SHENKMAN CAPITAL MANAGEMENT INC

Shenkman Capital Management’s $831M 13F filing reveals a credit-focused portfolio that is far more interesting than its size suggests: the manager is not picking stocks, it is picking credit spreads inside convertible bonds and high-yield obligations. The top ten positions are mostly convertible notes—AKAM 1.125 02/15/29, MSTR 0 12/01/29, RIVN 3.625 10/15/30, SMCI 3.5 03/01/29, ON 0.5 03/01/29, VRNS 1 09/15/29, DBX 0 03/01/28, GPN 1.5 03/01/31, NUTANIX 0.5 12/15/29, and JBTM 0.25 05/15/26—each held in quantities that imply the fund is making a directional bet on the issuer’s credit quality and equity volatility, not on its stock price alone. The quarter’s largest increases were concentrated in that same sleeve: AKAM convertible +$15.4M, RIVN convertible +$12.4M, MSTR convertible +$10.6M, ON SEMICONDUCTOR convertible +$5.5M, and VARONIS convertible +$6.9M. Meanwhile, the fund slashed its Invesco BKLN senior loan ETF by 34% (-$22.4M), exited DUKE ENERGY and DIGITALOCEAN bonds entirely, and reduced UNITI, PARSONS, and FIRSTENERGY. Total 13F value declined from $948M to $831M even as the fund added to existing convertible sleeves—a combination that suggests investor redemptions rather than a strategy shift. The sharp read: Shenkman is using the drawdown to concentrate the credit book further into tech/cyclical convertibles while trimming bank-loan and utility exposure.