NPORT-EX 2 internet.htm

KINETICS PORTFOLIOS TRUST - MASTER INVESTMENT PORTFOLIOS
            
The Internet Portfolio
            
Consolidated Portfolio of Investments - March 31, 2022 (Unaudited)
        
               
               
COMMON STOCKS - 45.33%
  
Shares
    
Value
  
Administrative and Support Services - 0.07%
            
CreditRiskMonitor.com, Inc.*f
    
780
      
1,997
  
Expedia Group, Inc.*
    
648
      
126,794
  
               
128,791
  
Aerospace and Defense - 7.11%
                
CACI International, Inc. - Class A*c
    
40,000
      
12,050,400
  
ManTech International Corporation - Class A
    
25,000
      
2,154,750
  
               
14,205,150
  
Broadcasting (except Internet) - 0.42%
                
The E.W. Scripps Company - Class A*
    
40,000
      
831,600
  
                   
Cable and Other Subscription Programming - 0.00%
                
AMC Networks, Inc.*
    
200
      
8,126
  
                   
Credit Intermediation and Related Activities - 0.60%
                
LendingTree, Inc.*
    
10,000
      
1,196,700
  
                   
Data Processing, Hosting and Related Services - 1.43%
                
Core Scientific, Inc.*^
    
346,000
      
2,847,580
  
                   
Data Processing, Hosting, and Related Services - 4.51%
                
MasterCard, Inc. - Class A
    
7,000
      
2,501,660
  
PayPal Holdings, Inc.*
    
3,000
      
346,950
  
Verisk Analytics, Inc.
    
7,000
      
1,502,410
  
Visa, Inc. - Class A
    
21,000
      
4,657,170
  
               
9,008,190
  
E-Commerce - 2.18%
                
eBay, Inc.
    
76,200
      
4,363,212
  
                   
Funds, Trusts, and Other Financial Vehicles - 0.09%
                
Mesabi Trust^
    
6,900
      
183,816
  
                   
Management of Companies and Enterprises - 1.09%
                
Galaxy Digital Holdings Ltd.*
    
128,000
      
2,180,858
  
                   
Oil and Gas Extraction - 14.23%
                
Texas Pacific Land Corp. c
    
21,026
      
28,429,465
  
                   
Other Information Services - 4.46%
                
Alphabet, Inc. - Class A*
    
1,600
      
4,450,160
  
Alphabet, Inc. - Class C*
    
1,600
      
4,468,784
  
               
8,918,944
  
Other Motor Vehicle Dealers - 0.01%
                
Copart, Inc.*
    
100
      
12,547
  
                   
Other Professional, Scientific, and Technical Services - 0.32%
                
GMO Internet, Inc.
    
28,000
      
644,455
  
                   
Other Telecommunications - 0.08%
                
Liberty Latin America Limited - Class C - ADR*
    
16,496
      
158,197
  
                   
Performing Arts, Spectator Sports, and Related Industries - 0.18%
                
Madison Square Garden Entertainment Corp.*
    
4,376
      
364,565
  
                   
Personal and Laundry Services - 0.35%
                
IAC/InterActiveCorp*
    
7,000
      
701,960
  
                   
Professional, Scientific, and Technical Services - 0.25%
                
Cookpad, Inc.*
    
160,000
      
387,711
  
Vimeo, Inc.*
    
10,000
      
118,800
  
               
506,511
  
Promoters of Performing Arts, Sports, and Similar Events - 0.36%
                
Madison Square Garden Sports Corp. - Class A*
    
4,000
      
717,440
  
                   
Satellite Telecommunications - 0.04%
                
DISH Network Corp. - Class A*
    
2,300
      
72,795
  
                   
Securities and Commodities Exchanges - 1.62%
                
CME Group, Inc.
    
4,180
      
994,255
  
Miami International Holdings, Inc.* ag
    
268,000
      
2,119,880
  
NASDAQ, Inc.
    
700
      
124,740
  
               
3,238,875
  
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 5.08%
                
Bakkt Holdings, Inc.*^
    
6,000
      
36,960
  
CF Acquisition Corp VI*^
    
21,000
      
249,270
  
Marathon Digital Holdings, Inc.*^
    
8,000
      
223,600
  
MarketAxess Holdings,  Inc.
    
5,550
      
1,888,110
  
OTC Markets Group, Inc. - Class A^
    
121,000
      
7,502,000
  
Riot Blockchain, Inc.*^
    
10,000
      
211,700
  
S&P Global, Inc.
    
