Value Investment Fund – 03/31/26 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 March 2026, along with the current financial status of the Value Investment Fund.

During March 2026, the Value Investment Fund had five transactions. The Fund had the following activity:

 1) Wendy’s – 03/02/26 Earned $1,260 (9,000 Shares @ $.14/Each) of Dividends payable on 03/16/26.
2) UDR, Inc. – 03/20/26 Purchased 1,000 Shares at $36/Each, including $1/SH Transaction Fee; Utilized Margin Account and Paid $720 From Cash for the 2% Initial Fee.
3) Conagra Brands – 03/26/26 Purchased 1,000 Shares at $15.63/Each, including a $.25/SH Transaction Fee; Utilized Margin Account and Paid $312.60 for the 2% Initial Fee.
4) Margin Account – 03/31/26 Paid $546.30 of Interest on $54,630 Principal Balance.
5) Essex Property Trust – 03/31/26 Earned $518 in Dividends Payable in April.

Net Fund Balance on 02/28/26 = $317,608

Value Investment Fund
      Balance Sheet
           03/31/26

ASSETS
  Cash                                                                                                                               $1,003
  Dividends Receivable                                                                                                        518
  Securities Portfolio              #of Shares           Basis         Market Value
     Target                                   700                $63,700            $84,140
     Lululemon                           300                   48,300             45,630
     Wendy’s                            9,000                   82,500             60,300
     Disney                                 678.2                70,031             64,687
     Conagra Brands               1,000                    15,630            15,470
UDR, Inc.                         1,000                   36,000             32,780 
     Essex Property                    200                   50,616             48,200
     Subtotal                                                    $366,777         $351,207                          351,207
TOTAL ASSETS                                                                                                        $352,728
LIABILITIES
Taxes Payable on Dividends/PUTs Earned ($7,070) Less Interest of $666                     1,793
Tax Deferral on Unrealized Gains/(Losses) of ($15,570) @28%                                   (4,360)
Margin Account Balance                                                                                                54,630
NET FUND BALANCE                                                                                            $300,665

The following schedule reflects the cash reconciliation for the month:

Cash Balance on 02/28/26                                 $524
Received Dividends Rcvbl                                  798 *Target dividends earned in February
Received Dividends Earned                             1,260 *Wendy’s
Borrowed $36,000 From Margin Acct           36,000
Purchased UDR                                             (36,000)
Paid Margin Acct Initial Fee UDR                    (720)
Borrowed $15,630 From Margin Acct            15,630
Purchased Conagra Brands                            (15,630)
Paid Margin Acct Initial Fee Conagra                (313)
Interest Paid on Margin Account                        (546) * 1% EOM requirement
Cash Balance on 03/31/2026                          $1,003

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                             $241.00                        0.4% Safety Margin
Target*                                           1,000                   $85.00            12/17/2027             $86,000                            $120.20                       41.4% Safety Margin

*Target’s PUT Options are referred to as LONG PUTs due to the expiration date being 21 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 6.5 years of activity, the Value Investment Fund is averaging a 23.0% annualized return. Act on Knowledge.