element global value - year end letter 2014

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Element Global Value The Element Global Value Portfolio has the mandate to “go anywhere” in pursuit of attractive investment opportunities, using a bottom-up investment approach. Being equity focused, the portfolio has at least 70% of its assets invested in international equity markets. The portfolio uses the MSCI World (Local) as benchmark but it does not seek to mimic or track this index in any way. 4 th Quarter 2014 Year End Letter Net Asset Value (NAV) : 146.10 Launch date: 14-January-2011 Portfolio Manager: Filipe Alves da Silva, CFA, CAIA Portfolio Details Investment Highlights With few exceptions, 2014 was another relatively calm year for markets. After a small hiccup in January, US equity markets marched-on to new highs, only briefly interrupted by a sell-off during October. The S&P500 ended the year at 2058 points, a gain of almost 14%, whilst in Europe markets zigzagged for most of the year, ending with a 5% gain. Finally, emerging markets had another lacklustre year, dropping by 4%. Geopolitical events were plentiful: instability in Ukraine, the ISIS movement in Iraq and Syria, and the resurgence of the Greek crisis. Albeit important, the impact on major equity markets was subdued. During the year, I was surprised by 3 things: the abrupt slide in the price of oil from $98 to $53, the continued strength of the Dollar (the /$ cross started 2014 at 1.38, ended at 1.21 and is currently close to parity!), and bonds reaching very low or even negative yields in Europe. The magnitude of these movements is just breath taking. All these factors will go a long way in helping Europe to get back on its feet: the low oil price acts as a subsidy to consumers and industry; the depreciation of the Euro makes European producers more competitive (Europe’s goods are now cheaper for outside buyers); and finally, the minuscule . Monthly Performance 80 100 120 140 160 Jan/11 Jan/12 Dec/12 Dec/13 Dec/14 MSCI World Local Portfolio Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2011 -1.11% 1.61% -2.05% 3.30% -1.25% -1.72% -1.37% -7.23% -7.20% 8.70% -2.83% -1.18% -12.57% 2012 7.06% 5.19% 1.62% -0.86% -6.98% 2.62% 0.62% 2.67% 1.35% -1.50% 0.97% 0.87% 13.73% 2013 2.90% 0.47% 1.33% 1.51% 1.68% -3.88% 4.46% -0.90% 3.84% 4.64% 2.19% 1.41% 21.15% 2014 -2.14% 3.77% 2.49% 0.18% 3.01% 1.97% 0.11% 5.36% -0.72% 0.88% 5.22% -0.38% 21.27% Performance Chart

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Year End 2014 Letter for Element

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Page 1: Element Global Value - Year End Letter 2014

Element Global Value

The Element Global Value Portfolio has the mandate to “go anywhere” in pursuit of attractive investment opportunities, using a bottom-up investment approach. Being equity focused, the portfolio has at least 70% of its assets invested in international equity markets. The portfolio uses the MSCI World (Local) as benchmark but it does not seek to mimic or track this index in any way.

4th Quarter 2014 – Year End Letter

Net Asset Value (NAV) : 146.10

Launch date: 14-January-2011

Portfolio Manager: Filipe Alves da Silva, CFA, CAIA

Portfolio Details

Investment Highlights

With few exceptions, 2014 was another relatively calm year for markets. After a small hiccup in January, US equity markets marched-on to new highs, only briefly interrupted by a sell-off during October. The S&P500 ended the year at 2’058 points, a gain of almost 14%, whilst in Europe markets zigzagged for most of the year, ending with a 5% gain. Finally, emerging markets had another lacklustre year, dropping by 4%.

Geopolitical events were plentiful: instability in Ukraine, the ISIS movement in Iraq and Syria, and the resurgence of the Greek crisis. Albeit important, the impact on major equity markets was subdued.

During the year, I was surprised by 3 things: the abrupt slide in the price of oil from $98 to $53, the continued strength of the Dollar (the €/$ cross started 2014 at 1.38, ended at 1.21 and is currently close to parity!), and bonds reaching very low or even negative yields in Europe. The magnitude of these movements is just breath taking.

All these factors will go a long way in helping Europe to get back on its feet: the low oil price acts as a subsidy to consumers and industry; the depreciation of the Euro makes European producers more competitive (Europe’s goods are now cheaper for outside buyers); and finally, the minuscule .

