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)

1-646-495-7333

Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2022

Date of reporting period: June 30, 2022

Item 1. Reports to Stockholders.

KINETICS MUTUAL FUNDS, INC.
Table of Contents
June 30, 2022 (Unaudited)

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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, 2022. Equities fell significantly in the first half of 2022, as rising inflation and interest rates, geopolitical unrest, and growing recession fears weighed on investor sentiment. The investment industry and public now accept that there is inflation – what was dismissed as unlikely by many a year ago is now clearly visible to all in statistics such as the Consumer Price Index (“CPI”), as well as in the bread-and-butter price levels of housing, food, and fuel, and in the authoritative realm of Federal Reserve interest rate policy statements.

For some, the current market backdrop prompts a look back at the inflationary 1970s, the most recent reference point for a prolonged inflationary period in the U.S. Unfortunately, we believe that the damaging 1970s and the subsequent recovery period is a misleading reference point.

One essential difference between the 1970s and today is as follows:

• By the end of that period, in 1979, the federal debt/Gross Domestic Product (“GDP”) level was only about 31% and had declined during the decade. Today, the ratio is about 130%, already beyond all historical experience, and is probably still rising.

• In 1980, total public and private U.S. debt was 178% of GDP and cost an average of 13.6%. Within 11 months, interest rates began a 40-year decline, so that risk was about to peak.

Today, total U.S. debt is 489% of GDP, at an average interest rate of only 3.72%, while the average rate on the Federal debt is only about 1.43%. Just this year, though, the 5-Year Treasury rose to 3%, from an average of 1.6% over the past five years, and 1-year Treasuries also rose to 3%, from less than 0.1% a year ago. The relevance of those increases is that, crudely estimated, somewhere between 20% to 35% of the marketable Federal debt will come due within the next year, and a similar proportion within 1 – 5 years. That’s well over half of the Federal debt to be replaced at higher rates in the near to intermediate future. We believe that this dynamic, in addition to the U.S. Dollar’s strength, will surely limit the ability of the Federal Reserve to solely target inflation with its policies – and will likely result in a higher requisite level of long-run inflation, as compared to the previous several decades.

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Our view is that this will result in a structurally different economy, in terms of supply chains, profit margins, wage growth, and debt growth, among other factors. We believe that the Funds are positioned for such a future, which includes many investment opportunities, but which remains well outside of the consensus view.

A performance summary for the half year ended June 30, 2022 follows (No-Load Class):

The Internet Fund -28.64%; The Global Fund -13.50%; The Paradigm Fund -2.51%; The Medical Fund -0.97%; The Small Cap Opportunities Fund 1.64%; The Market Opportunities Fund -8.19%; The Alternative Income Fund -3.98%; The Multi-Disciplinary Income Fund -2.63%; and the Kinetics Spin-off and Corporate Restructuring Fund 2.34%. This compares to returns of: -19.96% for the S&P 500^® Index; -18.94% for the S&P 600^® Small Cap Index; -20.18% for the MSCI All Country World (ACWI) Index; -10.35% for the Bloomberg U.S. Aggregate Bond Index: -14.19% for the Bloomberg U.S. Corporate High Yield Index; -3.35% for the Bloomberg U.S. 1-3 Year Credit Index^®; -29.23% for the Nasdaq Composite^®; and -19.57% for the MSCI EAFE^® Index.

While we continue to provide equity and fixed income reference benchmark performance (to aid in understanding how the broad asset classes have performed throughout the first half of 2022), 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 discordant with their original objectives.

Equity markets are currently struggling to discount a future of higher interest rates and lower earnings growth. It is not hard to mathematically calculate the impact of higher interest rates, but earnings revisions are much harder to digest. Earnings routinely fall during recessions, but similarly rebound, and in some cases return to their pre-recession growth trend. While it is assured that earnings growth will be lower than current estimates due to a confluence of factors, the greater uncertainty pertains to the long-term (i.e., >3 years out) earnings growth. We would argue that it will be much lower than is currently priced in for much of the market; hence, equities in general have more potential downside.

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However, the converse of the broader market, which is likely discounting earnings which are too high, for too long, is the subset of hard asset companies, which the market is pricing for immediate and permanent impairments in profitability. It is not uncommon for high quality fertilizer, energy, industrial metals, and other raw materials companies to trade for less than 5x free cash flow for this year. This equates to a 20% free cash flow yield, which, even if reduced by 50% next year, would be 10%. There are very few companies in the market today that can reduce cash flow by 50% and still trade at a double-digit yield.

