H1 2022 gross returns: -$240.8k (-7.5% YTD). We are down this year, year to date. I see it as a drop of 7.5% on our average capital outstanding ($3.2m). The loss is exactly evenly split between the $120k we lost on NextAlim in the beginning of the year and the approx. $120k we're down on our stock portfolio. Importantly, this doesn't incorporate the impact of changes in our expectations for returns in our private portfolio, which we probably would expect to have been positive—Smartemis is showing $3.7m in annualized revenue, and ScreenMeet has exceeded $4m in annualized revenue.

H1 2022 expenses: $18.4k (-2.5% YoY annualized). Expenses were generally flat. The YoY decline is flattered by the expense we took in 2021 for new office furniture. Our credit card expenditure is running high on an annualized basis due to our expenses in Mexico in May, which should revert as we approach year end. Office rent is up 3% as part of our overall rent agreement with Rad.

Private deals done: 6, for $605.1k (+2.9% YoY). The $605k that we invested in private deals in the first half of 2022 represents our largest amount of annual activity in private deals since ABBQ. Notably, we did our first two debt deals in this period in the form of promissory notes: $45k to take a piece of debt in the Assembly Authority investment, bringing our total exposure there up to $95k, and a $62k loan to partially fund the Drexler family property in Cedar Rapids. With the exception of the latter, the six investments only included one new obligor: Lung Therapeutics, a biotechnology company pursuing two drugs to treat lung fibrosis, into which we invested $50k. Of particular note: we increased our investment in Smartemis this year by 2.5x, to ~$634k from ~$185k. This was due to what we see as positive progression in their sign-up of vet clinics in Germany. Currently, we have $1.72m of exposure to private deals across 8 unique deals.

New public investments made: 0, or $0.0m (-100.0% YoY). We have yet to make a public stock or bond purchase this year. We sold $194k of investments this year, mainly selling the remainder of our gold positions. (Gold is down 5% YTD.) Our last significant spate of public activity was at the end of last year when we sold approx. $920k of stocks and then re-bought approx. $675k of mostly dividend stocks. Consequently, our public portfolio distribution has remained steady, with 85% of our holdings in dividend-paying stocks, 8% in tech, 3% in "punts" (UEC and Compass Pathways) and 3% in bond risk (Solar Capital). This mix seems unlikely to change for the remainder of 2022.