Investment Pitches

Pitch Summary:
Advanced Energy Industries is a provider of power electronics conversion products. The stock extended a strong multi-quarter rally fueled by earnings revisions, AI-related infrastructure spending, and improving semiconductor capital expenditure trends. We maintain our position, as we believe the company's exposure to AI-driven semiconductor and data-center demand should continue to drive shareholder value.

BSD Analysis:
The fund maintains a bullish stance on Advanced Energy Industries, citing the company's strategic positioning in the AI infrastructure boom. The manager highlights the stock's strong multi-quarter performance driven by earnings revisions and increased semiconductor capital expenditures. The investment thesis centers on AEIS's exposure to AI-driven demand in both semiconductor manufacturing and data center infrastructure. The company's power electronics conversion products are essential components in these high-growth markets. The fund's decision to maintain the position suggests confidence in the sustainability of AI-related spending trends. The manager appears to view AEIS as a beneficiary of the broader digital transformation and AI infrastructure buildout. This positioning aligns with secular growth trends in semiconductor manufacturing and data center expansion.

Pitch Summary:
Tempus AI, Inc. is a healthcare technology company specializing in AI-enabled precision medicine solutions. By leveraging AI and machine learning, Tempus connects laboratory test results with clinical data to improve patient care across multiple diseases. The company operates through three main business units: Genomics (Diagnostics), which offers advanced genetic testing and diagnostics; Data and Services, which commercializes de-identified healthcare data and supports clinical trials; and AI Applications, which develops algorithmic diagnostics and clinical decision support tools. Tempus collaborates with leading pharmaceutical and biotechnology firms, positioning itself as a key innovator in both oncology and broader healthcare markets. In our opinion, Tempus stands out as a compelling investment opportunity due to its alignment with key secular trends such as AI, Data Analysis and Monetization, and Personalized Medicine. Since going public in mid-2024, Tempus has demonstrated impressive growth, driven by both organic expansion and strategic acquisitions like Ambry. The company's robust portfolio in genomics and diagnostics—spanning oncology, hereditary risk assessment and advanced testing—along with its rapidly growing data and applications segment, positions Tempus at the forefront of personalized medicine. The company's expanding database of over 45 million patient records enhances its value proposition to research partners, and ongoing innovations are expected to drive both revenue and average selling price growth, making Tempus well-situated to capitalize on the evolving healthcare landscape.

BSD Analysis:
Aristotle views Tempus AI as a compelling investment positioned at the intersection of multiple secular growth trends including AI, data monetization, and personalized medicine. The company operates through three complementary business units spanning genomics diagnostics, data services, and AI applications, creating a comprehensive platform for precision medicine. Since going public in mid-2024, Tempus has demonstrated strong growth through both organic expansion and strategic acquisitions like Ambry, expanding its capabilities across oncology and hereditary risk assessment. The company's database of over 45 million patient records represents a significant competitive moat and enhances its value proposition to pharmaceutical and biotech research partners. The data and applications segment is rapidly growing, positioning Tempus to benefit from increasing demand for AI-driven clinical decision support tools. The fund expects ongoing innovations to drive both revenue growth and pricing power through higher average selling prices. Tempus is well-positioned to capitalize on the evolving healthcare landscape toward more personalized, data-driven treatment approaches.

Pitch Summary:
Immunome Inc. is a biotechnology company focused on developing innovative therapies by combining unique or underexplored biological targets with advanced technology platforms. The organization is guided by President and Chief Executive Officer Clay Siegall, Ph.D., who previously founded and led SeaGen and is recognized for his experience in growing oncology businesses and securing significant acquisitions. The leadership team is composed of experts with backgrounds in designing, developing and commercializing cancer treatments. Immunome's portfolio includes three clinical-stage drug candidates. The company is also advancing several preclinical programs. We believe Immunome presents a compelling investment opportunity, driven by its focus on personalized medicine and the promising product story of Varegacestat for desmoid tumors. The company has reported positive phase 3 data and is preparing to file for Food and Drug Administration (FDA) approval, with potential commercial launch anticipated in late 2026 or early 2027. The desmoid tumor market is expected to reach a peak size of $500 million to $700 million. Immunome benefits from experienced leadership, notably its founder's successful track record at SeaGen, and maintains a strong financial position following a recent capital raise, resulting in pro forma cash exceeding $600 million.

