That said, we believe the dispersion of outcomes has widened to a sufficiently large extent that it is challenging for the company to meet our requirements for a core holding. Based on management’s track record, we would not be surprised to see Netflix continue to be a highly successful company and an excellent investment from its current market value. While Netflix’s business is fundamentally simple to understand, in light of recent events, we have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty. We require a high degree of predictability in the businesses in which we invest due to the highly concentrated nature of our portfolio. While we believe these business model changes are sensible, it is extremely difficult to predict their impact on the company’s long-term subscriber growth, future revenues, operating margins, and capital intensity. Yesterday, in response to continued disappointing customer subscriber growth, Netflix announced that it would modify its subscription-only model to be more aggressive in going after non-paying customers, and to incorporate advertising, an approach that management estimates would take “one to two years” to implement. In our original analysis, we viewed this operating leverage favorably due to our long-term growth expectations for the company. While we have a high regard for Netflix’s management and the remarkable company they have built, in light of the enormous operating leverage inherent in the company’s business model, changes in the company’s future subscriber growth can have an outsized impact on our estimate of intrinsic value. Reflecting this loss, as of today’s close, the Pershing Square Funds are down approximately two percent year-to-date. The loss on our investment reduced the Pershing Square Funds’ year-to-date returns by four percentage points. Today, we sold our investment in Netflix, which we purchased earlier this year.