NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (Unaudited)
The accompanying notes are an integral part of this financial statement.
The Kinetics Portfolios Trust (the "Trust") was organized as a Delaware Business 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 objectives and policies. The series currently authorized are The Internet
Portfolio, The Internet Emerging Growth Portfolio, The Internet Infrastructure Portfolio, The Internet Global
Growth Portfolio, The Internet New Paradigm Portfolio, The Medical Portfolio, The Middle East Growth
Portfolio, The Small Cap Opportunities Portfolio, and The Kinetics Government Money Market Portfolio (the
"Master Portfolios"). Pursuant to the 1940 Act, the Master Portfolios are "non-diversified" series of the Trust.
Each of the 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 funds invested in the Master Portfolio. By contributing assets to the Master Portfolio, the 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 funds based on the fund's
proportionate interest in the Master Portfolio.
Each of the Master Portfolios, with the exception of The Kinetics Government Money Market Portfolio, seeks to
provide investors with long-term capital growth. The Internet Portfolio invests in equity securities engaged in a
broad range of Internet-related activities. The Internet Emerging Growth Portfolio invests in equity securities of
small and medium capitalization companies engaged in business of the Internet and Internet-related activities. The