Monthly Performance

80

100

120

140

160

Jan/11 Jan/12 Dec/12 Dec/13 Dec/14

MSCI World Local

Portfolio

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD

2011 -1.11% 1.61% -2.05% 3.30% -1.25% -1.72% -1.37% -7.23% -7.20% 8.70% -2.83% -1.18% -12.57%

2012 7.06% 5.19% 1.62% -0.86% -6.98% 2.62% 0.62% 2.67% 1.35% -1.50% 0.97% 0.87% 13.73%

2013 2.90% 0.47% 1.33% 1.51% 1.68% -3.88% 4.46% -0.90% 3.84% 4.64% 2.19% 1.41% 21.15%

2014 -2.14% 3.77% 2.49% 0.18% 3.01% 1.97% 0.11% 5.36% -0.72% 0.88% 5.22% -0.38% 21.27%

Performance Chart

Page 2: Element Global Value - Year End Letter 2014

Element Global Value

yield on government bonds means European countries are spending less money on interest payments. It will be interesting to watch how this situation pans out.

I wrote in last year’s letter that I saw “bonds in general (…) as very unattractive and with a very high probability of generating negative real returns over the next business cycle”. I was stunned with the performance of this asset class in 2014, especially in Europe. European government bonds had returns in excess of 13%, while investment grade corporates gained more than 8%.

European bonds are in a bubble: investors are now paying for the privilege of lending (negative yields) money to Sweden, Germany, Netherlands and France for maturities up to 4 years. Hell, the Swiss 10-year bond has a yield of -0.08%! To add fuel to the fire, a new force has entered the market: the European Central Bank is now scooping €60bn/month of bonds in an effort to get inflation and growth back on track.

On the corporate side, a basket of investment grade bonds with average maturity of 5 years yields a disapointing 0.8%. As shown below, more than 70% of European companies now have a higher dividend yield than their respective bond yield.

If you have a long enough time horizon, do yourself a favour, shy away from bonds!

During 2014, I added only one new position to the portfolio (JG Wentworth), sold 3 (Addvantage Technologies, Cninsure and Telefónica) and 1 was acquired (Patient Safety Technologies). I like to buy on pullbacks, and there were very few opportunities this year. If there are no corrections, even if I really like a company, I will usually postpone the purchase until a correction occurs. Ideally, I .

Page 3: Element Global Value - Year End Letter 2014

Element Global Value

like to make a purchase after a stock has underperformed strongly, suffered a correction and/or when my view differs from the consensus, mostly due to different investing horizons. I strive to focus on the long run, while most market participants focus on the latest quarterly numbers or other short-term indicators, thus creating a time-arbitrage opportunity.

I hope that 2015 will be more volatile and create more opportunities for me to add new names to the roaster.

The rest of the letter covers a performance review, followed by a summary of the top performance contributors and detractors and review the investment philosophy.

Performance review

I am very pleased with how the portfolio performed during 2014, having its best year yet, both on an absolute and relative basis: Element recorded a gain of +21.3%, outpacing the World equity composite (MSCI World) by 13.6%.

The results from 2013 (+21.2%) and 2014 (21.3%) should not be extrapolated. Although I would like very much enjoy 20%+ returns every year, the last two years were abnormally good, and one should expect future results to be more moderated.

The positions that contributed most were (ranked) Apple, PAX Global Technologies, Microsoft, TEVA and the Fidelity China Special Situations fund.

Also notable was the contribution of the appreciation of the dollar vs the Euro: although it is my objective to hedge foreign currency, during the year there was an average weight of 25% on non-Euro currencies (which appreciated against the Euro). The contribution to overall performance was roughly 3%.

Main performance detractors were AvangardCo, IBM, MRV Engenharia, OPAP and (again) the mining related stocks.

Element MSCI World Difference

2014 Fourth Quarter Performance 5.7% 0.3% 5.4%

2014 Full Year Performance 21.3% 7.7% 13.6%

Accumulated Return Since Inception* 46.1% 38.5% 7.6%

Annualized Return Since Inception* 10.0% 8.6% 1.5%

* Since 14/Jan/2011

Page 4: Element Global Value - Year End Letter 2014

Element Global Value

Top 5 contributors

Apple (performance since first added to the portfolio Jun/2011: +159%; 2014 performance: +41%)

What a difference in sentiment from a year ago! In late 2012, and during 2013, the investing community was giving Apple a very hard time. It seemed like nothing the company would do was right: the phones were not big enough, the company had become too big and could not keep growing, there was no innovation in the post-Jobs era, etc.

