Choice Equities Capital Management

Investor Summary

Mitchell Scott, CFA, serves as the founder and managing partner of Choice Equities Capital Management, bringing nine years of investment experience with primary areas of focus in small caps and distribution companies across various consumer and industrial verticals. Prior to founding CECM in 2017, Mitchell spent five years at KDI, a Barron's 2015 top 100 hedge fund where he was an analyst and portfolio manager of the Focused Distribution Strategy (FDS). Choice Equities Capital Management was created to continue offering clients the concentrated, capital appreciation vehicle previously known as FDS. He holds the CFA designation and has been involved in the academic investment community as a judge for investment competitions.

Fund Strategy

Choice Equities is a boutique hedge fund manager that invests in public equities with the mindset of an opportunistic businessperson. As practitioners of the value investing discipline, they have borrowed critical elements from a tried and true investment philosophy and adopted an approach that maximizes their ability to generate compelling absolute and relative returns across all market cycles. They practice a fundamentals-based investment approach and conduct exhaustive due diligence with an eye towards multi-year investment horizons. They think like owners and believe their mindset resembles that of an opportunistic businessperson's, with their primary goal being compounding capital safely over the long term.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	30%	21.6%

Executive Summary

Choice Equities Fund delivered exceptional performance in Q2 2025 with +30.0% net gains, bringing year-to-date returns to +21.6% versus -1.8% for the Russell 2000. The fund's concentrated approach capitalized on market volatility during a historic four-month round trip where the S&P 500 moved from February highs into bear market territory and back to new highs by June. Key drivers included MGNI, the largest position benefiting from the shift in advertiser budgets from linear TV to streaming, and CELH contributions. The portfolio maintains focus on six core holdings: BNED, CELH, GENI, MGNI, MOD, and PAR. GENI secured extended NFL and NCAA data rights deals providing revenue visibility, while MOD continues its transformation under CEO Brinker with strong data center cooling demand. Despite acknowledging risks from trade wars and earnings pressures, the manager sees an increasingly positive environment for earnings as fiscal policy turns supportive and geopolitical tensions potentially de-escalate. The concentrated strategy positions the fund to benefit from positive business developments across its high-conviction holdings.

Forward Outlook

Events of recent weeks have continued to point to an increasingly positive environment for earnings. These developments followed after much of the investment community lowered outlooks and took expectations and forward estimates down, setting up positive revisions to earnings growth and expectations from here. Despite this view remaining susceptible to becoming dated quickly given things changing quickly, the manager believes holdings offer an attractive blend of forward returns based on views of prices and values and likely developments of positive business outcomes.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 17 2025	2025 Q2	BNED, CELH, GENI, MGNI, MOD, PAR, ROP, SRAD	Advertising, concentrated, gaming, growth, Manufacturing, small caps, technology, value	GENI MGNI MOD GENI MGNI MOD	Choice Equities Fund generated +30.0% Q2 returns through concentrated small-cap investing, capitalizing on market volatility to identify price-to-value dislocations. Key holdings MGNI and GENI drove performance with secular tailwinds in streaming advertising and sports betting data rights. Despite trade war risks, the manager sees improving earnings environment with supportive fiscal policy and geopolitical de-escalation setting up positive revisions.
Oct 24 2024	2024 Q3	CROX, CZR, GENI, HAIN, MGNI, OEC, PAR	Advertising, gaming, Restaurants, small caps, technology, value	CZR GENI HAIN	Choice Equities declined 1.8% in Q3 but maintains strong long-term performance with 15% annualized returns since 2017. The fund targets undervalued small-caps benefiting from digitization, gaming growth, and infrastructure trends. Key positions include PAR Technology's restaurant software expansion and gaming plays Caesars and Genius Sports. Manager expects secular themes to continue driving long-term outperformance.
Jul 29 2024	2024 Q2	AMZN, DIS, DISH, FOX, FUBO, GOOGL, HEES, META, MGNI, MSFT, NFLX, NVDA, OEC, PAR, ROKU, WBD	Ad Tech, AI, Concentration, small caps, Streaming, technology, value	MGNI	Choice Equities' concentrated small-cap strategy weathered Q2 market concentration but positions for broadening recovery. Key holding Magnite wins Netflix CTV advertising contract, validating streaming monetization thesis. Portfolio trades at attractive valuations with anticipated earnings acceleration as monetary policy loosens and profit growth broadens beyond mega-cap tech dominance.
May 10 2024	2024 Q1	CROX, HEES, PAR, SHAK, URI	earnings growth, Equipment Rental, infrastructure, Restaurants, small caps, technology	CROX SHAK PAR HEES	Choice Equities outperformed with 14.2% Q1 gains by investing in small-cap companies benefiting from infrastructure spending and technology upgrades. Key holdings Crocs, Shake Shack, Par Technology, and H&E Equipment are executing operational improvements while positioned for secular growth tailwinds. Small caps are entering a new profit cycle with attractive valuations despite accelerating earnings expectations.
Jan 22 2024	2023 Q4	BXC, CROX, MGNI, OEC, PAR, SHAK, STGW, WCC	Building Products, Buybacks, Restaurants, small caps, technology, value	BXC IPAR	Choice Equities underperformed in 2023 due to focus on value stocks while growth dominated. Manager added building products distributor Bluelinx and restaurant software provider Par Technology. Despite near-term challenges, maintains conviction in value approach given attractive small-cap valuations and emerging profit cycle as inflation fades.
Oct 31 2023	2023 Q3	CROX, MGNI, OEC, PLCE, SHAK, STGW, WCC	Advertising, consumer, industrials, Restaurants, small caps, value	SHAK	Choice Equities targets small/mid-cap value opportunities while large-cap tech trades at historic highs. Portfolio includes quality industrials at single-digit multiples and consumer brands like Crocs at 7x earnings. Despite Q3 underperformance driven by advertising weakness at Magnite, the Russell 2000's 11.5x forward multiple represents historically attractive entry point for patient capital.
Jan 30 2023	2022 Q4	CROX	-	-
Oct 27 2022	2022 Q3	CROX, FARM, OEC, SITE, WCC	-	-

