We have been completely hedged on our Teradata position. We are flattening here and exiting the position for only a slight gain .
With the appointment of Leo Apotheker as CEO of Hewlett-Packard Company $HPQ, our thesis on TDC is no longer true. Apotheker is likely to embark on software company acquisitions. Our analysis shows that acquisition of Teradata in the near time is unlikely, but the stock price may maintain the acquisition premium built into it. At this point, it makes no sense to hang on to our fully hedged Teradata position as the hedges will need to be rolled over and it will become a losing proposition.
