Hedge Fund Research

Milton Financial Market
Research Institute™
Activist Investors - Investment Trends – Market Insight

© 2017 Milton Financial Market Research Institute, LLC Q416 subscribers@miltonfmr.com
Contents

BUY/SELL ACTIVITY........................................................................................................................................ 3
SELECTED HEDGE FUND LETTERS MANAGEMENT COMMENTARY .............................................................. 4
JANA PARTNERS ............................................................................................................................................ 8
ICAHN CAPITAL............................................................................................................................................ 11
FARALLON CAPITAL ..................................................................................................................................... 14
VIKING GLOBAL ........................................................................................................................................... 17
BAUPOST GROUP ........................................................................................................................................ 21
BERKSHIRE HATHAWAY .............................................................................................................................. 26
GREENLIGHT CAPITAL ................................................................................................................................. 30
LONE PINE CAPITAL ..................................................................................................................................... 33
APPALOOSA MANAGEMENT ....................................................................................................................... 36
PAULSON & CO............................................................................................................................................ 40
TIGER GLOBAL MANAGEMENT ................................................................................................................... 44
PERSHING SQUARE CAPITAL ....................................................................................................................... 46
MAVERICK CAPITAL ..................................................................................................................................... 48
THIRD POINT ............................................................................................................................................... 50
BLUE RIDGE CAPITAL ................................................................................................................................... 54
BRIDGER MANAGEMENT ............................................................................................................................ 56
COATUE MANAGEMENT ............................................................................................................................. 58
GLENVIEW CAPITAL MANAGEMENT ........................................................................................................... 61
ARTAL GROUP S.A. ...................................................................................................................................... 63
ARIEL INVESTMENTS ................................................................................................................................... 66
CAMBER CAPITAL MANAGEMENT .............................................................................................................. 68
BROWN CAPITAL MANAGEMENT ............................................................................................................... 70
DREMAN VALUE MANAGEMENT ................................................................................................................ 72
SECTOR GAMMA AS .................................................................................................................................... 75
OKUMUS FUND MANAGEMENT ................................................................................................................. 77
CLARKSTON CAPITAL ................................................................................................................................... 78
EDGEWOOD MANAGEMENT ...................................................................................................................... 80

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LEUCADIA NATIONAL .................................................................................................................................. 82
VGI PARTNERS PTY LTD ............................................................................................................................... 84
POINT 72 ASSET MANAGEMENT ................................................................................................................. 85
HEDGE FUNDS INTERNATIONAL SHORT POSITIONS ................................................................................... 88

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BUY/SELL ACTIVITY

Consensus Position Increases and New Buying Activity

Eclipse Resources Corp. (ECR):

The top buyers of this stock are Point 72 Asset Management with 1.2 million shares held and
Sanders Morris Harris Inc. adding 1.15 million shares to their 4 million shares they already own.
Among the positive catalysts are year-end proved resources which rose 35% to 469B cfe based
on SEC pricing, and by 108% to 1.2T cfe based on forward strip pricing.

Dell Technologies (DVMT):

Current top shareholders are Vanguard Group with 17.2 million shares and Dodge & Cox owning
13.098 million shares. Their networking business grew approximately 2x the market and had its
highest level of revenue in eight quarters, driven by Dell’s open networking strategy and by
winning new service providers and web tech customers.

Twilio Inc. (TWLO):

73 funds are creating new positions vs. 27 funds closing out their position. Twilio ended 2016
with revenues growing 66% to $277.34 million with a GAAP loss of $41.3 million. Twilio's
roller coaster start on the stock markets appears to have settled down. After soaring more than
three times within a few months of listing, the stock appears to have calmed down to more
realistic levels.

Celldex Therapeutics Inc. (CLDX):

Top buyers are KLP Enterprises with 6.8 million shares and FMR LLC increasing their position
by 5 million shares owning a total of 19.32 million shares. The company has multiple "shots on
goal", is well funded at the moment and has solid collaboration partners. The company ended
2016 with just under $190 million in cash & marketable securities which management has guided
is sufficient to fund all current operations through 2018.

Dominion Midstream Partners LP (DM):

18 Funds are creating new positions vs. 9 closing out their positions. The largest position
increases are coming from Tortoise Capital Advisors 4 million shares and Chicksaw Capital
Management with 3.28 million shares. Institutional investors continue to like Dominion
Midstream both because of its 22% guided distribution growth and its large “drop down”
inventory of assets that can be sold from Dominion Resources to Dominion Midstream over time.

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Consensus Position Decreases and New Selling Activity

PDL Biopharm (PDLI):

66 funds reduced their positions vs. 56 funds adding to an existing position. Funds like Oaktree
Capital Management and Mackenzie Financial reduced their positions significantly. The
company has been plagued with debt structure deals gone wrong from loan defaults on interest
and principle payments from companies that owe PLDI money (e.g. Weltstat, LENSAR, etc.).

GNC Holdings (GNC):

According to the last 13 F filings the institutional sentiment for this stock is rapidly deteriorating.
52 funds closed out their positions vs. 26 funds creating new positions. Advent Capital
Management and Neuberger Berman Group sold all of their positions. On March 22nd, Goldman
Sachs reiterated its sell rating and $5 price target. Analyst Stephen Tanal pointed to lower prices
at Amazon.com as the linchpin to his thesis. A few institutional investors we talked to said they
are still short GNC and continue to think the stock is worthless.

Arrowhead Pharmaceuticals (ARWR):

24 funds reduced their position vs. 30 funds adding to an existing position. Baker Bros Advisors,
RTW Investments, RA Capital Management and Orbimed Advisors sold all their shares. In
December 2016, Arrowhead halted clinical trials of its three leading drugs to fight liver diseases
because federal officials raised concerns over the deaths of animals in a separate test, using higher
levels of one of the drugs and administered in a different way. Arrowhead is continuing
development, though, of a similar set of drugs using slightly different technology. The
compounds are based on RNA interference, which aims to silence genes that cause certain
diseases.

SELECTED HEDGE FUND LETTERS MANAGEMENT COMMENTARY

 Boyar Value Capital
Higher Interest Rates?
A more vigorous economy translates into higher interest rates, so most economists are
looking for a few rate hikes in 2017. Our bet is that we will get two increases. If you recall,
The Federal Reserve predicted three rate hikes for 2016, and all we received was one.
What’s more, look for the dollar to continue being the global currency of choice. The
pundits are calling for the euro to trade at parity with the dollar, we are almost there, so
that would not surprise us. But we think the dollar’s run is almost over. Our suggestion?
Plan a European vacation: The Continent is on sale.

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The dramatic rise in interest rates has been a tailwind propelling financial shares, which
increased in value by ~25% during the 4th quarter. How much of this is reflected in the
recent price increase is open for debate, but we think for long-term patient investors,
despite the chance of a temporary pullback, there are many attractive opportunities
remaining in this sector over the long term.

Here’s one last thought about higher interest rates. If the 30-year bond bull market is over,
then bond investors should take note: A 1% rise in rates translates into an ~18% decline
in the value of a 30-year treasury bond. Perhaps your “safe” bonds might not be so safe
after all?

The U.S. Presidential Election Cycle and Stock Market Returns

Because this year’s presidential election was anything but ordinary, historical outcomes
relating to stock market returns and past presidential elections must be viewed with a
healthy degree of skepticism. That said, we’ll note some historically relevant trends. Since
1949, the Dow Jones Industrial Average has increased by an average of 8.3%. However,
under a Republican presidency that number decreases to 6.8%. It is worth noting that when
Republicans have controlled both houses of Congress as well as the Oval Office, the
average percentage change increases to 14.1%.

Investors should take note that the first year of a presidential election cycle has produced
some abysmal events/stock market performance as noted by The Stock Trader’s Almanac
(from which the facts in this section have been sourced):

In the past 26 post-election years, three major wars began: World War I (1917), World War
II (1941), and Vietnam (1965); four drastic bear markets started, in 1929, 1937, 1969, and
1973; 9/11, recession, and continuing bear markets in 2001 and 2009; less severe bear
markets occurred or were in progress in 1913, 1917, 1921, 1941, 1949, 1953, 1957, 1977,
and 1981. Only in 1925, 1985, 1989, 1993, 1997, and 2013 were Americans blessed with
peace and prosperity.

Even more disturbing is that since 1953, performance immediately after an election year
has been dramatically better under Democratic presidential administrations (an average
gain of 13.4%, for a cumulative gain of 93.9%). Under Republican presidential
administrations, the average performance for the first year of the presidency has been a loss
of 1.2%, for a cumulative loss of 10.6%. If 1985 and 1989 are eliminated (both saw a gain
of 27%), the results are dramatically worse.

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Most worrying of all, since 1913, only one positive year has ensued
after a Republican president took control of the White House (in
1921, after

Harding’s election, the DJIA increased by 12%). Under Eisenhower,
the DJIA declined by 3.8%, and after Nixon’s election, it lost 15.2%.
Similarly, when Reagan took office, it dropped by 9.2%, and after
George W. Bush was sworn in, it fell by 7.1%.
If history is any guide, 2017 will not be a pretty year. We are truly in
uncharted territory, so hopefully past performance is not indicative
of future returns in this case.

 Fairfax Financial
Greece

Greece’s economy and inflation stabilized in 2016 and unemployment came down to 23%
from 28% at its high in July 2013. Capital controls and lingering disagreements between
the EU institutions and the IMF on key issues related to Greece’s bailout program continue
to keep the markets at depressed levels. It is now three years since we first made our
investment in Eurobank. Our investment is down 73% from cost but the bank continues to
do well. It earned €192 million during the first three quarters of 2016 and provisions for
loan losses are down 75%. Fokion Karavias, its CEO, and Nikos Karamouzis, its Chairman
continue to do an exceptional job under difficult conditions. The stock trades around 60
euro cents, while book value per share is €2.55 and our cost per share is €2.20. Eurobank’s
market value is only €1.3 billion even though its total assets are €68 billion and its
shareholders’ equity is €5.6 billion.

Hope springs eternal!

George Chryssikos, CEO of Grivalia, continues to build the company by buying first class
commercial properties at discounted prices (not unlike our experience in Dublin with
Kennedy Wilson), while Evangelos Mytilineos, and Ioannis Selalmazidis at Praktiker
continue to build their companies. Grivalia is buying a retail portfolio of 16 supermarkets
in prime residential neighborhoods, with a 10% cash on cash yield, for €16.2 million at a
deep discount to replacement cost, a portfolio that Grivalia had sold in 2005 for €68.5
million! Stock prices in Greece are very depressed! The whole Greek stock market is
valued at $42 billion (not much more than the current market value of Snap!), down 78%

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from its high in 2007, and on average is selling at 50% of book value, while the shares of
the four large banks, including Eurobank, are selling below 0.3 times book value. Greece
should see better days in the future.

 Forester Value Fund
Market Performance vs. FED
The two main drivers of market performance the past few years have been the Fed keeping interest
rates exceptionally low, and corporations buying back their stock. (stock buyback chart). With
product demand growth slow and interest rates low corporations have used their cash flow and
issued debt to buy back stock at unprecedented levels. This has kept GDP growth low as CEOs
have limited capital expenditures due to low demand growth. Several things are happening that
may curtail these buy backs.

Profit margins have been at historically high levels for some time. Much of what Trump is
proposing could boost wages which would hurt profit margins. Globalization has eroded labor’s
share revenues (chart). While globalization makes the world economy more efficient, those gains
are not shared evenly. Trump realizes that corporations don’t vote.

His call to bring jobs back to the US is politically savvy even if it is less efficient. Corporations
have outsourced jobs because it was much cheaper to do so. As some of those jobs are brought
back to the US, expect costs to increase and profit margins to go down. This will limit earnings
growth and the cash flow to buy back stock.

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As more products are produced in the US, expect prices to increase due to the higher costs. Expect
more tariffs, like the current one on steel imports to allow corporations to sell the higher priced
product here in the US. While this is less efficient, it is better for those who now have better jobs
even if they have to pay more for what they consume.
Remember corporations don’t vote, but the people with the better jobs do. That is the root of
populism.

Limiting immigration has a similar impact. It is like a tariff on cheap labor. Hotels, restaurants and
construction companies will complain, but if it lifts wages, those that vote will be happy.

These increasing costs will also increase inflation. If this happens quickly, the Fed is greatly behind
the curve. Not only do they need to raise rates, but they also have a few trillion dollars of excess
liquidity they will need to take off. Deutsche Bank has modeled the impact of Trump plans, ECB
taper and Fed roll off and projects 3.5% 10 year rates by the end 2017. This would imply mortgage
rates of around 5.25%. That is quite a jump from 3% mortgage rates earlier in 2016. The average
home buyer could only afford to pay 25% less for a home at the higher rates. That would be very
negative to the collateral backing all of the mortgages written over the past few years. It also dries
up the fees that come from buying or refinancing homes. It also pinches home flippers and
remodelers, as well as the Home Depots of the world. That is a bad scenario for corporate buy
backs and stock valuations as well.

JANA PARTNERS
Top Buys: Aetna Inc. (AET) call // Bristol Myers Squibb (BMY) // HD Supply Holdings (HDS)
// Salesforce.com Inc. (CRM) // SPDR S&P 500 ETF Index (SPY) call
Top Sells: Johnson Controls Inc. (JCI) // Coca Cola European (CCE) // Marathon Petroleum
(MPC) // Hewlett Packard Ent. (HPE) // Priceline Group Inc. (PCLN)

 Bristol Myers Squibb (BMY) is a new position in Jana Partners portfolio. Barry
Rosenstein started the new position during the December quarter, buying 3.87 million
shares worth $226 million at the end of December. In sharp contrast, Julian Robertson’s
Tiger Management sold off its entire stake of 400,800 shares in the drug giant by the end
of the fourth quarter. Three new independent directors were added to Bristol-Myers’ Board
on the recommendation of JANA Partners in February, alongside the company announcing
a $2 billion share buyback program.
 Comment: Beyond just a buyout target, BMY has the pipeline that makes it a solid
company, but the weakness in its immunotherapy drug Opdivo has created the buying
opportunity, as BMY shares have fallen 25% since the 2016 high.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 8
 Jana Partners initiated holdings in Salesforce.com Inc. (CRM) the purchase prices were
between $68.41 and $77.77, with an estimated average price of $72.57. The stock is now
traded at around $81.95. The impact to the portfolio due to this purchase was 3.8%. The
holdings were 3,169,289 shares as of 2016-12-31. Salesforce ended the year with revenues
growing 26% to $8.39 billion. Subscription and support revenues increased 25% to $7.76
billion and professional services and other revenues grew 38% to $636 million. For the full
fiscal year, it reported an EPS of $0.26.

 Jana Partners added to the holdings in HD Supply Holdings Inc. by 74.01%. The purchase
prices were between $31.4 and $43.73, with an estimated average price of $36.87. The
stock is now traded at around $43.11. The impact to the portfolio due to this purchase was
4.6%. The holdings were 14,500,000 shares as of 2016-12-31. However in the most recent
filing on January the 10th 2017 the fund reported in the most recent SC 13D/A filing the
activist investor trimmed its position by 4.63 million shares down to 9.82 million shares.
Jana Partners says they sold the shares of HD Supply Holdings Inc. and purchased new call
options.
 Comment: HD Supply has continued to grow revenue and expand its margins, leading to a
meaningful outperformance over the last three years relative to the likes of MSC, Fastenal,
Grainger, and Wolseley (WOSYY) (with which it shares more in common).

 The fund has initiated a new activist position buying 6,095,740 shares of Tiffany & Co.
(DE) on February the 14th. Oppenheimer’s Brian Nagel sees this as a good sign. On
Thursday, he reiterated an Outperform rating on Tiffany and raised his price target to $105
from $87.
 Brian Nagel note: In our view, a recent management shake-up at Tiffany and the new, marked
influence of a significant and well-established activist investor at the company makes for a
potential meaningful, longer term positive catalyst for TIF and its shares. Near term, challenges
for TIF are likely to persist and are apt to encourage management to act with extra prudence in
setting initial FY17 (Jan. 2018) guidance. That said, we are increasingly encouraged that a new
perspective in the ranks of TIF senior management and on the company’s board could help to
improve meaningfully operational disciplines at the company, all while prospects for such
developments help to create a floor under shares, even if nearer term fundamentals at the chain
remain soft.

In portfolio activity regarding their activist investments the fund has also filed a 13 D with
the SEC disclosing an increased stake in ConAgra Foods Inc. (CAG) reporting a total of
21,586,352 shares owned (Event Date: 2017-01-04 Date of Filing: 2017-01-06) compared

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 9
to the previous filing of 17,786,352 shares. The reason why they increased their stake lies
in points to margin expansion and benign input cost inflation. There's also the M&A
overhang with food stocks that may or may not be baked into the share price of stocks like
ConAgra Foods.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
CAG CONSUMER STAPLES 17,786,352 $703,450,000 12.34% Q2 2015
HDS INDUSTRIALS 14,500,000 $616,395,000 10.81% Q1 2016
CAG(CALL) CONSUMER STAPLES 6,000,000 $237,300,000 4.16% Q1 2016
TMH HEALTH CARE 5,890,368 $255,936,000 4.49% Q1 2016
LBRDK CONSUMER DISCRETIONARY 5,536,888 $410,117,000 7.19% Q2 2016
TIME CONSUMER DISCRETIONARY 4,999,929 $89,249,000 1.57% Q2 2016
BMY HEALTH CARE 3,872,261 $226,295,000 3.97% Q4 2016
CSC INFORMATION TECHNOLOGY 3,301,829 $196,195,000 3.44% Q4 2014
CRM INFORMATION TECHNOLOGY 3,169,289 $216,970,000 3.80% Q4 2016
SPY(PUT) FINANCE 2,500,000 $558,825,000 9.80% Q2 2016
SEM HEALTH CARE 2,273,398 $30,123,000 0.53% Q3 2016
AET(CALL) HEALTH CARE 2,100,000 $260,421,000 4.57% Q4 2016
UHS HEALTH CARE 2,051,970 $218,289,000 3.83% Q3 2016
LW(CALL) CONSUMER STAPLES 2,000,000 $75,700,000 1.33% Q4 2016
YHOO INFORMATION TECHNOLOGY 2,000,000 $77,340,000 1.36% Q3 2016
LW CONSUMER STAPLES 1,858,373 $70,339,000 1.23% Q4 2016
NUVA HEALTH CARE 1,810,169 $121,933,000 2.14% Q3 2016
WLTW FINANCE 1,539,269 $188,222,000 3.30% Q2 2016
CTSH INFORMATION TECHNOLOGY 1,444,283 $80,923,000 1.42% Q4 2016
MAT(CALL) CONSUMER DISCRETIONARY 1,350,000 $37,193,000 0.65% Q4 2016
VVV MATERIALS 1,319,727 $28,374,000 0.50% Q3 2016
HRS INFORMATION TECHNOLOGY 1,103,024 $113,027,000 1.98% Q2 2016
UTILITIES &
ZAYO TELECOMMUNICATIONS 1,026,541 $33,732,000 0.59% Q4 2016
SPY(CALL) FINANCE 1,000,000 $223,530,000 3.92% Q4 2016
AET HEALTH CARE 892,719 $110,706,000 1.94% Q4 2016
DVMT INFORMATION TECHNOLOGY 750,000 $41,228,000 0.72% Q4 2016
PRXL HEALTH CARE 745,665 $49,005,000 0.86% Q4 2016
FCE/A FINANCE 706,059 $14,714,000 0.26% Q4 2016
YUM CONSUMER DISCRETIONARY 633,101 $40,094,000 0.70% Q4 2016
XLF(CALL) FINANCE 600,000 $13,950,000 0.24% Q2 2016
TDG INDUSTRIALS 581,211 $144,698,000 2.54% Q4 2016
ILMN(CALL) HEALTH CARE 405,400 $51,907,000 0.91% Q4 2016
MCK HEALTH CARE 386,868 $54,336,000 0.95% Q4 2016
ACAD HEALTH CARE 301,243 $8,688,000 0.15% Q3 2016

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DERM HEALTH CARE 241,810 $7,334,000 0.13% Q3 2016
SAGE HEALTH CARE 198,406 $10,131,000 0.18% Q3 2016
NBIX HEALTH CARE 181,296 $7,016,000 0.12% Q3 2016
RDUS HEALTH CARE 172,310 $6,553,000 0.11% Q3 2016
PBYI HEALTH CARE 142,727 $4,382,000 0.08% Q3 2016
RARE HEALTH CARE 128,121 $9,008,000 0.16% Q3 2016
TSLA(PUT) CONSUMER DISCRETIONARY 100,000 $21,369,000 0.37% Q4 2016
BMRN HEALTH CARE 93,923 $7,781,000 0.14% Q3 2016
INCY HEALTH CARE 86,616 $8,685,000 0.15% Q3 2016
GWPH HEALTH CARE 67,198 $7,509,000 0.13% Q3 2016
ADS INFORMATION TECHNOLOGY 59,397 $13,572,000 0.24% Q2 2016
TWTR INFORMATION TECHNOLOGY 0 $0 0.00% Q3 2016
CCE CONSUMER STAPLES 0 $0 0.00% Q2 2016
MON MATERIALS 0 $0 0.00% Q3 2016
USFD CONSUMER DISCRETIONARY 0 $0 0.00% Q2 2016
VIAB CONSUMER DISCRETIONARY 0 $0 0.00% Q3 2016
UTILITIES &
KMI(CALL) TELECOMMUNICATIONS 0 $0 0.00% Q3 2016
SPY FINANCE 0 $0 0.00% Q4 2015
GPK MATERIALS 0 $0 0.00% Q2 2016
MDLZ CONSUMER STAPLES 0 $0 0.00% Q3 2016
PTHN HEALTH CARE 0 $0 0.00% Q3 2016
CSRA INFORMATION TECHNOLOGY 0 $0 0.00% Q4 2015
MPC(CALL) ENERGY 0 $0 0.00% Q2 2016
PCLN CONSUMER DISCRETIONARY 0 $0 0.00% Q3 2016
KATE CONSUMER DISCRETIONARY 0 $0 0.00% Q3 2016
APFH CONSUMER STAPLES 0 $0 0.00% Q3 2016
TWTR(CALL) INFORMATION TECHNOLOGY 0 $0 0.00% Q3 2016
SCTY(PUT) ENERGY 0 $0 0.00% Q3 2016
JCI INDUSTRIALS 0 $0 0.00% Q2 2016
HPE INFORMATION TECHNOLOGY 0 $0 0.00% Q2 2016
MPC ENERGY 0 $0 0.00% Q2 2016
XLE ENERGY 0 $0 0.00% Q3 2016
EMC INFORMATION TECHNOLOGY 0 $0 0.00% Q3 2016
GOOG INFORMATION TECHNOLOGY 0 $0 0.00% Q1 2016

ICAHN CAPITAL
Top Buys: Icahn Enterprises LP (IEP) // HERTZ GLOBAL HLD (HTZ)

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Top Sells: PayPal Holdings Inc. (PYPL) // Freeport-McMoRan Co. (FCX) // Nuance
Communications (NUAN) // Voltari Corp. (VLTC)

Several Democratic senators pressed billionaire investor Carl Icahn to clarify his role as an adviser
to President Donald Trump, saying his position in the administration raised "alarming" questions
about potential conflicts of interest with his stakes in the biofuels and pharmaceutical industries.
The senators, led by Sheldon Whitehouse of Rhode Island, sent a letter to Icahn pointing out that,
as a Trump adviser on regulation, he has made policy proposals that benefit his own investments
- which range from an oil refinery to an nutritional supplement manufacturer.
"We write because we are increasingly concerned about the role you are playing in the Trump
Administration and the possibility that you are breaking federal conflict of interest laws," the seven
senators wrote in the letter, seen by Reuters.

 In a just published Form 13, filed with the SEC, Navistar International Corp (NAV)
reported that Icahn Capital LP has picked up 3,345,991 of common stock as of 2017-03-
17. The acquisition brings the aggregate amount owned by Icahn Capital LP to a total of
3,345,991 representing a 3.41% stake in the company. For those not familiar with the
company, Navistar International Corporation is a holding company whose principal
operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The
Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing
operations) and Financial Services, which consists of NFC and its foreign finance
operations (collectively, Financial Services operations).

 The battle for Herbalife (HLF) is heating up once again. QTR Research most recently
outlined its short thesis on Herbalife's stock ahead of a documentary’s release, a movie
about Pershing Square Capital manager Bill Ackman’s $1 billion short bet on Herbalife
and his drive to expose the company as a pyramid scheme. The company’s largest growth
market, China, appears to be stalling and a newly disclosed SEC Foreign Corrupt Practices
Act investigation and a new joint venture with a China-based company raises questions
about whether the company is still on solid footing in its largest market. Icahn bought
372,324 shares of the multilevel marketing company on March 10, according to Milton
Financial Market Research Institute’s data on March 13 filings. The buy increases his
position in the company by 1.65% to 22,872,324 shares, or a 24.57% stake. Shares of
Herbalife traded for roughly $52 during Icahn’s purchase, 19% higher than the $44 average
price per share he paid for the entire stake. Icahn started the position in the first quarter of
2013 when the price averaged $39 and paid at most $66 in the first quarter of 2014 but for
only 33,515 shares.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 12
 Carl Icahn added to the holdings in Hertz Global Holdings Inc. (HTZ) by 126.17%. The
purchase prices were between $21.34 and $39.66, with an estimated average price of $28.8.
The stock is now traded at around $22.86. The impact to the portfolio due to this purchase
was 1.57%. The holdings were 29,263,869 shares as of 2016-12-31.
 Comment: HTZ and CAR both face a potential existential threat from future deployment
of autonomous vehicles within the car rental segment. There's also significant risk to their
market shares of the present-day car-rental market should Lyft Inc. (Private:LYFT) or
Uber Technologies Inc. (Private:UBER) decide to enter or compete more directly at US
airports, locations that HTZ, CAR and Enterprise Rent-a-Car now thoroughly dominate.

% of Qrt 1st
Stock Sector Shares Held Market Value Portfolio Owned
HRI TRANSPORTS 4,312,860 $173,205,000 0.77% Q2 2016
AGN HEALTH CARE 425,438 $89,346,000 0.40% Q2 2016
WBT INDUSTRIALS 10,582,660 $204,563,000 0.91% Q1 2016
INFORMATION
XRX TECHNOLOGY 99,030,026 $864,532,000 3.86% Q4 2015
INFORMATION
PYPL TECHNOLOGY 33,397,153 $1,318,185,000 5.89% Q3 2015
AIG FINANCE 45,644,982 $2,981,074,000 13.32% Q3 2015
CVRR MATERIALS 5,750,000 $59,800,000 0.27% Q3 2015
FCX MATERIALS 91,236,296 $1,203,406,000 5.38% Q3 2015
LNG ENERGY 32,680,490 $1,353,953,000 6.05% Q2 2015
MTW INDUSTRIALS 10,582,660 $63,284,000 0.28% Q4 2014
HTZ CONSUMER DISCRETIONARY 29,263,869 $630,929,000 2.82% Q3 2014
HLF HEALTH CARE 22,500,000 $1,083,150,000 4.84% Q1 2013
INFORMATION
NUAN TECHNOLOGY 18,378,097 $273,834,000 1.22% Q1 2013
CVI ENERGY 71,198,718 $1,807,735,000 8.08% Q4 2011
NAV INDUSTRIALS 16,272,524 $510,469,000 2.28% Q3 2011
INFORMATION
VLTC TECHNOLOGY 0 $0 0.00% Q3 2010
FDML CONSUMER DISCRETIONARY 138,590,141 $1,428,864,000 6.39% Q2 2008
ARII INDUSTRIALS 11,871,268 $537,650,000 2.40% Q1 2006
IEP INDUSTRIALS 129,999,050 $7,789,543,000 34.82% Q4 2003

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 13
FARALLON CAPITAL
Top Buys: SPDR S&P 500 ETF Index (SPY) call // NXP Semiconductors NV (NXPI) //
Quintiles Transnational (Q) // B/E Aerospace Inc. (BEAV) // VISA Inc. (V)
Top Sells: SPDR S&P 500 ETF Index (SPY) put // LinkedIn Corporation (LNKD) // IMS
HEALTH HLD (IMS) // ITC Holdings Corp. (ITC) // Cognizant Technologies (CTSH)

 Farallon Capital Management increased NXP Semiconductors NV (NXPI) stake by a
whopping 3881% reported in 2016Q4 SEC filing which is clearly an arbitrage play.
Farallon Capital Management acquired 3.11M shares as NXP Semiconductors NV
(NXPI)’s stock declined 4.62%. The Farallon Capital Management LLC holds 3.19M
shares with $312.16M value, up from 80,000 last quarter. NXP Semiconductors NV now
has $36.56B valuation.
 Comment: NXP’s acquisition will help broaden Qualcomm’s scope as areas of focus under
NXP were primarily related to the automotive industry. This will reduce the dependence of
the parent company on smartphone chips, as Qualcomm is seeing rising competition from
Chinese and other Asian manufacturers in this area, which is likely to have its toll on profit
margins in the future. The acquisition of NXP is expected to have an annual revenue
totaling more than $30 billion.

