Investment Pitches

Pitch Summary:
Plug Power is poised for long-term growth due to its leadership in hydrogen fuel cell technology and increasing demand for alternative energy solutions, particularly in AI data centers.

BSD Analysis:
Plug Power's strategic positioning in the hydrogen fuel cell market is bolstered by its extensive global pipeline and partnerships, such as the recent 3 GW electrolyzer deal in Australia and a $5.5 billion project in Uzbekistan. The company's focus on green hydrogen aligns with global trends towards sustainable energy, and its modular electrolyzers offer scalable solutions for various industries. Despite current financial challenges, including a net loss and negative gross margin, Plug Power's revenue is expected to grow significantly, driven by electrolyzer sales. The company's ability to secure data center backup power deals and potential primary power contracts could further enhance its market position. The relationship with solar energy is crucial, as it supports the cost-effective production of green hydrogen.

Pitch Summary:
Aptiv is preparing to spin off its electrical distribution systems operations, which could benefit from increasing automotive content and industry tailwinds.

BSD Analysis:
Aptiv's decision to spin off its electrical distribution systems operations is a strategic move to capitalize on the growing demand for advanced automotive technologies. The spin-off is expected to allow Aptiv to focus on its core competencies while enabling the new entity to leverage industry tailwinds such as the increasing complexity and content in modern vehicles. Despite recent valuation challenges due to market uncertainties, the spin-off could unlock significant value by highlighting the growth potential of the electrical distribution segment. This move is part of Aptiv's broader strategy to streamline operations and enhance shareholder value.

Pitch Summary:
Fronterra plans to separate its Colombian infrastructure business from its exploration and production operations, creating two distinct entities with different earnings profiles.

BSD Analysis:
The separation of Fronterra's Colombian infrastructure business from its exploration and production operations is expected to result in two companies with distinct operational focuses and financial profiles. The E&P segment, with a substantial operating EBITDA, will likely attract investors interested in energy production, while the infrastructure segment, with its adjusted EBITDA, may appeal to those seeking stable, utility-like returns. This strategic move is designed to unlock value by allowing each segment to pursue tailored growth strategies and operational efficiencies. The spin-off aligns with Fronterra's goal of optimizing its business structure to enhance shareholder returns.

Pitch Summary:
Stora Enso plans to spin off its Swedish forest assets in the first half of 2027, which is expected to unlock significant value for both the forest assets and its core packaging business.

BSD Analysis:
The spin-off of Stora Enso's Swedish forest assets is anticipated to create a dynamic shift in the company's structure, potentially enhancing shareholder value by focusing on its core packaging operations. The separation is likely to highlight the distinct value of the forest assets, which could attract investors interested in forestry. The sizable nature of the spin-off suggests that it could lead to a revaluation of both the spinco and holdco, providing opportunities for investors to capitalize on the differentiated business models. The strategic move aligns with Stora Enso's long-term vision of optimizing its asset portfolio and focusing on sustainable growth.

Pitch Summary:
Polar Capital Holdings plc (1.7%) (POLR – $6.48/£4.82 – LSE), headquartered in London, is a specialist active asset manager focused on high-conviction thematic strategies. As of 30 September 2025, AUM reached £26.7bn, up 15% over the quarter, driven by £3.6bn of fund performance and market movements, with modest net outflows of £58m. Its growth and thematic funds, including Artificial Intelligence, Global Technology, Emerging Market Stars, and Biotechnology, accounted for £350m of net inflows, while European and UK strategies saw combined outflows of £175m. We believe market volatility, a growing return dispersion, and a renewed allocator focus on alpha generation will create a more favorable environment for active management. Polar Capital is well positioned to benefit from this shift, underpinned by its differentiated strategies, global distribution capabilities, and scalable operational platform.

