Value Investment Fund – 01/31/26 Report

Each month, the Value Investment Fund reports its results through the last day of that period. The following is a report of all activity during the January 2026 period, along with the current financial status of the Value Investment Fund.

During January 2026, the Value Investment Fund had three transactions. The Fund had the following activity:

1) Essex Property Trust      01/02/26 Earned $2.57/Share   200.00 Shares = $514.00
2) Wendy’s    01/27/26   Purchased 3,000 Shares as Tranche #3, Paid $24,750 ($8.25) including $.25/Share for Transaction Fees; Borrowed a net $3,000 from the Margin Account.
3) Essex Property Trust 01/30/26 Sold 500 PUT Options @ $9.20 with a Strike Price of $240.00 and an Expiration Date of July 17th, 2026. Netted Earnings of $4,100. 

Net Fund Balance on 12/31/25 = $320,043

Value Investment Fund
      Balance Sheet
           01/31/26

ASSETS
  Cash                                                                                                                                 $554
  Dividends Receivable                                                                                                        -0-
  Securities Portfolio              #of Shares           Basis         Market Value
     Target                                   700                $63,700            $73,129
     Lululemon                           300                   48,300             52,050
     Wendy’s                            9,000                   82,500             67,860
     Disney                                 678.2                70,031             75,823
     Essex Property                    200                   50,616             50,094
     Subtotal                                                    $315,147         $318,956                          318,956
TOTAL ASSETS                                                                                                        $319,510
LIABILITIES
Taxes Payable on Dividends/PUTs Earned ($4,614) Less Interest of $90                       1,267
Tax Deferral on Unrealized Gains/(Losses) of $3,809@28%                                          1,067
Margin Account Balance                                                                                                  3,000
NET FUND BALANCE                                                                                            $314,176

The following schedule reflects the cash reconciliation for the month:

Cash Balance on 12/31/25                            $17,271
Dividends Rcvble Paid                                        509 *Disney @$.75 Paid in January
Dividends Earned                                                514 *Essex                      
Sold PUT Options, Netted Amount                  4,100
Cash from Margin Account                              3,000
Purchase of Wendy’s Shares                          (24,750)
Interest Paid on Margin Account                         (90) *2% initial fee plus 1% EOM requirement
Cash Balance on 01/31/2026                            $554

The Fund currently has two open PUT Option contracts; the following schedule provides the current status:

Name                                        # of Shares        Strike Price      Expiration Date   Financial Exposure      Current Market Value            Status
Essex Property Trust                        400                  $240.00           01/16/2026             $96,400                             $260.68                        8.6% Safety Margin
Essex Property Trust                        500                  $240.00           07/17/2026           $120,500                             $250.47                        4.4% Safety Margin
Target*                                           1,000                   $85.00            12/17/2027             $86,000                            $104.47                       22.9% Safety Margin

*Target’s PUT Options are referred to as LONG PUTs due to the expiration date being 24 months out. Thus, the margin of safety is irrelevant in the overall risk status.

There is a mild possibility that the Fund will have to comply with the Essex Property Trust exposure. Essex Property Trust reported financial results for the first quarter of 2026 on April 28, 2026. Essex’s gross profit margin, excluding the sale proceeds in 2025, is $14 million ahead of the same period in 2025. In April of 2025, the market price was $250 per share and rose to over $275 by the end of December 2024. The facilitator feels that the risk exposure for Essex is low, considering how much this aligns with historical patterns. 

After 6.25 years of activity, the Value Investment Fund is averaging a 24.9% annualized return. Act on Knowledge.