Investment Pitches

Pitch Summary:
Tigo Energy, Inc. (TYGO) operates as a leading provider of intelligent solar and energy storage solutions, focusing on Module Level Power Electronics (MLPE) to maximize solar array performance. Their business model revolves around developing, manufacturing, and selling hardware (optimizers, inverters) and software (monitoring platforms) to installers and distributors globally. Prior to 2025, the solar industry had experienced multiple down years, especially in residential markets. With the increase in energy prices due to the Iran War, Solar's value proposition has improved significantly. We believe TYGO will benefit from this trend and as they remain the low cost provider for solar inverters. TYGO can continue to take share from Enphase Energy (ENPH) and SolarEdge Technologies (SEDG) who are growing slower and have more expensive valuations.

BSD Analysis:
GROW positions Tigo Energy as a beneficiary of the structural shift in energy markets following geopolitical disruption. The manager emphasizes TYGO's competitive positioning as the low-cost provider in solar inverters and Module Level Power Electronics, targeting market share gains from established players Enphase and SolarEdge. The Iran War's impact on oil prices (59% increase to $115/barrel) has fundamentally improved solar's value proposition after years of industry headwinds. TYGO's integrated hardware and software platform serving global installers and distributors provides diversified revenue streams and recurring monitoring income. The company's cost advantage becomes increasingly valuable as energy prices remain elevated and solar adoption accelerates. GROW sees this as a cyclical recovery play with secular tailwinds, where TYGO's operational efficiency and competitive positioning should drive outperformance versus slower-growing, more expensive competitors in an improving market environment.

Pitch Summary:
Paysign Inc. (PAYS) operates a vertically integrated prepaid card payment solutions and processing business, primarily serving the pharmaceutical and healthcare sectors. The company manages the entire prepaid card lifecycle—design, issuance, and processing—generating revenue through transaction fees, cardholder fees, program management fees, and funds breakage. Paysign stock had underperformed significantly in January and February due to AI fears and pharmaceutical disruption from the Trump Administration. On March 24th, PAYS reported their Q4 2025 Earnings which proved these fears to be overblown. They beat expectations significantly on the top and bottom lines as well as raised guidance for 2026. The stock remains inexpensive at 7x EV/EBITDA while growing revenues 40% last year. We believe this trajectory can continue as management executes. With their excess cashflow, we believe PAYS could begin paying a dividend or buying back shares to return capital to shareholders.

BSD Analysis:
GROW identifies Paysign as an undervalued fintech opportunity following market overreaction to AI and regulatory concerns. The manager highlights the company's vertically integrated prepaid card platform serving pharmaceutical and healthcare clients, generating diversified revenue streams from transaction fees, program management, and breakage. The Q4 2025 earnings beat and raised 2026 guidance validated the investment thesis, demonstrating resilience against feared disruptions. At 7x EV/EBITDA with 40% revenue growth, the valuation appears compelling relative to the growth profile. The company's strong cash generation positions it for potential shareholder returns through dividends or buybacks. GROW's contrarian positioning during the January-February selloff reflects their conviction in the underlying business fundamentals. The healthcare and pharmaceutical focus provides defensive characteristics while the payment processing model offers scalability and recurring revenue visibility.

