Value Investment Fund – 04/30/26 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 April 2026, along with the current financial status of the Value Investment Fund.

During April 2026, the Value Investment Fund had four transactions. The Fund had the following activity:

 1) Conagra Brands – 04/01/26 Earned $350 (1,000 Shares @ $.35/Each) of Dividends payable on 06/01/26.
2) UDR, Inc. – 04/15/26 Earned $435 (1,000 Shares @ $.435/Each) of Dividends payable on 04/30/26.
3) Internal Revenue Service – 04/15/26 Paid $1,793.12 of taxes on 1st Quarter Earnings of $6,404 (Dividends/PUT Options Less Interest Paid on Margin Acct).
4) Margin Account – 04/30/26 Paid $546.30 of Interest on $54,630 Principal Balance.

Net Fund Balance on 03/31/26 = $300,665

Value Investment Fund
      Balance Sheet
           04/30/26

ASSETS
  Cash                                                                                                                                ($384)
  Dividends Receivable                                                                                                        350
  Securities Portfolio              #of Shares           Basis         Market Value
     Target                                   700                $63,700            $90,125
     Lululemon                           300                   48,300             41,010
     Wendy’s                            9,000                   82,500             60,390
     Disney                                 678.2                70,031             69,685
     Conagra Brands                 1,000                  15,630             14,100
UDR, Inc.                         1,000                   36,000             36,090 
     Essex Property                    200                   50,616             52,442
     Subtotal                                                    $366,777         $363,842                          363,842
TOTAL ASSETS                                                                                                        $363,808
LIABILITIES
Taxes Payable on Dividends/PUTs Earned 2nd Qrt ($785) Less Interest of $546               67
Overdraft Protection                                                                                                            384
Tax Deferral on Unrealized Gains/(Losses) of ($2,935) @28%                                        (822)
Margin Account Balance                                                                                                54,630
NET FUND BALANCE                                                                                            $309,549

The following schedule reflects the cash reconciliation for the month:

Cash Balance on 03/31/26                              $1,003
Received Dividends Rcvbl                                  518 *Essex Property Trust
Received Dividends Earned                                435 *UDR
Paid IRS                                                           (1,793)
Interest Paid on Margin Account                        (546) * 1% EOM requirement
Cash Balance on 04/30/2026                            ($384) *Rounding Error, Negative Balance Covered by Overdraft Protection

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                             $262.21                        9.2% Safety Margin
Target*                                           1,000                   $85.00            12/17/2027             $86,000                            $128.75                       51.5% Safety Margin

*Target’s PUT Options are referred to as LONG PUTs due to the expiration date being 20 months out. Thus, the margin of safety is irrelevant in the overall risk status.

There is a low 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.