 Farallon Capital upped its stake in Comcast Corp. (CMCSA) to 5,054,220 shares valued
at $ 174,497,000 during the fourth quarter. The position amounts to 2.01% of Farallon
Capital’s total portfolio. Owned by 22 of the top 50 hedge funds, vertically integrated cable
giant Comcast is one of the most interesting stocks in media today and a popular investment
among institutional investors.
 Comment: Comcast owns key content assets including NBC, Bravo, CNBC, and much
more that should allow it to secure the rights to stream cable programming over its coming
mobile network. It also has secured spectrum rights from other telecom companies and is
actively working to buy its own wireless spectrum via the FCC's ongoing auction process.

 According to a recent 13 D filing the fund initiated a new position in Playa Hotels and
Resorts NV (PLYA) buying 32,227,130 shares. With a complex ownership history,
Netherlands based (PLYA) is an owner, operator and developer of all-inclusive resorts in
Mexico and the Caribbean.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 14
 Farallon Capital Management decreased Signet Jewelers Limited (SIG) stake by 30.08%
reported in 2016Q4 SEC filing. Farallon Capital Management sold 904,355 shares as
Signet Jewelers Limited (SIG)’s stock declined 11.43%. The Farallon Capital Management
LLC holds 2.10M shares with $198.18M value, down from 3.01 million last quarter.
Currently there are 89 funds adding to an existing position vs. 52 funds closing out their
position. Notable sellers are Corvex Management, Abram Bison Investments and
Wellington Management Group.

 The fund increased Charter Communications Inc. (CHTR) stake by 89,683 shares to
950,821 valued at $273.76 million in 2016Q4. It also upped Fibrogen Inc. stake by 557,000
shares and now owns 782,000 shares.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
SCTY(PRN) ENERGY 207,662,000 $182,207,000 2.10% Q4 2015
HLF(PRN) HEALTH CARE 108,177,000 $99,165,000 1.14% Q1 2015
STJ HEALTH CARE 8,880,000 $712,087,000 8.20% Q2 2016
VEON UTILITIES & TELECOMMUNICATIONS 7,978,100 $30,716,000 0.35% Q3 2015
SPY(CALL) FINANCE 7,080,000 $1,582,592,000 18.22% Q4 2016
GCVRZ HEALTH CARE 6,827,805 $2,595,000 0.03% Q1 2016
INFO INFORMATION TECHNOLOGY 5,301,062 $187,711,000 2.16% Q1 2016
CMCSA CONSUMER DISCRETIONARY 5,054,220 $174,497,000 2.01% Q4 2016
HDS INDUSTRIALS 4,644,840 $197,452,000 2.27% Q2 2015
EXEL HEALTH CARE 4,465,000 $66,573,000 0.77% Q2 2016
ACAS FINANCE 4,305,000 $77,146,000 0.89% Q3 2016
BEAV INDUSTRIALS 4,085,000 $245,876,000 2.83% Q4 2014
CLUB CONSUMER DISCRETIONARY 4,060,082 $10,150,000 0.12% Q2 2006
SSNC INFORMATION TECHNOLOGY 3,815,869 $109,134,000 1.26% Q4 2015
TMH HEALTH CARE 3,685,000 $160,113,000 1.84% Q4 2016
Q HEALTH CARE 3,634,880 $276,433,000 3.18% Q4 2016
WWAV CONSUMER STAPLES 3,615,000 $200,994,000 2.31% Q4 2016
DVMT INFORMATION TECHNOLOGY 3,451,440 $189,726,000 2.18% Q4 2016
NXPI INFORMATION TECHNOLOGY 3,185,000 $312,162,000 3.59% Q3 2016
MSFT INFORMATION TECHNOLOGY 3,153,885 $195,982,000 2.26% Q3 2013
CTXS INFORMATION TECHNOLOGY 2,680,997 $190,667,000 2.20% Q3 2016
NVET HEALTH CARE 2,648,696 $9,721,000 0.11% Q1 2015
V INFORMATION TECHNOLOGY 2,645,051 $206,367,000 2.38% Q4 2016
SLD REAL ESTATE 2,324,236 $31,261,000 0.36% Q4 2016

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ALR HEALTH CARE 2,245,000 $87,488,000 1.01% Q1 2016
RDUS HEALTH CARE 2,130,000 $81,004,000 0.93% Q2 2014
AMRN HEALTH CARE 2,105,000 $6,483,000 0.07% Q3 2016
SIG CONSUMER DISCRETIONARY 2,102,479 $198,180,000 2.28% Q2 2014
HLF HEALTH CARE 2,099,203 $101,056,000 1.16% Q3 2016
TWX CONSUMER DISCRETIONARY 2,095,000 $202,230,000 2.33% Q4 2016
MJN CONSUMER STAPLES 1,888,453 $133,627,000 1.54% Q4 2016
SPY(PUT) FINANCE 1,804,300 $403,315,000 4.64% Q3 2015
FLT INFORMATION TECHNOLOGY 1,722,439 $243,760,000 2.81% Q1 2015
SBAC UTILITIES & TELECOMMUNICATIONS 1,593,259 $164,520,000 1.89% Q4 2015
FIS FINANCE 1,504,909 $113,831,000 1.31% Q1 2016
ISIL INFORMATION TECHNOLOGY 1,200,000 $26,760,000 0.31% Q3 2016
LILA UTILITIES & TELECOMMUNICATIONS 1,183,333 $25,986,000 0.30% Q2 2016
YHOO INFORMATION TECHNOLOGY 1,160,000 $44,857,000 0.52% Q4 2016
HPP REAL ESTATE 1,159,922 $40,342,000 0.46% Q3 2010
GRFS HEALTH CARE 1,079,874 $17,354,000 0.20% Q1 2015
AGN HEALTH CARE 955,000 $200,560,000 2.31% Q4 2014
CHTR CONSUMER DISCRETIONARY 950,821 $273,760,000 3.15% Q2 2013
PCO UTILITIES & TELECOMMUNICATIONS 821,061 $5,542,000 0.06% Q3 2012
FGEN HEALTH CARE 782,000 $16,735,000 0.19% Q3 2016
H CONSUMER DISCRETIONARY 614,000 $33,930,000 0.39% Q3 2016
HZNP HEALTH CARE 610,000 $9,870,000 0.11% Q4 2016
HUM HEALTH CARE 603,500 $123,132,000 1.42% Q2 2015
TWX(PUT) CONSUMER DISCRETIONARY 570,000 $55,022,000 0.63% Q4 2016
GOOG INFORMATION TECHNOLOGY 389,111 $300,324,000 3.46% Q2 2014
MITL INFORMATION TECHNOLOGY 386,267 $2,627,000 0.03% Q2 2016
AZN HEALTH CARE 365,000 $9,972,000 0.11% Q4 2016
AKAO HEALTH CARE 350,000 $4,557,000 0.05% Q4 2016
BMY HEALTH CARE 310,000 $18,116,000 0.21% Q4 2016
KDMN HEALTHCARE 285,620 $1,427,000 0.02% Q3 2016
LLY HEALTH CARE 270,000 $19,859,000 0.23% Q4 2016
STML HEALTH CARE 257,500 $2,755,000 0.03% Q4 2016
WR UTILITIES & TELECOMMUNICATIONS 245,000 $13,806,000 0.16% Q2 2016
LVLT UTILITIES & TELECOMMUNICATIONS 215,000 $12,117,000 0.14% Q4 2016
AET HEALTH CARE 162,000 $20,090,000 0.23% Q4 2016
ABBV HEALTH CARE 160,000 $10,019,000 0.12% Q4 2016
GWPH HEALTH CARE 147,928 $16,531,000 0.19% Q1 2016
GILD HEALTH CARE 135,000 $9,667,000 0.11% Q4 2016
BCE UTILITIES & TELECOMMUNICATIONS 133,650 $5,779,000 0.07% Q2 2016
PX MATERIALS 128,750 $15,088,000 0.17% Q4 2016

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COL INDUSTRIALS 125,000 $11,595,000 0.13% Q4 2016
PTLA HEALTH CARE 100,000 $2,244,000 0.03% Q4 2016
PCLN CONSUMER DISCRETIONARY 91,551 $134,219,000 1.55% Q1 2012
GLPG HEALTH CARE 90,955 $5,838,000 0.07% Q4 2016
CAB CONSUMER DISCRETIONARY 80,000 $4,684,000 0.05% Q3 2016
ILMN HEALTH CARE 19,000 $2,433,000 0.03% Q4 2016

VIKING GLOBAL
Top Buys: Dow Chemical Co. (DOW) // Deere & Co. (DE) // Microsoft Corp. (MSFT) //
Walgreens Boots (WBA) // Netflix Inc. (NFLX)
Top Sells: Amazon.com Inc. (AMZN) // Teva Pharmaceutical (TEVA) // Air Products & Chem.
(APD) // Southwestern Energy (SWN) // Anadarko Petroleum (APC)
Currently Viking Global is working on building out its sector-focused teams, including financial
and consumer, to expand its coverage of equities. The firm currently covers about 60 percent of
global stocks that trade in excess of $50 million a day.
While Viking believes that the ideal organizational structure consists of a CIO employing a
maximum of 40 percent of capital, Sundheim’s responsibility grew to over half the capital after
there were departures from the investment team. Because the “direct responsibility for such high
portions of capital and staff was an unsustainable load to carry,” Viking is shifting responsibilities
to other money managers, who now manage 60 percent of capital.
 Viking Global acquired a new position in shares of Dow Chemical Co (DOW) during
the fourth quarter. The 5.11% DOW stake was purchased at prices between $52 and $59.
 Comment: On March 27, the European Commission cleared the merger between Dow
Chemical (DOW) and DuPont (DD) under certain conditions. Dow has to divest some
chemical assets and DuPont parts of global pesticide business as well as the majority of
its global crop protection R&D organization. With the European approval, the merger
between Dow Chemical and DuPont has advanced a lot. The concessions that have to made
are not surprising, but the divestiture of DuPont's insecticides means the loss of a highly
profitable business. A clear winner in this context is FMC.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 17
 The fund upped its stake in Gulfport Energy Corp. (GPOR) by a whopping 2,833,927 to
9,133,350 shares. The company now owns 5.8% of total shares available. The Gulfport
Energy bid represented their fourth significant stake in an energy company. Clearly the
fund is betting on an oil price recovery and many institutional investors share the same
view. Currently 149 funds are adding to their existing position vs. 74 funds trimming their
position. Other notable shareholders are Citadel Advisors owning 4.6 million shares,
Magnetar Financial owning 4 million shares and UBS OConnor owning 3.43 million
shares.
 Comment: The balance sheet health of any company plays a key role in its ability to meet
its obligations and maintain the faith of its investment base. For GPOR, the company
currently has $1.46 Billion of cash on the books, which is offset by $276,000 current
liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-
420.23 Million over the past twelve months. Generally speaking, earnings are expected to
grow in coming quarters.

 Andreas Halvorsen's hedge fund firm Viking Global has filed a 13G with the SEC
regarding shares of Calithera Bioscience (CALA). Per the filing, Viking now owns 7.8%
of the company.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 18
 Viking Global Investors LP decreased its position in Mastercard Inc (MA) by 44.0%
during the fourth quarter, according to its most recent disclosure with the Securities and
Exchange Commission. The firm owned 4,304,695 shares of the company’s stock after
selling 3,379,561 shares during the period. Mastercard comprises 2.0% of Viking Global
Investors LP’s portfolio, making the stock its 17th largest position. Viking Global Investors
LP owned approximately 0.40% of Mastercard worth $444,460,000 at the end of the most
recent quarter.

 The fund established a new position in shares of United Technologies Co. (UTX) during
the fourth quarter, according to its most recent filing with the Securities and Exchange
Commission (SEC). The fund acquired 541,446 shares of the company’s stock, valued at
approximately $59,353,000. Viking Global Investors LP owned approximately 0.07% of
United Technologies at the end of the most recent reporting period.

 They upped their position in shares of Walgreens Boots Alliance Inc (WBA) by a
whopping 562.8% during the fourth quarter, according to its most recent 13F filing with
the Securities and Exchange Commission (SEC). The fund owned 7,899,951 shares of the
pharmacy operator’s stock after buying an additional 6,708,040 shares during the period.
Walgreens Boots Alliance comprises 3.0% of Viking Global Investors LP’s holdings,
making the stock its 12th largest position. Viking Global Investors LP owned
approximately 0.73% of Walgreens Boots Alliance worth $653,800,000 at the end of the
most recent reporting period. Other large investors also recently made changes to their
positions in the company. Two Sigma Investments LP raised its stake in shares of
Walgreens Boots Alliance by 5.8% in the fourth quarter.

Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
FB INFORMATION TECHNOLOGY 18,978,163 $2,183,438,000 9.92% Q1 2016
GOOGL INFORMATION TECHNOLOGY 1,807,781 $1,432,576,000 6.51% Q3 2014
MSFT INFORMATION TECHNOLOGY 21,950,056 $1,363,976,000 6.20% Q2 2016
AMZN CONSUMER DISCRETIONARY 1,626,269 $1,219,490,000 5.54% Q2 2015
DOW MATERIALS 19,651,893 $1,124,481,000 5.11% Q4 2016
ECA ENERGY 88,788,457 $1,042,376,000 4.74% Q4 2015
DE INDUSTRIALS 9,311,050 $959,411,000 4.36% Q4 2016
JD CONSUMER DISCRETIONARY 37,681,432 $958,616,000 4.36% Q1 2016
GOOG INFORMATION TECHNOLOGY 1,079,052 $832,834,000 3.78% Q1 2015
NFLX CONSUMER DISCRETIONARY 6,469,312 $800,901,000 3.64% Q3 2015
AVGO INFORMATION TECHNOLOGY 4,418,919 $781,132,000 3.55% Q2 2015

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WBA CONSUMER STAPLES 7,899,951 $653,800,000 2.97% Q4 2013
COG ENERGY 27,013,169 $631,028,000 2.87% Q4 2015
STZ CONSUMER STAPLES 3,937,015 $603,584,000 2.74% Q1 2016
BIIB HEALTH CARE 1,918,812 $544,137,000 2.47% Q4 2015
TMUS UTILITIES & TELECOMMUNICATIONS 8,408,861 $483,594,000 2.20% Q1 2016
MA INFORMATION TECHNOLOGY 4,304,695 $444,460,000 2.02% Q3 2011
V INFORMATION TECHNOLOGY 4,846,485 $378,123,000 1.72% Q3 2016
UNH HEALTH CARE 2,213,236 $354,206,000 1.61% Q4 2016
FOXA CONSUMER DISCRETIONARY 12,287,292 $344,536,000 1.57% Q4 2016
CP TRANSPORTS 2,301,553 $328,593,000 1.49% Q4 2013
SCHW FINANCE 8,057,576 $318,033,000 1.45% Q4 2016
DIS CONSUMER DISCRETIONARY 2,403,665 $250,510,000 1.14% Q4 2016
RICE ENERGY 11,206,758 $239,264,000 1.09% Q2 2016
UNP TRANSPORTS 2,099,301 $217,656,000 0.99% Q4 2016
BAC FINANCE 9,431,935 $208,446,000 0.95% Q3 2016
LYB MATERIALS 2,285,070 $196,013,000 0.89% Q4 2010
ETN INDUSTRIALS 2,495,999 $167,457,000 0.76% Q3 2016
CHK ENERGY 22,863,982 $160,505,000 0.73% Q4 2016
SHPG HEALTH CARE 919,604 $156,682,000 0.71% Q4 2015
LBTYA CONSUMER DISCRETIONARY 4,923,750 $150,618,000 0.68% Q3 2016
HUM HEALTH CARE 737,962 $150,566,000 0.68% Q3 2014
LBTYK CONSUMER DISCRETIONARY 4,923,750 $146,235,000 0.66% Q3 2016
GPOR ENERGY 6,299,375 $136,318,000 0.62% Q4 2015
WYNN CONSUMER DISCRETIONARY 1,418,557 $122,719,000 0.56% Q4 2016
BMRN HEALTH CARE 1,398,457 $115,848,000 0.53% Q1 2016
MMC FINANCE 1,696,801 $114,687,000 0.52% Q4 2015
EVHC HEALTH CARE 1,804,445 $114,203,000 0.52% Q1 2015
RRC ENERGY 3,103,533 $106,637,000 0.48% Q4 2015
ICE FINANCE 1,857,390 $104,794,000 0.48% Q2 2016
GWPH HEALTH CARE 910,831 $101,785,000 0.46% Q2 2016
TJX CONSUMER DISCRETIONARY 1,311,908 $98,564,000 0.45% Q4 2016
XRAY HEALTH CARE 1,680,154 $96,995,000 0.44% Q3 2016
WDC INFORMATION TECHNOLOGY 1,405,015 $95,471,000 0.43% Q4 2016
MFC FINANCE 5,355,525 $95,361,000 0.43% Q4 2016
CNC HEALTH CARE 1,653,652 $93,448,000 0.42% Q2 2016
ALL FINANCE 1,207,455 $89,497,000 0.41% Q4 2016
BABA INFORMATION TECHNOLOGY 973,930 $85,521,000 0.39% Q3 2014
AZN HEALTH CARE 2,859,129 $78,111,000 0.35% Q3 2016
INCY HEALTH CARE 730,452 $73,242,000 0.33% Q3 2016
PGR FINANCE 1,724,942 $61,235,000 0.28% Q4 2016

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UTX INDUSTRIALS 541,446 $59,353,000 0.27% Q4 2016
XOG ENERGY 2,706,555 $54,239,000 0.25% Q4 2016
NUVA HEALTH CARE 695,707 $46,863,000 0.21% Q4 2016
ILMN HEALTH CARE 349,965 $44,810,000 0.20% Q4 2016
WOOF HEALTH CARE 545,862 $37,473,000 0.17% Q4 2016
UHS HEALTH CARE 350,693 $37,307,000 0.17% Q1 2016
ARCH ENERGY 425,101 $33,179,000 0.15% Q4 2016
EDIT HEALTH CARE 1,709,401 $27,744,000 0.13% Q1 2016
TECK MATERIALS 1,309,544 $26,230,000 0.12% Q4 2016
EMR INDUSTRIALS 295,425 $16,470,000 0.07% Q3 2016
WUBA INFORMATION TECHNOLOGY 389,117 $10,895,000 0.05% Q3 2015

BAUPOST GROUP
Top Buys: Dell Technologies Inc (DVMT) // Allergan PLC (AGN) // Synchrony Financial
(SYF) // 21st Century Fox (FOXA) // NorthStar Realty (NRF)
Top Sells: Cheniere Energy Inc (LNG) // EMC Corporation (EMC) // PayPal Holdings (PYPL) //
Olin Corp. (OLN) // VMWare, Inc. (VMW)

Seth Klarman thinks that President Trump is going to be a disaster, that his fellow investors are
burying their heads in the sand about this, and that passive investing is just the latest thing to prove
efficient markets theory will never be borne out by inefficient realities.

Incredibly, calling the president “shockingly unpredictable” and dedicated to pursuing policies that
history has already taught us don’t work isn’t the half of Klarman’s take down of the man who
will lead us for the next years. The normally media-shy Klarman made a point of coming out
against Trump publicly back in August, and “nothing he has done or said since then has changed
my mind.”

“As of mid-August, $13.4 trillion of debt worldwide (largely sovereign) traded at negative
interest rates, a mystifying and unprecedented circumstance in which bondholders willingly
obligate themselves to pay interest to issuers for the privilege of tying up their capital for a
significant interval while still bearing the risk of default.

Investors were willing to overlook political uncertainty and a slow-motion banking crisis in Italy,
including the real prospect of a Euro-skeptic political party taking control. Days later, tranches
of Saudi Arabian debt, including a 30-year offering at 4.5%, were even more oversubscribed,
despite an oil price slump that has devastated the Saudi economy and upended its fiscal

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 21
situation. And the following week, Austria (Austria!) floated a 70-year issue that was gobbled up
despite paying a paltry 1.5% coupon….

Anyone who bet on “lower for longer” will have locked in “inadequate for longer,” an
insufficient return not just for a while but for a career, for a lifetime.”

 Baupost Group LLC MA increased its stake in shares of Allergan plc (AGN) by 71.5%
during the fourth quarter, according to its most recent filing with the SEC. The fund owned
3,432,603 shares of the company’s stock after buying an additional 1,430,625 shares during
the period. Allergan plc makes up approximately 9.4% of Baupost Group LLC MA’s
investment portfolio, making the stock its 4th largest position. Baupost Group LLC MA
owned approximately 0.92% of Allergan plc worth $720,881,000 at the end of the most
recent quarter.
 Comment: Allergan's huge and promising pipeline is maybe the reason why the market
doesn't care about the difference between GAAP and Non-GAAP earnings and the
adjustments that the company should make. The bet is clearly on Allergan's future growth
and not just on the current sources of revenue.

 Theravance Biopharma Inc. (TBPH) stock has surged by 90% in previous reporting
period Q3. Baupost Group held 7.35 million shares of Theravance Biopharma worth
$266.40 million at the end of the third quarter. In the most recent quarter it all boiled down
to a ping pong game increasing the position by 22,649,009 shares and shortly after that
decreasing their position by about 20 million shares.
 Comment: Theravance expects operating loss (excluding share-based compensation) in
the range of $195.0 to $205.0 million in 2017. Following the release, investors have
witnessed a downward trend in fresh estimates. There have been two downward revisions
for the current quarter. In the past month, the consensus estimate also shifted downward
by 10.4% due to these changes.

 PayPal Holdings (PYPL) position was established in Q3 2015 as a result of the spin-off
of PayPal from eBay (EBAY) that closed in July 2015. Klarman had 9.3M shares of eBay
and received the same number of PayPal shares. He also increased the stake by 17%
immediately after the transaction. PYPL started trading at $36.71 and currently trades at
$42. Q1 2016 saw a 37% reduction at prices between $31 and $41.50, and that was
followed with another 20% reduction the following quarter at prices between $34 and
$40.50. The pattern continued last quarter with a 12% further sale at prices between $36
and $41. The remaining 3% portfolio stake was sold this quarter at prices between $38 and
$44. Currently there are 147 funds creating new positions vs. 374 funds reducing their

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 22
position. Other notable sellers are Oppenheimer Funds, Magellan Asset Management and
Deutsche Bank AG.

 ChipMOS (IMOS) is a small 1.06 % of the US long portfolio position established in Q2
2013 at prices between $12.30 and $20. The stake was increased by 19% the following
quarter at prices between $15 and $21. The last significant activity was in Q3 2015: a 14%
increase at prices between $15.39 and $22. In the most recent quarter 13 funds increased
their position vs. 18 funds closing out their position. At the end of last year, Baupost was
the company’s biggest institutional shareholder with a nearly 8% stake in the company.
This investment was worth $49.5 million as of Dec. 31, 2016.
 Comment: Going forward, the most attractive growth catalysts for ChipMOS are services
provided to new markets, including drones, virtual reality and assisted reality. Growth
from these new areas will supplement the progress being made in ChipMOS’s core
businesses. The company saw strong results in memory services last year, led by DRAM
and flash.

Another growth initiative for ChipMOS is to keep up with shifting trends in the
marketplace. For example, in display, demand is moving away from LCD toward newer
technologies like OLED. Demand and utilization have slipped in LCD over the past year,
but this is being offset by significant capacity additions in testing services. Utilization
increased for the fourth quarter and full year, particularly on the testing side of the
business. This could establish a strong tailwind for 2017.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 23
 Dell (DVMT), the VMWare tracking stock, is a fairly large 4.77% portfolio position. It
started trading on last September, following the close of Dell's deal for EMC. Baupost had
a huge stake in EMC, for which they received $24.05 cash and 0.111 shares of DVMT for
each share held. Other notable shareholders are Vanguard Group owning 17,246,581
shares, Dodge&Cox owning 13,098,825 and FMR LLC owning 9,974,915.
 Comment: With all other things going on, Dell Technologies Inc. has been on a run —
rising 16.16 percent in just three months. It looks like traders are happy with the stock. On
the other side, analysts now consider Dell Technologies Inc. a buy, and a technical analysis
of the stock is setting somewhat neutral outlook for now.

 Seth Klarman's hedge fund owns 745,136 shares of Syngenta (SYT) with a market value
of $59.9 million. Syngenta is a globalized agriculture company that specializes in the
production of agricultural chemicals and seeds. The company was created in 2000 with the
merger of Novartis Agribusiness and Zeneca Agrochemicals. The company is expecting
2017 to be a year of stabilization for the agricultural industry. Growth is expected to resume
after that. Syngenta is expecting a ~3 % sales CAGR in the mid/long term. 44 funds are
creating new positions vs. 30 funds closing out their position.

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Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
LNG ENERGY 21,726,340 $900,122,000 11.74% Q1 2014
VSAT INFORMATION TECHNOLOGY 13,158,137 $871,332,000 11.36% Q2 2008
SYF FINANCE 20,665,000 $749,520,000 9.77% Q3 2016
AGN HEALTH CARE 3,432,603 $720,881,000 9.40% Q1 2016
FOXA CONSUMER DISCRETIONARY 19,137,469 $536,615,000 7.00% Q3 2015
PBF ENERGY 15,724,175 $438,390,000 5.72% Q3 2013
DVMT INFORMATION TECHNOLOGY 6,652,459 $365,686,000 4.77% Q4 2016
AR ENERGY 14,505,881 $343,064,000 4.47% Q3 2014
TBPH HEALTH CARE 9,273,991 $295,655,000 3.85% Q2 2014
CLNS FINANCE 18,705,000 $279,079,000 3.64% Q3 2016
NRF REAL ESTATE 14,577,134 $220,844,000 2.88% Q3 2016
FOX CONSUMER DISCRETIONARY 7,278,100 $198,328,000 2.59% Q3 2015
VRTV MATERIALS 3,044,385 $163,636,000 2.13% Q3 2014
INVA HEALTH CARE 14,931,483 $159,767,000 2.08% Q1 2008
KERX HEALTH CARE 25,791,678 $151,139,000 1.97% Q1 2014
CLNY REAL ESTATE 6,959,017 $140,920,000 1.84% Q3 2016
MCK HEALTH CARE 1,000,000 $140,450,000 1.83% Q4 2016
FWP HEALTH CARE 5,367,300 $80,510,000 1.05% Q4 2014
ATRA HEALTH CARE 5,359,632 $76,107,000 0.99% Q4 2014
CAH HEALTH CARE 1,030,000 $74,129,000 0.97% Q4 2016
BATRK CONSUMER DISCRETIONARY 2,994,010 $61,647,000 0.80% Q2 2016
AIG-W FINANCE 2,594,317 $60,863,000 0.79% Q1 2013
SYT MATERIALS 745,136 $58,903,000 0.77% Q4 2016
LVNTA CONSUMER DISCRETIONARY 1,481,719 $54,631,000 0.71% Q2 2016
CACC FINANCE 244,400 $53,159,000 0.69% Q2 2016
IMOS INFORMATION TECHNOLOGY 3,509,858 $49,524,000 0.65% Q2 2013
GTYHU 4,400,000 $46,200,000 0.60% Q4 2016
CDEV FINANCE 2,407,153 $43,567,000 0.57% Q2 2016
NG MATERIALS 9,500,000 $43,320,000 0.56% Q3 2011
ABC CONSUMER STAPLES 502,474 $39,288,000 0.51% Q4 2016
INVA(PRN) HEALTH CARE 46,230,000 $38,371,000 0.50% Q3 2014
CPAA 3,712,500 $37,979,000 0.50% Q3 2016
TBPH(PRN) HEALTH CARE 30,000,000 $34,059,000 0.44% Q4 2016
PRTK HEALTH CARE 2,044,498 $31,485,000 0.41% Q4 2014
SCAC 2,326,500 $23,265,000 0.30% Q4 2016
CASC HEALTH CARE 4,166,666 $17,958,000 0.23% Q2 2016
BATRA CONSUMER DISCRETIONARY 800,000 $16,392,000 0.21% Q2 2016
LEXEA 395,613 $15,694,000 0.20% Q4 2016
RUN ENERGY 2,848,082 $15,123,000 0.20% Q3 2015

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C/WS/A 62,903,207 $9,561,000 0.12% Q1 2013
TMQ MATERIALS 10,600,758 $5,339,000 0.07% Q2 2012
OREX HEALTH CARE 2,226,839 $3,875,000 0.05% Q3 2015
CPAAW 1,237,500 $2,475,000 0.03% Q3 2016
SCACW 1,163,250 $1,105,000 0.01% Q4 2016

BERKSHIRE HATHAWAY
Top Buys: Apple Inc. (AAPL) // Delta Air Lines Inc.(DAL) // Southwest Airlines Co. (LUV) //
United Continental (UAL) // American Airlines (AAL)
Top Sells: Deere & Co. (DE) // Wal-Mart Stores (WMT) // Verizon Communications (VZ) //
Kinder Morgan Inc. (KMI) // Liberty Media (FWONK)

The legendary investor took fresh aim at Wall Street in his annual letter to Berkshire Hathaway
investors, blasting active fund managers for lining their pockets with fees irrespective of the
performance of their funds and failing to keep up with the market over time.

