Overall, the Value Investment Fund remained stagnant during August 2022. The Fund’s balance improved a mere .2%.
Value Investment Fund – Status on August 31, 2022
. August 31, 2022 July 31, 2022 August 31, 2022
. # 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 $264.06 $20,467.39 $18,929.04
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000 $264.06 22,184.90 20,517.46
. Sub-Totals 149.3846 40,000 $42,652.29 $39,446.50
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000 $111.08 $18,936.93 $20,014.40
. – The Walt Disney Company (Tranche #2) 200.0000 21,200 111.08 21,020.00 22,216.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000 111.08 20,811.88 21,996.04
. Sub-Totals 578.1999 61,200 $60,768.81 $64,226.44
Banking
. – Wells Fargo (Tranche #1) 292.0560 10,000 $42.71 $12,520.44 $12,473.71
. – Wells Fargo (Tranche #2) 558.9715 20,000 42.71 23,963.11 23,873.67
. – Wells Fargo (Tranche #3) 234.3292 10,000 42.71 10,045.69 10,008.20
. Sub-Totals 1,085.3597 40,000 $46,529.24 $46,355.58
Dividend Receivables (Essex Property Trust) -0- 325.61
Cash on Hand (Basis, Gains, Dividends, PUTS) 24,240.55 24,240.55
Totals (Starting Cost Basis = $100,000) $141,200 $174,190.89 $174,594.68
Accrual adjustment for taxes (2,450.10) (2,471.99)
Totals Net of Taxes (Recapture) $171,740.80 $172,122.70
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 $197,190.91 $197,572.84
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis/Fees at Point of Sale) $8,750.34 $8,828.53
*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 August 31, 2022 are:
- Union Pacific Railroad (Expiration on 01/21/2023) $225.24 (Strike Price of $155.00) Current Deviation = 38.86%
- JP Morgan Chase (Expiration on 06/16/2023) $113.73 (Strike Price of $80.00) Current Deviation = 42.16%
- Essex Property Trust, Inc. (Expiration on 10/21/2022) $264.06 (Strike Price of $260.00/$240.00) Current Deviation = 1.56%/10.03% 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
Third Quarter Earnings:
. Net Earnings from Sales of PUT Contracts $-0-
. Dividends Earned 325.61
. Third Quarter Earnings $325.61
Total Realized Earnings Year to Date 2022 $11,243.13 (6.63% Realized Return to Date)
Taxes Paid to Date 2022 – $3,056.91 (28% of the $10,917.52 Realized Thru Jun3 30th 2022)
© 2023, David J Hoare MSA. All rights reserved.