BSD Analysis:
The manager’s thesis is that Polar Capital offers leveraged exposure to a rebound in active management, with high-conviction thematic equity strategies driving organic growth on top of market-linked AUM tailwinds. The mix shift toward AI, technology and emerging-markets “stars” strategies supports higher fee potential and differentiates the franchise from more commoditized core equity offerings. The business model is capital-light and naturally scalable, so incremental AUM should translate into margin expansion and strong cash generation over time, supporting an attractive and growing dividend profile. Offsetting this, the group remains sensitive to equity market drawdowns, style rotation away from growth/thematic strategies, and ongoing fee pressure across the industry. Execution risk also lies in adding new teams without diluting culture or returns, and in managing key-person risk among star managers. Overall, the combination of healthy AUM momentum, strong distribution, and a shareholder-friendly capital return framework makes Polar a compelling way to play a more dispersion-driven equity environment.

Pitch Summary:
Nitto Boseki Co., Ltd. (1.0% of net assets as of September 30, 2025) (3110 – $44.57/¥6,590.54 – Tokyo) is a maker of glass cloth used in copper clad laminate, the base material of printed circuit boards. As semiconductors become more powerful, and as the density of chips on a printed circuit board increases, heat volatility becomes a greater problem. Copper and laminate must expand at the same rate under such conditions or risk ‘mission critical’ damage. Nitto Boseki’s glass cloth is engineered for this purpose. Other materials (e.g., MetroCirc of Murata (6981)) are expensive and still experimental. The extremely high specifications needed to manufacture glass cloth mean few players exist globally. Nitto Boseki has an 80% market share. The risk is that competitors AGC (5201), Taiwan Glass (1802.TW), and AGY (private U.S.) could expand capacity more quickly and erode Nitto Boseki’s position in the longer term.

BSD Analysis:
The manager is effectively underwriting an oligopolistic supplier of high-spec glass cloth that is mission-critical for high-density printed circuit boards, with structural demand support from rising semiconductor complexity and AI-driven compute needs. Nitto Boseki’s 80% share in a difficult-to-replicate niche, combined with high technical specifications and qualification hurdles, create meaningful switching costs and barriers to entry. While the business is exposed to cyclical electronics and capex cycles, its strong competitive position and diversified end markets (electronics, industrial, building materials, life science) provide some resilience. Valuation likely embeds a quality premium versus traditional textile and materials peers, but that can be justified if margin expansion and volume growth from advanced substrates continue. Key risks are faster-than-expected capacity additions from AGC, Taiwan Glass or other rivals, as well as customer concentration and technology shifts that might alter substrate requirements. Catalysts include continued strong PCB and AI-server demand, incremental capacity additions at attractive returns, and improved disclosure around segment profitability that can support a higher quality multiple.

Pitch Summary:
Madison Square Garden Sports Co. (1.5% of net assets as of September 30, 2025) (MSGS – $227.00 – NYSE), owner of the New York Knicks basketball team and the New York Rangers hockey team, is one the few ways for the public to access the positive dynamics of sports franchises. The company’s predecessor was spun-off from Cablevision in 2010 and subsequently separated its venue and entertainment businesses. Team values have appreciated significantly as they represent excellent stores of value in an inflationary environment; basketball in particular has significant global growth potential. The Knicks on-court has also improved with a core of young players that should engender additional fan engagement and create incremental pricing power in future years.

BSD Analysis:
We see MSG Sports as an asset-rich, cash-generative owner of “trophy” sports franchises trading at a material discount to private-market valuations implied by recent NBA and NHL transactions. New media rights deals, dynamic pricing and international monetization of the Knicks brand can drive earnings and cash-flow growth even if on-court results are only modestly better than history. The key overhang remains governance and the so-called “Dolan discount,” but incremental steps such as minority stake sales or more active capital-return policies could catalyze re-rating. Long-duration, inflation-hedged asset value provides a strong underpin to the equity, in our view.

