Kinetics Mutual Funds Inc.
11/02/2026 | Press release | Distributed by Public on 11/02/2026 16:14
Summary Prospectus by Investment Company (Form 497K)
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The Kinetics Spin-Off and Corporate Restructuring Fund
(LSHAX, LSHCX, LSHUX, LSHEX)
(the "Fund")
a series of Kinetics Mutual Funds, Inc. (the "Company")
Supplement dated November 2, 2026
to the currently effective Summary Prospectus of the Fund
The Board of Directors of the Company has approved the following changes, effective January 1, 2027:
The "Principal Investment Strategy" section in the Summary Prospectus is deleted in its entirety and
replaced with the following:
Under normal market conditions, the Fund invests at least 80% of its net assets (plus borrowings for
investment purposes) in equity securities of spin-off companies and corporate restructuring companies, as
described below, and publicly traded shareholder activist holding companies that have caused other
companies to undergo spin-offs or corporate restructurings. The Fund is non-diversified. For purposes of
this policy, "spin-off companies and corporate restructuring companies" are companies that the
Investment Adviser determines have experienced, participated in, or otherwise have a substantial
relationship to any of the following: (i) a spin-off distribution of a subsidiary's stock to the parent
company shareholders; (ii) an equity "carve-out" or "partial initial public offering" in which a parent
company sells a percentage of the equity of a subsidiary in a public offering; (iii) a parent company of any
such company after the public disclosure of a corporate restructuring; or (iv) a company that has
purchased greater than 25% of the outstanding shares of, or holds greater than 25% of its capital in shares
of, a company meeting any of the foregoing criteria. Once the Fund invests in a spin-off or corporate
restructuring company, the Fund may continue to acquire shares of that company and treat such shares as
qualifying investments for purposes of the 80% policy, regardless of the time elapsed since the applicable
event or circumstance, for so long as the Fund maintains an investment in the company. The Fund may
invest in a parent company or publicly traded shareholder activist holding company before, during or after
a publicly disclosed spin-off or corporate restructuring. If the Fund invests in a parent company before
completion of a spin-off or restructuring and receives shares of the spin-off company upon completion, it
may retain shares of either, both or neither company.
The Investment Adviser seeks to avoid short-term investing and significant portfolio turnover. The
Investment Adviser utilizes its in-house research capabilities in implementing its investment technique by
seeking to identify businesses at inflection points in their corporate life cycles with what the Investment
Adviser believes are attractive risk/reward profiles. The Investment Adviser believes that returns are often
the result of the market's inefficiency in initially valuing corporate restructurings due in part to lack of
coverage by the investment community and initial indiscriminate selling pressure. For instance,
companies that have been "spun-off" from their corporate parents by way of corporate restructurings may
not be followed closely by financial sector analysts, which could lead to advantageous disparities between
a company's valuation and growth prospects relative to its pricing in the marketplace. The Investment
Adviser uses a process that focuses primarily on the analysis of individual companies rather than on the
industry in which the company may operate. This "bottom-up" approach may result in multiple
investments in the same sector or industry. However, the Investment Adviser pays careful attention to the
limitation of sector and industry concentrations.
The Fund invests in both U.S. and foreign equity securities. The Fund's investments in foreign equity
securities may be in both developed and emerging markets. The Fund's equity investments may include
common stock, preferred stock, securities convertible into common stock, warrants, rights and other
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equity securities having the characteristics of common stock (such as depositary receipts). The Fund may
invest in any size company, including small- and medium-sized companies, and further may invest in
companies which are financially distressed.
The Fund may invest up to 20% of its assets in companies that, for a variety of reasons, the Fund's
Investment Adviser believes may have the potential to be subject to a spin-off or corporate restructuring
within a reasonable period of time; for example, a similar company may have recently announced a spin-
off; the company may be under investor pressure to consider strategic alternatives; or the current
segments of the company may not have a synergistic fit, and as a result the company's stock trades at a
discount to that of its closest peers. The Fund may invest in potential spin-off and corporate restructuring
companies that the Fund's Investment Adviser believes may, based on its in-house research, have the
most favorable risk/reward characteristics.
