13F-HR 1 d13fhr.txt HOLDINGS REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 13F Form 13F Cover Page Report for the Calendar Year or Quarter Ended: December 31, 2006 Check here if Amendment [ ]; Amendment Number: ______ This Amendment (Check only one.): [ ] is a restatement. [ ] adds new holdings entries. Institutional Investment Manager Filing this Report: Name: Highfields Capital Management LP Address: John Hancock Tower 200 Clarendon Street, 51st Floor Boston, MA 02116 Form 13F File Number: 28-3499 The institutional investment manager filing this report and the person by whom it is signed hereby represent that the person signing the report is authorized to submit it, that all information contained herein is true, correct and complete, and that it is understood that all required items, statements, schedules, lists, and tables, are considered integral parts of this form. Person Signing this Report on Behalf of Reporting Manager: Name:. Joseph F. Mazzella Title: General Counsel Phone: 617-850-7520 Signature, Place, and Date of Signing: /s/ Joseph F. Mazzella Boston, Massachusetts February 14, 2007 ------------------------ ------------------------ ------------------------ Report Type (Check only one.): [X] 13F HOLDINGS REPORT. (Check here if all holdings of this reporting manager are reported in this report.) [ ] 13F NOTICE. (Check here if no holdings reported are in this report, and all holdings are reported by other reporting manager(s).) [ ] 13F COMBINATION REPORT. (Check here if a portion of the holdings of this reporting manager are reported in this report and a portion are reported by other reporting manager(s).) List of other managers reporting for this manager: NONE. FORM 13F SUMMARY PAGE Report Summary: Number of Other Included Managers: 2 Form 13F Information Table Entry Total: 92 Form 13F Information Table Value Total: $7,515,081 (x 1000) List of Other Included Managers: Provide a numbered list of name(s) and Form 13F file number(s) of all institutional investment managers with respect to which this report is filed, other than the manager filing this report. No. Form 13F File Number Name --- -------------------- -------------------- 01 File Number 28-7618 Jonathon S. Jacobson 02 File Number 28-7616 Richard L. Grubman FORM 13F Page 2 of 4 Name of Reporting Manager: Highfields Capital Management LP

Item 1: Item 2: Item 3: Item 4: Item 5: Item 6: Item 7: Item 8: --VOTING AUTHORITY-- VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGERS SOLE SHARED NONE -------------- -------------- --------- -------- ---------- --- ---- ---------- -------- ---------- ------ ---- Altria Group Inc COM 02209S103 197,386 2,300,000 SH OTHER 01/02 2,300,000 Anadarko Petroleum Corp COM 032511107 10,880 250,000 SH PUT OTHER 01/02 250,000 Apollo Group Inc CL A 037604105 67,675 1,736,584 SH OTHER 01/02 1,736,584 Aramark Corp CL B 038521100 172,216 5,148,452 SH OTHER 01/02 5,148,452 Aspen Insurance Holdings Ltd SHS G05384105 47,358 1,796,600 SH OTHER 01/02 1,796,600 Astoria Financial Corp COM 046265104 11,698 387,849 SH OTHER 01/02 387,849 Avaya Inc COM 053499109 21,536 1,540,510 SH OTHER 01/02 1,540,510 Berkshire Hathaway Inc CL A 084670108 107,790 980 