Strategy And Objective

The investment objective of the Small Cap Opportunities Fund (the Small Cap Fund ) is long-term growth of capital. The Small Cap Fund is the sole feeder fund to The Small Cap Opportunities Portfolio (the Small Cap Portfolio ), a series of Kinetics Portfolios Trust. The Small Cap Fund is a non-diversified fund that invests all of its investable assets in the Small Cap Portfolio, a series of Kinetics Portfolios Trust. Under normal circumstances, the Small Cap Portfolio invests at least 80% of its net assets plus any borrowings for investment purposes in common stocks, convertible securities, warrants and other equity securities having the characteristics of common stocks (such as American Depositary Receipts ( ADRs ), Global Depositary Receipts ( GDRs ) and International Depositary Receipts ( IDRs )) of U.S. and foreign small capitalization companies that provide attractive valuation opportunities. The Small Cap Portfolio s Investment Adviser considers small cap companies to be those with market capitalizations at or below the highest market capitalization of a component security within the S&P 600 SmallCap Index. The highest market capitalization of a company within the S&P 600 SmallCap Index was approximately $12.4 billion as of March 31, 2021. The Small Cap Portfolio may also invest in exchange-traded funds ( ETFs ) and purchase and write options for hedging purposes and/or direct investment.