Quarterly report of portfolio holdings for management investment companies


 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

811-23264

Investment Company Act file number:

 

 

Altaba Inc.

(Exact name of registrant as specified in charter)

 

 

140 East 45 th Street, 15 th Floor

New York, New York 10017

(Address of principal executive offices) (Zip code)

 

 

Arthur Chong

Altaba Inc.

140 East 45 th Street, 15 th Floor

New York, New York 10017

(Name and address of agent for service)

 

 

(646) 679-2000

Registrant’s telephone number, including area code

Date of fiscal year end: December  31

Date of reporting period: March  31, 2018

 

 

 


Item 1. Schedule of Investments.

Altaba Inc.

Unaudited Consolidated Schedule of Investments

As of March 31, 2018

($ in 000’s, except strike prices)

 

Description              Expiration      Principal $ / Shares / Units      Fair Value $  

Affiliated Investments at Fair Value — 122.1%

              

Online Services and e-Commerce

              

Common shares—122.0%

              

Alibaba Group Holding Limited (1)(2)(3)(4)

              383,565,416        70,399,596  

Yahoo Japan Corporation (2)(3)

              2,025,923,000        9,416,692  

Other common shares in affiliated investments at fair value — 0.1%

              

Gomaji Corp., Ltd. (3)

              3,589,942        3,823  

Hortonworks, Inc.—Common Shares (1)

              3,147,383        64,112  

Total Affiliated Investments at Fair Value (Cost — $5,605,188)

                 79,884,223  

Unaffiliated Investments at Fair Value — 0.0%

              

Internet Software & Services

              

Common shares—0.0%

              

SeatGeek, Inc. (1)(5)

              47,463        185  

Total Common Shares (Cost — $9)

                 185  

Preferred shares — 0.0%

              

Paperless Inc.—Series D Preferred (1)(5)

              1,084,430        10,170  

Total Preferred Shares (Cost — $14,000)

                 10,170  

Warrants — 0.0%

              

Internet Software & Services

              

Eastman Kodak Co.—Exercise Price: $14.93 (1)

           9/3/2018        400        —    

Total Warrants (Cost — $0)

                 —    
Fixed Income Securities         Rate % (6)    Final Maturity (7)      Principal $      Fair Value $  

Money Market Funds — 0.5%

              

Fidelity Government and Agency Money Market Fund

      1.49         139,992        139,992  

Invesco Government and Agency Money Market Fund

      1.55         175,032        175,032  

JP Morgan Government and Agency Money Market Fund

      1.56         13,018        13,018  

Total Money Market Investments (Cost — $328,042)

              328,042        328,042  
                                                                                                                                                                                                                

 

2


     Rate Type    Rate % (8)    Final Maturity      Principal $      Fair Value $  

Short Term

              

Corporate Debt — 2.3%

              

Financial — 1.0%

              

American Express Credit Corp

   Fixed    1.80      7/31/2018        20,000        19,954  

American Express Credit Corp

   Fixed    1.88      11/5/2018        23,500        23,403  

American Express Credit Corp

   Fixed    2.13      3/18/2019        15,000        14,921  

American Express Credit Corp

   Floating    2.38 (3 month LIBOR USD + 0.61)      7/31/2018        5,000        5,005  

American Express Credit Corp

   Floating    2.57 (3 month LIBOR USD + 0.78)      11/5/2018        10,000        10,027  

Bank of America N.A

   Fixed    1.75      6/5/2018        25,000        24,967  

BB&T Corp

   Fixed    2.05      6/19/2018        2,657        2,654  

Bank of New York Mellon Corp

   Fixed    1.60      5/22/2018        8,600        8,587  

Bank of New York Mellon Corp

   Fixed    2.10      1/15/2019        10,000        9,956  

Bank of Nova Scotia

   Fixed    1.45      4/25/2018        25,000        24,984  

Berkshire Hathaway Inc.

   Fixed    1.15      8/15/2018        15,000        14,927  

Berkshire Hathaway Finance Corp.

   Fixed    1.30      5/15/2018        20,000        19,972  

Berkshire Hathaway Finance Corp.

   Fixed    5.40      5/15/2018        3,000        3,009  

Berkshire Hathaway Finance Corp.

   Floating    2.81 (3 month LIBOR USD + 0.69)      3/15/2019        5,102        5,130  

Berkshire Hathaway Inc.

   Floating    1.94 (3 month LIBOR USD + 0.15)      8/6/2018        7,907        7,909  

Citibank N.A.

   Fixed    2.00      3/20/2019        5,000        4,968  

Citibank N.A.

   Floating    2.54 (3 month LIBOR USD + 0.34)      3/20/2019        5,000        5,006  

Citibank N.A.

   Floating    2.03 (3 month LIBOR USD + 0.23)      11/9/2018        30,000        30,012  

Fifth Third Bank

   Fixed    2.15      8/20/2018        13,000        12,974  

Jackson National Life Global Funding

   Fixed    1.88      10/15/2018        15,989        15,922  

JPMorgan Chase & Co

   Fixed    1.63      5/15/2018        11,000        10,989  

Keybank N.A.