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 17 2025

2025 Q2

BNED, CELH, GENI, MGNI, MOD, PAR, ROP, SRAD

Advertising, concentrated, gaming, growth, Manufacturing, small caps, technology, value

GENI
MGNI
MOD
GENI
MGNI
MOD

Choice Equities Fund generated +30.0% Q2 returns through concentrated small-cap investing, capitalizing on market volatility to identify price-to-value dislocations. Key holdings MGNI and GENI drove performance with secular tailwinds in streaming advertising and sports betting data rights. Despite trade war risks, the manager sees improving earnings environment with supportive fiscal policy and geopolitical de-escalation setting up positive revisions.

Oct 24 2024

2024 Q3

CROX, CZR, GENI, HAIN, MGNI, OEC, PAR

Advertising, gaming, Restaurants, small caps, technology, value

CZR
GENI
HAIN

Choice Equities declined 1.8% in Q3 but maintains strong long-term performance with 15% annualized returns since 2017. The fund targets undervalued small-caps benefiting from digitization, gaming growth, and infrastructure trends. Key positions include PAR Technology's restaurant software expansion and gaming plays Caesars and Genius Sports. Manager expects secular themes to continue driving long-term outperformance.

Jul 29 2024

2024 Q2

AMZN, DIS, DISH, FOX, FUBO, GOOGL, HEES, META, MGNI, MSFT, NFLX, NVDA, OEC, PAR, ROKU, WBD

Ad Tech, AI, Concentration, small caps, Streaming, technology, value

MGNI

Choice Equities' concentrated small-cap strategy weathered Q2 market concentration but positions for broadening recovery. Key holding Magnite wins Netflix CTV advertising contract, validating streaming monetization thesis. Portfolio trades at attractive valuations with anticipated earnings acceleration as monetary policy loosens and profit growth broadens beyond mega-cap tech dominance.

May 10 2024

2024 Q1

CROX, HEES, PAR, SHAK, URI

earnings growth, Equipment Rental, infrastructure, Restaurants, small caps, technology

CROX
SHAK
PAR
HEES

Choice Equities outperformed with 14.2% Q1 gains by investing in small-cap companies benefiting from infrastructure spending and technology upgrades. Key holdings Crocs, Shake Shack, Par Technology, and H&E Equipment are executing operational improvements while positioned for secular growth tailwinds. Small caps are entering a new profit cycle with attractive valuations despite accelerating earnings expectations.

Jan 22 2024

2023 Q4

BXC, CROX, MGNI, OEC, PAR, SHAK, STGW, WCC

Building Products, Buybacks, Restaurants, small caps, technology, value

BXC
IPAR

Choice Equities underperformed in 2023 due to focus on value stocks while growth dominated. Manager added building products distributor Bluelinx and restaurant software provider Par Technology. Despite near-term challenges, maintains conviction in value approach given attractive small-cap valuations and emerging profit cycle as inflation fades.

Oct 31 2023

2023 Q3

CROX, MGNI, OEC, PLCE, SHAK, STGW, WCC

Advertising, consumer, industrials, Restaurants, small caps, value

SHAK

Choice Equities targets small/mid-cap value opportunities while large-cap tech trades at historic highs. Portfolio includes quality industrials at single-digit multiples and consumer brands like Crocs at 7x earnings. Despite Q3 underperformance driven by advertising weakness at Magnite, the Russell 2000's 11.5x forward multiple represents historically attractive entry point for patient capital.

