Investment Pitches

Pitch Summary:
Crown Holdings is the second largest manufacturer of aluminum beverage cans globally. We own its larger competitor, Ball Corp., in our Large Cap portfolio. Our investment case for the two companies is broadly similar. The beverage can industry is a consolidated and rational industry with high barriers to entry. The industry structure, scale, and long-term contracts with inflationary pass-throughs result in solid and stable margins, high returns on capital, and robust free cash flow. In addition, aluminum cans are taking share from other substrates, most notably plastic, as aluminum is considered a more sustainable product. This transition to aluminum is driving volume growth for Crown. Recently, demand for its products has been weak due to current macro factors. We expect growth to normalize over time.

BSD Analysis:
Vulcan Value Partners presents a bull case for Crown Holdings based on attractive industry structure and secular sustainability trends. The manager emphasizes the beverage can industry's consolidated and rational competitive dynamics with high barriers to entry, creating stable operating conditions. The investment thesis centers on the industry's structural advantages including scale benefits, long-term contracts with inflationary pass-throughs, resulting in stable margins, high returns on capital, and robust free cash flow generation. A key secular tailwind is aluminum cans gaining market share from plastic substrates driven by sustainability considerations, providing volume growth for Crown. The manager acknowledges current demand weakness due to macro factors but expects normalization over time. The similarity to their Ball Corp. investment in the Large Cap portfolio suggests confidence in the industry dynamics and Crown's competitive position as the second-largest global player in aluminum beverage cans.

Pitch Summary:
We are pleased to have purchased Starbucks in the first quarter. We have owned the company in the past, and it was a good investment for us. The company has strong brand recognition, global distribution, and outstanding retail real estate. The company generates robust free cash flow and has high returns on invested capital as well as a strong balance sheet. Starbucks has used its financial resources to strengthen its brand and enhance customer loyalty. Additionally, the company has continued to see attractive returns from opening new stores. Stock price volatility over the last year is likely due to management changes, disappointing short-term results, and general hesitancy about consumer spending. We believe that Starbucks' competitive position remains intact, and its value will continue to compound over our five-year plus time horizon.

BSD Analysis:
Vulcan Value Partners presents a bull case for Starbucks based on enduring competitive advantages and temporary market concerns creating an attractive entry point. The manager emphasizes the company's strong brand recognition, global distribution network, and premium retail real estate locations as sustainable competitive moats. The investment thesis highlights Starbucks' robust free cash flow generation, high returns on invested capital, and strong balance sheet providing financial flexibility for brand investment and customer loyalty enhancement. The firm views continued attractive returns from new store openings as evidence of the business model's durability. Importantly, the manager attributes recent stock price volatility to temporary factors including management changes, short-term operational disappointments, and broader consumer spending concerns rather than fundamental competitive deterioration. With their five-year-plus investment horizon, Vulcan expects the company's intrinsic value to compound as these temporary headwinds subside.

Pitch Summary:
In our last letter, we issued what was essentially an ultimatum. For reference we wrote, "Calumet's current $15 stock price is nothing short of lunacy as long as management can competently execute the rest of the playbook and, in doing so, rehabilitate the reputation of a C-suite and BoD suffering from several unforced errors and related credibility issues. The 64k dollar question at this point is will the center hold?" To that last question, the answer was no – and we exited the equity early in the quarter in the low 20s, though we still maintain some exposure via call options. On paper, we saw a clear line of sight to well over $30/share in near-term intrinsic value, but realizing that upside was always going to hinge on management execution – not just in operations, but in clearly communicating a transparent and compelling thesis to the investment community. Post-DOE loan, even after direct coaching from shareholders, management still failed to articulate both the thesis and the underlying facts that would have made it obvious normalized earnings were well above where the street had penciled them in. As just one example of our exasperation, management's inability to simply and credibly detail that contracted offtake agreements for SAF are at a $1.50–$2/gal premium to renewable diesel – like peers at Darling Ingredients – remains baffling. Remarkably, the core points of our thesis proved correct: non-core asset sales are complete, and the much-maligned ATM is out of the picture, never having been drawn on. Yet, many who have reached out to us as they start to do the work on the name have asked, "Why can't these guys just be straight with me? What are they hiding? What am I missing here?" Our view is that they're not hiding anything; they simply don't understand what public market investors need to underwrite a position. Despite our rough words, just because public market investors don't see the value doesn't mean a strategic buyer won't. Large shareholders have constructively engaged with the company and refreshed the board, and we think the best outcome here is a sale – likely one buyer for the core business and another for MRL. Additionally, we still see a credible path to a re-rate into the upper $20s in the near term, contingent on an industry-friendly EPA setting a new RVO limit in the next month or two, which we believe would raise renewable diesel margins from $0.70/gal to over $2.00/gal almost overnight. Cash flows should rapidly snowball from there. So for those reasons and as noted above, we maintain a small position in long call options to capture any much-needed catch-up in the share price. But, for us, the opportunity cost is too high to continue to hold the equity for the long term, waiting for management to see the light or, more likely, for the firm to get sold. That mindset, of not letting sunk costs dictate future exposure, proved beneficial when FTAI Aviation ("FTAI") underwent its own bout of turmoil early in the quarter.