114
      
46,564
  
               
10,158,204
  
Spectator Sports - 0.85%
                
Liberty Media Corp.-Liberty Braves - Class A*
    
8,000
      
230,240
  
Liberty Media Corp.-Liberty Braves - Class C*
    
8,000
      
223,280
  
Liberty Media Corp.-Liberty Formula One - Class A*
    
19,800
      
1,249,974
  
               
1,703,494
  
TOTAL COMMON STOCKS
                
(cost $61,037,773)
            
90,581,475
  
                   
  UNIT INVESTMENT TRUST - 32.81%
                
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 32.81%
                
Grayscale Bitcoin Trust*c
    
2,146,599
      
65,557,133
  
                   
TOTAL UNIT INVESTMENT TRUST
                
(cost $6,561,450)
            
65,557,133
  
                   
WARRANTS - 0.04%
  
Shares
          
Securities and Commodities Exchanges - 0.04%
                
Miami International Holdings, Inc. Expiration: 04/08/2026, Exercise Price: 7.50 USD *ag
    
40,819
      
84,495
  
                   
TOTAL WARRANTS
                
(cost $–)
            
84,495
  
                   
TOTAL INVESTMENTS - 78.18%
                
(cost $67,599,223)
          
$
156,223,103
  
                   
Percentages are stated as a percent of net assets.
                

^ 
- This security or a portion of this security was out on loan at March 31, 2021.  Total loaned securities had a market value of $941,489 at March 31, 2021. The total collateral for the loaned securities was cash in the amount of $992,643.
  
* 
- Non-income producing security.
                
a 
- Value determined using significant unobservable inputs.
                
c 
- Significant Investment - Greater than 5% of net assets.
                
f 
- Level 2 Investment.
                
g 
- Illiquid.
                
ADR 
- American Depository Receipt.
                


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, 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 the Board of Directors of the Spin- off Fund. In determining the fair value of a security, the Board of Trustees/Directors shall take into account the relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security; (ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to determine the fair value of the security; (iv) the recommendation of the portfolio manager of the Portfolios with respect to the valuation of the security; (v) whether the same or similar securities are held by other funds managed by the Adviser or other funds and the method used to price the security in those funds; (vi) the extent to which the fair value to be determined for the security will result from the use of data or formula produced by third parties independent of the Adviser; (vii) the liquidity or illiquidity of the market for the security; and (viii) the value of a foreign security traded on other foreign markets. At March 31, 2022, 0.28%, 1.10%, 0.58%, 0.00%, and 0.05% of the net assets of The Global Portfolio, The Internet Portfolio, The Market Opportunities Portfolio, The Medical Portfolio, and The Paradigm Portfolio, respectively, were fair valued securities. The other Master Portfolios did not hold any fair valued securities at March 31, 2022.
                   
Summary of Fair Value Exposure
                
                   
Various inputs are used in determining the value of Master Portfolio’s and 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 Master Portfolio’s and 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 Master Portfolio’s and 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.
                   
The Internet Portfolio
                
                   
The following is a summary of the inputs used to value The Internet Portfolio's net assets as of March 31, 2022:
    

Assets^
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
  
$
88,459,598
    
$
1,997
    
$
2,119,880
    
$
90,581,475
  
Unit Investment Trust
    
65,557,133
      
–
      
–
      
65,557,133
  
Warrants
    
–
      
–
      
84,495
      
84,495
  
Total Investments in Securities
  
$
154,016,731
    
$
1,997
    
$
2,204,375
    
$
156,223,103
  
 
                                
During the nine-month period ended March 31, 2022, 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, 2021
  
$
2,005,453
                          
Accrued discounts/premiums
    
-
                          
Realized gain (loss)
    
-
                          
Change in unrealized appreciation (depreciation)
    
198,922
                          
Net purchases and/or acquisitions
                                
Net sales and/or write-offs
    
-
                          
Transfer in and/or out of Level 3
    
-
                          
Balance as of March 31, 2022
  
$
2,204,375
                          

 
Description
  
Fair Value at
3/31/2022
    
Valuation
Techniques
    
Unobservable
Input
    
Range
  
 
Common Stocks
  
$
2,119,880
    
Followed valuation procedures and used the last traded price-fair valuation is reviewed by the board using market comparables
    
Precedent Transaction
    

$7.25 - $8.44
  
 
Warrants
  
$
84,495
    
Black Scholes Method
    
Volatility
      
25%

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