The [WBROX] Fund
The Warner Brothers Studio Fund has not been able to make any significant gains in the last month, growing from H$11.02 to H$11.06 (H$0.04, 0.36%, 0.01%DROI). This fund has not been able to gain any real traction since it's IPO (H$1.06, 10.6%, 0.05%DROI). The fund currently has 97.6% of its fund invested, not counting excess profits tied up in shorted positions. The fund's top 10 investments represent 67.9% of the fund's value, and include only movies.
The top 10 investments for the fund demonstrate an investment strategy that leans heavily on movies in development. Only 1 of the 10 films (PRSNS) has a release date this year, and only one other (GODZL) has a release date next year. The other 8 films are all in development, although some of them have better odds than others. Warner Brothers has had a rough ride for the beginning of the year, films like [BURTW], [JACGK], [HDSHT], [TFGSQ] and [BTCRT] failing to meet analyst expectations. It is disappointing to see the the [WBROX] fund has not been able to take advantage of any of the fluctuations in price over the past few months.
| Movie Stocks |
| Name | Price | Shares Held | Value | % of Fund |
| RTECH | $ 17.24 | 75,000 Long |$ 1,293,000| 11.69& |
| CRMSP | $ 27.79 | 45,000 Long |$ 1,250,550| 11.31% |
| BLEND | $ 25.67 | 40,000 Long |$ 1,026,800| 9.28% |
| JURN3 | $ 30.33 | 25,000 Long |$ 758,250| 6.86% |
| GODZL | $ 74.21 | 10,000 Long |$ 742,100| 6.71% |
| TARZN | $ 18.86 | 35,000 Long |$ 660,100| 5.97% |
| WARCF | $ 27.69 | 20,000 Long |$ 553,800| 5.01% |
| LSOFH | $ 19.92 | 25,000 Long |$ 498,000| 4.50% |
| PRSNS | $ 24.71 | 15,000 Long |$ 370,650| 3.35% |
| JLEAG | $140.31 | 2,500 Long |$ 350,775| 3.17% |
| Fund Allocations |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 19.46% | 74.96% | 3.17% | 97.6% | N/A |86.4|11.6| 0.0| 0.0|
Hopefully, [WBROX] will find a way to take advantage of a strong Spring/Summer release schedule including [42], [GATSB], [HNVR3], [SUPR2] and [PACRM], although it will be challenging with so little capital to work with. One strategy may be to go 'All-in' (Long or Short) on [[42], knowing it will take about 1/2 of the fund to do so, hoping to see a significant ROI over the next couple weeks. Below is a chart showing the Delist price of the Fund with varying DROI, assuming a September 15th delist date. Right now I would estimate the delist price will be between H$14.00 and H$ 16.00.
| DROI | Delist Price |
| .05% | $ 12.07 |
| .10% | $ 13.17 |
| .20% | $ 15.69 |
| .30% | $ 18.68 |
| .40% | $ 22.24 |
| .50% | $ 26.47 |
| .75% | $ 40.89 |
|1.00% | $ 63.10 |
The [YOUNG] Fund
The Young Hollywood Fund has grown from H$65.31 to H$70.58 (H$5.27, 8.07%, 0.27%DROI) over the past 30 days. The fund currently only has 22.1% of it's funds invested, holding just 7 positions with more than 1 share. That leaves approimately H50 million un-invested at the moment, possibly to take a position on [HOST1] later this week. Looking at the growth of the fund since IPO (H$50.58, 252.9%, .89%DROI) it's clear the fund manager does not usually let this much capital sit idle, so I believe its safe to assume the manager is waiting for more information about the opening of the host before investing the remaining capital of the fund (or at least a large chunk of it) into [HOST1] this weekend.
The fund's current investments consist of 4 Movie Stocks and 3 Star Bonds. One Star Bond, [CBRIG], does not have any upcoming movies listed, but will drop [XMEN3] for whatever is announced, so it remains a safe bet he will fall in value. 1 Movie is in 'Release' currently ([GROSA]), and two are in 'Wrap' ([LVNHN], [HANTR]), and the fund is holding all three short. The other movie stock, [DVRGN], is in development and has a set release date for next year.
| Movie Stocks |
| Name | Price | Shares Held | Value | % of Fund |
| DVRGN |$ 59.98 | 100,000 Long |$ 5,998,000| 8.48% |
| HANTR |$ 5.85 | 100,000 Short |$ 585,000| 0.83% |
| GROSA |$ 2.93 | 100,000 Short |$ 293,000| 0.41% |
| LVNHN |$ 0.15 | 100,000 Short |$ 15,000| 0.02% |
| Star Bonds |
| Name | Price | Shares Held | Value | % of Fund | Next Adjust|
| CBRIG |$ 189.60 | 20,000 Short |$ 3,792,000| 5.36% | N/A |
| EMWAT |$ 153.34 | 20,000 Short |$ 3,066,800| 4.34% | 7/09/13 |
| JHUTC |$ 94.09 | 20,000 Long |$ 1,881,800| 2.66% | 6/18/13 |
| Fund Allocations |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 1.26% | 11.15% | 9.70% | 9.8% | 12.4% |87.0|0.00| 8.7| 4.3|
I recommend waiting until later in the week to see how the fund is invested in order to get a better picture of what the funds short term outlook is. Below is a chart showing when the fund would delist based on certain DROI. I would be surprised if the fund had not delisted before June.
| DROI | Delist Date|
| .25% | 8/11/13 |
| .40% | 6/20/13 |
| .50% | 6/02/13 |
| .60% | 5/22/13 |
| .75% | 5/10/13 |
| .89% | 5/03/13 |
|1.00% | 4/29/13 |
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