BSD Analysis:
Crossroads exited their equity position in Calumet Specialty Products due to management's persistent inability to effectively communicate the investment thesis to public markets, despite the fundamental story remaining intact. The fund had previously identified intrinsic value exceeding $30 per share based on the company's renewable diesel operations and contracted SAF offtake agreements at $1.50-$2/gallon premiums. While the operational thesis proved correct with completed asset sales and unused ATM facilities, management failed to articulate key value drivers like SAF pricing premiums that would justify higher normalized earnings estimates. The fund believes management simply lacks understanding of public market investor requirements rather than hiding material information. Despite exiting the equity position in the low $20s, Crossroads maintains call option exposure to capture potential upside from either a strategic sale or EPA regulatory changes that could increase renewable diesel margins from $0.70/gallon to over $2.00/gallon. The fund views the best outcome as a strategic acquisition, with board refreshment by large shareholders supporting this scenario.

Pitch Summary:
CarMax is the largest used car retailer in the United States. The company has the third largest wholesale business in the United States and a large captive finance business. We believe that CarMax's omnichannel approach is a competitive advantage that will enable the company to continue taking market share in a highly fragmented market. This strategy enables the company to generate higher and more stable levels of profit per used vehicle sold and generate solid returns on capital. A significant portion of the used car market is made up of small independent dealerships without resources to invest in digital infrastructure. Another significant portion of the market is made up of digital-only retailers, who are now focused on profitability at the expense of volume. CarMax continues to invest in its digital infrastructure which has improved its customer experience. These investments have made it easier to buy, sell, and finance vehicles. Over the last two years, management has focused on de-leveraging the company's balance sheet and right sizing the firm, which has significantly de-risked the business and positioned CarMax extremely well for when volumes normalize. We believe that the combination of a leaner cost structure and an improved competitive position will strengthen the company's prospects.

BSD Analysis:
Vulcan presents a strong bull case for CarMax based on competitive positioning and operational improvements during a challenging market cycle. The manager emphasizes CarMax's market leadership as the largest used car retailer with significant wholesale and captive finance operations. The investment thesis centers on the company's omnichannel approach providing sustainable competitive advantages in a highly fragmented market against under-resourced independent dealers and struggling digital-only competitors. The manager highlights CarMax's continued digital infrastructure investments improving customer experience across buying, selling, and financing. Critically, the firm views the recent two-year period of balance sheet deleveraging and operational right-sizing as positioning CarMax exceptionally well for volume normalization. The combination of a leaner cost structure with enhanced competitive positioning through digital capabilities should drive stronger profitability and market share gains as industry conditions improve.

Pitch Summary:
Every so often, an external shock creates a rare opening to invest in a high-quality business undergoing a value-unlocking transition, where the predictability of the end game draws us in with conviction. In this instance, a Muddy Waters short report published in January triggered just such an event, sending shares tumbling and sentiment into a tailspin. We entered into a position in the midst of this fallout. FTAI, once a hodgepodge of transportation assets under Fortress Investment Group, has now executed what we believe is one of the sharpest pivots in the industrial landscape. In the span of a couple of years, FTAI shed both its MLP structure and non-core infrastructure, emerging as a pure-play aerospace platform. Management has built the first leg of their platform around the CFM56 engine – the workhorse of global narrow-body aviation – unlocking value by treating the engine not as a monolith, but as a set of interchangeable, high-value modules. By building the largest pool of CFM56 modules and internalizing MRO, we believe FTAI has created a network effect: the more modules it owns, the more efficiently it can service, repair, and exchange engines across the industry. With OEMs looking at close to a decade of backlog, the aftermarket is expected to have a long tailwind. Additionally, the company's $4 billion Strategic Capital Initiative (SCI) is now in place, providing the dry powder to acquire aircraft and engine modules, all run through FTAI's own platform for capital-light, recurring earnings. Early estimates show that FTAI could generate over $250 million in EBITDA per $4 billion in capital deployed through the SCI. With SCI deployment, FTAI is positioned to deliver robust, uncorrelated growth – regardless of the macro backdrop. In fact, the tariff rules, as currently written, do not impact FTAI and MRO activity, as of the second week of April, has continued at the same pace as early in the year. If anything, the recent weeks' tariff actions stand to further complicate the aerospace supply chain, aiding the aftermarket players. Lastly, we are expecting FAA approval for FTAI's third (of five) PMA part in the coming months, which should structurally raise margins. Of course, the market still sees a lessor, and an economically sensitive one at that; we see an emerging aerospace compounder underpinned by a much more stable MRO backdrop, with a capital-light growth vehicle, network effects, and scale that should only deepen as the platform matures. Our kind of set up to be sure.