Jan 30 2023

2022 Q4

CROX

Oct 27 2022

2022 Q3

CROX, FARM, OEC, SITE, WCC

QUARTER	THEMES	TAGS
2025 Q2	Sports Betting GENI secured extended NFL data rights deal through 2029 and exclusive NCAA data rights through 2032, providing visibility into data costs and enabling incremental revenues to flow through at attractive margins. Sports betting legalization in Brazil and pending U.S. states, plus growth in in-game betting where GENI generates higher take rates, creates ongoing revenue opportunities in a market growing at low-double digit rates.	Sports Betting Data Rights Gaming In-game Betting Take Rates
	Advertising MGNI benefited from advertiser TV budgets shifting from traditional linear TV to CTV (streaming), reaching a critical equilibrium mark. Ad budgets remained largely intact despite economic concerns, with Netflix's advertising efforts gaining scale and the broader tide turning toward streaming advertising.	CTV Streaming Linear TV Ad Budgets Netflix
	Data Centers MOD's Climate Solutions segment benefits from durable demand for data center cooling products, supporting attractive topline growth that can be leveraged into mid-teens earnings growth in coming years as part of the company's transformation under CEO Neil Brinker.	Data Center Cooling Climate Solutions Cooling Products
2024 Q3	Gaming The fund holds positions in Caesars Entertainment and Genius Sports, both operating in the entertainment, casino and gaming space. Caesars benefits from secular tailwinds in online sports betting and iGaming, while Genius has exclusive data rights deals with major leagues including the NFL and English Premier League.	Sports Betting Casinos Entertainment iGaming Data Rights
	Cloud PAR Technology continues winning new logos in enterprise restaurant arena for its unified digital commerce offering and is expanding into convenience stores. The company is positioned for 20% organic growth as restaurants and industries move to cloud-based software platforms.	SaaS Enterprise Software Digital Commerce Restaurant Technology
	Advertising Magnite operates in the digital advertising space and looks attractive on its own merits, though shares could become particularly interesting should industry anti-trust events break their way. The company remains well-positioned in its industry.	Ad Tech Digital Advertising Programmatic
2024 Q2	AI AI enthusiasm morphed into an outright AI vortex during Q2, with possibilities around AI use cases and productivity enhancements captivating public imaginations and creating an arms race mentality in corporate boardrooms. Four large hyperscalers intend to spend approximately $200B this year on AI chips, with the market capitalizing these large capital flows and rewarding recipients like Nvidia with higher trading multiples.	Artificial Intelligence Hyperscalers Productivity Chips Capital Spending
	Streaming Streaming is now the most dominant form of content consumption, commanding nearly 40% share across all channels. As consumers grow tired of multiple subscription fees, many are opting for ad-supported streaming models, with ads emerging as the dominant means of monetization for television of the future, potentially exceeding the linear TV ad market.	Connected TV AVOD Programmatic Subscription Monetization
	Ad Tech The programmatic advertising market shows strong growth potential, particularly in Connected TV where nearly three-quarters of advertising is done programmatically. Supply Path Optimization trends are driving consolidation, with advertisers preferring fewer, higher-quality platform relationships over numerous fragmented exchanges.	Programmatic Supply Side Platform CTV Take Rates Consolidation
	Small Caps Recent market activity shows renewed investor interest in small and mid cap stocks, which are anticipating accelerating earnings growth next year. This cohort offers attractive durable earnings growth and valuations, with the relative valuation disparity to large caps remaining exceptionally large by historical context.	Valuation Disparity Earnings Growth Market Leadership Broadening
2024 Q1	Infrastructure Spending The Infrastructure Investment and Jobs Act allocates more than $1 trillion over ten years, complemented by the Inflation Reduction Act and CHIPS Act. Construction spending in manufacturing reached $225 billion in 2023, more than doubling the 2015 peak. This represents a threefold increase compared to historical infrastructure programs when adjusting for inflation.	Infrastructure IIJA Construction Manufacturing Government
	Restaurants Restaurant technology is experiencing long-running tailwinds driven by an upgrade cycle as mission critical equipment moves to the cloud. Par Technology's acquisitions position it as a one-stop shop for unified commerce offerings with broader addressable markets internationally and in adjacent products like payments and loyalty programs.	Restaurant Technology Cloud POS Software
	Small Caps Small caps look set to begin a new profit cycle with earnings growth expected to resume in the coming quarter and accelerating through 2025. They trade at attractive relative and absolute valuations despite expectations for an accelerating profit cycle.	Small Cap Earnings Valuations Profit Cycle Growth
2023 Q4	Value Manager focuses on low multiple stocks of quality businesses at discounted valuations. Despite challenging backdrop in 2023, continues to believe this approach offers best chance of outperforming over sustained periods.	Value Cheap Discounted Multiple Quality
	Small Caps Portfolio primarily focused on small and mid-cap stocks which remain remarkably cheap by historical context. Manager notes seven years of lean performance for small caps versus large caps but sees opportunity ahead.	Small Cap Russell 2000 Valuation Disparity Cheap
	Building Products Added Bluelinx Holdings as building products distributor with improved product mix shift from structural to specialty products, driving higher margins and EBITDA potential from 5% to 10%.	Building Products Lumber Millwork Construction Distribution
2023 Q3	Small Caps Manager emphasizes that small and mid-cap stocks have severely lagged larger peers and are now historically attractive. The Russell 2000 fell below pre-pandemic levels, with forward earnings multiple of S&P 600 at 11.5x, a level only seen three times since 1999. All prior instances produced double-digit annualized returns across multiple years.	Russell 2000 Valuations Outperformance Historical Multiples
	Value Portfolio holdings trade at attractive valuations with industrials at single-digit earnings multiples, Children's Place generating nearly half its market cap in cash with mid-20s free cash flow yield, and Crocs trading at approximately 7x earnings despite owning two billion-dollar shoe brands. Manager highlights the types of values available in today's market.	Multiples Cash Flow Earnings Undervalued Opportunities
	Advertising Holdings Magnite and Stagwell offer double-digit free cash flow yields and attractive growth prospects, both positioned to benefit from a pickup in advertising spend. Weakness in spending, particularly in Magnite's CTV vertical, appeared midsummer and persisted, but spending effects should reverse with upcoming political spending cycle.	CTV Political Spending Recovery Growth

QUARTER

THEMES

Sports Betting

GENI secured extended NFL data rights deal through 2029 and exclusive NCAA data rights through 2032, providing visibility into data costs and enabling incremental revenues to flow through at attractive margins. Sports betting legalization in Brazil and pending U.S. states, plus growth in in-game betting where GENI generates higher take rates, creates ongoing revenue opportunities in a market growing at low-double digit rates.

