Fund Watch
Volume I - Issue V
SPOOK & TRUE
The [SPOOK] Fund
The Horror Fund IPO'd on October 31st, and has experienced solid growth since. In the past 30 days the fund has increased from 51.16 to 58.67 (H$7.51, 14.7%, .49%DROI). The fund nearly doubled it's worth in January, growing from H$29.50 to H$47.73 (H$18.23, 61.8%, 1.99%DROI). January had 3 horror movies release back to back ([TXCM3] [AHAUH] [MAMA]), and the amount of product may have helped this fund grow more rapidly than would be otherwise feasible. TXCM3 doubled in price over it's the week leading to it's adjust in January, raising from H$30.90 on 1/2/13 to H$62.10 on 1/6/13. AHUAH also had a sizable weekend adjust, raising from H$31.01 on 1/6/13 to H$51.81 on 1/13/13. MAMA grew from H$31.39 on 1/6/13 to H$72.68 on 1/21/13. The huge movement during January on these three stocks can be seen as a likely contributor to the enormous growth of the fund during that month.During the past 30 days, on the other hand, we have had two disappointing debuts in the horror genre ([DRSKS] [LXOR2]). You can see a spike in growth for SPOOK when LXOR2 tanked at the beginning of March and when DRSKS did in late February, but due to the increased size of the fund and the relatively inexpensive stocks, the adjusts did not have the same impact as the giant adjusts in January.
Looking at the investments of the SPOOK fund, only 41% of the fund's allocations are identifiable. The rest of the fund's capital is either tied up in the profit of shorted stocks, or waiting to be invested. Of the funds invested, most of the the fund's resources are allocated in mid-cap movie stocks, with a heavy emphasis on movie's that are in the 'wrap' stage. The fund's top 10 investments currently consist of 8 Movie Stocks and 2 Star Bonds.
| Movie Stocks |
| Name | Price | #Shares | Value | % of Fund |
| EVILD | $ 53.02 | 100,000 Long |$ 5,302,000| 9.05% |
| HAUNS | $ 23.08 | 100,000 Long |$ 2,308,000| 3.94% |
| FRNKS | $ 21.96 | 100,000 Long |$ 2,196,000| 3.75% |
| IFRNK | $ 17.05 | 100,000 Long |$ 1,705,000| 2.91% |
| LXOR2 | $ 16.26 | 100,000 Short |$ 1,626,000| 2.78% |
| GBUMP | $ 13.31 | 100,000 Long |$ 1,331,000| 2.27% |
| TQONE | $ 9.07 | 100,000 Short |$ 907,000| 1.55% |
| TDRKN | $ 8.58 | 100,000 Short |$ 858,000| 1.46% |
| Star Bonds |
| Name | Price | # Shares | Value | % of Fund | Next Adj |
| LBIBB | $ 65.04 |20,000 Short|$1,300,800| 2.22% | N/A |
| THOLL | $ 35.48 |20,000 Short|$ 709,600| 1.21% | 9/17/13 |
| Fund Allocations |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 12.33% | 29.65% | 00.00% | 33.4% | 8.6% |27.7|11.8|52.7| 8.5 |
Looking at the investments, we can make a couple of initial assumptions. If we assume LXOR2 has been held short since the Saturday it halted, the stock would actually be worth 4.126 million, or 7.03% of the fund's assets. The remaining films included in the chart seem to be good investments. EVILD releases soon, and FRNKS & IFRNK have both had recent news, increasing their value. GBUMP has skyrocked in the past two days on news that the picture now has a director. TQONE and TDRKN have no had no news tagged to them, and have been trending downward steadily for a year.
The fund manager may have trouble growing the fund significantly in the immediate future to a lack of horror titles being released, but seems to be taking advantage of day trading opportunities to make up for this.
While the movies this fund is invested in make sense, I cannot say the same of the top two Star Bonds. LBIBB had her last adjust on 2/19, and does not seem to be attached to any movies with a release date. THOLL's next adjust isn't until September, and at current prices would only adjust down about H$3.00. I have to wonder if the capital invested in these Star Bonds could be allocated somewhere with a better DROI.
Overall, I think this is a very well managed fund that continues to provide solid growth to it's owners.
The [TRUE] Fund
The first thing that struck me about The History Fund is that it had not delisted in the past year. In the past six months the fund has only grown from H$69.46 to H$75.28 (H$5.82, 8.4%, .05%DROI). The past 30 days have been unkind to TRUE, the fund has fallen from H$75.46 to H$75.28 (-H$0.18, -0.24%, -.008% DROI).The most striking thing about The History Fund is the lack clarity on where the funds sizable assets are invested. Of the H$75.28 million the fund is worth, Movie Stocks and Star Bonds make up only H$10.2 million at current prices. The fund, alarmingly, holds a full 10,000 shares in itself, which would account for another H$750,000. The fund's top ten investments consist of 6 Movie Stocks and 4 Star Bonds, and are shown below.
| Movie Stocks |
| Name | Price | #Shares | Value | % of Fund |
| KHLME | $ 15.90 | 100,000 Short |$1,590,000 | 2.12% |
| JOBS | $ 15.71 | 100,000 Long |$1,571,000 | 2.11% |
| DSBEJ | $ 1.48 | 100,000 Short |$ 148,000 | 0.20% |
| GATKP | $ 1.34 | 100,000 Short |$ 134,000 | 0.18% |
| NO | $ 1.24 | 100,000 Short |$ 124,000 | 0.16% |
| RNCRN | $ 1.09 | 100,000 Short |$ 109,000 | 0.14% |
| Star Bonds |
| Name | Price | # Shares | Value | % of Fund | Next Adj |
| MBAY | $ 179.75 |20,000 Short|$3,595,000| 4.78% | 5/21/13 |
| HFORD | $ 56.07 |20,000 Short|$1,121,400| 1.49% | 5/07/13 |
| EDRAM | $ 53.12 |20,000 Short|$1,062,400| 1.41% | N/A |
| MDUPL | $ 17.48 |20,000 Long |$ 349,600| 0.46% | N/A |
| Fund Allocations |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 1.24% | 4.56% | 0.00% | 5.44% | 8.14% |2.31|0.00|85.4| 12.3|
To be honest, I'm not quite sure what to make of this fund's investments. Two of it's top 4 Star Bonds ([MDUPL] [EDRAM]) do not have any adjust scheduled, I believe they may be left over from ZDTHR. The other two are attached to movies that release next month ([PAING] [42]), but the fund does not hold any shares in either movie, despite their relative high profiles.
Currently, I cannot recommend investing in this fund, due to poor recent performance and apparent neglect.
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