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HomeValue InvestingValue Investment Fund – February 28, 2023 / Value Investing

Value Investment Fund – February 28, 2023 / Value Investing


Value Investment Fund – Status on February 28, 2023

                                                                                                                   February 28, 2023         January 31, 2023              February 28, 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            $227.06                        $16,134.05                      $16,276.71
.   – Essex Property Trust, Inc. (Tranche #2)              77.7000             20,000              227.06                          17,487.94                        17,642.56
.   – Essex Property Trust, Inc. (Tranche #3)            100.0000             22,221             227.06                          22,507.00                         22,706.00
.   – Essex Property Trust, Inc. (Tranche #4)            180.0000             44,980             227.06                           40,512.60                        40,870.80
.       Sub-Totals                                                  429.3846            107,201                                                $96,641.59                      $97,496.07
Entertainment
.    – The Walt Disney Company (Tranche #1)         180.1801             20,000             $98.61                         $19,367.56                      $17,767.56
.    – The Walt Disney Company (Tranche #2)         200.0000             21,200               98.61                           21,498.00                        19,722.00
.    – The Walt Disney Company (Tranche #3)         198.0198             20,000               98.61                           21,285.15                        19,526.73
.       Sub-Totals                                                  578.1999              61,200                                                $62,150.71                       $57,016.29
Banking 
.    – Wells Fargo                                                             100.00                      4,267.50              45.77                          $4,587.00                         $4,577.00

Dividend Receivables (Wells Fargo)                                                                                                                -0-                                    30.00
Cash on Hand (Basis, Gains, Dividends, PUTS)                                                                                        1,105.67                           1,105.67
Totals (Starting Cost Basis = $100,000)                                  $172,668.50                                         $164,484.97                     $160,225.03
Accrual adjustment for taxes                                                                                                                         2,600.98                           3,802.16
Totals Net of Taxes (Recapture)                                                                                                           $167,085.95                      $164,027.19
This portfolio’s value is AFTER TAXES of 28% on all realized gains. Total taxes paid to date             28,323.59                          28,323.59
Comparative Gross Return Since Inception                                                                                             $195,409.54                     $192,350.78      
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis/Fees at Point of Sale)   $(9,289.20)                      $(13,579.14)
*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:

  • 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 Corporationsold in September (200 Shares) with a strike price of $145 and an expiration date of January 21, 2024   $29,000
  • Essex Property Trust – sold 12/30/22 (100 Shares) with a strike price of $170 and an expiration date of July 21, 2023                                  $17,100
  • Union Pacificsold 12/30/22 (200 Shares) with a strike price of $145 and an expiration date of August 18, 2023                                             $29,200
  • L3 Harris Technologiessold 12/30/22 (100 Shares) with a strike price of $150 and an expiration date of October 20, 2023                        $15,100
  • Marriott Hotelssold 12/30/22 (100 Shares) with a strike price of $90 and an expiration date of January 19, 2024                                           $9,100
    *Total financial commitment = $119,500

Market prices on February 28, 2023 are:

  • JP Morgan Chase (Expiration on 06/16/2023)                                   $143.35  (Strike Price of $80.00)  Current Deviation =  79.19%
  • Essex Property Trust (Expiration 07/21/23)                                       $228.06 (Strike Price of $170.00) Current Deviation =  34.15% 
  • Union Pacific (Expiration 08/18/23)                                                    $207.28 (Strike Price of $145.00) Current Deviation =  42.95%
  • L3 Harris Technologies (Expiration 10/20/23)                                   $210.08 (Strike Price of $150.00) Current Deviation =  40.05%
  • Marriott Hotels (Expiration 01/19/2024)                                            $169.24 (Strike Price of $90.00)   Current Deviation =  88.04%
  • Norfolk Southern Corp (Expiration on 01/21/24)                              $224.82 (Strike Price of $145.00) Current Deviation =  55.05%
    *Deviations > 25% are considered favorable.

Earnings realized during January/February 2023:

  • Dividends of $2.20 per share for Essex Property Trust (429.3846 shares) = $944.65
  • Dividends of $.30 per share for Wells Fargo (100 shares) = $30.00

© 2023, David J Hoare MSA. All rights reserved.

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