Pitch Summary:
Buda Juice Inc. (BUDA) produces and distributes beverages made from organic fruits and vegetables. The company bridges the gap between shelf-stable products and operationally challenging in-store juicing. The product assortment includes juices, lemonades, limeades, and wellness shots. Buda Juice is known for no pasteurization, preservatives, GMOs, or artificial ingredients and is sold in the fresh department in supermarkets. In short, BUDA is creating a new ultra-fresh category within the supermarket. All products are produced and delivered in a continuous 35-degree Fahrenheit cold chain from farm to fridge. Currently, BUDA is produced and distributed in only Texas supermarkets including Costco, HEB, and Kroger. Last year, they generated about $12 million in annual revenue and $3.6 million in net income. The company is in the process of expanding capacity in Texas to $55 million by adding additional production lines. We believe Buda can be a $25 stock as the company executes just within Texas. We anticipate BUDA adding additional production and distribution locations in the Southeast U.S. and Southwest U.S. in the next 2 years, giving them capacity for up to $165 million in annual revenue. We believe Buda will be able to fill this expanded capacity with current and future retailer wins, none of which have fully scaled. The company's recent IPO at $7.50 was well received, and the IPO proceeds helped them fund the capacity expansion. Management and the Board of Directors remain significant shareholders of the company and in total own 65% after the IPO. The company has a long runway of growth, limited competition, and is under the radar for most investors due to having no sell side analyst coverage since their recent IPO. We view the story as similar to MAMA which has been a multi-bagger for GROW since owning from $2.50 to $15 per share over the last 2 years.

BSD Analysis:
GROW presents a compelling bull case for Buda Juice, highlighting the company's unique positioning in creating an ultra-fresh beverage category within supermarkets. The manager emphasizes BUDA's differentiated cold-chain distribution model and clean ingredient profile as key competitive advantages. With current operations limited to Texas generating $12 million in revenue and $3.6 million in net income, the company demonstrates strong profitability metrics. The planned capacity expansion to $55 million within Texas, followed by Southeast and Southwest expansion targeting $165 million in revenue capacity, provides a clear growth roadmap. Management's 65% ownership stake post-IPO aligns interests with shareholders, while the lack of sell-side coverage creates an information asymmetry opportunity. The manager's comparison to their successful MAMA investment (6x return from $2.50 to $15) suggests confidence in the execution potential. At a $25 target price versus the $7.50 IPO price, GROW sees significant upside as the company scales its unique market position.

Pitch Summary:
Holding company Aker ASA's exemplary track record of value creation via well-executed mergers, purchases, and sales of assets (energy-related and otherwise) is evidenced by the fact that its shares have returned roughly 27.7% per annum on average over the 10 years through March 2026 (in NOK terms), compared to a 14.6% return p.a. provided by the OBX Index in Oslo. While each of these holdings absolutely benefited from higher oil prices in Q1, we'd argue their ongoing value creation has been years in the making. Norwegian Holding Company (Aker ASA) that owns stakes in one of Norway's largest oil & gas producers (Aker BP) as well as a number of energy services businesses (among other assets).

BSD Analysis:
Aker ASA represents a compelling investment in Norwegian industrial expertise and value creation capabilities, with an exceptional long-term track record that significantly outperforms local market indices. The holding company's 27.7% annualized returns over ten years versus 14.6% for the OBX Index demonstrates management's skill in executing strategic transactions across energy and industrial sectors. Aker's portfolio includes substantial stakes in Aker BP, one of Norway's largest oil and gas producers, providing direct exposure to Norwegian energy assets with strong operational track records. The company's diversified approach spans energy services businesses and other industrial assets, creating multiple value creation opportunities through active portfolio management. Management's proven ability to execute well-timed mergers, acquisitions, and divestments has consistently unlocked shareholder value across market cycles. The current energy market dynamics provide additional tailwinds for Aker's energy-focused holdings, while the company's strategic positioning in stable Norwegian markets offers geopolitical advantages amid global uncertainties.

Pitch Summary:
Similarly, Tidewater used its offshore supply vessel industry-leading balance sheet to make three acquisitions of assets (with a fourth pending) from distressed and/or motivated sellers at deep discounts to replacement costs during a years-long industry depression, upgrading their fleet and footprint while generating synergies in the process. Tidewater has also been a leading performer during its multi-year holding period, despite oil having some years that were good (2022, 2026), some bad (2019-2020), and some in between. The Fund's offshore services providers would benefit from any newfound urgency among previously complacent countries to bolster their energy security by investing in energy infrastructure and capacity to reduce their reliance on supply from any one location.