BSD Analysis:
Crossroads initiated a position in FTAI Aviation following a Muddy Waters short attack that created an attractive entry point. The fund views FTAI as having executed a successful transformation from a diversified transportation asset company to a pure-play aerospace platform focused on CFM56 engine aftermarket services. The investment thesis centers on FTAI's creation of network effects through building the largest pool of CFM56 modules and internalizing MRO operations, positioning the company to benefit from OEM backlogs extending nearly a decade. The $4 billion Strategic Capital Initiative provides significant dry powder for capital-light growth, with management estimating over $250 million in EBITDA generation per $4 billion deployed. The fund believes FTAI is insulated from current tariff uncertainties and may actually benefit from supply chain complications that favor aftermarket players. With FAA approval expected for additional PMA parts, the company should see structural margin improvements while transitioning from a cyclical lessor to a stable aerospace services compounder.

Pitch Summary:
Live Nation is the world's largest live entertainment company. The live entertainment industry has grown in the high single-digits over the last two decades, and demand continues to exceed supply. Live Nation is a dominant player and offers a complimentary suite of services including concert promotion, venue operations, ticketing, and artist management businesses. Artists today make 90% of their revenue on tour as album sales and royalties become less important. Tours are increasingly global, and there are an increasing number of shows per tour. Live Nation's comprehensive offerings and scale enable its concert promoters to make better decisions on pricing and venue organization which benefits artists, venues, and fans. We expect Live Nation to continue to grow in the high single-digits over our long-term time horizon.

BSD Analysis:
Vulcan Value Partners presents a compelling bull case for Live Nation based on structural industry tailwinds and the company's dominant market position. The manager highlights that the live entertainment industry has demonstrated consistent high single-digit growth over two decades, with demand persistently exceeding supply. The investment thesis centers on Live Nation's comprehensive service offering across concert promotion, venue operations, ticketing, and artist management, creating a vertically integrated ecosystem. The manager emphasizes a key secular shift where artists now derive 90% of revenue from touring versus traditional album sales, with tours becoming increasingly global and featuring more shows per tour. This structural change benefits Live Nation's scale advantages in pricing optimization and venue organization. The firm expects continued high single-digit growth over their long-term investment horizon, supported by the company's market-leading position and operational synergies across its business segments.

Pitch Summary:
Crown Holdings is the second largest manufacturer of aluminum beverage cans globally. We own its larger competitor, Ball Corp., in our Large Cap portfolio. Our investment case for the two companies is broadly similar. The beverage can industry is a consolidated and rational industry with high barriers to entry. The industry structure, scale, and long-term contracts with inflationary pass-throughs result in solid and stable margins, high returns on capital, and robust free cash flow. In addition, aluminum cans are taking share from other substrates, most notably plastic, as aluminum is considered a more sustainable product. This transition to aluminum is driving volume growth for Crown. Recently, demand for its products has been weak due to current macro factors. We expect growth to normalize over time.

BSD Analysis:
Vulcan Value Partners added Crown Holdings to their Small Cap portfolio, viewing it as an attractive play on the consolidated aluminum beverage can industry with similar characteristics to their existing Ball Corp. position. The manager's thesis emphasizes the industry's rational competitive structure with high barriers to entry, scale advantages, and long-term contracts featuring inflationary pass-throughs that generate stable margins and robust free cash flow. A key secular tailwind is aluminum cans gaining market share from plastic substrates due to sustainability considerations, driving structural volume growth for Crown. While near-term demand has been weak due to macro factors, Vulcan expects growth to normalize over time. The investment reflects confidence in Crown's position as the second-largest global player in a consolidated industry with attractive economics, sustainable competitive advantages, and exposure to the ongoing shift toward more environmentally friendly packaging solutions.

Pitch Summary:
We are pleased to have purchased Starbucks in the first quarter. We have owned the company in the past, and it was a good investment for us. The company has strong brand recognition, global distribution, and outstanding retail real estate. The company generates robust free cash flow and has high returns on invested capital as well as a strong balance sheet. Starbucks has used its financial resources to strengthen its brand and enhance customer loyalty. Additionally, the company has continued to see attractive returns from opening new stores. Stock price volatility over the last year is likely due to management changes, disappointing short-term results, and general hesitancy about consumer spending. We believe that Starbucks' competitive position remains intact, and its value will continue to compound over our five-year plus time horizon.