With this background, I decided meaningfully increasing the position in Apple (between the end of 2012 and beginning of 2014).

Fast-forward to 2014 and investors are in love with the company once again. The new iPhone 6 is a hit, there is huge hype behind the launch of the iWatch and the company seems like it can do no wrong. The shares more than doubled since the 2013 lows, having appreciated by more than 40% during 2014 alone, and now represent the largest position in the portfolio with a weight slightly above 10%.

I remain confident there is still much more to come from Apple and that its shares will continue to move higher.

PAX Global Technologies (Aug/2012: +525%; 2014: +156%)

PAX is the World’s third largest maker of electronic payment terminals (the machines that read your debit/credit cards). When I first picked-up shares (Aug-2012), the company was incredibly cheap, trading for only 3 times earnings (once adjusted for surplus cash on the balance sheet). Since then, sales and profits have doubled and the company’s market cap has surpassed $1bn.

The investment in PAX has worked-out wonderfully, and yielded a return in excess of 500%. Despite this amazing run, PAX still has a very long road ahead. To gauge just how big the opportunity is: in China there are only 3 POS / 1’000 inhabitants. This compares to 20/30 for western countries. Half of PAX’s sales are in China. Room for growth is immense.

Microsoft (Jan/2011: +87%; 2014: +31%)

After surging 44% in 2013, shares were up 31% in 2014.

Satya Nadela replaced outgoing CEO Steve Balmer at the helm of Microsoft in early 2014. Satya is a breath of fresh air: he is changing Microsoft into a company with a broader and more holistic view. During his first months he forged partnerships with companies such as Salesforce, Oracle and Apple, something that was unimaginable under Balmer.

In December I trimmed the position, but the shares remain attractive.

Page 5: Element Global Value - Year End Letter 2014

Element Global Value

TEVA (Aug/2011: +73%; 2014: +46%)

TEVA has become the drug industry’s comeback story! The company’s shares laid dormant for years but in 2014 they finally surged meaningfully, recording a 46% return, on the back of a new CEO, substantially improving margins by reducing costs and reducing debt by almost $2bn.

Despite being a strong performer in 2014, TEVA remains undervalued trading at only 11x 2015 expected earnings, a meaningful discount to both its peers and the market as a whole.

Fidelity China Special Situations (Jun/2011: +47%; 2014: +26%)

China’s economy grew by 7.4% in 2014. Despite this impressive rate, the pace of growth is slowing, a natural progression as the economy rebalances away from investment & net exports and towards consumption. At the end of the day, there are encouraging economic reforms, with pro-growth measures to boost the consumption share of GDP. Even if China grows at a 5 to 6% rate, this is a very healthy environment for individual companies.

Despite this backdrop, and the fact that the mid/long-term story in terms of the growth potential is unchanged, valuations are nearing historic lows – the MSCI China trades at only 9.5x earnings.

The long-term potential is colossal, reason why this fund is one of the top positions in the portfolio, as it focuses on the sectors I expect to benefit from an increase in the consumption component of GDP: consumption, IT and pharmaceutical.

Anthony Bolton handed the reins to Dale Nicholls in April, and the fund has performed very well: since Dale took over the fund is up by 25.5% (excluding currency effects), which compares to +14.4% for the MSCI China index.

For the full year, the fund posted a 19.8% performance vs 8% for the MSCI China.

Top 5 detractors

AvangardCo (Mar/2012: -81%; 2014: -81%)

AvangardCo is the World’s second largest and Europe’s No 1 producer of eggs, and is based in Ukraine. Up to 2013, the company had been steadily increasing production volume as well as its share of the domestic market (from 23% in 2007, to 56% in 2013): revenues increased from $128mn in 2007 to $661mn in 2013, while EBITDA grew at a 40% CAGR. Besides this, a major CAPEX program was completed in 2013 – increasing the production capacity from 5.2bn to 8.6bn eggs/yr and a dividend was initiated (at the time representing a 10% yield).

As you might expect, the share price plunged due to the annexation of the Crimean Peninsula by Russia, subsequent political instability and significant devaluation of the domestic currency.

Page 6: Element Global Value - Year End Letter 2014

Element Global Value

Even taking into consideration this situation, the production facilities located in the Crimean peninsula only represented 5% of revenue and shares were incredibly cheap, so I doubled the position in March. Until the end of the year the situation worsened and the shares receded by 75%. Not the best timing!

