Investment Pitches

Pitch Summary:
Founded in 2003, Palantir is an enterprise software and AI platform company that builds systems that enable large organizations (governments, defense agencies, and enterprises) to integrate, analyze, and act on complex data through custom applications and workflows. Organizations are overwhelmed by vast amounts of data trapped in siloed, disparate systems, but they lack the connective tissue to operationalize that data into decisions and automated workflows. Palantir's software creates connective tissue by layering a proprietary Ontology (a structured, real-time data model that maps objects, relationships, and business logic) on top of enterprise data sources, which then powers applications, agents, and other AI-powered use cases. Ontologies can be a heavy upfront lift, but they become a source of competitive advantage to the customer, enable accelerated time to value in an organization, and create stickiness with Palantir's products. We believe Palantir's competitive advantages include its technology, go-to-market motion, and high switching costs once the company is embedded in an enterprise. We believe the current share price does not reflect the long-term earnings power of the company.

BSD Analysis:
The manager initiated a position in Palantir, viewing the company as uniquely positioned to solve enterprise data integration challenges through its proprietary Ontology platform. Founded in 2003, Palantir serves governments, defense agencies, and enterprises by creating connective tissue between siloed data systems to enable operational decision-making and automated workflows. The company's core differentiator is its structured, real-time data model that maps objects, relationships, and business logic across enterprise data sources. While Ontology implementation requires significant upfront investment, it creates competitive advantages for customers, accelerates time-to-value, and generates high switching costs that benefit Palantir's retention. The manager believes Palantir's competitive moat stems from superior technology, effective go-to-market execution, and high customer switching costs once embedded in enterprise workflows. Current valuation appears disconnected from the company's long-term earnings potential as organizations increasingly prioritize data operationalization and AI-powered decision-making capabilities.

Pitch Summary:
McKesson Corporation (MCK; Healthcare; 1.19%***) – McKesson provides drug distribution and IT services to healthcare providers and pharmaceutical manufacturers in North America (U.S. and Canada). The company distributes branded and generic pharmaceuticals, medical-surgical supplies, and related services to healthcare providers, independent and retail chain pharmacies, and mail order facilities. The company's Prescription Technology Solutions (PTS) segment provides third party logistics, affordability, and access solutions to biopharma, retail pharmacy, and healthcare providers. We believe the company has successfully revamped its portfolio over the past decade to higher margin and faster growth businesses, which we believe will lead to a more sustainable and higher growth algorithm than peers. We are attracted to the company's competitive position in an oligopolistic market, network effects in its PTS segment, and management's history of strong capital allocation. We believe the current share price does not adequately reflect the longer-term cash flow generation potential of the business.

BSD Analysis:
The manager initiated a position in McKesson based on the company's successful portfolio transformation toward higher-margin, faster-growth businesses over the past decade. McKesson operates in drug distribution and IT services across North America, serving healthcare providers, pharmacies, and pharmaceutical manufacturers. The Prescription Technology Solutions segment provides logistics, affordability, and access solutions with attractive network effects. The manager believes this portfolio evolution will drive a more sustainable and superior growth algorithm compared to peers. Key investment attractions include McKesson's competitive position in an oligopolistic market structure, network effects within the PTS segment, and management's demonstrated capital allocation discipline. The manager views current valuation as not adequately reflecting the company's long-term cash flow generation potential, suggesting meaningful upside as the market recognizes the transformed business model and improved growth profile.

Pitch Summary:
Shares of Eaton Corporation plc (ETN; 2.59%***) moved higher after reporting quarterly results that were largely in-line with consensus estimates. Management's sequential guidance of +5% to +7% organic top-line growth missed consensus (+7.6%). Demand remains strong (orders +50% YoY and datacenter orders +200% YoY). Increased costs are weighing on near-term margins, however, as the company ramps to meet accelerating demand. The backlog of projects is impressive: $3 trillion of megaprojects announced since 2021 ($937 billion announced in 2025) and 54% of the new projects are datacenters. The company's Boyd acquisition (expected to close in the second quarter) bolsters ETN's datacenter cooling capabilities and expands ETN's accessible market from $2.9 million/megawatt to $3.4 million/megawatt. We remain positive on shares.

