Investment Pitches

Pitch Summary:
Natera is a diagnostics company that provides preconception and prenatal genetic testing services, with its flagship Signatera oncology test driving growth. In the latest quarter, growth of Signatera volumes exceeded consensus estimates, prompting management to raise its revenue growth guidance. Profitability continues to strengthen with rising gross margins and sustained positive free cash flow. With Signatera’s impressive total addressable market, we believe Natera remains well positioned for long-term expansion.

BSD Analysis:
Natera’s moat is clinical credibility in genetic testing where accuracy directly affects medical decisions. Once physicians trust a test, switching is slow and reputationally risky. Growth has been strong, but reimbursement and payer scrutiny are the real long-term governors of returns. Volume growth doesn’t automatically translate into margin expansion, especially as tests commoditize at the edges. Litigation and regulatory complexity add noise that investors often underestimate. The company still spends like a growth biotech while being judged like a diagnostics platform. The bull case is broader guideline inclusion and payer alignment across oncology and women’s health. The bear case is margin disappointment once growth normalizes. Natera wins on science—but must prove it can win on economics.

Pitch Summary:
Mining services company Macmahon (MAH) announced a number of new contracts for its recent civil infrastructure acquisition Decmil, alongside the extension of its large Byerwen coal mining contract. The new work leaves it well placed to meet guidance for FY26 revenue of $2.6–$2.8 billion. Enthusiasm for gold, silver and copper-related assets drove a sharp re-rating in the share price, which almost doubled in 2025 after nearly a decade of mediocre returns. The Fund has been gradually selling, with the investment now less than 1% of the portfolio.

BSD Analysis:
Macmahon’s moat is operational capability and long-term relationships in underground and surface mining contracts. Revenue visibility improves with contract tenure, but margins remain thin and execution-sensitive. Cost overruns, labor availability, and safety performance drive outcomes more than commodity prices directly. Contract mix matters—badly priced jobs destroy value quickly. Capital discipline is critical because fleet and equipment are expensive and unforgiving. The bull case is stable mining activity with disciplined bidding and improving utilization. The bear case is margin blowouts from mispriced or poorly executed contracts. Macmahon is a classic mining services operator—returns depend on saying “no” as much as winning work.

Pitch Summary:
Lender Plenti (PLT) delivered an outstanding half, with originations surging 46% and the loan book growing to more than $2.8 billion. Growth translated cleanly into profitability, with cash profit before tax of $14.1 million equalling the entire prior full year. Operating leverage was the standout, with cash profit rising 133% as costs grew materially slower than revenue. Credit quality improved, with net loss rates falling to 0.94% and arrears declining, while the mix tilted toward lower-risk automotive and renewable energy lending. Management reiterated confidence in reaching a $3 billion loan book by March 2026.

BSD Analysis:
Plenti is a non-bank lender where underwriting discipline is the entire business model. The moat is data, risk pricing, and speed in niche consumer and asset-backed lending segments. Funding costs matter more than growth narratives, especially when credit markets tighten. Expansion into new loan products raises both opportunity and execution risk. Credit losses are manageable until macro conditions shift, then they rise non-linearly. Scale helps, but it doesn’t immunize against bad cohorts. The bull case is steady loan book growth with controlled arrears and improving operating leverage. The bear case is funding pressure combined with rising impairments. Plenti works only if management stays conservative when growth looks easiest.

Pitch Summary:
OFX Group (OFX) delivered a softer first-half result as macroeconomic uncertainty weighed on small business confidence, with net operating income declining 5.6% from the prior year. Lower transaction values and subdued foreign exchange volatility were to blame, while management deliberately stepped up investment spend. There were bright spots, including a 48% increase in revenue from enterprise customers and strong growth in non-FX products such as cards, wallets and payments on the new platform. Active clients on the new platform more than doubled during the half, wallet balances increased materially, and cross-sell indicators are trending positively. The balance sheet remains strong with $47 million of net cash to fund the transition.

