NPORT-EX 2 paradigm.htm

KINETICS PORTFOLIOS TRUST - MASTER INVESTMENT PORTFOLIOS
              
The Paradigm Portfolio
              
Consolidated Portfolio of Investments - September 30, 2022 (Unaudited)
              
               
             
COMMON STOCKS - 87.99%
  
Shares
    
Value
  
Accommodation - 0.76%
            
Civeo Corp. - ADR*
    
273,200
      
6,865,516
  
                 
Administrative and Support Services - 0.08%
                
Expedia Group, Inc.*
    
8,000
      
749,520
  
                 
Aerospace and Defense - 1.34%
                
CACI International, Inc. - Class A*
    
46,150
      
12,047,919
  
                 
Beverage and Tobacco Product Manufacturing - 0.04%
                
Crimson Wine Group Limited*
    
52,762
      
335,039
  
                 
Broadcasting (except Internet) - 0.23%
                
Warner Bros. Discovery, Inc.*
    
178,800
      
2,056,200
  
                 
Casinos & Gaming - 0.08%
                
Las Vegas Sands Corp.*
    
18,800
      
705,376
  
                 
Data Processing, Hosting, and Related Services - 0.00%
                
Rumble Inc.*^
    
800
      
9,800
  
                 
Diversified Real Estate Activities - 0.09%
                
PrairieSky Royalty Limited*
    
60,000
      
773,591
  
                 
E-Commerce - 0.04%
                
eBay, Inc.
    
10,000
      
368,100
  
                 
Food Services and Drinking Places - 0.87%
                
The Wendy’s Company
    
419,500
      
7,840,455
  
                 
Funds, Trusts, and Other Financial Vehicles - 0.06%
                
Mesabi Trust^
    
23,620
      
508,066
  
                 
Insurance Carriers and Related Activities - 0.01%
                
Markel Corporation*
    
100
      
108,422
  
                 
Management of Companies and Enterprises - 2.35%
                
Associated Capital Group, Inc. - Class A
    
260,290
      
9,568,260
  
Bollore SE
    
8,400
      
38,873
  
Brookfield Business Partners LP
    
3,600
      
70,056
  
Galaxy Digital Holdings Ltd.*
    
1,400
      
5,939
  
Icahn Enterprises LP
    
230,950
      
11,471,287
  
             
21,154,415
  
Mining (except Oil and Gas) - 2.49%
                
Franco-Nevada Corporation - ADR
    
170,550
      
20,377,314
  
Sandstorm Gold Ltd. - ADR^
    
90,000
      
465,300
  
Wheaton Precious Metals Corporation - ADR
    
48,000
      
1,553,280
  
             
22,395,894
  
Oil and Gas Extraction - 64.84%
                
Texas Pacific Land Corp.c
    
328,140
      
583,180,252
  
Tourmaline Oil Corp.*f
    
6,400
      
332,614
  
             
583,512,866
  
Other Financial Investment Activities - 4.17%
                
Brookfield Asset Management, Inc. - Class A
    
820,750
      
33,560,467
  
GAMCO Investors, Inc. - Class A
    
5,100
      
86,955
  
Morgan Group Holding Co.*f
    
5,841
      
6,776
  
Onex Corp. - ADR
    
83,400
      
3,839,736
  
             
37,493,934
  
Other Investment Pools and Funds - 0.00%
                
Partners Value Investments LP*g
    
800
      
39,382
  
Urbana Corporation*
    
1,700
      
5,046
  
             
44,428
  
Other Professional, Scientific, and Technical Services - 0.04%
                
GMO Internet Group, Inc.
    
18,000
      
316,894
  
                 
Other Telecommunications - 2.26%
                
Liberty Broadband Corporation - Series A*
    
3,100
      
231,260
  
Liberty Broadband Corporation - Series C*
    
110,810
      
8,177,778
  
Liberty Media Corp.-Liberty SiriusXM - Class A*
    
135,100
      
5,143,257
  
Liberty Media Corp.-Liberty SiriusXM - Class C*
    
180,750
      
6,816,082
  
             
20,368,377
  
Performing Arts, Spectator Sports, and Related Industries - 2.41%
                
Live Nation Entertainment, Inc.*
    
284,650
      
21,644,786
  
                 
Real Estate - 2.92%
                
DREAM Unlimited Corp.*f
    
153,800
      
2,738,973
  
Equity Lifestyle Properties, Inc. - REIT
    
99,100
      
6,227,444
  
The Howard Hughes Corporation*
    
312,150
      
17,289,988
  
Tejon Ranch Co.*
    
1,600
      
23,040
  
             
26,279,445
  
Satellite Telecommunications - 0.22%
                
DISH Network Corp. - Class A*
    
25,500
      
352,665
  
EchoStar Corporation - Class A*
    
97,700
      
1,609,119
  
             
1,961,784
  
Securities and Commodities Exchanges - 1.02%
                
Cboe Global Markets, Inc.
    
63,200
      
7,417,784
  
CME Group, Inc.
    
9,600
      
1,700,448
  
IntercontinentalExchange Group, Inc.
    
500
      
45,175
  
             
9,163,407
  
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 0.01%
                
S&P Global, Inc.
    