IBM (Jan/2011: +15%; 2014: -12%)

IBM inhabits in the intersection of business and technology, processing an astonishing 75% of the World’s business data. It has been one of the largest positions in the portfolio since the beginning. Since 2011, IBM has returned an impressive $70bn to its shareholders via dividends and buybacks, representing roughly 35% of its average market capitalization during the period. The share repurchases alone have reduced share-count by 25%, effectively increasing the ownership of shareholders by 1/3.

Warren Buffett explains the value of share repurchases best in his 1980 Letter to Berkshire Hathaway’s Shareholders:

During this period, IBM increased operating EPS by 43% and improved its margins substantially by cutting costs and selling low-margin businesses. Despite this, investors have lost their patience, as revenue growth stalled, results disappointed and the company abandoned the 2015 road map, which called for adjusted profit of $20 per share by 2015.

The industry is facing unprecedented changes, with technology costumers moving from owning hardware to storing data in the cloud. I remain confident that IBM will adapt and that, the current price is actually a benefit on the long run, since the company will be able to buy more shares. Again, Mr. Buffett explains it best:

One usage of retained earnings we often greet with special enthusiasm when practiced by companies in which we have an investment interest is repurchase of their own shares. The reasoning is simple: if a fine business is selling in the market place for far less than intrinsic value, what more certain or more profitable utilization of capital can there be than significant enlargement of the interests of all owners at that bargain price? The competitive nature of corporate acquisition activity almost guarantees the payment of a full -frequently more than full price when a company buys the entire ownership of another enterprise. But the auction nature of security markets often allows finely-run companies the opportunity to purchase portions of their own businesses at a price under 50% of that needed to acquire the same earning power through the negotiated acquisition of another enterprise.

If you are going to be a net buyer of stocks in the future, either directly with your own money or indirectly (through your ownership of a company that is repurchasing shares), you are hurt when stocks rise. You benefit when stocks swoon. Emotions, however, too often complicate the matter: Most people, including those who will be net buyers in the future, take comfort in seeing stock prices advance. These shareholders resemble a commuter who rejoices after the price of gas increases, simply because his tank contains a day’s supply.

Page 7: Element Global Value - Year End Letter 2014

Element Global Value

At year-end, IBM’s shares traded for only 10 times its 2015 expected earnings.

MRV Engenharia(Jan/2011: -68%; 2014: -12%)

MRV is the third largest homebuilder and real estate company in Brazil – building around 40k units per year – and is probably the best way to gain exposure to the low-income segment in the country. It operates mostly under Minha Casa Minha Vida, the largest housing program ever created in Brazil, that gives lower income families special conditions when buying a house. This provides MRV with a less competitive environment to operate in.

The Petrobras corruption scandal placed the Brazilian market under pressure, and MRV’s put management on a cautious stance regarding 2015, having already taken steps to reduce operational risk, such as reducing leverage, reducing the working capital cycle and improving inventory management.

The shares traded in the Brazilian market lost -5.5% in 2014, but the ADR (traded in the US) dropped by more than 17% due to the devaluation of the Brazilian Real.

The shares are incredibly cheap, trading at only 6 times 2015 earnings and at a free cash flow yield of almost 15%. Management is aware and set in place a share repurchase program, having reduced the share-count by 7.5% so far.

OPAP (Jul/2011: +10%; 2014: -6%)

OPAP has the monopoly to operate and manage numerical lottery and sports betting games in Greece, and is Europe’s biggest betting firm.

Greek markets dropped by more than 30% last year as it became clear that the left wing party Syriza would win the elections. After almost doubling in 2013, shares dropped by 6% in 2014. Despite this, OPAP actually had a good year, with revenues increasing by 13%, EBITDA by 30%, won the bid to buy Hellenic Lotteries (scratch cards) and cemented its position as the exclusive organizer of gambling in Greece.

With time, these improvements in operational performance will translate into a higher share price.

Mining & Mining Related Companies: Monument Mining (May/2011: -76%; 2014: -48%), Veris Gold (Sep/2012: -100%; 2014: -100%) & Energold Drilling (Aug/2011: -81%; 2014: -51%)

The mining industry continues to be a place where dreams go to die. After losing half their value in 2013, mining stocks overall lost more than 10% last year, with juniors losing double that. The mining stocks in the portfolio perfumed worse: they lost half their value in 2013, and another half in 2014. Veris Gold officially filed for bankruptcy in June.

