Diameter Capital Partners LP

2. Key Holdings

The most striking feature of the current portfolio is the dominance of the SPDR S&P 500 ETF Trust (SPY). With a value of $427.69 million, SPY constitutes a massive 55.77% of the total portfolio. This is a new position, indicating a strategic pivot to gaining immediate, broad exposure to the U.S. equity market rather than selecting individual winners.

Outside of the index fund, the largest active position is MasterBrand Inc (MBC) at $66.65 million (8.69%). This position was significantly bolstered during the quarter, making it the firm's largest conviction bet on an individual company. The remaining top holdings are relatively evenly distributed, with SLM Corp ($27.68M), AES Corp ($24.02M), and Altice USA ($23.55M) rounding out the top five.