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The Frankenstein Fund 4th Quarter And Year End Wrap 2015 Report: In Spite Of All The Ups And Downs I Had A Decent Year Anyway.

The Frankenstein Fund 4th Quarter 2015 And Year End Wrap Report: In Spite Of All The Ups And Downs I Had A Decent Year Anyway.


First of all, let me remind everyone (and you know who you are) that just because I do it, and it pays for my life, and you'd like to be me - is no reason for you too do it too.

Just sayin.

So what happened this quarter? Well I spent a lotta M-O-N-Y, but luckily I made a little more than I spent. Earlier in the year Darren McCammon suggested I start charting what I spent vs what I made so that there could be some empirical evidence that might suggest that you could actually live off this strategy.

Of course basic math still applies even in my universe, and in order for things to work out in your favor over the long haul you need to spend LESS than you make no matter how the funds are generated, so keep that in mind when you look at the charts below.

First the INCOME for December (the important part)

As you can see I actually had to do a little work there in December clicking my mouse to sell all those calls. Lucky for me I stocked up on BLUE-EMU. If it does not say "call premium" in the comment column it's a regular dividend.

Some familiar faces temporarily gone due to the tax loss harvest, and some new faces added this quarter to maintain the income stream while they are on vaycay... More on that later in the January positions update.

2015 By the MONTH:

Then 2015 Cumulative for the year:

2015: The In (blueish) vs the Out (redish):

Talk about Deficit Spending! Dave Ramsey would shake his head and throw up his hands.

Someone (Divs#1?) asked me in a comment on another blog post if I had/would reach my income goal for the year back in the fall sometime and I said no as my goal was $800K and I knew that 2015 was going to be a spendy one.

There were some non recurring expenditures last year like tuition for the #1 daughter & the 650S for me in January, paying down some non tax advantaged debt in March, the kitchen remo split between August and September etc, so I expect 2016 to be much less expensive on a "capital expenditure"basis. The Plan is to hold it down to the level of the 4th Quarter, or to the tune of about a -55% reduction in the OUT column.

On the IN side the 2016 projection (in my next post) looks to be coming in around the $900K+ ballpark so I'll be able to make a big dent in the margin balance by the elections as that is part of my Dave Ramseyish Resolution for the year. If we survive as a nation then maybe I'll bump it back up. If Hitlary gets in I'll pay it off to 75% equity..

But enough of that, what to buy next?

Well these are the relevant Xdates for increasing my income in January:

MORL: 1/9

MLPL: 1/9

BDCL: 1/9

ARR: 1/13

CLM: 1/13

So how do I make that decision?

  1. What's the projected 3 month yield when adjusted for my margin maintenance %?
  2. Can I sell calls against it to boost the yield?
  3. How much of it do I already have?
  4. When is the X date?
  5. Does DVL allegedly own it?

Sorted by actual cost out of pocket "adjusted yield" because I have a margin account using 12/31/2015 closing prices.

PLEASE NOTE: If you are using a non margin account your sort order WILL BE DIFFERENT and therefore your buying decisions might be different than mine. (DUH)


The Spread Dissected:

CLM: CLM is the winner by 0.01%, but I already have a ton.

OXLC: comes in 2nd but the Xdate is not until 3/14 so it's dead $ until then. Maybe I'll use the January & February divs from the other stocks to buy it.

WMC: I can sell calls against WMC, but the Xdate is not until ~4/1/2016 - lots of time to get more shares there. Technically speaking I know that the div is received in the 2nd quarter, but the call sales throw off a little coffee change in the current quarter.

ARR: Looks pretty good as I can sell calls on it too and I only have a few 1,000 shares. Hmmmm.

LNCO: I already have a boatload of this crap.

GMLP: The Xdate is not until ~2/3/2016 or so - and I have some, so I'll wait on that one.

MORL: Clearly I need more, why? well just because.

MLPL: I have enough for now, and the price is too high. Maybe when I get out of the LINE I'll put that $ into MLPL.

SLVO: Even though I want some exposure to PM, and silver is in the crapper, and I like to buy when that's the case, the yield is not that great compared to everything else.

GLDI: Same thoughts as SLVO.

BDCL: Dang it - why is this one so low on the list? I need to get that back in the mix anyway.

NMM: I need to get some more to get my non adjusted for call premiums cost basis just under $5.00. And I can sell OOTM calls for an extra "dividend". Maybe I'll do it before the February Xdate.

So where does that leave me? Lets ask the experts!

Too see how I actually allocate my "new" $ in 2016 you will just have to check in on the full portfolio spread updated after the first 2 weeks trading .......

Good luck to all in 2016.



Disclosure: I am/we are long MORL, BDCL, CEFL, MLPL, WMC, ARR, OXLC, NMM, CLM, LINE, LNCO, GMLP.

Additional disclosure: Since I didn't reach my income goal this year I raised it for next year. Do I have a Sisyphus complex or what? Mr. Market will be the Hangman Judge.