340
      
103,819
  
                 
Spectator Sports - 1.03%
                
Liberty Media Corp.-Liberty Formula One - Class A*
    
88,400
      
4,642,768
  
Liberty Media Corp.-Liberty Formula One - Class C*
    
79,400
      
4,644,900
  
             
9,287,668
  
Support Activities for Mining - 0.00%
                
Core Laboratories NV - ADR
    
200
      
2,696
  
                 
Support Activities for Water Transportation - 0.39%
                
Clarkson plc
    
101,500
      
2,980,561
  
Siem Industries, Inc. - ADR*ag
    
26,300
      
552,300
  
             
3,532,861
  
Utilities - 0.24%
                
Brookfield Infrastructure Corporation - Class A - ADR
    
7,350
      
299,145
  
Brookfield Infrastructure Partners LP
    
51,750
      
1,857,825
  
             
2,156,970
  
Water Transportation - 0.00%
                
Royal Caribbean Cruises Ltd. - ADR*
    
200
      
7,580
  
                 
TOTAL COMMON STOCKS
                
(cost $177,774,046)
            
791,795,828
  
                 
PREFERRED STOCKS - 0.00%
                
Other Investment Pools and Funds - 0.00%
                
Partners Value Investments LP - Class A*g
    
217
      
4,449
  
                 
TOTAL PREFERRED STOCKS
                
(cost $1,764)
            
4,449
  
                 
UNIT INVESTMENT TRUST - 2.47%
                
Funds, Trusts, and Other Financial Vehicles - 0.00%
                
Grayscale Ethereum Classic Trust*
    
12
      
92
  
                 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities - 2.47%
                
Grayscale Bitcoin Trust*
    
1,946,400
      
22,208,424
  
                 
TOTAL UNIT INVESTMENT TRUST
                
(cost $25,987,742)
            
22,208,516
  
                 
WARRANTS - 0.00%
  
Shares
          
Other Investment Pools and Funds - 0.00%
                
Partners Value Investments LP Expiration: 06/30/2026,
                
 Exercise Price: 32.45 CAD*g
    
800
      
4,054
  
                 
TOTAL WARRANTS
                
(cost $2,367)
            
4,054
  
                 
TOTAL INVESTMENTS - 90.46%
                
(cost $203,765,919)
          
$
814,012,847
  
                 
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 September 30, 2022. Total loaned securities had a market value of $964,799 at September 30, 2022. The total collateral for the loaned securities was cash in the amount of $977,840.
  
- Value determined using significant unobservable inputs.
                
- Significant Investment - Greater than 5% of net assets.
                
- Level 2 Investment.
                
- Illiquid.
                
- American Depository Receipt.
                
- Canadian Dollars.
                
- Real Estate Investment Trust.
                

 
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 September 30, 2022, 0.83%, 1.41%, 0.68%, 0.00%, and 0.06% 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 September 30, 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 Paradigm Portfolio
          
                           
The following is a summary of the inputs used to value The Paradigm Portfolio's net assets as of September 30, 2022:
          
                           
Assets^
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Common Stocks
  
$
788,125,783
    
$
3,078,363
    
$
591,682
    
$
791,795,828
  
Unit Investment Trust
    
22,208,516
      
–
      
–
      
22,208,516
  
Preferred Stocks
    
–
      
–
      
4,449
      
4,449
  
Convertible Preferred Stocks
    
–
      
–
      
–
      
–
  
Warrants
    
–
      
–
      
4,054
      
4,054
  
Corporate Bonds
    
–
      
–
      
–
      
–
  
Total Investments in Securities
  
$
810,334,299
    
$
3,078,363
    
$
600,185
    
$
814,012,847
  
           
                                   
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
  
$
578,173
                          
Accrued discounts/premiums
    
-
                          
Realized gain (loss)
    
-
                          
Change in unrealized appreciation (depreciation)
    
22,012
                          
Net purchases and/or acquisitions
    
-
                          
Net sales and/or write-offs
    
-
                          
Transfer in and/or out of Level 3
    
-
                          
Balance as of September 30, 2022
  
$
600,185
                          
                                   

Description   
Fair Value at
9/30/2022
    
Valuation
Techniques
    
Unobservable
Input
    
Range
  
 
Common Stocks
  
$
39,382
    
Followed valuation procedures and used the last traded price-fair valuation is reviewed by the board using market comparables
    
Intermittent market activity
    
$
60.00 - $80.00
  
 
Common Stocks
  
$
552,300
    
Followed valuation procedures and used the last traded price-fair valuation is reviewed by the board using market comparables
    
Intermittent market activity
    
$
10.50 - $21.00
  
 
Preferred Stocks
  
$
4,449
    
Followed valuation procedures and used the last traded price-fair valuation is reviewed by the board using market comparables
    
Intermittent market activity
    
$
18.00 - $23.00
  
 
Warrants
  
$
4,054
    
Followed valuation procedures and used the last traded price-fair valuation is reviewed by the board using market comparables
    
Intermittent market activity
    
$
6.10 - $10.50
  
 
 
                                
^
See Consolidated Portfolio of Investments for breakout of investments by industry classification.