It is clear to us that the short-term orientation of the financial markets is resulting in anomalous pricing in various hard asset companies. Investors are mistaking cyclical inflation related to supply chains and latent consumption with secular inflation related to insufficient supply in markets with highly inelastic demand. The former categories will almost assuredly be negatively impacted by slowing economic growth and tighter financial conditions; whereas the latter are likely to be marginally impacted by these factors and will take decades to rebalance supply.

Investors remain largely under-invested in sectors with hard asset companies, which can benefit from this backdrop of structural inflation. We believe that investors’ focus will eventually shift towards companies that can i.) grow revenues on a real basis and ii.) manage costs associated with real revenue growth. We believe that the companies which can achieve these milestones will be rewarded with higher multiples, while those which cannot will be penalized with lower multiples.

The future remains uncertain, but based on a range of realistic outcomes, we believe that the odds certainly favor a new economic paradigm going forward –one which favors incumbent assets and hard asset companies.

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KINETICS MUTUAL FUNDS, INC.

Investment Commentary

Financial markets thrive on predictability, as greater certainty about the future permits greater risk tolerance, which promotes economic growth, ergo, growth in wealth. The past decade, if not decades, of modern central economic planning have sought to reduce economic uncertainty, largely by intervening in free markets, by providing liquidity support through monetary (interest rate) and fiscal (spending) measures. The requisite magnitude of financial support to stimulate the economy has grown more than nominal economic growth and financial leverage within the system, creating reliance on a rapidly increasing amount of stimulus. This cycle of ever greater financial stimulus may have recently culminated (temporarily), after U.S. money supply grew approximately 45% between January of 2020 and April 2022. This translates into approximately 31% of the total U.S. Dollars in existence having been “created” within the past 26 months. It should come as no surprise that an unintended consequence of decades of policy aimed at supporting asset and economic growth is inflation. “Inflation” first came in the form of financial asset inflation (i.e., stocks, bonds, and private assets), followed by consumer and producer goods (e.g., CPI, Producer Price Index (PPI)), and now, seemingly, everything.

The U.S. Federal Reserve is no longer denying that inflation is extremely unlikely to abate on its own, and it has begun raising interest rates aggressively in order to combat rising price levels. Tighter money can only combat inflation by reducing demand, as interest costs consume more of businesses’, individuals’, and governments’ cash flows. Contractions in demand are often associated with economic contractions, i.e., recessions. Fear of economic/demand contraction is driving irrational price action in financial markets, as investors underestimate structural trends and rely on heuristic analysis of past cycles. It may shock many people to learn that commodity prices and broader consumer prices can, in fact, rise during a recession. To quote Zolten Pozsar of Credit Suisse: “You can print money, but not oil to heat or wheat to eat.” This quote summarizes the dilemma that central banks face, as decades of underinvestment in indispensable raw materials are coinciding with growing demand, specifically, from emerging (non-OECD) markets. Further, there is a growing risk that aggressive central bank policy aimed at reducing inflation via curbing demand will achieve its goal in reducing growth, but without impacting structural inflation, thus, resulting in stagflation.

We believe that this leaves the global economy in a very uncertain position, where restrictive bank policies are in direct conflict with slowing global growth.

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We do not have any unique insight into what will catalyze this dynamic to shift, or how or when it might occur, but we do believe we have an informed opinion about what the ultimate economic and investment implications are. In short, the current paradigm of investing, which has reigned for decades, is shifting – and at warp speed due to the policy mismatch. This change will be uncomfortable, and many individuals and institutions will surely reduce their exposures due to the uncertainty, which will pressure asset prices. However, this short-term orientation fails to recognize the difference between cyclical and structural inflation, hence, missing investment opportunities in secular inflation beneficiaries.

The past 40 years can be characterized as an era of abundance, driven primarily by globalization, technological innovation, and declining interest rates. Our view is that these supporting trends simply cannot be sustained, and most are either stalling or are outright reversing. We believe that this will result in a markedly different investment environment for the next decade as compared to the past yet, most investment “models” rely on historical performance and correlations based on 10, 20 or 30 years of data, which is no longer a valid analog. Specifically, we believe that the changes in these trends, in conjunction with under-investment in raw materials, will result in a new era not of abundance, but of scarcity. In short, the new era will place a primacy on existing high quality, hard assets – which stands in stark contrast to the prevailing primacy on intangibles and cheap investment capital.

