HAWK RIDGE CAPITAL MANAGEMENT LP

Verisign's appearance as a new position is not a small tactical add. At $227 million and 8.3 percent of gross assets, it is the book's anchor. Combined with the second-largest new position, Workiva at $65 million, and a Super Micro Computer return at $53 million, the fund is building a technology allocation around companies with predictable, infrastructure-grade cash flows. Verisign's registry and root-server moat has no direct competitor; Workiva is the SEC-filing and compliance-software play favored by public companies that want a single platform rather than a patchwork of tools. Those are not high-beta names. They are not AI-inference names. They are software companies with contractual renewal structures that a $2.75 billion fund sized on the basis of enterprise durability, not growth acceleration, would naturally gravitate toward.

The larger rotation away from the December book is equally telling. Entegris — the $92 million semiconductor-supply-chain name — was liquidated entirely. Applied Optoelectronics, a $59 million position, was sold. Cadence and Appian were also removed. Corpay remains a top-five position but was increased only modestly, suggesting the manager views it as a core holding rather than an aggressive escalation. The thread connecting the exits is that all three sold or substantially reduced names — Entegris, AAOI, Appian — have cyclical or client-cycle exposure that looks different in this rate environment than it did when the positions were first built.