Investment Pitches

Pitch Summary:
MSA Safety is the dominant provider of fire fighter safety equipment, gas/flame detection equipment, and industrial protective products. Growth is driven by technological advancements and updated regulatory standards that catalyze multi-year replacement cycles. The business is conservatively managed, has low balance sheet leverage, and generates fantastic returns on invested capital.

BSD Analysis:
MSA Safety sells protection equipment where compliance and reliability matter more than price. Regulatory standards and safety requirements create enduring demand. Customers don’t switch suppliers lightly when lives and liability are involved. Growth is steady, not flashy, but visibility is strong. Investors overlook safety equipment as niche industrial. Yet industrial incidents, regulation, and automation all increase demand. Margins benefit from brand trust and certification barriers. Recurring replacement cycles add stability. This is safety infrastructure that compounds quietly over time.

Pitch Summary:
A.O. Smith designs and manufactures water heaters, boilers, and water treatment products. Around 80-85% of water heater demand is from replacement units, providing for a more consistent demand profile. A.O. Smith is the market share leader, operating within a rational oligopoly that drives high returns on invested capital. The company is well positioned to benefit from upcoming energy regulations as well as improved capital deployment from new CEO Steve Shafer.

BSD Analysis:
A. O. Smith dominates water heating and water treatment with brand trust built over decades. Replacement demand anchors volume even in weak housing markets. Pricing power exists because failure is not an option for customers. International exposure, especially in Asia, extends the growth runway. Investors dismiss the business as old-economy manufacturing. Yet margins remain resilient through cycles. Product innovation focuses on efficiency, not gimmicks. Cash flow supports steady capital returns. This is industrial durability hiding in plain sight.

Pitch Summary:
ServiceTitan is the dominant provider of software to residential trade contractors. Its software helps run all aspects of their business and the company boasts high retention rates and strong recurring revenue. We see a long runway of growth ahead as penetration among contractors has lagged other industries. Investor caution regarding near-term growth rates provided us with a buying opportunity.

BSD Analysis:
ServiceTitan provides operating software for trade contractors who run real businesses, not side hustles. Once installed, the platform becomes the system of record for scheduling, billing, and customer management. Growth remains strong because penetration is still low. Contractors value ROI over software aesthetics. Investors worry about valuation more than adoption momentum. Pricing power improves as features expand and workflows deepen. Vertical focus creates stickiness generic SaaS can’t replicate. Margins scale as customer cohorts mature. This is vertical software built for blue-collar cash flow.

Pitch Summary:
Bio-Techne is a leader in the life sciences research market with a broad portfolio of products that are used to enable discoveries of new drugs, therapeutics, and diagnostics. Around 80% of the business is recurring revenues. We are encouraged by the new CEO’s strategy to leverage the core business and expand the company’s leadership position in protein research. Consternation surrounding the health of customer research spending gave us the opportunity to buy the stock at a discount to our estimate of intrinsic value.

BSD Analysis:
Bio-Techne sells mission-critical reagents and tools embedded deep in life sciences workflows. Biotech funding cycles create demand pauses, not customer churn. Validation and reproducibility requirements create high switching costs. Margins reflect specialization, not scale hype. Investors confuse destocking with decay. As research funding normalizes, volume snaps back quickly. The installed base quietly compounds consumables revenue. Operating leverage cuts both ways. This is picks-and-shovels science tested by patience.

Pitch Summary:
Ross Stores reported very strong sales results in the quarter and management offered an optimistic outlook for the rest of the year. The company is benefiting from its strategy to offer even better value, by further emphasizing familiar brands at low prices. Sales are up across all categories and more consumers are visiting Ross stores.

BSD Analysis:
Ross thrives when consumers feel squeezed, which makes it perversely resilient in tough macro environments. Its off-price model benefits from vendor excess inventory and price-conscious shoppers. Execution matters more than fashion trends here, and Ross executes relentlessly. Inventory discipline is a competitive advantage, not an accounting detail. Margins are protected by fast turns and low operating costs. E-commerce hasn’t broken off-price retail — it’s reinforced it. Growth is steady, not exciting, but returns are excellent. This is retail without drama. Ross compounds because value never goes out of style.

Pitch Summary:
AAON provides custom and semi-custom rooftop HVAC systems with strong exposure to hospitals, education and data centers. Near-term results were pressured by EPA-mandated refrigerant changes and an ERP rollout that disrupted operations in 2025. The BASX acquisition positions AAON as a major beneficiary of accelerating data center cooling demand, which we believe can scale to over $1 billion in revenue. With operational normalization and structural tailwinds, we expect 2026 to mark a recovery. We estimate intrinsic value at $114.

