N-Q 1 fp0047656_nq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT

INVESTMENT COMPANY

 

Investment Company Act File Number 811-22888

 

Wildermuth Endowment Fund

(Exact name of Registrant as specified in charter)

 

818 A1A Hwy, Suite 301

Ponte Vedra Beach, Florida 32082

(Address of principal executive offices) (Zip code)

 

Daniel Wildermuth

Wildermuth Advisory, LLC

818 A1A Hwy, Suite 301

Ponte Vedra Beach, Florida 32082

(Name and address of agent for service)

 

Registrant's telephone number, including area code: (888) 889-8981

 

Date of fiscal year end: December 31

 

Date of reporting period: September 30, 2019

 

 

 

FORM N-Q

 

Item 1. Schedule of Investments.

 

Wildermuth Endowment Fund

Schedule of Investments

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     COMMON STOCKS — 13.9%     
     ADVERTISING — 0.2%     
 47,413   National CineMedia, Inc.    $388,787 
           
     APPAREL — 0.2%     
 538   Kering     274,220 
           
     BANKS — 0.3%        
 3,970   Bank of New York Mellon Corp.     179,484 
 57,471   Mitsubishi UFJ Financial Group, Inc., ADR     291,952 
         471,436 
     BEVERAGES — 0.6%     
 11,939   Molson Coors Brewing Co. - Class B     686,492 
 1,938   Pernod Ricard SA     345,219 
         1,031,711 
     BIOTECHNOLOGY — 0.5%     
 1,043   CSL Ltd.     164,388 
 2,270   Regeneron Pharmaceuticals, Inc.(a)     629,698 
         794,086 
     BUILDING MATERIALS — 0.5%     
 15,837   CRH PLC, ADR     544,159 
 4,422   LafargeHolcim, Ltd.(a)   217,819 
         761,978 
     CHEMICALS — 0.2%     
 700   FMC Corp.     61,376 
 1,730   PPG Industries, Inc.     205,022 
         266,398 
     COMMERCIAL SERVICES — 0.6%     
 15,046   McMillan Shakespeare, Ltd.     165,813 
 2,657   S&P Global, Inc.     650,912 
 977   Wirecard AG     156,301 
         973,026 
     COSMETICS/PERSONAL CARE — 0.7%     
 9,240   Procter & Gamble Co.     1,149,271 
           
     DISTRIBUTION/WHOLESALE — 0.4%     
 27,674   Inchcape PLC     215,356 
 15,593   Triton International, Ltd.     527,667 
         743,023 
     DIVERSIFIED FINANCIAL SERVICES — 0.5%     
 7,985   LPL Financial Holdings, Inc.     653,972 
 46,619   Mitsubishi UFJ Lease & Finance Co., Ltd.     269,167 
         923,139 

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     COMMON STOCKS (CONTINUED)     
     ELECTRIC — 0.3%     
 15,000   Clearway Energy, Inc. - Class A    $260,100 
 14,300   Clearway Energy, Inc. - Class C     260,975 
         521,075 
     ELECTRONICS — 0.0%     
 3,860   nVent Electric PLC     85,074 
           
     ENERGY-ALTERNATE SOURCES — 0.3%     
 11,025   Siemens Gamesa Renewable Energy SA     149,636 
 27,642   TransAlta Renewables, Inc.     284,562 
         434,198 
     ENGINEERING & CONSTRUCTION — 0.1%     
 9,400   HomeServe PLC     137,380 
           
     FOOD — 0.7%        
 14,933   Huon Aquaculture Group, Ltd.     47,336 
 975   JM Smucker Co.     107,269 
 4,030   Mondelez International, Inc. - Class A     222,940 
 7,920   Sysco Corp.     628,848 
 1,150   TreeHouse Foods, Inc.(a)     63,768 
 1,066   Tyson Foods, Inc. - Class A     91,825 
         1,161,986 
     HEALTHCARE-PRODUCTS — 0.4%     
 15,516   Boston Scientific Corp.(a)     631,346 
           
     HEALTHCARE-SERVICES — 0.6%     
 14,479   Centene Corp.(a)     626,362 
 3,380   Fresenius SE & Co. KGaA     158,056 
 3,839   Ramsay Health Care Ltd.     167,961 
         952,379 
     HOLDING COMPANIES-DIVERSIFIED — 0.1%     
 14,694   Washington H Soul Pattinson & Co., Ltd.     208,414 
           
     HOME FURNISHINGS — 0.2%     
 5,930   Sony Corp. - ADR     350,641 
           
     INTERNET — 0.8%     
 546   Alphabet, Inc. - Class A(a)     666,742 
 3,536   Facebook, Inc. - Class A(a)     629,691 
         1,296,433 
     LODGING — 0.4%     
 46,483   Extended Stay America, Inc.     680,511 

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     COMMON STOCKS (CONTINUED)     
     MACHINERY-CONSTRUCTION & MINING — 0.3%     
 8,224   ABB, Ltd.    $161,726 
 22,255   Mitsubishi Electric Corp.     294,983 
         456,709 
     MACHINERY-DIVERSIFIED — 0.5%     
 1,025   AGCO Corp.     77,593 
 4,157   Cummins, Inc.     676,219 
 394   Deere & Co.     66,460 
         820,272 
     MEDIA — 0.2%        
 11,538   NTT DOCOMO, Inc.     293,908 
           
     MINING — 0.2%     
 29,500   Endeavour Silver Corp.(a)     65,490 
 1,075   Rio Tinto PLC, ADR     55,997 
 2,810   Teck Resources Ltd.     45,606 
 39,053   Yamana Gold, Inc.     124,189 
         291,282 
     MISCELLANEOUS MANUFACTURING — 0.1%     
 17,040   General Electric Co.     152,338 
           
     OIL & GAS — 0.2%     
 1,490   Ecopetrol S.A., ADR     25,374 
 68,500   QEP Resources, Inc.     253,450 
 475   Royal Dutch Shell PLC, Class A, ADR     27,954 
         306,778 
     PHARMACEUTICALS — 0.7%     
 6,220   Dechra Pharmaceuticals PLC     212,162 
 4,082   Johnson & Johnson     528,129 
 3,200   Novartis AG, ADR     278,080 
 2,491   UCB SA     180,858 
         1,199,229 
     PIPELINES — 0.5%     
 1,314   Buckeye Partners LP     53,992 
 2,000   CNX Midstream Partners LP     28,200 
 10,220   Enable Midstream Partners LP     122,947 
 13,850   Enbridge, Inc.     485,858 
 1,220   Enterprise Products Partners LP     34,868 
 1,716   Genesis Energy LP     36,842 
 888   Phillips 66 Partners LP     50,279 
         812,986 
     REAL ESTATE — 0.1%     
 2,000   Atenor     162,651 