Pitch Summary:
Polar Capital Holdings plc (1.7%) (POLR – $6.48/£4.82 – LSE), headquartered in London, is a specialist active asset manager focused on high-conviction thematic strategies. As of 30 September 2025, AUM reached £26.7bn, up 15% over the quarter, driven by £3.6bn of fund performance and market movements, with modest net outflows of £58m. Its growth and thematic funds, including Artificial Intelligence, Global Technology, Emerging Market Stars, and Biotechnology, accounted for £350m of net inflows, while European and UK strategies saw combined outflows of £175m. We believe market volatility, a growing return dispersion, and a renewed allocator focus on alpha generation will create a more favorable environment for active management. Polar Capital is well positioned to benefit from this shift, underpinned by its differentiated strategies, global distribution capabilities, and scalable operational platform.

BSD Analysis:
We think Polar Capital provides geared exposure to a potential renaissance in active management as investors refocus on alpha and thematic allocations after years of passive dominance. The company’s specialist boutiques, strong investment culture and scalable infrastructure mean incremental AUM can drop through at attractive margins, supporting dividend growth and optional share buybacks. Near-term flows may remain choppy given style rotations and macro uncertainty, but the diversified product range and robust balance sheet offer resilience. On a mid-single-digit EV/EBIT multiple with a healthy yield, we see scope for both earnings growth and multiple expansion if flows normalize.

Pitch Summary:
Nitto Boseki Co., Ltd. is a maker of glass cloth used in copper clad laminate, the base material of printed circuit boards. As semiconductors become more powerful, and as the density of chips on a printed circuit board increases, heat volatility becomes a greater problem. Copper and laminate must expand at the same rate under such conditions or risk ‘mission critical’ damage. Nitto Boseki’s glass cloth is engineered for this purpose. Other materials (e.g., MetroCirc of Murata (6981)) are expensive and still experimental. The extremely high specifications needed to manufacture glass cloth mean few players exist globally. Nitto Boseki has an 80% market share. The risk is that competitors AGC (5201), Taiwan Glass (1802.TW), and AGY (private U.S.) could expand capacity more quickly and erode Nitto Boseki’s position in the longer term.

BSD Analysis:
Nitto Boseki offers a rare combination of mission-critical technology, dominant global share and exposure to secular semiconductor complexity growth, which supports durable pricing power and margins. As OEMs push for tighter thermal management and reliability in high-layer-count boards, qualifying alternative materials is slow and risky, giving Nitto Boseki a strong incumbent advantage. While new capacity from rivals could eventually pressure share and pricing, long lead times and technical barriers make a sudden disruption unlikely. We see upside from continued ASP improvement and mix shift toward higher-spec applications, partially offset by cyclical swings in electronics demand.

Pitch Summary:
OR Royalties Inc. is a precious metals royalty and streaming company with a diversified portfolio of over 195 investments in gold and silver mines. The company delivered a strong second quarter, driven by higher gold and silver prices that boosted revenue by more than 30% year-over-year. OR also achieved several milestones during the quarter. These included first payments from two mines that are expected to ramp up meaningfully in the second half of 2025. In addition, OR Royalties expanded its portfolio through the acquisition of a couple of new royalty streams. Finally, one of its investees secured financing to begin construction of a project where OR Royalties holds a 5% royalty. The company ended the quarter in a net cash position, reinforcing its ability to execute on its disciplined capital allocation strategy and positioning the company to deliver on its reaffirmed five-year growth outlook.

BSD Analysis:
OR Royalties is a high-quality, lower-risk way to participate in precious-metal upside: its royalty/streaming model delivers high margins and cash conversion while insulating the company from operating and cost inflation risk at the mine level. With a net cash balance sheet, a deep pipeline of development-stage assets and management intent on disciplined capital allocation, there is room for both organic growth and accretive deals without stressing the balance sheet. The current valuation does not fully reflect the embedded volume growth in ramping assets plus optionality from new royalties financed out of internal cash flow. The key swing factors are commodity prices and execution on M&A, but we think the diversified, long-life portfolio provides a solid margin of safety.

