Investment Pitches

Pitch Summary:
Rollins, Inc. (ROL) was a leading contributor to full-year performance as the company continued to demonstrate defensive growth characteristics. The firm posted consistent organic revenue gains, supported by strong pricing power and recurring service contracts. Commercial organic growth accelerated and incremental margins remained attractive. Management also increased the quarterly dividend, highlighting confidence in cash flow durability. We view Rollins as a high-quality compounder capable of delivering steady earnings growth across economic environments.

BSD Analysis:
Rollins dominates pest control through brand, density, and route efficiency. Demand is non-discretionary and recurring. Pricing power exists because pests don’t care about recessions. Scale improves technician productivity and margins. Investors call it boring — correctly. But boring compounds when cash flow is predictable. Acquisitions extend reach without breaking culture. Capital allocation is disciplined. This is service infrastructure with monopoly-like economics.

Pitch Summary:
Repligen Corp. (RGEN) was among the largest contributors as evidence mounted that bioprocessing destocking had bottomed. Order trends stabilized during the quarter, improving visibility into 2026 growth. Management’s disciplined cost controls drove operating leverage expectations higher. Investors began to re-rate the stock as focus shifted away from near-term volatility toward Repligen’s high-quality consumables mix and strong competitive positioning. We continue to view Repligen as a long-term beneficiary of biologics and advanced therapy growth.

BSD Analysis:
Repligen supplies mission-critical components for biologics manufacturing, sitting upstream of drug pipelines. Demand softened as biotech funding slowed, hurting volumes. But complexity in biologics keeps barriers high. Switching suppliers risks contamination and downtime. Margins reflect technical depth, not scale hype. Investors confuse cyclical destocking with secular erosion. As biologics rebound, Repligen benefits disproportionately. Operating leverage is meaningful. This is a life sciences tollbooth in a pause, not decline.

Pitch Summary:
Jack Henry & Associates, Inc. (JKHY) was a top contributor during the quarter as the market gravitated toward essential, stable growth businesses with low economic sensitivity. The company reported solid fiscal first-quarter results, highlighted by steady top-line growth and continued success in winning contracts for its modernization solutions. Despite ongoing consolidation pressures within banking, JKHY continues to demonstrate strong client retention and long-duration customer relationships. Management execution reinforced confidence in the firm’s ability to deliver predictable earnings growth. We view Jack Henry as a mission-critical infrastructure provider within financial services, well positioned to compound earnings through cycles.

BSD Analysis:
Jack Henry is embedded in the core systems of community banks and credit unions, making it painfully hard to replace. Growth is slow, but revenue is sticky and predictable. Compliance complexity strengthens its moat. Digital add-ons expand wallet share over time. Investors worry about fintech disruption. Yet ripping out core processing is a career-ending move for bank CIOs. Margins reflect long-term contracts. Capital returns are steady. This is financial plumbing that compounds quietly.

Pitch Summary:
Oddity Tech Ltd. (ODD) is a consumer technology platform built to transform the global beauty and wellness industry. The company has scaled rapidly, achieving greater than 20% operating margins while still growing revenue by greater than 20% to an estimated $800 million in 2025. ODD is founder-led, monetizes entirely through direct-to-consumer channels, and leverages AI-driven product development and customer engagement.

BSD Analysis:
Oddity blends data, AI, and direct-to-consumer beauty in a way legacy brands struggle to copy. The company owns the customer relationship end-to-end, improving product iteration and margins. Growth remains strong even as digital advertising becomes harder. Inventory and fulfillment are controlled tightly. Investors fear beauty cyclicality. But personalization and speed create differentiation. International expansion adds optionality. Profitability proves this isn’t growth theater. This is consumer tech wearing a cosmetics label.

Pitch Summary:
Electrovaya, Inc. (ELVA) traded higher as order activity strengthened and progress toward commercial scale improved revenue visibility. Advancements in customer adoption and manufacturing execution supported optimism around future growth. The market responded positively to their differentiated battery technology and increasing exposure to electrification trends across material handling and industrial end markets.

BSD Analysis:
Electrovaya builds lithium-ion batteries for industrial and commercial applications, not consumer hype. Safety and durability matter more than energy density in its niches. Customer wins validate the technology, but scaling manufacturing remains the hurdle. Cash burn and funding risk loom large. Investors price in execution failure. If production ramps smoothly, upside is nonlinear. Demand for electrified industrial equipment is real. This is not Tesla cosplay — it’s industrial electrification. High risk, high torque.