BSD Analysis:
Vulcan Value Partners re-initiated a position in Starbucks, viewing recent stock price volatility as a compelling entry opportunity for a high-quality business with enduring competitive advantages. The manager's thesis centers on Starbucks' strong brand recognition, global distribution network, and prime retail real estate portfolio that generates robust free cash flow and high returns on invested capital. Despite near-term headwinds from management changes, disappointing short-term results, and consumer spending concerns, Vulcan believes the company's fundamental competitive position remains intact. The firm's confidence stems from Starbucks' continued ability to generate attractive returns from new store openings and its track record of using financial resources to strengthen brand equity and customer loyalty. With a strong balance sheet providing financial flexibility, Vulcan expects the company's intrinsic value to compound over their five-year-plus investment horizon as temporary challenges subside.

Pitch Summary:
CarMax is the largest used car retailer in the United States. The company has the third largest wholesale business in the United States and a large captive finance business. We believe that CarMax's omnichannel approach is a competitive advantage that will enable the company to continue taking market share in a highly fragmented market. This strategy enables the company to generate higher and more stable levels of profit per used vehicle sold and generate solid returns on capital. A significant portion of the used car market is made up of small independent dealerships without resources to invest in digital infrastructure. Another significant portion of the market is made up of digital-only retailers, who are now focused on profitability at the expense of volume. CarMax continues to invest in its digital infrastructure which has improved its customer experience. These investments have made it easier to buy, sell, and finance vehicles. Over the last two years, management has focused on de-leveraging the company's balance sheet and right sizing the firm, which has significantly de-risked the business and positioned CarMax extremely well for when volumes normalize. We believe that the combination of a leaner cost structure and an improved competitive position will strengthen the company's prospects.

BSD Analysis:
Vulcan Value Partners sees CarMax as well-positioned to gain market share in the highly fragmented used car retail market through its omnichannel competitive advantage. The manager's thesis emphasizes CarMax's superior digital infrastructure investments compared to small independent dealers who lack resources for technology upgrades, and digital-only competitors now prioritizing profitability over volume growth. The company's integrated approach combining retail, wholesale, and captive financing generates higher and more stable profit per vehicle while delivering solid returns on capital. Management's recent focus on balance sheet deleveraging and operational right-sizing has significantly de-risked the business model. Vulcan believes the combination of a leaner cost structure, enhanced digital customer experience, and improved competitive positioning creates a compelling setup for when used car volumes normalize. The investment reflects confidence in CarMax's ability to continue taking share in a fragmented market while generating superior unit economics through its differentiated omnichannel platform.

Pitch Summary:
Live Nation is the world's largest live entertainment company. The live entertainment industry has grown in the high single-digits over the last two decades, and demand continues to exceed supply. Live Nation is a dominant player and offers a complimentary suite of services including concert promotion, venue operations, ticketing, and artist management businesses. Artists today make 90% of their revenue on tour as album sales and royalties become less important. Tours are increasingly global, and there are an increasing number of shows per tour. Live Nation's comprehensive offerings and scale enable its concert promoters to make better decisions on pricing and venue organization which benefits artists, venues, and fans. We expect Live Nation to continue to grow in the high single-digits over our long-term time horizon.

BSD Analysis:
Vulcan Value Partners initiated a position in Live Nation Entertainment, viewing it as a dominant player in the structurally growing live entertainment industry. The manager's thesis centers on the secular shift in artist revenue models, where touring now represents 90% of artist income versus traditional album sales and royalties. This fundamental change creates a powerful tailwind for Live Nation's integrated platform of concert promotion, venue operations, ticketing, and artist management services. The company's scale advantages enable superior pricing decisions and venue optimization that benefit all stakeholders in the ecosystem. With demand consistently exceeding supply in live entertainment and tours becoming increasingly global with more shows per tour, Vulcan expects the company to sustain high single-digit growth over their long-term investment horizon. The investment reflects confidence in Live Nation's market-leading position and the structural growth dynamics of the live entertainment industry.

