Overall, the Value Investment Fund dropped in value 3.5% from the October 31, 2022 balance. The Fund still is way ahead in comparison to all the major indices as illustrated here:
Value Investment Fund – Status on November 30, 2022
. November 30, 2022 October 31, 2022 November 30, 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 $219.38 $15,859.50 $15,726.16
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000 219.38 17,190.35 17,045.83
. – Essex Property Trust, Inc. (Tranche #3) 100.0000 22,221 219.38 22,124.00 21,938.00
. – Essex Property Trust, Inc. (Tranche #4) 180.0000 44,980 219.38 39,823.20 39,488.40
. Sub-Totals 429.3846 107,201 $94,997.05 $94,198.39
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000 $96.87 $19,016.21 $17,454.04
. – The Walt Disney Company (Tranche #2) 200.0000 21,200 96.87 21,108.00 19,374.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000 96.87 20,899.01 19,182.18
. Sub-Totals 578.1999 61,200 $61,023.22 $56,010.22
Banking
. – Wells Fargo 100.00 4,267.50 46.95 $4,499.00 $4,695.00
Dividend Receivables (Wells Fargo) -0- 30.00
Cash on Hand (Basis, Gains, Dividends, PUTS) 1,615.11 1,615.11
Totals (Starting Cost Basis = $100,000) $172,668.50 $162,134.38 $156,548.73
Accrual adjustment for taxes 3,401.79 4,974.17
Totals Net of Taxes (Recapture) $165,536.16 $161,522.89
This portfolio’s value is AFTER TAXES of 28% on all realized gains. Total taxes paid to date 25,924.50 25,924.50
Comparative Gross Return Since Inception $191,460.60 $187,447.39
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis/Fees at Point of Sale) $(12,149.23) $(17,764.88)
*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
- Norfolk Southern Corporation – sold in September (200 Shares) with a strike price of $145 and an expiration date of January 21, 2024 $29,000
Market prices on November 30, 2022 are:
- Union Pacific Railroad (Expiration on 01/21/2023) $217.43 (Strike Price of $155.00) Current Deviation = 40.27%
- JP Morgan Chase (Expiration on 06/16/2023) $138.18 (Strike Price of $80.00) Current Deviation = 72.72%
- Norfolk Southern Corp (Expiration on 01/21/24) $253.36 (Strike Price of $145.00) Current Deviation = 74.73%
*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 $1,040.00
. Dividends Earned 654.26
. Third Quarter Earnings $1,694.26
Fourth Quarter Earnings:
. Realized Gains from Sale of Wells Fargo $7,623.19
. Dividends Earnings (Wells Fargo) 30.00
Total Realized Earnings Year to Date 2022 $20,264.97 (11.97% Realized Return to Date)
Taxes Paid to Date 2022 – $3,531.30 (28% of the $12,611.78 Realized Thru September 30th 2022)
© 2023, David J Hoare MSA. All rights reserved.
