Volume I, Issue X "LAFSF & LGFX"

The [LAFSF] Fund

The L.A. Film Schooled Fund has been around for quite a while, it’s IPO was 10/7/2009. Since that time it has climbed to H$96.30 (H$76.30, 381.5%, 0.30%DROI). Over the past 30 days, the fund has grown from H$94.58 to H$96.30 (H$1.72, 1.82%, 0.06%DORI). The fund is currently 84.1% invested, not counting any assets tied up in the profits from shorting stocks. The fund’s assets are largely tied up in Movie Stocks (67.9%), although there is significant investment in Star Bonds as well (16.2%). A majority of the fund’s assets are invested in Large-Cap stocks, accounting for 56% of the fund’s total. The fund’s top 10 investments account for 67.2% of the worth of the fund and include 6 Movie Stocks and 4 Star Bonds.

The fund has positions on [GIJO2] and [CROOD], as well as [LONER] and [HNOV3], showing a large investment in movies that are either in Release, or being released in the coming months. Movies in ‘Release’ or ‘Production’ make up 82% of the assets the fund has invested in Movie Stocks. Combined with the investments in [TERM5] and [MALEF], the fund seems well positioned to propel past H$100 in the near future. The fund’s investments in development projects (H$6.15 million) should help the fund take advantage of any news on projects that have news announced.


                                                           
| Movie Stocks                                            |
| Name  |  Price  | Shares Held   |   Value   | % of Fund |
| LONER | $ 148.34| 100,000 Long  |$14,831,000|   15.36%  |
| GIJO2 | $ 125.21| 100,000 Short |$12,521,000|   12.96%  |
| CROOD | $ 124.49| 100,000 Long  |$12,449,000|   12.89%  |
| MALEF | $  73.64| 100,000 Long  |$ 7,364,000|    7.62%  |
| TERM5 | $  34.33| 100,000 Long  |$ 3,433,000|    3.55%  |
| HNOV3 | $ 160.10|  20,000 Long  |$ 3,202,000|    3.32%  |

                                                                       
| Star Bonds                                                          |
| Name  |  Price  | Shares Held  |   Value   | % of Fund | Next Adjust|
| GVERB | $ 172.17| 20,000 Short |$ 3,443,400|    3.56%  |   7/30/13  |
| BBIRD | $ 160.10| 20,000 Long  |$ 3,216,400|    3.33%  |   1/13/15  |
| JLIN  | $ 110.41| 20,000 Long  |$ 2,208,200|    2.29%  |   6/18/13  |
| TBRUT | $ 109.99| 20,000 Short |$ 2,199,800|    2.28%  |     N/A    |

                                                                   
|                         Fund Allocations                        |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
|  5.13% | 23.03%  | 55.98%  | 67.9% | 16.2% | 9.4|10.5|61.2| 19.0|


                     
| DROI  | Dlst Date |
| 0.06% |   5/27/13 |
| 0.10% |   5/02/13 |
| 0.15% |   4/20/13 |
| 0.20% |   4/13/13 |
| 0.25% |   4/10/13 |
| 0.30% |   4/07/13 |
| 0.40% |   4/04/13 |
| 0.50% |   4/02/13 |

The [LGFX] Fund

The Lionsgate Studio Fund has fallen slightly over the past 30 days, shriking from H$18.89 to H$18.69 (-H$0.20, -0.27%, -0.04%dROI). The fund only has 60.0% of its available assets invested in stocks, not accounting for any profits tied up in shorted movie stocks. The fund’s top 10 investments account for 50.5% of the fund’s assets. The fund has an unusually large amount of capital tied up in Small-Cap investments, they account for 32.4% of the funds worth. All told, 94% of the shares the fund has invested are invested in Small-Cap Movie Stocks.
 The Lionsgate Fund’s top 10 movie stocks show a strategy that involves shorting a lot of development projects. 57.1% of the value of the Movie Stocks held by the fund is in development projects, and those funds account for 65.5% of the shares invested in Movie Stocks. All of the remaining invested assets are in ‘Wrap’ stocks, accounting for 42.8% of invested funds. So far, this strategy has not paid large dividends, but it will be interesting to see what happens if Lionsgate starts announcing 2014 release dates, perhaps boosting many of the stock’s values.

The single largest investment the fund has currently is the 40,000 shares it holds in [DVRGN], which has had a lot of casting new lately. I would expect that as news on this project dies down, the fund might invest some of that money into projects releasing this summer, such as [NYSME] and [RED2]. I think the fund may be planning on using some of its assets to invest in [TMRGC] this weekend, but may be waiting to hear more news on the expected opening.


                                                           
| Movie Stocks                                            |
| Name  |  Price  | Shares Held   |   Value   | % of Fund |
| DVRGN | $ 59.98 |  40,000 Long  |$ 2,399,200|   12.77%  |
| DRAFT | $ 18.29 | 100,000 Long  |$ 1,829,000|    9.73%  |
| JESAB | $ 13.64 | 100,000 Long  |$ 1,364,000|    7.26%  |
| ALOST | $ 11.31 | 100,000 Short |$ 1,131,000|    6.02%  |
| ADCTD | $  9.33 | 100,000 Short |$   933,000|    4.97%  |
| LNLA2 | $  8.72 | 100,000 Short |$   872,000|    4.64%  |
| GAYDU | $  2.58 | 100,000 Short |$   258,000|    1.37%  |
| ISTAY | $  2.54 | 100,000 Long  |$   254,000|    1.35%  |
| YOURH | $  2.41 | 100,000 Short |$   241,000|    1.28%  |
| OSTER | $  2.21 | 100,000 Short |$   221,000|    1.18%  |

                                                                   
|                         Fund Allocations                        |
| Sm. Cap| Mid Cap | Lg. Cap | Movie | Bonds |DVLP|PROD|WRAP|RLSE |
| 32.43% |  23.65% |   0.00% | 56.1% |  N/A  |57.1|0.00|42.8| 00.0|

                   
| DROI  | Dlst $  |
| 0.04% | $ 20.16 |
| 0.10% | $ 22.58 |
| 0.20% | $ 27.27 |
| 0.35% | $ 36.17 |
| 0.50% | $ 47.97 |
| 0.65% | $ 63.59 |
| 0.80% | $ 84.27 |
| 1.00% | $122.56 |