Sports Betting Data Rights Gaming In-game Betting Take Rates

Advertising

MGNI benefited from advertiser TV budgets shifting from traditional linear TV to CTV (streaming), reaching a critical equilibrium mark. Ad budgets remained largely intact despite economic concerns, with Netflix's advertising efforts gaining scale and the broader tide turning toward streaming advertising.

CTV Streaming Linear TV Ad Budgets Netflix

Data Centers

MOD's Climate Solutions segment benefits from durable demand for data center cooling products, supporting attractive topline growth that can be leveraged into mid-teens earnings growth in coming years as part of the company's transformation under CEO Neil Brinker.

Data Center Cooling Climate Solutions Cooling Products

2024 Q3

Gaming

The fund holds positions in Caesars Entertainment and Genius Sports, both operating in the entertainment, casino and gaming space. Caesars benefits from secular tailwinds in online sports betting and iGaming, while Genius has exclusive data rights deals with major leagues including the NFL and English Premier League.

Sports Betting Casinos Entertainment iGaming Data Rights

Cloud

PAR Technology continues winning new logos in enterprise restaurant arena for its unified digital commerce offering and is expanding into convenience stores. The company is positioned for 20% organic growth as restaurants and industries move to cloud-based software platforms.

SaaS Enterprise Software Digital Commerce Restaurant Technology

Advertising

Magnite operates in the digital advertising space and looks attractive on its own merits, though shares could become particularly interesting should industry anti-trust events break their way. The company remains well-positioned in its industry.

Ad Tech Digital Advertising Programmatic

2024 Q2

AI

AI enthusiasm morphed into an outright AI vortex during Q2, with possibilities around AI use cases and productivity enhancements captivating public imaginations and creating an arms race mentality in corporate boardrooms. Four large hyperscalers intend to spend approximately $200B this year on AI chips, with the market capitalizing these large capital flows and rewarding recipients like Nvidia with higher trading multiples.

Artificial Intelligence Hyperscalers Productivity Chips Capital Spending

Streaming

Streaming is now the most dominant form of content consumption, commanding nearly 40% share across all channels. As consumers grow tired of multiple subscription fees, many are opting for ad-supported streaming models, with ads emerging as the dominant means of monetization for television of the future, potentially exceeding the linear TV ad market.

Connected TV AVOD Programmatic Subscription Monetization

Ad Tech

The programmatic advertising market shows strong growth potential, particularly in Connected TV where nearly three-quarters of advertising is done programmatically. Supply Path Optimization trends are driving consolidation, with advertisers preferring fewer, higher-quality platform relationships over numerous fragmented exchanges.

Programmatic Supply Side Platform CTV Take Rates Consolidation

Small Caps

Recent market activity shows renewed investor interest in small and mid cap stocks, which are anticipating accelerating earnings growth next year. This cohort offers attractive durable earnings growth and valuations, with the relative valuation disparity to large caps remaining exceptionally large by historical context.

Valuation Disparity Earnings Growth Market Leadership Broadening

2024 Q1

Infrastructure Spending

The Infrastructure Investment and Jobs Act allocates more than $1 trillion over ten years, complemented by the Inflation Reduction Act and CHIPS Act. Construction spending in manufacturing reached $225 billion in 2023, more than doubling the 2015 peak. This represents a threefold increase compared to historical infrastructure programs when adjusting for inflation.

Infrastructure IIJA Construction Manufacturing Government

Restaurants

Restaurant technology is experiencing long-running tailwinds driven by an upgrade cycle as mission critical equipment moves to the cloud. Par Technology's acquisitions position it as a one-stop shop for unified commerce offerings with broader addressable markets internationally and in adjacent products like payments and loyalty programs.

Restaurant Technology Cloud POS Software

Small Caps

Small caps look set to begin a new profit cycle with earnings growth expected to resume in the coming quarter and accelerating through 2025. They trade at attractive relative and absolute valuations despite expectations for an accelerating profit cycle.

Small Cap Earnings Valuations Profit Cycle Growth

2023 Q4

Value

Manager focuses on low multiple stocks of quality businesses at discounted valuations. Despite challenging backdrop in 2023, continues to believe this approach offers best chance of outperforming over sustained periods.

Value Cheap Discounted Multiple Quality

Small Caps

Portfolio primarily focused on small and mid-cap stocks which remain remarkably cheap by historical context. Manager notes seven years of lean performance for small caps versus large caps but sees opportunity ahead.

Small Cap Russell 2000 Valuation Disparity Cheap

Building Products

Added Bluelinx Holdings as building products distributor with improved product mix shift from structural to specialty products, driving higher margins and EBITDA potential from 5% to 10%.

Building Products Lumber Millwork Construction Distribution

2023 Q3

Small Caps

Manager emphasizes that small and mid-cap stocks have severely lagged larger peers and are now historically attractive. The Russell 2000 fell below pre-pandemic levels, with forward earnings multiple of S&P 600 at 11.5x, a level only seen three times since 1999. All prior instances produced double-digit annualized returns across multiple years.

Russell 2000 Valuations Outperformance Historical Multiples

Value

Portfolio holdings trade at attractive valuations with industrials at single-digit earnings multiples, Children's Place generating nearly half its market cap in cash with mid-20s free cash flow yield, and Crocs trading at approximately 7x earnings despite owning two billion-dollar shoe brands. Manager highlights the types of values available in today's market.