BSD Analysis:
OFX operates in cross-border payments where the product is trust, pricing transparency, and execution speed rather than flashy tech. The moat is modest but real: established compliance, FX liquidity access, and brand credibility with SMEs and corporates. Margins are sensitive to FX volatility, which can help or hurt depending on client activity. Competition is intense from banks, fintechs, and embedded FX providers pushing pricing down. Growth depends on transaction volumes, not balance-sheet leverage, which limits upside explosiveness. Operating leverage exists, but only if volumes scale meaningfully. The bull case is continued shift away from banks toward specialist FX providers. The bear case is margin compression as FX becomes increasingly commoditized. OFX compounds slowly when it stays disciplined—and struggles if pricing turns into a race to zero.

Pitch Summary:
Aroa Biosurgery (ARX) is not a typical early stage biotech. While not as exciting as developing the next wonder drug, the company looks a lot more like the industrial businesses we like to invest in. Aroa has approvals for its major products, produces revenue of nearly NZ$100 million per annum and is generating cash. Early on Aroa formed a relationship with US-listed TELABio (NASDAQ:TELA) to distribute its hernia-related products into the US market, creating a very high margin revenue stream. Over the past couple of years, revenue growth has moderated, but in parallel the company has built a direct distribution network to sell its newer trauma-related products, which saw sales jump 33% in the half. Execution has translated into incremental revenue dropping through to profit and free cash flow, with management reaffirming full-year guidance and continued momentum.

BSD Analysis:
The real appeal of Aroa lies in its platform nature — once surgeons adopt the material, it tends to become embedded in their standard of care. Regulatory barriers and biological complexity limit direct competition. Revenue growth has been steady rather than explosive, reflecting deliberate market development. Manufacturing scalability and supply reliability are underappreciated strengths. Near-term results can frustrate momentum investors, but long-term value hinges on cumulative procedure volume. This is not a hype-driven medtech name. It’s a slow-burn adoption story with defensible IP and improving economics.

Pitch Summary:
Aroa Biosurgery (ARX) is not a typical early stage biotech. While not as exciting as developing the next wonder drug, the company looks a lot more like the industrial businesses we like to invest in. Aroa has approvals for its major products, produces revenue of nearly NZ$100 million per annum and is generating cash. This Kiwi company’s products sound futuristic. A sheep’s stomach is processed into a product that helps regenerate soft tissue after hernia operations and other surgeries. Early on Aroa formed a relationship with US-listed TELABio (NASDAQ:TELA) to distribute its hernia-related products into the US market. After years of quick growth, revenue from this relationship reached NZ$40 million last year. As Aroa supplies its product and does not fund the sales force, this is a very high margin revenue stream. Over the past couple of years, revenue growth has moderated and grew only 4% year-on-year in the half-year result released in December. In parallel, the company has built a direct distribution network of its own to sell its newer trauma-related products directly. This is a costlier path, which involves spending on an expensive sales force in the US, but one that diversifies the business away from reliance on one external distributor. The directly distributed product saw sales jump 33% in the half, driven by a sales force that is clearly hitting its stride. Execution has translated quite cleanly into financial outcomes. Aroa is seeing incremental revenue drop through to profit and free cash flow. This operating leverage is set to continue as most of the cost increases relate to direct sales representatives which, with a lag, drive meaningful revenue growth. Management reaffirmed full-year guidance at the result, with conservative assumptions on TELA Bio sales and continued direct product momentum through the second half of the financial year. With direct sales now driving the bulk of growth, Aroa is proving it can deliver consistently whilst also improving cash generation and sustaining revenue momentum - a powerful combination as the business moves into its next phase.

BSD Analysis:
Aroa is a soft-tissue regeneration company using extracellular matrix technology derived from ovine sources to support wound healing and surgical repair. Its products sit in high-value clinical niches like hernia repair, chronic wounds, and reconstructive surgery. Adoption is driven by clinical outcomes and surgeon familiarity rather than price competition. Gross margins are attractive, but scale is still building, keeping profitability just out of reach. Distribution expansion in the U.S. is the main growth lever. Clinical data continues to support broader use cases. Aroa is a medtech growth story where patience is required for operating leverage to emerge.