   Fixed    1.70      6/1/2018        12,235        12,218  

Mass Mutual Global Funding II

   Fixed    2.10      8/2/2018        24,845        24,811  

Metropolitan Life Global Funding I

   Fixed    1.35      9/14/2018        950        945  

Metropolitan Life Global Funding I

   Fixed    1.88      6/22/2018        5,000        4,993  

Metropolitan Life Global Funding I

   Fixed    1.95      12/3/2018        8,695        8,660  

Metropolitan Life Global Funding I

   Floating    2.45 (3 month LIBOR USD + 0.34)      9/14/2018        10,000        10,009  

National Rural Utilities Coop Finance Corp

   Fixed    1.65      2/8/2019        275        273  

National Rural Utilities Coop Finance Corp

   Fixed    10.38      11/1/2018        13,982        14,606  

New York Life Global Funding

   Fixed    1.30      4/27/2018        15,833        15,822  

New York Life Global Funding

   Fixed    1.55      11/2/2018        43,155        42,916  

New York Life Funding

   Fixed    2.10      1/2/2019        15,000        14,928  

New York Life Global Funding

   Floating    2.10 (3 month LIBOR USD + 0.40)      4/13/2018        4,660        4,660  

New York Life Global Funding

   Floating    1.88 (3 month LIBOR USD + 0.18)      7/6/2018        9,250        9,254  

Principal Life Global Funding II

   Fixed    2.25      10/15/2018        14,148        14,110  

Principal Life Global Funding II

   Floating    2.19 (3 month LIBOR USD + 0.30)      5/21/2018        8,690        8,687  

Protective Life Global Funding

   Floating    2.14 (3 month LIBOR USD + 0.42)      3/29/2019        10,000        10,012  

Protective Life Global Funding

   Floating    2.60 (3 month LIBOR USD + 0.55)      6/8/2018        15,000        15,008  

Pricoa Global Funding I

   Fixed    1.60      5/29/2018        24,985        24,948  

Pricoa Global Funding I

   Fixed    1.90      9/21/2018        16,263        16,214  

Royal Bank of Canada

   Fixed    2.20      7/27/2018        10,000        9,990  

Toronto-Dominion Bank

   Fixed    2.63      9/10/2018        25,000        25,029  

USAA Capital Corp.

   Floating    2.00 (3 month LIBOR USD + 0.23)      2/1/2019        2,520        2,521  

U.S. Bancorp

   Fixed    1.95      11/15/2018        28,000        27,915  

U.S. Bancorp

   Floating    2.323 (3 month LIBOR USD + .49)      11/15/2018        12,250        12,275  

Wells Fargo Bank N.A.

   Fixed    1.80      11/28/2018        38,000        37,819  

Westpac Banking Corp

   Fixed    1.95      11/23/2018        28,500        28,378  

Total

              672,991        672,277  
                                                                                                                                                                                                                

 

3


Industrial — 1.3%

              

3M Co.

   Fixed    1.38      8/7/2018        15,000        14,949  

Altera Corp

   Fixed    2.50      11/15/2018        4,500        4,501  

American Honda Finance Corp

   Fixed    1.50      11/19/2018        19,500        19,375  

American Honda Finance Corp

   Fixed    2.13      10/10/2018        20,000        19,931  

American Honda Finance Corp

   Floating    2.16 (3 month LIBOR USD + 0.28)      11/19/2018        11,172        11,182  

Apple Inc.

   Fixed    1.00      5/3/2018        50,000        49,950  

Apple Inc.

   Fixed    1.70      2/22/2019        12,000        11,932  

Apple Inc.

   Floating    2.74 (3 month LIBOR USD + 0.82)      2/22/2019        7,000        7,050  

Apple Inc.

   Floating    2.04 (3 month LIBOR USD + 0.25)      5/3/2018        6,655        6,656  

Boeing Co.

   Fixed    0.95      5/15/2018        7,077        7,065  

Caterpillar Financial Services Corp.

   Fixed    1.80      11/13/2018        18,300        18,234  

Chevron Corp

   Fixed    1.72      6/24/2018        22,000        21,966  

Chevron Corp

   Fixed    1.79      11/16/2018        7,000        6,971  

Chevron Corp

   Floating    2.35 (3 month LIBOR USD + 0.50)      5/16/2018        2,945        2,946  

Cisco Systems Inc.

   Fixed    1.65      6/15/2018        44,000        43,966  

Comcast Corp

   Fixed    5.70      5/15/2018        2,500        2,510  

Daimler Finance North America LLC

   Fixed    2.00      8/3/2018        8,215        8,202  

General Electric Capital Corp

   Fixed    5.63      5/1/2018        49,394        49,507  

Home Depot Inc.

   Fixed    2.25      9/10/2018        3,400        3,398  

John Deere Capital Corporation

   Fixed    1.60      7/13/2018        6,000        5,988  

John Deere Capital Corporation

   Fixed    1.65      10/15/2018        7,394        7,360  

John Deere Capital Corporation

   Fixed    1.75      8/10/2018        431        430  

John Deere Capital Corporation

   Fixed    5.35      4/3/2018        1,187        1,187  

John Deere Capital Corporation

   Floating    2.27 (3 month LIBOR USD + 0.57)      1/8/2019        12,500        12,546  

Johnson & Johnson

   Floating    2.28 (3 month LIBOR USD + 0.27)      3/1/2019        2,339        2,344  

Lowe’s Companies Inc.

   Floating    2.71 (3 month LIBOR USD + 0.60)      9/14/2018        1,940        1,944  

Medtronic Inc.

   Fixed    1.38      4/1/2018        25,000        25,000  

Microsoft Corp

   Fixed    1.30      11/3/2018        32,582        32,406  

NBC Universal Enterprise Inc.

