Business Context and Reporting Period
This Form 13F-HR filing is submitted by Piper Jaffray Companies (also referenced as Piper Sandler Companies in metadata) for the quarter ended June 30, 2007. The report was signed by Greg Meyer, Controller, on August 7, 2007. It details the institutional investment manager's holdings in equity securities and convertible debt instruments.
Key Financial Metrics
As this is a holdings report rather than a financial performance statement, the following metrics reflect the portfolio composition as of the reporting date:
- Total Portfolio Value: $50,060,000 (reported in thousands).
- Total Number of Holdings: 95 entries.
- Investment Discretion: All reported holdings are classified as "Sole" discretion.
- Asset Classes: The portfolio consists of Common Stock (SH) and Principal Amounts of Notes/Bonds (PRN).
- Derivatives: The filing includes positions in Call options (e.g., Cisco Systems) and Put options (e.g., Level 3 Communications, PDL BioPharma).
Material Changes and Portfolio Composition
The filing does not provide comparative data against the prior quarter (March 31, 2007) to calculate material changes in holdings. However, the current portfolio composition reveals the following:
- Top Equity Holdings by Value:
- Zymergenetics Inc: $1,796,000
- CAI International Inc: $4,528,000
- LifePoint Hospitals Inc: $1,907,000
- Activision Inc: $3,000 (Note: Value appears low relative to share count, likely due to reporting unit or price fluctuation).
- Top Debt Holdings by Principal Amount:
- Alexion Pharmaceuticals Inc (Note 1.375%): $2,990,000
- Symantec Corp (Note 0.750%): $3,397,000
- Maxtor Corp (Note 2.375%): $2,500,000
- Mylan Labs Inc (Note 1.250%): $2,500,000
- On Semiconductor Corp (Note): $2,500,000
- Trizetto Group Inc (Note 2.750%): $2,500,000
- Industry Exposure: Significant exposure to Technology (e.g., Cisco, Symantec, Borland), Healthcare/Biotech (e.g., Alexion, Medarex, PDL BioPharma), and Retail (e.g., Best Buy, Blockbuster, Guitar Center).
Guidance, Outlook, and Risks
Guidance and Outlook: Form 13F filings are historical snapshots of holdings and do not contain management commentary, forward-looking guidance, or strategic outlooks.
Risks and Contingencies: The filing does not disclose specific risk factors or contingencies. However, the presence of Put options on Level 3 Communications and PDL BioPharma indicates hedging activity or bearish sentiment on those specific positions. The portfolio includes several convertible debentures (e.g., Carnival Corp, Wilson Greatbatch), which carry interest rate and credit risks.
Important Facts for Investor Verification
- Portfolio Size: Verify the total reported value of $50.06 million against the firm's total assets under management to determine if this represents the entire portfolio or a specific segment.
- Debt vs. Equity: Note the significant allocation to private or public debt instruments (Notes) with principal amounts totaling over $20 million, which may not be fully reflected in standard equity market data.
- Derivative Positions: Confirm the specific terms and expiration dates of the Call and Put options listed, as these affect the net exposure to the underlying stocks.
- Reporting Lag: Acknowledge that this data reflects positions as of June 30, 2007, and does not account for trades executed in July or August 2007.