Investment Pitches

Pitch Summary:
Amazon is trading at a high EV/EBIT of 32, with the market expecting 25% YoY growth in 2026. However, much of this growth is driven by AWS, which is vulnerable to a potential AI bust. The decision to reduce holdings is based on concerns about the sustainability of AWS growth and the impact of AI CAPEX boom. The stock's high valuation and potential margin compression due to GPU-specific hardware are additional risks.

BSD Analysis:
Amazon's reliance on AWS for a significant portion of its operating income poses a risk, especially in the context of an AI CAPEX boom. The potential for a sharp reduction in AWS growth and margin compression due to hardware depreciation are key concerns. The decision to reduce holdings is strategic, aimed at mitigating risk and reallocating capital to more stable opportunities. The high valuation and uncertainty surrounding AWS growth make Amazon a less attractive investment at this time.

Pitch Summary:
Nintendo is expected to benefit from the full rollout of its new platform in 2026, with EBIT projected to rise by 40%. The stock has declined due to elevated memory pricing, but this is seen as a cyclical issue. With a forward EV/EBIT of 23 and a PEG ratio of 0.75, the stock is attractively valued. The decision to add to the position is based on the expected earnings growth and the cyclical nature of memory pricing.

BSD Analysis:
Nintendo's strong brand and successful franchises position it well for future growth. The anticipated earnings growth from the new platform rollout provides a positive outlook. The recent stock decline due to memory pricing is viewed as a temporary issue, creating a buying opportunity. The decision to increase holdings is based on the favorable valuation and the expectation of continued success in the gaming industry.

Pitch Summary:
Mercado Libre is a steady growth story, having grown 30% annually over the past 22 years. The stock has recently declined, presenting a buying opportunity. With an EV/EBIT of 34 and a PEG ratio of 0.98, the stock is cheaper than its historical range. The company typically trades at a 50x range, making the current valuation attractive. The decision to add to the position is based on the company's consistent growth and favorable valuation.

BSD Analysis:
Mercado Libre's strong growth track record and leading position in Latin America make it a compelling investment. The recent decline in stock price provides an attractive entry point, supported by the favorable PEG ratio. The company's ability to maintain steady growth over the years is a testament to its resilience and market leadership. The decision to increase holdings is based on the expectation of continued growth and the potential for valuation appreciation.

Pitch Summary:
CD Projekt is valued at $6.5 billion and is in transition, developing new iterations of its successful franchises. The company continues to profit from catalog sales, with 5 million copies of Cyberpunk 2077 sold in the last 12 months. The upcoming release of the new Witcher iteration in 2027 is expected to drive significant operating income. The investment thesis is based on the expectation that the company will be valued at 20x to 25x yearly operating income once the new games are released.

BSD Analysis:
CD Projekt's strong track record with its franchises provides confidence in its future releases. The company's ability to generate profit from catalog sales during the transition period is a positive indicator. The anticipated releases of new iterations of Witcher and Cyberpunk 2077 are expected to drive substantial operating income, supporting the investment thesis. The decision to add to the position is based on the potential for significant valuation appreciation once the new games are launched.

Pitch Summary:
Coupang is trading at a high EV/EBIT of 48, but the company is expected to see margin expansion in the coming years. Operating income improved by 50% in the last quarter, and analysts expect a 90% improvement. Using a conservative estimate of 50% improvement, the PEG ratio is below 1, indicating undervaluation. The stock price has declined due to a data breach, presenting a buying opportunity below $24.

BSD Analysis:
Coupang's growth prospects are strong, with significant potential for margin expansion. The recent data breach has temporarily impacted the stock price, creating an attractive entry point. The company's leading position in South Korea and expansion into Taiwan provide a solid foundation for future growth. The decision to increase holdings is based on the favorable PEG ratio and the expectation of continued operational improvements.

Pitch Summary:
Spotify is trading at a high EV/EBIT of 56, which is concerning given its growth metrics. Premium subscribers are growing at 11% and related revenue at 13%, but the recent stock run-up was driven by margin expansion, which has stabilized. With a PEG ratio of 3.75, the stock is overvalued, prompting a reduction in holdings. The proceeds will be reallocated to Universal Music Group, which offers a better valuation at 20x EV/EBIT.

