GRITSTONE ASSET MANAGEMENT LLC

2. Key Holdings

The portfolio is characterized by a heavy skew towards its top assets, with the first position dominating the allocation.

• Ares Capital Corp (ARCC): This is the standout holding, valued at $9.04 million, representing 8.63% of the total portfolio. With 447,000 shares, this is the only traditional operating company in the top ten. It serves as a significant anchor, providing exposure to business development companies (BDC) and direct lending.
• SPAC Concentration: Excluding ARCC, the remainder of the top 10 positions consists entirely of Special Purpose Acquisition Companies (SPACs). Positions 2 through 5 (EQV Ventures, Oaktree Acquisition III, Aldel Finl II, and Bold Eagle) are tightly clustered, each representing between 3.48% and 4.03% of the portfolio. This clustering suggests a valuation-based approach to SPAC investing, targeting specific price points or trust values.
• Uniform Position Sizing: A notable pattern in the top 50 holdings is the uniformity in share counts for many SPACs. Numerous positions (e.g., positions 20 through 31) hold exactly 125,000 or 150,000 shares, implying a systematic allocation strategy rather than stock-picking based on individual sponsor merit.