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Holdings

($ in 000's, except per share amounts)

Financial Information as of March 31, 2018 (see below for selected current information):

 
Cash & marketable securities (1) $6,835,921
Alibaba Group Holding Limited $70,399,596
Yahoo Japan Corporation $9,416,692
Other $1,632,563
Total assets $88,284,772
Deferred tax liabilities on unrealized appreciation $16,709,235
Margin loan payable $3,011,077
Other liabilities $1,764,307
Convertible notes(7) $1,388,078
Net asset value (NAV) $65,412,075
NAV per share $79.98
   
  March 31, 2018 Current(6)
Adjusted NAV(2) $82,121,310 $59,336,937
Adjusted NAV per share(2) $100.41 $98.00
Discount to Adjusted NAV(3) 26.3% 27.6%
Adjusted NAV excluding net cash(4) $79,684,544 $55,892,478
Adjusted NAV excluding net cash per share (4) $97.43 $92.31
Discount to Adjusted NAV excluding net cash(5) 27.1% 29.3%
Number of shares 817,892 605,508
 
(1) Cash & marketable securities includes cash, foreign currency, marketable securities and related interest receivable and receivables for investment securities sold.
(2) Adjusted NAV consists of net asset value adjusted to exclude deferred tax liabilities on unrealized appreciation.
(3) Discount to Adjusted NAV reflects the stock price discount relative to the Adjusted NAV.
(4) Adjusted NAV excluding net cash reflects Adjusted NAV (less) cash & marketable securities (plus) convertible notes and margin loan payable.
(5) Discount to Adjusted NAV excluding net cash reflects the stock price discount relative to the Adjusted NAV excluding net cash per share.
(6) Current Adjusted NAV and Current Adjusted NAV excluding net cash (and the related Discounts thereto) are estimated utilizing the methodologies described above. The figures utilize the Fund's most recently published financial statements updated with estimates as of the close of business for the preceding week for: (i) the Altaba share price and the market value of Alibaba shares and Yahoo Japan shares held, (ii) cash & marketable securities, and (iii) shares outstanding. In addition, the calculations deduct from net cash where applicable an estimate of the tax liabilities owed but not yet paid resulting from the August 2018 tender for Altaba shares, the related Alibaba share sales, and the sale of Yahoo Japan shares to Softbank, all as estimated utilizing the assumptions, rates and methodologies utilized in the most recently published financial statements. Unless otherwise delineated in the foregoing, values have not been updated from the most recently published financial statements.
(7) Convertible notes are carried at book value consistent with US GAAP treatment as presented on the Fund’s published financials and could vary from intrinsic value. The current intrinsic value (reflecting the value of the convertible if converted) exceeds the book value and the Discount to Adjusted NAV and Discount to Adjusted NAV excluding net cash would be smaller if they were calculated utilizing the current intrinsic value.
holdings

Investment Objective

As revised by the Fund's Board of Directors on February 20, 2018, the Fund's investment objective is to seek to increase the price per share at which it trades relative to the then-current values of its principal underlying assets (the Alibaba Group Holding Limited ("Alibaba") ordinary shares and American Depositary Shares (collectively, the "Alibaba shares") and Yahoo Japan Corporation ("Yahoo Japan") shares of common stock ("Yahoo Japan shares")). It seeks to do this by reducing the discount at which it trades relative to the underlying value of its net assets (before giving effect to deferred taxes on unrealized appreciation) while simplifying its net asset base and returning capital to its shareholders in ways that are accretive and increase shareholder value.

In addition to the Alibaba shares and Yahoo Japan shares, the Fund also owns investments in certain additional companies ("Minority Investments"), Excalibur IP, LLC ("Excalibur"), which owns a portfolio of patent assets (the "Excalibur IP Assets") and short-term investments (the "Marketable Debt Securities Portfolio"). The Fund currently intends to sell the Yahoo Japan shares and Minority Investments over time. The Fund also currently intends to sell Excalibur, though the Fund may seek to sell certain of the Excalibur IP Assets or to license the Excalibur IP Assets if the Board believes that doing so is in the best interest of the Fund's stockholders. The Fund currently intends to return substantially all of its cash, including any new cash generated by asset sales, to stockholders over time through stock repurchases and distributions, although the Fund will retain sufficient cash to satisfy its obligations to creditors and for working capital. The timing and method of any return of capital will be determined by the Board. Stock repurchases may take place in the open market, including under Rule 10b5-1 plans or in a tender offer, or in privately negotiated transactions, including structured and derivative transactions such as accelerated share repurchase transactions. The Fund currently anticipates that the amount of cash to be retained by the Fund will be at least $4.5 billion, which is the minimum amount necessary to satisfy the Fund's obligations under the Convertible Notes and Margin Loan. However, the Fund's obligations to creditors and working capital requirements may vary over time and may be materially greater than such amount, depending upon, among other factors, the cost of cash-settling any conversion obligations under the Convertible Notes, the Fund's potential obligations with respect to potential liabilities, and whether the income from the Fund's investments is sufficient to cover its expenses. The payment of liabilities, including debt obligations, may cause the Fund's returns to deviate from its investment objective. Until the Yahoo Japan shares, Minority Investments, Excalibur (or the Excalibur IP Assets), the Marketable Debt Securities Portfolio, and any other assets are sold and until any cash is returned to investors, these assets may cause the Fund's returns to deviate from its investment objective.

Consistent with its current investment objective, the Fund currently does not intend to sell its Alibaba shares in response to changes in the market price of those shares, though it reserves the right to do so. The Fund has, and may in the future sell, distribute or exchange all or a portion of its Alibaba shares, including in advance of selling other Fund assets, to return capital to its stockholders or to seek to reduce any discount or increase any premium from net asset value at which the Fund's common stock may trade if the Board believes the benefit to stockholders would outweigh the cost, including any taxes payable by the Fund, of doing so. The Fund also may sell such shares to satisfy its obligations to creditors or to pay expenses.

No assurance can be given that all or any portion of the Fund's assets will be sold or licensed, that any sales will be at prices equal to or greater than the prices at which the Fund values such assets for purposes of calculating its net asset value or that the Fund will achieve its investment objective. The Fund may hold all or any portion of its assets, including cash, for an indefinite period of time. The Fund does not currently anticipate making new investments other than for ordinary course cash management purposes or to protect or enhance the value of the Fund's assets held immediately after the completion of the Sale Transaction. The Fund's investment objective is not fundamental and may be changed without notice to stockholders.

Stock Information

Altaba Inc. (AABA) - NASDAQ

Adjusted NAV per share and the Discount to Adjusted NAV are as of the close of business for the preceding week.

  • Adjusted NAV per share (6) $98.00
  • Discount to Adjusted NAV (6) 27.6%