Pitch Summary:
The Fund invested in Zegona in April 2025 as a special situation. Management had acquired Vodafone Spain at a depressed valuation, funded largely through debt and vendor preference shares issued to Vodafone, with minimal new equity raised. While Vodafone technically held a majority of the economic interest through those preference shares, Zegona retained the right to redeem them at cost. The opportunity lay in executing an operational turnaround while selling non-core infrastructure assets to fund redemption of the preference shares, concentrating value into the ordinary equity. That is exactly what has occurred. Over the past six months, Zegona completed two FibreCo transactions with Telefónica and MasOrange, generating €1.8 billion of upfront proceeds. These proceeds fully funded the redemption and cancellation of Vodafone’s preference shares, reducing the ordinary share count by 69%, alongside a substantial return of capital via a special dividend and further debt reduction. This balance sheet reset coincided with genuine operating progress. Customer metrics stabilised and returned to growth, margins expanded meaningfully, and cash flow improved faster than initially expected. Management executed decisively on cost reduction, capex discipline and commercial simplification, removing much of the execution risk that underpinned the original opportunity. With the share price up around 130% since first purchase, the preference structure dismantled, FibreCo optionality crystallised and the turnaround well recognised by the market, the asymmetry that defined the original investment has largely been realised. Due to this, we have taken profits and fully exited the investment.

BSD Analysis:
Zegona is a classic European activist-style investment vehicle focused on telecom turnarounds, most recently centered on Vodafone Spain. The strategy is straightforward: buy underperforming assets, strip out inefficiencies, fix pricing and customer churn, then exit at a higher multiple. Telecom is structurally challenged, but that’s exactly where Zegona thrives by exploiting operational complacency. Early signs of stabilization in Spain suggest the playbook is working again. Leverage amplifies both upside and risk, making execution critical. The market typically underestimates how much value disciplined cost control can unlock in telco. Zegona is not a compounder — it’s a value-creation sprint with a clear endgame.

Pitch Summary:
The original thesis was straightforward. Nextpower is the world’s largest solar tracker manufacturer, with more than 30% global market share in a segment that materially improves project economics. As solar generation costs continued to fall and utility-scale solar adoption accelerated, trackers became increasingly critical to maximising developer returns. At the same time, US tariffs and the Inflation Reduction Act favoured domestically anchored manufacturers. With a highly localised supply chain and substantial US manufacturing capacity, Nextpower was well positioned. That thesis has played out. Demand proved resilient across regions, backlog grew to record levels, earnings repeatedly exceeded expectations and free cash flow generation was strong. As policy risk faded and confidence returned, the market reassessed Nextpower’s earnings power and the share price re-rated sharply upwards. By mid-November, the valuation largely reflected our assessment of fair value. While execution remains strong, prospective returns have diminished. The investment was reduced and ultimately exited, with capital recycled into newer opportunities where unwarranted pessimism remains widespread.

BSD Analysis:
Nextracker’s moat is scale, reliability, and software-enhanced hardware in utility-scale solar tracking. Once specified into projects, switching costs are real due to engineering, warranties, and performance guarantees. Demand is policy- and capex-driven, making visibility lumpy. Margins benefit from mix and execution, but input costs and competition keep pressure constant. Geographic diversification helps, yet trade policy and tariffs add risk. Growth depends on global solar buildouts staying funded and permitted. The bull case is continued utility-scale solar expansion with disciplined pricing. The bear case is project delays and margin erosion as competitors chase volume. Nextracker works when it stays the safe choice—not the cheapest.

Pitch Summary:
The biggest winner for the quarter was also the largest contributor over the past 12 months: Nutex Health (NASDAQ:NUTX). It has been a wild ride. After rising more than tenfold from the Fund’s initial purchase in August 2024, and with a significant portion of the investment taken off the table, the stock more than halved between May and September 2025. The explanation was detailed in the September 2025 quarterly letter: short-seller reports, late lodgement of accounts and the appointment of a new auditor. Throughout that period, cash continued to come in. More recently, the company lodged its accounts and the stock rose 60% over in the last three months of the year. Weighting in the portfolio has been actively managed, with exposure increased at lower prices and reduced at higher ones, allowing the portfolio to benefit from the volatility rather than suffer from it.