   Fixed    1.66      4/15/2018        15,824        15,819  

Oracle Corp

   Fixed    2.38      1/15/2019        5,000        5,000  

Oracle Corp

   Fixed    5.75      4/15/2018        18,580        18,597  

Paccar Financial Corp

   Fixed    1.40      5/18/2018        1,067        1,065  

Paccar Inc.

   Fixed    1.75      8/14/2018        7,600        7,584  

Pepsico Inc.

   Fixed    1.25      4/30/2018        25,000        24,977  

Pepsico Inc.

   Fixed    5.00      6/1/2018        34,400        34,553  

Pfizer Inc.

   Fixed    1.20      6/1/2018        20,000        19,972  

Pfizer Inc.

   Fixed    1.50      6/15/2018        20,000        19,964  

Philip Morris International Inc.

   Fixed    1.63      2/21/2019        30,000        29,698  

Philip Morris International Inc.

   Fixed    5.65      5/16/2018        35,000        35,132  
                                                                                                                                                                                                                

 

4


Qualcomm Inc.

   Fixed    1.40      5/18/2018        36,532        36,481  

Shell International Finance BV

   Fixed    1.63      11/10/2018        4,000        3,980  

Shell International Finance BV

   Fixed    1.90      8/10/2018        8,000        7,987  

Shell International Finance BV

   Fixed    2.00      11/15/2018        20,000        19,952  

Target Corporation

   Fixed    4.88      5/15/2018        5,000        5,013  

Texas Instruments Inc.

   Fixed    1.00      5/1/2018        10,000        9,987  

The Coca-Cola Company

   Fixed    1.15      4/1/2018        31,400        31,400  

Toyota Motor Credit Corporation

   Fixed    1.20      4/6/2018        15,000        14,998  

Toyota Motor Credit Corporation

   Fixed    2.00      10/24/2018        20,000        19,933  

Toyota Motor Credit Corporation

   Floating    1.96 (3 month LIBOR USD + 0.26)      1/9/2019        2,000        2,002  

Toyota Motor Credit Corporation

   Floating    2.12 (3 month LIBOR USD + 0.39)      1/17/2019        6,000        6,012  

Toyota Motor Credit Corporation

   Floating    2.69 (3 month LIBOR USD + 0.82)      2/19/2019        5,359        5,393  

Toyota Motor Credit Corporation

   Floating    2.18 (3 month LIBOR USD + 0.46)      7/13/2018        13,731        13,745  

Wal-Mart Stores Inc.

   Fixed    1.13      4/11/2018        10,000        9,997  

Walt Disney Company

   Floating    2.02 (3 month LIBOR USD + 0.32)      1/8/2019        20,000        20,041  

Total

              819,524        818,778  

Utility — 0.0%

              

Duke Energy Florida LLC

   Fixed    5.7      6/15/2018        1,250        1,257  

Nevada Power Co.

   Fixed    6.5      5/15/2018        2,341        2,350  

Public Service Electric and Gas Co.

   Fixed    5.3      5/1/2018        10,900        10,925  

Wisconsin Electric Power Co.

   Fixed    1.7      6/15/2018        721        720  

Total

              15,212        15,252  

Total Corporate Debt (Cost — $1,510,198)

              1,507,727        1,506,307  
        Commercial Paper — 1.9%         Rate % (9)                     

ABN Amro Funding USA LLC

   Zero Coupon    1.86      7/9/2018        25,000        24,873  

ABN Amro Funding USA LLC

   Zero Coupon    1.86      7/12/2018        30,000        29,843  

ABN Amro Funding USA LLC

   Zero Coupon    1.89      7/16/2018        30,000        29,834  

American Honda Finance Corporation

   Zero Coupon    1.99      5/22/2018        50,000        49,860  

American Honda Finance Corporation

   Zero Coupon    1.81      4/24/2018        50,000        49,943  

American Honda Finance Corporation

   Zero Coupon    2.01      6/7/2018        30,000        29,888  

BNP Paribas

   Zero Coupon    1.82      8/6/2018        30,000        29,808  

BNP Paribas

   Zero Coupon    1.87      9/10/2018        30,000        29,750  

BNP Paribas

   Zero Coupon    1.88      9/12/2018        25,000        24,788  

Cooperatieve Rabobank U.A.

   Zero Coupon    1.89      9/7/2018        30,000        29,752  

Cooperatieve Rabobank U.A.

   Zero Coupon    1.90      9/12/2018        30,000        29,743  

Cooperatieve Rabobank U.A.

   Zero Coupon    1.90      9/13/2018        25,000        24,785  

Credit Suisse AG

   Zero Coupon    2.02      9/28/2018        1,900        1,881  

Credit Suisse AG

   Zero Coupon    1.84      5/8/2018        35,000        34,934  

Credit Suisse AG

   Zero Coupon    1.99      9/5/2018        30,000        29,742  

Credit Suisse AG

   Zero Coupon    1.98      9/10/2018        30,000        29,735  

Credit Suisse AG

   Zero Coupon    2.00      9/12/2018        23,000        22,793  

ING (U.S.) Funding LLC

   Zero Coupon    2.09      6/7/2018        20,000        19,923  
                                                                                                                                                                                                                

 

5


ING (U.S.) Funding LLC

   Zero Coupon    1.83      7/10/2018        15,000        14,924  

ING (U.S.) Funding LLC

   Zero Coupon    1.87      7/16/2018        30,000        29,836  

ING (U.S.) Funding LLC

   Zero Coupon    1.89      7/24/2018        19,000        18,887  

J.P. Morgan Securities LLC

   Zero Coupon    2.02      9/5/2018        21,000        20,817  

J.P. Morgan Securities LLC

   Zero Coupon    2.04      9/4/2018        15,000        14,869  

Landesbank Baden-Wurttemberg

   Zero Coupon    2.00      5/22/2018        50,000        49,859  

Landesbank Hessen-Thuringen Girozentrale

   Zero Coupon    2.16      6/7/2018        50,000        49,801  

Mizuho Bank, Ltd.

