WATER ISLAND CAPITAL LLC

Key Holdings and Their Significance

• CyberArk Software (top holding): $41.45M (7.23%). As the largest single position and a new entry this quarter, it materially shapes portfolio risk and return.
• AvidXchange and Informatica: $28.68M (5.00%) and $28.56M (4.98%) respectively. Both are large, new-or-increased positions and together with CyberArk make up ~15% of the portfolio.
• Mid-sized new positions: TXNM Energy ($25.48M), Chart Industries/GTLS ($25.45M), TEGNA ($24.87M), Verint/VTY ($24.36M) and Potbelly ($23.03M). Each of these is >$20M and newly established in the quarter, implying an aggressive redeployment of capital into a set of new names.
• Duplicate/fragmented positions observed: several names appear more than once (e.g., Core Scientific appears twice totaling $32.78M; Synovus appears twice with identical amounts; TXNM and Verint appear under multiple lines). These duplications suggest the 13F raw data may include multiple share classes, ADRs, or reporting artifacts — investors should verify CUSIPs/issuers in the underlying filing to determine true exposure.

Collectively, the top ~20 positions dominate portfolio risk: the top 5 represent ~26.1% of assets and the top 10 ~46.5%.