BSD Analysis:
Aristotle views Immunome as a compelling biotechnology investment driven by personalized medicine and the lead drug candidate Varegacestat for desmoid tumors. The company has reported positive phase 3 data and is preparing for FDA approval filing, with commercial launch expected in late 2026 or early 2027. The desmoid tumor market represents a significant opportunity with peak sales potential of $500-700 million. Leadership quality is a key investment factor, with CEO Clay Siegall's proven track record at SeaGen providing credibility and execution capability. The company maintains a strong balance sheet with over $600 million in pro forma cash following a recent capital raise, providing runway for development and commercialization. The focus on underexplored biological targets combined with advanced technology platforms positions Immunome to develop differentiated therapies. The three clinical-stage candidates and preclinical pipeline offer multiple shots on goal for value creation.

Pitch Summary:
Coherent Corp. is a vertically integrated manufacturing company that develops, manufactures and markets lasers, transceivers, and other optical and optoelectronic devices, modules and systems, as well as engineered materials, for use in the communications, industrial, instrumentation and electronics markets. The company has broad technical expertise and a deep technology stack in areas of importance to its products, including materials growth and fabrication of specialty materials, semiconductor lasers and passive optics including isolators, transceivers, transport equipment and high-power lasers for semiconductor capital equipment, display manufacturing, precision manufacturing and scientific research. Many of Coherent's products include custom integrated software that it develops internally, leveraging the company's deep domain expertise. We initiated a position in Coherent based on our view that the company sits at the nexus of a key secular growth theme in technology infrastructure, AI-driven data center buildout, with a uniquely defensible position spanning every layer of the photonics stack. Our investment thesis centers on its leadership in photonics, a sector undergoing a multi-year, structural shift from copper to optical networking driven by AI data center demands. The company stands out with unmatched vertical integration, expanding Indium Phosphide capacity and a broad global footprint that leverages geopolitical tailwinds. Additional growth is fueled by underappreciated data center interconnect demand, a massive and expanding serviceable addressable market (SAM) projected to exceed $70 billion by 2030, and strategic partnerships—most notably with NVIDIA—validating its technology leadership. Robust recurring revenues from its industrial business and proactive portfolio streamlining further support margin expansion and long-term value creation. We believe a premium valuation is justified by the company's leverage to the AI infrastructure buildout and the resulting growth acceleration and margin expansion.

BSD Analysis:
Aristotle initiated a position in Coherent based on the company's strategic positioning at the intersection of AI infrastructure and photonics technology. The fund's thesis centers on Coherent's leadership in the structural shift from copper to optical networking driven by AI data center demands. The company's vertical integration across the entire photonics stack provides a defensible competitive moat, while expanding Indium Phosphide capacity positions it to capitalize on growing demand. The manager highlights the massive serviceable addressable market projected to exceed $70 billion by 2030, with strategic partnerships including NVIDIA validating the technology leadership. Recurring revenues from the industrial business segment provide stability while the company streamlines its portfolio for margin expansion. The fund believes premium valuation is justified given Coherent's leverage to AI infrastructure buildout and expected growth acceleration.