Pitch Summary:
Precipio is a microcap specialty cancer diagnostics company offering both molecular assay kits and pathology services. Its core product lines include HemeScreen molecular assays, and IV-Cell Culture media, as well as operating its own clinical laboratory. HemeScreen is a set of proprietary molecular tests for hematologic malignancies (i.e., blood cancers). IV-Cell culture media is a universal cytogenetic culture media used for testing of hematologic cancers (i.e., Leukemia). Both products utilize proprietary chemical assays that have been developed over the years and are kept as trade secrets by the company, providing them protection from anyone trying to copy their products. Precipio's estimated market share remains under 1% of its total addressable market in their current products. Both product end markets are growing within the broader $115B oncology diagnostics market. With the help of their key product distributors, including Thermo Fisher, McKesson, Medline, and Cardinal Health, the company has an excellent path to growth within their current product portfolio and the ability to launch similar new cancer diagnostic products into adjacent markets. The company has been on a multi-year path to get to cashflow and EBITDA breakeven. Through a combination of cost-cutting efforts and scaling efficiencies, they have been able to improve their pathology services gross margins from the mid-20s to the mid-40s over the last 3 years. CEO Ilan Danieli noted in their Q4 2024 results that they are past the point of needing outside capital, saying, "Managing a company that no longer relies on outside capital infusions for its survival enables us to make decisions based on growth and value creation without the constraints imposed by cash conservation concerns." The last three quarters further underscore their progress toward a positive cash flow, in which in each quarter they generated near zero EBITDA. In the last 2 years there have been two industry-related issues that have negatively impacted their business, which seem to be behind the company. Firstly, there was a hack at Change Healthcare, the country's largest clearinghouse which facilitates the majority of insurance billing nationwide. In February of 2024 that hack caused significant billing and payment delays into late 2024 for most healthcare providers in the country. The company relied on Change Healthcare's temporary funding assistance program in 2024 to help stabilize the company's balance sheet. This hack was resolved in late 2024, and the cash flow from payors that Precipio relies on has been fully restored. Secondly, in late 2024, the FDA provided a final rule regulating laboratory development tests (LDTs) as medical devices, which could have negatively impacted the entire diagnostic field's regulatory requirements by imposing extremely stringent, complex and costly regulations on laboratories in the US. This caused significant uncertainty among laboratories as to their ability to purchase assays such as HemeScreen, and as a result, many laboratories placed on hold all efforts to explore new products, impacting Precipio's Products Division growth. The rule was struck down in Q1 by a federal court in Texas, which vacated the rule, making it no longer legally binding. This uncertainty in the industry has been lifted from the company, and shortly after, Precipio saw numerous laboratories resume their interest in the company's products. Precipio currently has "going concern" language in their financial audit due to recurring operating losses and concerns about its ability to meet financial obligations without raising additional capital. This language reflected historical cash burn and uncertainty exacerbated by external disruptions such as the Change Healthcare cyberattack and the FDA ruling. However, in its most recent quarters, the company has demonstrated a meaningful shift toward financial stability, reporting positive operating cash flow and significantly improved revenue performance. On a recent call I had with the company's CEO, Ilan Danieli, he expressed a belief that continued cash flow positivity, combined with cost controls and increased customer demand, strengthens Precipio's financial position and will likely lead to the removal of the going concern language in upcoming filings.

BSD Analysis:
The manager presents a compelling turnaround story for Precipio, a microcap cancer diagnostics company positioned at an inflection point toward profitability. The investment thesis centers on proprietary HemeScreen molecular assays and IV-Cell culture media that address underserved niches in hematologic cancer testing, with trade secret protection providing competitive moats. Key catalysts include recent MolDx Medicare approval expected to generate $1M in annual high-margin revenue, resolution of regulatory overhang from FDA LDT rules, and recovery from Change Healthcare billing disruptions. The company has demonstrated operational leverage with pathology gross margins expanding from mid-20s to mid-40s over three years while approaching EBITDA breakeven. Management's capital discipline is evident through minimal equity raises and performance-based compensation structures. At 1x EV/revenue versus peers trading at 3-11x, the valuation appears compelling if the company executes on its path to sustained profitability and removes going concern language.

Pitch Summary:
Nilorn designs and delivers tags and labels for European clothing brands. The company combines just-in-time delivery with quality design that can elevate the customer's products in the eyes of the end consumer. Management uses free cash flow to grow the business and pay a dividend. The company's returns on capital are about 30%. Nilorn currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital holds Nilörn Group as a specialized provider of tags and labels for European clothing brands, operating a high-return business model with exceptional capital efficiency. The company's returns on capital of approximately 30% indicate a highly profitable niche business with strong competitive positioning in the fashion accessories market. The manager values the company's combination of just-in-time delivery capabilities with quality design services that add tangible value to customers' products and enhance end-consumer perception. This value-added approach likely creates customer stickiness and pricing power in what could otherwise be a commoditized business. Management's balanced capital allocation between business growth and dividend payments suggests confidence in the sustainability of cash generation while returning excess capital to shareholders. The focus on European clothing brands provides geographic diversification while serving a large and established market. The attractive upside-to-downside valuation combined with the exceptional returns on capital suggests the market may be undervaluing this specialized, high-margin business. This represents a quality small-cap investment in a niche market with strong fundamentals and shareholder-friendly management.