BSD Analysis:
Nutex Health is a roll-up in micro-hospital and specialty healthcare services where execution, not vision, determines survival. The moat is thin—local relationships, licensing, and speed to open facilities—rather than defensible scale. Reimbursement complexity and payer mix dominate economics more than patient volumes. Growth via acquisitions magnifies integration risk and balance-sheet strain. Cash flow quality matters because capex and working capital swing quickly. Regulatory scrutiny is constant and unforgiving if compliance slips. The bull case is disciplined expansion with stabilized margins at mature sites. The bear case is dilution and operational noise overwhelming reported growth. Nutex is an execution test masquerading as a growth story.

Pitch Summary:
This business was a low, GDP-like grower for a long time. Thanks to Covid and some big acquisitions, it looked like something more than that in recent years. Management and investors extrapolated recent growth into the future and the latter (including us) were sorely disappointed when a new CEO arrived in May and, after a few short months, significantly downgraded both revenue and earnings expectations. His predecessor had a strong incentive to dress this business up - he sold more than US$400 million worth of shares shortly after his departure. The new thesis is that Mike Lyons, the new CEO, has an equally strong incentive to set the bar as low as possible. Fiserv’s current price is just eight times those newly lowered expectations. We are tipping that he is highly confident of exceeding them.

BSD Analysis:
Fiserv is a fintech infrastructure leader powering merchants, banks, and financial institutions worldwide. The Clover POS ecosystem continues to scale, driving higher-margin recurring revenue. Fiserv’s breadth across payments, core banking, and merchant acquiring creates cross-sell opportunities few competitors can match. Legacy platform modernization is improving operating leverage. Competition is intense, but switching costs remain high for enterprise clients. Free cash flow is robust and supports buybacks. Fiserv is a durable compounder at the heart of global payments.

Pitch Summary:
Bayer A.G. has shown significant upside potential due to a potential resolution of its legal issues related to the Roundup scandal. The company's strategic cost-cutting measures, including a reduction of over 13,000 employees and targeting €2B in savings by 2026, are expected to improve its financial profile. Despite the high litigation risk from its Monsanto acquisition, Bayer's recent performance in pharma and crop science has been positive. The company's valuation remains attractive, trading at a low P/E ratio compared to its peers, suggesting further upside potential. However, the company's growth prospects in pharma and consumer health remain modest, and the litigation outcome is not yet definitive.

BSD Analysis:
Bayer's recent legal developments, including the U.S. Solicitor General's support for a Supreme Court review, could limit future liabilities, providing a catalyst for stock appreciation. The company's focus on deleveraging and litigation management, along with its efforts in new product approvals and advancements in cell and gene therapy, indicate a strategic pivot towards long-term growth. Despite a significant drop in free cash flow due to litigation payouts, Bayer's debt reduction efforts are on track. The company's current valuation at 8.6x P/E, while low, reflects its slow growth and ongoing risks. The potential for a market-beating upside exists if Bayer can resolve its litigation issues and achieve growth in its pharma and consumer segments.

Pitch Summary:
Gold bullion leases offer a unique opportunity to earn a competitive yield on physical gold, traditionally a non-income-producing asset. These leases provide yields comparable to many REITs, with payments made in gold ounces, allowing for potential appreciation as gold prices rise. The leases are fully insured and not on the counterparty's balance sheet, minimizing risk. The bullish case for gold is supported by ongoing U.S. fiscal deficits, de-dollarization trends, and geopolitical tensions, all of which could drive gold prices higher. Gold serves as a hedge against inflation and currency debasement, making it a valuable component of a diversified income portfolio.

BSD Analysis:
The strategic inclusion of gold bullion leases in a portfolio addresses multiple macroeconomic risks. As the U.S. government continues to run large deficits, concerns about the dollar's long-term value increase, potentially boosting gold's appeal. The global shift away from dollar reserves towards gold by central banks provides a strong, consistent demand for the metal. Additionally, geopolitical tensions, particularly involving major economies like the U.S. and China, could further elevate gold's status as a safe haven. Even in scenarios where fiscal stability is achieved, gold's role in a diversified portfolio remains crucial due to its intrinsic inflation-hedging properties.