BSD Analysis:
The manager maintains a positive outlook on Eaton despite mixed quarterly results and guidance that missed consensus expectations. While organic growth guidance of 5-7% fell short of the 7.6% consensus, underlying demand metrics remain robust with total orders up 50% year-over-year and datacenter orders surging 200%. The company faces near-term margin pressure from increased costs as it scales to meet accelerating demand, but this reflects strong end-market dynamics rather than fundamental weakness. The project backlog is substantial at $3 trillion since 2021, with $937 billion announced in 2025 alone, and 54% of new projects are datacenters. The pending Boyd acquisition enhances Eaton's datacenter cooling capabilities and expands the addressable market per megawatt from $2.9 million to $3.4 million. The manager views current execution challenges as temporary growing pains in a compelling long-term growth story driven by datacenter infrastructure buildout.

Pitch Summary:
Shares of ASML Holding N.V. (ASML; 3.46%***) rallied after the company reported solid 4Q25 results. Revenue of €9.7b (+29% QoQ, +5% YoY) modestly beat consensus estimates of €9.6b as strength in services (upgrades) and foundry offset slower memory shipments. Bookings of €13b meaningfully topped consensus estimates (€7.5b) driven by leading edge EUV (Extreme Ultraviolet) bookings of €7.4b. Management's CY26 revenue guidance range was wide (+4% to +19%), reflecting the potential timing of deliveries (2026 or 2027), but it is much better than a quarter ago when management said "we do not expect 2026 total net sales to be below 2025." Investor sentiment has improved meaningfully over the last quarter due to strong capex guidance by TSMC, increasing DRAM pricing, and acknowledgement capacity constraints exist at ASML's largest customers. In our view, demand remains robust for ASML as the lone provider of leading-edge lithography, critical to future chip production. We remain positive on shares.

BSD Analysis:
The manager is bullish on ASML following strong quarterly results that demonstrated the company's monopolistic position in advanced lithography. Revenue of €9.7 billion beat estimates driven by services and foundry strength, while bookings of €13 billion significantly exceeded the €7.5 billion consensus, led by €7.4 billion in leading-edge EUV orders. Management's 2026 guidance range of +4% to +19% reflects delivery timing uncertainty but represents a marked improvement from prior cautious commentary. Investor sentiment has recovered due to TSMC's strong capex guidance, rising DRAM pricing, and recognition of capacity constraints at major customers. The manager emphasizes ASML's unique position as the sole provider of leading-edge lithography equipment essential for future chip production. This monopolistic advantage in a critical semiconductor manufacturing process underpins the bullish investment thesis despite cyclical industry dynamics.

Pitch Summary:
Shares of Boston Scientific Corporation (BSX; 2.05%***) moved lower during March after the company reported disappointing quarterly results in early February, and the company presented data from the highly anticipated CHAMPION-AF trial at the end of March. Though BSX modestly beat top and bottom-line consensus estimates, the company's two key growth franchises (U.S. Electrophysiology and Watchman) missed expectations. Management lowered 2026 organic sales growth guidance to a range of +10-11%. BSX continues to garner the majority of sales in electrophysiology, but overall market growth is decelerating, and competition may be taking some market share. While Watchman growth was strong (+29% organically in the quarter), results missed consensus estimates. The durability and growth trajectory for Watchman is a focus for investors, and although CHAMPION-AF data released at the end of the month hit all endpoints, they failed to act as a positive catalyst for BSX shares. Though we recognize the timing and magnitude of WATCHMAN contribution may not be resolved in the near-term, we believe current valuation may have overly discounted the company's long-term earnings growth profile. As we closely monitor the situation, we remain constructive on shares.

