Value Investment Fund – September 30, 2023
Value Investment Fund – Status on September 30, 2023
. September 30, 2023 August 31, 2023 September 30, 2023
. # of Shares Cost Basis Net Market Price* Net Fair Market Value* Net Fair Market Value*
REITs
. – Essex Property Trust, Inc. (Tranche #1) 71.6846 $20,000.00 $211.09 $17,010.04 $15,131.91
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000.00 211.09 18,437.43 16,401.69
. – Essex Property Trust, Inc. (Tranche #3) 100.0000 22,221.00 211.09 23,729.00 21,109.00
. – Essex Property Trust, Inc. (Tranche #4) 180.0000 44,980.00 211.09 42,712.20 37,996.20
. Sub-Total 429.3846 107,201.00 $101,888.67 $90,638.80
. – AvalonBay Communities 100.0000 17,581.38 170.74 $18,770.00 $17,074.00
Railroads
. – Norfolk Southern Railroad (Tranche #1) 100.0000 21,624.01 195.93 $20,401.00 $19,593.00
. – Norfolk Southern Railroad (Tranche #2) 200.0000 40,895.12 195.93 -0- 39,186.00
. Sub-Total 300.0000 62,519.13 $20,401.00 $58,779.00
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000.00 $80.05 $15,005.40 $14,423.42
. – The Walt Disney Company (Tranche #2) 200.0000 21,200.00 80.05 16,656.00 16,010.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000.00 80.05 16,491.09 15,851.48
. – The Walt Disney Company (Tranche #4) 100.0000 9,096.09 80.05 8,328.00 8,005.00
. Sub-Total 678.1999 70,296.09 $56,480.49 $54,289.90
Banking
. – Wells Fargo (Tranche #1) 100.0000 4,267.50 39.86 $4,029.00 $3,986.00
. – Wells Fargo (Tranche #2) 400.0000 15,804.00 39.86 16,116.00 15,944.00
. Sub-Total 500.0000 20,071.50 $20,145.00 $19,930.00
Dividend Receivables (Essex/AvalonBay) -0- 1,156.88
Cash on Hand (Basis, Gains, Dividends, PUTS) 3,243.57 1,752.98
Totals (Starting Cost Basis = $100,000) $277,669.10 $220,292.56 $243,621.56
Accrual adjustment for taxes 4,617.33 10,348.07
Totals Net of Taxes (Recapture) $224,909.89 $253,969.63
Margin Account (AvalonBay/Norfolk Southern/Disney Purchase) (45,817.38) (85,521.38)
This portfolio’s value is AFTER TAXES of 28% on all realized gains. Total taxes paid to date 35,508.50 36,921.63
Comparative Gross Return Since Inception $214,601.01 $205,369.88
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis & Fees at Point of Sale) $(18,660.48) $(36,957.40)
*Net of transaction fees of $1.00 per share; thus, the amount in the schedule equals the actual market price per share at closing less $1.00 per share.
Value Investment Fund – Potential Obligations
The Value Investment Fund’s current exposure related to PUT options is as follows:
Norfolk Southern Corporation – sold in September (200 Shares) with a strike price of $145 and an expiration date of January 21, 2024 $29,200
L3 Harris Technologies – sold 12/30/22 (100 Shares) with a strike price of $150 and an expiration date of October 20, 2023 $15,100
Marriott Hotels – sold 12/30/22 (100 Shares) with a strike price of $90 and an expiration date of January 19, 2024 $9,100
Essex Property Trust – sold 03/17/23 (100 Shares) with a strike price of $200 and an expiration date of October 23, 2023 $20,100
Norfolk Southern Corporation – sold 09/29/23 (200 Shares) with a strike price of $185.00 and an expiration date of June 21, 2024 $37,200
The Walt Disney Company – sold 07/18/23 (300 Shares) with a strike price of $85 and an expiration date of June 21, 2024 $25,800
*Total financial commitment = $136,500
Market prices on September 30, 2023 are:
- L3 Harris Technologies (Expiration 10/20/23) $174.12 (Strike Price of $150.00) Current Deviation = 16.08%
- Essex Property Trust (Expiration 10/20/23) $212.09 (Strike Price of $200.00) Current Deviation = 6.04%
- Marriott Hotels (Expiration 01/19/2024) $196.56 (Strike Price of $90.00) Current Deviation = 118.40%
- Norfolk Southern Corp (Expiration on 01/21/24) $195.93 (Strike Price of $145.00) Current Deviation = 35.12%
- The Walt Disney Company (Expiration on 06/21/24) $81.05 (Strike Price of $85.00) Current Deviation = (4.65%)
- Norfolk Southern Corp (Expiration on 06/21/24) $195.93 (Strike Price of $185.00) Current Deviation = 5.91%
*Deviations > 25% are considered favorable.
1st Quarter Earnings Summary:
- Gains from Securities $20,412.00 *Comerica Bank
- Dividends 2,131.53
- Sale of PUT Option Contracts 1,840.00
Sub-Total 1st Quarter Earnings $24,383.53
2nd Quarter Earnings Summary:
- Dividends $1,441.88
3rd Quarter Earnings:
- Norfolk Southern Dividends $135.00
- Wells Fargo Dividends 175.00
- Essex Property Dividends 991.88
- AvalonBay Dividends 165.00
- Sale of PUT Option Contract (NSC) 1,720.00
- Sale of PUT Option Contracts (Disney) 1,860.00
Sub-Total 3rd Quarter Earnings $5,046.88
Total Earnings to Date 2023: $30,872.29
Realized Return Year-to-Date 2023: 21.378%
Taxes Paid Year-to-Date 2023: $8,644.24 ($30,872.291*.28)