   Zero Coupon    1.94      5/22/2018        50,000        49,863  

Mizuho Bank, Ltd.

   Zero Coupon    1.90      7/24/2018        30,000        29,821  

National Securities Clearing Corporation

   Zero Coupon    1.91      5/22/2018        50,000        49,865  

Nissan Motor Acceptance Corporation

   Zero Coupon    2.01      6/7/2018        15,000        14,944  

Nissan Motor Acceptance Corporation

   Zero Coupon    1.83      4/24/2018        45,000        44,948  

PepsiCo, Inc.

   Zero Coupon    1.76      4/20/2018        50,000        49,954  

Simon Property Group, L.P.

   Zero Coupon    1.84      4/24/2018        20,000        19,977  

Sumitomo Mitsui Trust Bank Ltd

   Zero Coupon    2.11      6/7/2018        65,000        64,747  

Sumitomo Mitsui Trust Bank Ltd

   Zero Coupon    1.98      8/6/2018        25,000        24,827  

The Coca-Cola Company

   Zero Coupon    1.72      5/16/2018        22,000        21,953  

The Coca-Cola Company

   Zero Coupon    1.37      4/9/2018        25,000        24,992  

Toronto Dominion Holdings (U.S.A.), Inc.

   Zero Coupon    1.43      4/5/2018        30,000        29,995  

Toyota Motor Credit Corporation

   Zero Coupon    2.05      6/7/2018        50,000        49,810  

Walmart Inc.

   Zero Coupon    1.83      4/24/2018        35,000        34,959  

Total Commercial Paper (Cost — $1,231,507)

              1,236,900        1,231,523  

Certificates of Deposits — 1.6%

      Rate % (8)         

ASB Finance Limited

   Floating    1.93 (1 month LIBOR USD + 0.19)      6/12/2018        50,000        50,000  

Bank of Montreal

   Floating    2.58 (3 month LIBOR USD + 0.40)      6/18/2018        11,000        10,998  

Bank of Montreal

   Fixed    1.73      4/9/2018        8,000        8,000  

Bank of Nova Scotia

   Fixed    1.71      4/4/2018        25,000        25,000  

Bank of Nova Scotia

   Floating    1.86 (3 month LIBOR USD + 0.13)      4/18/2018        28,500        28,500  

Barclays Bank PLC

   Fixed    2.22      6/7/2018        50,000        50,000  

BNP Paribas

   Floating    1.99 (1 month LIBOR USD + 0.20)      7/16/2018        35,000        35,000  

BNP Paribas

   Fixed    1.76      10/26/2018        50,000        50,000  

Canadian Imperial Bank of Commerce

   Floating    2.11 (3 month LIBOR USD + 0.39)      7/13/2018        3,000        2,999  

Canadian Imperial Bank of Commerce

   Fixed    1.79      8/22/2018        35,000        35,000  

Canadian Imperial Bank of Commerce

   Fixed    2.00      9/17/2018        30,000        30,000  

Citibank N.A.

   Fixed    1.83      6/18/2018        35,000        35,000  

Cooperatieve Rabobank U.A.

   Floating    1.88 (1 month LIBOR USD + 0.17)      5/8/2018        16,000        16,000  

Credit Agricole Corporate and Investment Bank

   Floating    1.95 (1 month LIBOR USD + 0.21)      7/11/2018        35,000        35,000  

Credit Agricole Corporate and Investment Bank

   Floating    2.28 (3 month LIBOR USD + 0.56)      7/13/2018        6,910        6,910  

Credit Agricole Corporate and Investment Bank

   Fixed    1.57      8/10/2018        10,000        9,980  

Credit Industriel ET Commercial

   Floating    1.93 (1 month LIBOR USD + 0.19)      7/10/2018        25,000        25,000  

Credit Suisse AG

   Fixed    1.86      11/9/2018        50,000        50,000  

DNB Bank ASA

   Floating    1.85 (1 month LIBOR USD + 0.16)      8/6/2018        35,000        35,000  

DZ Bank AG Deutsche Zentral-Genossenschaftsbank

   Fixed    1.70      4/10/2018        35,000        35,000  
                                                                                                                                                                                                                

 

6


ING (U.S.) Funding LLC

   Floating    1.85 (1 month LIBOR USD + 0.19)      8/1/2018        14,000        14,000  

ING (U.S.) Funding LLC

   Floating    1.89 (1 month LIBOR USD + 0.17)      7/9/2018        35,000        35,000  

Mizuho Bank, Ltd

   Fixed    1.73      4/10/2018        34,500        34,500  

Natixis

   Fixed    2.20      6/5/2018        50,000        50,000  

Natixis

   Floating    2.09 (3 month LIBOR USD + 0.30)      5/8/2018        2,500        2,500  