BSD Analysis:
AAON is a cult favorite among HVAC engineers because its equipment works and keeps working. Custom and semi-custom rooftop units give it pricing power competitors struggle to match. Replacement demand and regulatory efficiency standards support long-term growth. AAON doesn’t chase volume — it protects margins. The manufacturing model is disciplined and vertically integrated. Cyclicality exists, but backlog quality is high. This business wins by being better, not cheaper. Investors often underestimate how sticky engineering specifications are. AAON is a quiet industrial compounder with teeth.

Pitch Summary:
We initiated a position in GitLab, a DevSecOps platform that enables developers to plan, build, deploy and monitor software securely. GitLab operates in an attractive duopoly with Microsoft’s GitHub, growing at a double-digit rate with mid-teens operating margins and a pristine balance sheet. Market concerns that AI-driven “vibe coding” tools will displace GitLab are misplaced; we believe easier software creation will increase total code and demand for lifecycle tools. We have confidence in the recently appointed CEO, Bill Staples, and estimate intrinsic value at $75.

BSD Analysis:
GitLab wants to be the single DevSecOps platform instead of a sprawl of tools — an ambitious and rational vision. Developers love the product, but enterprise sales cycles are long and unforgiving. Growth has slowed enough that profitability now matters. Competition from GitHub and point solutions is relentless. The bull case hinges on consolidation: fewer tools, deeper spend. GitLab’s open-core model gives it flexibility, but also complexity in monetization. Operating leverage exists if sales efficiency improves. This is a platform with real technical merit. The stock needs execution, not vision.

Pitch Summary:
Viavi Solutions operates a sticky test-and-measurement business with substantial switching costs. Growth is driven by strategic M&A, highlighted by DOJ-mandated divestitures from Keysight following its Spirent acquisition. These assets materially strengthen Viavi’s position in high-speed Ethernet, network security and RF testing. We believe the market underappreciates Viavi’s expanding opportunity in data centers and AI-driven network complexity. We estimate intrinsic value at $30.

BSD Analysis:
Viavi sits deep in the testing and assurance layer of global communications networks — a place investors rarely get excited about, but operators can’t live without. Its tools are essential for building, maintaining, and validating fiber, 5G, and cloud infrastructure. Network complexity only increases from here, which quietly expands Viavi’s relevance. End-market spending is lumpy, creating headline volatility. But once networks are built, they must be tested forever. Margins improve when volumes normalize because IP content is high. Viavi isn’t flashy tech — it’s the referee. When networks fail, Viavi gets called. That’s a good business.

Pitch Summary:
Amplitude has undergone a significant turnaround following the arrival of CFO Andrew Casey, refocusing the company on profitable growth and free cash flow. The platform helps enterprises analyze user engagement, retention and monetization across web and mobile products. The business features highly recurring revenue, strong gross margins and extremely high switching costs, as migrating analytics systems is disruptive and costly. The balance sheet is pristine with no debt and nearly $270 million in cash. After being overlooked post-IPO, we believe the valuation is compelling and estimate intrinsic value at $21.

BSD Analysis:
Amplitude sells analytics to product teams that actually want to understand user behavior, not just report vanity metrics. Its platform is powerful, but the problem is budget scrutiny — analytics is easy to delay when growth slows. Customer love is high, but monetization and expansion have lagged expectations. Competition from bundled tools and hyperscalers is intense. The upside case rests on Amplitude proving it can turn usage into durable, profitable revenue. Cost discipline is improving, but confidence still needs rebuilding. This is no longer a hypergrowth SaaS — it’s a credibility rebuild. If product-led growth reasserts itself, upside exists. Until then, this is a “show me” story.

Pitch Summary:
Vericel specializes in cartilage repair and burn care, with a differentiated autologous cartilage product for younger patients with knee defects. The procedure delivers superior outcomes versus alternatives by regenerating full-thickness cartilage using patients’ own cells. Adoption is growing among sports medicine and orthopedic physicians, while burn care products continue to perform well. Sales have grown at a mid-teens rate over five years and should accelerate modestly following recent FDA approval of a next-generation product. The company recently turned profitable, with margin expansion ahead. We estimate intrinsic value at $50.

BSD Analysis:
Vericel operates in a rare medtech sweet spot where clinical outcomes, reimbursement, and surgeon behavior all line up. Its cell-therapy products address cartilage repair and burn treatment — areas where alternatives are limited and outcomes matter. Adoption is driven by orthopedic surgeons who don’t switch lightly once they see results. Revenue growth is strong because procedure volumes, not pricing gimmicks, do the work. Margins are expanding as scale improves and manufacturing utilization rises. This is not a binary biotech story — products are commercial and demand is real. Execution matters more than pipeline hype. The market still underestimates how sticky surgeon-driven adoption can be. Vericel is a niche compounder hiding inside regenerative medicine.