BSD Analysis:
Tidewater exemplifies Moerus' investment philosophy of identifying companies with strong balance sheets that can capitalize on industry distress to build competitive advantages. The company's industry-leading financial position enabled it to acquire assets from distressed sellers at significant discounts to replacement costs during the prolonged offshore services downturn. Through three completed acquisitions and a fourth pending, Tidewater has systematically upgraded its fleet quality and expanded its geographic footprint while capturing operational synergies. The strategy has proven successful across varying oil price environments, demonstrating the durability of the business model beyond commodity cycles. The current geopolitical tensions in the Middle East create additional tailwinds as countries seek to enhance energy security through diversified supply sources and infrastructure investments. Tidewater's strengthened competitive position and improved asset base position it well to benefit from increased offshore drilling activity as energy security becomes a higher priority globally.

Pitch Summary:
For example, IPC has dramatically increased its reserves and production per share (i.e., without shareholder dilution) by acquiring deeply depressed Canadian assets in 2017-2018, developing their asset base over time, and repurchasing shares at attractive prices. As a result, IPC has been one of the Fund's better performers even prior to 2026, despite oil prices being lower at the end of 2025 than they were at the end of 2021 (when the Fund invested). The Fund's oil producers operate far from the Strait of Hormuz (primarily in Canada and Norway) and stand to benefit from the disruption in competing Middle Eastern supply.

BSD Analysis:
International Petroleum Corp represents Moerus' strategic approach to energy investing, focusing on well-managed companies that create value through disciplined capital allocation rather than commodity price speculation. IPC's track record demonstrates exceptional management execution, having dramatically increased reserves and production per share through opportunistic acquisitions of distressed Canadian assets during 2017-2018 when the sector was deeply out of favor. The company's strategy of developing acquired assets while simultaneously repurchasing shares at attractive valuations has created significant shareholder value without dilution. Notably, IPC has been a strong performer for the fund even during periods of lower oil prices, proving the investment thesis extends beyond commodity exposure. The company's geographic positioning in Canada provides strategic advantages, including political stability and distance from Middle Eastern geopolitical risks. The current Iran conflict further enhances IPC's competitive position as non-Middle Eastern supply becomes more valuable amid regional disruptions.

Pitch Summary:
As for Natura Cosméticos, the Brazil-based beauty products retailer was the most significant detractor from performance in Q4 and for full-year 2025, as cyclically weak consumer spending in Brazil and costs associated with the company's ongoing business restructuring weighed on shares. As we noted last quarter, we believe that the weak consumer environment will eventually improve, while Natura's recent jettisoning of non-core business units and renewed focus on its core brands are positive developments for the long-term investment thesis, which remains attractive. Accordingly, we added significantly to the Fund's position in Natura in 2025 and early in 2026. In Q1 2026, an already strong quarter for Natura shares was punctuated on March 30th by the announcement that private equity investor Advent International intends to buy an 8% to 10% stake in Natura in the market over the next six months, aiming at an average purchase price of BRL 9.75 per share. Upon purchasing said stake, Advent would be entitled to appoint two members to Natura's board of directors. Also under the proposal, Alessandro Carlucci, former CEO who led Natura during some of its most successful years, would become Chair of a reconstituted board. Natura also announced that its three founders and former CEO Fabio Barbosa would move from the board to a newly formed advisory board, leaving day-to-day decision-making powers to the board of directors. The announcement of an interested financial investor with experience investing in the Brazilian beauty space was well received by the market, as was the proposed board refresh, which at the same time addressed the succession plan of the company's founders. Natura shares surged on the first day of trading after the announcement, surpassing the BRL 9.75 price at which Advent seeks to acquire a stake.