BSD Analysis:
Spotify's valuation is not supported by its growth prospects, as the margin expansion story has run its course. The decision to reduce holdings is based on the high PEG ratio, indicating overvaluation. Reallocating to Universal Music Group provides exposure to the same industry trends at a more reasonable valuation. The move is strategic, aiming to optimize the portfolio by investing in stocks with better growth-to-valuation ratios.

Pitch Summary:
Amazon was partially sold due to its EV/EBIT of 35 and a PEG ratio higher than 2, indicating it was in the danger zone. The decision was driven by the need to reduce exposure to a large position at a high valuation. The stock's growth was expected to be around 15%, but the valuation was not justified by this growth rate. The proceeds were reallocated to Bombardier and Google, which were seen as better opportunities.

BSD Analysis:
Amazon's high valuation posed a risk, especially given its significant position in the investor's portfolio. The decision to reduce the holding was strategic, aimed at mitigating risk and reallocating capital to stocks with better growth prospects. The reallocation to Bombardier and Google was based on their potential for higher returns. Amazon's growth was primarily driven by AWS, but concerns about the sustainability of this growth influenced the decision to reduce exposure.

Pitch Summary:
Intuitive Surgical was sold as it was trading at a high EV/EBIT of 80, indicating it was in the danger zone. Despite being up 9% this year, it underperformed the market and the investor's average performance. The decision to sell was influenced by the opportunity to reallocate capital to better opportunities, despite the capital gains tax implications.

BSD Analysis:
Intuitive Surgical's high valuation was not supported by its performance relative to the market and the investor's portfolio. The decision to sell was strategic, allowing for reinvestment in more promising stocks. While the sale incurred capital gains taxes, the potential for higher returns in other investments justified the move. The company's growth prospects did not align with its high valuation, prompting the decision to exit the position.

Pitch Summary:
Trade Desk was sold due to its extremely high EV/EBIT valuation of 200, which was unsustainable. The stock had become a 10-bagger since its purchase at a PE of 40 in 2018. However, the valuation premium reversed sharply as Amazon Prime consolidated the streaming ads marketplace, impacting Trade Desk's growth. The divergence between valuation and growth was evident, prompting the decision to sell.

BSD Analysis:
Trade Desk's valuation had reached a point where it was no longer justified by its growth prospects. The competitive landscape changed with Amazon Prime's dominance in streaming ads, which posed a significant threat to Trade Desk's market share. The decision to sell was based on the recognition that the stock's high valuation was not supported by the company's growth trajectory. This move allowed for capital reallocation to more promising opportunities.

Pitch Summary:
Oscar Health is poised to disrupt the traditional health insurance industry by leveraging modern technology and infrastructure. As incumbents remain anchored to outdated systems, Oscar Health's innovative approach positions it to capture market share and drive growth. The company's focus on user-friendly digital platforms and data-driven insights enhances its competitive edge in the evolving health insurance landscape.

BSD Analysis:
Oscar Health's strategic emphasis on modernizing health insurance through technology-driven solutions sets it apart from traditional insurers. The company's user-centric digital platforms and data analytics capabilities provide a differentiated customer experience, fostering loyalty and retention. As the healthcare industry increasingly embraces digital transformation, Oscar Health's innovative model is likely to attract a growing customer base seeking efficient and transparent insurance solutions. Furthermore, the company's ability to adapt to regulatory changes and collaborate with healthcare providers strengthens its position as a leader in the insurtech space, offering significant growth potential.

Pitch Summary:
Novo Nordisk is well-positioned to capitalize on the oral GLP-1 supercycle, which is expected to significantly expand the market for diabetes and weight management treatments. As a leader in diabetes care, Novo Nordisk's innovative product pipeline and strong market presence provide a competitive advantage in capturing the growing demand for oral formulations. The company's strategic focus on research and development supports its potential for sustained growth in this evolving market.

BSD Analysis:
Novo Nordisk's leadership in diabetes care and its robust pipeline of innovative treatments position it as a key beneficiary of the oral GLP-1 supercycle. The company's commitment to advancing diabetes management through cutting-edge research and development enhances its competitive positioning and growth prospects. As the market for oral GLP-1 formulations expands, Novo Nordisk's established expertise and global reach are likely to drive increased market share and revenue growth. Furthermore, the company's strategic investments in new technologies and partnerships underscore its ability to adapt to changing market dynamics and maintain its leadership in the pharmaceutical industry.