He meanwhile praised passive investing pioneer and Vanguard founder Jack Bogle for initiating a
sea change in the way Americans invest. The percentage of assets parked in passive stock funds
has swelled above 40%, up from 19% ten years ago, according to Morningstar. "If a statue is ever
erected to honor the person who has done the most for American investors, the handsdown choice
should be Jack Bogle," writes Buffett.
Berkshire Hathaway's 13F stock portfolio value increased from $129B to $148B this quarter. The
largest three holdings are at 48% of the entire portfolio. In addition to his three major insurance
operations, Buffet own’s a collection of smaller companies that primarily write commercial
coverages. In aggregate, these companies are a large, growing and valuable operation that
consistently delivers an underwriting profit, usually one much superior to that reported by their
competitors. Over the past 14 years, this group has earned $4.7 billion from underwriting – about
13% of its premium volume – while increasing its float from $943 million to $11.6 billion.

 Buffet increased its stake in Delta Airlines ((DAL) by a whopping 872% to 60,025,995
shares. Traders are having second thoughts about U.S. airlines, less than five months after
billionaire investor Warren Buffett disclosed major stakes in the biggest carriers.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 26
Berkshire’s decision to drop its decades-old aversion to airlines was based in part on
statements by American Chief Executive Officer Doug Parker that consolidation has
improved the industry’s prospects from the era of bankruptcies and boom-and-bust cycles.
Institutional sentiment is turning bearish 138 funds are creating new positions vs. 381 funds
reducing their position.

 Berkshire initiated a new position in Southwest (LUV) airlines buying 43,203,775 shares.
The jump in oil prices and airline stocks over the past two months indicates that Buffet has
become more comfortable with the global economic outlook. It also implies that he expects
airline unit revenue to return to growth soon, bolstered by tighter capacity discipline.

 Berkshire continued to buy United Continental Holdings (UAL) adding to their stake
538%. They also shuffled around some of their core holdings by trimming the various
stakes. They sold all shares in Deere & Co (DE). Kinder Morgan (KMI) was a very small
0.36% of the 13F portfolio stake established in Q4 2015 at prices between $14.54 and
$32.68. Last quarter saw a ~25% selling at prices between $18 and $23. The remaining
position was disposed of this quarter at prices between $19.50 and $23.

 Monsanto Company (MON) and Sirius XM Holdings (SIRI) are the new stakes this
quarter. The 0.57% MON position was established at prices between $98 and $106, and
the stock currently trades at $112. Currently there are 294 funds adding to an existing
position vs. 379 funds reducing their position. The 0.50% SIRI stake was purchased at
prices between $4.08 and $4.61. 58 funds are creating new positions vs. 46 funds closing
out their position.

 Apple Inc. (AAPL) is a 4.49% of the 13F portfolio stake established in Q1 2016 at prices
between $93 and $110 and increased by 55% the following quarter at prices between $90
and $112. This quarter he upped his stake by 275% buying 72 million of Apple's shares in
the first month of January alone. He also owned up to the fact that Apple is one of the
legendary investor's own stock picks, and not one chosen by his lieutenants. Buffett bought
his most recent stake between Jan. 1 and Jan. 31—the day Apple reported that its sales rose
$2.5 billion, or 3%, in the last three months of 2016, which was higher than expected.
 Comment: Buffett said Apple Chief Executive Tim Cook has done a "terrific job." Buffett's
investment in Apple now amounts to about 2.5% of the company. That makes Buffett, who
for most of his career has shunned tech stocks, Apple's fifth largest outside investor, and
probably its most active. Vanguard and Blackrock, for instance, Apple's No. 1 and No. 2
largest outside investors, mostly own the stock because of their index funds.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 27
 Wal-Mart Stores (WMT) stake was first purchased in 2005. It was built up to a 3%
portfolio stake as of Q1 2016. The last two quarters saw a 76% combined reduction at
prices between $63 and $74. The remaining position was trimmed by 89%.
 Comment: Still, Amazon is running away with the e-commerce prize by some estimates,
the online retailer alone generated half of e-commerce's growth over the 2016 holiday
season. Walmart, as 55-year old behemoth, can only offer limited growth prospects. Buffett
himself seemed to take a dimmer view of traditional retail's prospects at Berkshire's annual
meeting last year when he said of Amazon, "It is a big, big force and it has already
disrupted plenty of people and it will disrupt more," adding that many companies "have
not figured the way to either participate in it, or to counter it."

 Kraft Heinz (KHC) is backed by Berkshire Hathaway and it is run by Warren Buffett's
favorite deal-making partner, Brazilian private equity firm 3G Capital. Four years ago,
Buffett and 3G Capital partnered on a $28 billion takeover of Pittsburgh-based ketchup
giant Heinz. Within two years 3G Capital partner Bernardo Hees, Heinz's CEO, oversaw a
dramatic improvement in the ketchup-maker's profitability. Through plant closings, job
cuts, and a ruthless focus on costs, 3G Capital increased Heinz's earnings before interest,
taxes, depreciation and amortization (EBITDA) by 35% to $2.8 billion, or 800 basis points,
in two years' time. KHC remains the largest portfolio position with 19.21%.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
KHC CONSUMER STAPLES 325,634,818 $28,434,432,000 19.21% Q3 2015
WFC FINANCE 479,704,270 $26,436,503,000 17.86% Q1 2001
KO CONSUMER STAPLES 400,000,000 $16,584,000,000 11.21% Q1 2001
IBM INFORMATION TECHNOLOGY 81,232,303 $13,483,751,000 9.11% Q1 2011
AXP FINANCE 151,610,700 $11,231,321,000 7.59% Q1 2001
PSX ENERGY 80,689,892 $6,972,414,000 4.71% Q2 2012
AAPL INFORMATION TECHNOLOGY 57,359,652 $6,643,394,000 4.49% Q1 2016
USB FINANCE 85,063,167 $4,369,696,000 2.95% Q1 2006
DAL TRANSPORTS 60,025,995 $2,952,679,000 2.00% Q3 2016
CHTR CONSUMER DISCRETIONARY 9,443,491 $2,718,970,000 1.84% Q2 2014
GS FINANCE 10,959,519 $2,624,257,000 1.77% Q4 2013
DVA HEALTH CARE 38,565,570 $2,475,910,000 1.67% Q4 2011
MCO FINANCE 24,669,778 $2,325,620,000 1.57% Q1 2001
LUV TRANSPORTS 43,203,775 $2,153,276,000 1.46% Q4 2016
AAL TRANSPORTS 45,544,854 $2,126,489,000 1.44% Q3 2016
UAL TRANSPORTS 28,951,353 $2,109,975,000 1.43% Q3 2016

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GM CONSUMER DISCRETIONARY 50,000,000 $1,741,999,000 1.18% Q1 2012
USG INDUSTRIALS 39,002,016 $1,126,378,000 0.76% Q1 2001
BK FINANCE 21,671,969 $1,026,818,000 0.69% Q3 2010
VRSN INFORMATION TECHNOLOGY 12,952,745 $985,315,000 0.67% Q4 2012
MON MATERIALS 8,041,784 $846,076,000 0.57% Q4 2016
MTB FINANCE 5,382,040 $841,913,000 0.57% Q1 2001
V INFORMATION TECHNOLOGY 10,562,460 $824,083,000 0.56% Q3 2011
LSXMK CONSUMER DISCRETIONARY 22,236,109 $754,249,000 0.51% Q2 2016
SIRI CONSUMER DISCRETIONARY 166,639,941 $741,547,000 0.50% Q4 2016
COST CONSUMER STAPLES 4,333,363 $693,815,000 0.47% Q1 2001
AXTA MATERIALS 23,324,000 $634,413,000 0.43% Q2 2015
LBTYA CONSUMER DISCRETIONARY 20,180,897 $617,334,000 0.42% Q4 2013
MA INFORMATION TECHNOLOGY 4,934,756 $509,514,000 0.34% Q1 2011
TMK FINANCE 6,353,727 $468,651,000 0.32% Q1 2001
QSR FINANCE 8,438,225 $402,166,000 0.27% Q4 2014
WBC CONSUMER DISCRETIONARY 3,368,394 $357,555,000 0.24% Q3 2012
LSXMA CONSUMER DISCRETIONARY 10,058,800 $347,230,000 0.23% Q2 2016
GE INDUSTRIALS 10,585,502 $334,501,000 0.23% Q1 2006
FOXA CONSUMER DISCRETIONARY 8,951,869 $251,011,000 0.17% Q4 2014
LBTYK CONSUMER DISCRETIONARY 7,346,968 $218,205,000 0.15% Q1 2014
SNY HEALTH CARE 3,905,875 $157,953,000 0.11% Q2 2006
VRSK INDUSTRIALS 1,563,434 $126,904,000 0.09% Q2 2011
WMT CONSUMER STAPLES 1,393,513 $96,320,000 0.07% Q2 2005
UTILITIES &
LILA TELECOMMUNICATIONS 2,714,854 $59,618,000 0.04% Q3 2015
GHC CONSUMER DISCRETIONARY 107,575 $55,073,000 0.04% Q4 2013
JNJ HEALTH CARE 327,100 $37,685,000 0.03% Q1 2006
LILAK CONSUMER DISCRETIONARY 1,284,020 $27,183,000 0.02% Q3 2015
PG CONSUMER STAPLES 315,400 $26,519,000 0.02% Q1 2005
MDLZ CONSUMER STAPLES 578,000 $25,623,000 0.02% Q2 2007
UPS TRANSPORTS 59,400 $6,810,000 0.00% Q1 2006
UTILITIES &
VZ TELECOMMUNICATIONS 928 $50,000 0.00% Q1 2014

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GREENLIGHT CAPITAL
Top Buys: General Motors Co. (GM) call // Syngenta AG ADS (SYT) // Voya Financl Inc.
(VOYA) // Mylan Inc. (MYL) // Rite Aid Corp. (RAD)
Top Sells: Michael Kors Holdings (KORS) // General Motors Co. (GM) // CONSOL Energy Inc
(CNX) // Chemours Co (CC) // Avangrid Inc. (AGR)

Einhorn’s view on the market is driven by his believe that the post-Great Recession easy money
policies have been good for Wall Street but bad for Main Street. He sees the possibility that TP
reverses these policies, which would be good for Main Street but rough on Wall Street. Their Jelly
Donut thesis on monetary policy contends that ultra-low interest rates deprive households (savers)
of income to the point that the harm overwhelms any of the limited benefits. He believes that
raising rates from, say, 0.5% to 2% would give needed income to savers without significantly
impacting corporate investment.

Greenlight’s thoughts on current positioning:

 Long a variety of low-multiple, tax-paying, U.S. value stocks
Corporate tax cuts provide the most benefit to companies that have profits on which to pay taxes.
AMERCO, CC, Dillard’s, and DSW are all generally full federal tax-payers with healthy
profits.

 Long AAPL
AAPL stands to benefit from repatriation of foreign cash and tax reform. The company has over
$200 billion in offshore cash it could bring back to the U.S. AAPL also derives a majority of its
earnings from foreign sources but still accrues GAAP taxes at a 25% rate, which is higher than
many other large tech companies. The lower corporate tax rates proposed as part of repatriation
and tax reform could therefore lead AAPL toward a structurally lower GAAP tax rate going
forward.

 Short oil frackers
Despite repeated claims in their slick presentations, the economics still don’t work when all
investment and corporate costs are taken into account. We thought the well of investors willing
to sink cash into money-losing holes would begin to run dry, but the “drill-baby-drill” attitude
of a TP is likely to lead to additional mal-investment. This will lead to lower commodity prices
and still deeper losses. Further, due to various existing subsidies, oil frackers are generally not
cash tax payers. The proposed corporate tax cuts don’t help much when you don’t pay taxes in
the first place.

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 Short CAT (and a few other similar industrial cyclicals that have moved much
higher post-election).
Every time someone says “infrastructure investment,” investors reflexively buy certain stocks
including CAT. Yes, CAT sells machines that are used in infrastructure, but this represents only
a small part of its business. CAT’s biggest segments are mining and energy. We just completed
a once-in-a-generation boom in iron ore mine development, and horizontal drilling means we
can produce more oil with fewer rigs. Even in a U.S. infrastructure boom, CAT is overpriced.
CAT closed the year at $92.74 or 33x forward earnings.

David Einhorn's US long portfolio value increased from $5.23B to $5.82B this quarter. He had 5
new purchases, 5 additional purchases, sold out of 8 stocks and reduced holdings in 13 stocks.
His Top 10 holdings amount to 70.99% of his total portfolio value. On average Einhorn holds his
Top 10 holdings for 7 quarters.
For Q4 the long portfolio contributed 19.9% to the gross return. The leading winners were
CONSOL Energy (CNX), Chemours Company (CC), Time Warner (TWX), General Motors
(GM), Michael Kors (KORS) and Apple (AAPL). The only significant long loser was
SunEdison. The fund lost 11.7% in the short portfolio. The biggest culprits were the oil frackers,
Amazon (AMZN), Caterpillar (CAT) and Martin Marietta Materials (MLM), which
combined to exceed material gains on Athena health (ATHN) and in the “bubble basket.” Macro
contributed 2.7%, led by gold and natural gas.

 Einhorn increased their General Motors (GM) position. While the bears have been
screaming “peak auto” for the last couple of years, Einhorn thinks a strengthening job
market will sustain the current upcycle and lead to better than expected credit performance
at GM’s finance subsidiary. While the bears also cite long-term concerns over self-driving
cars, he sees a huge intermediate-term opportunity in assisted-driving cars. GM is
Greenlight's largest position at 23% of the portfolio. The institutional sentiment for this
stock is bullish with 156 funds creating new positions vs. 76 funds closing out their
position.

 Apple Inc. (AAPL) is Einhorn's second-largest position at 11.56% of the US long
portfolio. The stake was first purchased in the low $40s price range in 2010.

 Michael Kors Holdings Ltd (KORS) was one of Greenlight Capital’s largest holding at
the end of September 2016. However, the fund sold its entire stake in the luxury retailer,
which had contained 3.07 million shares, during the fourth quarter.

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 Comment: The company has been struggling to grow its sales for the past several quarters
with same store comps declining at a rapid rate. For its most recent quarter, the company
reported mixed numbers and provided a dismal outlook for the coming quarters.

 Greenlight is short Netflix Inc. (NFLX), he believes that its domestic market has matured
and the company risks in net neutrality rules. In addition, the company has not showed that
its large bet on original content is paying off and Greenlight considers that it doesn’t.

 Mylan NV (MYL) is a fairly large 5.68% of the portfolio position established in Q4 2015
at a cost-basis of $45.32. Q2 2016 saw a 70% increase at prices between $38.50 and $49
and that was followed with another 30% increase last quarter at prices between $38 and
$50. This quarter also saw a 35% increase to a total of 8,670,307 shares.

 Rite Aid Corp. (RAD) is upped by 52 % and represents 2.90% of the portfolio position.
Walgreens announced its intention to acquire Rite Aid in October 2015. However, the deal
failed to please the FTC initially, as it would move the market share into the hands of two
major players—CVS Health (CVS) and Walgreens—and reduce competition. FTC ordered
WBA to sell or close at least 5% of the combined WBA-RAD store count. As a result, the
company found a buyer in Fred’s (FRED) and sold 865 (5%) of its stores to the company
in December 2016. However, WBA is still awaiting approval. A recent report from
Bloomberg claimed that WBA was working toward preparing a new deal, which would
involve selling a larger base of Rite Aid stores to Fred’s. On April 6, 2017, Fred’s
confirmed during its earnings call that it would be willing to purchase up to 1,200 Rite Aid
stores. Mike Bloom, Fred’s CEO, stated: “Fred’s Pharmacy remains committed to
purchasing additional assets, including up to 1,200 Rite Aid stores to the extent necessary
to obtain the FTC’s approval of the transaction.”

Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
GM(CALL) CONSUMER DISCRETIONARY 25,000,000 $871,000,000 14.97% Q4 2016
AAPL INFORMATION TECHNOLOGY 5,807,740 $672,827,000 11.56% Q2 2010
AER INDUSTRIALS 12,621,325 $525,174,000 9.03% Q2 2014
GM CONSUMER DISCRETIONARY 13,167,964 $458,772,000 7.88% Q1 2015
MYL HEALTH CARE 8,670,307 $330,772,000 5.68% Q4 2015
TWX CONSUMER DISCRETIONARY 3,310,409 $319,554,000 5.49% Q4 2014
CNX ENERGY 15,403,173 $280,800,000 4.83% Q3 2014
GRBK MATERIALS 24,118,668 $242,393,000 4.17% Q2 2007

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VOYA FINANCE 5,920,853 $232,215,000 3.99% Q2 2013
CC MATERIALS 8,945,144 $197,598,000 3.40% Q4 2015
RAD CONSUMER STAPLES 20,462,962 $168,615,000 2.90% Q2 2016
GDX MATERIALS 7,944,896 $166,207,000 2.86% Q4 2008
YHOO INFORMATION TECHNOLOGY 4,282,100 $165,589,000 2.85% Q4 2014
CPN UTILITIES & TELECOMMUNICATIONS 10,961,000 $125,285,000 2.15% Q2 2016
DDS CONSUMER DISCRETIONARY 1,766,672 $110,753,000 1.90% Q2 2015
CNXC ENERGY 5,488,438 $100,164,000 1.72% Q3 2015
LBTYK CONSUMER DISCRETIONARY 3,294,780 $97,855,000 1.68% Q2 2013
UHAL TRANSPORTS 220,000 $81,311,000 1.40% Q2 2016
SYT MATERIALS 925,000 $73,121,000 1.26% Q4 2016
IAC CONSUMER DISCRETIONARY 937,496 $60,740,000 1.04% Q1 2013
AGR UTILITIES & TELECOMMUNICATIONS 1,572,591 $59,569,000 1.02% Q4 2015
CI HEALTH CARE 435,000 $58,024,000 1.00% Q4 2015
AYA INFORMATION TECHNOLOGY 3,962,684 $56,084,000 0.96% Q2 2016
PVH CONSUMER DISCRETIONARY 614,770 $55,478,000 0.95% Q1 2016
DSW CONSUMER DISCRETIONARY 2,141,206 $48,498,000 0.83% Q4 2015
MON MATERIALS 410,000 $43,135,000 0.74% Q4 2016
FMC MATERIALS 719,600 $40,700,000 0.70% Q2 2016
LBTYA CONSUMER DISCRETIONARY 1,243,018 $38,023,000 0.65% Q2 2013
AA MATERIALS 1,275,000 $35,802,000 0.62% Q4 2016
YELP INDUSTRIALS 865,300 $32,994,000 0.57% Q4 2015
FRED CONSUMER DISCRETIONARY 1,500,000 $27,840,000 0.48% Q4 2016
TPH INDUSTRIALS 2,073,482 $23,804,000 0.41% Q4 2014
QHC HEALTH CARE 2,501,800 $18,188,000 0.31% Q2 2016

LONE PINE CAPITAL
Top Buys: PayPal Holdings Inc. (PYPL) // PNC Financial Services (PNC) // Bank of America
Corp. (BAC) // VISA Inc. (V) // Symantec Corp. (SYMC)
Top Sells: eBay Inc. (EBAY) // MONSTER BEVERAGE CO. (MNST) // Yum! Brands, Inc.
(YUM) // Hilton Worldwide Holdings (HLT) // Dollar Tree Inc. (DLTR)
In its latest 13F filing, Lone Pine Capital reported an equity portfolio worth around $19.16 billion,
down from $22.39 billion a quarter earlier. The top ten holdings constituted almost 45% of its total

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 33
13F portfolio. During the fourth quarter, Stephen Mandel’s fund acquired stakes in seven stocks
and closed six positions.

 Lone Pine Capital reduced its stake in eBay (EBAY) to 1.49% of the portfolio value down
from 4.87% during the fourth quarter. Stephen Mandel was the biggest hedge fund seller
of this stock during the fourth quarter as it pared its holding to $285 million. FMR LLC
and SRS Investment Management were the other large funds which sold a substantial
number of eBay (EBAY) shares.
 Comment: In the last few years, Amazon (AMZN) surpassed eBay significantly in
attracting shoppers. The fast and free shipping offered to Amazon Prime users made those
shoppers prefer Amazon over eBay. Actually, according to Deutsche Bank, Prime users
now account for nearly 60% of Amazon's GMV. This means the fast and free shipping plays
an important role in attracting revenues.

 Lone Pine Capital added 3.35 million shares of Activision Blizzard, Inc. (ATVI) to its
equity portfolio during the fourth quarter and held 20.64 million shares worth $745 million
at the end of December. 112 funds are creating new positions vs. 234 funds reducing their
position.
 Comment: Activision Blizzard, Inc. recently has hired Tim Kilpin, a former employee of
Mattel and Disney, in a move should enhance audience engagement of the $34 billion
entertainment powerhouse. In addition, the company also announced the launch of a newly
created Consumer Products division, which will enable Activision Blizzard, Inc. to expand
its platforms through which it offers its franchises to audiences.

 Lone Pine Capital cut its stake in Dollar Tree, Inc. (DLTR) by 6.07 million shares to 9.31
million shares worth $719 million. The position was initially established in Q3 2015 at
prices between $65 and $82.
 Comment: Dollar Tree mainly gained momentum from its solid fourth-quarter fiscal 2016
results delivered on Mar 1, which marked its second consecutive earnings beat. Other than
this, the company’s solid long-term growth strategies, constant store expansions and
prospects from Family Dollar’s buyout have been the significant growth drivers.

 Mandel established a new position in EnCana Corp. (ECA) buying 20,888,437 shares.
He increased his position in Williams Co. (WMB) by 76% and established a new position
in Rice Energy (RICE) buying 4,196,144 shares. This is clearly a bet on energy sector
recovery.

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 Comment: The reason oil stayed within its lower to mid $50s range was clear cut – the
upside risk of rising oil prices being cancelled out by the downside drag of real (or
perceived) uptick in US production. In fact, since 30 November 2016, day of the last OPEC
meeting, crude has flattered to deceive when it comes to touching $60. Lone Pine capital
is still on the defensive side investing only ~5% of their total portfolio in the above
mentioned energy stocks.

 The fund increased its position in Visa Inc. (V) by 180% after trimming it in Q3. This
stock is becoming a hedge fund favorite with 187 funds creating new positions vs. 97 funds
closing out their position. The company's profit margin is an excellent 38.3%, and it has
been around or above this level for the past three years. Sales growth is a strong 25.13%,
cash flows are a solid $1.28 per share, and its relative strength against the market has been
increasing over the past six months.

 Lone Pine established a strong position in Bank of America (BAC) adding 21,671,362
shares which amounts to 2.50% of their total portfolio value. BAC position was purchased
at prices between $15.50 and $23.

 Steve Mandel initiated a stake in PayPal Holdings Inc. (PYPL). The purchase prices were
between $38.34 and $44.15, with an estimated average price of $40.19. The stock is now
traded at around $41.62. The impact to the portfolio due to this purchase was 2.57%. Other
notable funds are Norges Bank initiation a new position buying 8.7 million shares and
Wellington Management buying an additional 5.3 million shares, they now own a total of
12,830,890 shares.

 Steve Mandel initiated holdings in Symantec Corp. (SYMC). The purchase prices were
between $23.49 and $25.45, with an estimated average price of $24.56. The impact to the
portfolio due to this purchase was 1.65%.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
CHTR CONSUMER DISCRETIONARY 4,715,772 $1,357,765,000 7.09% Q3 2014
STZ CONSUMER STAPLES 6,380,317 $978,166,000 5.11% Q3 2015
AMZN CONSUMER DISCRETIONARY 1,292,728 $969,378,000 5.06% Q3 2015
MSFT INFORMATION TECHNOLOGY 15,213,996 $945,398,000 4.93% Q4 2013
ATVI INFORMATION TECHNOLOGY 20,648,534 $745,619,000 3.89% Q3 2015
EA INFORMATION TECHNOLOGY 9,422,175 $742,091,000 3.87% Q2 2015
NKE CONSUMER DISCRETIONARY 14,396,950 $731,797,000 3.82% Q1 2015
DLTR CONSUMER DISCRETIONARY 9,316,134 $719,019,000 3.75% Q3 2015
EQIX INFORMATION TECHNOLOGY 1,912,684 $683,612,000 3.57% Q1 2014
FB INFORMATION TECHNOLOGY 5,927,908 $682,006,000 3.56% Q3 2014

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 35
BABA INFORMATION TECHNOLOGY 7,619,109 $669,034,000 3.49% Q3 2016
FLT INFORMATION TECHNOLOGY 4,688,835 $663,564,000 3.46% Q2 2013
AVGO INFORMATION TECHNOLOGY 3,563,465 $629,914,000 3.29% Q3 2016
ADBE INFORMATION TECHNOLOGY 5,027,599 $517,591,000 2.70% Q1 2014
V INFORMATION TECHNOLOGY 6,551,477 $511,146,000 2.67% Q4 2014
WMB ENERGY 16,327,936 $508,452,000 2.65% Q3 2016
TDG INDUSTRIALS 2,028,392 $504,988,000 2.64% Q3 2010
PYPL INFORMATION TECHNOLOGY 12,499,315 $493,348,000 2.57% Q1 2016
PNC FINANCE 4,196,144 $490,781,000 2.56% Q4 2016
EXPE CONSUMER DISCRETIONARY 4,317,532 $489,090,000 2.55% Q3 2016
GOOG INFORMATION TECHNOLOGY 627,903 $484,628,000 2.53% Q4 2015
BAC FINANCE 21,671,362 $478,937,000 2.50% Q4 2016
VMC MATERIALS 3,738,010 $467,812,000 2.44% Q1 2015
ULTA CONSUMER DISCRETIONARY 1,797,638 $458,290,000 2.39% Q1 2012
PCLN CONSUMER DISCRETIONARY 304,471 $446,373,000 2.33% Q1 2011
SHPG HEALTH CARE 1,904,306 $324,456,000 1.69% Q2 2016
SYMC INFORMATION TECHNOLOGY 13,271,908 $317,066,000 1.65% Q4 2016
LULU CONSUMER DISCRETIONARY 4,504,208 $292,728,000 1.53% Q4 2015
EBAY INFORMATION TECHNOLOGY 9,605,806 $285,196,000 1.49% Q3 2016
TV CONSUMER DISCRETIONARY 13,533,097 $282,706,000 1.48% Q3 2016
ECA ENERGY 20,888,437 $245,230,000 1.28% Q4 2016
ICE FINANCE 4,225,637 $238,410,000 1.24% Q3 2016
ALGN HEALTH CARE 2,476,534 $238,069,000 1.24% Q3 2016
LNG ENERGY 5,186,332 $214,870,000 1.12% Q2 2014
COMM INFORMATION TECHNOLOGY 3,792,871 $141,095,000 0.74% Q1 2016
RICE ENERGY 3,735,035 $79,743,000 0.42% Q4 2016
HDB FINANCE 1,312,249 $79,627,000 0.42% Q1 2015
SHLD(PUT) CONSUMER DISCRETIONARY 3,500,000 $32,515,000 0.17% Q1 2008
VXX FINANCE 500,000 $12,755,000 0.07% Q4 2016
UVXY(PUT) FINANCE 20,000 $4,375,000 0.02% Q1 2015
VXX(PUT) FINANCE 100,000 $2,551,000 0.01% Q2 2013

APPALOOSA MANAGEMENT
Top Buys: Allergan PLC (AGN) // Teva Pharmaceutical (TEVA) // PNC Financial Services
(PNC) // Pfizer, Inc. (PFE) // Mylan Inc. (MYL)
Top Sells: SPDR S&P 500 ETF Index (SPY) put // Synchrony Financial (SYF) // Whirlpool
Corp. (WHR) // HD Supply Holdings (HDS) // Allstate Corp. (ALL)

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 36
David Tepper’s 13F portfolio value increased from $4.40B to $5.64B this quarter. Allergan plc is
the largest individual stock position representing 15.86% of the portfolio. Tepper sold out of 9
stocks, reduced holdings in 15 stocks and had 21 new purchases in Q4. His Top 10 holdings
represent 58.36% of his total portfolio. In the most recent quarter the fund is heavily invested in
Healthcare (28.82%). Energy sector allocation was trimmed from 24.01 % to 17.23%.
The perfect spread trade:
David Tepper of Appaloosa Management has taken a unique strategy when it comes to the
upcoming French presidential election. According to Bloomberg, the billionaire hedge fund
manager indicated last week that he would buy up European equities thanks to a reduction in
price due to overestimates of risk should ultra-nationalist Marine Le Pen win the election. On
the other hand, he's also buying up French bonds, based on the assumption that investors in that
area are underestimating Le Pen's chances of winning. The result seems to be that Tepper will
stand to gain (and to lose) regardless of what happens in the election.