Pitch Summary:
The Global X MLP & Energy Infrastructure ETF (MLPX) is an attractive investment due to its high yields, typically ranging from 5% to 9%, backed by fee-based, contracted, and regulated assets. These assets often include inflation protection, making them resilient to stagflation. The ETF benefits from tax advantages, particularly from MLPs where distributions are classified as a return of capital. With strong balance sheets, low debt, and investment-grade credit ratings, companies within MLPX are well-positioned to sustain and grow distributions. Enterprise Products Partners (EPD) and Enbridge (ENB) are highlighted as top picks within the sector, offering stable income and growth potential.

BSD Analysis:
The midstream energy infrastructure sector is particularly appealing in the current economic climate due to its defensive characteristics. The sector's cash flows are largely insulated from commodity price volatility, providing stability. EPD's extensive NGL export footprint and organic growth projects enhance its future cash flow prospects, while ENB's diversified cash flow and high credit quality further solidify its investment appeal. The sector's ability to self-fund growth projects and maintain strong liquidity positions it well for continued income generation. Overall, MLPX offers a compelling combination of high yield, growth potential, and inflation resistance, making it a valuable addition to a retiree's portfolio.

Pitch Summary:
RF Industries, Ltd. has demonstrated significant growth, with its stock more than doubling over the past year, outperforming the S&P 500. The company has shifted towards higher-quality growth by diversifying its offerings from loose parts to bundled systems, which has improved both revenue and margins. This strategic shift has deepened customer relationships and increased pricing durability. The company's recent earnings report shows a 23% year-over-year growth in net sales and a significant increase in adjusted EBITDA. Management's focus on larger, more complex projects across various end markets, including telecom, aerospace, and defense, supports a bullish outlook.

BSD Analysis:
RF Industries' strategic reset has positioned it well in a market where telecom operators are under pressure to optimize spending. The company's focus on offering complete, solution-based products has led to improved margins and profitability. Despite the favorable macro conditions, risks remain, particularly related to project timing and supply chain challenges. The company's valuation at 23x earnings suggests a premium, but the forward P/E ratios indicate potential for continued growth if current strategies are maintained. The balance sheet has improved with reduced net debt, but as a microcap, the stock remains volatile with a thin margin for error.

Pitch Summary:
Freightos Limited is positioned to drive digital innovation in the freight booking industry by providing a centralized, scalable platform that simplifies the traditionally manual process. Despite a decline in stock value since its initial coverage, the company has shown growth in transactions and booked value, indicating potential for future revenue growth. The company's revenue model, heavily reliant on SaaS and data subscriptions, provides some insulation against fluctuations in freight rates. With expectations of reaching positive EBITDA by 2026 and a projected 22% upside in stock price, Freightos presents a speculative buy opportunity. However, risks remain, particularly related to platform revenue growth amid depressed freight rates.

BSD Analysis:
Freightos' business model capitalizes on the digital transformation of the freight industry, offering a platform that connects supply and demand for freight capacity. The company's revenue is primarily driven by SaaS and data subscriptions, which are less sensitive to freight rate volatility. However, platform revenues, which constitute a third of total revenues, are directly impacted by freight rate changes. The company's growth strategy hinges on increasing transaction volumes and benefiting from a recovery in freight rates. Freightos' ability to reach positive EBITDA by 2026 is contingent on maintaining its current growth trajectory and managing operating expenses effectively. The speculative nature of the investment is underscored by the potential for volatility in freight rates, which could impact revenue growth.

Pitch Summary:
Relevant Gold Corp. offers investors the potential to discover significant gold deposits in the Wyoming Province, analogous to the Abitibi Gold Belt. The company's extensive land holdings along the Oregon Trail Structural Belt provide a promising exploration opportunity. Recent drilling at the Apex target has confirmed the presence of a significant orogenic shear-vein system. With favorable geology and promising initial results, Relevant Gold presents a high-risk, high-reward opportunity for investors seeking exposure to junior gold mining.

