Value Investment Fund – Status on January 31, 2023
. January 31, 2023 December 31, 2022 January 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 $225.07 $15,119.72 $16,134.05
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000 225.07 16,388.48 17,487.94
. – Essex Property Trust, Inc. (Tranche #3) 100.0000 22,221 225.07 21,092.00 22,507.00
. – Essex Property Trust, Inc. (Tranche #4) 180.0000 44,980 225.07 37,965.60 40,512.60
. Sub-Totals 429.3846 107,201 $90,565.80 $96,641.59
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000 $107.49 $15,473.87 $19,367.56
. – The Walt Disney Company (Tranche #2) 200.0000 21,200 107.49 17,176.00 21,498.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000 107.49 17,005.94 21,285.15
. Sub-Totals 578.1999 61,200 $49,655.81 $62,150.71
Banking
. – Wells Fargo 100.00 4,267.50 45.87 $4,029.00 $4,587.00
Dividend Receivables (Wells Fargo) -0- -0-
Cash on Hand (Basis, Gains, Dividends, PUTS) 161.02 1,105.67
Totals (Starting Cost Basis = $100,000) $172,668.50 $144,411.63 $164,484.97
Accrual adjustment for taxes 7,957.01 2,600.98
Totals Net of Taxes (Recapture) $152,368.64 $167,085.95
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 $180,692.23 $195,409.54
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis/Fees at Point of Sale) $(28,417.89) $(9,289.20)
*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 Corporation – sold 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 Pacific – sold 12/30/22 (200 Shares) with a strike price of $145 and an expiration date of August 18, 2023 $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
*Total financial commitment = $119,500
Market prices on January 31, 2023 are:
- JP Morgan Chase (Expiration on 06/16/2023) $139.96 (Strike Price of $80.00) Current Deviation = 74.95%
- Essex Property Trust (Expiration 07/21/23) $226.07 (Strike Price of $170.00) Current Deviation = 32.98%
- Union Pacific (Expiration 08/18/23) $204.19 (Strike Price of $145.00) Current Deviation = 40.82%
- L3 Harris Technologies (Expiration 10/20/23) $214.82 (Strike Price of $150.00) Current Deviation = 43.81%
- Marriott Hotels (Expiration 01/19/2024) $174.18 (Strike Price of $90.00) Current Deviation = 93.53%
- Norfolk Southern Corp (Expiration on 01/21/24) $245.81 (Strike Price of $145.00) Current Deviation = 69.52%
*Deviations > 25% are considered favorable.
Earnings realized during January:
- Dividends of $2.20 per share for Essex Property Trust (429.3846 shares) = $944.65
© 2023, David J Hoare MSA. All rights reserved.