At the beginning of the year, the allocation in these companies was: 0.5% in Monument, 0.4% Energold and 0.15% Veris, which limited the damage.

Page 8: Element Global Value - Year End Letter 2014

Element Global Value

Looking back, buying Monument and Veris was a mistake on my part. I say this not because of the horrible performance of the two investments, which had an overall negative impact on the portfolio of almost 2%, but because of my attitude towards gold: most investors regard gold as a store of value, a safe-haven and see it as an integral part of a diversified portfolio. To me gold is simply a shiny metal, and one that is in tremendous oversupply relative to its industrial use. Worse, it does not produce anything: if you own an ounce of gold, 100 years from now you will still own one ounce.

Making a similar comparison to one done by Buffett in his 2011 letter: all the gold in the World would be enough to fill 3½ Olympic swimming pools, which at the current price $1’170 / ounce, would be valued at around $6.4 trillion. With this money, you could buy the equivalent of 10 Wal-Marts plus 15 Coca-Cola’s, and still be left with $1 trillion of walking around money – you know, just in case. Over the next 10 or 20 years, which of the two do you think will produce more value?

With this in mind, buying the gold miners makes even less sense! This being said, I will not sell them, as their size relative to the rest of the portfolio is negligible and so as to serve as a reminder not to do similar mistakes.

You can surely count on me to do more mistakes. Just hopefully not as basic as this one!

Investment Philosophy In managing Element, I endeavour to achieve above average capital appreciation over the long term while attempting to avoid large permanent impairments of capital.

I invest in a purely bottom-up way. This means that I do not try to invest in themes, sectors or countries, focusing only on companies and performing fundamental analysis (to try) to ascertain what is their intrinsic value. In doing so, I study annual and quarterly reports, listen to conference calls and read analysis from other (independent) investors. In some situations I will also read research reports written by the sell-side. Besides estimating the intrinsic value of a business, I also spend considerable time thinking about the moats around the business and how durable these moats are, what could go wrong and what impact this might have on the valuation of the business.

After all this, the decision to invest depends solely on the opportunity presented and the price at which it is possible to acquire shares. Even the most wonderful business can make for a lousy investment if you pay too dear a price.

There is no investment idea that is so good that it can’t be spoiled by too high an entry price.

-Howard Marks, Chairman of Oaktree Capital Management

Generally, position sizing increases with the quality of the business, the discount to estimated intrinsic value, the moats around the business and quality of those moats.

Page 9: Element Global Value - Year End Letter 2014

Element Global Value

Investors have a tendency to believe there is a prize for hyperactivity, that just because you see something you must act on it, and that you should be rewarded for taking such action. But the only one who benefits from excess activity are brokers – as they reap the commissions investors so willingly pay them. Patience is a virtue and sitting on your hands, most often, is the right thing to do!

Although it's easy to forget sometimes, a share is not a lottery ticket ... it's part-ownership of a business: time-frame should be measured not in quarters or years, but in decades. Accordingly, Element’s holding-period is high and turnover is low: so far, the average holding period of investments is 3 years (and counting!), which compares to 4 years of life for Element. You can say I am a very patient investor.

It is also important to define risk. Most investors define risk as volatility: the daily, weekly or monthly variation of the portfolio’s value. I take a very different view, defining risk as permanent loss of capital. This means that I do not look to risk as how much a price of a security oscillates, but rather what is the probability I will permanently lose my capital by investing in a particular security.

I welcome volatility as it creates opportunities to acquire securities at attractive prices!

Review of Portfolio Investment Rules (copy from 2012 & 2013 letter) In order to force myself to be disciplined, I imposed a set of rules on the management of the portfolio. These rules are intended to define what I can and cannot do, set limits towards what type of instruments are available and define where I can invest:

• Long stocks, with a maximum gross exposure of 130% of assets • Maximum individual position is set at 10%

• Short stocks, with a maximum gross exposure of 30% • Maximum individual position is set at 2.5%

• Net long exposure must be within the 70%-130% range

• Warrants & Options, with a maximum exposure (notional) of 20%

• Currency exposure is hedged to Euros on a best effort basis

• No geographic/sector restrictions

• No restrictions on investable asset classes (as long as it is traded in a stock-exchange)

I am very conservative in managing Element, as it represents most of my networth. I avoid using leverage and do not engage in short-term ‘trading’. Also, I do not actively seek to use warrants & .

