I think I'm right here and would explain your 3 reefs. Race boat redesigned as a racer/cruiser with a tall rig.

A short history on your Cat 38 for others on the board.
The Catalina 38 was first designed by Sparkman & Stevens as an IOR one ton design racing yacht. When Catalina bought the mold in the late 1970's Frank Butler re-designed the interior and deck house and raised the mast about 10 feet.

That first reef must be really small.