SH OTHER 01/02 980 BJ Svcs Co COM 055482103 8,210 280,000 SH OTHER 01/02 280,000 BlackRock Inc COM 09247X101 264,270 1,739,760 SH OTHER 01/02 1,739,760 Borders Group Inc COM 099709107 22,350 1,000,000 SH OTHER 01/02 1,000,000 Boston Scientific Corp COM 101137107 250,270 14,567,500 SH OTHER 01/02 14,567,500 Canadian Ntrl Resources Ltd COM 136385101 160,334 3,012,100 SH OTHER 01/02 3,012,100 Capital Source Inc COM 14055X102 13,155 481,683 SH OTHER 01/02 481,683 Caremark RX Inc COM 141705103 138,898 2,432,112 SH OTHER 01/02 2,432,112 Centex Corp COM 152312104 87,219 1,550,000 SH OTHER 01/02 1,550,000 Clear Channel Comm Inc COM 184502102 572,066 16,096,400 SH OTHER 01/02 16,096,400 Coach Inc COM 189754104 94,383 2,197,000 SH PUT OTHER 01/02 2,197,000 Comcast Corp CL A 20030N101 39,156 925,011 SH OTHER 01/02 925,011 Comcast Corp CL A SPL 20030N200 283,182 6,761,748 SH OTHER 01/02 6,761,748 ConocoPhillips COM 20825C104 365,098 5,074,327 SH OTHER 01/02 5,074,327 CVS Corp COM 126650100 209,663 6,783,005 SH OTHER 01/02 6,783,005 Dell Inc COM 24702R101 91,237 3,636,400 SH OTHER 01/02 3,636,400 Dollar General Corp COM 256669102 16,060 1,000,000 SH OTHER 01/02 1,000,000 Dow Jones & Co Inc COM 260561105 57,000 1,500,000 SH OTHER 01/02 1,500,000 Dynegy Inc CL A 26816Q101 61,060 8,433,712 SH OTHER 01/02 8,433,712 Embarq Corp COM 29078E105 8,311 158,131 SH OTHER 01/02 158,131 EnCana Corp COM 292505104 69,735 1,517,638 SH OTHER 01/02 1,517,638 Exelon Corp COM 30161N101 24,756 400,000 SH OTHER 01/02 400,000 Federated Dept Stores Inc COM 31410H101 1,907 50,000 SH OTHER 01/02 50,000 Ford Mtr Co COM PAR $0.01 345370860 1,202 160,000 SH OTHER 01/02 160,000 Federal Home Ln Mtg Corp COM 313400301 141,672 2,086,480 SH OTHER 01/02 2,086,480 Federal Home Ln Mtg Corp COM 313400301 60,675 893,600 SH CALL OTHER 01/02 893,600 GAP Inc COM 364760108 166,798 8,553,744 SH OTHER 01/02 8,553,744 Grant Prideco Inc COM 38821G101 11,533 290,000 SH OTHER 01/02 290,000 Halliburton Co COM 406216101 11,333 365,000 SH OTHER 01/02 365,000 Harrahs Entmt Inc COM 413619107 340,269 4,113,499 SH OTHER 01/02 4,113,499 HealthSouth Corp COM NEW 421924309 141,564 6,250,079 SH OTHER 01/02 6,250,079 Helix Energy Solutions Grp Inc COM 42330P107 4,392 140,000 SH OTHER 01/02 140,000 Hudson City Bancorp COM 443683107 82,227 5,924,168 SH OTHER 01/02 5,924,168 Intel Corp COM 458140100 4,050 200,000 SH CALL OTHER 01/02 200,000 Ishares Silver Trust ISHARES 46428Q109 47,621 370,190 SH OTHER 01/02 370,190 JC Penney Co Inc COM 708160106 5,802 75,000 SH PUT OTHER 01/02 75,000 Janus Capital Group Inc COM 47102X105 95,676 4,431,481 SH OTHER 01/02 4,431,481 Knology Inc COM 499183804 11,162 1,049,039 SH OTHER 01/02 1,049,039 Legg Mason Inc COM 524901105 98,453 1,035,800 SH OTHER 01/02 1,035,800 McClatchy Co CL A 579489105 107,432 2,481,104 SH OTHER 01/02 2,481,104 McDonalds Corp COM 580135101 85,136 1,920,500 SH OTHER 01/02 1,920,500 MCF Corp COM 580395101 4,835 1,017,860 SH OTHER 01/02 1,017,860 Merrill Lynch & Co Inc COM 590188108 41,430 445,000 SH OTHER 01/02 445,000 Microsoft Corp COM 594918104 203,347 6,810,000 SH OTHER 01/02 6,810,000 National Coal Corp COM NEW 632381208 3,102 517,012 SH OTHER 01/02 517,012 National Oilwell Varco Inc COM 637071101 8,871 145,000 SH OTHER 01/02 145,000

