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[FOXX] Fox Studio Fund week 11 report.
Price History Chart (courtesy KaiGee)
As usual we start with the numbers: The fund was up 12% on the week and around 44% for the month so far with an increase in port size since IPO of more than 370%. The weekly increase in our earnings per share of $4.89 was comfortably ahead of our $3.00 per week target.
Unlike those funds whose investment criteria are broad enough to invest in just about anything (the ones that have cleaned up on the recent failures of ‘The Hunger Games: Mockingjay’ and ‘The Good Dinosaur’), including the StarBond cash cow, our fund is restricted to investing in a very narrow range of movie projects and their derivatives. In the circumstances we can be very proud of our consistent performance.
This past week’s activity has primarily revolved around a couple of breakout stocks, ‘Taking Flight aka Barefoot Bandit’ (BRFTB) which benefitted to the upside after Fox made a significant restitution payment in lieu of movie rights, advancing the Robert Zemeckis project significantly. The other breakout was to the downside after Fox announced the removal of ‘Fantastic Four 2’ (FANF2) from the schedules. There is now a strong likelihood that this particular iteration will not be proceeded with, I hesitate to use the ‘C’ word at this juncture but suffice to say we will continue to exploit the uncertainty. ‘Brooklyn’ (BKLYN) continues to garner stellar reviews and our ‘long’ position paid off significantly as it expanded wide into the Thanksgiving weekend. We did flip briefly after irrational exuberance took the stock above our target range but I fully intend to get back in again after the adjust. ‘Victor Frankenstein’ (FRNKS), the other stock that we had opening wide, has been a significant earner for us. As I indicated in last week’s report we would be shorting this abomination and we have continued to hold it into the adjust. We will also benefit into next week having shorted the derivatives. Two other ‘shorts’ worthy of mention are ‘Alvin and the Chipmunks: The Road Chip’ (ALVN4), which failed to receive a bump after a lamentable trailer and probably has further downward momentum before it opens on Dec 18th and ‘Shadows’ (MSHDW),which will likely drift lower in the absence of any further developments.
This coming week sees the limited release of ‘Youth’ (LGIOV) in limited release. This will be a watching brief as, despite its star-studded cast, I don’t see it having a lot of traction. As ever we’ll be watching the news and acting accordingly and day trading effectively.
Happy hunting,
hyper
Tag(s): FOXX