BSD Analysis:
Moerus demonstrated conviction in Natura Cosméticos by significantly increasing their position during 2025 weakness, viewing the cyclical downturn in Brazilian consumer spending as temporary. The manager's thesis centers on the company's strategic refocusing through divestiture of non-core assets and renewed emphasis on core beauty brands, which should improve operational efficiency and profitability. The announcement of Advent International's intended 8-10% stake acquisition at BRL 9.75 per share validates the investment case and provides external validation of the company's intrinsic value. The proposed governance changes, including the return of former successful CEO Alessandro Carlucci as Chairman and the transition of founders to an advisory role, address key succession planning concerns while bringing experienced leadership back to operations. Advent's expertise in the Brazilian beauty sector adds strategic value beyond just capital injection. The market's positive reception, with shares surging above Advent's target price, suggests investors recognize the transformational potential of this partnership and governance restructuring.

Pitch Summary:
Shares of Valaris, a U.S.-based provider of offshore drilling services, rose 95% in Q1, driven (in part) by the February 9th announcement that the company has agreed to be acquired by Transocean in an all-stock transaction, which was priced at a roughly 32% premium to Valaris' stock price (based on the previous day's closing price of each stock). Valaris was added to the Fund in 2025 following a slide in its share price, amid then-subdued oil prices and what we believed to be a temporary lull in offshore drilling activity caused by support infrastructure constraints (among other factors). These shorter-term headwinds temporarily overshadowed the longer-term benefits of what we viewed to be a dramatic transformation undergone by the offshore drilling industry since 2019. A wave of bankruptcies, mergers, and acquisitions has consolidated the higher-spec deepwater rig market into just four companies (including Transocean and Valaris) that arguably dominate the space; meanwhile Valaris emerged from its 2021 restructuring with a cleaned-up balance sheet. We believed this consolidation was likely to bring long-absent supply and pricing discipline to the industry, with favorable implications for profitability looking forward. Yet the near-term headwinds offered the opportunity to invest in Valaris at a significant discount (in our estimation) to both the construction cost of its fleet and the secondary market value of its rigs. It appears Transocean agrees with that view given its pending takeover offer for Valaris – an announcement that was enthusiastically received by investors who have generally viewed the combination as a win-win for both companies.

BSD Analysis:
Moerus Capital's investment in Valaris exemplifies their value-oriented approach, purchasing the offshore drilling services provider during a period of industry weakness in 2025. The manager identified a compelling opportunity created by temporary headwinds including subdued oil prices and infrastructure constraints that masked the fundamental transformation of the offshore drilling sector. The consolidation wave since 2019 has reduced the high-spec deepwater rig market to just four dominant players, creating an oligopolistic structure with improved pricing power. Valaris emerged from its 2021 restructuring with a strengthened balance sheet, positioning it well for the anticipated recovery. The manager's thesis was validated by Transocean's acquisition offer at a 32% premium, recognizing the strategic value of Valaris' fleet and market position. The 95% quarterly return demonstrates how patient value investing can be rewarded when corporate activity unlocks underlying asset values. This successful outcome reinforces the attractiveness of investing in out-of-favor sectors trading below replacement costs.

Pitch Summary:
Stockland is an Australian-listed diversified real estate owner and developer with exposure to residential, retail, logistics, and master-planned communities. Shares underperformed during the quarter as rising interest rates and mortgage costs in Australia weighed on sentiment toward residential-exposed REITs. The move was exacerbated by broader increases in global rates and risk premiums. Despite near-term pressure on residential volumes, we continue to see value in Stockland's diversified platform and balance sheet strength.

BSD Analysis:
Stockland faced significant headwinds in Q1 2026 as rising Australian interest rates and mortgage costs pressured residential-exposed real estate companies. The company's diversified exposure to residential development and master-planned communities made it particularly vulnerable to housing market weakness. Broader increases in global rates and risk premiums amplified the negative sentiment toward Australian REITs with residential exposure. Higher mortgage costs are likely to reduce housing demand and transaction volumes, impacting Stockland's residential development business. Despite near-term challenges, the company's diversified platform across retail, logistics, and residential provides some defensive characteristics. Stockland's balance sheet strength offers financial flexibility to navigate the challenging operating environment. The company's established market position and development expertise remain valuable assets for long-term value creation. However, the current interest rate environment and housing market pressures create meaningful near-term headwinds for the investment thesis.