Pitch Summary:
Bowman Consulting Group, Ltd. (BWMN) suffered after reporting weaker-than-expected third quarter revenue results which weighed on investor sentiment in what had been a strong year-to-date performer. Shares retraced gains following a revenue miss despite an earnings beat, and subsequent insider selling activity in December contributed to negative sentiment. We remain focused on BWMN’s long-term opportunity to consolidate the fragmented engineering services market.

BSD Analysis:
Bowman is a professional services consolidator benefiting from infrastructure and land development spending. Its model relies on local expertise stitched together under a national platform. Growth comes from tuck-in acquisitions and backlog conversion. Margins are steady, not spectacular. Investors worry about integration risk and labor costs. Yet demand visibility is better than most cyclicals. Public infrastructure funding supports long-duration work. This is roll-up execution, not innovation. Consistency is the edge.

Pitch Summary:
i3 Verticals, Inc. (IIIV) sagged after providing lower than expected near-term guidance in their quarterly results. Management cited timing delays in project implementations within utilities and transportation verticals. While the near-term outlook disappointed the market, we believe the longer-term outlook remains bright given their positioning for strong recurring revenue growth.

BSD Analysis:
i3 Verticals targets vertical-specific payments and software niches others ignore. That focus creates stickier customers and better pricing power. Government and healthcare end markets provide stability but slow sales cycles. Growth is incremental rather than explosive. Investors punish the stock for lack of narrative excitement. Yet recurring revenue continues to build quietly. Integration execution is the key risk. If churn stays low, valuation looks undemanding. This is boring fintech infrastructure doing exactly what it should.

Pitch Summary:
Vita Coco Co., Inc. (COCO) rose 25% in the quarter and posted stronger than expected third-quarter results, evidencing both its leadership in its category and its ability to translate brand strength into consistent cash generation. Shares advanced as brand momentum remained strong and revenue growth outpaced expectations. Improved pricing discipline and cost efficiencies supported margin expansion, while international and adjacent product growth enhanced the outlook. Investors rewarded the company’s category leadership.

BSD Analysis:
Vita Coco owns the coconut water category in a way competitors struggle to dent. Brand recognition converts directly into shelf dominance and pricing power. Input cost volatility creates margin noise, but demand remains sticky. Expansion into adjacent hydration products extends the runway. Investors fear beverage fads for good reason. Yet coconut water has proven staying power across cycles. Asset-light manufacturing improves flexibility. Cash flow supports reinvestment and buybacks. This is category leadership masquerading as a niche drink play.

Pitch Summary:
Mama’s Creations, Inc. (MAMA) surged 28% in the quarter, driven by strong revenue growth and execution on its strategy to capture market share through new product placements at major retailers like Costco and Target. Shares surged in December after the company announced a 50% year-over-year increase in quarterly revenue, fueled by both organic gains and the successful integration of the Crown 1 acquisition. Adjusted EBITDA more than doubled as the company leveraged its expanded manufacturing footprint. We view this execution as validation of their strategy.

BSD Analysis:
Mama’s Creations is a refrigerated prepared-food brand benefiting from consumers trading time for convenience. The products sit at the intersection of indulgence and practicality, which drives repeat purchases. Distribution gains matter more than brand buzz. Margins improve with scale as manufacturing efficiency kicks in. Investors dismiss it as a fad food name. Yet fresh prepared food continues to outgrow center-aisle categories. Execution and shelf placement are the swing factors. If velocity holds, earnings compound quickly. This is small-brand optionality with real consumer pull.

Pitch Summary:
IRadimed Corp. (IRMD) rose 28% after delivering record third quarter results and announcing a special cash dividend. The company delivered record third-quarter revenue and earnings, prompting management to raise full-year guidance. This strong operational performance, combined with the announcement of a special cash dividend, underscored the company's financial health and commitment to shareholder returns. We believe IRMD’s niche leadership and innovative product pipeline continue to offer a compelling growth trajectory.

BSD Analysis:
IRadimed operates a near-monopoly in MRI-compatible patient monitoring, a niche hospitals cannot ignore. Its equipment is mission-critical, regulated, and deeply embedded in clinical workflows. Competition is minimal because the technical and regulatory barriers are brutal. Revenue can be lumpy due to hospital capex timing, but margins are exceptional. Investors overlook IRadimed because the TAM looks small on slides. In practice, niche dominance beats broad mediocrity. Expansion into adjacent MRI-safe devices adds optionality. Cash generation is strong relative to size. This is quiet monopoly economics hiding in plain sight.

Pitch Summary:
Planet Labs PBC (PL) was a standout performer again, rising over 51% in the quarter on back of stronger than expected revenue growth and profitability in the third quarter, as well as a record reported backlog. PL provided accelerating revenue growth of 33% and its fourth consecutive quarter of adjusted EBITDA profitability. Investors responded positively to a record backlog, which grew over 200% year-over-year, driven largely by expanding contracts in the defense and intelligence sectors. We remain encouraged by PL’s business model transition from a capital-intensive buildout phase to one of scalable, high-margin data generation.

