no investments in Level 3 securities.

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Consolidated Portfolio of Investments for breakout of investments by industry classification.

The Paradigm Portfolio

The following is a summary of the inputs used to value The Paradigm Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3			Total
Common Stocks	$	717,806,074	$	4,214,588	$	—		$	722,020,662
Preferred Stocks		5,154		—		—			5,154
Escrow Notes		—		—		—	*		—	*
Warrants		—		2,566		—			2,566
Short-Term Investments		129,884		109,647,750		—			109,777,634
Investments Purchased with the Cash
Proceeds from Securities Lending		27,724,643		—		—			27,724,643
Total Investments in Securities	$	745,665,755	$	113,864,904	$	—	*	$	859,530,659

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

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, 2018	$	—	*
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		—	**
Net purchases and/or acquisitions		—
Net sales and/or write-offs		—
Transfer in and/or out of Level 3		—
Balance as of June 30, 2019	$	—	*

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)


	Fair Value at	Valuation	Unobservable
Description	6/30/2019	Techniques	Input	Range
Escrow Notes	$—*	Conservative Value	No active	$0.00-$0.00
		Assigned Pending	market
		Bankruptcy Litigation
		Proceedings/Market
		Comparables

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

^	See Consolidated Portfolio of Investments for breakout of investments by industry classification.
*	Amount is less than $0.50.
**	Total change in unrealized appreciation/depreciation included in the statement of operations attributable to Level 3 securities held on June 30, 2019 is zero.

The Medical Portfolio

The following is a summary of the inputs used to value The Medical Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Common Stocks	$	16,314,258	$	—	$	—	$	16,314,258
Rights		10,849		10,780		—		21,629
Short-Term Investments		6,911		35,938		—		42,849
Total Investments in Securities	$	16,332,018	$	46,718	$	—	$	16,378,736

As of June 30, 2019, there were no investments in Level 3 securities.

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Portfolio of Investments for breakout of investments by industry classification.

The Small Cap Opportunities Portfolio

The following is a summary of the inputs used to value The Small Cap Opportunities Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Common Stocks	$	196,197,020	$	21,850,349	$	—	$	218,047,369
Preferred Stocks		1,233,409		—		—		1,233,409
Warrants		—		612,577		—		612,577
Short-Term Investments		33		93,301,326		—		93,301,359
Investments Purchased with the Cash
Proceeds from Securities Lending		4,332,755		—		—		4,332,755
Total Investments in Securities	$	201,763,217	$	115,764,252	$	—	$	317,527,469

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

As of June 30, 2019, there were no investments in Level 3 securities.

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Consolidated Portfolio of Investments for breakout of investments by industry classification.

The Market Opportunities Portfolio

The following is a summary of the inputs used to value The Market Opportunities Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Common Stocks	$	50,770,394	$	2,924,235	$	—	$	53,694,629
Preferred Stocks		281,010		—		—		281,010
Convertible Bonds		—		200		—		200
Warrants		—		139,565		—		139,565
Short-Term Investments		1,150		35,119,710		—		35,120,860
Investments Purchased with the Cash
Proceeds from Securities Lending		1,241,317		—		—		1,241,317
Total Investments in Securities	$	52,293,871	$	38,183,710	$	—	$	90,477,581

As of June 30, 2019, there were no investments in Level 3 securities.

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Consolidated Portfolio of Investments for breakout of investments by industry classification.

The Alternative Income Portfolio

The following is a summary of the inputs used to value The Alternative Income Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	5,853,461	$	–	$	–	$	5,853,461
Short-Term Investments		2,348,988		10,250,609		–		12,599,597
Total Investments in Securities	$	8,202,449	$	10,250,609	$	–	$	18,453,058

As of June 30, 2019, there were no investments in Level 3 securities.

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Portfolio of Investments for breakout of investments by industry classification.

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

The Multi-Disciplinary Income Portfolio

The following is a summary of the inputs used to value The Multi-Disciplinary Income Portfolio’s net assets as of June 30, 2019:


Assets^	Level 1		Level 2		Level 3		Total
Convertible Bonds	$	–	$	630,480	$	–	$	630,480
Corporate Bonds		–		30,968,396		–		30,968,396
Municipal Bonds		–		160,760		–		160,760
Closed-End Funds		3,148,148		–		–		3,148,148
Short-Term Investments		5,809		1,315,731		–		1,321,540
Investments Purchased with the Cash
Proceeds from Securities Lending		1,995,000		–		–		1,995,000
Total Investments in Securities	$	5,148,957	$	33,075,367	$	–	$	38,224,324

As of June 30, 2019, there were no investments in Level 3 securities.