The equity-oriented funds (Paradigm, Small Cap, Market Opportunities, Internet, Global, and Spin-off) all benefitted substantially from high exposure to “hard asset” oriented businesses. These companies possess unique asset bases which are high quality, finite supply, and/or are low on the supply pricing curve. We believe that the asset bases enable these companies to benefit from inflationary forces in the economy for many years to come, yet, in capital efficient business models. In particular, Texas Pacific Land Corp. (“TPL”) has been a standout in terms of performance, rising approximately 21% year-to-date (including dividends). The gain was likely in response to benchmark oil and gas prices rising approximately 41% and 51%, respectively. Royalty companies such as TPL benefit from higher absolute energy price levels, yet, without any related expenses. The funds also benefitted from exposure to specific companies in the defense technology and specialty lodging industries.

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Exposure to various hard asset industries, such as precious metals and land, detracted from performance, albeit, still outpacing broader markets. The funds had various degrees of negative attribution from a cryptocurrency pooled investment fund. The underlying investment exposure to Bitcoin through the Grayscale Bitcoin Investment Trust (GBT) declined sharply through the first half of the year, GBT’s discount to NAV widened from approximately 22% at year-end to 31% at the end of June. The SEC rejected the GBT’s most recent ETF conversion application earlier this year; however, we believe that the conversion is an eventuality which will remedy the discount.

The income-oriented funds (The Multi-Disciplinary Income Fund and The Alternative Income Fund) have benefitted from shorter duration fixed income exposure, although both funds generated modest losses for the first half of the year. Virtually all fixed income assets have declined in value this year due to the rapid and largely unexpected pace of rising interest rates. The 10-Year U.S. Treasury yield nearly doubled through the first six months of the year, which translated into almost a 6% year-to-date decline for the Bloomberg U.S. Aggregate Bond Index.

Financial markets are digesting high inflation and rapidly rising interest rates for the first time in nearly 40 years, which makes the future particularly uncertain. We believe that there are strong long-term investment “trends” from which we can benefit, yet the economic and financial market uncertainty is resulting in highly discounted valuations for many of these companies.

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Disclosure

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

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

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

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

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

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

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

As non-diversified Funds, except The Global Fund, 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 (ACWI) 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 Bond 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, 2022 — Horizon Kinetics Asset Management, LLC^®

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example

June 30, 2022 (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, 2022 and held for the entire period from January 1, 2022 to June 30, 2022.

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 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.

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2022 (Unaudited)

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.

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2022 (Unaudited)

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2022 (Unaudited)

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2022 (Unaudited)

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2022 (Unaudited)

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KINETICS MUTUAL FUNDS, INC. — THE FUNDS

Expense Example — (Continued)

June 30, 2022 (Unaudited)

Note: Each Feeder Fund records its proportionate share of the respective Master Portfolio's expenses on a daily basis. Any expense reductions include Feeder Fund-specific expenses as well as the expenses allocated for the Master Portfolio.

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KINETICS MUTUAL FUNDS, INC. — THE FUND

Allocation of Portfolio Assets

June 30, 2022 (Unaudited)

The Kinetics Spin-off and Corporate Restructuring Fund

* Excludes Short-Term Investments

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KINETICS MUTUAL FUNDS, INC. — THE FUND

The Kinetics Spin-off and Corporate Restructuring Fund

Schedule of Investments — June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FUND

The Kinetics Spin-off and Corporate Restructuring Fund

Schedule of Investments — June 30, 2022 (Unaudited) — (Continued)

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

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KINETICS MUTUAL FUNDS, INC. — THE FUND

The Kinetics Spin-off and Corporate Restructuring Fund

Schedule of Investments — June 30, 2022 (Unaudited) — (Continued)

Percentages are stated as a percent of net assets.

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities

June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities — (Continued)

June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities — (Continued)

June 30, 2022 (Unaudited)

* 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.

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Assets & Liabilities — (Continued)

June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FUND

Statements of Assets & Liabilities — (Continued)

June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations

For the Six Months Ended June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FUND

Statements of Operations — (Continued)

For the Six Months Ended June 30, 2022 (Unaudited)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

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

32

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

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

33

KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)

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

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KINETICS MUTUAL FUNDS, INC. — THE FEEDER FUNDS

Statements of Changes in Net Assets — (Continued)