Value Investment Fund – August 31, 2023
Value Investment Fund – Status on August 31, 2023
. August 31, 2023 July 31, 2023 August 31, 2023
. # of Shares Cost Basis Net Market Price* Net Fair Market Value* Net Fair Market Value*
REITs
. – Essex Property Trust, Inc. (Tranche #1) 71.6846 $20,000.00 $237.29 $17386.38 $17,010.04
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000.00 237.29 18,845.36 18,437.43
. – Essex Property Trust, Inc. (Tranche #3) 100.0000 22,221.00 237.29 24,254.00 23,729.00
. – Essex Property Trust, Inc. (Tranche #4) 180.0000 44,980.00 237.29 43,657.20 42,712.20
. Sub-Total 429.3846 107,201.00 $104,142.94 $101,888.67
. – AvalonBay Communities 100.0000 17,415.52 182.82 $18,770.00 $18,282.00
Railroads
. – Norfolk Southern Railroad 100.0000 21,420.01 204.01 $23,255.00 $20,401.00
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000.00 $83.28 $15,834.23 $15,005.40
. – The Walt Disney Company (Tranche #2) 200.0000 21,200.00 83.28 17,576.00 16,656.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000.00 83.28 17,401.98 16,491.09
. – The Walt Disney Company (Tranche #4) 100.0000 9,007.78 83.28 8,788.00 8,328.00
. Sub-Total 678.1999 70,207.78 $59,600.21 $56,480.49
Banking
. – Wells Fargo (Tranche #1) 100.0000 4,267.50 40.29 $4,516.00 $4,029.00
. – Wells Fargo (Tranche #2) 400.0000 15,804.00 40.29 18,064.00 16,116.00
. Sub-Total 500.0000 20,071.50 $22,580.00 $20,145.00
Dividend Receivables (Essex/AvalonBay) -0- -0-
Cash on Hand (Basis, Gains, Dividends, PUTS) 3,243.57 3,095.40
Totals (Starting Cost Basis = $100,000) $236,315.81 $231,591.72 $220,292.56
Accrual adjustment for taxes 1,581.86 4,617.33
Totals Net of Taxes (Recapture) $233,173.58 $224,909.89
Margin Account (AvalonBay/Norfolk Southern/Disney Purchase) (45,817.38) (45,817.38)
This portfolio’s value is AFTER TAXES of 28% on all realized gains. Total taxes paid to date 35,508.50 35,508.50
Comparative Gross Return Since Inception $222,864.70 $214,601.01
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis & Fees at Point of Sale) $(7,509.49) $(18,660.48)
*Net of transaction fees of $1.00 per share; thus, the amount in the schedule equals the actual market price per share at closing less $1.00 per share.
Value Investment Fund – Potential Obligations
The Value Investment Fund’s current exposure related to PUT options is as follows:
Norfolk Southern Corporation – sold in September (200 Shares) with a strike price of $145 and an expiration date of January 21, 2024 $29,200
L3 Harris Technologies – sold 12/30/22 (100 Shares) with a strike price of $150 and an expiration date of October 20, 2023 $15,100
Marriott Hotels – sold 12/30/22 (100 Shares) with a strike price of $90 and an expiration date of January 19, 2024 $9,100
Essex Property Trust – sold 03/17/23 (100 Shares) with a strike price of $200 and an expiration date of October 23, 2023 $20,100
Huntington Ingalls – sold 03/17/23 (200 Shares) with a strike price of $185 and an expiration date of September 15, 2023 $37,200
The Walt Disney Company – sold 07/18/23 (300 Shares) with a strike price of $85 and an expiration date of June 21, 2024 $25,800
*Total financial commitment = $113,200
Market prices on August 31, 2023 are:
- Huntington Ingalls (Expiration 09/15/23) $220.32 (Strike Price of $185.00) Current Deviation = 19.09%
- L3 Harris Technologies (Expiration 10/20/23) $178.09 (Strike Price of $150.00) Current Deviation = 18.73%
- Essex Property Trust (Expiration 10/23/23) $237.29 (Strike Price of $200.00) Current Deviation = 18.64%
- Marriott Hotels (Expiration 01/19/2024) $203.51 (Strike Price of $90.00) Current Deviation = 126.12%
- Norfolk Southern Corp (Expiration on 01/21/24) $204.01 (Strike Price of $145.00) Current Deviation = 40.69%
- The Walt Disney Company (Expiration on 06/21/24) $83.28 (Strike Price of $85.00) Current Deviation = (2.02%)
*Deviations > 25% are considered favorable.
Earnings realized during April/May/June 2023:
- Norfolk Southern – $1.35/Share, 100 Shares = $135.00
- Wells Fargo Bank – $.30/Share, 500 Shares = $150.00
- Essex Property Trust – $2.31/Share, 429.3846 Shares = $991.88
- AvalonBay Communities – $1.65/Share, 100 Shares = $165.00
1st Quarter Earnings Summary:
- Gains from Securities $20,412.00 *Comerica Bank
- Dividends 2,131.53
- Sale of PUT Option Contracts 1,840.00
Sub-Total 1st Quarter Earnings $24,383.53
2nd Quarter Earnings Summary:
- Dividends $1,441.88
3rd Quarter Earnings:
- Norfolk Southern Dividends $135.00
- Wells Fargo Dividends 175.00
- Sale of PUT Option Contracts (Disney) 1,860.00
Sub-Total 3rd Quarter Earnings $2,170.00
Total Earnings to Date 2023: $27,995.41
Realized Return Year-to-Date 2023: 19.386%
Taxes Paid Year-to-Date 2023: $7,231.11 ($25,825.41*.28)
Tax Deferral 3rd Quarter 2023 (Due 09/30/23) $607.60 ($2,170.00*.28)