During the six-month period ended June 30, 2019, there were no transfers into or out of Level 3.

^ See Portfolio of Investments for breakout of investments by industry classification.

9. Disclosures about Derivative Instruments and Hedging Activities

The Master Portfolios have adopted authoritative standards regarding disclosure of 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. As of June 30, 2019, none of the Portfolios held any derivative instruments.

10. Offsetting Assets and Liabilities

The Master Portfolios are subject to various Master Netting Arrangements, which govern the terms of certain transactions with select counterparties. The Master Netting Arrangements allow a 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

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

Netting Arrangements also specify collateral posting arrangements at prearranged 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 specific threshold depending on the counterparty and the type of Master Netting Arrangement.

The following is a summary of the Assets and Liabilities subject to offsetting in the Master Portfolios as of June 30, 2019:


					Net
			Gross		Amounts		Gross Amounts not Offset
			Amounts		Presented		in the Statement of
	Gross		Offset in the		in the		Assets & Liabilities
	Amounts of		Statement		Statement				Collateral
	Recognized		of Assets &		of Assets &		Financial		Pledged		Net
	Liabilities		Liabilities		Liabilities		Instruments		(Received)		Amount
The Internet Portfolio
Securities Lending	$	6,714,974	$	—	$	6,714,974	$	6,714,974	$	—	$	—
	$	6,714,974	$	—	$	6,714,974	$	6,714,974	$	—	$	—

The Global Portfolio
Securities Lending	$	145,578	$	—	$	145,578	$	145,578	$	—	$	—
	$	145,578	$	—	$	145,578	$	145,578	$	—	$	—

The Paradigm Portfolio
Securities Lending	$	27,724,643	$	—	$	27,724,643	$	27,724,643	$	—	$	—
	$	27,724,643	$	—	$	27,724,643	$	27,724,643	$	—	$	—

The Small Cap
Opportunities Portfolio
Securities Lending	$	4,332,755	$	—	$	4,332,755	$	4,332,755	$	—	$	—
	$	4,332,755	$	—	$	4,332,755	$	4,332,755	$	—	$	—

The Market
Opportunities Portfolio
Securities Lending	$	1,241,317	$	—	$	1,241,317	$	1,241,317	$	—	$	—
	$	1,241,317	$	—	$	1,241,317	$	1,241,317	$	—	$	—

The Multi-Disciplinary
Income Portfolio
Securities Lending	$	1,995,000	$	—	$	1,995,000	$	1,995,000	$	—	$	—
	$	1,995,000	$	—	$	1,995,000	$	1,995,000	$	—	$	—

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

11. Affiliated Issuers

Under section 2(a)(3) of the 1940 Act, an investment company is defined as being an affiliated person of a company if it owns five percent or more of a company’s outstanding voting stock.

Investments in affiliated companies for The Paradigm Portfolio as of June 30, 2019, are shown below:


	Fair value at			Net	Change in	Fair value at
Name	December 31,		Sales	Realized	Unrealized	June 30,	Dividend
of Issuer	2018	Purchases	Proceeds	Gain	Appreciation	2019	Income
Texas Pacific
Land Trust	$229,200,484	$—	$8,626,689	$6,373,889	$96,664,965	$323,612,649	$2,494,818


	Number of			Number of
	shares held at			shares held at
	December 31,			June 30,
Name of Issuer	2018	Purchases	Sales	2019
Texas Pacific Land Trust	423,168	—	(11,965)	411,203

12. Subsequent Events

In preparing these financial statements, management has evaluated Portfolio related events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or translations that occurred during the period that materially impacted the amounts or disclosures in the Master Portfolios’ financial statements.

13. Recent Accounting Pronouncements

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Notes to Consolidated Financial Statements —

(Continued) June 30, 2019 (Unaudited)

14. Information about Proxy Voting

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

15. Information about the Portfolio Holdings

The Master Portfolios file their complete schedule of portfolio holdings for their first and third fiscal quarters with the SEC on Part F of Form N-PORT. The Master Portfolios’ Part F of Form N-PORT is available without charge, upon request, by calling toll-free at 1-800-930-3828. Furthermore, you can obtain the Part F of Form N-PORT on the SEC’s website at www.sec.gov.

175

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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 13. 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 9/9/19

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 9/9/19

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

Date 9/9/19

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