Pitch Summary:
WeightWatchers is positioned to benefit significantly from the emerging oral GLP-1 supercycle. The company's focus on weight management aligns well with the expanding market for GLP-1 formulations, which are expected to dramatically increase the addressable market. With a substantial portfolio allocation, WeightWatchers is a high-conviction investment poised for growth as these new treatments gain traction.

BSD Analysis:
The oral GLP-1 supercycle represents a transformative opportunity for WeightWatchers, as these formulations are likely to broaden the market for weight management solutions. The company's established brand and infrastructure position it well to capture market share as consumer demand for effective weight loss treatments increases. Additionally, WeightWatchers' strategic focus on leveraging new medical advancements could enhance its competitive edge and drive long-term growth. The investment thesis is further supported by the company's ability to adapt to evolving consumer preferences and capitalize on technological advancements in the health and wellness sector.

Pitch Summary:
Global Testing Corporation Limited (AYN.SI) is a Singaporean nanocap company trading at 4.8x earnings, with a strong balance sheet and a history of stock buybacks. The company specializes in semiconductor testing services, with operations in Taiwan and a customer base mainly in Taiwan and Japan. Despite a flat revenue trend over recent years, AYN reported a 22% year-over-year revenue growth in H1 2025, driven by increased orders from Taiwan and the US. The company maintains a robust balance sheet with significant cash reserves and minimal liabilities, and it has been actively returning capital to shareholders through buybacks and capital reductions.

BSD Analysis:
The primary concerns for AYN include customer concentration, with the top three customers accounting for 68% of revenue in 2024, and the capital-intensive nature of the semiconductor testing industry, which requires continuous investment in new equipment. This capital intensity limits the cash available from operations despite a seemingly strong net profit. Additionally, the company's focus on legacy and mature chip designs limits its growth potential in the rapidly evolving semiconductor industry, particularly in high-growth areas like AI. While the recent revenue growth is promising, the lack of consistent growth and the industry's capital demands pose significant challenges.

Pitch Summary:
DiscoverIE: A High-Quality Industrial Compounder at an Inflection Point DiscoverIE Group plc is a leading designer and manufacturer of highly differentiated electronic components for mission critical industrial applications. The company specializes in bespoke, application specific products, including magnetics, sensors, power electronics, and connectivity solutions, that are designed into customer systems and typically remain in place for the life of the product. Examples include custom temperature sensors used in specialized medical devices and X ray sensors embedded in airport security scanners. These niche, high value components are small in cost but critical to system performance and reliability. The strategy is simple and disciplined: operate in structurally growing end markets, focus on low-volume, high-complexity components that are difficult to switch, and compound growth through organic design wins and bolt-on acquisitions. This model has enabled 20%+ EPS and free cash flow per share growth over the past 10 years. While challenging end markets led to negative organic growth in both fiscal 2024/fiscal 2025 and compressed the valuation from over 25x earnings to ~15x today, we believe the business is entering the early stages of a cyclical recovery. In our view, this supports the potential for ~20% EPS growth over the next five years alongside meaningful multiple expansion. With aligned management, disciplined capital allocation, and a focused growth strategy, DiscoverIE fits squarely within the type of under-appreciated industrial technology compounder we seek to own.

BSD Analysis:
The manager presents DiscoverIE as a high-quality industrial compounder positioned at a cyclical inflection point with significant upside potential. The investment thesis centers on the company's differentiated position in mission-critical electronic components with high switching costs and long product lifecycles. The business model focuses on bespoke, application-specific products in structurally growing end markets, creating sustainable competitive advantages. Historical performance demonstrates the quality with 20%+ EPS and free cash flow growth over the past decade. The current opportunity stems from cyclical headwinds that compressed valuations from over 25x to ~15x earnings despite the underlying business quality remaining intact. The manager expects ~20% EPS growth over the next five years as end markets recover, combined with meaningful multiple expansion as the market recognizes the business quality. The disciplined capital allocation strategy and aligned management provide additional confidence in execution capability.