Pitch Summary:
Unite Group PLC is the largest listed owner/developer of student housing in the UK. The company employs a conservative, low-leverage financing strategy required for its large development pipeline. Shares declined following weaker-than-expected leasing updates, reflecting softer demand from both university on-campus agreements and direct-lease students. The update raised concerns around affordability and leasing visibility, particularly following prior guidance misses. While near-term sentiment weakened, we continue to view the company's asset base, supply-demand dynamics, and balance sheet strength as supportive over the longer term.

BSD Analysis:
Unite Group faced headwinds in Q1 2026 with disappointing leasing updates revealing softer student housing demand across both university partnerships and direct-lease segments. The weaker-than-expected performance raised concerns about student affordability pressures and leasing visibility, particularly troubling given the company's history of guidance misses. Management's conservative financing strategy and low leverage provide financial flexibility during challenging periods. Despite near-term operational challenges, Unite Group's position as the UK's largest listed student housing provider offers defensive market positioning. The company's high-quality asset base and development pipeline remain valuable long-term assets. Supply-demand dynamics in UK student housing may improve as new construction remains constrained by high costs. While current fundamentals are concerning, Unite Group's balance sheet strength and market leadership position provide downside protection and potential for recovery when student housing demand normalizes.

Pitch Summary:
Equinix is a global data center REIT providing interconnection and digital infrastructure critical to cloud and enterprise customers. Shares outperformed during the quarter, driven by better-than-expected 2026 revenue guidance, strong bookings, and continued demand for high-quality data center capacity, particularly tied to AI-related infrastructure needs.

BSD Analysis:
Equinix delivered strong Q1 2026 performance driven by robust fundamentals and AI-driven demand tailwinds. The company's better-than-expected 2026 revenue guidance demonstrates management's confidence in the business trajectory and underlying demand trends. Strong bookings activity indicates healthy customer demand for Equinix's premium interconnection and colocation services. The surge in AI-related infrastructure needs is creating significant demand for high-quality data center capacity, positioning Equinix as a key beneficiary of this secular trend. The company's global platform and interconnection capabilities provide competitive advantages in serving enterprise and cloud customers. Equinix's mission-critical infrastructure and high switching costs create defensive characteristics with growth upside. The combination of AI demand, digital transformation trends, and Equinix's market-leading position supports continued outperformance and premium valuation.

Pitch Summary:
NETSTREIT is a net lease REIT focused on high-quality, necessity-based retail tenants with long-duration cash flows. Shares contributed positively as investors favored defensive, income-oriented names with improving visibility on external growth. Steady acquisition activity, disciplined underwriting, and stable fundamentals, combined with a modestly improving cost of capital, supported sentiment and drove incremental upside.

BSD Analysis:
NETSTREIT Corp delivered positive performance in Q1 2026 as the market rewarded defensive real estate strategies with predictable cash flows. The company's focus on necessity-based retail tenants provides recession-resistant income streams that appeal to investors in uncertain macro environments. Management's disciplined acquisition strategy and underwriting standards have built a high-quality portfolio with long-duration leases. The improving cost of capital environment benefits NETSTREIT's external growth prospects, making acquisitions more accretive. The company's stable fundamentals and defensive positioning make it attractive during periods of market volatility. NETSTREIT's net lease model provides predictable cash flows with minimal landlord responsibilities, creating an efficient operating structure. The combination of steady acquisition activity and improving capital costs positions the company well for continued growth and shareholder value creation.

