Volume I, Issue III "COMIC & AUSIE"

First Look at the COMIC & AUSIE...

For an explanation of what this column is all about, click here.

The [COMIC] Fund

The biggest news on the Comic Fund this week is that the fund is under new management. After reviewing the current investments, I feel the fund manager has a very clear strategy in place. The previous month for the Comic Fund saw it lose $0.78 (-1.46%).

Currently, the top ten investments for the COMIC fund are split between 5 Movie Stocks and 5 Star bonds. The top 10 investments represent  approximately 63% of the fund's assets.
                                                           
| Movie Stocks                                            |
| Name  |   Price  |     #Shares  |   Value   | % of Fund |
| ANTMN | $  70.20 | 100,000 Long |$7,020,000 |  13.30%   |
| RED2  | $  68.27 | 100,000 Long |$6,827,000 |  12.93%   |
| SINC2 | $  72.40 |  50,001 Long |$3,620,072 |   6.86%   |
| 2GUNS | $  52.38 |  50,001 Long |$2,619,052 |   4.96%   |
| RIPD  | $  48.65 |  50,001 Long |$2,432,500 |   4.61%   |

                                                                   
| Star Bonds                                                      |
| Name  |   Price  | # Shares   | Value    | % of Fund | Next Adj |
| GPLAT | $ 149.66 | 20,000 Long|$2,993,200|    5.67%  | 5/29/2013|
| SSKAR | $ 112.63 | 20,000 Long|$2,252,600|    4.27%  | 5/29/2013|
| DCHEA | $ 107.67 | 20,000 Long|$2,153,400|    4.08%  | 5/29/2013|
| JFAVR | $  86.14 | 20,000 Long|$1,722,800|    3.26%  | 5/29/2013|
| BKING | $  82.14 | 20,000 Long|$1,642,800|    3.11%  | 5/29/2013|

Note: Clicking on any of the adjust dates will take you to that Star Bond page at howprofitable.com to see upcoming adjusts.

                                                                   
|                         Fund Allocations                        |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 9.42%  |  76.6%  |  14.01% | 51.9% | 48.3% |42% |13% |44% |  0% |


The most striking thing about the allocation of funds among movie stocks, is that all five stocks have a release date set. The strategy appears to rely on these securities rising in value as their release date approaches, and a quick glance shows that most of them are likely undervalued. The fund seems well positioned and looks to be trying to take advantage of the Bond adjusts for IRNM3. This seems like a good strategy, as all of these bonds will adjust way, way up.

You can see from the third chart, the fund is almost evenly split between Bonds and Movie Stocks. The fund is heavily invested in Mid-Cap sized Movie Stocks ($15<  x  < $100), which have good room for growth. An almost equal amount of the fund is divided between Development projects and projects that are in 'Wrap.'

The fund has chosen not to invest heavily into IRNM3, which is likely a good strategy as there does not appear to be much room for growth from the $330/share price tag.

The [AUSIE] Fund

The Down Under Fund is most heavily invested in block buster films. Over the last month, the fund has grown $2.21 (4.19%). Currently the top ten investments are split with 7 Movie Stocks and 3 Star Bonds. The fund has 30,000 shares of [OLYHF], releasing this weekend, betting on it long as of this writing. Interestingly, the fund is not currently invested in any of the derivatives for the film. The top 10 Investments represent 43% of the fund's assets.

                                                           
| Movie Stocks                                            |
| Name  |   Price  |     #Shares  |   Value   | % of Fund |
| HGAM2 | $ 351.92 |  10,000 Long |$3,519,200 |   6.40%   |
| HGAM3 | $ 291.47 |  10,000 Long |$2,914,700 |   5.30%   |
| HGAM4 | $ 271.24 |  10,000 Long |$2,712,400 |   4.93%   |
| XMEN5 | $ 201.21 |  10,000 Long |$2,012,100 |   3.66%   |
| APES2 | $ 131.65 |  15,000 Long |$1,974,750 |   3.59%   |
| OLYHF | $  58.59 |  30,000 Long |$1,757,700 |   3.20%   |
| WOLV2 | $ 168.54 |  10,000 Long |$1,685,400 |   3.07%   |

                                                                   
| Star Bonds                                                      |
| Name  |   Price  | # Shares   | Value    | % of Fund | Next Adj |
| CHEMS | $ 136.52 | 20,000 Long|$2,730,400|    4.97%  | 10/15/13 |
| LHEMS | $ 117.61 | 20,000 Long|$2,352,200|    4.28%  |  6/11/13 |
| GRUSH | $ 107.18 | 20,000 Long|$2,143,600|    3.90%  |  2/11/14 |

                                                                   
|                         Fund Allocations                        |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 3.40%  |  38.4%  |  53.9%  | 56.9% | 38.8% |44% |15% |41% |  0% |

Looking at the investments of the AUSIE fund, I'm a little concerned. On the one hand, almost all of the movie stock investments are 'sure things.' These stock's value will rise over time, however, it may be a slow rise. 

On the other hand, quite a lot of this fund is tied up in very expensive stocks that do not release for a very long time. More troubling, the three most expensive star bonds the fund holds are all being held Long, despite the fact that all three will most likely adjust down for their next movies.

Looking at the allocations of the fund, a majority of it's assets reside in large cap projects, with almost nothing invested in small cap projects. This means the fund is less likely to 'hit it big' with a development project going into production.

If [OLYHF] can open large this weekend, it has the potential to positively impact the AUSIE Fund,  but I would like to see more variety in investements that will tie up the bulk of the fund's assets.