Pitch Summary:
Latham Group – Latham delivered a solid third quarter, with net sales of approximately $162 million, up ~7.6% year-over-year, outperforming a generally flat U.S. in-ground pool market and reflecting continued traction across key product lines, including pool covers, liners, and fiberglass pools. Adjusted EBITDA itself grew roughly 28.5% to about $38.3 million. Latham also narrowed and modestly raised its full-year guidance, signaling confidence in its outlook despite broader industry headwinds, with net sales now expected in the ~$540–$550 million range and adjusted EBITDA of ~$92–$98 million. Overall, the quarter demonstrated a business that continues to grow revenue, expand profitability, and execute on strategic priorities even in challenging end-market conditions. We are pleased with results. On the negative side, Latham's CEO, Scott Rajeski, announced his retirement. The incoming CEO appears credible, coming from James Hardie, a much larger organization, but we have not yet had the opportunity to engage with him and plan to do so following year-end results. Given the unexpected leadership change, we reduced the position from 6% to 3% of the fund. This was not driven by a change in our view of the business, but by our emphasis on management quality and familiarity. Until we build conviction in the new leadership, our overall conviction is lower.

BSD Analysis:
The manager maintains a cautious but positive view of Latham Group following strong operational performance offset by leadership uncertainty. The investment thesis is supported by solid Q3 results with 7.6% revenue growth outperforming a flat pool market and impressive 28.5% EBITDA growth to $38.3 million. The company's ability to gain market share and expand margins despite industry headwinds demonstrates competitive positioning and operational execution. Management's raised guidance signals confidence in the business trajectory. However, the unexpected CEO retirement of Scott Rajeski prompted a significant position reduction from 6% to 3% of the fund. While the incoming CEO from James Hardie appears credible, the manager's emphasis on management quality and familiarity requires building new conviction. This reflects a disciplined approach where operational excellence must be paired with trusted leadership. The position reduction represents risk management rather than a fundamental business concern.

Pitch Summary:
Monday.com – In November, Monday.com reported a mixed quarter, with revenue and free cash flow growing approximately 26% and 10% year over year, respectively. Enterprise performance continued to accelerate, while growth in small and mid sized customers further decelerated. We held the position through year end and into 2026, believing management could execute against the objectives they had outlined, supported by a strong historical track record. However, following the company's fourth quarter earnings release earlier this week, we have fully exited the position. The reported results were not aligned with our forecasts, and more importantly, management was unable to clearly articulate what is occurring within the business. When we lose confidence in the accuracy or clarity of management's communication, we exit. That is what we have done here.

BSD Analysis:
The manager executed a full exit from Monday.com following a loss of confidence in management's communication and business execution. While the company showed mixed Q3 results with 26% revenue growth and accelerating enterprise performance, the deceleration in small and mid-sized customer growth raised concerns. The manager initially maintained the position based on management's historical track record and outlined objectives. However, Q4 results that missed forecasts and management's inability to clearly articulate business dynamics triggered the exit decision. This represents a disciplined approach where management quality and communication clarity are non-negotiable criteria. The exit reflects the manager's emphasis on transparency and execution capability, particularly when growth patterns show divergence between customer segments. The decision demonstrates risk management discipline when fundamental thesis assumptions are challenged.

Pitch Summary:
ThredUp – ThredUp delivered an excellent third quarter, with revenue up approximately 34% year over year, one of the fastest growth rates in its recent history. Adjusted EBITDA improved to $3.8 million, or a 4.6% margin, from roughly breakeven last year, while active buyers increased about 26%, driven by strong new buyer acquisition. Management also raised full year revenue guidance, signaling confidence in the outlook. Notably, management highlighted that new buyer growth accelerated to 81% year over year in October, up from 54% in Q3, following a rebrand and the launch of a new product recommendation feed in late September. While fundamentals continue to strengthen, the stock has declined over the past five months. These dislocations between price and fundamentals are common in the types of businesses we invest in and have led us to add to the position. ThredUp remains our largest holding.

BSD Analysis:
The manager maintains ThredUp as the largest portfolio holding despite recent stock price weakness, demonstrating high conviction in the fundamental business trajectory. The investment thesis centers on accelerating growth with 34% year-over-year revenue growth representing one of the company's fastest rates in recent history. The path to profitability is evident with adjusted EBITDA improving to a 4.6% margin from breakeven, while active buyer growth of 26% indicates strong customer acquisition momentum. The October acceleration to 81% new buyer growth following a rebrand and product recommendation feed launch suggests successful execution of growth initiatives. The manager views the disconnect between strengthening fundamentals and declining stock price as a classic opportunity to add to positions in misunderstood growth companies. The raised full-year guidance signals management confidence, while the largest holding status reflects the manager's belief in the long-term potential of the secondhand apparel market.