Tepper is not alone in his complicated bets on the election. Alongside Caspian Capital
Management and Knighthead Capital Management, Tepper's Appaloosa is betting that France
will see its borrowing costs rise in comparison with Germany's in the final push toward the
election, which will take place in April. By shorting French bonds, Tepper is guessing that
inflation will pick up and, ultimately, that interest rates on the euro will also climb at some
point as well.

 Teva Pharmaceutical (TEVA), Pfizer Inc. (PFE) and Mylan NV (MYL) are the new
pharma stocks this quarter. TEVA is a 3.25% position purchased at prices between $35 and
$46 and the stock is now at $35.20. The 2.77% Pfizer stake was established at prices
between $30 and $34. The current institutional sentiment for Pfizer is rather bearish with
164 funds creating new positions vs. 783 funds reducing their position. MYL is a 2.22%
position purchased at prices between $34 and $39 and the stock currently trades at $42.05.
Tepper is heavily bullish the healthcare sector allocating almost a third of its portfolio to
this sector.

 Regions Financial (RF) and Comerica Inc. (CMA) are the two financial stocks
established this quarter. The 1.87% RF position was purchased at prices between $9.87 and
$14.60. Other hedge funds have also recently bought and sold shares of the company. State
Street Corp increased its stake in Regions Financial Corp by 4.5% in the fourth quarter.
State Street Corp now owns 73,217,844 shares of the company’s stock valued at
$1,051,405,000 after buying an additional 3,158,238 shares during the last quarter. LSV
Asset Management increased its stake in Regions Financial Corp by 1.0% in the third
quarter. LSV Asset Management now owns 33,541,284 shares of the company’s stock
valued at $331,052,000 after buying an additional 329,900 shares during the last quarter.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 37
The 1.39% CMA stake was established at prices between $47 and $70. BlackRock
Institutional Trust Company N.A. raised its position in shares of Comerica by 2.1% in the
third quarter. BlackRock Institutional Trust Company N.A. now owns 4,529,890 shares of
the financial services provider’s stock valued at $214,354,000 after buying an additional
92,039 shares in the last quarter.

 Allergan Plc (AGN) is currently the largest position at 15.87% of the portfolio. It was
established in Q4 2015 at prices between $253 and $323. The stake was increased by 85%
the following quarter at prices between $266 and $313 and that was followed by a
whopping 350% increase in Q2 2016 at prices between $202 and $278. This quarter saw
another 250% upped stake. In the most recent quarter we saw 156 funds closing out their
position vs. 156 funds creating new positions. As a reminder, Allergan completed a $5
billion share repurchase by the start of November and at the same time announced a plan
to repurchase an additional $10 billion worth of shares an accelerated stock repurchase
plan. The company ended up repurchasing 40.5 million shares during November for $8
billion for an average share price of $197.50.

 Energy Transfer Equity (ETP) is currently the second largest individual stock position
at 7.59% of the portfolio. The original stake is from Q4 2015 at prices between $28 and
$47. In the most recent quarter we have seen a marginal increase of 2%.
 Comment: Energy Transfer will close on its merger with Sunoco Logistics likely by May
1. The combined companies will be one of the largest MLPs on the public markets, with a
large growth profile. The deal between ETP and SXL has been dubbed the "first Trump
deal". Energy Transfer Equity (ETE) will still be at the helm and Sunoco LP (SUN) will
obviously still be separate from the combination of SXL/ETP. With the massive asset base
that the combined entity will have, those who have owned ETP over the years now have
access to a rather large growth profile.

 PNC Financial (PNC) is a fairly large 4.05% stake that was established last quarter at
prices between $78.50 and $91 and increased by 218% in the current quarter. The
institutional sentiment is bullish with 145 funds creating new positions vs. 48 funds closing
out their position.
 Comment: PNC's absolute growth in the fourth quarter wasn't exciting, but this bank did
better relative to expectations and third quarter results were better than most of its peer
group.

 Qualcomm Inc. (QCOM) 1.62% stake was purchased last quarter at prices between $52
and $68.50 and increased by 55% this quarter at prices between $64 and $70. Other notable
shareholders buying this stock are Norges Bank, Wellington Management and Price T.
Rowe Associates. Institutional sentiment is neutral with 588 funds reducing their position
vs. 579 funds adding to an existing position.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 38
 Comment: QUALCOMM has been in the news a lot lately due to the ongoing
investigations surrounding the company from multiple sources. Once the news of the Apple
lawsuit hit back in February, the stock dropped below $53 a share but has slowly been
grinding higher.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
AGN HEALTH CARE 4,261,406 $894,938,000 15.87% Q4 2015
ETP ENERGY 11,961,842 $428,354,000 7.59% Q4 2015
GOOG INFORMATION TECHNOLOGY 483,000 $372,789,000 6.61% Q2 2014
WPZ ENERGY 9,487,301 $360,802,000 6.40% Q4 2015
FB INFORMATION TECHNOLOGY 2,182,350 $251,079,000 4.45% Q1 2016
PNC FINANCE 1,950,973 $228,186,000 4.05% Q3 2016
SPY(PUT) FINANCE 1,000,000 $223,530,000 3.96% Q3 2016
ALL FINANCE 2,594,834 $192,329,000 3.41% Q3 2015
TEVA HEALTH CARE 5,053,000 $183,171,000 3.25% Q4 2016
PFE HEALTH CARE 4,810,000 $156,229,000 2.77% Q4 2016
OC INDUSTRIALS 2,716,544 $140,065,000 2.48% Q1 2012
MHK CONSUMER DISCRETIONARY 632,164 $126,231,000 2.24% Q1 2016
MYL HEALTH CARE 3,275,000 $124,941,000 2.22% Q4 2016
UTILITIES &
ABY TELECOMMUNICATIONS 5,820,326 $112,623,000 2.00% Q4 2015
TERP ENERGY 8,708,708 $111,559,000 1.98% Q4 2015
HUN MATERIALS 5,715,053 $109,043,000 1.93% Q1 2012
RF FINANCE 7,340,137 $105,404,000 1.87% Q4 2016
WHR CONSUMER DISCRETIONARY 566,936 $103,052,000 1.83% Q2 2012
CFG FINANCE 2,829,750 $100,824,000 1.79% Q3 2016
QCOM INFORMATION TECHNOLOGY 1,400,000 $91,280,000 1.62% Q3 2016
HCA HEALTH CARE 1,145,250 $84,771,000 1.50% Q4 2012
UTILITIES &
KMI TELECOMMUNICATIONS 4,062,996 $84,145,000 1.49% Q4 2015
TPX CONSUMER DISCRETIONARY 1,160,199 $79,218,000 1.40% Q3 2016
CMA FINANCE 1,151,993 $78,462,000 1.39% Q4 2016
WDC INFORMATION TECHNOLOGY 1,120,000 $76,104,000 1.35% Q2 2016
MU INFORMATION TECHNOLOGY 3,250,000 $71,240,000 1.26% Q4 2016
URI INDUSTRIALS 656,862 $69,351,000 1.23% Q4 2016
AAL TRANSPORTS 1,293,367 $60,387,000 1.07% Q4 2016
AMLP FINANCE 4,764,435 $60,032,000 1.06% Q4 2015
LUV TRANSPORTS 1,190,402 $59,330,000 1.05% Q3 2015

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 39
YHOO INFORMATION TECHNOLOGY 1,350,000 $52,205,000 0.93% Q3 2016
AAPL INFORMATION TECHNOLOGY 450,000 $52,119,000 0.92% Q3 2016
CNC HEALTH CARE 785,000 $44,360,000 0.79% Q4 2016
JCP CONSUMER DISCRETIONARY 5,079,886 $42,214,000 0.75% Q4 2016
SUM INDUSTRIALS 1,694,487 $40,312,000 0.71% Q4 2016
HAIN CONSUMER STAPLES 1,016,506 $39,674,000 0.70% Q1 2016
MCK HEALTH CARE 275,000 $38,624,000 0.68% Q4 2016
KMT INDUSTRIALS 1,009,638 $31,561,000 0.56% Q4 2016
BMY HEALTH CARE 375,000 $21,915,000 0.39% Q4 2016
TECK MATERIALS 985,007 $19,730,000 0.35% Q4 2016
KYN ENERGY 781,173 $15,295,000 0.27% Q4 2015
GLBL ENERGY 3,847,657 $15,198,000 0.27% Q1 2016
BSX HEALTH CARE 550,000 $11,897,000 0.21% Q4 2016
X MATERIALS 360,000 $11,884,000 0.21% Q4 2016
WMIH FINANCE 7,600,000 $11,780,000 0.21% Q3 2015
DAL TRANSPORTS 238,000 $11,707,000 0.21% Q4 2009
UAL TRANSPORTS 160,000 $11,661,000 0.21% Q4 2016
GT CONSUMER DISCRETIONARY 236,951 $7,315,000 0.13% Q4 2008
MT MATERIALS 976,578 $7,129,000 0.13% Q4 2016
SPY FINANCE 22,854 $5,109,000 0.09% Q1 2012
RIO MATERIALS 91,043 $3,502,000 0.06% Q4 2016
GM-WTB 190,011 $3,255,000 0.06% Q2 2011
ARCH ENERGY 27,178 $2,121,000 0.04% Q4 2016
KMI-W ENERGY 793,836 $4,000 0.00% Q4 2015

PAULSON & CO
Top Buys: Time Warner Inc. (TWX) // Harman International (HAR) // B/E Aerospace, Inc.
(BEAV) // Dell Technologies Inc. (DVMT) // Intl Seaways Inc. (INSW)
Top Sells: American International (AIG) // BIOGEN INC. (BIIB) // Shire Plc ADS (SHPG) //
Teva Pharmaceuticals (TEVA) // Hewlett Packard (HPE)

Paulson & Company's largest three positions are Mylan NV, Allergan plc, and Shire plc. John
Paulson’s U.S. long portfolio decreased from $9.23B to $7.93B this quarter. Paulson sold out of
19 stocks, reduced holdings in 39 stocks and had 27 new purchases in Q4. His Top 10 holdings

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 40
represent 63.38% of his total portfolio. In the most recent quarter the fund invested heavily in the
healthcare sector (54.63%).
John Paulson has trouble letting go. He refused to give up hope when his stake in Allergan, this
his biggest investment, fell double-digits last year. In the slow-motion meltdown following
Valeant Pharmaceuticals’ late-2015 implosion, Paulson & Co. not only held onto its shares but
added more.

 Mr Paulson’s other investment is American International Group (AIG) where he is one
of the top 20 shareholders. He trimmed his stake by 50% selling this quarter at prices
between $57 and $67. As a result of the sale, his fund had become the 38th biggest,
according to Bloomberg data, with a 0.48 per cent stake as of the end of the year. Paulson
& Co.’s large stake in American International Group Inc (AIG) and Mr. Paulson’s crusade
against the company’s top-management has been widely covered by the media for the past
two years. As a result of that crusade, last year American International Group Inc (AIG)
agreed to make several changes which included appointing Mr. Paulson as one of directors
on its Board and launching a massive capital return program. It is unusual for activists to
sell stakes while on the board. Activists tend to stand aside before selling down. Mr
Paulson would not comment.

 Time Warner Inc. (TWX), Harman International (HAR), and B/E Aerospace
(BEAV) these three stocks are new merger-arbitrage plays established this quarter. All
three stocks where acquired.

 International Seaways (INSW) is a spinoff from Overseas Shipholding Group (OSG).
Paulson bought 3.6 million shares. International Seaways is currently trading at a
EV/EBITDA multiple of around 4.4 times its fiscal 2016 numbers, while other tanker
operating companies are trading at 5.5 to 7.5 multiples.

 Mylan (MYL) is currently the largest position at 9.91% of the portfolio. The original stake
was purchased in Q1 2010 at prices between $17 and $23. The last three quarters saw minor
trimming. In the most recent quarter Paulson trimmed this position by 5%.

 Shire PLC ADR (SHPG) is a top three stake at 9.81 % of the US long portfolio. It was
established in Q3 2012 at prices between $85 and $94. In Q2 2013, the position was
doubled at prices between $87 and $100. Q2 2016 saw a 26% reduction at prices between
$165 and $192. There was an 9% further trimming this quarter.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 41
 Harman International Industries Inc (HAR) also made its debut in Paulson & Co. equity
portfolio during the fourth quarter, but isn’t expected to remain there for long. Late last
year, tech major Samsung announced that it had agreed to acquire Harman International
Industries Inc (HAR) for $112 per share following which shares of the latter spiked.

*Top 80 Holdings
% of Qrt 1st
Stock Sector Shares Held Market Value Portfolio Owned
MYL HEALTH CARE 20,602,500 $785,985,000 9.91% Q1 2010
AGN HEALTH CARE 3,554,734 $746,530,000 9.41% Q1 2014
SHPG HEALTH CARE 4,206,100 $716,635,000 9.03% Q3 2012
TEVA HEALTH CARE 15,925,800 $577,310,000 7.28% Q2 2015
GLD MATERIALS 4,359,722 $477,869,000 6.02% Q1 2009
STAY CONSUMER DISCRETIONARY 28,628,258 $455,411,000 5.74% Q4 2013
MNK HEALTH CARE 7,976,872 $397,408,000 5.01% Q3 2013
AIG FINANCE 4,809,355 $314,099,000 3.96% Q1 2015
VRX HEALTH CARE 19,384,500 $281,463,000 3.55% Q1 2014
TWX CONSUMER DISCRETIONARY 2,855,900 $275,680,000 3.47% Q4 2016
AKRX HEALTH CARE 8,686,500 $189,626,000 2.39% Q4 2015
CACQ FINANCE 13,117,998 $177,093,000 2.23% Q4 2013
SGYP HEALTH CARE 24,088,655 $146,700,000 1.85% Q1 2015
AU MATERIALS 12,782,400 $134,343,000 1.69% Q1 2009
ENDP HEALTH CARE 7,839,900 $129,123,000 1.63% Q3 2015
RLGY REAL ESTATE 4,785,000 $123,118,000 1.55% Q4 2012
CZR CONSUMER DISCRETIONARY 14,417,900 $122,552,000 1.54% Q1 2012
NG MATERIALS 22,271,796 $101,559,000 1.28% Q1 2010
HAR CONSUMER DISCRETIONARY 853,800 $94,908,000 1.20% Q4 2016
BEAV INDUSTRIALS 1,316,500 $79,240,000 1.00% Q1 2016
CIE(PRN) ENERGY 264,489,000 $79,149,000 1.00% Q1 2013
OAS ENERGY 5,187,300 $78,536,000 0.99% Q3 2013
VMW INFORMATION TECHNOLOGY 992,200 $78,116,000 0.98% Q2 2016
ODP CONSUMER DISCRETIONARY 15,261,657 $68,983,000 0.87% Q1 2016
HPE INFORMATION TECHNOLOGY 2,976,400 $68,874,000 0.87% Q3 2016
UTILITIES &
TSU TELECOMMUNICATIONS 5,675,200 $66,967,000 0.84% Q2 2014
WLH INDUSTRIALS 3,322,666 $63,230,000 0.80% Q2 2013
BAC/WS/A 6,263,526 $62,322,000 0.79% Q2 2010

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DVMT INFORMATION TECHNOLOGY 1,090,104 $59,923,000 0.76% Q4 2016
INSW BUSINESS SERVICES 3,681,122 $51,683,000 0.65% Q4 2016
TTWO INFORMATION TECHNOLOGY 967,900 $47,708,000 0.60% Q2 2016
AEM MATERIALS 1,080,600 $45,385,000 0.57% Q2 2011
AGN(CALL) HEALTH CARE 214,700 $45,089,000 0.57% Q1 2016
GOLD MATERIALS 500,000 $38,170,000 0.48% Q1 2010
CIE ENERGY 31,111,327 $37,956,000 0.48% Q1 2013
WWAV CONSUMER STAPLES 676,400 $37,608,000 0.47% Q4 2016
NXPI INFORMATION TECHNOLOGY 373,000 $36,558,000 0.46% Q4 2016
ATVI INFORMATION TECHNOLOGY 968,000 $34,954,000 0.44% Q1 2016
MYL(CALL) HEALTH CARE 904,200 $34,495,000 0.43% Q1 2016
THM MATERIALS 55,487,842 $30,939,000 0.39% Q3 2010
ENZY HEALTH CARE 4,205,980 $27,549,000 0.35% Q4 2013
SHPG(CALL) HEALTH CARE 160,000 $27,261,000 0.34% Q1 2016
LOXO HEALTH CARE 828,641 $26,612,000 0.34% Q4 2015
ALXN(CALL) HEALTH CARE 200,000 $24,470,000 0.31% Q4 2016
STE HEALTH CARE 313,500 $21,127,000 0.27% Q3 2016
FB INFORMATION TECHNOLOGY 181,000 $20,824,000 0.26% Q1 2016
ALXN HEALTH CARE 153,341 $18,761,000 0.24% Q1 2016
ALXN(PUT) HEALTH CARE 153,000 $18,720,000 0.24% Q4 2016
EBAY INFORMATION TECHNOLOGY 622,600 $18,485,000 0.23% Q3 2016
TIME CONSUMER DISCRETIONARY 992,200 $17,711,000 0.22% Q4 2016
DXCM HEALTH CARE 293,200 $17,504,000 0.22% Q1 2016
WEN(PUT) CONSUMER DISCRETIONARY 1,250,000 $16,900,000 0.21% Q4 2016
GOOG INFORMATION TECHNOLOGY 21,700 $16,748,000 0.21% Q4 2016
ACAS FINANCE 865,868 $15,516,000 0.20% Q1 2016
ETSY CONSUMER DISCRETIONARY 1,268,500 $14,943,000 0.19% Q4 2015
IAG MATERIALS 3,863,912 $14,876,000 0.19% Q1 2010
BIIB HEALTH CARE 52,200 $14,803,000 0.19% Q4 2015
LIVN HEALTH CARE 310,000 $13,941,000 0.18% Q4 2015
P(PUT) INFORMATION TECHNOLOGY 990,000 $12,910,000 0.16% Q4 2016
WDAY INFORMATION TECHNOLOGY 173,900 $11,493,000 0.14% Q4 2016
PFE HEALTH CARE 352,200 $11,439,000 0.14% Q4 2015
GSK HEALTH CARE 296,000 $11,399,000 0.14% Q4 2016
SNY HEALTH CARE 253,000 $10,231,000 0.13% Q2 2016
COR REAL ESTATE 128,200 $10,175,000 0.13% Q4 2016
SYMX INDUSTRIALS 10,000,000 $10,000,000 0.13% Q2 2015
SDRPQ(PRN) ENERGY 7,906,627 $9,972,000 0.13% Q4 2016
CYH(PUT) HEALTH CARE 1,600,000 $8,944,000 0.11% Q1 2016
BAC/WS/B 8,928,344 $8,571,000 0.11% Q1 2010

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 43
HCA HEALTH CARE 111,600 $8,261,000 0.10% Q3 2016
NSR INDUSTRIALS 200,000 $6,680,000 0.08% Q4 2016
ISRG HEALTH CARE 10,100 $6,405,000 0.08% Q4 2016
BSX HEALTH CARE 288,000 $6,229,000 0.08% Q1 2016
MELI INFORMATION TECHNOLOGY 38,400 $5,996,000 0.08% Q3 2016
RAI CONSUMER STAPLES 106,000 $5,940,000 0.07% Q4 2016
TMQ MATERIALS 11,603,178 $5,884,000 0.07% Q2 2012
SD ENERGY 245,046 $5,771,000 0.07% Q4 2016
FCH REAL ESTATE 500,000 $4,005,000 0.05% Q3 2009
KMDA HEALTH CARE 730,800 $3,983,000 0.05% Q2 2013
GPRO(PUT) INFORMATION TECHNOLOGY 400,000 $3,484,000 0.04% Q4 2016
CBOE FINANCE 38,412 $2,838,000 0.04% Q3 2016

TIGER GLOBAL MANAGEMENT
Top Buys: Fiat Chrysler Au (FCAU) // Priceline Group Inc. (PCLN) // JD.COM INC ADR (JD)
// ALPHABET INC. (GOOGL) // Microsoft Corp. (MSFT)
Top Sells: Apple Inc. (AAPL) // Charter Communications (CHTR) // Alibaba Group (BABA) //
MasterCard Inc. (MA) // ALPHABET INC. (GOOG)
Its latest 13F filing shows 37 positions worth some $8.03 billion, versus 27 positions worth some
$6.94 billion at the end of the third quarter.
Now one of the world's most closely-watched hedge funds, billionaire Chase Coleman's Tiger
Global, is spotting value in private equity stocks. Tiger Global, which reportedly lost about 15%
in 2016, has been building a major stake in the publicly-traded units of Apollo Global, the private
equity giant with $192 billion in assets co-founded by billionaires Leon Black, Marc Rowan and
Joshua Harris. Since first disclosing a stake Apollo in mid-March, Tiger Global has been buying
shares hand over fist. Tiger Global's stake in Apollo now stands at 23,764,999 Class A shares,
worth over $600 million.
 Priceline (PCLN) is Tiger Gobal’s largest portfolio position with 22.91%.
 Comment: We expect this and the growth of outbound Chinese tourism to result in
sustained strong bookings growth this year.

 Carlyle Asia Partners IV (CAP IV) has led a $100 million funding round for e-commerce
logistics company Delhivery for a significant minority stake in the company, reaffirming
interests from bulge PE bracket buyout funds who have traditionally stayed away from the
domestic consumer internet space. Existing investor Tiger Global also participated in the
round which values the company at close $700 million. Betting on the growing demand

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 44
from the Indian e-commerce industry and requirement for specialised Service level
Agreements (SLA) from logistics partners.
 Facebook Inc. (FB) was listed as a new position of 366,800 shares. This stake in
Facebook would be worth close to $50 million in current dollars — versus $42 million at
the end of 2016.

 Microsoft Corp. (MSFT) was listed as a new stake of more than 2.1 million shares under
Tiger’s 13F filing. In current dollars, that would be worth some $136 million.

 Fiat Chrysler Automobiles N.V. (FCAU) was perhaps the big surprise here. Tiger now
owns about 52.7 million shares of Fiat Chrysler that would be worth about $600 million
today. At $11.40 now, this was a $9.12 stock on the last day of 2016, a gain of about 20% from
the end of the year.

 Amazon.com, Inc. (AMZN) was a tad smaller at 1,381,929 shares (versus an end of
third quarter stake of 1,342,548 shares) but this is a huge position worth $1.036 billion.

Shares % of
Stock Sector Held Market Value Portfolio Qrt 1st Owned
PCLN CONSUMER DISCRETIONARY 1,255,992 $1,841,360,000 22.93% Q4 2015
JD CONSUMER DISCRETIONARY 45,789,821 $1,164,893,000 14.51% Q4 2014
AMZN CONSUMER DISCRETIONARY 1,381,929 $1,036,267,000 12.90% Q2 2015
CHTR CONSUMER DISCRETIONARY 2,327,000 $669,990,000 8.34% Q3 2012
FCAU CONSUMER DISCRETIONARY 52,740,079 $480,990,000 5.99% Q4 2016
BABA INFORMATION TECHNOLOGY 5,283,823 $463,972,000 5.78% Q3 2016
FLT INFORMATION TECHNOLOGY 2,920,953 $413,373,000 5.15% Q4 2012
CMCSA CONSUMER DISCRETIONARY 5,200,000 $179,530,000 2.24% Q3 2016
GOOGL INFORMATION TECHNOLOGY 186,100 $147,475,000 1.84% Q4 2016
GOOG INFORMATION TECHNOLOGY 190,500 $147,032,000 1.83% Q3 2016
MSFT INFORMATION TECHNOLOGY 2,118,000 $131,613,000 1.64% Q4 2016
QSR FINANCE 2,302,080 $109,717,000 1.37% Q4 2015
MA INFORMATION TECHNOLOGY 1,053,341 $108,757,000 1.35% Q4 2007
TDG INDUSTRIALS 428,771 $106,747,000 1.33% Q4 2016
ETSY CONSUMER DISCRETIONARY 8,739,254 $102,948,000 1.28% Q2 2015
DPZ CONSUMER DISCRETIONARY 612,289 $97,501,000 1.21% Q4 2016
TAL CONSUMER DISCRETIONARY 1,271,601 $89,203,000 1.11% Q4 2015
V INFORMATION TECHNOLOGY 1,142,000 $89,099,000 1.11% Q3 2016
PCLN(CALL) CONSUMER DISCRETIONARY 59,700 $87,524,000 1.09% Q3 2016

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MELI INFORMATION TECHNOLOGY 545,346 $85,150,000 1.06% Q4 2016
EHIC CONSUMER DISCRETIONARY 8,334,863 $75,514,000 0.94% Q2 2015
EDU CONSUMER DISCRETIONARY 1,573,022 $66,224,000 0.82% Q4 2016
AWI INDUSTRIALS 1,530,000 $63,954,000 0.80% Q3 2016
SYMC INFORMATION TECHNOLOGY 2,630,000 $62,831,000 0.78% Q4 2016
VIPS INFORMATION TECHNOLOGY 5,018,401 $55,253,000 0.69% Q3 2016
FB INFORMATION TECHNOLOGY 366,800 $42,200,000 0.53% Q4 2016
NTES INFORMATION TECHNOLOGY 191,954 $41,335,000 0.51% Q4 2016
JMEI CONSUMER DISCRETIONARY 2,479,085 $12,420,000 0.15% Q3 2016
TEAM INFORMATION TECHNOLOGY 500,000 $12,040,000 0.15% Q4 2015
ZTO AIR DELIVERY 994,400 $12,002,000 0.15% Q4 2016
ONDK FINANCE 2,461,015 $11,394,000 0.14% Q4 2014
PSTG INFORMATION TECHNOLOGY 1,000,000 $11,310,000 0.14% Q4 2015
FIT INFORMATION TECHNOLOGY 500,000 $3,660,000 0.05% Q2 2015
SHOP INFORMATION TECHNOLOGY 70,000 $3,001,000 0.04% Q2 2015
FEYE INFORMATION TECHNOLOGY 200,000 $2,380,000 0.03% Q4 2013
LC FINANCE 275,000 $1,444,000 0.02% Q4 2014
AFCO REAL ESTATE 60,000 $478,000 0.01% Q4 2015

PERSHING SQUARE CAPITAL
Top Buys: Chipotle Mexican Grill (CMG)
Top Sells: Valeant Pharmaceuticals (VRX) // Zoetis Inc. (ZTS) // Air Products & Chemicals
(APD)
Billionaire investor Ackman walked away from Valeant Pharmaceuticals International Inc with a
loss of more than $3 billion as he sold his entire stake in the struggling drug company after trying
to rescue it for some 18 months.
"We elected to sell our investment and realize a large tax loss which will enable us to dedicate
more time to our other portfolio companies and new investment opportunities," Ackman said in a
statement.
Ackman and his hedge fund Pershing Square Capital Management first bought 5.5 million shares
of Zoetis in 2014 at $34 per share and added to his position over the years. Ackman sold its entire
stake in Q3.
For the past four years, hedge-fund billionaires Bill Ackman and Carl Icahn have engaged in an
epic battle over the fate of controversial company Herbalife. On one side is Ackman, who took a
$1 billion short position on the publicly traded company in 2012, calling it a Ponzi scheme. On the

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 46
opposite side is Icahn, who stunned Ackman and Wall Street weeks later by investing heavily in
the nutritional-supplement company, sparking a Wall Street war for the ages.
The battle for Herbalife (HLF) is heating up once again. QTR Research most recently outlined its
short thesis on Herbalife’s stock ahead of a documentary’s release, a movie about Pershing Square
Capital manager Bill Ackman’s $1 billion short bet on Herbalife and his drive to expose the
company as a pyramid scheme. It looks like the Titanic found its iceberg.

