Overall, the Value Investment Fund had a good month during July 2022. The Fund’s balance improved 6%.
Value Investment Fund – Status on July 31, 2022
. July 31, 2022 June 30 , 2022 July 31, 2022
. # of Shares Cost Basis Market Price* Fair Market Value* Fair Market Value*
REITs
. – Essex Property Trust, Inc. (Tranche #1) 71.6846 $20,000 $285.52 $18,674.55 $20,467.39
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000 $285.52 20,241.63 22,184.90
. Sub-Totals 149.3846 40,000 38,916.18 42,652.29
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000 $105.10 $16,828.82 $18,936.93
. – The Walt Disney Company (Tranche #2) 200.0000 21,200 105.10 18,680.00 21,020.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000 105.10 18,495.05 20,811.88
. Sub-Totals 578.1999 61,200 54,003.87 $60,768.81
Banking
. – Wells Fargo (Tranche #1) 292.0560 10,000 $42.87 $11,147.78 $12,520.44
. – Wells Fargo (Tranche #2) 558.9715 20,000 42.87 21,335.94 23,963.11
. – Wells Fargo (Tranche #3) 234.3292 10,000 42.87 8,944.35 10,045.69
. Sub-Totals 1,085.3597 40,000 41,428.07 $46,529.24
Dividend Receivables (Essex Property Trust) 336.12 -0-
Cash on Hand (Basis, Gains, Dividends, PUTS) 23,904.43 24,240.55
Totals (Starting Cost Basis = $100,000) $141,200 $158,588.66 $174,190.89
Accrual adjustment for taxes 1,918.53 (2,450.10)
Totals Net of Taxes (Recapture) $160,507.19 $171,740.80
This portfolio’s value is AFTER TAXES of 28% on all realized gains. Total taxes paid to date equals 25,450.11 25,450.11
Comparative Gross Return Since Inception $185,957.30 $197,190.91
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis/Fees at Point of Sale) ($6,851.88) $8,750.34
*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:
- Union Pacific Railroad – sold in Feb 2020 with a strike price of $155/share and an expiration date of January 21, 2023 $20,000
- JP Morgan Chase – sold in May 2022 with a strike price of $80/share and an expiration date of June 16, 2023 $20,000
- Essex Property Trust, Inc. – sold in May 2022 with a strike price of $260/share and an expiration date of October 21, 2022 $20,800
- Essex Property Trust, Inc. – sold in June with a strike price of $240/share and an expiration date of October 21, 2022 $24,000
Market prices on July 31, 2022 are:
- Union Pacific Railroad (Expiration on 01/21/2023) $227.30 (Strike Price of $155.00) Current Deviation = 46.65%
- JP Morgan Chase (Expiration on 06/16/2023) $115.36 (Strike Price of $80.00) Current Deviation = 44.20%
- Essex Property Trust, Inc. (Expiration on 10/21/2022) $286.53 (Strike Price of $260.00/$240.00) Current Deviation = 10.20%/19.38% Respectfully
*Deviations > 25% are considered favorable.
Value Investment Fund – Earnings Year-To-Date
First Quarter Earnings:
. Sold Huntington Ingalls 03/07/22 Net Realized Gain $5,557.05
. Dividends Earned (First Quarter 2022) 271.34
. Net Earnings from Sales of PUT Contracts 573.10
. First Quarter Earnings $6,401.49
Second Quarter Earnings:
. Net Earnings from Sales of PUT Contracts $3,908.57
. Dividends Earned 607.46
. Second Quarter Earnings $4,516.03
Total Realized Earnings Year to Date 2022 $10,917.52 (5.51% Realized Return to Date)
Taxes Paid to Date 2022 – $3,056.91 (28% of the $10,917.52 Realized to Date)
© 2023, David J Hoare MSA. All rights reserved.