Natixis

   Fixed    1.81      11/20/2018        50,000        50,000  

Oversea-Chinese Banking Corporation Limited

   Fixed    1.72      4/11/2018        35,000        35,000  

Royal Bank of Canada

   Floating    1.87 (1 month LIBOR USD + 0.18)      8/6/2018        35,000        35,000  

Skandinaviska Enskilda Banken AB

   Floating    1.89 (1 month LIBOR USD + 0.15)      7/10/2018        35,000        35,000  

Societe Generale

   Floating    1.75 (1 month LIBOR USD + 0.20)      7/9/2018        35,000        35,000  

Standard Chartered Bank

   Floating    1.94 (1 month LIBOR USD + 0.22)      7/9/2018        35,000        35,000  

Sumitomo Mitsui Trust Bank Ltd

   Fixed    1.76      5/1/2018        25,000        25,000  

The Norinchukin Bank

   Floating    1.94 (1 month LIBOR USD + 0.20)      7/10/2018        35,000        35,000  

UBS AG

   Fixed    1.53      5/4/2018        33,000        33,000  

Wells Fargo Bank N.A.

   Floating    2.10 (1 month LIBOR USD + 0.22)      8/9/2018        15,000        15,000  

Total Certificates of Deposits (Cost — $1,042,388)

              1,042,410        1,042,387  
                                                                                                                                                                                                                

 

7


Agency Bonds — 0.2%

              

Federal Farm Credit Banks Funding Corp

   Fixed    0.94      6/20/2018        10,000        9,980  

Federal Home Loan Banks

   Fixed    0.63      8/7/2018        20,300        20,208  

Federal Home Loan Banks

   Fixed    1.15      6/22/2018        20,000        19,970  

Federal Home Loan Mortgage Corp

   Fixed    1.05      7/27/2018        20,000        19,950  

Federal Home Loan Mortgage Corp

   Fixed    1.35      1/25/2019        20,000        19,872  

Federal National Mortgage Association

   Fixed    0.85      7/13/2018        20,000        19,940  

Total Agency Bonds (Cost — $110,292)

              110,300        109,920  

U.S. Government Debt — 3.2%

              

United States Treasury

   Fixed    0.75      4/30/2018        15,000        14,990  

United States Treasury

   Fixed    0.88      5/31/2018        26,800        26,764  

United States Treasury

   Fixed    2.38      5/31/2018        33,000        33,035  

United States Treasury (4)

   Fixed    0.75      9/30/2018        702,242        698,155  

United States Treasury

   Fixed    0.75      10/31/2018        47,600        47,265  

United States Treasury (4)

   Fixed    1.50      12/31/2018        650,990        648,167  

United States Treasury (4)

   Fixed    1.13      2/28/2019        655,864        650,074  

Total U.S. Government Debt (Cost — $2,119,368)

              2,131,496        2,118,450  

Sovereign Government Debt — 0.0%

              

Asian Development Bank

   Floating    1.83 (1 month LIBOR USD + 0.02)      6/18/2018        12,236        12,234  

Total Sovereign Government Debt (Cost — $12,236)

              12,236        12,234  

Total Short Term Fixed Income Securities (Cost — $6,025,992) — 9.2%

              6,041,069        6,020,821  

Long Term

              

Corporate Debt — 0.6%

              

Financial — 0.3%

              

American Express Credit Corp

   Floating    2.12 (3 month LIBOR USD + 0.33)      5/3/2019        1,501        1,503  

Bank of New York Mellon Corp

   Fixed    2.15      2/24/2020        18,000        17,758  

Berkshire Hathaway Finance Corp.

   Floating    2.03 (3 month LIBOR USD + 0.32)      1/10/2020        2,500        2,505  

Branch Banking and Trust Co.

   Floating    2.17 (3 month LIBOR USD + 0.45)      1/15/2020        4,000        4,010  

Branch Banking and Trust Co.

   Floating    2.30 (3 month LIBOR USD + 0.53)      5/1/2019        12,500        12,542  

Citibank N.A.

   Fixed    2.13      10/20/2020        32,000        31,289  

Citibank N.A.

   Fixed    2.85      2/12/2021        40,000        39,689  

Mass Mutual Global Funding II

   Fixed    1.95      9/22/2020        20,000        19,497  

National Australia Bank LTD

   Fixed    2.63      7/23/2020        10,000        9,914  

National Australia Bank LTD

   Fixed    1.38      7/12/2019        5,067        4,983  

National Rural Utilities Coop Finance Corp

   Floating    1.90 (3 month LIBOR USD + 0.20)      4/5/2019        14,952        14,961  

New York Life Global Funding

   Floating    1.97 (3 month LIBOR USD + 0.27)      4/9/2020        1,555        1,557  

Principal Life Global Funding II

   Fixed    1.50      4/18/2019        3,870        3,819  

Protective Life Global Funding

   Fixed    2.16      9/25/2020        7,000        6,823  

U.S. Bank N.A

   Fixed    2.05      10/23/2020        25,000        24,461  

Wells Fargo Bank N.A.

   Fixed    2.60      1/15/2021        35,000        34,506  

Total

              232,945        229,817  
                                                                                                                                                                                                                

 

8


Industrial — 0.3%

              

American Honda Finance Corp

   Fixed    2.45      9/24/2020        20,000        19,829  

American Honda Finance Corp

   Fixed    2.65      2/12/2021        12,500        12,434  

American Honda Finance Corp

   Floating    2.05 ( 3 month LIBOR USD + 0.21)      2/12/2021        12,500        12,502  

Apple Inc.