Pitch Summary:
Hong Kong Land is a leading owner of office and retail assets primarily located in Hong Kong and Singapore, along with residential development activities in China and select ASEAN markets. Shares advanced during the quarter, supported by continued execution of its "Strategic Vision 2035" plan. Key developments included announced asset sales, such as the Singapore residential business (MCL) and a partial interest in Marina Bay Financial Centre, alongside the formation of a Singapore-focused private investment vehicle. The company also expanded its share repurchase program, reinforcing capital return and balance sheet discipline.

BSD Analysis:
Hong Kong Land Holdings demonstrated strong execution of its strategic transformation plan during Q1 2026, driving positive share performance. The company's "Strategic Vision 2035" plan is progressing well with meaningful asset sales including the Singapore residential business and partial Marina Bay Financial Centre divestiture. The formation of a Singapore-focused private investment vehicle suggests strategic capital recycling and geographic focus. Management's expansion of the share repurchase program signals confidence in the business and commitment to shareholder returns. The company's disciplined approach to capital allocation and balance sheet management positions it well for continued value creation. Hong Kong Land's prime office and retail assets in key Asian markets provide defensive characteristics with upside potential. The strategic repositioning appears to be resonating with investors as the company streamlines its portfolio and enhances capital efficiency.

Pitch Summary:
Nintendo was founded in 1889 in Kyoto by Fusajiro Yamauchi, a craftsman who began making hanafuda — hand-painted Japanese playing cards used in a traditional card game of the same name. From playing cards, the company diversified into toys, then into arcade games, then into home consoles, accumulating along the way a roster of intellectual property that is arguably unmatched in the world of entertainment. Mario, Link, Pikachu, and Donkey Kong are cultural icons recognised across generations and geographies, with a hold on the imagination that few brands in any industry can claim to replicate. The transformation from playing card maker to global entertainment company was driven in large part by two figures. Hiroshi Yamauchi, who took over the family business aged just 22 in 1949, was personally unmoved by gaming as entertainment but saw the massive opportunity open to his company in the interactive gaming market. It was under his watch that Nintendo hired Shigeru Miyamoto, the creative genius who would go on to design Donkey Kong, Super Mario Bros., The Legend of Zelda, and Star Fox. Miyamoto's instinct — that games should be built around the pleasure of play, rather than around processing power or complexity — gave Nintendo's software a timeless quality that competitors have struggled to replicate. The franchises he created in the 1980s continue to sell tens of millions of copies today. The hardware business has always been the engine through which Nintendo's software travels to the consumer, and here too the company has shown a knack for creative disruption. The portable Game Boy, launched in 1989 bundled with Tetris, went on to sell over 118 million units. The Wii, released in 2006 with its motion-sensing controllers, brought casual and family gaming into the mainstream. And the Switch, launched in 2017 as a hybrid device that could be played both at home and on the go, became one of the best-selling consoles in history, with over 150 million units sold by the time its successor arrived. The Switch was the consummate expression of Nintendo's distinctive strategy. Unlike Sony's PlayStation or Microsoft's Xbox, Nintendo has consistently prioritised novelty of experience over technical specification — what Yamauchi called the 'withered technology' approach, using mature, affordable components in imaginative new configurations. This produces hardware that is cheaper to manufacture, more accessible to a broad audience, and less exposed to the brutal cost cycles of cutting-edge chip development. The resulting business model is highly attractive. First-party software — Mario Kart, Zelda, Pokémon, Animal Crossing — carries operating margins well above the company average, benefits from near-zero marginal cost of distribution as digital sales grow, and enjoys extraordinarily long catalogue lives. Nintendo Switch Online, a subscription service giving access to a growing library of classic games, adds a recurring revenue stream that further smooths the console cycle. The launch of the Switch 2 in June 2025 marks the beginning of a new console cycle and, we believe, a period of renewed growth. The new console launched to strong demand, with an initial hardware sales forecast of 15 million units for the fiscal year. The software line-up has been notably broad, with over 40 third-party publishers committing titles at launch — the largest such showing for any Nintendo platform in history. Launch titles from Nintendo's own studios, including Mario Kart World and Donkey Kong Bananza, were warmly received. Backwards compatibility with the original Switch library ensures that the 150 million-strong existing player base has a smooth migration path, and the Nintendo Classics subscription catalogue has been expanded with GameCube titles. Beyond hardware, Nintendo is actively expanding the surface area of its IP. The Super Mario Bros. Movie, released in 2023, grossed over USD 1 billion globally, and a sequel came out just a couple of weeks ago. Nintendo's partnership with Universal has seen Nintendo-themed park attractions open in Japan, Hollywood, and most recently Orlando. Merchandise, licensing, and IP-related revenues, while still a small fraction of total sales, are growing and represent optionality that was barely visible on the company's income statement a decade ago. As Miyamoto himself has noted, Nintendo's goal is for its characters to feel like friends to the people who encounter them, a sentiment that speaks to the depth of loyalty the company has built across its audience.