Pitch Summary:
Everus Construction Group, Inc. (2.4% of net assets as of September 30, 2025) (ECG – $85.75 – NYSE), a leading specialty contractor in electrical, mechanical, and utility infrastructure services, delivered a record-setting second quarter, fueled by strong execution and robust demand across key end markets. Revenue surged 31% from the prior-year quarter and EBITDA increased 36% to a record. The Electrical & Mechanical (E&M) segment led performance, driven by strength in data center and hospitality projects. Meanwhile, the Transmission & Distribution (T&D) segment posted modest top-line growth but delivered significant margin expansion. Backlog ended the quarter up 24% year-over-year. With net leverage at just 0.8x and ample liquidity, ECG is well-positioned for potential M&A activity later this year. Management raised full-year revenue and EBITDA guidance, reflecting confidence in continued momentum.

BSD Analysis:
Everus offers leveraged exposure to secular grid investment, electrification and data center build-out while still trading on a mid-teens EBITDA multiple that looks undemanding versus peers given its balance sheet strength and growth profile. The combination of record backlog, rising margins in both E&M and T&D, and a net cash–like leverage position creates room for accretive M&A or stepped-up returns of capital if organic opportunities slow. Execution risk around large, complex projects and cyclicality in non-residential construction remain key watchpoints, but the diversified end-market mix and strong recent win rate mitigate some of that concern. Overall, we see a favorable risk/reward skew as investors increasingly pay up for high-quality infrastructure compounders.

Pitch Summary:
Omeros is a biotechnology company with a pipeline focused on complement-related diseases and immunology. The company’s latest-stage product is a monoclonal antibody called Narsoplimab, which is facing a key approval decision from the FDA later this year for the treatment of a condition called hematopoietic stem cell transplant-associated thrombotic microangiopathy, a clotting disorder that is quite difficult to treat with current drugs and often deadly for patients. After a roller coaster of a development process, we feel the chances of approval are strong, and the risk/reward ratio is quite favorable. Omeros, which has in the past pursued almost entirely a go-it-alone strategy, is also in late-stage discussions for a possible partnership that if successfully completed would address balance sheet concerns that we believe are also leading to a discount in the market.

BSD Analysis:
The thesis here is a classic high-risk, high-reward small-cap biotech: if Narsoplimab is approved in this ultra-orphan indication, Omeros could see a step-change in revenue and justify a far higher valuation than its current sub-$1 billion market cap. The manager believes the totality of clinical data and unmet need tilt the FDA decision in the company’s favor, and a partnership would de-risk both commercialization and the balance sheet. Shares have historically been volatile and trade largely on binary regulatory and financing catalysts, making position sizing critical. Beyond the lead asset, Omeros has a broader complement and immunology pipeline that could add value over time but will require additional capital. A clean approval, non-dilutive partnership funding and early launch metrics are the key catalysts that could compress the company’s cost of capital and drive multiple expansion.

Pitch Summary:
Inogen develops portable oxygen concentrators for patients with chronic respiratory conditions. The company has struggled through years of mismanagement and share losses, as lower-priced, often foreign, competitors flooded the markets. However, the business has stabilized lately and Inogen retains a dominant market share and leading brand, which sustains a price premium. New management has done an excellent job guiding the company over the past couple of years, improving profitability and reaccelerating innovation in a market that should have years and years of secular growth ahead due to the country’s aging population.

BSD Analysis:
The manager is underwriting Inogen as a quality small-cap medical device turnaround, betting that brand strength and new leadership can restore growth and margins in a structurally expanding respiratory-care market. With a sub-$1 billion market cap and a history of operating losses, the stock has been de-rated, but even a return to mid-teens operating margins on modest high-single-digit revenue growth would imply substantial earnings power versus today’s base. Key drivers include execution on new product cycles, mix shift toward higher-margin portable concentrators, and tighter cost control after years of underutilized overhead. Competitive pricing pressure and reimbursement risk remain real, but Inogen’s direct-to-consumer channel and clinical track record offer strategic advantages. If management delivers on its efficiency plan and demonstrates sustained free cash flow, there is also medium-term optionality for strategic interest from larger medtech players.