Pitch Summary:
We initiated a position in Once Upon a Farm during their IPO. The company is a rapidly growing leader in modern childhood nutrition providing innovative, nutrient-packed, organic food. Its products are made with no added sugar, no preservatives, and nothing artificial. Once Upon a Farm is led by industry veteran John Foraker — who ran Annie's as a public company — who joined with Jennifer Garner to help build the company. We believe Once Upon a Farm is one of the most compelling emerging brands in natural and organic food, with a differentiated product, strong management, and a still-early distribution footprint that we expect to drive many years of compounding growth. Once Upon a Farm's products are unique via its product technology. Its core pouches are produced using high, cold pressure, never heating them above 40 degrees, which preserves nutrients and produces a taste and texture as if it were homemade. Traditional baby food manufacturers rely on high-heat processing to create shelf-stable products, a method that compromises nutritional quality. That product quality has translated into a loyal and vocal consumer base with high Net Promoter Scores and strong word of mouth marketing. The company also sells pouches specifically formulated for babies, which are increasingly distributed through coolers in the baby aisle. As of December 31, 2025, Once Upon a Farm has over 3,400 coolers deployed nationally. The company believes its coolers are highly incremental to baby food category growth, leading to larger and more profitable baskets for retailers. We believe over time the company can have close to 15,000 coolers driving significant revenue, as they both expand distribution and revenue per cooler through new product introductions. We expect growth of over 25% with expanding profitability driven by innovation in the core pouch business, further expansion into kid snacking, and as the company methodically enters new categories. We can envision a business that can scale to over $1 billion in revenues in time. That is nicely profitable and worth a high multiple of earnings as a standalone company or as part of a large food company. If this plays out that way, the company will be worth multiples of where we have established our position

BSD Analysis:
The manager presents an enthusiastic bull case for Once Upon a Farm as a compelling emerging brand in natural and organic food with significant growth potential. The company's differentiated cold-pressure technology preserves nutrients better than traditional high-heat processing, creating superior taste and texture that drives high customer loyalty and Net Promoter Scores. Strong management led by industry veteran John Foraker (former Annie's CEO) and celebrity co-founder Jennifer Garner provides credibility and brand recognition. The distribution strategy through specialized coolers creates incremental category growth for retailers while expanding the company's footprint from 3,400 to potentially 15,000 coolers. The manager projects 25%+ growth with expanding profitability across multiple growth vectors including core pouches, kid snacking expansion, and new category entry. Long-term vision includes scaling to $1 billion+ revenues with high profitability, potentially worth multiples of current valuation either standalone or as an acquisition target.

Pitch Summary:
Shares of property and casualty insurance software vendor Guidewire Software, Inc. declined during the quarter amid concerns about the disruptive impact of AI, which weighed broadly on software stocks. We retain conviction in Guidewire and believe its fundamentals remain robust. The company's cloud sales are accelerating, with annual recurring revenue benefiting from new customer wins, expansions, and migrations of its existing customer base. The ongoing shift away from on-premises deployments, along with strong customer references from insurers such as Liberty Mutual, The Hartford, and Sompo, should further accelerate customer migration to the cloud. Additionally, Guidewire is ramping investment in product development, which should facilitate cross-selling into its sticky installed base. AI should act as a tailwind, helping the company accelerate product releases, create products that were previously out of reach, and reduce the cost of customer implementations (a historical impediment to adoption). We believe these dynamics position Guidewire for sustained growth over the long term.

BSD Analysis:
Despite AI-related concerns weighing on the stock, the manager maintains strong conviction in Guidewire's long-term prospects. The company's fundamentals remain robust with accelerating cloud sales and growing annual recurring revenue from new wins, expansions, and customer migrations. Strong customer references from major insurers like Liberty Mutual, The Hartford, and Sompo validate the platform's value proposition and should drive continued cloud adoption. The manager views AI as ultimately a tailwind rather than a threat, expecting it to accelerate product releases, enable new product capabilities, and reduce implementation costs that historically impeded adoption. Increased product development investment should facilitate cross-selling opportunities into the sticky installed base, positioning Guidewire for sustained long-term growth in the insurance software market.