BSD Analysis:
The manager maintains a constructive view on Boston Scientific despite recent disappointments in key growth drivers. While the company beat consensus estimates, core franchises in U.S. Electrophysiology and Watchman underperformed expectations, leading to reduced 2026 organic growth guidance to 10-11%. The electrophysiology market is experiencing deceleration and increased competition, while Watchman's 29% organic growth still missed estimates. The CHAMPION-AF trial data met all endpoints but failed to catalyze shares, highlighting investor concerns about Watchman's durability. The manager believes the market has overly discounted Boston Scientific's long-term earnings potential given current valuation levels. Despite near-term uncertainty around timing and magnitude of Watchman contributions, the manager sees the sell-off as creating an attractive entry point for a quality medical device franchise.

Pitch Summary:
Shares of ServiceNow, Inc. (NOW; 2.60%**) moved lower despite reporting solid quarterly results in late January. Operating margin (33.5%) and EPS (+30% YoY) topped consensus estimates, and cRPO (current Remaining Performance Obligations) grew 20.5% (vs. guidance of +18%). Management's sequential forward guidance for cRPO was only in-line with consensus estimates, however, and provided ammunition for bears to posit NOW's three recent acquisitions (Armis, Moveworks and Veza) were a signal that organic growth may be slowing. While we believe the organic growth outlook remains healthy and that all three acquisitions are good strategic fits that help expand NOW's TAM (Total Addressable Market) and differentiation, the rise of agentic AI led to an abrupt market sell-off in many SaaS (Software-as-a-Service) stocks, including NOW. The market's current view is that well-funded AI labs such as Anthropic and OpenAI will allow enterprises to bypass specialized software, thus reducing the need for NOW's offerings. Though we recognize the industry is shifting away from seat-based to consumption-oriented pricing structures, we believe the complexity and switching costs for an enterprise migration is misunderstood by the market. Our view remains that NOW is strongly positioned to capitalize on AI monetization given its role as the system of engagement across enterprise workflows. While still somewhat early, NOW's monetization of AI offerings is impressive (closed 12 Now Assist deals over $1 million in ACV during the quarter, Agent Assist consumption grew 55x since the launch in May 2025, and $600 million ACV for Now Assist). We remain constructive on shares.

BSD Analysis:
The manager maintains a bullish stance on ServiceNow despite recent share price weakness, viewing the sell-off as an overreaction to AI disruption concerns. The company delivered strong fundamentals with 33.5% operating margins, 30% EPS growth, and 20.5% cRPO growth that exceeded guidance. While the market fears AI labs will disintermediate specialized software, the manager believes ServiceNow's enterprise workflow positioning and high switching costs create defensibility. The company's AI monetization progress is notable, with $600 million in Now Assist ACV and 55x growth in Agent Assist consumption. Recent acquisitions (Armis, Moveworks, Veza) expand the total addressable market despite market concerns about organic growth deceleration. The manager views current valuation as attractive given ServiceNow's competitive moat and AI transformation opportunity.

Pitch Summary:
CoreWeave has demonstrated strong operational execution, achieving a billing inflection point with 243MW generating over $350M in annualized colo GAAP revenue. The company successfully closed a $3.3B project bond, enhancing its liquidity and capital deployment flexibility. However, the expiration of a 500MW hyperscaler exclusivity without a signed contract raises concerns about its commercial strategy. The market's reaction reflects this uncertainty, with initial gains from the bond close being offset by the lack of a new customer contract. CoreWeave's value hinges on securing additional customers to diversify its revenue base, and the timing of these contracts remains a critical factor for investors.

BSD Analysis:
CoreWeave's innovative bond structure allows for corporate-level capital redeployment, positioning it advantageously against competitors who must wait for contracts before building. The expiration of exclusivity with one hyperscaler, while initially negative, has led to engagement with three potential customers, potentially increasing CoreWeave's negotiating leverage. The company's upgraded margin profile to 80–85% cash gross profit signals operational efficiency and credibility. Despite these positives, the absence of a second customer contract continues to test investor patience, and the market may begin to discount future opportunities if no contracts are signed by Q3 2026. CoreWeave's proactive investment in site development and labor resources provides a competitive edge in the constrained construction market.