Pitch Summary:
Bed Bath & Beyond may appear to be an unlikely addition to this fund, but the key attraction here is the growing interest in tokenization and the company’s stake in the tZERO exchange, which provides exposure to the development of alternative trading platforms. The company has recently appointed new management, which has begun implementing restructuring efforts aimed at improving operations and exploring strategic options. There is also the potential for asset sales or spinoffs that could unlock value. We believe the market may not fully reflect these factors in the current share price. While not a core part of our investment thesis, the company’s retail operations have been appropriately re-sized, which includes a small experiment with reopening a few offline locations of its well-known flagship brand, with a tighter focus on core categories and private-label brands. Most of the retail business will remain online, which should improve operational efficiency and stabilize profitability.

BSD Analysis:
The manager is treating Bed Bath & Beyond as a tokenization and special-situations vehicle rather than a traditional home-goods retailer, with upside tied to monetizing its stake in tZERO and other blockchain assets. Management’s restructuring, brand consolidation and tighter store footprint should help stabilize EBITDA, but core retail remains a low-margin, competitive business that justifies a modest multiple. Equity value is therefore highly sensitive to whether the company can surface hidden asset value through spinoffs, strategic sales or a public listing of its fintech holdings. Balance sheet leverage, execution risk on store conversions and the inherent volatility of crypto-related ventures are key risks. If management can demonstrate real progress at tZERO and sustain even mid-single-digit operating margins in retail, the stock could rerate meaningfully from depressed levels.

Pitch Summary:
Circle provides digital financial infrastructure and issues the popular USDC stablecoin. USDC is the second-largest issued stablecoin and has seen continued growth and increasing market share. Around the world, stablecoins are being used for a growing number of transactions across digital finance, including payments and settlement, which will likely expand the total addressable market for these coins over time. Circle operates under a regulatory framework and provides transparent financial disclosures, which differentiates it from most of its competitors, including the largest stablecoin, Tether. The company also has partnerships with established industry participants, including Coinbase, which we believe supports future growth in this market.

BSD Analysis:
The manager is effectively buying a levered play on the institutionalization of stablecoins, emphasizing Circle’s regulated status and transparency as a durable moat versus offshore competitors. With USDC gaining share and stablecoin usage broadening from trading into payments and settlement, revenue growth should track on-chain activity and interest on reserves, though earnings will remain sensitive to crypto cycles and short rates. Circle screens as a high-growth, asset-light fintech with premium revenue multiples, which can be justified if it sustains double-digit top-line growth and expands margins as compliance and infrastructure scale. Key catalysts include continued regulatory clarity around stablecoins, deeper integration with major exchanges and banks, and potential new products like tokenized treasuries or wallets that could diversify revenue. Execution risk, regulatory shifts, and concentration in a handful of blockchains remain the main drawbacks, but on balance the risk/reward favors a long position for investors comfortable with crypto-related volatility.

Pitch Summary:
The manager initiated a position in Lockheed Martin after a period of significant underperformance versus other defence contractors. The stock has been pressured by losing a major fighter-jet contract to Boeing and by an unexpected $1.6 billion charge related to its Aeronautics and Canadian helicopter programmes. These issues are described as a “black eye” for the company, but management has reiterated full-year earnings guidance, signalling confidence that the charges will adequately address the cost overruns. Lockheed also has a long history of dividend growth and offered a 3.1% yield at the time of purchase.

BSD Analysis:
The investment case frames Lockheed as a high-quality defence franchise temporarily weighed down by headline setbacks rather than impaired long-term economics. The manager expects the company’s strong programme portfolio and entrenched customer relationships to support earnings recovery once investors gain confidence that cost issues are contained. With an above-market dividend yield and potential for both earnings normalisation and sentiment repair, Lockheed is seen as an attractive total-return opportunity in a strategically important, cash-generative sector.