Pitch Summary:
Mirion Technologies is a global leader in radiation detection, measurement, and monitoring solutions serving nuclear and medical end markets. The company benefits from secular growth in nuclear energy and cancer care, with a recurring, consumption-based revenue model and EBITDA margins around 25%, with potential to expand to 30%. Mirion has a presence in 95% of nuclear power plants globally and holds over 60% market share in ionizing radiation detection within a tightly regulated market. Maintenance and upgrade cycles drive repeat revenue, while backlog growth and digital initiatives support durability. We estimate intrinsic value at $30.

BSD Analysis:
Mirion operates in radiation detection and measurement, a niche where reliability beats scale. Nuclear power, defense, and medical applications provide diversified demand. Regulatory and safety requirements create high switching costs. Growth is steady, not explosive, but visibility is strong. Investors overlook Mirion due to its specialized focus. Yet nuclear resurgence and security concerns support long-term relevance. Margins improve as recurring services grow. Capital intensity is manageable relative to moat strength. This is safety infrastructure priced like a gadget maker.

Pitch Summary:
After its June quarter report and strong outlook, Ciena was widely viewed as a prime AI capital spending beneficiary. With a market capitalization exceeding $30 billion and trading at roughly 44x 2026 earnings, we decided to exit the position. While fundamentals remain exceptional, the company has outgrown the small-cap universe, and we believe more attractive opportunities exist elsewhere. We have owned CIEN in various sizes since 2010.

BSD Analysis:
Ciena supplies optical networking equipment that sits at the heart of global data transport. Traffic growth doesn’t move in straight lines, but it never reverses. Telecom spending pauses delay orders, not necessity. Technology leadership matters as networks chase higher speeds and efficiency. Investors trade Ciena like a commodity hardware name. That misses how deeply embedded its systems become once deployed. Margins improve with software and services mix. AI-driven traffic increases long-term demand for optical upgrades. This is connectivity infrastructure hiding behind cyclical optics.

Pitch Summary:
We decided to exit our position in Cogent Communications. Our thesis hinged on the company cutting its dividend and reestablishing EBITDA growth to reverse rising leverage following the T-Mobile asset acquisition. Instead, the company was forced to suspend its dividend temporarily while focusing on EBITDA. Without the dividend acting as a valuation anchor and with elevated leverage, the stock became highly sensitive to EBITDA multiple assumptions, creating extreme equity volatility. We chose to step back until leverage improves.

BSD Analysis:
Cogent sells bandwidth, not stories, and demand for bandwidth never stops rising. Its focus on high-capacity, low-cost internet keeps utilization growing over time. Pricing pressure exists, but scale economics matter more. Investors fixate on capex and leverage. Yet network assets age better than people think as traffic grows. Customer churn remains manageable due to price-performance value. AI and cloud workloads are bandwidth-hungry by design. Cash flow improves as utilization rises. This is digital infrastructure paid by physics.

Pitch Summary:
We sold our investment in Western Alliance upon finding the company was exposed to the First Brands bankruptcy via a note-on-note lending line to Jefferies/Point Bonita Capital. Our worst-case scenario analysis led us to conclude that there was a small but real probability of needing to raise capital. Further concerns emerged after Zions Bancorporation disclosed charge-offs tied to apparent borrower misrepresentation connected to the same borrower. WAL disclosed a revolving credit facility with Cantor Group V, LLC, linked to the same borrower, and filed a lawsuit alleging borrower fraud for failing to provide first-position collateral. While management believes existing collateral sufficiently covers the obligation, credit fears could remain an overhang for an extended period. Despite recent weakness, this was a very successful investment for us, initiated after the Silicon Valley Bank crisis.

BSD Analysis:
Western Alliance is a high-performing regional bank that got punished for sins it didn’t commit. Deposit flight fears hit sentiment harder than fundamentals. Asset quality and capital levels remain solid relative to peers. Higher rates improved net interest income while credit stayed contained. Investors still price lingering systemic risk aggressively. Loan growth is selective, not reckless. Management credibility matters enormously in regional banking, and Western Alliance earned it. This is balance-sheet math, not narrative banking. Fear fades faster than fundamentals break.

Pitch Summary:
Workday is a market-leading human resources and financial management software company. Over the last couple years, the company has transitioned to a new leadership team, which is focused on both sustaining double-digit revenue growth and expanding margins. To sustain double digit growth, Workday has expanded its product suite to address underpenetrated customer groups and is investing in commercializing AI agents, which should be additive to revenue growth. We also believe margins have the potential to meaningfully expand under the new leadership team.