Page 10: Element Global Value - Year End Letter 2014

Element Global Value

options or short stocks, only wanting to have the possibility of using these instruments if presented with the right opportunity.

Final Remarks Last year I concluded the year-end letter saying that equities were the best place to park your (if the time-horizon is long enough) and that bonds were very unattractive. One year after the first part stands and the second one gains emphasis! Overall, the bond market is in a bubble, and will likely produce negative real returns over the next business cycle.

2014, just like 2013 was a very calm year for the markets, which was one of the main reasons why there was only one new name in the portfolio. Hopefully, 2015 will have more ups and downs so I can keep filling the portfolio with quality businesses at attractive prices.

Never regret. If it’s good, it’s wonderful. If it’s bad, it’s experience.

-Victoria Holt

.

Page 11: Element Global Value - Year End Letter 2014

12.0%

32.3%

0.3%

0.8%

27.5%

8.9%

4.9%

3.8%

2.6%

0.0%

8.2%

0% 5% 10% 15% 20% 25% 30% 35%

Financials

Information Technology

Industrials

Energy

Consumer Discretionary

Consumer Staples

Health Care

Materials

Telecommunication Services

Utilities

Other

Cash

69.6%

1.8%

3.7%

3.9%

2.3%

4.1%

0.5%

0.6%

0.8%

0.6%

0.0%

0.0%

0.0%

13.7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

United States

Canada

France

Germany

Spain

Israel

Ukraine

Brazil

United Kingdom

Kazakhstan

Japan

Australia

Switzerland

Others

Cash

Allocation by Country Allocation by Sector

Currency Exposure

Element Global Value

For more information please contact Filipe Alves da Silva directly or send anemail to [email protected]

Contacts

68.0%

13.9%8.9%

0.6% 2.8% 0.8% 0.5%3.9%

0%

20%

40%

60%

80%

100%

EUR USD CNY BRL CAD GBP UAH HKD

Max. Net Long Exposure: 130%

Min. Net Long Exposure: 70%

Position Sizing (Long): Max Position 10% (at purchase)

Use of Derivatives: May use options or warrants (Max notional exposure of 30%)

Ability to Short: Max individual position 2.5% Max gross short exposure 30% Currency Hedging: Hedged on a best effort basis

Investment Guidelines

This report is based on my portfolio. Reference to specific securities should not be construed as a recommendation to buy or sell these securities. You should always conduct the due diligence yourself.

Disclaimer

E L E M E N T

Largest Positions

Weight

Apple Inc 10.4%

Fidel i ty China Specia l Si tuations 8.9%

IBM 6.2%

Microsoft Corporation 6.1%

AMERCO 5.2%

Berkshire Hathaway 4.9%

Alternative Asset Opportunities 4.8%

Teva Pharmaceutica ls 4.1%

BMW 3.9%

Archer Daniels Midlands 3.9%

58.5%

Name

Total TOP 10 Positions

Page 12: Element Global Value - Year End Letter 2014

Complete List of Holdings

Element Global Value

Note: Reference to specific securities should not be construed as a recommendation to buy or sell these securities. You should always conduct the due diligence yourself.

Weight

10.4%

Fidelity China Special Situations 8.9%

6.2%

Microsoft Corporation 6.1%

5.2%

Berkshire Hathaway 4.9%

4.8%

Teva Pharmaceuticals 4.1%

3.9%

Archer Daniels Midlands 3.9%

3.9%

General Motors 3.8%

3.8%

PAX Global Technology 3.8%

3.4%

The Gap 3.1%

3.0%

Corning Inc 2.7%

2.3%

Renault 1.9%

1.8%

The Gap $42 CALL Jan/2015 1.5%

1.3%

IMAX Corporation 1.2%

1.1%

J.G. Wentworth 0.9%

0.8%

Ted Baker 0.8%

0.6%

KazMunaiGas E&P 0.6%

0.5%

Calfrac Well Services 0.3%

0.2%

Energold Drilling 0.2%

Veris Gold Corp 0.0%

Cash -1.6%

Total 100.0%

MRV Engenharia

Avangard

Monument Mining

Amadeus IT Holdings

Societe d'Edition de Canal+

Lowe's

OPAP

The Gap $45 CALL Jan/2015

BMW

BlackRock

PepsiCo

Chatham Lodging Trust

CF Industries

Name

Apple Inc

IBM

AMERCO

Alternative Asset Opportunities