Pitch Summary:
DigitalOcean reported a transformative quarter with accelerated revenue growth and significant increases in AI Customer ARR and large customer ARR. The company has secured additional data-center capacity, which supports a revised 2027 revenue growth expectation of over 50%. The strategic shift towards AI-native cloud services positions DigitalOcean to capitalize on high-return capacity deployment. The stock's valuation reflects confidence in the company's ability to maintain pricing power and expand its AI services beyond commodity GPU leasing.

BSD Analysis:
DigitalOcean's repositioning as an AI capacity allocator marks a significant evolution from its traditional developer cloud model. The company's ability to secure 60 MW of incremental data-center capacity underscores its commitment to scaling its AI infrastructure. However, the fixed-cost obligations associated with this expansion introduce risks, particularly if demand or pricing falters. The market's reaction to the company's guidance and AI ARR growth suggests optimism, but the current valuation leaves little room for execution missteps. Investors should monitor the company's ability to sustain its growth trajectory and manage its lease obligations effectively.

Pitch Summary:
Lamar Advertising Company has shown strong performance, with shares gaining 26% over the past year and reaching a new 52-week high. The company reported robust Q1 2026 results, with earnings per share of $1.00, beating estimates by $0.18, and revenue growing over 4% to $528 million. The outdoor billboard market, where Lamar operates, is recognized as a durable niche in advertising, with Lamar benefiting from both national and local advertising strength. The company's digital billboards, which now account for 30% of its business, are significantly more productive than traditional ones, contributing to revenue growth. Lamar's strategic acquisitions and strong balance sheet provide further growth opportunities, with management maintaining a bullish outlook for the year.

BSD Analysis:
Lamar's financial health is underscored by its strong balance sheet, with $3.5 billion in total debt and leverage at just 3x, allowing for substantial flexibility in pursuing M&A or share buybacks. The company's focus on converting analog billboards to digital ones is a key growth driver, enhancing revenue productivity. Despite macroeconomic uncertainties, Lamar's conservative guidance approach and structural resilience suggest it is well-positioned to exceed its AFFO guidance range of $8.50-$8.70 for 2026. The company's dividend yield of 4.4% is secure, supported by strong cash flow and a history of annual increases. Lamar's strategic positioning in a fragmented market, coupled with its aggressive acquisition strategy, positions it for continued growth and a potential 10% long-term return.

Pitch Summary:
SLB N.V. presents a compelling investment opportunity due to its strong technological focus and diverse service offerings in the energy sector. Despite recent challenges, such as geopolitical disruptions and declining segments, the company has shown resilience with solid earnings and revenue growth in its Digital and Production Systems segments. The acquisition of ChampionX has bolstered its revenue streams, and management's optimism for future growth, particularly in digital expansion, suggests a promising outlook. While the stock has underperformed compared to the S&P 500, its valuation remains attractive relative to peers, justifying a soft Buy rating.

BSD Analysis:
SLB's strategic shift towards technology and digital solutions positions it well for long-term growth, especially as the energy sector increasingly relies on data-driven decision-making. The company's ability to exceed revenue expectations and maintain profitability amidst market headwinds underscores its operational strength. The ongoing conflict in Iran poses short-term challenges, but management's focus on digital transformation and offshore project investments is likely to drive future growth. With a robust pipeline of projects and a strong balance sheet, SLB is well-equipped to capitalize on the anticipated recovery in oil and gas investments, making it a viable investment for those with a long-term horizon.

Pitch Summary:
Hercules Capital (HTGC) is currently undervalued due to market volatility in the private lending sector, presenting a buying opportunity. Despite a challenging environment, HTGC's Q1 2026 results were strong, with net interest income (NII) increasing by 7% and covering dividends by a wide margin. The company's P/NAV ratio has narrowed to 1.38x, indicating potential for price appreciation. HTGC has secured a record $1.81 billion in commitments, focusing on biotechnology and pharmaceuticals, with plans to expand into defense and space technologies. The company's internal management model and diversified revenue streams, including warrants, enhance its financial resilience.