Pitch Summary:
GetBusy provides online document exchange systems—primarily for accountants. GetBusy spun out of Reckon in August 2017, and has continued to grow since then. GetBusy does not earn money, investing through higher expenses to grow its existing businesses and attempting to launch new products. The underlying businesses are profitable and sustainable in the U.K. and U.S.

BSD Analysis:
Curreen Capital maintains a position in GetBusy, a specialized software provider focused on document exchange systems for accounting professionals. The company spun out from Reckon in August 2017 and has demonstrated consistent growth in its core markets since independence. While the company currently operates at a loss due to strategic investments in growth and new product development, the manager emphasizes that the underlying businesses in both the U.K. and U.S. markets are profitable and sustainable. This suggests the current losses are driven by deliberate reinvestment rather than fundamental business model issues. The company's focus on the accounting vertical provides a defensible niche with recurring revenue characteristics and high switching costs. The manager's confidence in the underlying business profitability indicates belief that current growth investments will eventually translate to overall profitability. This represents a growth investment in a specialized software company with proven market traction that is temporarily sacrificing profitability for market expansion and product development. The spinoff structure may have created an overlooked opportunity in a niche but stable market segment.

Pitch Summary:
Frontdoor sells home service plans to homeowners. The company contracts with HVAC and other contractors and dispatches them when customers have problems with one of their major home appliances and systems (furnace, air conditioning, refrigerator, electrical system, etc). Frontdoor spun out of ServiceMaster in October 2018. Frontdoor serves about 2% of U.S. homes, and uses its free cash flow to grow organically, pay down debt, repurchase shares, and more recently – to launch an app that connects service experts with customers on a video chat. Frontdoor currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital holds Frontdoor as a home service plan provider with significant market penetration opportunity and multiple growth initiatives. The company operates in the large home warranty market, serving approximately 2% of U.S. homes while providing repair and replacement coverage for major home systems and appliances through a network of pre-qualified contractors. Since spinning out from ServiceMaster in October 2018, the company has demonstrated disciplined capital allocation across organic growth, debt reduction, and share repurchases. The manager highlights the company's recent innovation with a video chat app connecting service experts directly with customers, suggesting management's focus on technology-driven service improvements and customer experience enhancement. The low market penetration of 2% in a large addressable market indicates substantial runway for organic growth. The company's asset-light business model, relying on contractor networks rather than owned service capacity, should generate strong cash flow conversion. The attractive upside-to-downside valuation suggests the market has not fully recognized the company's growth potential and operational improvements since the spinoff.

Pitch Summary:
Credit Acceptance is a subprime auto lender, enabling subprime borrowers to buy vehicles from used car dealerships. The business has profitably gained share in a large and difficult market for more than two decades. Management allocates free cash flow to growing the business and repurchasing shares at attractive prices. Credit Acceptance currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital maintains a position in Credit Acceptance, recognizing it as a specialized subprime auto lender with a proven track record of profitable market share gains over more than two decades. The manager values the company's ability to successfully navigate the challenging subprime lending market, which requires sophisticated underwriting capabilities and risk management expertise. The business model focuses on enabling subprime borrowers to purchase vehicles through used car dealerships, addressing a significant market need while generating attractive returns. Management's disciplined capital allocation approach, combining business reinvestment with opportunistic share repurchases, demonstrates effective stewardship of shareholder capital. The company's long-term track record of profitable growth in a difficult market segment suggests sustainable competitive advantages and operational expertise. The manager's emphasis on the attractive upside-to-downside valuation indicates confidence in the company's ability to continue generating strong returns despite the inherent risks in subprime lending. This represents a bet on management's proven ability to profitably serve an underserved market segment.

Pitch Summary:
Advantage Solutions works with brands and stores to sell products through stores. The company is one of the largest managers of in-store sampling programs in the U.S. (for example, would you like to try this new brand of: cheese/chips/dip/etc.) Advantage Solutions was a SPAC-merger completed in October 2020. Advantage Solutions is a capital light business that earns high returns on capital. It has a meaningful debt load, though the debt lacks onerous covenants and does not come due for several years. The company uses its free cash flow to repay debt and acquire smaller competitors. Advantage Solutions currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital holds Advantage Solutions as a capital-light business with attractive economics in the retail marketing services sector. The company operates as one of the largest in-store sampling program managers in the U.S., providing a critical service that connects consumer brands with retail customers through experiential marketing. The manager appreciates the business model's high returns on capital and asset-light structure, which typically generates strong cash flow conversion. While the company carries meaningful debt from its SPAC transaction in October 2020, the manager notes the favorable debt structure with non-restrictive covenants and extended maturity profile. The company's capital allocation strategy focuses on debt reduction and strategic acquisitions of smaller competitors, suggesting a disciplined approach to growth and balance sheet management. The manager's previous reference to excellent results from this investment indicates strong performance since initiation. The attractive upside-to-downside valuation suggests continued value potential despite the company's post-SPAC challenges.