As a reminder, on July 15, 2016, the Federal Trade Commission (FTC), after more than a two-year
investigation, announced a settlement with Herbalife stating:

We have agreed to a settlement with Herbalife International of America, Inc. and its affiliates
that provides $200 million in redress for consumers we contend were harmed by the practices
challenged in the Commission’s complaint.

With this settlement, Herbalife has agreed to restructure its business, transforming it from an
organization that pays its distributors based on their own wholesale purchases and those of
their downlines, to one where compensation is calculated based upon verifiable retail sales.
Significantly, in order to pay compensation to distributors at current levels, the order requires
Herbalife to verify, through receipts and other reliable methods, that its business is driven by
retail sales and that at least 80% of its sales are made to legitimate end-users. Otherwise, it
must reduce rewards to lower levels.

Herbalife is going to have to start operating legitimately and Ackman will get his short thesis
confirmed.

Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
QSR FINANCE 39,150,551 $1,865,915,000 31.56% Q4 2014
CMG CONSUMER DISCRETIONARY 2,882,463 $1,087,611,000 18.39% Q3 2016
MDLZ CONSUMER STAPLES 22,942,225 $1,017,029,000 17.20% Q3 2015
APD MATERIALS 3,870,760 $556,693,000 9.41% Q2 2013
HHC REAL ESTATE 3,568,017 $407,111,000 6.88% Q4 2010
PAH MATERIALS 40,451,506 $396,829,000 6.71% Q1 2014
NOMD.I FINANCE 33,333,334 $319,000,000 5.39% Q1 2016
VRX HEALTH CARE 18,114,432 $263,022,000 4.45% Q1 2015
ZTS HEALTH CARE 0 $0 0.00% Q3 2014

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MAVERICK CAPITAL
Top Buys: Adobe Systems, Inc. (ADBE) // Aetna Inc. (AET) // Dollar Tree Inc. (DLTR) //
FleetCor Technologies (FLT) // Facebook Inc. (FB)
Top Sells: Philip Morris (PM) // Level 3 Communications (LVLT) // Northrop Grumman Corp.
(NOC) // Apple Inc. (AAPL) // Lam Research Corp. (LRCX)

In the second half of last year 33 individual positions cost Maverick Fund more than 20 basis
points (11 were longs, and 22 were shorts). Two of these were short positions that were acquired
in the third quarter. Of the remaining 31 positions, 27 were still investments at the beginning of
this year – a clear indication that they have concluded that these losing positions will prove to be
very compelling. As a matter of fact, Maverick’s exposure to these 27 investments increased 68%
over the second half of the year and represented 78% of total invested capital by year end – an
historical high. According to their most recent letter to investors, they have never entered a year
with more conviction in positions that have recently proven costly.
 Maverick Capital’s increases its stake in Aetna Inc. (AET) by a whopping 41,735% and
Dollar Tree (DLTR) where the fund increased its stake by 9,137%. Aetna is the largest
purchase in the Health Care Sector. Hedge Funds are extremely bullish on this stock. 126
funds are creating new positions vs. 46 funds closing out their position.

 Maverick's largest positions included computer software company Adobe Systems
(ADBE) which they increased by 245% compared to the previous quarter, social media
company Facebook (FB) where they upped their stake by 120% and biopharmaceutical
company Pfizer (PFE) which showed a minor position increase by 6%.

 FleetCor Technologies (FLT) is a new position. They own 1.739 million shares which
represents 3.20% of their total portfolio value. The institutional sentiment is neutral with
59 funds creating new positions vs. 60 funds closing out their position. Other notable
buyers are Farallon Capital owning a total of 1,722,439 shares and Tiger Global
Management owning 2,920,953 shares. We can certainly expect some volatility in the near
future due to the recent short thesis on this company published by Citron Research.
 Citron Research about FLT: FleetCor presents itself as a fuel card company that targets
small mom and pop businesses as well as government contracts. It has acquired numerous
brands in the space, including ComData, Fuelman, FleetCards USA, Universal Fleet
MasterCard, and various brands overseas. Seems innocuous enough. But based on Citron’s
extensive research (from numerous customer, competitor and former employee interviews,
online review of customer and former employee complaints, gathering of customer

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 48
invoices, lawsuits, FOIA requests, and financial modeling), we believe FleetCor is actually
a predatory company by design, whose core strategy is to methodically rip off its customers
,using business practices and fees that are designed to deceive. Read more here.

 The fund sold all shares in Radian Group (RDN), Ericsson (ERIC), and Level 3
Communications (LVL). The institutional sentiment for LVL is bearish with 186 funds
reducing their position vs. 102 funds creating new positions. Other sellers are Carmignac
Gestion, Waddell & Reed Financial and Goldman Sachs Group.

*Top 50 Holdings
Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
PFE HEALTH CARE 22,851,570 $742,219,000 9.66% Q3 2015
UHS HEALTH CARE 6,130,994 $652,215,000 8.48% Q4 2014
SABR CONSUMER DISCRETIONARY 20,751,854 $517,759,000 6.74% Q2 2014
PCLN CONSUMER DISCRETIONARY 317,852 $465,990,000 6.06% Q4 2014
FB INFORMATION TECHNOLOGY 3,778,048 $434,664,000 5.65% Q1 2015
ADBE INFORMATION TECHNOLOGY 3,790,095 $390,190,000 5.08% Q3 2013
COMM INFORMATION TECHNOLOGY 10,031,988 $373,190,000 4.85% Q4 2014
WCN INDUSTRIALS 4,685,396 $368,225,000 4.79% Q2 2014
NWL CONSUMER DISCRETIONARY 6,394,236 $285,503,000 3.71% Q4 2015
AET HEALTH CARE 2,229,816 $276,519,000 3.60% Q1 2015
DLTR CONSUMER DISCRETIONARY 3,498,887 $270,044,000 3.51% Q3 2016
CI HEALTH CARE 2,013,625 $268,597,000 3.49% Q3 2015
VMC MATERIALS 2,046,710 $256,146,000 3.33% Q3 2014
FLT INFORMATION TECHNOLOGY 1,739,049 $246,110,000 3.20% Q4 2016
SHPG HEALTH CARE 1,425,420 $242,863,000 3.16% Q1 2016
GOOG INFORMATION TECHNOLOGY 269,121 $207,713,000 2.70% Q4 2014
TDG INDUSTRIALS 777,086 $193,463,000 2.52% Q4 2011
LRCX INFORMATION TECHNOLOGY 1,802,257 $190,553,000 2.48% Q1 2016
CSC INFORMATION TECHNOLOGY 3,078,365 $182,916,000 2.38% Q2 2016
AXP FINANCE 2,340,629 $173,394,000 2.26% Q1 2015
ORLY CONSUMER DISCRETIONARY 595,156 $165,697,000 2.16% Q1 2015
MYL HEALTH CARE 3,799,281 $144,943,000 1.89% Q2 2016
MLM MATERIALS 452,712 $100,289,000 1.30% Q4 2016
CMCSA CONSUMER DISCRETIONARY 1,215,967 $83,963,000 1.09% Q1 2016
CNC HEALTH CARE 1,399,062 $79,061,000 1.03% Q4 2016
TMUS UTILITIES & TELECOMMUNICATIONS 806,411 $46,377,000 0.60% Q3 2016
USB FINANCE 865,533 $44,462,000 0.58% Q1 2016

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PACB HEALTH CARE 9,073,874 $34,481,000 0.45% Q4 2010
BUD CONSUMER STAPLES 205,550 $21,673,000 0.28% Q3 2011
CSLT INFORMATION TECHNOLOGY 1,188,074 $5,881,000 0.08% Q1 2014
NVDA INFORMATION TECHNOLOGY 35,470 $3,786,000 0.05% Q1 2016
UTHR HEALTH CARE 26,210 $3,759,000 0.05% Q1 2015
LULU CONSUMER DISCRETIONARY 55,710 $3,621,000 0.05% Q3 2016
EW HEALTH CARE 38,440 $3,602,000 0.05% Q2 2016
VLO ENERGY 52,330 $3,575,000 0.05% Q1 2015
Y FINANCE 5,810 $3,533,000 0.05% Q1 2015
XLNX INFORMATION TECHNOLOGY 57,840 $3,492,000 0.05% Q4 2015
TSO ENERGY 39,650 $3,467,000 0.05% Q1 2015
NXST CONSUMER DISCRETIONARY 54,570 $3,454,000 0.04% Q1 2015
RF FINANCE 238,180 $3,420,000 0.04% Q4 2016
NCR INFORMATION TECHNOLOGY 84,300 $3,419,000 0.04% Q4 2016
FICO INFORMATION TECHNOLOGY 28,290 $3,373,000 0.04% Q3 2016
CBS CONSUMER DISCRETIONARY 52,820 $3,360,000 0.04% Q2 2016
FTI ENERGY 94,420 $3,355,000 0.04% Q2 2016
XNCR HEALTH CARE 127,380 $3,353,000 0.04% Q4 2016
HCA HEALTH CARE 44,730 $3,311,000 0.04% Q4 2016
AKRX HEALTH CARE 151,370 $3,304,000 0.04% Q3 2016
LEA CONSUMER DISCRETIONARY 24,890 $3,295,000 0.04% Q4 2015
JNJ HEALTH CARE 28,530 $3,287,000 0.04% Q2 2016
FFIV INFORMATION TECHNOLOGY 22,670 $3,281,000 0.04% Q4 2016

THIRD POINT
Top Buys: JPMorgan Chase & Co. (JPM) // Bank of America Corp. (BAC) // Time Warner, Inc.
(TWX) // Humana, Inc. (HUM) // Zayo Group Holdings (ZAYO)
Top Sells: Allergan PLC (AGN) // Alibaba Group (BABA) // Transdigm Group Inc. (TDG) //
Monsanto Co. (MON) // Facebook Inc. (FB)

Third Point's fourth quarter letter outlines their bullish stance on markets, noting that de-regulation
and tax decreases under various policies from President Donald Trump should spur US economic
activity. Third Point highlights that the bank stocks they're playing trade for less than 10x earnings
with EPS growth in the high-teens.
The move from deflation to inflation is good for their style of investing. A reflationary environment
creates favorable conditions for value and event‐driven investing, risk arbitrage, and activism and

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so the fund’s exposure has increased in equities relative to corporate and structured credit. Third
Point expects that credit will be a mini‐cycle story like the one seen last year, where opportunities
popped up quickly and only those with the ability to be nimble and move capital quickly generated
profits.
Third Point has historically generated its strongest returns at the end of credit cycles as they use
their cross capital structure approach to profit from credit, then post‐reorg equities, and finally,
fully‐emerged equities.

 Loeb’s filing showed exactly the kind of sector reshuffling that we’re watching out for.
The billionaire’s hedge fund made several big moves during Q4, including opening large
positions in Bank of America Corp (BAC) and JPMorgan Chase & Co. (JPM). Overall,
Third Point’s 13F exposure to the finance sector shot up to 13.81% from just 3.85% a
quarter earlier. The big move into banking stocks is not entirely surprising, as they are
expected to benefit from rising interest rates.

 A prominent position was sold off completely Allergan (AGN). The overall exposure to
healthcare stocks declined to 28.8% from 34.53%.
 Comment: Some products in the pipeline could not perform as well as expected or
competing in some markets may be more difficult than management expects. Cenicriviroc,
for example, will have to compete in a market where many other companies are trying to
expand, including Genfit (GNFTF), Galmed (GLMD), Gilead Sciences (GILD), Intercept
(ICPT) and Novo Nordisk (NVO).

 Third Point added a 3-million share stake in Time Warner Inc (TWX) to its portfolio in
Q4. This stock is a merger bet for Loeb. As any investor knows, a proposed merger is
always tenuous at best until the deal is finalized. For investors in TWX and AT&T, that
scenario is amplified by the fact that there is uncertainty over if the government will get
involved.

 Loeb started selling it’s position in Monsato (MON). 116 funds are creating new positions
vs. 88 funds closing out their position. Other notable sellers are Sands Capital
Management, FMR LLC and Bank of New York Mellon.
 Comment: Monsanto’s (MON) proposed merger with Bayer AG is expected to be
completed by the Q2 of 2018 but only if it gets the green light from antitrust authorities in
the regions where the merger could be disruptive. The merger would cost Bayer $128 per
share of Monsanto, with a reverse break-up fee of $2 billion (to Monsanto) if the merger
fails to close. So far the merger has now been approved by Monsanto’s shareholders and

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is in the process of review by the regulatory authorities for likely antitrust violations.

 In the most recent reporting quarter Third Point, has taken a big bite of a much smaller fish
than it's used to: PrivateBancorp (PVTB). The $20.1 billion-asset bank, specializing in
lending to midsized businesses, is the kind of investment Loeb likes. It's a company in
some turmoil thanks to the election of Donald Trump.Third Point bought 3 million shares
of the business bank in the fourth quarter, presumably after the election, according to a
Securities & Exchange Commission filing. That makes Third Point the fourth-largest
holder of PrivateBancorp shares, with a 3.76 percent stake. The two largest shareholders
are Vanguard Group and Blackrock Fund Advisors.
 Comment: Loeb's presence in the stock raises the stakes for Toronto-based CIBC, which
has a deal to acquire PrivateBancorp that's currently valued at $4.04 billion. CIBC offered
a new deal and the price has been increased by 20% to $4.9 billion. PrivateBancorp
reworked upon its strategy, as various promises made by President Donald Trump,
regarding fewer taxes, higher interest rates and reduced regulatory pressures, are likely
to significantly benefit the U.S. finance companies. Moreover, the improving market
scenario has led shares of most companies to rise since the Nov 2016 elections. So, the
original deal price of $47 seems to be unfavorable. Following such trend, many
shareholders of PrivateBancorp contemplated whether the deal would be profitable or not,
which delayed shareholders’ meeting. Now, the stockholders of record as of Mar 31, 2017,
are entitled to vote at the Special Meeting anticipated in mid-May. Given Loeb's track
record—his firm has returned 15.7 percent annually in the 20 years since its launch—he
is likely to play an important role in shaping investor sentiment.

 Third Point also disclosed a new stake in Zayo Group Holdings Inc. (ZAYO) buying 7
million shares. Institutional sentiment is bullish with 117 funds creating new positions vs.
36 closing out their position. Another noteworthy buyer is John Scully's investment firm
SPO Advisory which has filed a 13G with the SEC regarding its position in Zayo Group
(ZAYO). Per the filing, SPO now owns 5.2% of the company with over 12.68 million
shares. This marks an increase of over 1.88 million shares since the end of 2016 when they
owned 10.79 million shares.

Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
BAX HEALTH CARE 51,901,767 $2,301,324,000 22.59% Q2 2015
DOW MATERIALS 17,000,000 $972,740,000 9.55% Q4 2013
HUM HEALTH CARE 2,400,000 $489,672,000 4.81% Q3 2016
STZ CONSUMER STAPLES 3,000,000 $459,930,000 4.51% Q2 2012
JPM FINANCE 5,250,000 $453,022,000 4.45% Q4 2016
FB INFORMATION TECHNOLOGY 3,500,000 $402,675,000 3.95% Q2 2016

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BAC FINANCE 17,500,000 $386,750,000 3.80% Q4 2016
GOOGL INFORMATION TECHNOLOGY 425,000 $336,791,000 3.31% Q1 2016
TWX CONSUMER DISCRETIONARY 3,000,000 $289,590,000 2.84% Q4 2016
SHW MATERIALS 1,000,000 $268,740,000 2.64% Q2 2016
BID CONSUMER DISCRETIONARY 6,661,604 $265,532,000 2.61% Q1 2013
DHR REAL ESTATE 3,250,000 $252,980,000 2.48% Q3 2015
CHTR CONSUMER DISCRETIONARY 850,000 $244,732,000 2.40% Q2 2016
MHK CONSUMER DISCRETIONARY 1,200,000 $239,616,000 2.35% Q4 2014
ZAYO UTILITIES & TELECOMMUNICATIONS 7,000,000 $230,020,000 2.26% Q4 2016
GD INDUSTRIALS 1,300,000 $224,458,000 2.20% Q2 2016
AAPL INFORMATION TECHNOLOGY 1,850,000 $214,267,000 2.10% Q3 2016
SPGI CONSUMER DISCRETIONARY 1,600,000 $172,064,000 1.69% Q2 2016
TAP CONSUMER STAPLES 1,700,000 $165,427,000 1.62% Q2 2015
PVTB FINANCE 3,000,000 $162,570,000 1.60% Q4 2016
HON INDUSTRIALS 1,375,000 $159,294,000 1.56% Q4 2016
CB FINANCE 1,200,000 $158,544,000 1.56% Q4 2015
ANTM HEALTH CARE 1,000,000 $143,770,000 1.41% Q4 2016
DVMT INFORMATION TECHNOLOGY 2,600,000 $142,922,000 1.40% Q4 2016
UNP TRANSPORTS 1,150,000 $119,232,000 1.17% Q2 2016
CAG CONSUMER STAPLES 3,000,000 $118,650,000 1.16% Q3 2016
MON MATERIALS 1,100,000 $115,731,000 1.14% Q2 2016
NOMD.I FINANCE 11,950,000 $114,362,000 1.12% Q1 2016
GS FINANCE 400,000 $95,780,000 0.94% Q4 2016
HDS INDUSTRIALS 2,250,000 $95,648,000 0.94% Q4 2016
GRBK MATERIALS 8,083,022 $81,234,000 0.80% Q2 2007
TDG INDUSTRIALS 250,000 $62,240,000 0.61% Q1 2016
RICE ENERGY 2,650,000 $56,578,000 0.56% Q4 2016
SWN ENERGY 5,000,000 $54,100,000 0.53% Q4 2016
AVGO INFORMATION TECHNOLOGY 300,000 $53,031,000 0.52% Q4 2016
KDMN 7,919,650 $42,130,000 0.41% Q3 2016
SUPV FINANCE 2,740,000 $36,004,000 0.35% Q2 2016
ENPH INFORMATION TECHNOLOGY 6,248,987 $6,311,000 0.06% Q2 2012

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BLUE RIDGE CAPITAL
Top Buys: Bank of America Corp. (BAC) // Wells Fargo & Co. (WFC) // Whiting Petroleum
(WLL) // NIKE Inc. (NKE) // Citigroup Inc. (C)
Top Sells: IHS Markit Ltd. (INFO) // Dollar Tree Inc. (DLTR) // Walgreens Boots (WBA) //
Allegion plc (ALLE) // Ulta Salon Cosmetics (ULTA)

Blue Ridge Capital’s largest three positions are Autodesk, Charter Communications and Facebook.
The portfolio decreased from $8.43B to $7.93B this quarter. They sold out of 10 stocks, reduced
holdings in 20 stocks and had 3 new purchases in Q4. Top 10 holdings represent 44.90% of the
fund’s total portfolio. In the most recent quarter the finance sector allocation rose from 4.39% to
13.68%.

 Blue Ridge significantly increased their stake in Whiting Petroleum (WLL). They bought
10,021,307 additional shares increasing their position by +606%. The position is a bullish
pick for this quarter. Many large funds are increasing their positions. Most recent filing
data reveals that 76 funds are creating new positions vs. 35 funds closing out their position.
 Comment: The firm will see production rise but, at some stage, the business needs to see
prices improve in order to hit cash flow neutrality.

 Griffins also increased its stake in Amaya (AYA) +332%, Devon Energy (DVN) +184%,
Nike (NKE) +91% and Fitbit (FIT) +273%. Griffin added Fitbit as a new holding to his
portfolio in June 2015. Decreasing the position in Q3 selling 2.4 million shares and in the
most recent quarter he bought 2.83 million shares. The investment is clearly an arbitrage
play.
 Comment: At the current valuation, $5.72 per share, FIT's market capitalization is just
$1.30 billion. When considering FIT's asset levels, it appears to be quite an attractive
takeover candidate. FIT's total assets are $1.82 billion, with current assets alone being
$1.48 billion. In contrast to this asset level, it has no debt, with just about $821 million in
total liabilities. Moreover, in just cash alone, FIT has $706 million.

 Blue Ridge bought 13.93 million shares in Bank of America (BAC). This is a high
conviction trade for the fund given that this position represents 3.89% of their total
portfolio. The institutional sentiment is extremely bullish with 294 funds creating new
positions vs. 75 funds closing out their position.
 Comment: Bank of America is the largest purchase in the financial sector. The top 50
funds bought $3.5 billion worth of stock in the Financials group during Q4. Within the

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 54
sector the buys where widespread with funds adding over $1 billion to each of the
Diversified Financials, Insurance and Banks industry groups.

Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
ADSK INFORMATION TECHNOLOGY 7,239,800 $535,818,000 6.75% Q3 2015
CHTR CONSUMER DISCRETIONARY 1,510,800 $434,990,000 5.48% Q2 2013
FB INFORMATION TECHNOLOGY 3,413,500 $392,723,000 4.95% Q4 2014
CDK INFORMATION TECHNOLOGY 5,550,400 $331,303,000 4.18% Q1 2015
C FINANCE 5,568,800 $330,954,000 4.17% Q3 2016
AGN HEALTH CARE 1,539,500 $323,310,000 4.07% Q4 2013
BAC FINANCE 13,953,800 $308,379,000 3.89% Q4 2016
WFC FINANCE 5,560,100 $306,417,000 3.86% Q4 2016
HDS INDUSTRIALS 7,182,800 $305,341,000 3.85% Q1 2015
TDG INDUSTRIALS 1,177,600 $293,175,000 3.70% Q3 2015
AMZN CONSUMER DISCRETIONARY 361,700 $271,228,000 3.42% Q1 2016
NKE CONSUMER DISCRETIONARY 4,986,500 $253,464,000 3.19% Q3 2016
GOOGL INFORMATION TECHNOLOGY 304,700 $241,460,000 3.04% Q3 2015
FLT INFORMATION TECHNOLOGY 1,575,300 $222,936,000 2.81% Q1 2015
CP TRANSPORTS 1,499,700 $214,112,000 2.70% Q4 2015
V INFORMATION TECHNOLOGY 2,404,300 $187,583,000 2.36% Q2 2014
GRA MATERIALS 2,695,000 $182,290,000 2.30% Q3 2012
MA INFORMATION TECHNOLOGY 1,678,200 $173,274,000 2.18% Q2 2014
NFLX CONSUMER DISCRETIONARY 1,385,500 $171,525,000 2.16% Q1 2016
LBTYK CONSUMER DISCRETIONARY 5,513,000 $163,736,000 2.06% Q1 2014
ST INFORMATION TECHNOLOGY 3,892,500 $151,613,000 1.91% Q1 2011
KHC CONSUMER STAPLES 1,665,000 $145,388,000 1.83% Q3 2015
ULTA CONSUMER DISCRETIONARY 558,500 $142,384,000 1.79% Q2 2013
COMM INFORMATION TECHNOLOGY 3,780,000 $140,616,000 1.77% Q1 2016
WLL ENERGY 11,673,900 $140,320,000 1.77% Q3 2016
DHR REAL ESTATE 1,760,000 $136,998,000 1.73% Q2 2015
PAH MATERIALS 12,785,000 $125,421,000 1.58% Q1 2014
DVN ENERGY 2,620,000 $119,655,000 1.51% Q2 2016
PXD ENERGY 634,800 $114,308,000 1.44% Q2 2016
GS FINANCE 460,000 $110,147,000 1.39% Q3 2016
OAS ENERGY 6,870,000 $104,012,000 1.31% Q1 2016
AMBA INFORMATION TECHNOLOGY 1,633,000 $88,394,000 1.11% Q4 2015
LILAK CONSUMER DISCRETIONARY 4,012,356 $84,942,000 1.07% Q3 2015
CHK ENERGY 11,879,879 $83,397,000 1.05% Q1 2016
TRU INFORMATION TECHNOLOGY 2,620,000 $81,037,000 1.02% Q2 2015

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SWN ENERGY 6,720,000 $72,710,000 0.92% Q1 2016
RRC ENERGY 2,040,000 $70,094,000 0.88% Q2 2016
AYA INFORMATION TECHNOLOGY 4,369,700 $61,831,000 0.78% Q2 2016
ALNY HEALTH CARE 1,320,000 $49,421,000 0.62% Q4 2014
BMRN HEALTH CARE 595,000 $49,290,000 0.62% Q3 2012
TSLA CONSUMER DISCRETIONARY 161,237 $34,455,000 0.43% Q2 2016
GPOR ENERGY 1,565,000 $33,867,000 0.43% Q1 2016
MIDD INDUSTRIALS 230,024 $29,629,000 0.37% Q4 2016
OZM FINANCE 8,840,000 $29,260,000 0.37% Q2 2016
FIT INFORMATION TECHNOLOGY 3,868,700 $28,319,000 0.36% Q2 2015
MGNX HEALTH CARE 1,360,000 $27,798,000 0.35% Q4 2013
Z INFORMATION TECHNOLOGY 540,000 $19,694,000 0.25% Q2 2016
GPRO INFORMATION TECHNOLOGY 1,760,000 $15,330,000 0.19% Q4 2015

BRIDGER MANAGEMENT
Top Buys: Envisioin Healthcare (EVHC) // Allergan PLC (AGN) // UnitedHealth Group (UNH)
// INCYTE Corporation (INCY) // Merck & Co (MRK)
Top Sells: Biogen Inc. (BIIB) // Teva Pharmaceuticals (TEVA) // Humana, Inc. (HUM) //
Dexcom Inc. (DXCM) // Pacific Biosciences (PACB)
Bridger Management’s 13F portfolio decreased from $1.48B to $1.43B this quarter. The number
of positions remained steady at 41. The top three 13F positions are Post Holdings, MGM Resorts
International and Envision Healthcare Holdings a new position, which together are 16.88% of the
portfolio. The fund sold out of 9 stocks, reduced holdings in 9 stocks and had 10 new purchases in
Q4. Top 10 holdings represent 46.90% of the fund’s total portfolio.
 Bridger Management bought 1,194,543 shares in Envision Healthcare Holdings
(EVHC). This is a high conviction trade for the fund given that this position represents
5.26% of their total portfolio. The institutional sentiment is bullish with 185 funds creating
new positions vs. 63 closing out their positions. Other notable buyers are Vaughan Nelson
Investment Management buying 3.66 million shares, Southernsun Asset Management
buying 3.18 million shares and Royal Bank of Canada buying 1.92 million shares.
 Comment: The price performance of Envision Healthcare was unfavorable in the last
three months. Also, the estimate revision trend for the current year has been unfavorable.
Two estimates moved south in the last two months against no movement in the opposite
direction.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 56
 Bridger boosted its stake in Centene Corp. (CNC) by +160% and Gilead Sciences
(GILD) by 109%. 97 funds created a new position in Centene vs. 67 funds closing out
their position. 149 funds created a new position in Gilead vs. 122 funds closing out their
position.
 Comment: Gilead Sciences has a strong NASH lineup, a market projected to grow in
excess of $20 billion by 2025. Citigroup models around 5 million treatable NASH patients
in the US alone at the peak, as several competitor products also look to open up and expand
the market, including Intercept Pharmaceuticals, AstraZeneca and Allergan.

 In Q3 the fund reduced their stake in Nektar Therapeutics (NKTR) by 765k shares. In
the most recent quarter they increased their position by +39%. They hold a total of
3,944,692 shares. Other major players increasing their stake are Blackrock, Camber Capital
Management and Norges Bank.
 Comment: Under the terms of the license agreement with AstraZeneca, AstraZeneca made
an initial payment of $125.0 million to Nektar for commercialization of MOVANTIK.
Nektar is expected to receive up to $375.0 million in sales milestones in Europe. Nektar is
also entitled to significant double-digit royalty payments starting at 20% of net sales in the
US and 18% of net sales in the EU and rest of world.