BSD Analysis:
HTGC's strategic focus on tightening underwriting standards and diversifying its portfolio is expected to yield long-term benefits. The company's credit rating is improving, with a significant reduction in high-risk loans. HTGC's internal management model aligns management incentives with shareholder interests, promoting cost efficiency and profit growth. The venture lending model provides additional revenue through warrants, which could be lucrative if borrower companies go public. Despite concentration risks in the software sector, HTGC's low default rate and proactive management mitigate potential downsides. Overall, HTGC remains a compelling investment for income-focused investors.

Pitch Summary:
JOYY Inc. is projected to net $415.02 based on the median of target price estimates from analysts. The company's Beta indicates a risk/volatility profile 58% below the market average, suggesting a stable investment with potential for growth. As a leader in the social media space, JOYY is well-positioned to capitalize on increasing user engagement and content monetization.

BSD Analysis:
JOYY's strong market presence and innovative platform offerings make it a standout in the social media industry. The company's ability to attract and retain users through diverse content is a key driver of its growth. With a lower volatility profile, JOYY presents a balanced risk-reward proposition for investors. The projected returns, coupled with the company's strategic initiatives in content monetization, underscore its potential for long-term success.

Pitch Summary:
Grown Rogue (OTC: GRUSF) is licensed across five states - Oregon, Michigan, New Jersey, Illinois, and Minnesota - but today it is using only 42% of its total production capacity. Two of those five states haven't produced a single pound of flower. A third state is at half its capacity. The company has been spending ahead of these opportunities and has yet to see the returns. The business investors see today is a half-built machine. The question isn't "what does Grown Rogue earn?" It's "what does Grown Rogue earn when the lights are on in every room?" Even at reasonably conservative prices, and an increase in current operating expenses, the company's economics are very attractive and are the reason the company is now guiding to returns on incremental invested capital of 75%. It has been painfully hard to be patient as Grown Rogue has retraced its big advance and has been under constant selling pressure from funds shutting down and few willing to do any work on the underlying unit level economics. All the while, Oregon and Michigan experienced a brutal price decline and New Jersey took longer than expected to fully activate. But the wait is almost over. The final phase of the New Jersey facility is under construction, and the facility will soon be at full capacity. Illinois and Minnesota are in active development, with first harvests expected to start contributing to 2026 and ramp through 2027. The company is turning the lights on a lot more cultivation capacity, and come this time next year, Grown Rogue should be a substantially larger and much more profitable company. At today's valuation, the market is pricing in what Grown Rogue earns at 42% utilization. It is not pricing in what the company earns when every cultivation room is running. That gap between $5M in EBITDA and $50M in EBITDA is the opportunity. And one final note on Grown Rogue is that if there is ever interstate commerce, Grown Rogue should be one of the big beneficiaries. They are selling cannabis in Oregon for $600 a pound and in Michigan for $800, which would command much greater prices in other states. Also, they can grow a lot more outdoor cannabis in the Rogue Valley in Oregon, where conditions are perfect for growing outdoor cannabis. Not only is the full earnings power of Grown Rogue not being priced in, but the potential for interstate commerce is also not being priced in either.

BSD Analysis:
The manager presents Grown Rogue as a classic capacity utilization play, operating at only 42% of total production capacity across five licensed states. The investment thesis centers on the substantial earnings leverage as facilities come online, with management guiding to 75% returns on incremental invested capital. The company faces near-term headwinds from price declines in Oregon and Michigan, plus delayed activation in New Jersey, creating selling pressure and valuation compression. However, the manager sees this as a temporary mismatch between current earnings and full capacity potential. The EBITDA opportunity spans from $5M at current utilization to $50M at full capacity, representing 10x earnings growth potential. Additional upside exists from interstate commerce, where Oregon cannabis selling for $600/pound could access higher-priced markets. The timing appears favorable with New Jersey nearing full capacity and Illinois/Minnesota contributing starting in 2026.

