OCONNOR, A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS (LLC)

The portfolio now holds 263 positions, reflecting a high degree of diversification. However, the portfolio is far from equally weighted; it exhibits a "barbell" structure with a handful of massive positions balanced against a long tail of smaller holdings. The activity level was exceptionally high this quarter, with 49 new positions initiated, 2 complete exits, and only 1 increased stake. This suggests a near-total overhaul of the previous portfolio strategy rather than mere incremental adjustments.

2. Key Holdings

The portfolio is heavily dominated by a single top holding, Verona Pharma (VRNA), which constitutes 27.57% of the total portfolio value at $457.09 million. This represents an exceptionally high concentration risk for a diversified institutional portfolio, signaling a strong conviction in the healthcare name.