Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Waiting on the ‘Report’

We are awaiting the employment report–the ‘official’ report from the government. While I question the reports coming from the government they are what they are and markets will react. Equity markets are just waiting–little movement.

I am back to watching the markets for now – seems like a bit of a flip flop as only last week I was awaiting CD and Treasury maturities so I would have some cash to invest and now I am waiting. A number of folks commented yesterday ‘why invest today when better prices are coming tomorrow’. Also with competing investments where I can lay low for some number of months at a pretty good coupon why stress out with dicey investments.

11 thoughts on “Waiting on the ‘Report’”

  1. 2WR,

    1,940,649 is the number of shares beneficially owned by the “Group”. This includes the 273,983 shares beneficially held by EMG.

    Item 4(a) details the relationships between the five reporting entities [each one has it’s own ‘cover page’ (pages 2 – 6)].

    Say that Tim is the owner/general partner of III, an investment company that runs two hedge funds, 2WR and MBG. 2WR holds 3% of AJAX common stock and MBG holds 4% shares of AJAX common stock.

    Since III runs both funds, III is deemed to beneficially hold 7% of AJAX common stock.
    Since Tim is the owner/general partner of III, he is deemed to beneficially hold IIIs shares.

    For reporting purposes, there are deemed to be 4 members of the III group: Tim, III, 2WR, and MBG.
    Each group member has it’s own ‘cover page’:
    1. 2WR (beneficially holds 3% of AJAX common stock for it’s investors).
    2. MBG (beneficially holds 4% of AJAX common stock for it’s investors).
    3. III (controls 2WR and MBG, so deemed to beneficially hold their 7%).
    4, Tim (controls III, so deemed to beneficially hold III’s beneficially held 7%).

    In the EFC case, the ‘Ellington funds’ own 273,983 shares and EMG, as the investment advisor to those 4 funds, is deemed to beneficially own only this number of shares. These shares and the other 1,666,666 shares are beneficially held by ‘EFS’ and the other group members – that is why each of their cover pages state that they are deemed to own all 1,940,649 shares.

    Item 4(a) describes the relationship between the members of this reporting group.

    1. Many thanks for the education, Professor mbg…. I think that pretty well explains it as I thought was the case. Bottom line is for most people reading a 13g-a only the initial entry will be what matters….. Not many people need to know any of the breakdowns to get what they want out of the filing.. Would you agree? For most everyone, the rest is relatively trivial.. In this particularly case, all that matters is to know EFC owns 6% of Great Ajax even though the acquisition fell thru.

      1. You’re welcome, 2WR. For me, that’s usually the reason I look at the filings – to see how much of the stock they hold. When that’s all I’m looking to find, then the breakdowns are unnecessary.

  2. Still rearranging the deck chairs. A few of my limit sells were close to hitting until yesterday’s dump. Have to wait a while longer. But on the other hand I picked up more CNKQP and the AJXA just feel both are safe at least as safe as any preferred in this market.

    1. Charles M (or other AJXA followers), did you receive the Jan. 16, 2024, distribution on AJXA?

      1. Yes I did and I looked at the return and risk of it being called and possibly being paid off in some stock as it was pointed out to me and I sold it yesterday at 24.75 I made a decent profit for the time I held and I am looking for another holding I can get about 7% on.

        1. Speaking of AJXA as an example, is anyone out here willing to give lessons on how to properly read a 13g-a filing???? I’ve never felt confident about what I’m reading…. For example re: Great Ajax, there’s this filing that came out today – https://d18rn0p25nwr6d.cloudfront.net/CIK-0001614806/f46967f7-cffd-4da0-b033-e1cdd24ebeee.html. My starting question is just how many shares are actually being reported on as being owned my EFC and/or affiliates? Is it 1,940,649 or multiples thereof? Or even another total number including 273,983 somewhere additionally? Anyone want to be Professor 13g?

  3. There are some 6% 2 year callable Bank of Montreal A rated bonds on Schwab. BANK MONTREAL MEDIUM 6% 07/18/2025 Callable
    Not all that high, but would bite if not for them being Canadian, even though my account is a traditional IRA, chances of somebody on either end withholding taxes are 50/50.

    1. HI Garu, Just a FYI. I loaded the ADP and non-farm Payroll numbers into a spreadsheet to compare the two. With the exception of today’s June numbers, I’m using the revised numbers which come out one and two months after the first ‘advanced’ number which today’s June number is. What I found is every once in a while you get these big differences. Like July 2022 the difference between the two was 110K (19% difference). In Oct 2022 it was 141K (43% difference). Jan 2023 it was 353K (74% difference). And today (not using revised numbers) it was 288K (137% difference). Even though sometimes the numbers are way off, as Tim says, the market reacts.

Leave a Reply

Your email address will not be published. Required fields are marked *