Pitch Summary:
Syndicated research provider Gartner, Inc. detracted from performance as valuation multiples compressed amid rising concerns around AI for IT services companies. Against this backdrop, shares of Gartner came under pressure after the company reported contract value growth that was slightly below expectations, underscoring the dramatic valuation compression at play. We continue to own Gartner given its large addressable market, significant competitive advantages, and robust free cash flow generation. Management has been extremely aggressive with share repurchases at these depressed valuation levels and remains steadfast in their belief that growth will rebound.

BSD Analysis:
The manager views the AI-driven sell-off in Gartner as creating an attractive opportunity despite near-term headwinds. While the stock faced valuation compression due to AI disruption concerns and slightly below-expected contract value growth, the manager emphasizes Gartner's fundamental strengths. The investment thesis is built on the company's large addressable market, significant competitive advantages, and robust free cash flow generation capabilities. Management's aggressive share repurchase program at depressed valuations demonstrates confidence in the business, with leadership maintaining conviction that growth will rebound. The manager appears to view current weakness as temporary, with the company's research and advisory model providing durable competitive moats in the technology services space.

Pitch Summary:
Planet Fitness, Inc., a leading franchiser and operator of low-cost fitness centers, detracted from performance after the company issued disappointing 2026 guidance that came in below investor expectations, especially relative to more aggressive three-year financial targets provided months earlier. During the quarter, the company's internal improvements under new leadership led to same-store sales growth of 5.7%, EBITDA increasing 12%, earnings per share rising 18.6%, and gym openings exceeding expectations. Longer term, we believe Planet Fitness will benefit from ongoing initiatives to improve member experience and franchisee returns, remaining well positioned as the category leader in the secularly attractive fitness industry. We believe the new management team is very strong and believe in their vision of enhancing the brand, evolving the offering, and revitalizing growth. The stock traded down to a very cheap multiple for this leading franchise business over this guidance faux pas, which will cure itself over time.

BSD Analysis:
Despite near-term guidance disappointment, the manager maintains a bullish long-term view on Planet Fitness based on strong operational fundamentals and new leadership. The company delivered solid quarterly metrics including 5.7% same-store sales growth, 12% EBITDA growth, and 18.6% EPS growth, with gym openings exceeding expectations. The manager believes the guidance miss was a temporary setback that created an attractive entry point at cheap valuations for the leading franchise business. The investment thesis centers on the new management team's vision to enhance the brand, evolve the offering, and revitalize growth in the secularly attractive fitness industry. The manager expects ongoing initiatives to improve member experience and franchisee returns will drive long-term value creation.

Pitch Summary:
RBC Bearings Incorporated is a proprietary aerospace and defense (A&D) and industrial solutions provider. Shares rose during the quarter as the company's end markets are undergoing significant, sustained growth—from A&D, led by marine-related programs, to commercial original equipment manufacturers, driven by Boeing's reaccelerated production ramp. As a top-tier supplier, RBC is well positioned to meet this elevated level of demand, which should persist for the foreseeable future.

BSD Analysis:
The manager presents a bullish outlook for RBC Bearings based on strong end-market dynamics across aerospace, defense, and industrial segments. The company benefits from significant sustained growth in A&D markets, particularly marine-related programs, and commercial OEM demand driven by Boeing's production ramp acceleration. As a top-tier supplier with proprietary solutions, RBC is well-positioned to capitalize on elevated demand levels that the manager expects to persist for the foreseeable future. The investment thesis relies on the company's strong market position and ability to meet growing demand in cyclically recovering end markets. The sustained nature of the growth drivers suggests a multi-year tailwind for the business.

Pitch Summary:
Cognex Corporation is a leading provider of machine vision solutions. Shares climbed during the quarter following a strong earnings report, with the company showing signs of a return to accelerated growth alongside material cost reductions initiated by the new management team, with whom we are very impressed. We believe Cognex is positioned to benefit from improving industrial conditions and has substantial latent operating leverage that could drive earnings to double over the next two to three years. We remain confident in Cognex's position as the best-in-class provider of advanced machine vision solutions.