The Fund may invest in crypto assets, including bitcoin or BTC, indirectly through other investment
vehicles. The Fund will not invest directly in bitcoin or other crypto assets. Certain of these vehicles
may not be registered under the Investment Company Act of 1940, as amended (the "1940 Act") and do
not receive the protections of the 1940 Act. The Fund may contribute a portion of its indirect holdings in
crypto assets to a wholly-owned and controlled subsidiary organized under the laws of the Cayman
Islands (a "Subsidiary"). The amount of the Fund's investment in crypto assets may be limited by law or
by tax considerations. The Fund will not invest in private investment vehicles beyond the limits of the
1940 Act.
The Fund may invest indirectly in bitcoin through a Delaware statutory trust, Grayscale Bitcoin Trust
ETF ("GBTC") and through other pooled investment vehicles that provide exposure to crypto assets.
GBTC is a Bitcoin ETF that enables investors to gain exposure to bitcoin in the form of a security while
avoiding the challenges of buying, storing, and safekeeping bitcoin, directly.
In the future, the Fund may seek to gain additional exposure to crypto assets that may not produce
qualifying income for the Fund under the Internal Revenue Code of 1986, as amended (the "Code") if
held directly.
The Subsidiary invests primarily in investment vehicles that provide the Fund with exposure to crypto
asset investments. The Fund will invest in its Subsidiary in a manner that is consistent with the limitations
of the federal tax laws, rules and regulations that apply to the Fund as a "regulated investment
company" ("RIC") under Subchapter M of Subtitle A, Chapter 1, of the Code ("Subchapter M"). The
Fund complies with Section 8 and Section 18 of the 1940 Act, governing investment policies and capital
structure and leverage, respectively, on an aggregate basis with the Subsidiary. The Subsidiary also
complies with Section 17 of the 1940 Act, relating to affiliated transactions and custody, and the
Investment Adviser complies with Section 15 of the 1940 Act, relating to investment advisory contracts
with respect to the Subsidiary. Unlike the Fund, the Subsidiary does not, and will not, seek to qualify as a
RIC. The Fund is the sole shareholder of the Subsidiary and does not expect shares of the Subsidiary to be
offered or sold to other investors. The Subsidiary includes entities that engage in investment activities in
securities or other assets that are primarily controlled by the Fund. The Fund does not intend to create or
acquire primary control of any entity which primarily engages in investment activities in securities or
other assets other than entities wholly-owned by the Fund.
The Fund may maintain during a temporary period, which could be for a short period or a longer period
lasting several years or more, of abnormal conditions, a significant portion of its total assets in cash and
securities, generally considered to be cash and cash equivalents, including, but not limited to: high
quality, U.S. short-term debt securities and money market instruments. The Investment Adviser will
invest in such short-term cash positions to the extent that the Investment Adviser is unable to find
sufficient investments meeting its criteria and when the Adviser believes the purchase of additional equity
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securities would not further the investment objective of the Fund during such periods of time.
Additionally, to respond to adverse market, economic, political or other conditions, which may persist for
short or long periods of time, the Fund may invest up to 100% of its assets in the types of high quality,
U.S. short-term debt securities and money market instruments described above.
If the market advances during periods when the Fund is holding a large cash position, the Fund may not
participate as much as it would have if it had been more fully invested in securities. In the aforementioned
temporary defensive periods, the Investment Adviser believes that an additional amount of liquidity in the
Fund is desirable both to meet operating requirements and to take advantage of new investment
opportunities. When the Fund holds a significant portion of assets in cash and cash equivalents, it may not
meet its investment objective.
The Fund held 77.09% of its net assets in the Texas Pacific Land Corporation (the "Land Corporation") as
of March 31, 2026. The Land Corporation is a corporation organized under the laws of the state of New
York. One of the largest land owners in Texas, the Land Corporation derives most of its income from oil
and gas royalty revenue, land easements and water royalties and sales. The Land Corporation has
historically operated with minimal operating expenses, little to no debt and utilized cash flow to return
capital to unitholders through share repurchases and dividends. While the Land Corporation has held the
majority of its assets since its formation in 1888, the development of energy resources subject to its
royalty interests and related land use have experienced rapid growth in recent years due to advances in
energy exploration and extraction technologies.
Please retain this supplement with your Summary Prospectus.
Kinetics Mutual Funds Inc. published this content on November 02, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 02, 2026 at 22:14 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]