BSD Analysis:
Planet Labs sells persistent Earth observation, not pretty satellite photos, and that distinction matters. Its daily global imaging creates a proprietary dataset that compounds in value as history stacks up. Governments, agriculture, and defense users care about change detection, not resolution bragging rights. Revenue growth has been slower than early hype suggested, testing investor patience. But switching costs rise as customers integrate Planet’s data into workflows and models. The balance sheet limits room for error, forcing discipline. Investors price Planet like a busted space SPAC. In reality, it’s data infrastructure still early in monetization. If usage scales, operating leverage is real.

Pitch Summary:
We reinitiated a position in bar-code manufacturer, Zebra Technologies (ZBRA). The company’s brand strength, distribution network and commitment to innovation enable it to take share, earn industry-leading profitability and penetrate new markets. We view this as an excellent opportunity to buy a wide-moat technology leader positioned to benefit from secular trends in operational and supply chain efficiency.

BSD Analysis:
Zebra sells hardware and software that track, scan, and manage physical assets in real time. Demand ties to logistics, retail automation, and labor efficiency. Cyclicality hits orders, but relevance keeps rising. Software mix improves margins over time. Investors fear hardware commoditization. Zebra’s ecosystem and integration reduce churn. As supply chains modernize, data capture becomes mandatory. Cost resets are restoring profitability. This is industrial tech with secular legs.

Pitch Summary:
We bought specialty insurance company, RLI Corp. (RLI). RLI is differentiated by its expertise in niche markets and disciplined underwriting focus, having generated underwriting profits for 29 consecutive years. While near-term headwinds exist from soft pricing and inflation, we believe RLI’s disciplined underwriting positions the company to navigate the cycle and sustain long-term earnings growth.

BSD Analysis:
RLI is a specialty insurer built around underwriting discipline rather than growth theatrics. The moat is niche focus—small, specialized lines where expertise and pricing judgment matter more than scale. Management has consistently prioritized combined ratio performance over premium growth, which is why RLI survives cycles that wipe out less disciplined peers. Investment income is a tailwind, but underwriting profitability is the real engine. The risk is competitive capital flooding niche markets when returns look too good. Cat exposure exists but is generally controlled through diversification and limits. The bull case is continued hard-market pricing with disciplined capacity deployment. The bear case is softening rates that tempt insurers to chase volume. RLI compounds quietly by saying “no” more often than competitors say “yes.”

Pitch Summary:
Also during the quarter, we purchased leading information services provider, FactSet Research Systems, Inc (FDS). The company’s data and analytics are highly embedded into buy side and sell side workflows, creating high switching costs. Recent pressure reflects fears around artificial intelligence, which we believe are overblown. We expect FactSet’s predictable and profitable profile to be enhanced by advanced features and internal efficiencies.

BSD Analysis:
FactSet is mission-critical financial infrastructure embedded into daily investment workflows. Switching costs are cultural as much as technical. Growth is steady, retention elite, and margins durable. Market volatility increases usage intensity. Investors compare it to flashier SaaS names and miss durability. Incremental content drives operating leverage. Capital needs are minimal. This is data toll-booth economics. Quiet compounding beats loud growth.

Pitch Summary:
Lastly, Norwegian Cruise Line Holdings Ltd. (NCLH) shares fell as the cruise industry faces renewed skepticism following peer earnings and slowing yield growth. Despite near-term cost pressures, NCLH continues to show strength with record bookings, robust customer deposits and a solid forward-booked position. With healthy liquidity and a clear path to further balance sheet improvement, we believe NCLH is positioned for sustained profitability.

BSD Analysis:
Norwegian Cruise is a leveraged bet on experiential spending, and experiences keep winning wallet share. Pricing power has surprised as demand outpaces capacity. Costs remain elevated, but operating leverage is improving. Debt is high, which magnifies both upside and downside. Investors fear recession, but bookings remain resilient. Fleet upgrades support premium pricing. Cruising remains one of the cheapest luxury experiences per day. When sentiment turns, these stocks move violently. This is cyclical torque with improving fundamentals.

Pitch Summary:
Leading global manufacturer of power generation equipment, Generac Holdings, Inc. (GNRC) also traded lower on disappointing earnings results. Weakness was primarily in the residential business due to fewer power outages. On the positive side, the commercial segment continues to perform well and management emphasized strong long-term growth potential in the data center market. We believe Generac’s expanding commercial and industrial opportunities provide a compelling runway for growth and free cash flow generation.