BSD Analysis:
Mayar Capital presents Nintendo as a unique entertainment franchise with unmatched intellectual property and a distinctive business model that prioritizes innovation over technical specifications. The fund emphasizes Nintendo's transformation from a 19th-century playing card company to a global entertainment powerhouse, highlighting the enduring value of iconic characters like Mario, Link, and Pikachu that transcend generations and geographies. The investment thesis centers on Nintendo's "withered technology" approach, which uses mature components in creative configurations to produce more accessible and profitable hardware compared to competitors focused on cutting-edge specifications. This strategy creates superior economics through lower manufacturing costs and broader market appeal. The manager highlights the attractive business model dynamics, particularly the high-margin first-party software with near-zero marginal distribution costs and extraordinary catalog longevity. The Switch 2 launch represents a significant catalyst, with strong initial demand and unprecedented third-party support suggesting a successful new console cycle. The fund also recognizes Nintendo's expanding IP monetization through movies, theme parks, and merchandise as additional growth drivers that were previously undervalued.

Pitch Summary:
Inter Cars: A dominant auto-parts distributor in Central and Eastern Europe. Their competitive edge is their massive logistics network and reputation for reliability, a "scale play" that remains relevant as the global vehicle fleet ages.

BSD Analysis:
Mayar Capital's investment in Inter Cars represents a classic scale-driven business model with defensive characteristics tied to automotive aftermarket demand. The fund identifies Inter Cars as the dominant auto-parts distributor in Central and Eastern Europe, suggesting strong market positioning and competitive advantages. The investment thesis centers on the company's extensive logistics network and reputation for reliability, which create barriers to entry and customer loyalty in the fragmented auto-parts distribution market. The manager emphasizes this as a "scale play," indicating that Inter Cars' size provides cost advantages and service capabilities that smaller competitors cannot match. The secular tailwind comes from an aging global vehicle fleet, which drives increasing demand for replacement parts and maintenance services. This demographic trend supports long-term growth regardless of new vehicle sales cycles. The geographic focus on Central and Eastern Europe may provide additional growth opportunities as these markets develop and vehicle ownership increases. This investment demonstrates Mayar's ability to identify quality businesses in less-followed markets with strong competitive positions and favorable industry dynamics.

Pitch Summary:
Dassault Systèmes: The French leader in 3D design software. While they are currently facing cyclical headwinds in the European auto industry, we view this as a temporary "blip" rather than a permanent impairment of their mission-critical simulation tools.

