Kinetics Funds, The Internet Fund

The fund is a non-diversified fund that invests all of its investable assets in the Internet Portfolio. The Internet 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, of U.S. and foreign companies engaged in the Internet and Internet-related activities and whose businesses are vastly improved through the distribution of content and reduction of costs with the use of the Internet. It is non-diversified.