BSD Analysis:
The manager expresses strong confidence in Cognex's turnaround story under new management. The company delivered a strong earnings report showing accelerated growth momentum combined with material cost reductions from the new leadership team. The manager is particularly impressed with the new management and believes Cognex is well-positioned to capitalize on improving industrial conditions. The investment thesis centers on substantial latent operating leverage that could drive earnings to double over the next two to three years. The manager views Cognex as the best-in-class provider in the advanced machine vision space, suggesting strong competitive positioning and market leadership in a critical automation technology.

Pitch Summary:
Vertiv Holdings Co is a leading global provider of critical digital infrastructure solutions for data centers, communication networks, and commercial and industrial environments, with one of the broadest offerings in electrical and thermal management equipment and services within the data center infrastructure industry. Shares increased after Vertiv reported blowout orders and backlog, well above expectations, and guided to meaningfully higher earnings. The company is benefiting from the industry's shift toward integrated and modular solutions. Vertiv is a leading provider of these solutions, backed by industry-leading servicing capabilities, and is also well positioned to support key technology transitions, including liquid cooling and direct current architectures. We underwrite that Vertiv will grow its revenues by over 40% in 2026 and 30% in 2027, with increasing margins and free cash flow. Though the stock is up a ton, it trades at a reasonable multiple. We continue to see big upside and hold a large position.

BSD Analysis:
The manager presents a compelling bull case for Vertiv based on exceptional order momentum and positioning in the AI infrastructure buildout. The company reported blowout orders and backlog well above expectations, driving meaningful earnings guidance increases. Vertiv benefits from the industry shift toward integrated and modular solutions, where it holds a leading position with superior servicing capabilities. The manager projects aggressive revenue growth of 40%+ in 2026 and 30% in 2027, supported by expanding margins and free cash flow generation. Key technology transitions like liquid cooling and direct current architectures provide additional tailwinds. Despite significant stock appreciation, the manager believes valuation remains reasonable and continues to hold a large position with expectations for substantial upside.

Pitch Summary:
Standex International Corporation reported a solid third quarter for fiscal year 2026, with increases in revenue, profits, and EBITDA. However, the stock dropped by over 8.9% due to revenue falling slightly short of analyst expectations. Despite impressive growth and earnings per share exceeding expectations, the company's valuation remains a concern. The stock is considered expensive on an absolute basis, especially in terms of adjusted earnings and operating cash flow. The company's historical focus on growth through acquisitions has been successful, but investors should be cautious due to the high valuation.

BSD Analysis:
Standex International's diversified operations across various segments, such as Electronics and Aerospace & Defense, have shown strong growth, driven by organic expansion and strategic acquisitions. The company's ability to navigate foreign currency fluctuations and increase profitability through volume growth and price hikes is commendable. However, the Scientific segment has faced challenges due to reduced demand from academic institutions, highlighting potential risks. While the company is priced attractively compared to peers, its absolute valuation remains high, posing a risk for value investors. The firm's solid operating history provides some reassurance, but caution is advised given the current market conditions.

Pitch Summary:
Braskem S.A. is positioned for a potential turnaround as the global petrochemical sector experiences a shift from oversupply to scarcity. The company's distressed bond, purchased at $30, reflects its long maturity and junior guarantees, offering significant upside potential. With feedstock shortages leading to shutdowns in Asia and Europe, Braskem's operations in Brazil are poised to benefit from increased spreads and improved margins. This shift could reverse the company's cash burn and add substantial value to both its debt and equity.

BSD Analysis:
Braskem's strategic focus on navigating the current feedstock shortages and capitalizing on improved market conditions positions it well for a recovery. The company's ability to leverage its Brazilian operations, where spreads have increased significantly, provides a competitive edge in the global petrochemical market. As the sector adjusts to new supply dynamics, Braskem's financial performance could see a marked improvement, enhancing its attractiveness to investors. However, the company's long-term success will depend on its ability to manage operational challenges and adapt to evolving market conditions.