Pitch Summary:
Advance Auto Parts is a store-based retailer of aftermarket automotive parts and supplies. This includes batteries, windshield wipers and fluid, air filters, motor oil, etc. The company has historically earned decent (approaching 20%) returns on tangible capital. The company is attempting a turnaround, and has cut its dividend and replaced its CEO. Advance Auto currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital maintains a position in Advance Auto Parts, viewing it as a turnaround opportunity in the automotive aftermarket retail space. The manager highlights the company's historically strong capital efficiency, with returns on tangible capital approaching 20%, indicating a fundamentally sound business model when properly executed. The investment thesis appears centered on the company's ongoing turnaround efforts, including significant management changes with a new CEO and capital allocation adjustments through dividend cuts. These actions suggest management is prioritizing operational improvements and balance sheet strengthening over shareholder distributions. The manager's reference to previous successful investments in distressed situations like this one indicates confidence in the turnaround strategy. The attractive upside-to-downside valuation suggests the market has heavily discounted the shares, potentially creating an asymmetric risk-reward opportunity. This represents a classic value investment in a cyclical retailer undergoing operational restructuring.

Pitch Summary:
We bought Siemens Energy at €14.10/share. This is a new position for us, and about 2.5% of the fund. Siemens Energy spun out of Siemens in September 2020. Siemens Energy combines a world-class electrical power generation business, a world-class electricity transmission business, and an onshore and offshore wind turbine business that is attempting a turnaround. My current view is that—after more than a decade of stagnation—the electrical power industry has returned to growth, Siemens Energy will successfully turn around the wind business, and we bought this company at a very attractive upside-to-downside valuation.

BSD Analysis:
Curreen Capital initiated a new 2.5% position in Siemens Energy at €14.10 per share, viewing it as an attractive turnaround opportunity in the recovering electrical power industry. The manager's thesis centers on the belief that the electrical power sector has emerged from over a decade of stagnation and returned to growth, positioning Siemens Energy to benefit from this industry tailwind. The company's diversified portfolio includes world-class power generation and transmission businesses alongside a struggling wind turbine division that management expects to successfully turn around. The investment appears to be a value play, with the manager emphasizing the attractive upside-to-downside valuation at current levels. This represents a contrarian bet on both the company's operational turnaround and the broader industry recovery. The timing of the investment, coming roughly 3.5 years after the spinoff from Siemens, suggests the manager believes the market has not yet recognized the improving fundamentals. The position sizing at 2.5% indicates moderate conviction while allowing room for additional purchases if the thesis plays out favorably.

Pitch Summary:
IG Design Group is a UK-based producer and distributor of gift packaging, craft and party supplies, homewares, and other items. After a number of years of growing earnings and dividends, IG Design acquired two large US competitors, first Impact Innovations in 2018 for ~$75M, then CSS Industries in 2020 for ~$95M. Integrating these US acquisitions did not go well and they've been struggling to bring their "DG Americas" division to profitability ever since. After hitting a high of over 7 GBP/sh in late 2019, supply chain struggles and the underperforming US acquisitions forced them to cut their once growing dividend entirely. The stock price proceeded to get cut by over 80% in 2022. They were able to stabilize the business and delivered a much better bottom line result in 2024, but only right before disaster struck again. One of their larger customers, Joann Fabrics, after initially restructuring in 2024, went bankrupt again in early 2025, which likely was the beginning of the end for DG Americas. Given the seasonal working capital demands of their business and uncertainty presented by tariffs, management decided to exit the US business completely. DG Americas was sold to a liquidator for a nominal sum of $1 and a 75/25% split of net proceeds between the IG Design and the liquidator, respectively. Even if they receive a material sum from the liquidations, it will be a far cry from what they purchased the US businesses for 5-7 years ago. Clearly this was a terrible experience and outcome for the company and any unfortunate shareholders along for the ride. You're probably wondering why anyone would want to touch this company and certainly wondering why I'm bothering talking about it. IG Design's core business, "DG International", has hummed along just fine throughout this entire debacle. During FY25, the DG International segment generated $28.1m in adjusted operating profit before corporate costs. In fact, DG International has consistently churned out $20-$30m in adjusted operating profit for most of the last decade. They still anticipate some headwinds for FY26 and will incur some costs related to DG Americas for a couple months prior to selling to Hilco Capital (the liquidator). Importantly, management sees adjusted operating profit returning to $13-15m in FY27. That target seems very achievable, especially since they can finally put all of their attention to their more profitable, stable segment. The market cap today is around $80m USD and they have $85m in net cash, so there's not much good news baked in. While I don't expect much in terms of proceeds from the DG Americas liquidation, they have received $8.4m so far. I've estimated DG Americas owns over $30m of real estate and some smaller structurally profitable segments but it's unclear how well the good parts are structured separately from the bad parts and also how material wind-up costs could be. For those reasons I'm keeping expectations low for any proceeds from the DG Americas liquidation. While I truly think the bulk of bad news is behind them, owning even a small position has been a headache to say the least. When it comes to small LSE traded companies, and especially AIM-listed companies, I'm disappointed by the lack of respect given to minority shareholders, dark-room style trading on the AIM, and trading updates with as little information as possible. In my experience, it's always better to communicate to shareholders in a straightforward manner, delivering bad news clearly and up-front, owning up to mistakes, and discussing the path forward. Continually trying to paint everything in the most rosy way (especially significant mistakes) often leads to distrust of management. My favorite companies are ones that continually underpromise and overdeliver, and my least favorite do the opposite.