 Merck & Co (MRK), Incyte Corp. (INCY), United Health Group (UNH) and
Allergan (AGN) are the four new healthcare stocks added this quarter. Together, they
make up 22.83% of the total portfolio.
 Comment: Hedge funds are loading up on health care stocks according to our data we
have seen the biggest buying activity in over a year.
Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
POST CONSUMER STAPLES 1,072,070 $86,184,000 5.99% Q4 2014
MGM CONSUMER DISCRETIONARY 2,807,577 $80,942,000 5.63% Q2 2015
EVHC HEALTH CARE 1,194,543 $75,603,000 5.26% Q4 2016
WMGI HEALTH CARE 3,190,076 $73,308,000 5.10% Q4 2015
AGN HEALTH CARE 320,471 $67,302,000 4.68% Q4 2016
SHPG HEALTH CARE 388,981 $66,275,000 4.61% Q3 2016
CNC HEALTH CARE 1,018,513 $57,556,000 4.00% Q3 2014
UNH HEALTH CARE 355,036 $56,820,000 3.95% Q4 2016
CHTR CONSUMER DISCRETIONARY 192,448 $55,410,000 3.85% Q1 2013
MDCO HEALTH CARE 1,624,514 $55,136,000 3.83% Q2 2014
AET HEALTH CARE 413,536 $51,283,000 3.57% Q3 2015
INCY HEALTH CARE 509,982 $51,136,000 3.56% Q4 2016
GILD HEALTH CARE 711,420 $50,945,000 3.54% Q3 2016

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MRK HEALTH CARE 864,371 $50,886,000 3.54% Q4 2016
AWI INDUSTRIALS 1,161,456 $48,549,000 3.38% Q3 2016
NKTR HEALTH CARE 3,944,692 $48,401,000 3.37% Q4 2015
GDDY INFORMATION TECHNOLOGY 1,183,709 $41,371,000 2.88% Q4 2016
GRUB INFORMATION TECHNOLOGY 1,064,220 $40,036,000 2.78% Q3 2015
KSU TRANSPORTS 449,703 $38,157,000 2.65% Q4 2015
FB INFORMATION TECHNOLOGY 321,505 $36,989,000 2.57% Q2 2012
LBRDA CONSUMER DISCRETIONARY 435,892 $31,585,000 2.20% Q2 2015
VRSN INFORMATION TECHNOLOGY 386,011 $29,364,000 2.04% Q2 2012
IRWD HEALTH CARE 1,879,313 $28,735,000 2.00% Q1 2015
WCG HEALTH CARE 204,770 $28,070,000 1.95% Q2 2015
ALNY HEALTH CARE 718,615 $26,905,000 1.87% Q2 2012
LH HEALTH CARE 195,847 $25,143,000 1.75% Q1 2014
CMG CONSUMER DISCRETIONARY 64,064 $24,173,000 1.68% Q1 2016
TGTX HEALTH CARE 4,921,059 $22,883,000 1.59% Q3 2013
OPK HEALTH CARE 1,523,125 $14,165,000 0.98% Q1 2016
PVG MATERIALS 1,651,328 $13,607,000 0.95% Q2 2016
MGP REAL ESTATE 500,000 $12,655,000 0.88% Q2 2016
ERI CONSUMER DISCRETIONARY 695,428 $11,788,000 0.82% Q4 2016
ATRA HEALTH CARE 798,321 $11,336,000 0.79% Q4 2014
CMG(CALL) CONSUMER DISCRETIONARY 30,000 $11,320,000 0.79% Q3 2016
CHRS HEALTH CARE 329,345 $9,271,000 0.64% Q1 2016
ISLE CONSUMER DISCRETIONARY 205,440 $5,072,000 0.35% Q4 2016

COATUE MANAGEMENT
Top Buys: Bank of America Corp. (BAC) // NVIDIA Corp. (NVDA) // S&P Select Sector
(XLF) // JPMorgan Chase & Co. (JPM) // Walt Disney Co. (DIS)
Top Sells: Apple Inc. (AAPL) // Intel Corp. (INTC) // Facebook Inc. (FB) // Netflix Inc. (NFLX)
// Illumina Inc. (ILMN)
Laffonts’s 13F portfolio increased from $8.15B to $8.44B this quarter. The number of positions
remained steady at 96. The top three 13F positions are Facebook, Liberty Broadband and Nvidia
boosting the position by a whopping 115%, all positions together represent 21.33% of the total
portfolio value. The fund sold out of 4 stocks (TMO, INTC, SQ, SCTY), reduced holdings in 18
stocks and had 13 new purchases in Q4. Top 10 holdings represent 52.83% of the fund’s total
portfolio.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 58
 Coatue scooped up 5,934,579 additional shares in Fitbit (FIT) during the most recent
quarter end, the firm said in a disclosure report filed with the SEC. The investment
management firm now holds a total of 8,266,726 shares of Fitbit which is valued at
$60,512,000. Institutional sentiment is turning bullish.

 The fund upped its stake in Cal-Maine Foods (CLAM) by 109%. The fund bought 440k
shares which is a 0.44% portfolio position. The institutional sentiment is balanced with 51
funds creating new positions vs. 46 funds closing out their position. The strongest buyers
in Q4 are Massachusetts Financial Services and Perkins Investment Management. D.E.
Shaw & Co. and Valtura Capital, Hancock Holding and Pictet Asset Management sold all
of their shares.

 New positions were established in Bank of America (BAC) 14,682,934 shares or 3.84%
of their portfolio and Select Sector SPDR ETF – Financial Sector (XLF) 13,257,244
shares or 3.65% of their portfolio.

 Coatue’s international short positions are Hikma Pharmaceuticals PLC (0.9% net short
position), Rocket Internet SE (0.61% net short position) and Wirecard AG (0.66% net
short position).
 Comment: Rocket Internet SE is owned by the Samwer brothers who also founded
Zalandoo a European electronic commerce company seated in Berlin. The company
maintains a cross-platform online store that sells shoes, clothing and other fashion items.
They have built high-growth companies that were acquired by eBay, Groupon and News
Corporation. They have used their profits to invest in Facebook, LinkedIn and Zynga.
Marc, Alexander and Oliver Samwer, three publicity-shy brothers are among Europe's
most consistently successful digital entrepreneurs. Yet they are also are among the most
controversial. Mention the Samwer name at an internet conference from LeWeb in Paris
to Munich's DLD, and there's a good chance you'll hear them dismissed as "clone" kings,
who simply copy existing high-growth web companies often selling the businesses back to
the people who originated the idea. Their "clones" can be found in populous, non-English-
speaking countries including Germany, China, Russia and Brazil.

Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
FB INFORMATION TECHNOLOGY 6,086,200 $700,217,000 8.30% Q3 2013
LBRDK CONSUMER DISCRETIONARY 8,648,889 $640,623,000 7.59% Q2 2016
NVDA INFORMATION TECHNOLOGY 4,303,989 $459,408,000 5.44% Q3 2016
GOOG INFORMATION TECHNOLOGY 562,797 $434,378,000 5.15% Q2 2014
ATVI INFORMATION TECHNOLOGY 11,736,204 $423,795,000 5.02% Q4 2014
BABA INFORMATION TECHNOLOGY 4,259,322 $374,011,000 4.43% Q3 2016

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AAPL INFORMATION TECHNOLOGY 3,194,180 $369,949,000 4.38% Q3 2016
NFLX CONSUMER DISCRETIONARY 2,939,789 $363,946,000 4.31% Q4 2012
AVGO INFORMATION TECHNOLOGY 1,982,950 $350,526,000 4.15% Q1 2014
EA INFORMATION TECHNOLOGY 4,348,918 $342,521,000 4.06% Q4 2014
BAC FINANCE 14,682,934 $324,493,000 3.84% Q4 2016
JD CONSUMER DISCRETIONARY 12,700,181 $323,093,000 3.83% Q4 2014
EQIX INFORMATION TECHNOLOGY 891,795 $318,737,000 3.78% Q1 2015
XLF FINANCE 13,257,244 $308,231,000 3.65% Q4 2016
TWX CONSUMER DISCRETIONARY 2,839,859 $274,132,000 3.25% Q3 2016
PYPL INFORMATION TECHNOLOGY 5,204,285 $205,413,000 2.43% Q1 2016
AMZN CONSUMER DISCRETIONARY 273,298 $204,938,000 2.43% Q4 2009
LBTYK CONSUMER DISCRETIONARY 6,156,759 $182,856,000 2.17% Q1 2014
LBTYA CONSUMER DISCRETIONARY 5,742,150 $175,653,000 2.08% Q1 2012
JPM FINANCE 1,877,494 $162,009,000 1.92% Q4 2016
DIS CONSUMER DISCRETIONARY 1,457,400 $151,891,000 1.80% Q4 2016
AMT UTILITIES & TELECOMMUNICATIONS 1,309,632 $138,402,000 1.64% Q1 2012
GOOGL INFORMATION TECHNOLOGY 168,893 $133,839,000 1.59% Q3 2010
FFIV INFORMATION TECHNOLOGY 820,915 $118,803,000 1.41% Q1 2016
SYMC INFORMATION TECHNOLOGY 4,512,167 $107,796,000 1.28% Q2 2016
ZAYO UTILITIES & TELECOMMUNICATIONS 2,497,902 $82,081,000 0.97% Q3 2016
HAIN CONSUMER STAPLES 2,055,269 $80,217,000 0.95% Q2 2012
FIT INFORMATION TECHNOLOGY 8,266,726 $60,512,000 0.72% Q4 2015
SPLK INFORMATION TECHNOLOGY 1,101,790 $56,357,000 0.67% Q1 2016
MBLY INDUSTRIALS 1,268,030 $48,337,000 0.57% Q1 2016
TREE FINANCE 470,940 $47,730,000 0.57% Q2 2016
AMBA INFORMATION TECHNOLOGY 866,400 $46,898,000 0.56% Q1 2015
CALM CONSUMER STAPLES 840,934 $37,148,000 0.44% Q1 2016
HTZ CONSUMER DISCRETIONARY 1,642,158 $35,405,000 0.42% Q4 2016
AKRX HEALTH CARE 1,433,165 $31,286,000 0.37% Q4 2016
MLNX INFORMATION TECHNOLOGY 704,638 $28,820,000 0.34% Q4 2016
ALGT TRANSPORTS 161,372 $26,852,000 0.32% Q3 2016
W CONSUMER DISCRETIONARY 730,382 $25,600,000 0.30% Q3 2015
LCI HEALTH CARE 1,127,246 $24,856,000 0.29% Q4 2015
NTRI CONSUMER DISCRETIONARY 688,755 $23,865,000 0.28% Q1 2016
DATA INFORMATION TECHNOLOGY 498,835 $21,026,000 0.25% Q1 2016
JOY INDUSTRIALS 682,373 $19,106,000 0.23% Q1 2016
IMPV INFORMATION TECHNOLOGY 478,601 $18,378,000 0.22% Q1 2016
BOX INFORMATION TECHNOLOGY 1,124,614 $15,587,000 0.18% Q1 2015
SYNA INFORMATION TECHNOLOGY 265,578 $14,230,000 0.17% Q2 2016
NTNX INFORMATION TECHNOLOGY 500,700 $13,299,000 0.16% Q4 2016

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SSYS INFORMATION TECHNOLOGY 761,721 $12,599,000 0.15% Q2 2015
TWLO INFORMATION TECHNOLOGY 432,661 $12,482,000 0.15% Q2 2016
MTCH INFORMATION TECHNOLOGY 729,318 $12,471,000 0.15% Q2 2016
CMCM INFORMATION TECHNOLOGY 1,254,313 $11,991,000 0.14% Q4 2015
FEYE INFORMATION TECHNOLOGY 850,037 $10,115,000 0.12% Q4 2015
TSLA CONSUMER DISCRETIONARY 39,643 $8,471,000 0.10% Q4 2016
SHAK CONSUMER DISCRETIONARY 215,917 $7,728,000 0.09% Q4 2015
ILMN HEALTH CARE 56,698 $7,260,000 0.09% Q4 2014
SDRL ENERGY 1,970,630 $6,720,000 0.08% Q1 2016
ACIA INFORMATION TECHNOLOGY 61,864 $3,820,000 0.05% Q3 2016

GLENVIEW CAPITAL MANAGEMENT
Top Buys: Lowes Companies Inc. (LOW) // ALPHABET INC. (GOOGL) // Apple Inc. (AAPL)
// Quintiles Transnational (Q) // Dow Chemical Co. (DOW)
Top Sells: Humana Inc. (HUM) // CBS Corp. (CBS) // IMS HEALTH HLD (IMS) // HERTZ
GLOBAL HLD (HTZ) // E. I. du Pont de Ne. (DD)
The 13F portfolio increased from $13.98B to $14.79B this quarter. The number of positions
increased by 12. The top three 13F positions are HCA Holdings, Humana which was trimmed by
33% and Anthem increasing the position by 4%, all positions together represent 23.52% of the
total portfolio value. The fund sold out of 9 stocks, reduced holdings in 12 stocks and had 21 new
purchases in Q4. Top 10 holdings represent 51.83% of the fund’s total portfolio.

 Glenview Capital Management LLC purchased a new stake in shares of Dow Chemical
Co (DOW) during Q4, according to its most recent 13F filing with the SEC. The firm
purchased 8,798,083 shares of the company’s stock, valued at approximately $503,426,000
boosting their existing position by 49%. Dow Chemical makes up 3.4% of Glenview
Capital Management LLC’s portfolio.

 Another new position is Lowe's Companies, Inc. (LOW) acquired during the fourth
quarter. The fund purchased 4,076,119 shares of the home improvement retailer’s stock,
valued at approximately $289,894,000. Lowe's Companies makes up 1.96% of Glenview
Capital Management LLC’s holdings, making the stock its 19th largest position. Glenview
Capital Management LLC owned about 0.47% of Lowe's Companies as of its most recent

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 61
filing with the SEC. The stock has gained almost 30% since November 2016. We expect
funds liquidating their positions and taking profits. In the most recent quarter 136 funds
created a new position vs. 100 funds closing out their position.

 Quintinles Transnational (Q) was the new favorite for Glenview boosting the position
by 104% in the most recent quarter. It’s the eleventh largest holding of Glenview. The
investment sentiment is bullish. 102 funds are creating new positions vs. 42 closing out
their position. Among the strongest advocates of this stock are TPG Group with 49,651,557
shares and Canada Pension Plan with 19,408,881 shares.

 AbbVie (ABBV) is a pretty big conviction bet for Glenview as it makes up 3.86% of the
fund’s 13F portfolio. For the quarter ended on December, 2016, the investment fund upped
its holding by 51%.
 Comment: Net income is solid with a 15.7% increase in FY2016. The company also enjoys
high margins. Namely, net profit margin exceeded 23% and operating margin was above
36% in FY2016 with the former being stable YoY and the latter increased by 3%.

Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
HCA HEALTH CARE 18,181,441 $1,345,790,000 9.10% Q1 2011
HUM HEALTH CARE 6,313,790 $1,288,203,000 8.71% Q4 2012
ANTM HEALTH CARE 5,874,049 $844,512,000 5.71% Q4 2014
CI HEALTH CARE 5,662,086 $755,266,000 5.11% Q4 2007
AET HEALTH CARE 5,194,064 $644,116,000 4.35% Q4 2013
GOOGL INFORMATION TECHNOLOGY 763,605 $605,119,000 4.09% Q1 2015
ABBV HEALTH CARE 9,116,969 $570,905,000 3.86% Q1 2015
FMC MATERIALS 9,547,818 $540,025,000 3.65% Q1 2015
LH HEALTH CARE 4,188,260 $537,689,000 3.64% Q2 2015
FLEX INFORMATION TECHNOLOGY 37,170,589 $534,141,000 3.61% Q1 2009
Q HEALTH CARE 6,927,335 $526,824,000 3.56% Q2 2016
TMO HEALTH CARE 3,659,734 $516,388,000 3.49% Q2 2006
CSC INFORMATION TECHNOLOGY 8,655,256 $514,295,000 3.48% Q4 2015
DOW MATERIALS 8,798,083 $503,426,000 3.40% Q3 2014
AAPL INFORMATION TECHNOLOGY 3,153,095 $365,191,000 2.47% Q3 2016
CBS CONSUMER DISCRETIONARY 5,128,539 $326,278,000 2.21% Q2 2013
CAR TRANSPORTS 8,298,004 $304,371,000 2.06% Q1 2014
HLS HEALTH CARE 7,269,780 $299,806,000 2.03% Q1 2015
LOW CONSUMER DISCRETIONARY 4,076,119 $289,894,000 1.96% Q4 2016

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THC HEALTH CARE 17,890,230 $265,491,000 1.79% Q1 2012
WMB ENERGY 8,439,958 $262,820,000 1.78% Q2 2016
LBTYA CONSUMER DISCRETIONARY 7,820,359 $239,225,000 1.62% Q2 2014
CHTR CONSUMER DISCRETIONARY 772,597 $222,446,000 1.50% Q3 2015
BKD HEALTH CARE 16,630,415 $206,550,000 1.40% Q2 2014
FDC INFORMATION TECHNOLOGY 13,547,383 $192,237,000 1.30% Q2 2016
UHS HEALTH CARE 1,762,915 $187,539,000 1.27% Q3 2016
RLGY REAL ESTATE 7,001,585 $180,151,000 1.22% Q3 2014
LBTYK CONSUMER DISCRETIONARY 5,840,944 $173,476,000 1.17% Q2 2014
MAN INDUSTRIALS 1,732,470 $153,965,000 1.04% Q1 2015
VER FINANCE 17,918,813 $151,593,000 1.02% Q4 2014
V INFORMATION TECHNOLOGY 1,879,783 $146,661,000 0.99% Q4 2016
PAH MATERIALS 13,847,112 $135,840,000 0.92% Q3 2016
WBA CONSUMER STAPLES 1,500,000 $124,140,000 0.84% Q4 2016
MTOR CONSUMER DISCRETIONARY 8,126,817 $100,935,000 0.68% Q2 2007
MCK HEALTH CARE 683,516 $96,000,000 0.65% Q4 2016
HTZ CONSUMER DISCRETIONARY 4,364,904 $94,107,000 0.64% Q1 2014
ENDP HEALTH CARE 4,250,784 $70,010,000 0.47% Q3 2016
PHH INDUSTRIALS 4,541,229 $68,845,000 0.47% Q4 2013
CCE CONSUMER STAPLES 2,014,061 $63,242,000 0.43% Q3 2016
TLRD 2,400,000 $61,320,000 0.41% Q3 2016
MRVL INFORMATION TECHNOLOGY 3,922,703 $54,408,000 0.37% Q2 2016
EBAY INFORMATION TECHNOLOGY 1,647,248 $48,907,000 0.33% Q4 2016
TWX CONSUMER DISCRETIONARY 400,000 $38,612,000 0.26% Q3 2016
KMI UTILITIES & TELECOMMUNICATIONS 1,819,630 $37,685,000 0.25% Q4 2016
ABG CONSUMER DISCRETIONARY 574,731 $35,461,000 0.24% Q2 2014
MON MATERIALS 304,400 $32,026,000 0.22% Q3 2013
HCA(CALL) HEALTH CARE 250,000 $18,505,000 0.13% Q4 2016
KND HEALTH CARE 1,999,713 $15,698,000 0.11% Q3 2015
C/WS/A 8,031,020 $1,221,000 0.01% Q1 2011

ARTAL GROUP S.A.
Top Buys: MetLife Inc. (MET) call // Wells Fargo & Co. (WFC) call // JPMorgan Chase & Co.
(JPM) call // Regeneron Pharm. (REGN) call // Alexion Pharmac. (ALXN)
Top Sells: Goldman Sachs Group (GS) call // Bank of America Corp. (BAC) call // Goldman
Sachs Group (GS) // ALPHABET INC. (GOOGL) call // Alnylam Pharmac. (ALNY)

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 63
In the most recent reporting quarter the 13F filing shows 74 total positions, 10 new positions and
14 sold out positions. The fund is still holding on to his biggest portfolio position Blue Buffalo
Pet Products (BUFF) which amounts to 46.67% of the portfolio. The fund has 56.99% of its
assets invested in the consumer staples sector maintaining his high exposure since Q3 2015. Why
do they like this sector so much? The consumer staples sector has outperformed all but one sector
since 1962. Through June 30, 2015, the consumer staples sector has returned 12.9% annually,
which is nearly 200 basis points (bps) better than the Russell 3000 Index over that period of time.
More importantly, the consumer staples sector has outperformed the S&P 500 during the last three
recessionary periods. Due to their low volatility, consumer staples stocks are considered to play a
key role in defensive strategies.

 The three largest new buys for this quarter are ZTO Express (ZTO) 1 million shares,
Nektar Therapeutics (NKTR) 500k shares and Zafgen (ZFGN) 500k shares. Spark
Investment Management LLC boosted its position in Zafgen by 73.5% in the third quarter.
Spark Investment Management LLC now owns 347,500 shares of the biopharmaceutical
company’s stock valued at $1,150,000 after buying an additional 147,200 shares during the
period. Dimensional Fund Advisors LP boosted its position in Zafgen by 41.5% in the
fourth quarter. Dimensional Fund Advisors LP now owns 306,462 shares of the
biopharmaceutical company’s stock valued at $975,000 after buying an additional 89,805
shares during the period.

* Top 50 Holdings
Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
BUFF CONSUMER STAPLES 87,460,875 $2,102,559,000 46.67% Q3 2015
LXRX HEALTH CARE 57,517,977 $795,474,000 17.66% Q2 2012
WTW CONSUMER DISCRETIONARY 29,443,300 $337,126,000 7.48% Q2 2012
MET(CALL) FINANCE 1,750,000 $94,308,000 2.09% Q1 2014
CELG(CALL) HEALTH CARE 700,000 $81,025,000 1.80% Q1 2015
REGN(CALL) HEALTH CARE 180,000 $66,076,000 1.47% Q1 2016
INCY HEALTH CARE 650,000 $65,176,000 1.45% Q1 2014
WFC(CALL) FINANCE 1,000,000 $55,110,000 1.22% Q3 2016
JPM(CALL) FINANCE 600,000 $51,774,000 1.15% Q1 2014
BMY(CALL) HEALTH CARE 800,000 $46,752,000 1.04% Q3 2016
CMG(CALL) CONSUMER DISCRETIONARY 115,000 $43,392,000 0.96% Q3 2016
ALXN(CALL) HEALTH CARE 350,000 $42,823,000 0.95% Q3 2016
BIIB(CALL) HEALTH CARE 150,000 $42,537,000 0.94% Q1 2014
BAC(CALL) FINANCE 1,600,000 $35,360,000 0.78% Q1 2016

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FXI(CALL) FINANCE 1,000,000 $34,710,000 0.77% Q3 2016
WMT(CALL) CONSUMER STAPLES 500,000 $34,560,000 0.77% Q1 2015
AGIO HEALTH CARE 750,000 $31,298,000 0.69% Q3 2013
BMRN HEALTH CARE 350,000 $28,994,000 0.64% Q2 2012
BLUE HEALTH CARE 422,536 $26,070,000 0.58% Q3 2013
AGIO(CALL) HEALTH CARE 600,000 $25,038,000 0.56% Q4 2015
ALXN HEALTH CARE 200,000 $24,470,000 0.54% Q4 2016
BABA INFORMATION TECHNOLOGY 250,000 $21,953,000 0.49% Q3 2014
ATH FINANCIAL 400,000 $19,196,000 0.43% Q4 2016
ALNY HEALTH CARE 500,000 $18,720,000 0.42% Q4 2013
IBM(CALL) INFORMATION TECHNOLOGY 100,000 $16,599,000 0.37% Q2 2016
SRPT(CALL) HEALTH CARE 600,000 $16,458,000 0.37% Q4 2015
PFE(CALL) HEALTH CARE 500,000 $16,240,000 0.36% Q3 2016
VRTX(CALL) HEALTH CARE 200,000 $14,734,000 0.33% Q2 2016
LLY(CALL) HEALTH CARE 200,000 $14,710,000 0.33% Q4 2016
BMRN(CALL) HEALTH CARE 150,000 $12,426,000 0.28% Q4 2016
NKTR HEALTH CARE 1,000,000 $12,270,000 0.27% Q2 2012
ZTO AIR SERVICES 1,000,000 $12,070,000 0.27% Q4 2016
CELG HEALTH CARE 100,000 $11,575,000 0.26% Q4 2016
KITE HEALTH CARE 250,000 $11,210,000 0.25% Q3 2014
ARRY HEALTH CARE 1,250,000 $10,988,000 0.24% Q2 2012
INCY(CALL) HEALTH CARE 100,000 $10,027,000 0.22% Q3 2016
IONS(CALL) HEALTH CARE 200,000 $9,566,000 0.21% Q3 2016
BGNE HEALTH CARE 300,000 $9,108,000 0.20% Q4 2016
FOLD HEALTH CARE 1,750,000 $8,698,000 0.19% Q2 2016
AGEN HEALTH CARE 2,000,000 $8,240,000 0.18% Q2 2012
HZNP HEALTH CARE 500,000 $8,090,000 0.18% Q2 2016
IRWD HEALTH CARE 516,879 $7,903,000 0.18% Q2 2012
SAGE HEALTH CARE 150,000 $7,659,000 0.17% Q3 2016
ALNY(CALL) HEALTH CARE 200,000 $7,488,000 0.17% Q1 2016
AVXS HEALTH CARE 150,000 $7,160,000 0.16% Q1 2016
ATRA HEALTH CARE 500,000 $7,100,000 0.16% Q3 2016
MCRB HEALTH CARE 700,000 $6,930,000 0.15% Q2 2015
JD(CALL) CONSUMER DISCRETIONARY 250,000 $6,360,000 0.14% Q2 2016
MS(CALL) FINANCE 150,000 $6,338,000 0.14% Q4 2016
BLUE(CALL) HEALTH CARE 100,000 $6,170,000 0.14% Q3 2015

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 65
ARIEL INVESTMENTS
Top Buys: KEYSIGHT TECHN. (KEYS) // Cowen Group Inc. (COWN) // Philip Morris
International (PM) // MTS Systems Corp. (MTSC) // ATLAS FINANCIAL HOLDINGS (AFH)
Top Sells: Rockwell Collins Inc. (COL) // Kennametal Inc. (KMT) // Simpson Manufacturing
(SSD) // Brady Corp. Class A (BRC)

John W. Roger’s Ariel Investments is an Illinois-based investment manager that specializes in
small-cap and mid-cap stocks. It follows a value-based approach of targeting undervalued
companies that show potential for growth. Its Ariel Focus Fund has total assets under management
(AUM) of around $8.47 billion, which the fund has invested in around 190 holdings. The Fund
outperformed its index during the fourth-quarter, as the overall stock market also did well shaking
off the Trump election.
The 13F portfolio increased from $8.26B to $8.47B this quarter. The number of positions increased
by 5. Ariel Investments’ largest holding is Lazard Ltd. Class A with shares held of 6,483,375. The
fund sold out of 10 stocks, reduced holdings in 101 stocks and had 15 new purchases in Q4. Top
10 holdings represent 51.83% of the fund’s total portfolio.
Charles Bobrinskoy, head of investment group comments:
Inflation expectations are now relatively low, economic data show, which is just silly. There's a
lot of cash, a lot of lending going on around the world … labor costs are going up. We have the
first president who's ever tried to talk down the value of the U.S. dollar; that's never happened
before. And the dollar going down is what inflation is all about.

 In the last quarter of the year, Ariel Investments purchased Keysight Technologies
(KEYS), a leading test and measurement business for electronics, in all three portfolios.
The company’s long history dates back to its formation as the measurement business of
Hewlett-Packard (HPE), which has resulted in deeply rooted relationships, leading market
share, and a seat at the table during the development of new technologies. Recently spun-
off from Agilent Technologies, Inc. (A), investors are discarding the shares due to a
perceived lack of near-term growth prospects. The management team sees this as an
attractive long-term opportunity to own a niche market leader with excellent free cash flow
generation. The most recent 13F filing reported 3,320,024 shares which is 1.43% of their
total portfolio. The technical chart shows a strong bullish trend. The institutional sentiment
is bullish with 58 funds creating new positions vs. 25 funds closing out their position.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 66
 A new stake was initiated in Atlas Financial Holdings Inc. (AFH), an insurance
company focusing on the light commercial automobile sector, including taxi cabs, non-
emergency paratransit, limousine, livery and business automobiles. They bought a total of
980k shares making them the largest buyer of this stock.