Multiples Cash Flow Earnings Undervalued Opportunities

Advertising

Holdings Magnite and Stagwell offer double-digit free cash flow yields and attractive growth prospects, both positioned to benefit from a pickup in advertising spend. Weakness in spending, particularly in Magnite's CTV vertical, appeared midsummer and persisted, but spending effects should reverse with upcoming political spending cycle.

CTV Political Spending Recovery Growth

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 17, 2025	Fund Letters	Choice Equities Capital Management	GENI	Genius Sports Limited	Communication Services	Interactive Media & Services	Bull	NYSE	Data Rights, digital media, duopoly, EBITDA Margin Expansion, Gaming, growth, Rule of 40, SaaS, Sports betting, Sports Technology	Login
Jul 17, 2025	Fund Letters	Mitchell Scott	GENI	Genius Sports Limited	Communication Services	Interactive Media & Services	Bull	NYSE	Betting, Data, growth, Margins, valuation	Login
Jul 17, 2025	Fund Letters	Choice Equities Capital Management	MGNI	Magnite, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	Ad Tech, Connected tv, CTV, digital advertising, DOJ Antitrust, market share gains, programmatic advertising, Streaming, Supply Side Platform	Login
Jul 17, 2025	Fund Letters	Mitchell Scott	MGNI	Magnite, Inc.	Communication Services	Advertising	Bull	NASDAQ	advertising, Budgets, CTV, marketshare, Regulation	Login
Jul 17, 2025	Fund Letters	Mitchell Scott	MOD	Modine Manufacturing Company	Consumer Discretionary	Building Products	Bull	NYSE	Cooling, growth, Margins, transformation, valuation	Login
Jul 17, 2025	Fund Letters	Choice Equities Capital Management	MOD	Modine Manufacturing Company	Industrials	Industrial Machinery	Bull	NYSE	Climate Solutions, Danaher Business System, data center cooling, Industrial Transformation, margin expansion, operational excellence, portfolio optimization, share repurchase, Value	Login
Oct 24, 2024	Fund Letters	Choice Equities Capital Management	HAIN	Hain Celestial Group Inc.	Consumer Staples	Packaged Foods & Meats	Bull	NASDAQ	consumer staples, cost savings, Free Cash Flow, margin expansion, Organic Foods, Portfolio simplification, turnaround, Value	Login
Oct 24, 2024	Fund Letters	Choice Equities Capital Management	CZR	Caesars Entertainment Inc.	Consumer Discretionary	Casinos & Gaming	Bull	NASDAQ	Casinos, digital growth, entertainment, Gaming, iGaming, Las Vegas, Leisure Travel, Sports betting, Value	Login
Oct 24, 2024	Fund Letters	Choice Equities Capital Management	GENI	Genius Sports Limited	Communication Services	Interactive Media & Services	Bull	NYSE	Data Rights, Exclusive Partnerships, Gaming Infrastructure, growth, NFL, Premier League, Sports betting, technology	Login
Jul 29, 2024	Fund Letters	Choice Equities Capital Management	MGNI	Magnite, Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	Ad Tech, AVOD, Connected tv, CTV, digital advertising, Media Technology, Netflix, programmatic advertising, Streaming, Supply Side Platform	Login
Apr 25, 2024	Fund Letters	Choice Equities Capital Management	CROX	Crocs Inc.	Consumer Discretionary	Footwear	Bull	NASDAQ	Brand Marketing, Consumer Discretionary, Distribution, Footwear, inventory management, Leadership Change, Outlet Stores, turnaround, Value	Login
Apr 25, 2024	Fund Letters	Choice Equities Capital Management	PAR	Par Technology Corporation	Information Technology	Application Software	Bull	NYSE	Acquisitions, ARR, consolidation, international expansion, Loyalty Platform, Point of Sale, Restaurant technology, SaaS, Software, Value	Login
Apr 25, 2024	Fund Letters	Choice Equities Capital Management	HEES	H&E Equipment Services Inc.	Industrials	Trading Companies & Distributors	Bull	NASDAQ	consolidation, construction, Equipment Rental, IIJA, Industrials, infrastructure, multiple expansion, Pricing power, Sun Belt, Value	Login
Apr 25, 2024	Fund Letters	Choice Equities Capital Management	SHAK	Shake Shack Inc.	Consumer Discretionary	Restaurants	Bull	NYSE	Consumer Discretionary, Fast casual, growth, Kiosks, Leadership Change, margin expansion, Professionalization, Restaurants, supply chain, technology	Login
Jan 22, 2024	Fund Letters	Choice Equities Capital Management	BXC	Bluelinx Holdings, Inc.	Materials	Building Products	Bull	NYSE	balance sheet, Building Products, Distributor, EBITDA, Engineered Wood, Housing, Lumber, margin expansion, Millwork, Share Buybacks, Specialty Products, turnaround	Login
Jan 22, 2024	Fund Letters	Choice Equities Capital Management	IPAR	Par Technology Corporation	Information Technology	Application Software	Bull	NYSE	Annual Recurring Revenue, ARR, Burger King, divestiture, Government Defense, growth, Hardware, Point of Sale, POS, QSR, Quick Service Restaurant, Restaurant technology, SaaS, Software	Login
Oct 31, 2023	Fund Letters	Choice Equities Capital Management	SHAK	Shake Shack, Inc.	Consumer Discretionary	Restaurants	Bull	NYSE	Brand, Fast casual, Kiosks, margin expansion, Restaurants, store expansion, technology, turnaround	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jul 17, 2025

Fund Letters

Choice Equities Capital Management

GENI

Genius Sports Limited

Communication Services

Interactive Media & Services

Bull

NYSE

Data Rights, digital media, duopoly, EBITDA Margin Expansion, Gaming, growth, Rule of 40, SaaS, Sports betting, Sports Technology

Jul 17, 2025

Fund Letters

Mitchell Scott

GENI

Genius Sports Limited

Communication Services

Interactive Media & Services

Bull

NYSE

Betting, Data, growth, Margins, valuation

Jul 17, 2025

Fund Letters

Choice Equities Capital Management

MGNI

Magnite, Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

Ad Tech, Connected tv, CTV, digital advertising, DOJ Antitrust, market share gains, programmatic advertising, Streaming, Supply Side Platform

Jul 17, 2025

Fund Letters

Mitchell Scott

MGNI

Magnite, Inc.

