Twin Securities, Inc.

2. Key Holdings

The portfolio is currently top-heavy, with three positions commanding the vast majority of capital:

• MERUS N V (MRUS): This is the largest holding, comprising 33.70% of the portfolio ($29.21M). This represents a new position initiated during the quarter, indicating a strong bullish stance on the biotechnology sector.
• Mr. Cooper Group Inc. (COOP): The second-largest holding at 29.76% ($25.79M), this financial services firm represents a significant new allocation. The position size suggests a focus on the mortgage and housing finance sectors.
• CyberArk Software Ltd. (CYBR): Accounting for 26.10% ($22.62M), this cybersecurity firm rounds out the "Big Three" of the portfolio. Like the top two holdings, this was a new position, signaling a strategic pivot toward technology and security.
• Minor Holdings: The remaining five positions (Surgery Partners, WNS Hldgs, Acuren Corp, Tourmaline Bio, and Manchester United) are relatively small, ranging from 0.26% to 3.57%. Notably, Surgery Partners (SGRY) and Acuren Corp (TIC) were subject to significant reductions of 72.1% and 71.7%, respectively, suggesting the manager is de-risking or rotating capital out of these legacy positions to fund the new top holdings.

3. Sector Allocation

The sector allocation has shifted dramatically compared to the previous quarter, resulting in a highly concentrated profile:

• Unknown/Unspecified ($56.15M): A significant portion of the portfolio (64.8%) is categorized as "Unknown." In the context of the top holdings, this category likely encompasses Merus N V (Healthcare/Biotech) and CyberArk (Technology), as specific sector tags were not provided for every ticker in the raw data.
• Financial Services (29.8%): This exposure is driven almost entirely by the new position in Mr. Cooper Group.
• Healthcare (3.6%): This small slice is represented by Surgery Partners, which was heavily sold down during the quarter.
• Technology (1.9%): This minimal allocation is attributed to Acuren Corp, which also saw a major reduction.