* Top 50 Holdings
Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
LAZ FINANCE 6,483,375 $266,402,000 3.14% Q3 2009
KMT INDUSTRIALS 7,283,818 $227,692,000 2.69% Q2 2014
FAF FINANCE 5,511,941 $201,902,000 2.38% Q1 2011
BRS ENERGY 9,789,512 $200,489,000 2.37% Q4 2012
NTRS FINANCE 2,150,452 $191,498,000 2.26% Q4 2002
LH HEALTH CARE 1,470,340 $188,762,000 2.23% Q1 2014
ZBRA INFORMATION TECHNOLOGY 2,139,837 $183,512,000 2.17% Q4 2013
IPG CONSUMER DISCRETIONARY 7,639,560 $178,842,000 2.11% Q1 2002
BIDU INFORMATION TECHNOLOGY 1,046,203 $172,006,000 2.03% Q1 2013
BIO HEALTH CARE 886,827 $161,651,000 1.91% Q3 2005
KKR FINANCE 10,357,455 $159,401,000 1.88% Q3 2011
MSFT INFORMATION TECHNOLOGY 2,548,541 $158,366,000 1.87% Q3 2010
AXE INFORMATION TECHNOLOGY 1,952,923 $158,284,000 1.87% Q1 2002
JLL REAL ESTATE 1,554,422 $157,059,000 1.85% Q1 2002
MSGN 6,545,162 $140,721,000 1.66% Q4 2015
SJM CONSUMER STAPLES 1,083,778 $138,789,000 1.64% Q1 2002
TGNA CONSUMER DISCRETIONARY 6,351,002 $135,848,000 1.60% Q1 2006
VIAB CONSUMER DISCRETIONARY 3,693,761 $129,651,000 1.53% Q3 2009
WU INFORMATION TECHNOLOGY 5,956,053 $129,365,000 1.53% Q2 2012
NOK INFORMATION TECHNOLOGY 26,722,490 $128,535,000 1.52% Q1 2012
ISCA CONSUMER DISCRETIONARY 3,483,402 $128,189,000 1.51% Q1 2012
MAT CONSUMER DISCRETIONARY 4,460,539 $122,888,000 1.45% Q2 2015
KEYS HEALTH CARE 3,320,024 $121,413,000 1.43% Q4 2016
CBG REAL ESTATE 3,821,756 $120,347,000 1.42% Q3 2007
CRL HEALTH CARE 1,576,856 $120,141,000 1.42% Q3 2011
SNA CONSUMER DISCRETIONARY 684,163 $117,177,000 1.38% Q1 2012
ZBH HEALTH CARE 1,129,553 $116,570,000 1.38% Q2 2009
HAR CONSUMER DISCRETIONARY 1,036,078 $115,170,000 1.36% Q1 2013
GILD HEALTH CARE 1,584,199 $113,444,000 1.34% Q2 2012
AFL FINANCE 1,623,769 $113,014,000 1.33% Q2 2008

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SWK CONSUMER DISCRETIONARY 965,758 $110,763,000 1.31% Q1 2010
BRC INDUSTRIALS 2,830,048 $106,268,000 1.25% Q1 2002
MDP CONSUMER DISCRETIONARY 1,752,372 $103,653,000 1.22% Q3 2008
MTSC INFORMATION TECHNOLOGY 1,791,564 $101,582,000 1.20% Q2 2013
JNJ HEALTH CARE 870,359 $100,274,000 1.18% Q1 2007
OMC CONSUMER DISCRETIONARY 1,117,699 $95,127,000 1.12% Q3 2002
DNB INDUSTRIALS 777,739 $94,355,000 1.11% Q1 2003
ITW INDUSTRIALS 754,329 $92,375,000 1.09% Q3 2007
JNS FINANCE 6,579,350 $87,308,000 1.03% Q1 2003
RCL CONSUMER DISCRETIONARY 1,052,646 $86,359,000 1.02% Q2 2007
SSD INDUSTRIALS 1,903,201 $83,265,000 0.98% Q2 2011
PM CONSUMER STAPLES 876,515 $80,192,000 0.95% Q3 2013
MSG CONSUMER DISCRETIONARY 456,825 $78,351,000 0.92% Q4 2015
CBS CONSUMER DISCRETIONARY 1,200,657 $76,386,000 0.90% Q2 2006
BRK.B FINANCE 467,962 $76,268,000 0.90% Q3 2013
BWA CONSUMER DISCRETIONARY 1,752,713 $69,127,000 0.82% Q1 2016
LFUS INFORMATION TECHNOLOGY 455,005 $69,056,000 0.82% Q1 2002
TISI INDUSTRIALS 1,748,481 $68,628,000 0.81% Q1 2010
DV CONSUMER DISCRETIONARY 2,188,443 $68,279,000 0.81% Q1 2010
TMO HEALTH CARE 483,526 $68,226,000 0.81% Q4 2006

CAMBER CAPITAL MANAGEMENT
Top Buys: Stryker Corp. (SYK) put // Allergan PLC (AGN) // Myriad Genetics Inc. (MYGN) //
Vertex Pharmaceuticals (VRTX) // BIOGEN INC. (BIIB)
Top Sells: SPDR S&P 500 ETF Index (SPY) put // Teva Pharmaceuticals (TEVA) call //
Medicines Company (MDCO) // Community Health Systems (CYH) // Tenet Healthcare Corp.
(THC)
 Camber Capital reduced its stake in Arena Pharmaceuticals (ARNA) to 0.31% of the
portfolio value down from 0.81% during the fourth quarter. Camber was the second largest
seller of this stock during the fourth quarter as it pared its holding to $6.03 million. FMR
LLC and Wellington Management were the other large funds which sold a substantial
number of ARNA shares.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 68
 The fund added 2.63 million shares of Endologix (ELGX) to its equity portfolio during
the fourth quarter and held 3.63 million shares worth $20.79 million at the end of
December. 27 funds are creating new positions vs. 39 funds are reducing their position.

 Other notable portfolio additions were Biolase, Myriad Genetics and Nektar
Therapeutics where they upped their stake by 87%.

 Two of the largest shareholders in Community Health Systems (CYH), North Tide
Capital and Camber Capital Management have sold their entire stakes in the troubled
hospital company. The Boston-based hedge funds have activist histories, often pushing
management and operating reforms at underperforming companies where they've invested.
This time it looks like it didn’t work out.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
TEVA HEALTH CARE 4,724,450 $171,261,000 8.92% Q3 2011
MYL HEALTH CARE 4,145,889 $158,166,000 8.24% Q3 2015
SYK(PUT) HEALTH CARE 1,000,000 $119,810,000 6.24% Q4 2016
AGN HEALTH CARE 543,000 $114,035,000 5.94% Q4 2016
GILD HEALTH CARE 1,500,000 $107,415,000 5.59% Q2 2016
PRGO HEALTH CARE 1,208,200 $100,558,000 5.24% Q2 2016
SEM HEALTH CARE 6,025,000 $79,831,000 4.16% Q1 2015
NKTR HEALTH CARE 6,000,000 $73,620,000 3.83% Q2 2015
GHDX HEALTH CARE 2,458,100 $72,244,000 3.76% Q1 2014
GILD(CALL) HEALTH CARE 1,000,000 $71,610,000 3.73% Q1 2016
BKD HEALTH CARE 5,500,000 $68,310,000 3.56% Q4 2015
MYGN HEALTH CARE 4,060,000 $67,680,000 3.52% Q4 2016
ENDP HEALTH CARE 3,902,000 $64,266,000 3.35% Q2 2016
CSII HEALTH CARE 2,500,000 $60,525,000 3.15% Q2 2016
ALKS HEALTH CARE 1,000,000 $55,580,000 2.89% Q1 2016
VRTX HEALTH CARE 750,000 $55,253,000 2.88% Q4 2016
OFIX HEALTH CARE 1,500,000 $54,270,000 2.83% Q2 2014
LIVN HEALTH CARE 1,200,000 $53,964,000 2.81% Q4 2015
BIIB HEALTH CARE 175,000 $49,626,000 2.58% Q1 2016
UAM FINANCE 4,875,000 $48,506,000 2.53% Q1 2013
AMGN HEALTH CARE 300,000 $43,863,000 2.28% Q4 2016

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ABT HEALTH CARE 1,000,000 $38,410,000 2.00% Q4 2016
CNMD HEALTH CARE 750,000 $33,128,000 1.73% Q3 2016
ATHN HEALTH CARE 300,000 $31,551,000 1.64% Q4 2016
AMAG HEALTH CARE 611,390 $21,276,000 1.11% Q1 2016
ELGX HEALTH CARE 3,635,000 $20,792,000 1.08% Q1 2016
ELOS HEALTH CARE 2,347,593 $19,720,000 1.03% Q4 2015
NVTA HEALTH CARE 2,398,123 $19,041,000 0.99% Q1 2015
CNC HEALTH CARE 200,000 $11,302,000 0.59% Q4 2016
BIOS HEALTH CARE 10,180,000 $10,587,000 0.55% Q1 2015
BIOL HEALTH CARE 5,332,394 $7,465,000 0.39% Q3 2013
ARNA HEALTH CARE 4,250,000 $6,035,000 0.31% Q1 2015
PLX(PRN) HEALTH CARE 9,000,000 $4,579,000 0.24% Q4 2014
CATB HEALTH CARE 1,000,000 $3,610,000 0.19% Q2 2015
CBIO(PRN) HEALTH CARE 112,320 $1,685,000 0.09% Q4 2015
DXTR HEALTH CARE 837,483 $804,000 0.04% Q2 2014
BIOL(CALL) HEALTH CARE 1,841,173 $0 0.00% Q4 2016

BROWN CAPITAL MANAGEMENT
Top Buys: PAYCOM SOFTWARE (PAYC) // ZOE’S KITCHENN (ZOES) // Neogen Corp.
(NEOG) // Balchem Corp. (BCPC) // Sun Hydraulics Corp. (SNHY)
Top Sells: DTS Inc. (DTSI) // Medidata Solutions Inc. (MDSO) // Meridian Biosciences (VIVO
// Veeva Systems (VEEV) // ANSYS Inc. (ANSS)
Their last reported 13F filing for Q4 2016 included $6,849,281,000 in managed 13F securities
and a top 10 holdings concentration of 46.88%. Brown Capital Management's largest holding is
Cognex Corp with shares held of 6,088,979.
 Brown Capital Management LLC reduced its stake in JPMorgan Chase & Co. (JPM) by
12.0% during the fourth quarter, according to its most recent filing with the Securities and
Exchange Commission (SEC). The institutional investor owned 19,095 shares of the
financial services provider’s stock after selling 2,592 shares during the period. Brown
Capital Management LLC’s holdings in JPMorgan Chase & Co. were worth $1,648,000 at
the end of the most recent quarter. Brown capital is taking the opposite view of the
investment community when it comes to the financial sector. They are trimming their
financial sector exposure since Q2 2012.

 They trimmed its stake in Apple Inc. (AAPL) by 41.3% during the fourth quarter. The
fund owned 41,458 shares of the iPhone maker’s stock after selling 29,157 shares during
the period.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 70
 The fund upped its stake in Guidewire Software (GWRE) by 28% to 4,119,943 shares
held. The institutional sentiment is bearish with 28 funds creating new positions vs. 43
funds closing out their position. The largest sellers in Q4 were Oppenheimer, Wellington
Management and Millennium Management.

 Zoes Kitchen (ZOES) and Paycom Software (PAYC) were listed as two new stakes.
 Comment: With its 16Q4 release ZOES delivered its third miss in a row. The comp miss,
at 0.7%, vs. 1.3% expected, was generated by combined traffic and mix (not quite clear),
down a total of 240 bps (traffic was-50 bps in Q3 and. +90 bps in Q2, mix not disclosed,
but apparently worsening ). The company is transitioning from negative earnings to
positive earnings by their P/E multiples which makes this investment a turnaround bet.

*Top 50 Holdings
Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
CGNX INFORMATION TECHNOLOGY 6,088,979 $387,381,000 5.66% Q3 2009
NEOG HEALTH CARE 5,368,547 $354,324,000 5.17% Q3 2009
CMD HEALTH CARE 4,263,602 $335,759,000 4.90% Q2 2010
BLKB INFORMATION TECHNOLOGY 5,233,597 $334,950,000 4.89% Q3 2009
MANH INFORMATION TECHNOLOGY 5,939,006 $314,945,000 4.60% Q3 2009
TYL INFORMATION TECHNOLOGY 2,187,420 $312,298,000 4.56% Q3 2009
BCPC MATERIALS 3,630,745 $304,692,000 4.45% Q3 2009
MDSO HEALTH CARE 5,888,776 $292,496,000 4.27% Q2 2010
VEEV INFORMATION TECHNOLOGY 7,176,697 $292,092,000 4.26% Q2 2015
ANSS INFORMATION TECHNOLOGY 3,048,207 $281,929,000 4.12% Q3 2009
INCY HEALTH CARE 2,643,420 $265,056,000 3.87% Q3 2009
ACIW INFORMATION TECHNOLOGY 13,769,240 $249,912,000 3.65% Q3 2009
TECH HEALTH CARE 2,291,016 $235,585,000 3.44% Q3 2009
NTCT INFORMATION TECHNOLOGY 7,090,777 $223,359,000 3.26% Q3 2009
EGOV INFORMATION TECHNOLOGY 8,752,496 $209,185,000 3.05% Q3 2009
GWRE INFORMATION TECHNOLOGY 4,119,943 $203,237,000 2.97% Q1 2015
ABAX HEALTH CARE 3,763,823 $198,617,000 2.90% Q3 2009
PRLB CONSUMER DISCRETIONARY 3,694,345 $189,705,000 2.77% Q2 2014
ELLI INFORMATION TECHNOLOGY 2,075,381 $173,668,000 2.54% Q1 2015
SNHY INDUSTRIALS 4,192,774 $167,585,000 2.45% Q3 2009
QSII INFORMATION TECHNOLOGY 9,494,856 $124,857,000 1.82% Q3 2009
QDEL HEALTH CARE 5,739,017 $122,930,000 1.79% Q1 2013
PRO INFORMATION TECHNOLOGY 4,884,820 $105,121,000 1.53% Q3 2009
PAYC INFORMATION TECHNOLOGY 2,262,796 $102,935,000 1.50% Q4 2016

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VIVO HEALTH CARE 5,691,631 $100,742,000 1.47% Q3 2009
INGN HEALTH CARE 1,417,248 $95,197,000 1.39% Q2 2016
DIOD INFORMATION TECHNOLOGY 3,192,377 $81,948,000 1.20% Q3 2009
VCRA INFORMATION TECHNOLOGY 4,303,558 $79,573,000 1.16% Q1 2013
ABMD HEALTH CARE 701,811 $79,080,000 1.15% Q1 2016
ZOES CONSUMER DISCRETIONARY 3,224,746 $77,362,000 1.13% Q4 2016
ICLR HEALTH CARE 586,053 $44,071,000 0.64% Q3 2009
CCL CONSUMER DISCRETIONARY 843,567 $43,916,000 0.64% Q1 2012
AMSWA INFORMATION TECHNOLOGY 4,246,871 $43,870,000 0.64% Q3 2009
BOOM INDUSTRIALS 2,341,002 $37,105,000 0.54% Q3 2009
ELGX HEALTH CARE 6,113,620 $34,970,000 0.51% Q2 2016
GEOS INFORMATION TECHNOLOGY 1,577,133 $32,110,000 0.47% Q1 2012
QGEN HEALTH CARE 961,769 $28,013,000 0.41% Q2 2014
CHKP INFORMATION TECHNOLOGY 282,774 $23,883,000 0.35% Q4 2014
FLIR INFORMATION TECHNOLOGY 559,570 $20,251,000 0.30% Q3 2009
JCI INDUSTRIALS 484,650 $19,963,000 0.29% Q3 2009
DLB INFORMATION TECHNOLOGY 440,949 $19,926,000 0.29% Q3 2009
BRKR HEALTH CARE 860,613 $18,228,000 0.27% Q3 2009
SSL ENERGY 611,639 $17,487,000 0.26% Q3 2009
IVZ FINANCE 492,811 $14,952,000 0.22% Q3 2009
NBR ENERGY 762,115 $12,499,000 0.18% Q3 2009
TEVA HEALTH CARE 289,365 $10,489,000 0.15% Q4 2011
AVDL HEALTH CARE 969,662 $10,075,000 0.15% Q3 2009
CELG HEALTH CARE 65,630 $7,597,000 0.11% Q3 2009
NUAN INFORMATION TECHNOLOGY 486,642 $7,251,000 0.11% Q3 2009
MASI HEALTH CARE 87,286 $5,883,000 0.09% Q3 2015

DREMAN VALUE MANAGEMENT
Top Buys: Wells Fargo & Co. (WFC) // Rio Tinto plc (RIO) // 21st Century Fox (FOXA) //
Kroger Co. (KR) // SLM Corp. (SLM)
Top Sells: Intel Corp. (INTC) // Chubb Limited (CB) // ETN Eaton Corp. (ETN) // Phillips 66
(PSX) // Aetna Inc. (AET)

Dreman Value Management LLC was founded in 1997. It follows a contrarian value investment
strategy. The firm undertakes bottom-up approach and mainly invests in shares with low P/E
ratio.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 72
 Office Depot (ODP) accounts for 0.30% of Dreman Value Management’s portfolio in the
Q4 reporting period. The investment fund initiated this new position buying 119,236
shares.
52 unds are creating new positions vs. 42 funds closing out their position.
 Comment: Office Depot has certainly been successful in cutting some of the excess costs
in its operations post OfficeMax acquisition, with SG&A coming down for three
consecutive years. ODP is targeting $750m in cost savings, up from $700m in 2016, with
the potential of finding an additional $250m in savings by the end of 2018.

 Dreman Value Management trimmed its holding in Ford (F) by 65% during Q4 to 29,267
shares. The market value of the holding stood at $355k and formed 0.20% of Dreman
Value Management’s portfolio. 140 hedge funds from our database have created new
positions in Ford Motor Company vs. 87 funds closing out their position.

 Dreman Value Management boosted its holding in MFA Financial (MFA) by 59,816
shares during Q4. The fund held $460,000 worth of MFA Financial stock at the end of
the quarter, forming 0.26% of its portfolio.

 The fund upped its position in Huntington Bancshares (HBAN) by a whopping 655%.
Other notable buyers are Capital International Investors buying 17.4 million shares and
Wellington Management buying 17.16 million shares. Institutional sentiment is bullish
with 99 funds creating new positions vs. 48 funds closing out their position.
 Comment: Huntington benefits of its acquisition of FirstMerit. The acquisition last year
gave Huntington its first entrance into Wisconsin and the Chicago area. It also more than
doubles the company's branch footprint in Michigan, and, perhaps most importantly,
makes Huntington the largest deposit holder in Ohio. President Trump's somewhat more
protectionist trade policies will most benefit states such as Ohio and Michigan.

*Top 50 highest portfolio increases
Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
TWO REAL ESTATE 52,004 $454,000 0.25% Q1 2014
MFA REAL ESTATE 60,241 $460,000 0.26% Q1 2016
TEN CONSUMER DISCRETIONARY 7,735 $483,000 0.27% Q1 2016
R TRANSPORTS 6,178 $460,000 0.26% Q1 2016
SKYW TRANSPORTS 13,617 $496,000 0.28% Q1 2016
BXMT REAL ESTATE 9,415 $283,000 0.16% Q1 2016

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HUN MATERIALS 22,782 $435,000 0.24% Q1 2016
BHLB FINANCE 4,755 $175,000 0.10% Q1 2016
BGCP FINANCE 48,759 $499,000 0.28% Q1 2016
NGHCN FINANCE 20,164 $504,000 0.28% Q1 2016
CACC FINANCE 2,125 $462,000 0.26% Q1 2016
PAY INFORMATION TECHNOLOGY 17,966 $319,000 0.18% Q1 2016
DDS CONSUMER DISCRETIONARY 7,490 $470,000 0.26% Q1 2016
SIGI FINANCE 11,073 $477,000 0.27% Q1 2016
CAA CONSUMER DISCRETIONARY 12,441 $423,000 0.24% Q1 2016
NSR INDUSTRIALS 16,576 $554,000 0.31% Q2 2014
ONB FINANCE 29,621 $538,000 0.30% Q1 2016
CTB CONSUMER DISCRETIONARY 12,155 $472,000 0.26% Q1 2016
TCB FINANCE 28,887 $566,000 0.32% Q1 2016
FGL FINANCE 15,927 $378,000 0.21% Q1 2016
AAN CONSUMER DISCRETIONARY 17,443 $558,000 0.31% Q1 2013
ALGT TRANSPORTS 1,812 $302,000 0.17% Q1 2016
PAG CONSUMER DISCRETIONARY 8,785 $455,000 0.26% Q1 2016
SAVE TRANSPORTS 8,428 $488,000 0.27% Q1 2016
DAN CONSUMER DISCRETIONARY 28,371 $539,000 0.30% Q1 2016
GNRC INDUSTRIALS 11,958 $487,000 0.27% Q1 2016
MLHR INDUSTRIALS 10,147 $347,000 0.19% Q1 2016
NRZ REAL ESTATE 29,302 $461,000 0.26% Q2 2015
BDC INDUSTRIALS 6,327 $473,000 0.27% Q3 2015
JLL REAL ESTATE 4,105 $415,000 0.23% Q2 2016
THG FINANCE 5,290 $481,000 0.27% Q1 2016
TIVO INFORMATION TECHNOLOGY 22,889 $478,000 0.27% Q1 2016
FAF FINANCE 10,784 $395,000 0.22% Q1 2016
RDN FINANCE 30,067 $541,000 0.30% Q1 2016
SLM FINANCE 53,606 $591,000 0.33% Q2 2016
TGT CONSUMER DISCRETIONARY 8,271 $597,000 0.33% Q2 2016
PPC CONSUMER STAPLES 20,341 $386,000 0.22% Q3 2014
STWD REAL ESTATE 12,603 $277,000 0.16% Q3 2015
LEN CONSUMER DISCRETIONARY 9,564 $411,000 0.23% Q2 2016
ADS INFORMATION TECHNOLOGY 1,930 $441,000 0.25% Q2 2016
CCK MATERIALS 7,461 $392,000 0.22% Q2 2016
RIO MATERIALS 20,621 $793,000 0.44% Q1 2016
JNPR INFORMATION TECHNOLOGY 16,468 $465,000 0.26% Q2 2016
MAN INDUSTRIALS 4,885 $434,000 0.24% Q2 2016
CDW CONSUMER DISCRETIONARY 8,572 $447,000 0.25% Q2 2016
SEP ENERGY 9,229 $423,000 0.24% Q1 2016

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WHR CONSUMER DISCRETIONARY 2,473 $450,000 0.25% Q1 2016
PHM CONSUMER DISCRETIONARY 21,692 $399,000 0.22% Q1 2016
LEA CONSUMER DISCRETIONARY 3,393 $449,000 0.25% Q1 2016
BG CONSUMER STAPLES 6,461 $467,000 0.26% Q2 2016

SECTOR GAMMA AS
Top Buys: Shire Plc (SHPG) // Anthem Inc. (ANTM) // Alexion Pharmaceuticals (ALXN) //
Abbott Laboratories (ABT) // Ironwood Pharmaceuticals (IRWD)
Top Sells: BIOGEN INC. (BIIB) // Exelixis Inc. (EXEL) // Lilly (Eli) & Co. (LLY) // Baxter
International (BAX) // Bristol-Myers Squibb (BMY)

 Sector Gamma As initiated holdings in Alexion Pharmaceuticals Inc. (ALXN) The
purchase prices was between $110.01 and $135.59, with an estimated average price of
$122.36. The impact to the portfolio due to this purchase was 1.12%. The holdings were
48,500 shares as of Q4. This buy is an arbitrage play.
 Comment: ALXN is a potentially attractive acquisition target for a number of companies.
Basically any large enough company that has or wants to have a major heme-onc franchise
with a promising late-stage next-generation pipeline asset that could take the franchise
well into the 2030s, and/or a specialist company in rare diseases. Companies like Pfizer,
Gilead, Novartis and Amgen might show an increased interest in this stock.

 In Q4 they added to the holdings in Shire PLC (SHPG) by 74.00%. The purchase prices
were between $163.77 and $197.7, with an estimated average price of $177.25. The
holdings were 146,961 shares as of 2016-12-31. 86 funds are creating new positions vs.
113 funds closing out their position.

 The fund upped its stake in Vertex Pharmaceuticals (VRTX) by 24.20%. The purchase
prices were between $72.02 and $95.36, with an estimated average price of $81.37. The
impact to the portfolio due to this purchase was 0.9%. The holdings were 333,950 shares
as of 2016-12-31.

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 75
 The position in Bristol Myers Squibb (BMY) was trimmed by 26.31%.Other notable
sellers are Renaissance Technologies and Winslow Capital. Currently there are 551 funds
adding to an existing position vs. 617 funds reducing their position.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
LLY HEALTH CARE 667,050 $49,062,000 9.23% Q3 2009
BAX HEALTH CARE 952,833 $42,249,000 7.95% Q2 2012
ABT HEALTH CARE 976,590 $37,511,000 7.06% Q2 2016
PKI HEALTH CARE 623,408 $32,511,000 6.12% Q2 2013
IRWD HEALTH CARE 1,972,678 $30,162,000 5.67% Q3 2013
BSX HEALTH CARE 1,255,580 $27,158,000 5.11% Q1 2011
BMY HEALTH CARE 449,290 $26,257,000 4.94% Q2 2014
GILD HEALTH CARE 359,290 $25,729,000 4.84% Q3 2016
SHPG HEALTH CARE 146,961 $25,039,000 4.71% Q1 2016
VRTX HEALTH CARE 333,950 $24,602,000 4.63% Q3 2014
IART HEALTH CARE 562,414 $24,125,000 4.54% Q4 2013
MASI HEALTH CARE 313,004 $21,096,000 3.97% Q4 2014
BIO HEALTH CARE 114,042 $20,788,000 3.91% Q2 2013
ANTM HEALTH CARE 140,810 $20,244,000 3.81% Q2 2016
MRK HEALTH CARE 283,410 $16,684,000 3.14% Q1 2016
MCK HEALTH CARE 115,200 $16,180,000 3.04% Q4 2015
PDCO HEALTH CARE 386,232 $15,847,000 2.98% Q1 2016
MNTA HEALTH CARE 855,265 $12,872,000 2.42% Q1 2015
CI HEALTH CARE 95,270 $12,708,000 2.39% Q2 2014
UTHR HEALTH CARE 67,974 $9,750,000 1.83% Q1 2016
LPNT HEALTH CARE 164,714 $9,356,000 1.76% Q3 2016
EXEL HEALTH CARE 520,091 $7,755,000 1.46% Q2 2016
OMI INDUSTRIALS 214,172 $7,558,000 1.42% Q2 2015
IPXL HEALTH CARE 499,153 $6,614,000 1.24% Q2 2016
ALXN HEALTH CARE 48,500 $5,934,000 1.12% Q4 2016
THC HEALTH CARE 252,080 $3,741,000 0.70% Q4 2013

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OKUMUS FUND MANAGEMENT
Top Buys: Gaming And Leisure (GLPI) // Endurance International (EIGI)
Top Sells: Ascent Capital Group (ASCMA) // Carlyle Group LP (CG) // Bazaarvoice Inc. (BV) //
Rubicon Project (RUBI)
Their last reported 13F filing for Q4 2016 included $429,180,000 in managed 13F securities and
a top 10 holdings concentration of 100.0%. Okumus Fund Management Ltd.'s largest holding is
WEB.COM Group with shares held of 9,526,833.
 In Q4 the funds initiated a new stake in Gaming And Leisure (GLPI) and upped its
position in Endurance International (EIGI) totaling 8,054,238 shares. 13 funds are
creating new positions vs. 11 funds closing out their position. Notable shareholders
significantly trimming their positions are FMR LLC and Wells Fargo.
 Comment: Endurance International Group Holdings (EIGI) last posted its quarterly
earnings data on Thursday, February 16th. The company reported ($0.05) EPS for the
quarter, topping the Zacks’ consensus estimate of ($0.29) by $0.24. Endurance
International Group Holdings had a negative net margin of 4.66% and a positive return
on equity of 18.29%. The company earned $292.10 million during the quarter, compared
to the consensus estimate of $277.58 million.