Communication Services

Advertising

Bull

NASDAQ

advertising, Budgets, CTV, marketshare, Regulation

Jul 17, 2025

Fund Letters

Mitchell Scott

MOD

Modine Manufacturing Company

Consumer Discretionary

Building Products

Bull

NYSE

Cooling, growth, Margins, transformation, valuation

Jul 17, 2025

Fund Letters

Choice Equities Capital Management

MOD

Modine Manufacturing Company

Industrials

Industrial Machinery

Bull

NYSE

Climate Solutions, Danaher Business System, data center cooling, Industrial Transformation, margin expansion, operational excellence, portfolio optimization, share repurchase, Value

Oct 24, 2024

Fund Letters

Choice Equities Capital Management

HAIN

Hain Celestial Group Inc.

Consumer Staples

Packaged Foods & Meats

Bull

NASDAQ

consumer staples, cost savings, Free Cash Flow, margin expansion, Organic Foods, Portfolio simplification, turnaround, Value

Oct 24, 2024

Fund Letters

Choice Equities Capital Management

CZR

Caesars Entertainment Inc.

Consumer Discretionary

Casinos & Gaming

Bull

NASDAQ

Casinos, digital growth, entertainment, Gaming, iGaming, Las Vegas, Leisure Travel, Sports betting, Value

Oct 24, 2024

Fund Letters

Choice Equities Capital Management

GENI

Genius Sports Limited

Communication Services

Interactive Media & Services

Bull

NYSE

Data Rights, Exclusive Partnerships, Gaming Infrastructure, growth, NFL, Premier League, Sports betting, technology

Jul 29, 2024

Fund Letters

Choice Equities Capital Management

MGNI

Magnite, Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

Ad Tech, AVOD, Connected tv, CTV, digital advertising, Media Technology, Netflix, programmatic advertising, Streaming, Supply Side Platform

Apr 25, 2024

Fund Letters

Choice Equities Capital Management

CROX

Crocs Inc.

Consumer Discretionary

Footwear

Bull

NASDAQ

Brand Marketing, Consumer Discretionary, Distribution, Footwear, inventory management, Leadership Change, Outlet Stores, turnaround, Value

Apr 25, 2024

Fund Letters

Choice Equities Capital Management

PAR

Par Technology Corporation

Information Technology

Application Software

Bull

NYSE

Acquisitions, ARR, consolidation, international expansion, Loyalty Platform, Point of Sale, Restaurant technology, SaaS, Software, Value

Apr 25, 2024

Fund Letters

Choice Equities Capital Management

HEES

H&E Equipment Services Inc.

Industrials

Trading Companies & Distributors

Bull

NASDAQ

consolidation, construction, Equipment Rental, IIJA, Industrials, infrastructure, multiple expansion, Pricing power, Sun Belt, Value

Apr 25, 2024

Fund Letters

Choice Equities Capital Management

SHAK

Shake Shack Inc.

Consumer Discretionary

Restaurants

Bull

NYSE

Consumer Discretionary, Fast casual, growth, Kiosks, Leadership Change, margin expansion, Professionalization, Restaurants, supply chain, technology

Jan 22, 2024

Fund Letters

Choice Equities Capital Management

BXC

Bluelinx Holdings, Inc.

Materials

Building Products

Bull

NYSE

balance sheet, Building Products, Distributor, EBITDA, Engineered Wood, Housing, Lumber, margin expansion, Millwork, Share Buybacks, Specialty Products, turnaround

Jan 22, 2024

Fund Letters

Choice Equities Capital Management

IPAR

Par Technology Corporation

Information Technology

Application Software

Bull

NYSE

Annual Recurring Revenue, ARR, Burger King, divestiture, Government Defense, growth, Hardware, Point of Sale, POS, QSR, Quick Service Restaurant, Restaurant technology, SaaS, Software

Oct 31, 2023

Fund Letters

Choice Equities Capital Management

SHAK

Shake Shack, Inc.