Pitch Summary:
Carvana – Carvana's strong financial trajectory continues reporting record third-quarter results, with 155,941 retail cars sold (+~44% YoY) and total revenue of ~$5.65 billion (+~55% YoY), both all-time quarterly highs. The company generated adjusted EBITDA of ~$637 million +~50%, with an adjusted EBITDA margin of ~11.3%, well above typical industry profitability levels. Carvana remains a top 5 holding.

BSD Analysis:
The manager expresses strong conviction in Carvana as a top five holding, highlighting the company's exceptional financial performance with record quarterly results. The investment thesis is supported by impressive growth metrics including 44% year-over-year unit sales growth and 55% revenue growth, both reaching all-time highs. Most notably, the company achieved an 11.3% adjusted EBITDA margin, which significantly exceeds typical automotive retail industry profitability levels. The 50% EBITDA growth demonstrates operational leverage and margin expansion as the business scales. This represents a successful turnaround story where Carvana has transformed from a loss-making growth company to a profitable, high-margin business. The manager's continued conviction suggests belief in the sustainability of these margins and the company's competitive positioning in online used car sales.

Pitch Summary:
Wayfair – Last quarter, we highlighted that Wayfair's Q2 results were the strongest we had seen in several years and supported our thesis that the business was positioned for a meaningful rebound as the home furnishings market recovered. Q3 built on that momentum. Revenue grew 9% year over year, accelerating from 6% in Q2, while adjusted EBITDA increased more than 70% year over year. These results provide further evidence that Wayfair's future profit growth remains substantial and is materially underappreciated by the market. Wayfair continues to be a top five holding.

BSD Analysis:
The manager maintains a bullish stance on Wayfair, viewing it as a top five holding positioned for a meaningful rebound in the home furnishings market. The investment thesis centers on accelerating revenue growth (9% YoY in Q3 vs 6% in Q2) and dramatic EBITDA expansion of over 70% year-over-year. The manager believes the market materially underappreciates Wayfair's future profit growth potential as the home furnishings sector recovers. This represents a classic turnaround story where operational improvements and market recovery are driving substantial margin expansion. The accelerating revenue growth trajectory suggests the company is gaining market share and benefiting from improved consumer demand. The manager's conviction appears high given the top five portfolio weighting and the sustained improvement in both top-line and bottom-line metrics.

Pitch Summary:
DiscoverIE: A High-Quality Industrial Compounder at an Inflection Point DiscoverIE Group plc is a leading designer and manufacturer of highly differentiated electronic components for mission critical industrial applications. The company specializes in bespoke, application specific products, including magnetics, sensors, power electronics, and connectivity solutions, that are designed into customer systems and typically remain in place for the life of the product. Examples include custom temperature sensors used in specialized medical devices and X ray sensors embedded in airport security scanners. These niche, high value components are small in cost but critical to system performance and reliability. The strategy is simple and disciplined: operate in structurally growing end markets, focus on low-volume, high-complexity components that are difficult to switch, and compound growth through organic design wins and bolt-on acquisitions. This model has enabled 20%+ EPS and free cash flow per share growth over the past 10 years. While challenging end markets led to negative organic growth in both fiscal 2024/fiscal 2025 and compressed the valuation from over 25x earnings to ~15x today, we believe the business is entering the early stages of a cyclical recovery. In our view, this supports the potential for ~20% EPS growth over the next five years alongside meaningful multiple expansion. With aligned management, disciplined capital allocation, and a focused growth strategy, DiscoverIE fits squarely within the type of under-appreciated industrial technology compounder we seek to own.

BSD Analysis:
The manager presents DiscoverIE as a high-quality industrial compounder positioned at a cyclical inflection point with significant upside potential. The investment thesis centers on the company's differentiated position in mission-critical electronic components with high switching costs and long product lifecycles. The business model focuses on bespoke, application-specific products in structurally growing end markets, creating sustainable competitive advantages. Historical performance demonstrates the quality with 20%+ EPS and free cash flow growth over the past decade. The current opportunity stems from cyclical headwinds that compressed valuations from over 25x to ~15x earnings despite the underlying business quality remaining intact. The manager expects ~20% EPS growth over the next five years as end markets recover, combined with meaningful multiple expansion as the market recognizes the business quality. The disciplined capital allocation strategy and aligned management provide additional confidence in execution capability.