Value Investment Fund – 08/31/26 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 August 2026, along with the current financial status of the Value Investment Fund.

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

1) Target – 08/12/26 Earned $813 in dividends payable on Sept 02, 2026.
2) UDR – 08/15/26 UDR is now paying dividends monthly with ex-dividend dates of the 15th and payment by the end of the month. Earned $145 and received on 08/31/26.
3) Target – 08/13/26 Sold all 700 shares at $156, netting $155 after transaction fees. The basis in the stock was $63,700, generating a capital gain of $44,800. Used gross proceeds of $108,500 to pay off the balance on the margin account, including a closing fee of $246.30.
4) Paid $12,544 in taxes from the gain on the sale of Target.

Net Fund Balance on 07/31/26 = $320,441

Value Investment Fund
      Balance Sheet
           08/31/26

ASSETS
  Cash                                                                                                                              78,970

  Dividends Receivable                                                                                                       988 *Conagra Brands & Target 

  Securities Portfolio              #of Shares           Basis         Market Value
     Lululemon                           300                   48,300             35,778
     Wendy’s                           12,000                103,230             96,600
     Disney                                 678.2                70,031             72,262
     Conagra Brands                 1,000                  15,630             15,770
UDR, Inc.                              1,000                  36,000              36,700
    Subtotal                                                     $273,191          $257,110                        257,110
TOTAL ASSETS                                                                                                        $337,068
LIABILITIES
Taxes Payable on Dividends/PUTs Earned                                                                       1,159
Tax Deferral on Unrealized Gains/(Losses) of ($16,081) @28%                                    (4,503)
Margin Account Balance                                                                                                    -0-    
NET FUND BALANCE                                                                                            $340,412
Lifetime to Date Earnings – $357,601 on a $100,000 Investment = 23.8% Average Annualized Return over 6.91 Years.
Income Taxes Paid Lifetime to Date – $104,076 

The following schedule reflects the cash reconciliation for the month:

Cash Balance on 07/31/26                                7,746
Net Proceeds from Sale of Target                 108,500
Paid off Margin Account Balance               (24,630)
Rcvd Dividends UDR                                          145
Income Tax Payment                                     (12,544)
Interest Paid on Margin Account                        (246) * Closing Fee of 1%
Cash Balance on 08/31/2026                         $78,970 *$1 Rounding Error 

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                             $291.59                       21.5% Safety Margin
Lululemon                                        300                  $100.00          03/19/2027              $30,300                             $120.26                       20.2% Safety Margin                       
Target*                                           1,000                   $85.00           12/17/2027             $86,000                             $160.88                       89.3% Safety Margin

*Target’s PUT Options are referred to as LONG PUTs due to the expiration date being 16 months out. Thus, the margin of safety is irrelevant in the overall risk status. But, to be honest, the Facilitator would love the opportunity to buy Target at $85 per share.

After 6.91 years of activity, the Value Investment Fund is averaging a 23.8% annualized return. Act on Knowledge.