III Capital Management

Key Holdings

The dominant feature of the current portfolio is the overwhelming allocation to the SPDR S&P 500 ETF Trust (SPY), which constitutes 77.58% of the total portfolio value ($277.00M). This is a massive concentration in a single index fund, indicating a strong desire to capture broad market beta rather than specific alpha. The manager significantly increased this position during the quarter by 26.3% ($73.60M).

Outside of the S&P 500 exposure, the firm maintains a select group of active positions.

• Southern Co (SO) and WEC Energy Group (WEC) represent a defensive tilt toward utilities, comprising roughly 6.9% of the portfolio combined.
• IAC Inc (IAC) stands out as the largest non-ETF pure equity position (1.72%), suggesting a specific idiosyncratic bet on the technology/media conglomerate.
• Driven Brands (DRVN) and AT&T (T) round out the top individual equity holdings, with AT&T seeing a massive increase in exposure of 445.2% during the quarter.