Pitch Summary:
The Vanguard S&P Small-Cap 600 Index Fund ETF (VIOO) has shown strong performance in 2025 and 2026, outperforming its peers with less volatility. The ETF is well-positioned for a bullish 2026, particularly with its current industry weightings in financials and healthcare. VIOO's strategy of tracking the S&P SmallCap 600 Index provides a balanced exposure to small-cap stocks, which have been performing well amidst market volatility. The fund's low expense ratio and liquidity make it an attractive option for investors seeking exposure to small-cap stocks. Despite potential risks from interest rate fluctuations and new tariffs, VIOO's diversified portfolio and strategic sector weightings offer a solid investment opportunity.

BSD Analysis:
VIOO's recent outperformance is attributed to its strategic sector weightings, particularly in financials, which benefit from higher interest rates. The fund's low expense ratio of 0.07% and liquidity, with a daily trading volume of over 100,000 shares, enhance its appeal. While small-cap stocks face risks from interest rate changes and geopolitical tensions, VIOO's diversified approach mitigates these risks. The ETF's focus on U.S. small-cap companies aligns with Morgan Stanley's bullish outlook for 2026, particularly in the financial sector. Overall, VIOO offers a compelling investment case for those seeking exposure to the small-cap segment with a balanced risk-reward profile.

Pitch Summary:
Bombardier has shown strong financial performance in Q1 2025, with a significant increase in customer advances and a robust order backlog, indicating strong future growth potential. The company is focusing on expanding its capacity for the Challenger series and has transitioned smoothly to the Global 8000, replacing the Global 7500. Despite some delivery challenges due to supplier issues, Bombardier's diversified revenue strategy has mitigated impacts, and the services segment continues to perform well. The company is also making strategic investments in new facilities and has a positive outlook for free cash flow, expecting over $1 billion in 2026. With a strong defense backlog and potential M&A opportunities, Bombardier is well-positioned for sustained growth.

BSD Analysis:
Bombardier's strategic focus on expanding its business jet offerings and enhancing its service capabilities is expected to drive long-term growth. The company's ability to manage and overcome supply chain challenges demonstrates operational resilience. With a strong order book and increasing flying hours, Bombardier is capitalizing on the growing demand for business aviation. The company's deleveraging efforts, including significant debt repayments, have improved its financial flexibility, allowing for potential strategic acquisitions in the defense or services sectors. As Bombardier continues to invest in capacity and innovation, it is poised to capture market share and enhance shareholder value.

Pitch Summary:
Amazon's recent quarter demonstrated strong performance, particularly in its AWS segment, which saw a 28% growth rate and a 37.7% operating margin. This indicates that AI demand is not only robust but also profitable. The company's revenue guidance for Q2 is significantly above expectations, suggesting continued strong performance. Despite a noisy EPS beat due to a $16.8 billion pre-tax gain from its Anthropic investment, the core operating results were solid. Amazon's strategic investments in custom silicon and AI infrastructure are expected to provide long-term economic advantages. The market's positive reaction reflects confidence in Amazon's ability to maintain growth and profitability amidst heavy capital expenditures.

BSD Analysis:
Amazon's AWS segment is a key driver of its growth, with the potential to deliver significant long-term value through its custom silicon initiatives. The company's ability to manage costs while expanding its AI capabilities is crucial for sustaining its competitive edge. Despite the high capital expenditures, Amazon's strategic investments are aimed at building a structurally advantaged AI infrastructure, which could lead to substantial future returns. The company's decision to provide a realistic profit guide, including known cost burdens, enhances investor confidence in its financial transparency. However, the stock's valuation remains dependent on the successful execution of its 2027-2028 earnings and cash flow targets.