Consumer Discretionary

Restaurants

Bull

NYSE

Brand, Fast casual, Kiosks, margin expansion, Restaurants, store expansion, technology, turnaround

TICKER	COMMENTARY
GENI	The digital gaming rights provider continues to execute as expected with several favorable developments recently occurring. In June, the NFL re-upped and extended its data rights deal with GENI to 2029, well in advance of the 2027 expiration date of the previously existing agreement. Genius also recently secured an exclusive data rights deal with the NCAA through 2032. Together, these data rights deals, as well as the lion's share of data rights deals which were renewed last year, give the company a great deal of visibility into its data costs going forward, paving the way for future incremental revenues to flow through to the bottom line at very attractive incremental margins going forward. With sports-betting now legal in Brazil, legalization in a handful of meaningful U.S. states still to come and a trend that favors continued growth in in-game betting where the company generates a higher take rate on bets placed, incremental revenue opportunities should continue to follow at a healthy pace in a market that itself should continue to grow at a low-double digit rate. Ad revenues are also quickly emerging as meaningful source of new revenues, with Genius's nascent FanHub engine producing another attractive revenue stream for advertisers seeking to tie ads directly to specific players. Recently the company has stated it is now targeting a 30% EBITDA margin by 2030, a step higher from the prior target of 25%. With strong incremental margins and attractive topline growth likely near 20% for the next several years, the company looks set to grow EBITDA at a ~30%+ CAGR for the next several years. This financial algorithm will sustain the company solidly into the Rule of 40 club (which sums EBITDA margins and revenue growth) for the foreseeable future where most peers trade at 6x sales or better. Today trading at less than 4x sales and at an increasingly wide valuation disparity relative to larger peer Sportsradar Group (SRAD), it stands to reason strong revenues and incremental profits and greater investor understanding of this company and its duopolistic industry structure will continue to provide tailwinds to shares in time.
MGNI	Market volatility and economic concerns were the primary forces pushing MGNI to trade in such a wide range during the first half of the year, as markets briefly priced severe cuts to ad budgets into the stock. As economic storm clouds lifted, evidence began to emerge that ad budgets largely remain intact relative to prior expectations, and though the company suspended its guidance for the second half of the year, it seems its prior views will likely be sustained. Aside from positive channel checks, encouraging peer reports and general news of resilient ad spending, perhaps more interestingly, these checks suggest that advertiser television ad budgets now favor CTV (i.e., streaming) over traditional linear TV, a shift in advertiser TV budgets long underway that has reached the critical equilibrium mark. Netflix is of course some part of this, as their advertising efforts continue to gain scale, but the tide is also turning more broadly. The company's recent earnings call also produced some noteworthy data points, as management highlighted the benefits of potential market share gains should the DOJ force any remedies on Google as a result of the ad tech trial ruling issued in April. The remedies trial remains set for September 22nd. Developments there will likely be contested and remain somewhat unpredictable. A second ad tech trial will soon start in August in Texas, which is also likely to have some ramifications on potential outcomes. Suffice it say, court filings and testimony transcripts make for interesting reading, and we are tracking developments closely. For now, and until further news breaks, it is encouraging to see the company continuing to announce a steady stream of new customer wins, recently adding Amazon, Pinterest, Redfin and Paramount Australia to a customer list that has been growing impressively lately.
MOD	Since our introduction of this new holding last quarter, Modine Manufacturing Company (MOD) has continued to execute effectively under CEO Neil Brinker's leadership, leveraging the Danaher Business System (DBS) playbook to drive robust performance. Despite offering a wider than expected initial guidance range for FY 2026 due to difficult to forecast macro conditions at the time of reporting last quarter, the company still expects to sustain attractive topline growth which can be leveraged into mid-teens earnings growth in coming years. These financial results should be supported in part by durable demand for its data center cooling products in its Climate Solutions segment as well as sizeable margin enhancements in its slower growing Performance Technology segment. The transformation, now four years in under CEO Brinker, is off to a promising start as the company continues to move its mix of business units into higher return, more attractive end markets. Thus far, management has proven adept at targeting smart tuck-in acquisitions in high growth end markets where it can leverage its climate control technological expertise while also pruning its portfolio of businesses by parting ways with business units serving less attractive end markets. Some parallels can be drawn by examining the long-term success of companies like Roper Technologies, Inc. (ROP), given a shared philosophical view in how the application of a lean and Kaizen focused operational playbook can be supplemented with smart acquisitions informed by the 80/20 philosophy to shape an attractive portfolio of businesses. The $100M share repurchase program, initiated last quarter, should enable the company to capitalize on the stock's current trading multiple of ~16x NTM P/E, a valuation which should prove attractive given the long-horizon growth opportunity in front of the company.
BNED	Today, the top six holdings are consistent with those highlighted in the first quarter and include Barnes & Noble Education, Inc. (BNED), CELH, GENI, MGNI, MOD and Par Technology Corporation (PAR).
CELH	Shares of Celsius Holdings, Inc. (CELH) and contributions from VIX options were the other most impactful drivers of return in the quarter, though several smaller positions together made a meaningful contribution in aggregate as well.
PAR	Today, the top six holdings are consistent with those highlighted in the first quarter and include Barnes & Noble Education, Inc. (BNED), CELH, GENI, MGNI, MOD and Par Technology Corporation (PAR).
SRAD	Today trading at less than 4x sales and at an increasingly wide valuation disparity relative to larger peer Sportsradar Group (SRAD), it stands to reason strong revenues and incremental profits and greater investor understanding of this company and its duopolistic industry structure will continue to provide tailwinds to shares in time.
ROP	Some parallels can be drawn by examining the long-term success of companies like Roper Technologies, Inc. (ROP), given a shared philosophical view in how the application of a lean and Kaizen focused operational playbook can be supplemented with smart acquisitions informed by the 80/20 philosophy to shape an attractive portfolio of businesses.