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     COMMON STOCKS (CONTINUED)     
     REITS — 0.2%        
 41,123   VEREIT, Inc. - REIT    $402,183 
           
     RETAIL — 0.5%     
 12,212   Walgreens Boots Alliance, Inc.     675,446 
 7,520   Wendy's Co.     150,249 
         825,695 
     SEMICONDUCTORS — 1.6%     
 2,363   Broadcom, Ltd.     652,354 
 7,946   Intel Corp.     409,457 
 2,716   NXP Semiconductors NV     296,370 
 8,840   Qorvo, Inc.(a)     655,398 
 32,990   Xperi Corp.     682,233 
         2,695,812 
     SOFTWARE — 0.2%     
 11,262   ICT Group NV     160,833 
 1,380   SAP SE     162,296 
         323,129 
           
     TOTAL COMMON STOCKS (Cost $22,591,473)     22,979,484 
           
     EXCHANGE TRADED FUNDS — 7.6%     
     DEBT FUNDS — 0.4%     
 15,720   Invesco International Corporate Bond     411,864 
 1,618   iShares iBoxx High Yield Corporate Bond     141,041 
         552,905 
     EQUITY FUNDS — 7.2%     
 44,389   Emerging Markets Internet and Ecommerce(a)     1,384,937 
 37,354   iShares MSCI Brazil     1,573,724 
 36,530   iShares MSCI India     1,226,312 
 28,850   iShares MSCI Indonesia     705,960 
 34,400   iShares MSCI Malaysia     958,040 
 36,756   iShares MSCI Taiwan     1,336,448 
 16,770   SPDR S&P China     1,513,660 
 51,512   VanEck Vectors Russia     1,174,989 
 29,000   WisdomTree Trust WisdomTree China ex-State-Owned Enterprises Fund     2,072,920 
         11,946,990 
           
     TOTAL EXCHANGE TRADED FUNDS (Cost $12,840,050)     12,499,895 
           
     COMMODITY & NATURAL RESOURCE INVESTMENTS — 4.5%     
    Casillas Petroleum Resource Partners, LLC(b)(c)(d)(e)(f)     1,636,309 
    CM Funding, LLC(b)(c)(d)(e)(f)(g)     1,876,034 
    Kayne Anderson Energy Fund VII LP(b)(d)(e)     1,925,913 

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     COMMODITY & NATURAL RESOURCE INVESTMENTS (CONTINUED)     
    Thunder Investment Partners, LLC(b)(c)(d)(e)(f)(g)    $2,080,000 
     TOTAL COMMODITY & NATURAL RESOURCE INVESTMENTS (Cost $6,610,940)     7,518,256 
           
     DIRECT REAL ESTATE — 6.0%     
    Brookwood SFL Investor Co-Investment Vehicle, LLC(b)(e)(g)     1,545,992 
 1,800,000   LaGrange Senior Living, LLC(b)(c)(e)(f)(g)     1,800,000 
    Polara Builder II, LLC(b)(c)(e)(f)(g)     5,063,402 
    RS17 Rexburg Preferred LLC(b)(c)(e)(f)     1,584,895 
     TOTAL DIRECT REAL ESTATE (Cost $8,568,629)     9,994,289 
           
     HEDGE FUNDS — 4.4%     
    Altegris Millennium Fund LP(b)(e)(h)     1,052,118 
    Condire Resource Partners LP(b)(e)(h)     211,979 
    CRC Bond Opportunity Trading Fund LP(b)(e)(h)     2,612,395 
    EJF Trust Preferred Fund LP(b)(e)(h)     816,623 
    Rosebrook Opportunities Fund LP(b)(e)(g)(h)     1,761,375 
    Tides Capital Gamma LP(b)(e)(g)(h)     770,833 
     TOTAL HEDGE FUNDS (Cost $7,011,081)     7,225,323 
           
     PRIVATE EQUITY — 35.7%     
    Abbott Secondary Opportunities LP(b)(e)(h)     1,281,967 
 159   Atlas Fintech Holdings Corp.(b)(c)(d)(e)(f)     1,828,500 
    Auda Capital SCS SICAV SIF - Auda Asia Secondary Fund(b)(e)(h)     2,013,971 
 2,500   Clear Guide Medical, Inc. - Series A Preferred Stock(b)(c)(d)(e)(f)(g)     3,802,700 
 134,898   Clear Guide Medical, Inc. - Series A-2 Preferred Stock(b)(c)(d)(e)(f)(g)     724,389 
 634,619   Clear Guide Medical, Inc. - Series A-3 Preferred Stock(b)(c)(d)(e)(f)(g)     3,217,518 
 778,361   Clearsense, LLC - Class C Preferred Shares(b)(c)(d)(e)(f)(g)     3,430,005 
    Committed Advisors Secondary Fund III(b)(e)(h)     1,622,410 
 3,050,774   DSI Digital, LLC - Series A Convertible Preferred Units(b)(c)(d)(e)(f)(g)     11,584,614 
    EJF Sidecar Fund, Series LLC - Small Financial Equities Series(b)(e)(h)     1,097,054 
 6,785,282   GigaPro, Inc.(b)(c)(d)(e)(f)     6,424,034 
 10   GPB Automotive Portfolio LP(b)(c)(e)(f)(h)     457,314 
    Gravity Ranch Fund I LP(b)(c)(e)(f)(h)     474,717 
    Greenspring Opportunities V, LP(b)(e)(h)     512,124 
    Level ATI HoldCo, LLC - Class A(b)(c)(d)(e)(f)(g)     2,894,496 
    Madryn Health Partners LP(b)(e)(h)     1,484,915 
 3,500,000   Metro Diner, LLC - Series B Units(b)(c)(d)(e)(f)     2,870,000 
 1,880,968   Metro Diner, LLC - Series II Common Units(b)(c)(d)(e)(f)     2,821,452 
    PineBridge Secondary Partners IV SLP(b)(e)(h)     1,145,022 
    Star Mountain Diversified Credit Income Fund III LP(b)(e)(h)     1,072,757 
    Star Mountain Diversified Small Business Access Fund II LP(b)(e)(h)     1,014,510 
 412,968   Tout, Inc. - New Preferred Shares(b)(c)(d)(e)(f)(g)     412,968 
 635,838   Waratek, Ltd. - Series B-1(b)(c)(d)(e)(f)(g)     2,828,103 

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     PRIVATE EQUITY (CONTINUED)     
 756,826   Waratek, Ltd. - Series B-2(b)(c)(d)(e)(f)(g)    $3,622,006 
    WG Pitts Caribbean, LLC(b)(c)(d)(e)(f)(g)     426,036 
     TOTAL PRIVATE EQUITY (Cost $45,078,805)     59,063,582 
           
