WATER ISLAND CAPITAL LLC

Water Island Capital LLC is an investment management firm based out of New York City, New York. The company was originally founded in 2000 as a “specialist in event-driven investing” and is headed by President and CEO John S. Orrico. Water Island Capital conducts its research internally and externally, allocating its assets in the public equity and fixed income markets on a global scale. The company invests most heavily in the information technology sector, which alone makes up a fifth of the firm’s total asset allocations, and also invests in the other, making up just under another fifth of its allocations, finance, industrials, consumer discretionary, and real estate sectors, among other sectors to a lesser degree, in order of decreasing allocation. Water Island Capital holds its allocations an average of only 0.71 quarters and, in the most recent quarter, had a turnover rate of approximately 128%, indicating a fast trading approach. Water Island Capital is owned by its employees and currently operates with 50 employees of which 19 are investment professionals. The company oversees over $2.6 billion in total assets under management spread across 7 total accounts, all of which are discretionary accounts. Both of Water Island Capital’s total number of accounts and total assets under management have been increasing in recent years with its total number of accounts growing from 1 back in 2010 to its current amount and its total assets under management growing significantly from under $200 million five years ago to well over 15 times that amount today. The company mainly caters to investment companies, which makes up almost the entirety of its client base, and also provides services to other pooled investment vehicles to a lesser degree. Water Island Capital is the advisory to The Arbitrage Funds and offers the Arbitrage Fund, Event Driven Fund, and Credit Opportunities fund in its lineup of mutual funds.