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The Frankenstein Fund - The End Of The Beginning

End of Q2, start of Q3 income Portfolio updates:

June 30, 2015

As you can see here, I was fiddling around all quarter, and in the last 2 weeks, added:

06/22/2015 YOU BOUGHT
  OXLC OXFORD LANE CAP CORP
Margin Shares: +5,000.000 Price: $14.65 Amount: -$73,250.00
 
  Settlement Date: 06/25/2015
06/22/2015 YOU BOUGHT
  OXLC OXFORD LANE CAP CORP
Margin Shares: +5,000.000 Price: $14.70 Amount: -$73,500.00
 
  Settlement Date: 06/25/2015
06/17/2015 YOU BOUGHT
  MORL UBS AG LONDON BRH ETRACS MONTHLY PAY 2X
Margin Shares: +2,000.000 Price: $17.99 Amount: -$35,980.00
 
  Settlement Date: 06/22/2015

of course as it turns out I was a bit PREMATURE, missing out on the bargains we have before us this week. Below is the current mix:

You will note that the projected annual income for the 12 months starting July 2015 to June 2016 has increased +$58,247.29 from $650,174.62 at the beginning of June to $708,421.91 at the end. Marvelous.

End of June NAV at (6/30/2015) closing: $3,766,930.00

Due to the recent market price decline, Nav however has just increased a little even with all that buying, from $3,718,938.00 to $3,766,930.00, and the net paper loss from cost basis has increased to -$241,320 (-6.02%)

It was not a bad month for dividends booked though:

June    
     
KBS 6/2/2015 $497.70
LNCO 6/18/2015 $5,210.00
CEFL 6/22/2015 $14,148.00
MORL 6/22/2015 $5,133.10
SLVO 6/25/2015 $5,832.00
OXLC 6/30/2015 $15,000.00
     
monthly total:   $45,820.80

Bringing the first 2 quarters running total to $197,901.03.

Since I've blown through my 10% "equity safety cushion" through the combination of buying too many additional shares and the recent negative price action, (my cushion is down to 1.35%) I can't take advantage of the all the bargains surrounding me.

BUMMER.

You might though.

To be continued next month.......

Q: Hey, your paper loss above is higher than your divs received - WTF? I thought you did this to make money?

A: The paper loss is from "inception" or when I started the transition from "trading" to buying ever increasing positions of INCOME shares. The divs running total is just the first 6 months of the year. See this link.

Disclosure: I am/we are long MORL, BDCL, CEFL, WMC, SLVO, OXLC.

Additional disclosure: BUY! BUY! BUY!