     PRIVATE EQUITY DEBT — 8.0%     
$1,500,000   Atlas Fintech Holdings Corp. - Convertible Note, 8.00%, 6/20/2020(b)(c)(d)(e)(f)   1,500,000 
 906,326   GigaPro, Inc. - Secured Note, 8.00%, 8/7/2021(b)(c)(d)(e)(f)     906,326 
 1,111,111   Schweizer - RSG, LLC - Promissory Note, 12.09%, 1/22/2021(b)(c)(e)(f)     1,111,111 
 1,000,000   Sequin, Inc. - Convertible Note, 8.00%, 6/28/2022(b)(c)(d)(e)(f)     1,000,000 
 896,357   Tout, Inc. - Promissory Note, 8.00%, 8/7/2024(b)(c)(d)(e)(f)     896,357 
 4,763,592   Tout, Inc. - Promissory Note, 12.00%, 8/7/2024(b)(c)(d)(e)(f)     4,763,592 
 1,500,000   Waratek Ltd. - Promissory Note, 12.00%, 3/25/2021(b)(c)(d)(e)(f)     1,500,000 
 2,000,000   WG Pitts Caribbean, LLC - Promissory Note, 10.00%, 10/12/2020(b)(c)(d)(e)(f)     1,573,960 
     TOTAL PRIVATE EQUITY DEBT (Cost $10,299,338)     13,251,346 
           
     PRIVATE REAL ESTATE INVESTMENTS — 10.4%     
 95,075   ARCTRUST, Inc.(b)(c)(e)(f)     1,361,478 
 2,000,000   Broadstone Net Lease, Inc.(b)(e)(h)     2,000,000 
 1,847,055   Carlyle Europe Realty Fund, S.C.Sp.(b)(e)(h)     1,813,290 
 157,812   Cottonwood Residential II, Inc.(b)(c)(e)(f)(h)     3,056,818 
 101,470   Cottonwood Residential, Inc.(b)(c)(e)(f)(h)     10,147 
    Cygnus Property Fund V, LLC(b)(e)(g)(h)     1,800,887 
    Harbert Seniors Housing Fund I LP(b)(e)(h)     1,417,581 
    Harbert Seniors Housing Fund II LP(b)(e)(h)     366,551 
    PCG Select Series I LLC - Series A Preferred Stock(b)(e)(h)     621,555 
 683   PRISA III Fund LP(b)(e)(h)     1,249,957 
    RRA Credit Opportunity Fund LP(b)(e)(g)(h)     1,700,864 
 56   Shopoff Land Fund III LP(b)(e)(h)     33,053 
 753,858   Stonehill Strategic Hotel Credit Opportunity Fund II LP(b)(d)(e)     1,005,789 
    Walton Street Real Estate Fund VIII LP(b)(d)(e)     694,495 
     TOTAL PRIVATE REAL ESTATE INVESTMENTS (Cost $16,374,646)     17,132,465 
           
     PUBLIC REAL ESTATE INVESTMENTS — 0.3%     
 136,771   Highlands REIT, Inc.(b)(d)(e)     47,870 
 153,283   Inventrust Properties Corp.(b)(d)(e)     481,308 
 3,330   Phillips Edison Grocery Center(b)(c)(e)(f)     36,961 
     TOTAL PUBLIC REAL ESTATE INVESTMENTS (Cost $407,014)     566,139 
           
     REAL ESTATE LOANS — 4.6%     
$1,887,571   Airport Center Development Partners, LLC, 10.50%, 4/5/2020(b)(c)(e)(f)     1,887,571 
 400,000   Dog Wood Park of Northeast Florida, LLC, 9.50%, 11/9/2019(b)(c)(e)(f)(i)     400,000 

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

Shares,
Principal
Amount,
or Units
      Value 
     REAL ESTATE LOANS (CONTINUED)     
 1,741,602   GT Operating Company, Inc., 10.50%, 12/4/2020(b)(c)(e)(f)(i)    $1,741,602 
 400,000   Hauiki Hui, LLC, 9.50%, 1/1/2020(b)(c)(e)(f)     400,000 
 683,002   Park City (PCG), 10.50%, 12/12/2019(b)(c)(e)(f)     683,002 
 500,000   Saratoga Springs Partners, LLC, 9.50%, 1/1/2020(b)(c)(e)(f)(i)     500,000 
 2,000,000   Westgate at Powers, LLC, 10.50%, 12/21/2019(b)(c)(e)(f)     2,000,000 
     TOTAL REAL ESTATE LOANS (Cost $7,274,764)     7,612,175 
           
     WARRANTS — 0.7%     
 100   Atlas Fintech Holdings Corp., Excercise Price $13,000, Expiration Date,12/31/2021(a)(b)(c)(d)(e)(f)   253,805 
 44   Atlas Fintech Holdings Corp., Excercise Price $14,950, Expiration Date,12/31/2022(a)(b)(c)(d)(e)(f)   85,751 
 1,442   Schweizer RSG, LLC, Excercise Price $112.50, Expiration Date,1/22/2028(a)(b)(c)(e)(f)(g)   15,270 
 388,869   Waratek, Ltd., Excercise Price 0.01 Euro, Expiration Date,1/22/2028(b)(c)(d)(e)(f)(g)   821,573 
     TOTAL WARRANTS (Cost $0)     1,176,399 
           
     SHORT-TERM INVESTMENTS — 1.8%     
 2,932,824   Fidelity Institutional Government Portfolio - Institutional Class, 1.86%(j)     2,932,824 
     TOTAL SHORT-TERM INVESTMENTS (Cost $2,932,824)     2,932,824 
           
     TOTAL INVESTMENTS — 97.9% (Cost $139,989,564)     161,952,177 
     Other assets less liabilities — 2.1%     3,446,496 
           
     TOTAL NET ASSETS — 100.0%    $165,398,673 

 

ADR – American Depository Receipt
LLC – Limited Liability Company
LP – Limited Partnership
PLC – Public Limited Company
REIT – Real Estate Investment Trusts
SLP – Special Limited Partnership

 

 

Wildermuth Endowment Fund

Schedule of Investments - Continued

September 30, 2019 (Unaudited)

 

 

(a) Non-income producing.
   
(b) Illiquid Security. As of September 30, 2019 these securities amounted to $123,539,974 representing 74.69% of total net assets.
   
(c) Level 3 security in accordance with fair value hierarchy.
   
(d) Private Investment Company. As of September 30, 2019 these securities amounted to $69,935,903 representing 42.28% of total net assets.
   
(e) Restricted Security. As of September 30, 2019 these securities amounted to $123,539,974 representing 74.69% of total net assets. Please refer to the Notes to the Schedule of Investments, subsection Investments in Restricted Securities.
   
(f) Security fair valued using method determined in good faith by the Fair Value Committee designated by the Board of Trustees. As of September 30, 2019 these securities amounted to $88,364,816 representing 53.43% of total net assets.
   
(g) Denotes an investment in an affiliated entity. Please refer to the Notes to the Schedule of Investments, subsection Investments in Affiliated Issuers.
   
