PSH-Annual-Report

Annual Report December 31, 2014Notes to Financial Statements (continued)13. FINANCIAL RISK AND MANAGEMENTOBJECTIVES AND POLICIES (continued)The Investment Manager measures the liquidity ofportfolio positions by calculating the number ofdays required to liquidate a position based on 20%of the trailing 90-day average volume.Prior to December 2014, in calculating a position’sliquidity, the Investment Manager also took intoconsideration “trading windows” with respect toissuers for which partners of the InvestmentManager held board seats and any othercontractual prohibitions on trading securities ofissuers, but did not account for the possible earlierliquidation of certain positions, for example,pursuant to a block trade or via a 10b5-1 plan.As of December 2014, the Investment Managermeasures the liquidity of portfolio positions only bycalculating the number of days required to liquidatea position based on 20% of the trailing 90-dayaverage volume, and does not account for any“trading windows” or any other contractual orregulatory prohibitions on trading. In the belowtables we have updated the liquidity profile of theCompany’s financial assets and liabilities as ofDecember 31, 2013 using the new methodologyand have also presented the changes to what waspreviously reported as a result of applying this newmethodology.The following table is updated for December 31, 2013 using our new methodology:As of December 31, 2013 Less than 1 Month 1 to 3 Months 3 to 6 Months 6 to 12 Months Over 1 Year TotalAssetsCash and cash equivalents $ 389,656,631 $ - $ - $ - $ - $ 389,656,631Due from brokers 307,795,506 - - - - 307,795,506Trade and other receivables 3,371,546 - - - - 3,371,546Financial assets at fair valuethrough profit or lossInvestments in securities 461,358,489 496,729,710 612,039,474 221,579,702 119,423,556 1,911,130,931Derivative financial instruments 247,733,169 23,678,811 8,543,797 17,087,595 48,316,388 345,359,760Total assets $ 1,409,915,341 $ 520,408,521 $ 620,583,271 $ 238,667,297 $ 167,739,944 $ 2,957,314,374LiabilitiesDue to brokers $ 81,153,405 $ - $ - $ - $ - $ 81,153,405Trade and other payables 139,209,903 - - - - 139,209,903Financial liabilities at fair valuethrough profit or lossSecurities sold, not yetpurchased 173,719,584 98,140,035 - - - 271,859,619Derivative financial instruments 91,417,855 326,577 - - - 91,744,432Total liabilities excluding netassets attributable to nonequityshareholders 485,500,747 98,466,612 - - - 583,967,359Net assets attributable to nonequityand managementshareholders - 320,033,629 320,102,108 640,204,217 1,093,007,061 2,373,347,015Total liabilities $ 485,500,747 $ 418,500,241 $ 320,102,108 $ 640,204,217 $1,093,007,061 $ 2,957,314,37464 PERSHING SQUARE HOLDINGS, LTD.