Empyrean Capital Partners, LP

The portfolio turnover was exceptionally high this quarter. The manager executed 27 new positions and completely exited 27 positions, resulting in a near-total overhaul of the fund's composition. Only 8 positions remained unchanged, and 6 were reduced. This level of activity suggests a tactical pivot or a realization of previous investment theses, likely triggered by redemptions or a deliberate rotation into specific value or special situations.

Key Holdings

The portfolio is currently led by Aercap Holdings NV (AER), which constitutes 11.51% of the total portfolio value at $181.50 million. This represents a dominant "conviction" position, accounting for over one-tenth of the fund's assets. The remaining top holdings are more evenly distributed, suggesting a barbell strategy where the manager concentrates heavily on the top idea while diversifying the remainder of the capital.