Value Investment Fund – 02/28/26 Report

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

During February 2026, the Value Investment Fund had two transactions. The Fund had the following activity:

 1) Target – 02/11/26 Earned $798 of Dividends payable on 03/01/26.
2) Margin Account – 02/28/26 Paid $30 of Interest on $3,000 Principal Balance

Net Fund Balance on 01/31/26 = $314,176

Value Investment Fund
      Balance Sheet
           02/28/26

ASSETS
  Cash                                                                                                                                 $524
  Dividends Receivable                                                                                                        798
  Securities Portfolio              #of Shares           Basis         Market Value
     Target                                   700                $63,700            $78,953
     Lululemon                           300                   48,300             55,251
     Wendy’s                            9,000                   82,500             66,690
     Disney                                 678.2                70,031             71,238
     Essex Property                    200                   50,616             50,822
     Subtotal                                                    $315,147         $322,954                          322,954
TOTAL ASSETS                                                                                                        $324,276
LIABILITIES
Taxes Payable on Dividends/PUTs Earned ($5,292) Less Interest of $120                     1,482
Tax Deferral on Unrealized Gains/(Losses) of $7,807@28%                                          2,186
Margin Account Balance                                                                                                  3,000
NET FUND BALANCE                                                                                            $317,608

The following schedule reflects the cash reconciliation for the month:

Cash Balance on 01/31/26                                 $554
Interest Paid on Margin Account                         (30) * 1% EOM requirement
Cash Balance on 02/28/2026                            $524

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                             $254.11                        5.9% Safety Margin
Target*                                           1,000                   $85.00            12/17/2027             $86,000                            $112.79                       32.7% Safety Margin

*Target’s PUT Options are referred to as LONG PUTs due to the expiration date being 22 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.