BSD Analysis:
Generac rode an extreme demand spike and then paid the price when reality normalized. Backup power demand is cyclical, but grid instability is structural. Commercial and industrial segments diversify residential volatility. Inventory and margin resets hurt optics but reset the base. Investors extrapolate post-boom disappointment too aggressively. The installed base supports service and replacement revenue. Distributed energy systems add long-term optionality. This business sells insurance against failure. Failure is becoming more common.

Pitch Summary:
Alternatively, supplier of residential thermal, comfort and security solutions, Resideo Technologies, Inc. (REZI) declined following mixed earnings results and a guidance cut. Weakness was concentrated in the residential HVAC channel, impacted by regulatory-driven refrigerant changes and ERP-related costs. Despite short-term challenges, OEM sales, security, retail and e-commerce grew year-over-year and gross margins expanded for the tenth consecutive quarter. Management reiterated confidence in 2026 and highlighted the planned spin-off of ADI Global Distribution in the second half of 2026 as a value-unlocking catalyst.

BSD Analysis:
Resideo operates in home comfort, security, and controls — categories tied to maintenance, not discretionary upgrades. Its installed base creates recurring replacement demand. Margin pressure has exposed execution gaps, not demand issues. Channel relationships and distribution matter more than brand flash. Investors price Resideo like a declining hardware business. In reality, smart home retrofits extend relevance. Operational improvements drive earnings more than revenue growth. Housing cycles distort sentiment. This is a slow fixer with embedded demand.

Pitch Summary:
Additionally, specialty cutting tool insert maker, Kennametal, Inc. (KMT) traded higher after posting a strong earnings beat and raising full-year guidance. Organic growth was solid, supported by share gains, improving end markets, and favorable tungsten pricing. Margins exceeded expectations and the outlook for pricing remains positive. Meanwhile, KMT continues to maintain its commitment to shareholder returns via cash dividends, while executing on simplification and modernization initiatives.

BSD Analysis:
Kennametal supplies cutting tools that sit at the heart of industrial manufacturing efficiency. Demand tracks industrial activity, but replacement cycles provide a floor. Pricing power improves when customers prioritize uptime over pennies. Cost inflation has pressured margins, forcing restructuring. Investors extrapolate weak industrial cycles too far. Automation and reshoring support long-term relevance. Balance sheet discipline matters more than growth. When manufacturing rebounds, leverage is real. This is industrial cyclicality with survivability.

Pitch Summary:
Boutique asset manager, Affiliated Managers Group, Inc. (AMG) also advanced as the company continues to build momentum, with strong demand for differentiated, tax-aware investment solutions, particularly in the U.S. wealth channel. Affiliates like AQR are leading innovation in after-tax optimization strategies, reinforcing AMG’s position in liquid alternatives. Management is also reshaping its U.S. wealth platform, highlighted by the upcoming Brown Brother Harriman (BBH) partnership. Looking ahead, AMG expects meaningful earnings growth supported by record inflows into alternatives, contributions from recent investments, and disciplined capital allocation.

BSD Analysis:
AMG is a capital allocator masquerading as an asset manager, partnering with boutiques instead of forcing scale. Performance matters more than AUM gathering, which creates volatile optics but better long-term economics. Market cycles hurt earnings, but margins stay strong. Cash generation supports buybacks and selective reinvestment. Investors dislike the complexity and cyclicality. Boutique managers thrive in fragmented markets. AMG’s discipline differentiates it from roll-up disasters. When markets recover, leverage is immediate. This is asset management for owners, not marketers.

Pitch Summary:
Live entertainment, media and technology company, Sphere Entertainment Co. (SPHR) was the top contributor over the period, supported by strengthening business fundamentals due to robust consumer demand for The Wizard of Oz. Financial results continue to ramp as Sphere scales its concert residencies, attracts greater interest in immersive original films and drives higher utilization across show types. We believe the success of The Wizard of Oz will help accelerate discussions with partners for future Spheres, both in the U.S. and internationally. In our view, Sphere’s Las Vegas venue and its scalable franchise potential represent a compelling long-term opportunity for growth.

BSD Analysis:
Sphere is an experiential asset so unique that traditional valuation frameworks barely apply. The Las Vegas Sphere trades short-term losses for long-term cultural and commercial relevance. Fixed costs are enormous, which terrifies the market. That same fixed-cost base creates massive leverage as utilization improves. Advertising, branded content, and residency formats expand monetization beyond ticket sales. Replication potential exists, but scarcity is the feature, not the bug. Investors price Sphere like a bad venue rollout. In reality, it’s experiential infrastructure. Execution determines timing, not value.