(h) Private Fund. As of September 30, 2019 these securities amounted to $33,472,787 representing 20.24% of total net assets.
   
(i) Security is in default.
   
(j) Represents the current rate as of September 30, 2019.

 

See accompanying notes to Schedule of Investments.

 

 

Wildermuth Endowment Fund

 

Notes to the Schedule of Investments

September 30, 2019 (Unaudited)

 

 

Organization - Wildermuth Endowment Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, closed-end management investment company that is operated as an interval fund. The Fund was organized as a Delaware statutory trust on August 28, 2013, and did not have any operations from that date until December 31, 2014, other than those relating to organizational matters and registration of its shares under applicable securities law. The Fund commenced operations on January 2, 2015. The Fund’s investment objective is to seek total return through a combination of long-term capital appreciation and income generation. The Fund will pursue its objective by investing in assets that Wildermuth Advisory, LLC (the “Adviser”) believes provide favorable long-term capital appreciation and risk-adjusted return potential, as well as in income-producing assets that the Adviser believes will provide consistent income generation and liquidity.

 

The Fund is engaged in a continuous offering, up to a maximum of 25 million shares of beneficial interest, and operates as an interval fund that offers to make quarterly repurchases of shares at the Fund’s net asset value (“NAV”). The Fund currently offers three different classes of shares: Class A, Class C, and Class I shares.

 

Investment Valuation – For purposes of determining the NAV of the Fund, and as applicable, readily marketable portfolio securities listed on the NYSE are valued, except as indicated below, at the last sale price reflected on the consolidated tape at the close of the NYSE on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices on such day. If no bid or asked prices are quoted on such day or if market prices may be unreliable because of events occurring after the close of trading, then the security is valued by such method as the Fair Value Committee shall determine in good faith to reflect its fair market value. Readily marketable securities not listed on the NYSE but listed on other domestic or foreign securities exchanges are valued in a like manner. Portfolio securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined as reflected on the consolidated tape at the close of the exchange representing the principal market for such securities. Securities trading on NASDAQ are valued at the closing price, or, in the case of securities not reported by NASDAQ, a comparable source, as the Fair Value Committee deems appropriate to reflect their fair market value. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices for the day, or if no asked price is available, at the bid price. However, certain debt securities may be valued on the basis of prices provided by a pricing service based on broker or dealer supplied valuations or matrix pricing, a method of valuing securities by reference to the value of other securities with similar characteristics, such as rating, interest rate and maturity.

 

The “last reported” trade price or sale price or “closing” bid price of a security on any trading day shall be deemed to be: (a) with respect to securities traded primarily on the NYSE, the American Stock Exchange or NASDAQ, the last reported trade price or sale price, as the case may be, as of 4:00 p.m., Eastern Time, on that day, and (b) for securities listed, traded or quoted on any other exchange, market, system or service, the market price as of the end of the “regular hours” trading period that is generally accepted as such by such exchange, market, system or service. If, in the future, the benchmark times generally accepted in the securities industry for determining the market price of a stock as of a given trading day shall change from those set forth above, the fair market value of a security shall be determined as of such other generally accepted benchmark times.

 

Non-U.S. dollar denominated securities, if any, are valued as of the close of the NYSE at the closing price of such securities in their principal trading market, but may be valued at fair value if subsequent events occurring before the computation of NAV have materially affected the value of the securities. Trading may take place in foreign issues held by the Fund, if any, at times when the Fund is not open for business. As a result, the Fund’s NAV may change at times when it is not possible to purchase or sell shares of the Fund.

 

If market quotations are not readily available, securities are valued at fair values as determined in good faith by the Board of Trustees (the “Board”). The Board has delegated the day-to-day responsibility for determining these fair values, in accordance with the policies it has approved, to the Fair Value Committee, subject to Valuation Committee and ultimately Board oversight. The Fair Value Committee will provide the Board with periodic reports, no less frequently than quarterly, that discuss the functioning of the valuation process, if applicable to that period, and that identify issues and valuation problems that have arisen, if any. As appropriate, the Valuation Committee and the Board will review any securities valued by the Fair Value Committee in accordance with the Fund’s valuation policies during these periodic reports.

 

Investments in private equity and private equity debt instruments initially will be valued at cost (purchase price plus all related acquisition costs and expenses, such as legal fees and closing costs) and thereafter will be revalued quarterly at fair value based on payment history, market conditions, collateral of underlying debt and credit quality of borrower.

 

 

As a general matter, the fair value of the Fund’s interest in Investment Funds that are Commodity and Natural Resource Investments, Direct Real Estate Funds, Hedge Funds, High Yield Loans, Private Equity Funds, Private Equity Debt, Private Real Estate Funds, Non-Traded REITs and Real Estate Loans (“Non-Traded Funds”), will represent the amount that the Fund could reasonably expect to receive from the Non-Traded Fund if the Fund’s interest was redeemed at the time of valuation, based on information reasonably available at the time the valuation is made and that the Fund believes to be reliable. Investments in Non-Traded Funds are recorded at fair value, using the Non-Traded Fund’s net asset value as a practical expedient. Based on guidance provided by the Financial Accounting Standards Board (“FASB”), investments for which fair value is measured using the net asset value practical expedient are not required to be categorized in the fair value hierarchy. In the event a Non-Traded Fund does not report a value to the Fund on a timely basis, the Fair Value Committee, acting under the Valuation Committee and ultimately the Board’s supervision and pursuant to policies implemented by the Board, will determine the fair value of the Fund’s investment based on the most recent value reported by the Non-Traded Fund, as well as any other relevant information available at the time the Fund values its investments. Following procedures adopted by the Board, in the absence of specific transaction activity in a particular investment fund, the Fair Value Committee will consider whether it is appropriate, in light of all relevant circumstances, to value the Fund’s investment at the NAV reported by the Non-Traded Fund at the time of valuation or to adjust the value to reflect a fair value.

 

Securities for which market quotations are not readily available (including restricted securities and private placements, if any) are valued at their fair value as determined in good faith under consistently applied procedures approved by the Board. Methodologies and factors used to fair value securities may include, but are not limited to, the analysis of current debt to cash flow, information of any recent sales, the analysis of the company’s financial statements, quotations or evaluated prices from broker-dealers, information obtained from the issuer or analysts and the nature of the existing market for securities with characteristics similar to such obligations. Valuations may be derived following a review of pertinent data (EBITDA, Revenue, etc.) from company financial statements, relevant market valuation multiples for comparable companies in comparable industries, recent transactions, and management assumptions. The Fund may use fair value pricing for foreign securities if a material event occurs that may affect the price of a security after the close of the foreign market or exchange (or on days the foreign market is closed) but before the Fund prices its portfolio, generally at 4:00 p.m. Eastern Time. Fair value pricing may also be used for securities acquired as a result of corporate restructurings or reorganizations, as reliable market quotations for such issues may not be readily available. For securities valued in good faith, the value of an investment used to determine the Fund’s net asset value may differ from published or quoted prices for the same investment. The valuations for these good faith securities are monitored and reviewed in accordance with the methodologies described above by the Fund’s Fair Valuation Committee on an ongoing basis as information becomes available but are evaluated at least quarterly. The good faith security valuations and fair value methodologies are reviewed and approved by the Fund’s Board on a quarterly basis. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time which the Fund determines its net asset value per share.