BSD Analysis:
Relevant Gold's strategic focus on the Wyoming Province leverages the region's geological similarities to the prolific Abitibi Gold Belt. The company's exploration efforts have yielded promising results, with high-grade gold and base metal samples. As drilling progresses, the potential for significant discoveries increases, offering substantial upside for investors. The company's early-stage exploration status presents risks, but the potential rewards are considerable. Investors with a high-risk tolerance may find Relevant Gold's exploration potential appealing.

Pitch Summary:
Red Cat Holdings Inc. is well-positioned to capitalize on the growing demand for next-generation defense systems. The company's focus on drones and unmanned systems aligns with increasing defense budgets and the Pentagon's Blue UAS initiative. Red Cat's Teal Drones and FlightWave products are gaining traction, with the Teal 2 and Black Widow platforms leading the way. Despite recent profitability challenges, the company's aggressive investment in production and engineering supports future growth. With a strong order book and favorable industry trends, Red Cat offers significant upside potential.

BSD Analysis:
Red Cat's strategic positioning within the Blue UAS ecosystem provides a competitive advantage in the defense sector. The company's focus on secure, cyber-trusted drones aligns with defense priorities, enhancing its market appeal. Red Cat's recent revenue growth reflects strong demand for its products, and management's focus on scaling production supports future expansion. The company's entry into unmanned surface vehicles further diversifies its product offerings. As defense budgets continue to rise, Red Cat is well-positioned to benefit from increased spending on next-gen systems.

Pitch Summary:
QuickLogic Corp. is positioned for rapid growth in the FPGA semiconductor market. The company's technology allows for field upgrades, providing flexibility and cost savings in product development. With a focus on military and aerospace applications, QuickLogic's radiation-hardened technology is gaining traction. CEO Brian Faith's leadership has repositioned the company for success, with a strong pipeline of consumer product announcements expected. The FPGA market is projected to grow significantly, and QuickLogic's innovative solutions position it well to capture market share.

BSD Analysis:
QuickLogic's strategic focus on programmable logic and its ability to adapt to changing market demands provide a competitive advantage. The company's partnerships with major semiconductor manufacturers enhance its production capabilities. QuickLogic's financial model, characterized by high operating leverage, supports profitability as revenue grows. The company's focus on military and aerospace applications aligns with industry trends, offering significant growth potential. As the demand for customizable semiconductor solutions increases, QuickLogic is well-positioned to benefit from this trend.

Pitch Summary:
Prologis Inc. stands out as a growth-oriented investment in the logistics real estate sector. The company benefits from structural demand for logistics space, driven by inventory management and supply chain reconfiguration. Despite economic cycles, Prologis maintains high occupancy rates and strong cash rent spreads. Its investment-grade balance sheet and development pipeline support continued growth. With a 3.2% dividend yield and a history of dividend increases, Prologis offers both income and growth potential, making it an attractive investment in the real estate sector.

BSD Analysis:
Prologis's strategic positioning in high-barrier markets and its scale advantage provide a competitive edge in the logistics real estate sector. The company's ability to maintain high occupancy and strong rent spreads reflects its market leadership. Prologis's robust balance sheet and liquidity position enable it to capitalize on growth opportunities and navigate economic uncertainties. As e-commerce and supply chain optimization continue to drive demand for logistics space, Prologis is well-positioned to benefit from these trends. Investors seeking a blend of income and growth may find Prologis appealing.

Pitch Summary:
Platinum Group Metals Ltd. is poised for growth as platinum prices rise and supply deficits persist. The company focuses on platinum and palladium exploration, with significant operations in South Africa. The platinum market faces supply challenges, but demand is increasing across automotive, chemical, and investment sectors. PLG's Waterberg project, with substantial resources, is advancing with a recent feasibility study. The company's strategic partnerships for smelting and refining in Saudi Arabia could enhance processing capabilities, supporting its growth trajectory.

BSD Analysis:
Platinum Group Metals is well-positioned to capitalize on the rising demand for platinum, driven by automotive and industrial applications. The company's Waterberg project offers significant resource potential, and its strategic partnerships could mitigate processing challenges. Despite current losses, PLG's financial position is improving, with shrinking losses and advancing projects. The global shift towards cleaner technologies and the increasing use of platinum in various industries provide a favorable backdrop for PLG's growth. Investors seeking exposure to precious metals may find PLG's potential appealing.