Black Label Fund closed its first full quarter of operation on March 31, 2026 with $255,620 in capital deployed across 163 SKUs and 29 transactions. The portfolio generated a gross gain of +42.8% against cost basis, with a net realizable return of +32.1% after estimated sell-side exit costs. This performance exceeded our internal Q1 target and reflects the fund's disciplined sourcing edge — we entered the quarter at an average of 70.0¢ on the dollar relative to market at time of acquisition.

The fund's thesis centered on Prismatic Evolutions as the dominant Q1 opportunity — a set with constrained supply, high collector demand, and meaningful price velocity. Prismatic Evolutions now represents 31% of GAV and has appreciated +45.9% since acquisition, driven by retail sellouts and secondary market premiums expanding faster than expected. A concentrated February deployment block of $38,064 across five Prismatic Evolutions SKUs was the quarter's defining acquisition, capturing premium product at deep discounts before the market repriced.

Market appreciation accounted for 60.7% of gross gains ($65,118), with acquisition discount contributing the remaining 39.3% ($42,209). This inversion from a typical early-fund profile — where acquisition discount dominates — reflects the speed at which the collectibles market moved in Q1 and validates our entry timing. No positions were exited in Q1. The fund is operating as designed: acquire below market, hold through appreciation, exit selectively.

The fund enters Q2 with $152,055 in capital that is both uninvested and uncalled — this represents LP commitments that have not yet been called. Our plan is to call the balance of LP commitments in late Q3 or early Q4 2026, aligning capital calls with identified deployment opportunities rather than sitting idle. In parallel, we have a soft circle of $165,000 in progress, bringing our combined committed-and-soft-circle total to $569,275 (56.9% of our $1M target). We will not chase markets — capital is deployed only when we can source at our target discount threshold.

Q2 Focus
The primary strategy for Q2 is to continue dollar-cost averaging into Prismatic Evolutions as reprint announcements hit the marketplace. Reprints typically create short-term price compression that we view as a buying opportunity — our thesis on the long-term demand profile for this set remains unchanged. We are simultaneously monitoring Destined Rivals and Ascended Heroes closely for additional placement opportunities as both sets show strong early secondary market momentum and limited supply visibility.

Diversification
The fund will begin expanding its graded slab and rare book exposure in Q2–Q3, targeting a 5–8% allocation to non-TCG assets by year end. High-grade vintage Pokemon slabs (PSA 9–10), select first edition books, and One Piece sealed product represent the near-term pipeline. We are also initiating a position in collectible mangas as a deliberate diversification play — this segment of the market is growing materially, with high-profile celebrity interest accelerating mainstream awareness. Logan Paul's public investment in the manga collectibles space is a leading indicator of the same demand cycle that preceded the Pokemon TCG boom, and we intend to be positioned ahead of that curve. This diversification supports NAV stability and reduces concentration risk in any single TCG release cycle.

Market Catalysts — Second Half of 2026 & Beyond
The fund is actively positioning ahead of several converging demand catalysts. Pokémon's 30th Anniversary in October 2026 represents the single most significant collector event in the hobby's history — anniversary releases have historically driven outsized secondary market appreciation across the entire sealed product ecosystem. We are building positions now with the intention of holding into that window. Reinforcing this, Joe Jonas has confirmed a collaboration with Target on the full 30th Anniversary Pokémon release, a partnership that signals mainstream retail amplification at a scale the hobby has not seen before. Kim Kardashian's highly public Pokémon collection further demonstrates the IP's crossover into luxury and celebrity culture — a powerful demand driver that extends well beyond the traditional collector base. Lewis Hamilton's move into opening TCG retail shops is a further signal that high-profile, financially sophisticated individuals see lasting value in this asset class — and that the infrastructure supporting it is maturing rapidly.

Season 2 of the Netflix adaptation is experiencing a new wave of mainstream awareness and international collector demand. One Piece has captured the title of highest-selling manga of all time worldwide, and growing brand partnerships — including Red Bull — signal the IP transitioning from niche to mainstream at accelerating speed. We view early One Piece TCG positioning as asymmetric: a relatively small allocation captures meaningful optionality on a collector base that is still in early growth.

Rare Books & Literary Collectibles
In the rare books and literary collectibles space, Brandon Sanderson has secured a major deal with Apple TV for his entire Cosmere IP — encompassing three theatrical movie releases and a full television series positioned to rival Game of Thrones in scale and ambition. With this deal already announced, we anticipate these releases will drive broad new awareness of the Cosmere universe and meaningfully increase collector demand for signed editions, leatherbound printings, and first editions across Sanderson's catalog. This is the type of IP-to-entertainment catalyst that has historically created step-change appreciation events in collectible book markets. Collectively, these catalysts reinforce our conviction that collectibles are undergoing a structural shift from niche hobby to recognized alternative asset class, and that early-mover positioning across Pokémon, One Piece, manga, and rare books is well-timed.

Portfolio Rotation
We have already begun executing on a strategy to rotate out of less desirable assets and redeploy that capital into higher-projected-performing SKUs in early Q2. Positions where appreciation has run ahead of our long-term thesis or where secondary market liquidity is thinning will be prioritized for exit. Proceeds are being recycled into our highest-conviction Q2 targets — primarily Prismatic Evolutions DCA opportunities and Destined Rivals positioning. No forced exits are planned for core long-term positions.

Logan Paul · Manga Collectibles

Joe Jonas × Target · Pokémon 30th

Lewis Hamilton · TCG Retail

Brandon Sanderson × Apple TV