 

Generally accepted accounting principles in the United States of America (“GAAP”) defines fair value, establishes a three-tier framework for measuring fair value based on a hierarchy of inputs, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly and how that information must be incorporated into a fair value measurement. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the fair value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

 

Level 1 – quoted prices in active markets for identical securities. An active market for the security is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value.

 

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc. and quoted prices for identical or similar assets in markets that are not active.) Inputs that are derived principally from or corroborated by observable market data. An adjustment to any observable input that is significant to the fair value may render the measurement a Level 3 measurement.

 

Level 3 – significant unobservable inputs, including the Fund’s own assumptions in determining the fair value of investments.

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the valuation inputs, representing 100% of the Fund’s investments, used to value the Fund’s assets and liabilities as of September 30, 2019:

 

       Fair Value Measurements at the End of the Reporting Period Using    
                     
Investment in Securities   Practical Expedient**     Level 1
Quoted Prices
    Level 2
Other Significant
Observable Inputs
    Level 3
Significant
Unobservable Inputs
    Total  
Security Type                         
Common Stock*  $-   $22,979,484   $-   $-   $22,979,484 
Exchange Traded Funds*   -    12,499,895    -    -    12,499,895 
Commodity & Natural Resource Investments   1,925,913(1)(7)(8)    -    -    5,592,343    7,518,256 
Direct Real Estate   1,545,992(2)(7)(8)    -    -    8,448,297    9,994,289 
Hedge Funds   7,225,323(3)(7)(8)    -    -    -    7,225,323 
Private Equity   11,244,730(4)(7)(9)    -    -    47,818,852    59,063,582 
Private Equity Debt   -    -    -    13,251,346    13,251,346 
Private Real Estate Investments   12,704,022(5)(7)(10)    -    -    4,428,443    17,132,465 
Public Real Estate Investments*   529,178(6)(7)(8)    -    -    36,961    566,139 
Real Estate Loans   -    -    -    7,612,175    7,612,175 
Warrants   -    -    -    1,176,399    1,176,399 
Short Term Investments   -    2,932,824    -    -    2,932,824 
Total  $35,175,158   $38,412,203   $-   $88,364,816   $161,952,177 

 

*All sub-categories within the security type represent their respective evaluation status. For a detailed breakout by industry, please refer to the Schedule of Investments.

 

**Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the schedule of investments.

 

(1) Security Withdrawals Permitted Redemption Notice Period Investment Objective Investment Strategy Lock Up Period
Kayne Anderson Energy Fund VII LP Not Applicable Not Applicable Capital Gains Purchase oil and gas companies; extraction and production companies. N/A

 

(2) Security Withdrawals Permitted Redemption Notice Period Investment Objective Investment Strategy Lock Up Period
Brookwood SFL Investor Co-Investment Vehicle, LLC Not Applicable Not Applicable Capital Gains and Current Income Real Estate N/A

 

(3) Security Withdrawals Permitted Redemption Notice Period Investment Objective Investment Strategy Lock Up Period
Altegris Millennium Fund LP Quarterly Not Applicable Capital Gains and Income Multistrategy hedge fund N/A
Condire Resource Partners LP Quarterly 45 days Capital Gains Long/short mining and energy 12 months
CRC Bond Opportunity Trading Fund LP Monthly 90 days Capital Gains and Income Opportunistic, event-driven credit fund focused on subordinated debt, preferred equity, and additional Tier 1 capital of banks and financial firms. 12 months
EJF Trust Preferred Fund LP Not Applicable Not Applicable Capital Gains and Income Event driven with focus on financials 3 years
Rosebrook Opportunities Fund LP Quarterly Not Applicable Capital Appreciation Buying distressed hedge fund assets N/A
Tides Capital Gamma LP  Not Applicable Not Applicable Capital Appreciation Highly concentrated in public equity positions - Small Cap N/A

 

 

(4) Security Withdrawals Permitted Redemption Notice Period Investment Objective Investment Strategy Lock Up Period
Abbot Secondary Opportunities LP Not Applicable Not Applicable Capital Gains Purchase private equity funds on secondary market N/A
Auda Capital SCS SICAV SIF - Auda Asia Secondary Fund Not Applicable Not Applicable Capital Gains and Dividends Luxembourg Limited Partnership by interest qualifying as an investment fund with variable capital – specialized investment fund N/A
Committed Advisors Secondary Fund III Not Applicable Not Applicable Capital Gains Private equity fund with a global focus N/A
EJF Sidecar Fund, Series LLC - Small Financial Equities Series Not Applicable Not Applicable Capital Gains and Dividends Invests in equity of small depository institutions, including without limitation financial institutions that are impacted directly or indirectly by: (1) bank and thrift recapitalizations and/or restructurings; (2) merger and acquisition activity; and (3) government financial reform related policies. N/A
Greenspring Opportunities V, LP Not Applicable Not Applicable Capital Gains Direct investments in growth stage companies N/A
Madryn Health Partners LP Not Applicable Not Applicable Capital Gains Invests in commercial-stage healthcare companies N/A
PineBridge Secondary Partners IV SLP Not Applicable Not Applicable Capital Appreciation Private equity fund of funds N/A
Star Mountain Diversified Credit Income Fund III LP Not Applicable Not Applicable Capital Appreciation Structured Credit N/A
Star Mountain Diversified Small Business Access Fund II LP Not Applicable Not Applicable Capital Appreciation Structured Credit N/A

 

(5) Security Withdrawals Permitted Redemption Notice Period Investment Objective Investment Strategy Lock Up Period
Broadstone Net Lease, Inc. Quarterly 10 days Capital Appreciation and Income Real estate N/A
Carlyle Europe Realty Fund, S.C.Sp Not Applicable Not Applicable Capital Appreciation and Income Primary focus is on large, more liquid Western European markets. Seek to invest at the intersection of hard asset and private equity. N/A
Cygnus Property Fund V, LLC Not Applicable Not Applicable Capital Gains and Current Income Distressed debt/special situation and opportunistic real estate investments. N/A
Harbert Seniors Housing Fund I LP Quarterly Not Applicable Capital Appreciation and Income Real estate N/A
Harbert Seniors Housing Fund II LP Quarterly Not Applicable Capital Appreciation and Income Real Estate N/A
PCG Select Series I LLC - Series A Preferred Stock Not Applicable Not Applicable Income Real estate loans N/A
PRISA III Fund LP Quarterly 15 days Capital Appreciation and Income Diversified value-add real estate portfolio that targets above average real estate returns. N/A
RRA Credit Opportunity Fund LP Not Applicable Not Applicable Current Income Real estate backed lending N/A
Shopoff Land Fund III Not Applicable Not Applicable Capital Gains Value added Real Estate N/A
Stonehill Strategic Hotel Credit Opportunity Fund II LP Not Applicable Not Applicable Current Income Value added lending to hospitality assets N/A
Walton Street Real Estate Fund VIII LP Not Applicable Not Applicable Capital Gains Value added Real Estate N/A

