u/OracleOmaha

RoboStrategy publishes NAV monthly. Here is what that number contains, and what it does not. NAV moves for two different reasons. The first is that the value of the portfolio holdings changed. The second is that the fund issued new shares. Published NAV figures combine both, so a change in total NAV does not tell you, on its own, which of the two drove it.

This matters because the two mean completely different things. Capital raised is not portfolio appreciation, and a rising total NAV figure is not by itself evidence of either.

NAV per share and market price are separate numbers. NAV per share is the fund's holdings divided by shares outstanding. The market price is whatever the shares last traded at on Nasdaq, set by supply and demand. The two are set by different mechanisms and are almost never equal.

What the number is made of. Most of the fund's holdings are private companies without market quotations. NAV reflects fair value estimates determined under Board-approved procedures, which are inherently subjective, and realized values may differ materially.

The fund's investor center publishes the monthly updates, and its filings are on EDGAR. Not an offer to sell or a solicitation of an offer to buy any securities. Shares of closed-end funds frequently trade at a discount to NAV, and investing in the fund involves a high degree of risk, including possible loss of the amount invested. Please review the "Risk Factors" section of the prospectus.

This is sponsored content. RetailVolts was compensated by u/RoboStrategy, Inc. in connection with this content. This communication is for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security

This is the mechanic behind the NAV figure RoboStrategy publishes each month, and it is worth understanding before reading any of those figures.

The problem. A closed-end fund holding public equities can value its portfolio from closing prices. BOT holds private companies. There are no quotations, no daily prints, and no market to check. The value of each position has to be estimated.

How it is done. Fair value is determined under procedures approved by the fund's Board. Those procedures set out what inputs are used, who applies them, and how often positions are reviewed. Common inputs for private positions include recent financing rounds in the company, comparable company analysis, and changes in the company's own performance. The prospectus is the authoritative description of the fund's approach. What that means when you read the number. Three things follow, and the fund discloses all three.

First, the figure is an estimate rather than an observation. Second, it is inherently subjective — reasonable people applying the same procedures can reach different numbers. Third, realized values may differ materially, meaning what the fund eventually receives for a position can differ from the value it carried.

Why this is not a criticism. Every vehicle holding private assets faces the same problem, and the alternative is not holding them. The structure allows illiquid positions to be held without the need to meet daily shareholder redemptions. The disclosure exists so the reader knows what kind of number they are looking at.

What to read. The prospectus section on valuation, and the fund's SEC filings on EDGAR. Both go into considerably more detail than this post.

Not an offer to sell or a solicitation of an offer to buy any securities. Shares of closed-end funds frequently trade at a discount to NAV, and investing in the fund involves a high degree of risk, including possible loss of the amount invested. Please review the "Risk Factors" section of the prospectus.

This is sponsored content. RetailVolts was compensated by RoboStrategy, Inc. in connection with this content. This communication is for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security

Educational, not a take. RoboStrategy recently entered a committed equity facility (CEF), and it's a structure worth understanding because it explains a lot about how funds like this raise money. A CEF is an arrangement with a counterparty — here, Roth Principal Investments — that lets the fund sell new shares up to a cap ($2 billion) over time, at its own discretion, once the SEC declares a resale registration effective.

The fund isn't obligated to sell anything; it's an option, not a commitment. Why it matters both ways: it gives the fund flexible access to capital without a traditional offering. But issuing new shares dilutes existing holders, and markets often react to that — the stock moved on the announcement. Neither of those is a verdict on the fund; they're just the mechanics of how share issuance works. The primary document is the fund's registration filing on EDGAR.

This is sponsored content. RetailVolts was compensated by u/RoboStrategy, Inc. in connection with this content. This communication is for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.

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