© 2018 Altaba Terms and Privacy

The Fund invests its excess cash in money market funds, time deposits, and liquid debt securities of the U.S. and foreign governments and their agencies, and high credit-quality corporate issuers which are classified as marketable debt securities and cash equivalents.

383,565,416 ordinary shares of Alibaba Group Holding Limited ("Alibaba").

2,025,923,000 shares of common stock of Yahoo Japan Corporation ("Yahoo Japan").

Excalibur IP: All of the equity interests in Excalibur IP, LLC, a wholly-owned subsidiary of the Fund that owns a portfolio of patent assets.

Minority Interests: Investments in certain additional companies (the "Minority Investments") which include Hortonworks, Inc., Gomaji Corp., Ltd, SeatGeek, Inc., Protagenic Therapeutics, Inc, Eastman Kodak Company, and Paperless Inc.

Total liabilities include Convertible notes, Other liabilities and Deferred tax liabilities on unrealized appreciation.

($ in 000's, except per share amounts) March 31, 2018 Current
Cash & marketable securities (2) $6,835,921
Alibaba Group Holding Limited $70,399,596 $73,180,446
Yahoo Japan Corporation $9,416,692 $6,543,731  
Other $1,632,563
Total assets $88,284,772 $88,192,661
Deferred tax liabilities on unrealized appreciation $16,709,235
Margin loan payable $3,011,077 (1)
Other liabilities $1,764,307
Convertible notes $1,388,078
Net asset value (NAV) $65,412,075 N/A
NAV per share $79.98 N/A
Adjusted NAV (3) $82,121,310 $82,029,199
Adjusted NAV per share (3) $100.41 $100.29
Adjusted NAV excluding net cash (5) $79,684,544 $79,592,433
Adjusted NAV excluding net cash per share (5) $97.43 $97.31
Discount to Adjusted NAV (4) 26.26% 25.56%
Discount to Adjusted NAV excluding net cash (6) 27.06% 26.36%
Number of shares 817,892

(1) For purposes of these items, the calculation of Adjusted NAV and Adjusted NAV per share utilizes the values included in the Fund's most recently published NAV. The Fund updates these items to reflect changes in value or in the number of shares outstanding only on a quarterly basis when it publishes its NAV and not at any times between such dates.
(2)Cash & marketable securities includes cash, foreign currency, marketable securities and related interest receivable and receivables for investment securities sold.
(3)Adjusted NAV consists of net asset value adjusted to exclude deferred tax liabilities on unrealized appreciation.
(4)Discount to Adjusted NAV reflects the market price discount relative to the Adjusted NAV.
(5)Adjusted NAV excluding net cash reflects Adjusted NAV (less) Cash & marketable securities (plus) Convertible notes and Margin loan payable.
(6)Discount to Adjusted NAV excluding net cash reflects the stock price discount (adjusted for net cash per share) relative to the Adjusted NAV excluding net cash.

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 $1.4 billion, which is the minimum amount necessary to satisfy the Fund's obligations under the Convertible Notes. 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 may, however, 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

$74.66 0.70 (0.93%)

4:00PM EDT

  • Day High$75.57
  • Day Low$74.47
  • 52-Week High$82.45
  • 52-Week Low$56.84
  • Adjusted NAV per share (3) $100.29
  • Discount to Adjusted NAV (4) 25.56%