 

 

(6) Security Withdrawals Permitted Redemption Notice Period Investment Objective Investment Strategy Lock Up Period
Highlands REIT, Inc. Not Applicable Not Applicable Capital Gains and Current Income Real Estate Investment Trust N/A
Inventrust Properties Corp. Not Applicable Not Applicable Capital Gains and Current Income Real Estate Investment Trust N/A

 

(7)Redemption frequency and redemption notice period reflect general redemption terms, and exclude liquidity restrictions. Different tranches may have different liquidity terms and may be subject to investor level gates.

 

(8)These investments are domiciled in the United States.

 

(9)These investments are domiciled in the United States with the exception of Auda Capital SCS SICAV SIF - Auda Asia Secondary Fund which is comiciled in Luxembourg and and Committed Advisors Secondary Fund III which is domiciled in France.

 

(10)These investments are domiciled in the United States with the exception of Carlyle Europe Realty Fund S.C.Sp. Which is domiciled in Luxembourg.

 

 

The following is a roll forward of the activity in investments in which significant unobservable inputs (Level 3) were used in determining fair value on a recurring basis. There were no transfers into or out of Level 3 during the period ended September 30, 2019.

 

    Beginning balance
January 1, 2019
    Transfers into Level 3
during the period
    Transfers out of Level 3
during the period
    Purchases or
Conversions
    Sales or
Conversions
    Net realized
gain (loss)
    Return of
Capital
    Change in net
unrealized appreciation (depreciation)
    Ending balance
September 30, 2019
 

Commodity & Natural Resource Investments

  $5,644,811   $-   $-   $-   $-   $-   $(173,966)  $121,498   $5,592,343 
Direct Real Estate   3,779,320    -    -    4,138,831    -    -    (35,821)   565,967    8,448,297 
High Yield Loans   1,564,481    -    -    1,288,982    (2,028,414)   (763,517)   9,912    (71,444)   - 
Private Equity   33,967,444    -    -    13,396,251    (5,439,024)   -    -    5,894,181    47,818,852 
Private Equity Debt   4,073,118    -    -    7,636,489    (1,135,556)   37,112    -    2,640,183    13,251,346 
Private Real Estate Investments   3,287,260    -    -    4,250,006    (3,193,145)   358,000    -    (273,678)   4,428,443 
Public Real Estate Investments   173,991    -    -    -    (135,263)   12,547    (2,588)   (11,726)   36,961 
Real Estate Loans   7,724,604    -    -    -    (112,429)   3,373    (6,830)   3,457    7,612,175 
Warrants   736,973    -    -    -    -    -    -    439,426    1,176,399 
   $60,952,002   $-   $-   $30,710,559   $(12,043,831)  $(352,485)  $(209,293)  $9,307,864   $88,364,816 

 

 

The following is a summary of quantative information about significant unobservable valuation inputs determined by management for Level 3 Fair Measurements for investments held as of September 30, 2019:

 

Type of Level 3 Investment

Fair Value as of September 30,
2019

Valuation
Technique

Unobservable
Inputs

Range

Weighted
Average

Commodity & Natural Resource Investments $1,636,309 Income Approach NYMEX future strip for WTI crude oil $46.09/bbl - $51.25/bbl $49.63
      NYMEX future strip for Henry Hub gas $1.10/MMBTU - $2.89/MMBTU $1.38
      Discount Rate 10%-25% 11.80%
Direct Real Estate $1,584,895 Income Approach Discount Rate 20% 20%
Private Equity          
Private Equity $46,918,099 Income Approach Growth Rate 4% - 678% 272.11%
Private Equity Debt $8,669,918   Discount Rate 20%-40% 30.15%
Warrants $1,176,399   Terminal Multiple 2.5x-6.5x 426%
    Guideline transaction comparison Projected EBITDA mulitple 10x-12x 11x
      Discount Rate 20% 20%
      Control Discount 13% 13%
    Guideline company comparison Projected revenue mulitple 1.04x-3x 2.1x
      LTM Revenue multiple 4.5x 4.5x
      Projected EBITDA mulitple 9x-10x 9.5x
      Discount Rate 20% 46%
    Option pricing method Time to Liquidity 1-3 145%
      Volatility 46%-75.3% 66%
      Risk Free Rate 2.45%-2.98% 3%
    Market Yield Approach Time to Liquidity 1 1
      LIBOR Swap Rate 2.76% 2.76%
      Credit Spread 7.25% 7.25%

 

 

The following is a summary of quantative information about significant unobservable valuation inputs not determined by management for Level 3 Fair Measurements for investments held as of September 30, 2019:

 

Type of Level 3 Investment  Fair Value as of
September 30, 2019
   Valuation Technique
Commodity & Natural Resource Investments  $3,956,034   Recent Transaction Value
Direct Real Estate  $6,863,402   Recent Transaction Value
Private Equity  $900,753   Recent Transaction Value
Private Equity Debt  $4,581,428   Face Value, Recent Transaction Value
Private Real Estate Investments  $4,428,443   Recent Transaction Value
Public Real Estate Investments  $36,961   Share Price
Real Estate Loans  $7,612,175   Face Value

 

Investments in Restricted Securities - Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. The Fund may invest in restricted securities that are consistent with the Fund’s investment objectives and investment strategies. Investments in restricted securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board of Trustees. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material.