BSD Analysis:
The manager presents a cautious turnaround thesis on IG Design Group following the complete exit from its troubled US operations. The core DG International business has demonstrated resilience, consistently generating $20-30m in operating profit over the past decade despite the US division's struggles. With an $80m market cap supported by $85m net cash, the downside appears limited while management refocuses entirely on the profitable international segment. The liquidation of DG Americas, while destroying significant shareholder value from the original $170m acquisition cost, eliminates a persistent drag on profitability and management attention. However, the manager's neutral stance reflects ongoing concerns about corporate governance standards and communication transparency typical of smaller LSE-listed companies. The projected return to $13-15m operating profit by FY27 appears achievable given the historical performance of the core business, though execution risk remains given management's track record with the failed US expansion.

Pitch Summary:
FILA reported a strong Q1 with revenues up 4% and adjusted EBITDA up 7% YoY. FILA has also committed to paying .80/sh in dividends for 2025, .40 was paid in May and .40 will be paid in November. They reaffirmed previous guidance for 2025 but cautioned Q2 could be softer due to tariffs, from delayed customer orders and/or softer US consumer spending. Understandably, shares pulled back on these comments. More surprisingly, last week when Intermonte (one of the equity research firms covering FILA) published a revised 2025 EBITDA target of €95m (vs. €102m previously) due to US consumer weakness, it sent the stock down almost 15% on heavy volume. What I thought was seemingly priced in, apparently caught some by surprise, so again FILA looks very undervalued in my eyes. At 8.50/sh, FILA shares trade at only 5x EV/EBITDA if you only give them credit for the 6% ownership in DOMS they can sell without impacting their shareholder rights at all. They still own a remaining 20% of DOMS, worth 283m. I believe the reason they changed the relevant rights threshold at DOMS from 26% to 20% is very clear. They intend to sell another 6%. But in order to maximize leverage in any negotiation with a potential buyer, there is no reason to definitively declare your intention to sell. Importantly, FILA is not under any post-IPO lockup or other restriction on their remaining shares. In the right scenario, if they wanted, they could sell the entire stake. At present, FILA relies very little on DOMS for any manufacturing capacity. If they were to retain their stake and maintain relevant shareholder rights, I think the path forward could be to increase utilization of DOMS as a manufacturing hub, thereby making FILA more of the capital-light brand owner and distributor. This would obviously take time and resources but DOMS has been consistently expanding capacity and could continue doing so. Then on the other hand, if FILA wanted to sell its entire stake in DOMS (valued around 370m), in my mind it would make sense to do so before becoming more intertwined. There are many other scenarios as to how this could play out, but curiously a common market perception seems to be that FILA will never sell any more DOMS. FILA's management team has created significant value with a number of pieces over the years, most notably Dixon Ticonderoga and DOMS, and I believe will continue to do so. I think shares present a very attractive opportunity at current levels and have added to our position accordingly.

BSD Analysis:
The manager presents a compelling value thesis on FILA, highlighting the company's undervaluation following market overreaction to modest guidance revisions. At 5x EV/EBITDA excluding DOMS stake value, the stock appears deeply discounted despite solid Q1 performance with 4% revenue growth and 7% EBITDA expansion. The key catalyst centers on FILA's 26% stake in DOMS, valued at €370m, which provides significant optionality for value realization through partial or complete divestiture. Management's strategic flexibility to either monetize the DOMS holding or leverage it as a manufacturing hub creates multiple paths to unlock shareholder value. The manager's confidence in adding to the position reflects conviction in both the core business fundamentals and management's proven track record of value creation through strategic transactions. The dividend commitment of €0.80 per share provides additional downside protection while the market awaits resolution of the DOMS strategic review.