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 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 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.
