Value Investment Fund – Status on March 31, 2023
. March 31, 2023 February 28, 2023 March 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 $208.14 $16,276.71 $14,920.43
. – Essex Property Trust, Inc. (Tranche #2) 77.7000 20,000 208.14 17,642.56 16,172.48
. – Essex Property Trust, Inc. (Tranche #3) 100.0000 22,221 208.14 22,706.00 20,814.00
. – Essex Property Trust, Inc. (Tranche #4) 180.0000 44,980 208.14 40,870.80 37,465.20
. Sub-Totals 429.3846 107,201 $97,496.07 $89,372.11
. – AvalonBay Communities 100.0000 16,586.22 167.06 $16,706.00
Entertainment
. – The Walt Disney Company (Tranche #1) 180.1801 20,000 $99.13 $17,767.56 $17,861.26
. – The Walt Disney Company (Tranche #2) 200.0000 21,200 99.13 19,722.00 19,826.00
. – The Walt Disney Company (Tranche #3) 198.0198 20,000 99.13 19,526.73 19,629.70
. Sub-Totals 578.1999 61,200 $57,016.29 $57,316.96
Banking
. – Wells Fargo (Tranche #1) 100.0000 4,267.50 36.38 $4,577.00 3,638.00
. – Wells Fargo (Tranche #2) 400.0000 15,804.00 36.38 14,552.00
. Sub-Total 500.0000 20,071.50 $18,190.00
Dividend Receivables (Essex/Avalonbay) 30.00 1,156.88
Cash on Hand (Basis, Gains, Dividends, PUTS) 1,105.67 756.28
Totals (Starting Cost Basis = $100,000) $205,058.72 $160,225.03 $183,498.23
Accrual adjustment for taxes 3,802.16 6,572.62
Totals Net of Taxes (Recapture) $164,027.19 $190,070.85
Margin Account (AvalonBay Purchase) (16,586.22)
This portfolio’s value is AFTER TAXES of 28% on all realized gains. Total taxes paid to date 28,323.59 35,150.98
Comparative Gross Return Since Inception $192,350.78 $208,635.61
Unrealized Earnings (Value of Respective Market Prices Less Cost Basis/Fees at Point of Sale) $(13,579.14) $(23,473.65)
*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
- Essex Property Trust – sold 03/17/23 (100 Shares) with a strike price of $200 and an expiration date of October 23, 2023 $20,100
- Huntington Ingalls – sold 03/17/23 (200 Shares) with a strike price of $185 and an expiration date of September 15, 2023 $37,200
*Total financial commitment = $176,800
Market prices on March 31, 2023 are:
- JP Morgan Chase (Expiration on 06/16/2023) $130.31 (Strike Price of $80.00) Current Deviation = 62.89%
- Essex Property Trust (Expiration 07/21/23) $209.14 (Strike Price of $170.00) Current Deviation = 23.02%
- Union Pacific (Expiration 08/18/23) $201.26 (Strike Price of $145.00) Current Deviation = 38.80%
- Huntington Ingalls (Expiration 09/15/23) $207.02 (Strike Price of $185.00) Current Deviation = 11.90%
- L3 Harris Technologies (Expiration 10/20/23) $196.24 (Strike Price of $150.00) Current Deviation = 30.82%
- Essex Property Trust (Expiration 10/23/23) $209.14 (Strike Price of $200.00) Current Deviation = 1.07%
- Marriott Hotels (Expiration 01/19/2024) $166.04 (Strike Price of $90.00) Current Deviation = 84.48%
- Norfolk Southern Corp (Expiration on 01/21/24) $212.00 (Strike Price of $145.00) Current Deviation = 46.20%
*Deviations > 25% are considered favorable.
Earnings realized during January/February/March 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
- Dividends of $2.31/Share for Essex Property Trust (429.3846 shares) = $991.88
- Dividends of $1.65/Share for Avalonbay (100 shares) = $165.00
- Gain on Sale of Comerica Bank = $20,412.00
- Sold PUT contract on Essex Property Trust $900
- Sold PUT contract on Huntington Ingalls = $940
1st Quarter Earnings Summary:
- Gains from Securities $20,412.00 *Comerica Bank
- Dividends 2,131.53
- Sale of PUT Option Contracts 1,840.00
Sub-Total 1st Quarter Earnings $24,383.53
© 2023, David J Hoare MSA. All rights reserved.