BSD Analysis:
Workday sits at the core of HR and financial operations where companies absolutely do not experiment lightly. Once deployed, switching systems is painful, risky, and politically toxic inside large organizations. Growth has moderated, but revenue quality has improved as subscriptions and renewals dominate the mix. Expansion comes from adding modules, not chasing new logos. Investors lump Workday in with generic SaaS and miss how compliance, payroll, and finance create real lock-in. AI features monetize best when layered into workflows customers already trust. Margins expand steadily as scale absorbs platform costs. Public sector and large enterprise penetration extend durability. This is back-office gravity, not growth theater.

Pitch Summary:
Fiserv reported disappointing results with revenue declining in its Financial Solutions segment. Furthermore, new management believes the company requires additional investment across its businesses in order to improve its product suite. As a result, we lost conviction in the company’s durable growth profile and sold our shares.

BSD Analysis:
Fiserv is fintech infrastructure that doesn’t get headlines because it doesn’t break. Its platforms sit underneath banks, merchants, and payment flows that cannot afford downtime. Clover gives Fiserv real SMB leverage, not just legacy processing fees. Switching costs are enormous once institutions are integrated. Growth is steady, margins are improving, and cash flow is real. Competition is intense, but scale and breadth still matter. Management prioritizes returns over hype. This is not a moonshot fintech — it’s financial plumbing. Quietly powerful, quietly compounding.

Pitch Summary:
In industrials, HD Hyundai Electric was up nearly 30% for the quarter, capitalizing on increased demand to expand and upgrade power infrastructure. The company will complete the construction of a new Korean power distribution equipment plant by the end of 2025. Strong order momentum reflects grid investment and electrification trends.

BSD Analysis:
HD Hyundai Electric sits directly in the bottleneck of global grid expansion and electrification. Demand for transformers and high-voltage equipment is being pulled forward by renewables, data centers, and aging infrastructure. Capacity, not demand, is the binding constraint, which shifts pricing power to suppliers. Investors underestimate how long grid upgrades take once started. Backlog visibility is unusually strong for industrial equipment. Execution risk exists, but strategic relevance dominates the story. Margins improve when delivery schedules stretch. This is infrastructure catch-up, not cyclical machinery. When grids fail, spending follows.

Pitch Summary:
United Therapeutics climbed on record third quarter 2025 results, good uptake on Tyvaso regardless of generic competition and promising Tyvaso clinical trial results for idiopathic pulmonary fibrosis. UTHR also conducted the first successful UKidney transplant, generating excitement about its organ manufacturing firm. These achievements underscored both near-term execution and long-term optionality. Investor sentiment improved as growth proved resilient.

BSD Analysis:
United Therapeutics is a biotech that behaves like an industrial company, which is exactly why it works. Its pulmonary hypertension franchise throws off enormous, durable cash flow. Pipeline investments are self-funded, not dependent on capital markets. Investors worry about concentration risk, but lifecycle extensions and new indications mitigate it. Management prioritizes capital returns alongside R&D, a rare combination in biotech. The organ manufacturing ambition adds long-dated optionality without pressuring the core business. Execution has been consistently conservative and effective. This is biotech without existential drama. Cash flow buys patience.

Pitch Summary:
Ireland-based Jazz Pharmaceuticals announced record quarterly revenues driven by Epidiolex and Xywav. The company also received FDA approvals of two drugs and reported positive Phase 3 trial results for its potential blockbuster HER2+ cancer treatment Ziihera. These developments strengthened confidence in Jazz’s growth outlook. Management highlighted a robust pipeline supporting future revenue expansion.

BSD Analysis:
Jazz is a specialty pharma company built on cash flow discipline rather than binary science bets. Its core franchises generate durable free cash flow that funds pipeline expansion internally. Acquisitions broaden exposure without introducing existential balance-sheet risk. Investors fixate on patent timelines and ignore commercial execution quality. Rare disease and oncology exposure supports pricing resilience. Incremental pipeline wins matter more than blockbuster dreams. Operating leverage improves as integration settles. Jazz doesn’t need hype to work. This is pharma compounding through boring competence.

Pitch Summary:
French IT/consulting company Capgemini Group advanced 15% after announcing better-than-expected quarterly revenues. Demand is driven by cloud, data and AI, with a strong focus on efficiency and optimization. Clients are prioritizing productivity gains amid macro uncertainty. Improved execution supported investor confidence.

BSD Analysis:
Capgemini is an execution-first IT services firm benefiting from enterprises prioritizing modernization over moonshot experimentation. Clients turn to Capgemini when systems must actually work, not when slides look good. Demand slows with macro caution, but cost-out, cloud migration, and application rationalization create a durable floor. AI projects increasingly favor trusted integrators with delivery scale rather than boutique consultants. Investors dismiss IT services as labor-heavy and low-growth. That misses Capgemini’s move toward higher-value consulting, engineering, and managed services. Margins reflect discipline and utilization, not pricing theatrics. This is enterprise plumbing for digital transformation. Reliability beats hype when budgets tighten.