BSD Analysis:
Mayar Capital's investment in Dassault Systèmes demonstrates their ability to distinguish between temporary cyclical pressures and permanent business impairment. The fund recognizes Dassault as the leading provider of 3D design and simulation software, with mission-critical applications across multiple industries. The investment thesis acknowledges current headwinds from weakness in the European automotive sector, which represents a significant customer base for the company's design tools. However, the manager views these challenges as cyclical rather than structural, suggesting confidence in the underlying business quality and market position. The emphasis on "mission-critical simulation tools" indicates that Dassault's software is essential for product development and engineering processes, creating high switching costs and customer dependency. This defensive characteristic should provide resilience once automotive industry conditions normalize. The investment represents classic value investing - buying a quality business during a temporary downturn when the market is overly pessimistic about cyclical challenges. The fund's patience and long-term perspective allow them to capitalize on short-term market inefficiencies.

Pitch Summary:
Toast: A long-admired digital platform built specifically for the restaurant industry. By creating an all-in-one operating system—handling everything from POS to payroll—they've built a defensive moat that generalist software simply can't touch.

BSD Analysis:
Mayar Capital's investment in Toast reflects their appreciation for vertical software solutions with strong competitive moats. The fund has admired this restaurant technology platform for an extended period, demonstrating patience and thorough research before establishing a position. The investment thesis centers on Toast's comprehensive, industry-specific operating system that integrates point-of-sale, payroll, and other restaurant management functions into a single platform. This all-in-one approach creates significant switching costs and operational dependencies that protect against competition from generalist software providers. The manager emphasizes the defensive nature of Toast's moat, arguing that specialized restaurant software cannot be easily replicated by horizontal solutions. This vertical focus allows Toast to develop deep industry expertise and tailored functionality that creates substantial value for restaurant operators. The platform's comprehensive nature likely generates multiple revenue streams and increases customer lifetime value. This investment represents Mayar's strategy of identifying specialized software businesses with strong competitive positioning in specific industry verticals.

Pitch Summary:
Xero: A business we've tracked for a long time that provides cloud accounting for small businesses. Far from being disrupted, Xero is incorporating AI tools from OpenAI and Anthropic to make their platform more valuable to accountants, likely turning a perceived threat into a tailwind.

BSD Analysis:
Mayar Capital's investment in Xero demonstrates their ability to identify quality software businesses that can leverage AI as a competitive advantage rather than face disruption. The fund has conducted extensive research on this cloud-based accounting platform, tracking the company for an extended period before establishing a position. The investment thesis directly counters market fears about AI disruption in software, arguing that Xero is successfully incorporating AI tools from leading providers like OpenAI and Anthropic to enhance platform value. This strategic approach to AI integration positions Xero to strengthen relationships with accounting professionals rather than face disintermediation. The manager views AI as a tailwind that will make Xero's platform more valuable to its core customer base of accountants and small businesses. This reflects understanding of how established software platforms can leverage AI to improve user experience and workflow efficiency. The investment represents confidence in Xero's ability to evolve with technological change while maintaining its competitive position in the small business accounting market.

Pitch Summary:
Middleby: We have followed Middleby for years and are impressed by their current portfolio restructuring. They are refocusing on their core competencies by selling their residential kitchen business and spinning off food processing, allowing them to lean into their high-moat commercial segments.

BSD Analysis:
Mayar Capital's investment in Middleby represents a long-term conviction play based on strategic portfolio optimization and focus on high-moat businesses. The fund has tracked this commercial kitchen equipment manufacturer for years, demonstrating patience and thorough research before establishing a position. The investment thesis centers on management's strategic restructuring to divest lower-return residential and food processing segments while concentrating on the higher-margin, more defensible commercial kitchen equipment business. This portfolio simplification should improve returns on capital and allow management to focus resources on their strongest competitive positions. The manager's emphasis on "high-moat commercial segments" suggests Middleby has sustainable competitive advantages in commercial foodservice equipment, likely through customer relationships, service networks, and specialized product offerings. The restructuring creates a more focused, higher-quality business profile that aligns with Mayar's investment criteria. This represents a classic sum-of-the-parts opportunity where strategic divestitures unlock value by allowing the core business to achieve its full potential.