As you may have surmised by this time, the ARC amplifier cannot be used with a single-ended source! If you do so, the amp **will not make anywhere near full power** and it will be distorted.
This is because the amplifier has a very poor Common Mode Rejection Ratio figure, on account of its input circuit (which apparently is differential) is not in fact very differential. IOW, IMO/IME, ARC missed a bet here.
At any rate, the only way to use this amplifier with a single-ended source such as the CAT is to use a transformer like you are doing (The Wadia worked of course because it has a balanced output).
There are several problems with this. The Jensen, while excellent, does not load the CAT ideally nor does it have the bandwidth of the CAT, so you are not hearing everything it does. However, unless you sell the CAT and get a balanced preamp, this is the only game in town.
I have to admit I am puzzled why the amplifier is designed in this fashion, but in conversations with the good people at ARC (a good number of whom I have known for decades) this is very much the case (As a manufacturer of balanced line products, we had to sort out compatibility with single-ended equipment many years ago). If I were you I would be seeking a balanced line tube preamp, but that's me: I don't like transformers. Plan B: Sell the amp and get something that works with your CAT. Both units are capable of excellent performance; its really a matter of which you like more. Good Luck- keep us informed.