   Floating    1.99 (3 month LIBOR USD + 0.20)      2/7/2020        13,506        13,537  

Apple Inc.

   Floating    1.88 (3 month LIBOR USD + 0.07)      5/11/2020        7,000        6,997  

Chevron Corp

   Floating    2.23 (3 month LIBOR USD + 0.21)      3/3/2020        12,000        12,027  

Cisco Systems Inc.

   Floating    2.54 (3 month LIBOR USD + 0.34)      9/20/2019        11,000        11,043  

Daimler Finance North America LLC

   Fixed    2.30      1/6/2020        18,543        18,313  

Honeywell International Inc.

   Floating    2.05 (3 month LIBOR USD + 0.28)      10/30/2019        3,563        3,574  

Intel Corp

   Floating    1.89 (3 month LIBOR USD + 0.08)      5/11/2020        11,000        11,006  

John Deere Capital Corporation

   Floating    2.39 (3 month LIBOR USD + 0.30)      3/13/2020        8,140        8,161  

Pfizer Inc.

   Fixed    2.10      5/15/2019        8,000        7,970  

Qualcomm Inc.

   Fixed    1.85      5/20/2019        15,000        14,895  

Siemens Financieringsmaatschappij N.V.

   Floating    2.49 (3 month LIBOR USD + 0.34)      3/16/2020        15,000        15,041  

Toyota Motor Credit Corporation

   Floating    1.99 (3 month LIBOR USD + 0.26)      4/17/2020        12,000        12,019  

Total

              179,752        179,348  

Total Corporate Debt (Cost — $410,843)

              412,697        409,165  
                                                                                                                                                                                                                

 

9


Certificates of Deposits — 0.1%

              

DNB Bank ASA

   Floating    2.02 (3 month LIBOR USD + 0.22)      2/10/2020        25,000        25,000  

Svenska Handelsbanken AB

   Floating    1.97 (3 month LIBOR USD + 0.22)      1/22/2020        25,000        25,000  

Total Certificates of Deposits (Cost — $50,000)

              50,000     

 

50,000

 

Total Long Term Fixed Income Securities (Cost — $460,843) —0.7%

              462,697        459,165  
                                                                                                                                                                                                                

 

Call Options (5)(10)    Counterparty      # of Contracts      Strike Price $      Expiration      Notional Amount $      Fair Value $  

Call Options — 0.9%

                 

Altaba Inc.

     JP Morgan        1        53.43        12/1/2018        531,267        159,041  

Altaba Inc.

     Goldman Sachs        1        53.43        12/1/2018        531,267        159,041  

Altaba Inc.

     Bank of America        1        53.43        12/1/2018        531,068        158,982  

Altaba Inc.

     Citibank        1        53.43        12/1/2018        199,200        59,633  

Altaba Inc.

     Morgan Stanley        1        53.43        12/1/2018        199,200        59,633  

Total Call Options (Premiums Paid — $205,706)

                 1,992,002        596,330  

Total Unaffiliated Investments (Cost — $7,054,592)

                 6,831,808        7,414,713  
Investment in Controlled Affiliate                           Units      Fair Value $  

Internet Software & Services

                 

Excalibur IP, LLC (1)(5)

                 3,550        640,000  

Total Investment in Controlled Affiliate (Cost — $0) — 1.0%

                    640,000  
                 

 

 

 

Total Investments — 134.4%

                    87,938,936  

Liabilities for Convertible Notes — (2.1)%

                    (1,388,078

Other Liabilities/Other Assets — (32.3)%

                    (21,138,784
                 

 

 

 

Net Assets Applicable to Common Shares — 100%

                  $ 65,412,074  
                 

 

 

 

 

(1) Non-income producing securities.
(2) The Company is a party to a registration rights agreement with respect to its Alibaba shares. The registration rights agreement contains certain provisions restricting the ability to sell the Alibaba shares in certain circumstances. As of March 31, 2018, some of the Company’s Alibaba shares were held in the form of ordinary shares. The Alibaba ordinary shares would need to be converted to American Depository Shares prior to any sale on the New York Stock Exchange. The Company also is a party to a joint venture agreement relating to Yahoo Japan. The joint venture agreement contains certain provisions restricting the ability of the Company to sell shares of Yahoo Japan in certain circumstances. Altaba commenced open market sales of its Yahoo Japan shares in April 2018, as previously disclosed. For a further description of these investments, see the Fund’s Registration Statement on Form N-2.
(3) Restricted security. Resale is contigent on issuer consent, aggregate holdings equal 122.0% of the net assets of the Fund.
(4) All or a portion of this security has been pledged as collateral in connection with the Fund’s Margin Loan agreement. As of March 31, 2018, the number of Alibaba shares pledged as collateral was 34,125,000 and the total value of securities pledged as collateral for the Margin Loan agreement was $4.6 billion.
(5) Fair-value security. Represents fair value measured in good faith under procedures approved by the Board of Directors, aggregate holdings equal 1.9% of the net assets of the Fund.
(6) Presented rate represents the Money Market Fund’s average 7-day % yield.
(7) Money Market Funds do not have a set maturity date.
(8) Coupon rate %.
(9) Rate presented is Yield as of March 31, 2018.
(10) American-style options.