 

Additional information on each restricted security held by the Fund on September 30, 2019 is as follows:

 

 

Security Initial Acquisition
Date
Shares or Principal Cost Fair Value % of Net
Assets
Abbott Secondary Opportunities LP April 13, 2017  -  1,079,530  1,281,967 0.78
Airport Center Development Partners, LLC September 28, 2018 1,887,571  1,830,944  1,887,571 1.14
Altegris Millennium Fund LP December 20, 2018   -  1,000,000  1,052,118 0.64
ARCTRUST, Inc. June 30, 2016  95,075  1,041,740  1,361,478 0.82
Atlas Fintech Holdings Corp. December 20, 2016  159  1,506,000  1,828,500 1.11
Atlas Fintech Holdings Corp. - Convertible Note June 20, 2019 1,500,000  1,500,000  1,500,000 0.91
Atlas Fintech Holdings Corp., Excercise Price $13,000, Expiration Date December 20, 2016  100   -  253,805 0.15
Atlas Fintech Holdings Corp., Excercise Price $14,950, Expiration Date December 20, 2016  44   -  85,751 0.05
Auda Capital SCS SICAV SIF - Auda Asia Secondary Fund April 2, 2018  -  1,988,718  2,013,971 1.22
Broadstone Net Lease, Inc. September 12, 2019 2,000,000  2,000,000  2,000,000 1.21
Brookwood SFL Investor Co-Investment Vehicle, LLC November 3, 2017  -  1,057,405  1,545,992 0.93
Carlyle Europe Realty Fund, S.C.Sp. December 19, 2018 1,847,055  2,093,939  1,813,290 1.10
Casillas Petroleum Resource Partners, LLC October 11, 2016  -  952,711  1,636,309 0.99
Clear Guide Medical, Inc. - Series A Preferred Stock April 19, 2016  2,500  2,250,000  3,802,700 2.30
Clear Guide Medical, Inc. - Series A-2 Preferred Stock March 6, 2018  134,898  500,000  724,389 0.44
Clear Guide Medical, Inc. - Series A-3 Preferred Stock July 16, 2018  634,619  2,335,394  3,217,518 1.95
Clearsense, LLC - Class C Preferred Shares February 20, 2019  778,361  3,430,004  3,430,005 2.07
CM Funding, LLC December 14, 2018  -  1,876,034  1,876,034 1.13
Committed Advisors Secondary Fund III March 30, 2017  -  1,250,806  1,622,410 0.98
Condire Resource Partners LP May 30, 2017  -  231,313  211,979 0.13
Cottonwood Residential, Inc. February 17, 2015  101,470  -  10,147 0.01
Cottonwood Residential II, Inc. June 12, 2019  157,812  3,000,006  3,056,818 1.85
CRC Bond Opportunity Trading Fund LP June 7, 2019  -  2,500,000  2,612,395 1.58
Cygnus Property Fund V, LLC October 30, 2018  -  1,959,903  1,800,887 1.09
Dog Wood Park of Northeast Florida, LLC March 21, 2017  400,000  382,000  400,000 0.24
DSI Digital, LLC - Series A Convertible Preferred Units November 29, 2017 3,050,774  4,500,000  11,584,614 7.00
EJF Sidecar Fund, Series LLC - Small Financial Equities Series October 25, 2017   -  1,093,137  1,097,054 0.66
EJF Trust Preferred Fund LP August 23, 2017  -  611,119  816,623 0.49

 

 

Security Initial Acquisition
Date
Shares or Principal Cost Fair Value % of Net
Assets
GigaPro, Inc. August 8, 2019 6,785,282  6,630,852  6,424,034 3.88
GigaPro, Inc. – Secured Note August 8, 2019  906,326  807,167  906,326 0.54
GPB Automotive Portfolio LP March 13, 2015  10  500,000  457,314 0.28
Gravity Ranch Fund I LP June 13, 2017  -  500,000  474,717 0.29
Greenspring Opportunities V, LP January 18, 2018  -  442,000  512,124 0.31
GT Operating Company, Inc. July 3, 2018 1,741,602  1,663,230  1,741,602 1.05
Harbert Seniors Housing Fund I LP February 24, 2017  -  1,153,727  1,417,581 0.85
Harbert Seniors Housing Fund II LP September 10, 2019  -  366,551  366,551 0.22
Hauiki Hui, LLC January 4, 2017  400,000  382,000  400,000 0.24
Highlands REIT, Inc. April 28, 2016  136,771  34,827  47,870 0.03
Inventrust Properties Corp. March 2, 2015  153,283  347,073  481,308 0.29
Kayne Anderson Energy Fund VII LP September 12, 2016  -  1,702,195  1,925,913 1.16
LaGrange Senior Living, LLC September 11, 2019 1,800,000  1,800,000  1,800,000 1.09
Level ATI HoldCo, LLC - Class A September 10, 2018  -  1,690,000  2,894,496 1.75
Madryn Health Partners LP September 28, 2018  -  1,430,078  1,484,915 0.90
Metro Diner, LLC - Series B Units November 16, 2017 3,500,000  3,500,000  2,870,000 1.74
Metro Diner, LLC - Series II Common Units November 16, 2017 1,880,968  -  2,821,452 1.71
Park City (PCG) March 16, 2018  683,002  648,851  683,002 0.41
PCG Select Series I LLC - Series A Preferred Stock June 23, 2016  -  621,555  621,555 0.38
Phillips Edison Grocery Center February 3, 2016  3,330  25,114  36,961 0.02
PineBridge Secondary Partners IV SLP September 19, 2017 -  1,007,971  1,145,022 0.69
Polara Builder II, LLC June 15, 2018  -  4,741,225  5,063,402 3.06
PRISA III Fund LP September 26, 2017  683  1,144,200  1,249,957 0.76
Rosebrook Opportunities Fund LP February 2, 2017 -  1,668,649  1,761,375 1.06
RRA Credit Opportunity Fund LP December 12, 2017 -  1,612,171  1,700,864 1.03
RS17 Rexburg Preferred LLC September 21, 2017  -  970,000  1,584,895 0.96
Saratoga Springs Partners, LLC May 5, 2017  500,000  477,738  500,000 0.30
Schweizer - RSG, LLC - Promissory Note February 6, 2018 1,111,111  1,088,889  1,111,111 0.67
Schweizer RSG, LLC, Excercise Price $112.50, Expiration Date February 6, 2018  1,442  -  15,270 0.01
Sequin, Inc. - Convertible Note July 1, 2019 1,000,000  1,000,000  1,000,000 0.60
Shopoff Land Fund III LP April 28, 2015  56  40,203  33,053 0.02
Star Mountain Diversified Credit Income Fund III LP June 20, 2019 -  1,000,000  1,072,757 0.65
Star Mountain Diversified Small Business Access Fund II LP June 2, 2017 -  904,475  1,014,510 0.61
Stonehill Strategic Hotel Credit Opportunity Fund II LP July 18, 2016  753,858  753,858  1,005,789 0.61
Thunder Investment Partners, LLC November 2, 2018 -  2,080,000  2,080,000 1.26
Tides Capital Gamma LP November 30, 2018 -  1,000,000  770,833 0.47
Tout, Inc. - New Preferred Shares June 2, 2018  412,968  426,291  412,968 0.25

 

 