TICKER

COMMENTARY

GENI

The digital gaming rights provider continues to execute as expected with several favorable developments recently occurring. In June, the NFL re-upped and extended its data rights deal with GENI to 2029, well in advance of the 2027 expiration date of the previously existing agreement. Genius also recently secured an exclusive data rights deal with the NCAA through 2032. Together, these data rights deals, as well as the lion's share of data rights deals which were renewed last year, give the company a great deal of visibility into its data costs going forward, paving the way for future incremental revenues to flow through to the bottom line at very attractive incremental margins going forward. With sports-betting now legal in Brazil, legalization in a handful of meaningful U.S. states still to come and a trend that favors continued growth in in-game betting where the company generates a higher take rate on bets placed, incremental revenue opportunities should continue to follow at a healthy pace in a market that itself should continue to grow at a low-double digit rate. Ad revenues are also quickly emerging as meaningful source of new revenues, with Genius's nascent FanHub engine producing another attractive revenue stream for advertisers seeking to tie ads directly to specific players. Recently the company has stated it is now targeting a 30% EBITDA margin by 2030, a step higher from the prior target of 25%. With strong incremental margins and attractive topline growth likely near 20% for the next several years, the company looks set to grow EBITDA at a ~30%+ CAGR for the next several years. This financial algorithm will sustain the company solidly into the Rule of 40 club (which sums EBITDA margins and revenue growth) for the foreseeable future where most peers trade at 6x sales or better. Today trading at less than 4x sales and at an increasingly wide valuation disparity relative to larger peer Sportsradar Group (SRAD), it stands to reason strong revenues and incremental profits and greater investor understanding of this company and its duopolistic industry structure will continue to provide tailwinds to shares in time.

MGNI

Market volatility and economic concerns were the primary forces pushing MGNI to trade in such a wide range during the first half of the year, as markets briefly priced severe cuts to ad budgets into the stock. As economic storm clouds lifted, evidence began to emerge that ad budgets largely remain intact relative to prior expectations, and though the company suspended its guidance for the second half of the year, it seems its prior views will likely be sustained. Aside from positive channel checks, encouraging peer reports and general news of resilient ad spending, perhaps more interestingly, these checks suggest that advertiser television ad budgets now favor CTV (i.e., streaming) over traditional linear TV, a shift in advertiser TV budgets long underway that has reached the critical equilibrium mark. Netflix is of course some part of this, as their advertising efforts continue to gain scale, but the tide is also turning more broadly. The company's recent earnings call also produced some noteworthy data points, as management highlighted the benefits of potential market share gains should the DOJ force any remedies on Google as a result of the ad tech trial ruling issued in April. The remedies trial remains set for September 22nd. Developments there will likely be contested and remain somewhat unpredictable. A second ad tech trial will soon start in August in Texas, which is also likely to have some ramifications on potential outcomes. Suffice it say, court filings and testimony transcripts make for interesting reading, and we are tracking developments closely. For now, and until further news breaks, it is encouraging to see the company continuing to announce a steady stream of new customer wins, recently adding Amazon, Pinterest, Redfin and Paramount Australia to a customer list that has been growing impressively lately.

MOD

Since our introduction of this new holding last quarter, Modine Manufacturing Company (MOD) has continued to execute effectively under CEO Neil Brinker's leadership, leveraging the Danaher Business System (DBS) playbook to drive robust performance. Despite offering a wider than expected initial guidance range for FY 2026 due to difficult to forecast macro conditions at the time of reporting last quarter, the company still expects to sustain attractive topline growth which can be leveraged into mid-teens earnings growth in coming years. These financial results should be supported in part by durable demand for its data center cooling products in its Climate Solutions segment as well as sizeable margin enhancements in its slower growing Performance Technology segment. The transformation, now four years in under CEO Brinker, is off to a promising start as the company continues to move its mix of business units into higher return, more attractive end markets. Thus far, management has proven adept at targeting smart tuck-in acquisitions in high growth end markets where it can leverage its climate control technological expertise while also pruning its portfolio of businesses by parting ways with business units serving less attractive end markets. Some parallels can be drawn by examining the long-term success of companies like Roper Technologies, Inc. (ROP), given a shared philosophical view in how the application of a lean and Kaizen focused operational playbook can be supplemented with smart acquisitions informed by the 80/20 philosophy to shape an attractive portfolio of businesses. The $100M share repurchase program, initiated last quarter, should enable the company to capitalize on the stock's current trading multiple of ~16x NTM P/E, a valuation which should prove attractive given the long-horizon growth opportunity in front of the company.

BNED

Today, the top six holdings are consistent with those highlighted in the first quarter and include Barnes & Noble Education, Inc. (BNED), CELH, GENI, MGNI, MOD and Par Technology Corporation (PAR).

CELH

Shares of Celsius Holdings, Inc. (CELH) and contributions from VIX options were the other most impactful drivers of return in the quarter, though several smaller positions together made a meaningful contribution in aggregate as well.

PAR

Today, the top six holdings are consistent with those highlighted in the first quarter and include Barnes & Noble Education, Inc. (BNED), CELH, GENI, MGNI, MOD and Par Technology Corporation (PAR).

SRAD

Today trading at less than 4x sales and at an increasingly wide valuation disparity relative to larger peer Sportsradar Group (SRAD), it stands to reason strong revenues and incremental profits and greater investor understanding of this company and its duopolistic industry structure will continue to provide tailwinds to shares in time.

ROP

Some parallels can be drawn by examining the long-term success of companies like Roper Technologies, Inc. (ROP), given a shared philosophical view in how the application of a lean and Kaizen focused operational playbook can be supplemented with smart acquisitions informed by the 80/20 philosophy to shape an attractive portfolio of businesses.

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