 

10


Written Warrants (1)(2)(3)    Weighted Average Strike Price $      Expiration (1)      # of Contracts      Fair Value $  

Total Value of Written Warrants (Premiums Received — $124,775)

     67.51        3/1/19—5/24/19        5        (371,976)  

 

(1) European style warrants.
(2) The initial strike price of the written warrants was $71.24. Counterparties to the written warrants may make adjustments to certain terms of the written warrants upon the occurrence of specified events, if the event results in a material change to the trading price of Altaba’s common stock or the value of the written warrants. To date, following the announcement of the Stock Purchase Agreement pursuant to which Altaba (then known as Yahoo! Inc.) sold its operating business to Verizon Communications, Inc., four Counterparties have given Altaba notices of adjustments reducing their warrant exercise prices to a weighted average strike price of $67.51. The adjusted weighted average strike price of $67.51 was used in estimating the fair value of the written warrants as of March 31, 2018. Altaba is challenging the proposed adjustments made by the warrant Counterparties.
(3) Fair-value security. Represents fair value measured in good faith under procedures approved by the Board of Directors, aggregate holdings equal (0.6)% of the net assets of the Fund.

At March 31, 2018, the tax basis cost of the Fund’s investments and derivatives was $14,857,092 and the unrealized appreciation and depreciation were $72,716,104 and ($6,236), respectively, with a net unrealized appreciation of $72,709,868.

 

11


Hierarchy of Fair Value Inputs

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

Level 2—Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3—Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing management’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Fund intends to recognize transfers between Level 1, Level 2, and Level 3 as of the beginning of the reporting period.

The following table reflects the valuation level used in the consolidated schedule of investments as of March 31, 2018 for the Fund’s assets (in thousands):

 

     Level 1      Level 2      Level 3      Total  

Affiliated investments (1)

   $ 79,884,223      $ —        $ —        $ 79,884,223  

Unaffiliated investments:

           

Common shares

     —          —          185        185  

Preferred shares

     —          —          10,170        10,170  

Money market funds

     328,042        —          —          328,042  

Fixed income securities:

           

Corporate debt

     —          1,915,472        —          1,915,472  

Commercial paper

     —          1,231,523        —          1,231,523  

Certificates of deposits

     —          1,092,387        —          1,092,387  

Agency bonds

     —          109,920        —          109,920  

U.S. government debt

     —          2,118,450        —          2,118,450  

Sovereign government debt

     —          12,234        —          12,234  

Call options

     —          —          596,330        596,330  

Investment in controlled affiliate:

           

Excalibur (2)

     —          —          640,000        640,000  
  

 

 

    

 

 

    

 

 

    

 

 

 

Financial assets at fair value

     80,212,265        6,479,986        1,246,685        87,938,936  

Derivative instruments:

           

Written warrants

     —          —          (371,976      (371,976
  

 

 

    

 

 

    

 

 

    

 

 

 

Total financial assets and liabilities at fair value

   $ 80,212,265      $ 6,479,986      $ 874,709      $ 87,566,960  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Level 3 affiliated investments includes common and series A stock warrants.
(2) Excalibur assets relates to the Fund’s patent portfolio. The patents are valued based on an average of market and income approaches from periodic valuation reports conducted by an advisory firm which specializes in such activities.

 

12


The following is a reconciliation of investments for which significant unobservable inputs (Level 3) were used in determining fair value (in thousands):

 

     Total Investments
in Securities
    Affiliated
Investments
    Unaffiliated
Investments
     Call
Options
     Investment in
Controlled
Affiliate
    Written Warrants  

Balance as of January 1, 2018

   $ 967,575     $ 72,389     $ 10,355      $ 495,840      $ 665,000     $ (276,009

Purchases

     —         —         —          —          —         —    

Sales

     —         —         —          —          —         —    

Change in unrealized appreciation (depreciation)

     (20,477     —         —          100,490        (25,000     (95,967

Realized gain (loss)

     —         —         —          —          —         —    

Transfers out of Level 3

     (72,389     (72,389     —          —          —         —    
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Balance as of March 31, 2018

   $ 874,709     $ —       $ 10,355      $ 596,330      $ 640,000     $ (371,976
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

The change in unrealized appreciation (depreciation) attributable to securities owned on March 31, 2018, which were valued using significant unobservable inputs (Level 3) amounted to $(20,477).

 

13


The fair values of Altaba’s Level 1 financial assets and liabilities are based on quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. The fair values of Altaba’s Level 2 financial assets and liabilities are obtained using quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices (e.g., interest rates and yield curves). Altaba utilizes a pricing service to assist in obtaining fair value pricing for the marketable debt securities. The fair value for Altaba’s Level 3 financial assets were obtained using a variety of techniques including Black-Scholes models, market approaches, and income approaches.

The balance for the Fund’s assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2018 was $875 million, net.