Security Initial Acquisition
Date
Shares or Principal Cost Fair Value % of Net
Assets
Tout, Inc. - Promissory Note March 25, 2019 4,763,592  2,100,483  4,763,592 2.88
Tout, Inc. - Promissory Note June 6, 2019  896,357  728,840  896,357 0.54
Walton Street Real Estate Fund VIII LP May 24, 2017  -  586,792  694,495 0.42
Waratek Ltd. - Promissory Note March 25, 2019 1,500,000  1,500,000  1,500,000 0.91
Waratek, Ltd. - Series B-1 June 5, 2018  635,838  2,990,569  2,828,103 1.71
Waratek, Ltd. - Series B-2 December 28, 2017  756,826  3,696,940  3,622,006 2.19
Waratek, Ltd., Excercise Price 0.01 Euro, Expiration Date June 5, 2018  388,869  -  821,573 0.50
Westgate at Powers, LLC January 17, 2018 2,000,000  1,890,000  2,000,000 1.21
WG Pitts Caribbean, LLC October 12, 2018  -  426,040  426,036 0.26

WG Pitts Caribbean, LLC - Promissory Note

October 12, 2018 2,000,000  1,573,960  1,573,960 0.95
      $101,625,216 $123,539,974  

 

 

Investments in Affiliated Issuers - An affiliated issuer is an entity in which the Fund has ownership of at least 5% of the voting securities. Issuers that are affiliates of the Fund at period-end are noted in the Fund’s Schedule of Investments. Additional security purchases and the reduction of certain security shares outstanding of existing portfolio holdings that were not considered affiliated in prior years may result in the Fund owning in excess of 5% of the outstanding shares at period-end. The table below reflects transactions during the period with entities that are affiliates as of September 30, 2019 and may include acquisitions of new investments, prior year holdings that became affiliated during the period and prior period affiliated holdings that are no longer affiliated as of period-end.

 

Security Description Value
Beginning
of Period
Purchases
or Conversions
Sales
or Conversions
Change in securities
meeting the
definition of an
affiliated investment
Change in
Unrealized
Appreciation
(Depreciation)
Net
Realized
Gain (Loss)
Tax Basis or
Return of Capital
Adjustments
Value
End of
Period
Investment
Income
Brookwood SFL Investor
Co-Investment Vehicle, LLC
  $1,551,334   $-   $-   $-   $61,502   $-   $(66,844)  $1,545,992   $- 
Clear Guide Medical, Inc.
- Convertible Note, 10.00%, 1/6/2020
   1,032,487    -    (780,000)   -    (282,487)   30,000    -   $-    3,683 
Clear Guide Medical, Inc.
- Series A Preferred Stock(1)
   3,802,700    -    -    -    -    -    -    3,802,700    - 
Clear Guide Medical, Inc.
- Series A-2 Preferred Stock(1)
   724,389    -    -    -    -    -    -    724,389    - 
Clear Guide Medical, Inc.
- Series A-3 Preferred Stock(1)
   688,328    1,835,394    -    -    693,796    -    -    3,217,518    - 
Clearsense, LLC
- Class C Preferred Shares
   -    3,430,005    -    -    -    -    -    3,430,005    138,190 
CM Funding, LLC(1)   2,050,000    -    -    -    -    -    (173,966)   1,876,034    154,421 
Cygnus Property Fund V, LLC(1)   2,000,000    -    -    -    (159,016)   -    (40,097)   1,800,887    - 
DSI Digital, LLC
- Series A Convertible Preferred Units(1)
   3,000,000    1,500,000    -    -    7,084,614    -    -    11,584,614    284,789 
LaGrange Senior Living, LLC(1)   -    1,800,000    -    -    -    -    -    1,800,000    - 
Level ATI HoldCo, LLC - Class A(1)   2,385,261    -    -    -    509,235    -    -    2,894,496    - 
Polara Builder II, LLC(1)   2,471,990    2,338,831    -    -    288,402    -    (35,821)   5,063,402    380,310 
Rosebrook Opportunities Fund LP(1)   1,283,000    -    -    -    640,537    -    (162,162)   1,761,375    - 
RS17 Rexburg Preferred LLC(2)   1,307,330    -    -    (970,000)   (337,330)   -    -    -    213,314 
RRA Credit Opportunity Fund LP   456,870    1,450,299    -    -    22,821    -    (229,126)   1,700,864    3,691 
Schweizer RSG, LLC, Exercise Price $112.50, Expiration Date 1/22/2028   15,270    -    -    -    -    -    -    15,270    - 
Tides Capital Gamma LP(1)   856,821    -    -    -    (85,938)   -    -    770,883    - 
Thunder Investment Partners, LLC(1)   2,080,000    -    -    -    -    -    -    2,080,000    173,238 
Tout, Inc. - New Preferred Shares(2)   7,900,001    -    -    (5,865,315)   (2,034,686)   -    -    -    - 
Waratek Ltd. - Series B-1 Shares   2,957,410    -    -    -    (129,307)   -    -    2,828,103    - 
Waratek Ltd. - Series B-2 Shares   3,787,611    -    -    -    (165,605)   -    -    3,622,006    57,250 
Waratek, Ltd. - Series B-1 Shares, Exercise Price 0.01 Euro, Expiration Date 01/22/2028   382,147    -    -    -    439,426    -    -    821,573    - 
WG Pitts Caribbean, LLC(1)   426,036    -    -    -    -    -    -    426,036      
   $41,158,985   $12,354,529   $(780,000)  $(6,835,315)  $6,545,964   $30,000   $(708,016)  $51,766,147   $1,408,886 

 

(1)Affliated investments for which ownership exceeds 25% of the Investment Fund's Capital.
(2)Affiliated security as December 31, 2018, but no longer meeting the 5% ownership in voting securities definition for the period ended September 30, 2019. The inclusion in the table above is to provide the net change for affiliated securities as a whole. The security is held in the portolio, see the Schedule of Investments for the current value.

 

 

Federal Income Tax Information – At December 31, 2018, gross unrealized appreciation and depreciation on investments based on cost for federal income tax purposes were as follows:

 

Cost of investments  $104,842,783 
Gross unrealized appreciation  $21,852,476 
Gross unrealized depreciation   (11,107,274)
Net unrealized appreciation on investments  $10,745,202 

 

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions and investments in partnerships.

 

 

Item 2. Controls and Procedures.

 

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 

Item 3. Exhibits.

 

(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 

Exhibit No. Description of Exhibit
99.1 Certification of Principal Executive Officer
99.2 Certification of Principal Financial Officer

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Wildermuth Endowment Fund  
     
By: /s/ Daniel Wildermuth  
  Daniel Wildermuth  
  Trustee, Chairman of the Board, President and Chief Executive Officer
     
Date: November 27, 2019  
     
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
     
By: /s/ Daniel Wildermuth  
  Daniel Wildermuth  
  Trustee, Chairman of the Board, President and Chief Executive Officer
  (Principal Executive Officer)  
     
Date: November 27, 2019  
     
By: /s/ Gerard Scarpati  
  Gerard Scarpati  
  Treasurer and Chief Financial Officer
  (Principal Financial Officer)  
     
Date: November 27, 2019  

 

 

EXHIBIT INDEX

 

(a) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)