Shares Market % of Qrt 1st
Stock Sector Held Value Portfolio Owned
WEB INFORMATION TECHNOLOGY 9,526,833 $201,493,000 46.95% Q3 2014
EIGI INFORMATION TECHNOLOGY 7,035,712 $65,432,000 15.25% Q2 2016
VRX HEALTH CARE 4,098,817 $59,515,000 13.87% Q4 2015
CG FINANCE 3,389,363 $51,688,000 12.04% Q4 2015
ASCMA INDUSTRIALS 1,237,459 $20,121,000 4.69% Q1 2015
JIVE INDUSTRIALS 3,284,974 $14,290,000 3.33% Q3 2015
GLPI REAL ESTATE 242,820 $7,435,000 1.73% Q4 2016
RUBI CONSUMER DISCRETIONARY 975,075 $7,235,000 1.69% Q3 2016
JASN CONSUMER DISCRETIONARY 916,702 $1,650,000 0.38% Q1 2015
VNCE CONSUMER DISCRETIONARY 79,361 $321,000 0.07% Q3 2015

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CLARKSTON CAPITAL
Top Buys: Markel Corp. (MKL) // Western Union Co. (WU) // Fastenal Co. (FAST) // Actuant
Corp (ATU) // AmerisourceBergen (ABC)
Top Sells: Federated Investors (FII) // NOW INC (DNOW) // Deere & Co. (DE) // Procter &
Gamble (PG) // Pfizer Inc. (PFE)

Clarkston’s 13F portfolio increased from $2.078B to $2.103B this quarter. The number of
positions remained steady at 33. The top three 13F positions are Western Union, Willis Towers
Watson Pub and Brown & Brown, the positions represent 17.23% of the total portfolio value. The
fund sold out of 6 stocks (PAGP, UL, FII, DE, GM, K), reduced holdings in 44 stocks and had
39 new purchases in Q4. Top 10 holdings represent 45.27% of the fund’s total portfolio.
 Clarkston increased its stake in Anheuser Busch (BUD) by 82% based on its latest 2016Q4
regulatory filing with the SEC. Clarkston bought 39,309 shares. The hedge fund held
87,139 shares of the company at the end of 2016Q4, valued at $9.188 million. The
institutional sentiment is balanced with 83 funds creating new positions vs. 82 funds
reducing their position. The largest buyers are Franklin Resources and Soroban Capital.

 The stake in Verizon Communications (VZ) increased by 78%. This is a tiny position the
fund has been active in since Q2 2013.

 Amerisource Bergen (ABC) is a new stake in Clarkston’s portfolio. The hedge fund held
64,518 shares of the company in the most recent reporting quarter, valued at $5,045,000.

 Clarkston Capital Partners LLC initiated holdings in McKesson Corp. (MCK) The
purchase prices were between $124.11 and $165.82, with an estimated average price of
$147.1. The impact to the portfolio due to this purchase was 0.23%. The holdings were
35,050 shares as of 2016-12-31.

 The fund increased its stake in Markel Corp (MKL) by 42.50%. The purchase prices were
between $825.07 and $930.97, with an estimated average price of $891.63.The impact to
the portfolio due to this purchase was 0.54%. The holdings were 42,073 shares as of 2016-
12-31.

*Top 50 Holdings

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Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
WU INFORMATION TECHNOLOGY 6,540,752 $142,065,000 6.76% Q4 2012
WLTW FINANCE 942,816 $115,288,000 5.48% Q1 2016
BRO FINANCE 2,337,575 $104,864,000 4.99% Q2 2014
LPLA FINANCE 2,901,850 $102,174,000 4.86% Q3 2015
LM FINANCE 3,016,575 $90,226,000 4.29% Q4 2012
BR INDUSTRIALS 1,319,422 $87,478,000 4.16% Q4 2012
JW.A CONSUMER DISCRETIONARY 1,521,965 $82,947,000 3.94% Q2 2013
MATW INDUSTRIALS 1,074,228 $82,554,000 3.93% Q4 2012
HI CONSUMER DISCRETIONARY 2,073,966 $79,537,000 3.78% Q4 2012
CHRW TRANSPORTS 883,626 $64,734,000 3.08% Q4 2012
ATU INDUSTRIALS 2,223,200 $57,692,000 2.74% Q1 2015
LSTR TRANSPORTS 666,049 $56,814,000 2.70% Q4 2012
FAST INDUSTRIALS 977,480 $45,922,000 2.18% Q3 2015
SYY CONSUMER STAPLES 819,688 $45,386,000 2.16% Q4 2012
GE INDUSTRIALS 1,366,219 $43,173,000 2.05% Q4 2012
SRCL INDUSTRIALS 514,755 $39,657,000 1.89% Q3 2016
MSFT INFORMATION TECHNOLOGY 634,133 $39,405,000 1.87% Q4 2012
MKL FINANCE 42,073 $38,055,000 1.81% Q1 2013
PG CONSUMER STAPLES 435,282 $36,599,000 1.74% Q4 2012
DNOW ENERGY 1,752,420 $35,872,000 1.71% Q4 2014
JNJ HEALTH CARE 305,852 $35,237,000 1.68% Q4 2012
CTAS INDUSTRIALS 301,770 $34,873,000 1.66% Q4 2012
MKC CONSUMER STAPLES 359,576 $33,559,000 1.60% Q4 2012
POST CONSUMER STAPLES 416,683 $33,497,000 1.59% Q3 2014
PEP CONSUMER STAPLES 316,415 $33,107,000 1.57% Q4 2012
GGG INDUSTRIALS 379,502 $31,533,000 1.50% Q4 2012
WAT HEALTH CARE 232,523 $31,249,000 1.49% Q4 2012
INFO INFORMATION TECHNOLOGY 880,399 $31,175,000 1.48% Q3 2016
AXP FINANCE 402,138 $29,790,000 1.42% Q4 2012
CSCO INFORMATION TECHNOLOGY 890,850 $26,921,000 1.28% Q4 2012
COF FINANCE 302,213 $26,365,000 1.25% Q4 2012
EFX INDUSTRIALS 220,156 $26,029,000 1.24% Q4 2012
IBM INFORMATION TECHNOLOGY 144,500 $23,986,000 1.14% Q4 2012
DEO CONSUMER STAPLES 219,608 $22,826,000 1.09% Q4 2012
WMT CONSUMER STAPLES 329,952 $22,806,000 1.08% Q4 2012
USB FINANCE 422,182 $21,687,000 1.03% Q4 2012
EMR INDUSTRIALS 371,101 $20,689,000 0.98% Q4 2012
SCHW FINANCE 518,378 $20,460,000 0.97% Q4 2012
UPS TRANSPORTS 177,944 $20,400,000 0.97% Q4 2012

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MDLZ CONSUMER STAPLES 442,089 $19,598,000 0.93% Q4 2012
MAA REAL ESTATE 156,956 $15,369,000 0.73% Q1 2014
CABO CONSUMER DISCRETIONARY 19,427 $12,078,000 0.57% Q3 2015
ANTM HEALTH CARE 78,309 $11,258,000 0.54% Q4 2014
MA INFORMATION TECHNOLOGY 91,520 $9,449,000 0.45% Q4 2012
PAYX INFORMATION TECHNOLOGY 152,606 $9,291,000 0.44% Q4 2012
BUD CONSUMER STAPLES 87,139 $9,188,000 0.44% Q2 2013
DIS CONSUMER DISCRETIONARY 85,718 $8,934,000 0.42% Q4 2012
MDT HEALTH CARE 117,598 $8,377,000 0.40% Q4 2012
PFE HEALTH CARE 189,296 $6,148,000 0.29% Q4 2012
AAPL INFORMATION TECHNOLOGY 47,043 $5,449,000 0.26% Q4 2012

EDGEWOOD MANAGEMENT
Top Buys: Allergan PLC (AGN) // Cognizant Technologies (CTSH) // NVIDIA Corp. (NVDA)
// Netflix Inc. (NFLX) // Celgene Corp. (CELG)
Top Sells: Gilead Sciences Inc. (GILD) // ALPHABET INC CAP (GOOG) // ALPHABET INC.
(GOOGL) // S&P Global Inc. (SPGI) // American Tower Corp. (AMT)

Their last reported 13F filing for Q4 2016 included $15,195,683,000 in managed 13F securities
and a top 10 holdings concentration of 54.91%. Edgewood Management's largest holding is
Celgene Corp. with 9,588,534 shares held.

 Edgewood Management LLC cut its stake in shares of PepsiCo Inc. (PEP) by 3.4% during
the fourth quarter, according to its most recent filing with the Securities and Exchange
Commission (SEC). The firm owned 35,282 shares of the company’s stock after selling
1,251 shares during the period. Edgewood Management LLC’s holdings in PepsiCo were
worth $3,692,000 at the end of the most recent quarter. A number of other institutional
investors have also recently bought and sold shares of PEP. Kentucky Retirement Systems
bought a new position in shares of PepsiCo during the second quarter valued at
approximately $13,013,000. The institutional sentiment is bullish with 141 funds creating
new positions vs. 73 funds closing out their position.

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 The stake in Johnson & Johnson (JNJ) was increased by 0.1% during the fourth quarter.
The fund owned 35,401 shares of the company’s stock after buying an additional 43 shares
during the period. Edgewood Management LLC’s holdings in Johnson & Johnson were
worth $4,079,000 at the end of the most recent reporting period.

 Largest position increases include SPY by 320%, BLE by 50% and ILMN by 30%.

*Top 50 Holdings
Shares % of Qrt 1st
Stock Sector Held Market Value Portfolio Owned
CELG HEALTH CARE 9,588,534 $1,109,873,000 7.30% Q2 2002
AMZN CONSUMER DISCRETIONARY 1,356,538 $1,017,227,000 6.69% Q3 2010
V INFORMATION TECHNOLOGY 11,880,171 $926,891,000 6.10% Q4 2008
ILMN HEALTH CARE 6,639,776 $850,157,000 5.59% Q4 2009
PCLN CONSUMER DISCRETIONARY 549,642 $805,808,000 5.30% Q1 2015
CTSH INFORMATION TECHNOLOGY 14,149,600 $792,802,000 5.22% Q1 2006
FB INFORMATION TECHNOLOGY 6,565,273 $755,335,000 4.97% Q3 2014
SCHW FINANCE 18,241,584 $719,995,000 4.74% Q1 2012
PYPL INFORMATION TECHNOLOGY 17,905,421 $706,727,000 4.65% Q1 2016
CME FINANCE 5,716,596 $659,409,000 4.34% Q1 2005
SPGI CONSUMER DISCRETIONARY 5,998,337 $645,061,000 4.25% Q4 2015
GOOGL INFORMATION TECHNOLOGY 771,496 $611,372,000 4.02% Q2 2011
UTILITIES &
AMT TELECOMMUNICATIONS 5,774,312 $610,229,000 4.02% Q3 2005
EQIX INFORMATION TECHNOLOGY 1,687,825 $603,245,000 3.97% Q1 2013
ADS INFORMATION TECHNOLOGY 2,611,871 $596,813,000 3.93% Q1 2014
NKE CONSUMER DISCRETIONARY 11,431,983 $581,088,000 3.82% Q4 2014
INFO INFORMATION TECHNOLOGY 15,878,059 $562,242,000 3.70% Q3 2016
AGN HEALTH CARE 2,526,156 $530,518,000 3.49% Q4 2016
NVDA INFORMATION TECHNOLOGY 4,913,667 $524,485,000 3.45% Q3 2016
NFLX CONSUMER DISCRETIONARY 3,867,207 $478,760,000 3.15% Q3 2016
ISRG HEALTH CARE 662,452 $420,107,000 2.76% Q4 2010
ECL MATERIALS 3,280,417 $384,530,000 2.53% Q3 2011
MMM INDUSTRIALS 710,428 $126,861,000 0.83% Q1 2001
CL CONSUMER STAPLES 827,294 $54,138,000 0.36% Q1 2001
AAPL INFORMATION TECHNOLOGY 172,724 $20,005,000 0.13% Q1 2005
GILD HEALTH CARE 198,184 $14,192,000 0.09% Q4 2003
SPY FINANCE 45,269 $10,119,000 0.07% Q3 2015
GOOG INFORMATION TECHNOLOGY 7,977 $6,157,000 0.04% Q2 2014

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UTILITIES &
XLU TELECOMMUNICATIONS 123,135 $5,981,000 0.04% Q1 2006
XOM ENERGY 62,453 $5,637,000 0.04% Q1 2001
DVY FINANCE 62,466 $5,533,000 0.04% Q4 2008
ABBV HEALTH CARE 85,662 $5,364,000 0.04% Q1 2013
JNJ HEALTH CARE 35,401 $4,079,000 0.03% Q1 2001
MIE FINANCE 343,068 $3,736,000 0.02% Q3 2013
PEP CONSUMER STAPLES 35,282 $3,692,000 0.02% Q1 2001
ABT HEALTH CARE 87,131 $3,347,000 0.02% Q1 2001
SYY CONSUMER STAPLES 59,909 $3,317,000 0.02% Q3 2010
PFE HEALTH CARE 100,790 $3,274,000 0.02% Q1 2001
VRTX HEALTH CARE 38,428 $2,831,000 0.02% Q1 2012
BK FINANCE 58,238 $2,759,000 0.02% Q1 2001
MAR CONSUMER DISCRETIONARY 17,683 $1,462,000 0.01% Q4 2016
SBUX CONSUMER DISCRETIONARY 25,317 $1,406,000 0.01% Q4 2012
KO CONSUMER STAPLES 33,770 $1,400,000 0.01% Q1 2001
UTILITIES &
VZ TELECOMMUNICATIONS 19,435 $1,037,000 0.01% Q1 2001
CSCO INFORMATION TECHNOLOGY 30,950 $935,000 0.01% Q1 2001
REGN HEALTH CARE 2,500 $918,000 0.01% Q3 2013
BRK.B FINANCE 4,900 $799,000 0.01% Q1 2001
BRK.A FINANCE 3 $732,000 0.00% Q1 2001
CINF FINANCE 9,012 $683,000 0.00% Q4 2003
CVX ENERGY 5,539 $652,000 0.00% Q1 2001

LEUCADIA NATIONAL
Top Buys: Lonestar Resources (LONE) // NXP Semiconductors NV (NXPI) // Deutsche Bank
AG (DB) // Dell Technologies Inc. (DVMT) // Level 3 Communications (LVLT)
Top Sells: Procter & Gamble (PG) // VanEck Vectors Gold Miners ETF (GDX) // Coty Inc.
(COTY) // SPDR Gold Trust ETF (GLD) // SPDR S&P 500 ETF Index (SPY)

For a variety of reasons, the first quarter of 2016 was the worst operating quarter in their history
with Jefferies, occurring while they were still deep in their internal resizing and repositioning of
Jefferies that began in the latter part of 2015.
 In November 2016, Leucadia helped KCG Holdings (KCG) shrink its float through a
creative tax-free stock swap that increased Jefferies’ equity ownership of KCG to 24%

© 2017 MILTON FINANCIAL MARKET RESEARCH INSTITUTE, LLC ALL RIGTHS RESERVED MILTONFMR.COM 82
from 18% and increased KCG’s tangible book value per share to $18.71 at year-end from
$15.54 on September 30, 2016 (current stock price is $14.03). While the company has been
going through a rough spot operationally, Leucadia is confident that these conditions will
be short-lived.

 HRG Group (HRG), a public company of which Leucadia owns 23% (46.6 million
shares) and where Joe Steinberg serves as Chairman and Andrew Whittaker as a Director,
appreciated by 15% in 2016 to $15.56 per share. Leucadia and HRG have worked together
to liquidate other assets so that the vast majority of HRG’s value is now comprised of its
58% ownership of Spectrum Brands (SPB) and 80% of Fidelity & Guaranty Life (FGL).
The fund holds a whopping 78,21% of their total portfolio value in this stock alone. This
is a high conviction investment for the fund that has worked out pretty well so far. The
sentiment among other hedge fund managers is highly bullish with 36 funds creating new
positions vs. 13 funds closing out their position.

 Another of Leucadia’s investments worth mentioning is Linkem, an Italian fixed wireless
broadband service provider that had another strong year managing growth and delivering
high quality internet at affordable prices to an area now reaching 60% of Italian households.
Subscribers grew by 29% to over 400,000 in 2016, which Leucadia believes is just the
beginning. Linkem’s service is now available in 18 of the 20 largest municipalities in Italy,
including Rome, Naples, Turin, Palermo, Genoa, Bologna and Florence.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
HRG CONSUMER STAPLES 46,600,000 $725,096,000 78.21% Q1 2014
LONE ENERGY 3,978,488 $33,976,000 3.66% Q3 2016
SPY FINANCE 126,540 $28,458,000 3.07% Q1 2016
LVNTA CONSUMER DISCRETIONARY 621,832 $27,143,000 2.93% Q2 2016
WR UTILITIES & TELECOMMUNICATIONS 380,193 $20,793,000 2.24% Q2 2016
NXPI INFORMATION TECHNOLOGY 176,100 $17,231,000 1.86% Q4 2016
MON MATERIALS 131,040 $14,193,000 1.53% Q3 2016
DB FINANCE 517,000 $10,293,000 1.11% Q4 2016
DVMT INFORMATION TECHNOLOGY 157,657 $9,931,000 1.07% Q4 2016
LVLT UTILITIES & TELECOMMUNICATIONS 156,305 $9,294,000 1.00% Q4 2016
SYT MATERIALS 87,000 $7,398,000 0.80% Q2 2016
JNS FINANCE 476,173 $5,952,000 0.64% Q4 2016
LCAHW 7,000,000 $4,900,000 0.53% Q3 2016
TLT FINANCE 37,853 $4,509,000 0.49% Q1 2016

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SINA INFORMATION TECHNOLOGY 50138 3496000 0.0038 Q2 2016
ALR HEALTH CARE 40000 1480000 0.0016 Q2 2016
FOX CONSUMER DISCRETIONARY 41297 1256000 0.0014 Q4 2016
NYRT REAL ESTATE 75000 746000 0.0008 Q4 2016
CHTR CONSUMER DISCRETIONARY 937 304000 0.0003 Q4 2016
NWSA CONSUMER DISCRETIONARY 20385 251000 0.0003 Q4 2016
SABR CONSUMER DISCRETIONARY 9000 221000 0.0002 Q4 2016
HPQ INFORMATION TECHNOLOGY 11837 176000 0.0002 Q4 2016

VGI PARTNERS PTY LTD
Top Buys: Boston Beer Inc. (SAM) // Walt Disney Co. (DIS) // CME Group Inc. (CME) //
Nielsen Holdings (NLSN) // Zillow Group Inc. (Z)
Top Sells: Mead Johnson Nutrition (MJN) // 21st Century Fox (FOX) // MasterCard Inc. (MA) //
Ralph Lauren Corp. (RL)

VGI’s 13F portfolio increased from $383 million to $396 million this quarter. The number of
positions remained steady at 10. The top three 13F positions are CME Group, Mastercard and
Amazon, the positions represent 50.52% of the total portfolio value. The fund sold out of 2 stocks
(RL, FOX), reduced holdings in 2 stocks and had 2 new purchases in Q4. Top 10 holdings represent
45.27% of the fund’s total portfolio.

 VGI significantly boosted its stake in Nielsen Holdings (NLSN) by 80%. The company is
set to increase its dividend this year and continue with its share repurchase program. For
VGI this is a dividend play and long term investment. NLSN shows a significant level of
dividend growth.

 The Fund initiated a new position in Walt Disney (DIS) buying 182,071 shares. Other
notable buyers in the most recent reporting quarter are Norges Bank and Susquehanna
International. When compared to its peer group, Disney is currently trading at a premium
based on forward earnings estimates.

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Shares Qrt 1st
Stock Sector Held Market Value % of Portfolio Owned
CME FINANCE 728,878 $84,076,000 21.19% Q1 2013
MA INFORMATION TECHNOLOGY 626,393 $64,675,000 16.30% Q3 2014
AMZN CONSUMER DISCRETIONARY 68,962 $51,713,000 13.03% Q3 2014
Z INFORMATION TECHNOLOGY 1,015,404 $37,032,000 9.33% Q3 2015
NLSN INFORMATION TECHNOLOGY 862,504 $36,182,000 9.12% Q4 2015
PX MATERIALS 243,070 $28,485,000 7.18% Q3 2015
MJN CONSUMER STAPLES 399,424 $28,263,000 7.12% Q3 2015
WDFC CONSUMER STAPLES 205,226 $23,991,000 6.05% Q1 2013
SAM CONSUMER STAPLES 137,467 $23,349,000 5.89% Q4 2016
DIS CONSUMER DISCRETIONARY 182,071 $18,975,000 4.78% Q4 2016

POINT 72 ASSET MANAGEMENT
Top Buys: Tesoro Petroleum (TSO) // PowerShares QQQ (QQQ) put // Verizon
Communications (VZ) // Williams Cos. (WMB) // SPDR S&P 500 ETF Index (SPY) call
Top Sells: SPDR S&P 500 ETF Index (SPY) put // Facebook Inc. (FB) // ALPHABET INC
(GOOGL) // Amazon.com Inc. (AMZN) // Zoetis Inc. (ZTS)

Steven Cohen founded the family office Point72 Asset Management in 2014 after agreeing to
close his hugely successful hedge fund SAC Capital Advisors. Besides having an equity fund,
the investment management firm also has a quant fund

The family office had a 13F portfolio valued at $14.3 billion at the end of 2016, largely unchanged
from $14.22 billion a quarter earlier. During the year’s final quarter, Point72 Asset Management
added 285 stocks to its portfolio and sold out of 309 stocks. The filing also showed that its top-10
holdings constituted about 17.5% of the value of its 13F portfolio.

 During the fourth quarter, Point72 Asset Management added 3.28 million shares of Tesoro
Corporation (TSO) to its portfolio, reporting a 3.4 million-share stake worth $298.7
million as of December 31. Another investor bullish on Tesoro Corporation was Jim
Simons’ Renaissance Technologies, which initiated a stake of 976,500 shares during the
fourth quarter. The San Antonio-based oil refiner reported fourth quarter results which beat

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bottom-line estimates but missed on the top-line. The company earned $0.03 per share for
the quarter, well ahead of the consensus of a loss of $0.14, however revenue of $6.6 billion
missed the estimates of $7.1 billion. The institutional sentiment is bullish with 88 funds
creating new positions vs. 46 funds closing out their position.

 In Visa Inc. (V), Point72 increased its stake by 109% to 2.93 million shares worth $228.51
million at the end of December. On the contrary, Dan Loeb’s Third Point sold off its entire
holding of 2.1 million shares during the same period. The company should do well as the
global mobile payments market is expected to expand at a CAGR of 20.5% to reach a size
of $1.7 trillion by 2024.

 Point72 increased its stake in Williams Companies Inc (WMB) by 210% in the fourth
quarter, reporting a holding of 7.11 million shares worth $221.59 million as of the end of
December. Stephen Mandel’s Lone Pine Capital was the biggest buyer of the stock during
Q4, as the fund doubled its stake to 16.32 million shares. Williams Companies Inc. is an
energy infrastructure company that owns substantial gas pipeline assets in the U.S and
Canada. The company has given a whopping 81% return to shareholders over the last year.
The company should perform well due to the oil price recovery. Dividends are set to grow
at a 10-15% annual rate.

 Point72 Asset Management added a 2.84 million-share stake in telecom giant Verizon
Communications Inc. (VZ) to its portfolio in Q4, valued at $151.53 million as of
December 31. On the other hand, Warren Buffett’s Berkshire Hathaway sold off almost its
entire position.

Stock Sector Shares Held Market Value % of Portfolio Qrt 1st Owned
GD INDUSTRIALS 280,400 $48,414,000 0.34% Q3 2015
EOG ENERGY 593,644 $60,017,000 0.42% Q3 2016
WPX ENERGY 5,578,519 $81,279,000 0.57% Q2 2014
NVDA INFORMATION TECHNOLOGY 1,097,874 $117,187,000 0.82% Q2 2015
GT CONSUMER DISCRETIONARY 907,500 $28,015,000 0.20% Q3 2015
ULTA CONSUMER DISCRETIONARY 481,200 $122,677,000 0.86% Q2 2016
AR ENERGY 1,491,428 $35,272,000 0.25% Q1 2015
KMX CONSUMER DISCRETIONARY 938,100 $60,404,000 0.42% Q3 2016
ARRS INFORMATION TECHNOLOGY 419,100 $12,627,000 0.09% Q2 2016
MTD INFORMATION TECHNOLOGY 23,045 $9,646,000 0.07% Q3 2015
OA INDUSTRIALS 173,500 $15,221,000 0.11% Q1 2015
SBGI CONSUMER DISCRETIONARY 174,300 $5,813,000 0.04% Q3 2015
TSO ENERGY 3,416,147 $298,742,000 2.09% Q2 2015

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BHI ENERGY 696,000 $45,219,000 0.32% Q3 2015
BAH INFORMATION TECHNOLOGY 1,081,295 $39,002,000 0.27% Q3 2015
UTILITIES &
TMUS TELECOMMUNICATIONS 947,900 $54,514,000 0.38% Q2 2016
NVRO HEALTH CARE 220,200 $16,000,000 0.11% Q2 2015
IT INFORMATION TECHNOLOGY 214,500 $21,680,000 0.15% Q3 2016
DOV INDUSTRIALS 524,000 $39,263,000 0.27% Q3 2015
A INFORMATION TECHNOLOGY 370,300 $16,871,000 0.12% Q4 2015
WYN CONSUMER DISCRETIONARY 87,900 $6,713,000 0.05% Q3 2016
TSN CONSUMER STAPLES 532,916 $32,870,000 0.23% Q2 2014
LAD CONSUMER DISCRETIONARY 63,800 $6,178,000 0.04% Q1 2015
DOW MATERIALS 613,300 $35,093,000 0.25% Q1 2015
XPER INFORMATION TECHNOLOGY 271,100 $11,983,000 0.08% Q3 2016
MTG FINANCE 2,451,900 $24,985,000 0.17% Q2 2016
GMS CONSUMER DISCRETIONARY 253,446 $7,421,000 0.05% Q2 2016
CNQ ENERGY 3,250,800 $103,618,000 0.72% Q2 2014
LC FINANCE 1,277,000 $6,704,000 0.05% Q3 2016
MON MATERIALS 274,200 $28,849,000 0.20% Q1 2015
LNCE CONSUMER STAPLES 244,800 $9,386,000 0.07% Q1 2016
RRC ENERGY 1,916,800 $65,861,000 0.46% Q2 2014
AKAM INFORMATION TECHNOLOGY 52,800 $3,521,000 0.02% Q3 2015
AVY INDUSTRIALS 125,000 $8,778,000 0.06% Q3 2016
ATHN HEALTH CARE 1,025,000 $107,799,000 0.75% Q1 2016
LBTYA CONSUMER DISCRETIONARY 433,800 $13,270,000 0.09% Q3 2016
EEM(PUT) FINANCE 950,000 $33,260,000 0.23% Q3 2015
OMAM FINANCE 1,839,870 $26,678,000 0.19% Q4 2014
CLR ENERGY 451,409 $23,266,000 0.16% Q2 2015
CTAS INDUSTRIALS 254,600 $29,422,000 0.21% Q3 2016
SM ENERGY 1,281,340 $44,181,000 0.31% Q2 2016
NTRA HEALTH CARE 501,200 $5,869,000 0.04% Q2 2016
GLD(CALL) MATERIALS 335,000 $36,719,000 0.26% Q2 2016
INCY HEALTH CARE 438,801 $43,999,000 0.31% Q3 2016
X MATERIALS 1,286,993 $42,484,000 0.30% Q3 2016
DATA INFORMATION TECHNOLOGY 316,100 $13,324,000 0.09% Q3 2016
FBP FINANCE 1,215,800 $8,036,000 0.06% Q1 2015
MSG CONSUMER DISCRETIONARY 42,126 $7,225,000 0.05% Q3 2015
CMG CONSUMER DISCRETIONARY 97,900 $36,940,000 0.26% Q3 2015
CME FINANCE 291,932 $33,674,000 0.24% Q2 2014

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HEDGE FUNDS INTERNATIONAL SHORT POSITIONS

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