Pitch Summary:
One of the companies that we think is going to be a big winner in this new future is LEEF Brands (OTC: LEEEF). LEEF Brands is California's largest cannabis extract manufacturer, producing concentrates like distillate for vapes, live resin and rosin and over 100 different forms of concentrates for leading California brands like Kiva, Heavy Hitters (Mammoth), Wyld, Rove, and Jetty. Research and due diligence have shown us that there is a pesticide problem in cannabis concentrates in California, and that investors are not aware of the severity of the problem. In 2024, an LA Times investigation exposed a widespread contamination crisis in the world's largest and most important cannabis market. Sixty percent of randomly sampled California cannabis products contained pesticides exceeding safety limits, including known carcinogens. Some vape cartridges tested positive for more than two dozen pesticide compounds. A follow-up investigation six months later found little had changed. The root cause is structural. California is America's agricultural heartland, and its conventional farms have applied heavy volumes of pesticides for decades. This leaves cannabis operations highly vulnerable to "pesticide drift"- winds carrying chemical residues from neighboring farms onto cannabis crops. The problem of pesticide drift is well-established in California and widely documented, including by official state agencies. As far back as 2019, the state officially confirmed that a cannabis harvest had been damaged by pesticide drift from a neighboring vineyard. Compounding the problem, cannabis is a powerful bio-accumulator that absorbs impurities and heavy metals from the soil. In fact, it is so effective at this that it was deployed to remediate the land around Chernobyl after the nuclear accident in Ukraine. In California, where now-banned pesticides were used extensively for decades, cannabis grown today may carry a legacy chemical burden from the soil itself, such as Chlordane - a pesticide that was banned in 1988 but has a long half-life. Further, we believe that there may not be enough of a consistent supply of low-cost cannabis biomass and concentrates that is clean of pesticides and heavy metals for the eventual national US market, for medical cannabinoid products that may get medical reimbursement and for the very strict export market into Europe. We think that the activation of LEEF's Salisbury Canyon Ranch (SCR), a 1,900-acre property in remote northeastern Santa Barbara County in California is a key catalyst for LEEF. The immediate result is lowering LEEF's own cost by up to 80% from purchasing biomass for $25 to $50 a pound and instead producing that biomass itself for $8 per pound. To show how much of a key catalyst this was, LEEF's gross margins doubled upon turning on just 30% of SCR. We project LEEF's Adj EBITDA to grow from a small loss in 2025 to approximately $15M in 2027. On this alone and without interstate commerce or exports, we believe LEEF could be worth close to $0.40 per share, which could lead to our investment increasing by 200%+ in the next 12-18 months. But an even more exciting future awaits as the company builds a platform that can produce any cannabinoid input at a cost, quality and scale that is unmatched in cannabis. The company at scale should one day be able to produce over 70 million grams of distillate. That's enough to supply 60% of California's vape market at a price no one else can match. Consider that in California, LEEF is selling distillate for $1 a gram. That same gram sells for $4 in New York, $6 in Massachusetts and $8 in New Jersey. Our analysis leads us to the believe that with the opportunity of interstate commerce or the ability to export, this microcap company has the chance to be worth more than $1 billion, versus its sub-$100 million enterprise value. In a scenario where the company could supply products to more lucrative national or overseas markets, it is possible that our investment has the potential to increase by more than ten times.

BSD Analysis:
The manager presents a compelling thesis for LEEF Brands based on a structural competitive advantage in pesticide-free cannabis production. The investment case centers on LEEF's ability to solve California's widespread pesticide contamination problem through vertical integration at their Salisbury Canyon Ranch facility. The activation of this 1,900-acre facility represents a transformative catalyst, reducing input costs by 80% and doubling gross margins with only 30% utilization. The manager projects EBITDA growth from losses to $15M by 2027, supporting a $0.40 price target representing 200%+ upside. The long-term opportunity appears even more compelling, with potential for 10x returns if interstate commerce enables access to higher-priced markets where distillate sells for $4-8 per gram versus $1 in California. The company's scale potential of 70 million grams could capture 60% of California's vape market at unmatched pricing.