 

Type of Investment

   Fair Value at
March 31, 2018

(in thousands)
   

Valuation

Technique

  

Unobservable Inputs

  Range

Unaffiliated investments - common and preferred shares

   $ 10,355     Market approach    Sales multiple   3.98x

Investment in controlled affiliate - Excalibur

   $ 640,000     Market approach   

Number of patents plus

applications pending

  3,550
       

Comparable market

transactions (per

patent in thousands)

  $223 - $387
     Income approach    Discount rate   15.50%

Call options

   $ 596,330     Black Scholes Model    Expected dividend yield   0.02%
       

 

Risk-free interest rate

 

 

2.33%

       

 

Market volatility

 

 

31.45%

       

 

Expected life (in years)

 

 

0.68

Written warrants

   $ (371,976   Black Scholes Model    Expected dividend yield   0.02%
        Risk-free interest rate   2.42%
        Market volatility   31.64% - 32.49%
        Expected life (in years)   1.04

Convertible Senior Notes

In 2013, Altaba issued $1.4375 billion aggregate principal amount of 0.00% Convertible Senior Notes due in 2018. The Convertible Notes are carried at their original issuance value, net of unamortized debt discount, and are not marked to market each period. The approximate estimated fair value of the Convertible Notes as of March 31, 2018 was $1.4 billion. The estimated fair value of the Convertible Notes was determined on the basis of interpolated market prices.

 

14


Quantitative Disclosure of Derivative Holdings

The following tables show additional disclosures related to the Fund’s derivative and hedging activities, including how such activities are accounted for on the Fund’s financial positions. The Fund entered into several transactions to hedge the impact of dilution from potential exercise of the Convertible Notes. In conjunction with the hedge transactions, the Fund sold written warrants to reduce the overall cost of the hedge. These derivatives are not accounted for as hedging instruments.

There is no master netting arrangement policy on these derivatives.

Fair value of derivative instruments as of March 31, 2018 (in thousands):

 

Asset Derivatives

   Statement of Assets and Liabilities
Location
   Call Spread  

Call options

   Unaffiliated investments    $ 596,330  

Written warrants

   Written warrants    $ (371,976

The average quarterly fair value of purchased options during the period from January 1, 2018 to March 31, 2018 was $596 million.

The average quarterly fair value of written warrants during the period from January 1, 2018 to March 31, 2018 was $372 million.

The change in unrealized appreciation (depreciation) on derivatives recognized on the consolidated statement of operations for the period ended March 31, 2018 is as follows (in thousands):

 

     Call options      Written warrants      Total  

Equity contracts

   $ 100,490      $ (95,967    $ 4,523  

 

15


Investments in Affiliates (1)

If the Fund’s holding represents ownership of 5% or more of voting securities of a company, the company is deemed to be an affiliate as defined in the 1940 Act. The Fund had the following transactions during the period from January 1, 2018 to March 31, 2018 with affiliated companies:

 

     Alibaba Group
Holding Limited
     Yahoo Japan
Corporation
     Gomaji Corp.,
Ltd.
    Hortonworks,
Inc. - Common
Shares
    Hortonworks,
Inc. - Common
Warrants
    Hortonworks,
Inc. - Series A
Stock Warrants
 

Balance of shares held at January 1, 2018

     383,565,416        2,025,923,000        3,589,942       3,845,806       476,368       3,250,000  

Purchases

     —          —          —         —         —         —    

Sales

     —          —          —         (4,424,791     —         —    

Converted

     —          —          —         3,726,368       (476,368     (3,250,000

Balance of shares held at March 31, 2018

     383,565,416        2,025,923,000        3,589,942       3,147,383       —         —    

Fair value as of March 31, 2018 (2)

   $ 70,399,596      $ 9,416,692      $ 3,823     $ 64,112     $ —       $ —    

Change in unrealized appreciation (depreciation) (2)

   $ 4,261,411      $ 122,147      $ (789   $ (13,227   $ —       $ —    

Distributions (2)

   $ —        $ 167,989      $ —       $ —       $ —       $ —    

Net realized gain (loss) (2)

   $ —        $ —        $ —       $ 56,530     $ —       $ —    

 

(1) Affiliated issuer, as defined in the Investment Company Act of 1940, as amended.
(2) In thousands.

 

     Excalibur IP, LLC  

Balance of patents held and applications pending at January 1, 2018

     3,587  

Change in patents held

     (37

Balance of patents held and applications pending at March 31, 2018

     3,550  

Fair value as of March 31, 2018 (2)

   $ 640,000  

Change in unrealized appreciation (depreciation) (2)

   $ (25,000

Distributions (2)

   $ —    

Net realized gain (loss) (2)

   $ 4,175  

 

(1) Affiliated issuer, as defined in the Investment Company Act of 1940, as amended.
(2) In thousands.

 

16


Item 2. Controls and Procedures.

 

(a) The Registrant’s Chief Executive Officer and Chief Financial and Accounting Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)) .

 

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)). Filed herewith.

 

17


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  (Registrant):    Altaba Inc.
  By (Signature and Title):   

/s/ Thomas J. McInerney

     Thomas J. McInerney, Chief Executive Officer
  Date:    April 23, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

  By (Signature and Title):   

/s/ Thomas J. McInerney

     Thomas J. McInerney, Chief Executive Officer
  Date:    April 23, 2018
  By (Signature and Title):   

/s/ Alexi A. Wellman

     Alexi A. Wellman, Chief Financial and Accounting Officer
  Date:    April 23, 2018

 

18

Exhibit 99.CERT

CERTIFICATIONS

I, Thomas J. McInerney, certify that:

 

1. I have reviewed this report on Form N-Q of Altaba Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation;

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: April 23, 2018       /s/ Thomas J. McInerney
      Thomas J. McInerney
      Chief Executive Officer


CERTIFICATIONS

I, Alexi A. Wellman, certify that:

 

1. I have reviewed this report on Form N-Q of Altaba Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation;

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: April 23, 2018       /s/ Alexi A. Wellman
      Alexi A. Wellman
      Chief Financial and Accounting Officer