Item 1: Item 2: Item 3: Item 4: Item 5: Item 6: Item 7: Item 8: --VOTING AUTHORITY-- VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGERS SOLE SHARED NONE -------------- -------------- --------- -------- --------- --- ---- ---------- -------- --------- ------ ---- Natl Australia Bk Ltd CAP UTS EXCHBL 632525309 12,875 250,000 SH OTHER 01/02 250,000 Netease Com Inc SPONSORED ADR 64110W102 12,388 662,809 SH OTHER 01/02 662,809 New York Times Co CL A 650111107 44,701 1,835,000 SH OTHER 01/02 1,835,000 Newmont Mining Corp COM 651639106 60,953 1,350,000 SH OTHER 01/02 1,350,000 News Corp CL A 65248E104 137,372 6,395,352 SH OTHER 01/02 6,395,352 Nortel Networks Corp COM NEW 656568508 12,525 468,580 SH OTHER 01/02 468,580 Novelis Inc COM 67000X106 44,604 1,601,563 SH OTHER 01/02 1,601,563 Novell Inc COM 670006105 1,550 250,000 SH OTHER 01/02 250,000 NTL Inc COM 62941W101 23,782 942,228 SH OTHER 01/02 942,228 Patterson UTI Energy Inc COM 703481101 4,065 175,000 SH OTHER 01/02 175,000 Phelps Dodge Corp COM 717265102 15,564 130,000 SH OTHER 01/02 130,000 Pioneer Nat Res Co COM 723787107 42,598 1,073,267 SH OTHER 01/02 1,073,267 PNC Financial Services Grp Inc COM 693475105 38,871 525,000 SH OTHER 01/02 525,000 Powershares ETF Trust WATER RESOURCE 73935X575 1,473 80,000 SH OTHER 01/02 80,000 Pulte Homes Inc COM 745867101 64,750 1,955,000 SH OTHER 01/02 1,955,000 Qualcomm Inc COM 747525103 269,643 7,135,303 SH OTHER 01/02 7,135,303 Qualcomm Inc COM 747525103 7,558 200,000 SH CALL OTHER 01/02 200,000 RCN Corp COM NEW 749361200 7,804 258,844 SH OTHER 01/02 258,844 Reliant Energy Inc COM 75952B105 67,441 4,746,015 SH OTHER 01/02 4,746,015 Rowan Cos Inc COM 779382100 4,316 130,000 SH OTHER 01/02 130,000 Saks Incorporated COM 79377W108 27,578 1,547,613 SH OTHER 01/02 1,547,613 Select Sector Spdr Tr SBI INT-FINL 81369Y605 3,674 100,000 SH PUT OTHER 01/02 100,000 Semiconductor Hldrs Trust DEP RCPT 816636203 1,683 50,000 SH OTHER 01/02 50,000 Smithfield Foods Inc COM 832248108 8,599 335,100 SH OTHER 01/02 335,100 Sovereign Bancorp Inc COM 845905108 118,534 4,668,544 SH OTHER 01/02 4,668,544 Sprint Nextel Corp COM FON 852061100 119,625 6,332,700 SH OTHER 01/02 6,332,700 Standard Pac Corp COM 85375C101 62,447 2,331,000 SH OTHER 01/02 2,331,000 Station Casinos Inc COM 857689103 423,042 5,179,900 SH OTHER 01/02 5,179,900 Suncor Energy Inc COM 867229106 74,965 950,000 SH CALL OTHER 01/02 950,000 Teekay Shipping Corp COM Y8564W103 40,401 926,200 SH OTHER 01/02 926,200 Tiffany & Co COM 886547108 82,404 2,100,000 SH OTHER 01/02 2,100,000 Todco COM 88889T107 4,271 125,000 SH OTHER 01/02 125,000 Treehouse Foods Inc COM 89469A104 79,501 2,548,100 SH OTHER 01/02 2,548,100 Universal Technical Institute COM 913915104 5,553 250,000 SH OTHER 01/02 250,000 Washington Group Intl Inc COM NEW 938862208 9,411 157,400 SH OTHER 01/02 157,400 Wendys Intl Inc COM 950590109 226,392 6,841,697 SH OTHER 01/02 6,841,697 Xerox Corp COM 984121103 78,906 4,655,224 SH OTHER 01/02 4,655,224 Yahoo Inc COM 984332106 2,809 110,000 SH OTHER 01/02 110,000 YUM Brands Inc COM 988498101 117,012 1,990,000 SH OTHER 01/02 1,990,000