Investment Pitches

Pitch Summary:
Core Scientific operates one of the largest digital mining infrastructures in North America, offering self-mining and HPC hosting services. Post-bankruptcy restructuring has improved its balance sheet, and the stock is forming an inverse head-and-shoulders pattern signaling a breakout to new highs. Institutional investors are showing renewed interest as BTC trends higher.

BSD Analysis:
Macro Ops identifies CORZ as a turnaround winner with scale advantage in digital infrastructure. Improved leverage metrics, growing HPC hosting demand, and technical recovery support near-term upside. Bitcoin correlation remains a risk factor.

Pitch Summary:
Bit Digital designs, develops, and operates high-performance computing data centers providing cloud-based GPU processing for AI and digital asset mining. With a market cap near $1B, it offers institutional scalability and multi-segment exposure (mining, staking, and AI compute). After four years of consolidation, the stock is forming an ascending triangle poised for breakout above $6.

BSD Analysis:
Bit Digital represents a hybrid crypto–AI infrastructure play. Institutional adoption potential, diversified revenue streams, and technical breakout patterns offer asymmetric upside if risk appetite persists.

Pitch Summary:
Canaan is a technology company specializing in high-performance computing chips and systems for Bitcoin mining. The stock exhibits one of the best technical setups within the Bitcoin Miners ETF (WGMI): a rectangle base pattern with potential breakout above the 50- and 200-day moving averages in a bull quiet regime. Despite negative margins, momentum traders view it as a high-beta play on Bitcoin’s next leg higher, particularly if BTC exceeds $125,000.

BSD Analysis:
The fund highlights Canaan as a speculative leverage play on Bitcoin infrastructure. Despite weak fundamentals and negative margins, improving network hash rates and strong technical momentum drive short-term upside. High volatility makes it suitable only for tactical exposure.

Pitch Summary:
Ziff Davis, Inc. operates through two primary segments: Business Cloud Services and Digital Media. The management team has a demonstrated track record of disciplined capital allocation and value creation, particularly through strategic, accretive acquisitions. The stock rebounded following the company’s first return to organic growth in nearly four years, marking a clear inflection point and helping to restore investor confidence. EBITDA margin expansion reflected a healthy balance between profitability and reinvestment. Additionally, enhanced segment-level disclosure has improved transparency, enabling more robust sum-of-the-parts analysis and allowing the market to better assess intrinsic value. We believe sustained organic growth, combined with continued disciplined M&A execution, provides a path for further multiple expansion. Given the company’s attractive valuation and improving fundamentals, we maintained our position during the period. :contentReference[oaicite:15]{index=15}

BSD Analysis:
ZD’s mix shift and returning organic growth set the stage for multiple expansion. Strong FCF and M&A discipline remain hallmarks; improved disclosure tightens the SOTP case. Execution on growth and margins should drive upside.

Pitch Summary:
Halozyme Therapeutics, Inc. is a leading drug delivery platform company built around its proprietary and commercially validated ENHANZE® technology. This innovative enzyme enables the subcutaneous delivery of biologics and fluids, transforming hours-long intravenous infusions into quick injections delivered in minutes. The technology reduces treatment burden for patients and alleviates capacity constraints for healthcare providers. Halozyme reported a strong quarter, with royalty revenues up 65% and continued uptake of its drugs, along with expanding use-case indications from its pharmaceutical partners. Management raised full-year guidance for both revenues and earnings, which was well-received by investors. During the period, we trimmed our position as the share price appreciated, consistent with our disciplined valuation approach. :contentReference[oaicite:14]{index=14}

BSD Analysis:
HALO’s high-margin royalty model compounds with partner uptake; ENHANZE is a sticky platform. Guidance raises and pipeline breadth support earnings visibility; FCF conversion is excellent. Pullbacks offer add points.

Pitch Summary:
Madrigal Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a non-alcoholic liver disease with a high unmet medical need. The stock performed well on evidence of a very strong commercial launch and execution of Rezdiffra, a new drug therapy that has put Madrigal on an annualized pace for more than $1 billion in new sales this year. With U.S. market penetration in the single digits, the therapy has the potential to grow into a multi-billion-dollar blockbuster over time. In addition, the company in-licensed an oral GLP-1 drug, and additional therapies in the pipeline also show promise of incremental growth. During the period, we trimmed our position as the share price appreciated, based on our valuation discipline. :contentReference[oaicite:13]{index=13}

BSD Analysis:
MDGL’s first-mover advantage in MASH plus expanding label/adjacent assets support multi-year growth. Early launch metrics de-risk forecasts; balance sheet optionality enables pipeline build-out. Valuation rich but justified if penetration expands.

Pitch Summary:
Align Technology, Inc. is a global leader in dental technology and the maker of Invisalign clear aligners. We were initially drawn to Align for its strong competitive position and innovative iTero digital scanning system, which enables clinicians to design more precise treatment plans and enhances the overall patient experience. The stock underperformed during the quarter as expectations for a demand rebound did not materialize. Patient conversion rates softened, most notably within the teen segment, where revenue growth slowed to 3%. In addition, market share gains reversed amid a weaker macroeconomic backdrop for discretionary dental procedures and a shift toward lower-cost wires and brackets. Given these dynamics, we trimmed our position during the period. :contentReference[oaicite:12]{index=12}

BSD Analysis:
ALGN faces cyclical and competitive headwinds; mix shift to lower-cost alternatives pressures pricing. Longer-term, digital adoption persists, but near-term volume softness argues for caution. Watchteen demand, international mix, and ASP stabilization as triggers.

Pitch Summary:
Sprout Social, Inc. provides a leading platform that enables businesses to manage, monitor, and optimize their social media presence. The company’s platform is recognized for its intuitive design, ease of deployment, and direct integrations across major social networks—features that underpin its competitive advantage. Despite delivering results ahead of expectations, the stock underperformed during the period following another reduction in forward guidance. In a market environment increasingly rewarding a “beat and raise” pattern, this guidance reset overshadowed otherwise solid execution. We believe the resulting pullback was excessive, given Sprout’s durable double-digit growth trajectory, expanding margin profile, and compelling valuation. With a strong competitive position and growing relevance to modern enterprises, we used the share price weakness as an opportunity to modestly increase our position during the period. :contentReference[oaicite:11]{index=11}

BSD Analysis:
SPT’s net retention and platform breadth support durable growth; margin expansion from scale and upsell remains intact. Guidance reset creates entry; expect re-acceleration as enterprise wins compound. Balance sheet lightness and recurring revenue temper risk.

Pitch Summary:
Alight, Inc. is a leading cloud-based human capital technology provider of enterprise-level software that helps businesses and their employees manage critical human resources functions. Through its investments in software and automation, Alight has built a distinct advantage that allows its customers to deliver HR services at a much lower cost while providing a better experience for employees. The stock underperformed during the quarter following disappointing sales and lowered revenue guidance. A year-long technology transformation— migrating services to the cloud, integrating AI capabilities, and coinciding with CEO and CFO changes—proved more disruptive than anticipated. Customer retention declined from ~98% to ~93%, and new sales remained soft amid execution challenges and a weaker macro environment. Cost controls have stabilized EBITDA, but revenue normalization may take years rather than quarters. Given this mixed outlook, but recognizing the stock’s compelling valuation, we reduced our position during the period. :contentReference[oaicite:10]{index=10}

BSD Analysis:
Execution risk is now the core debate—product migration and leadership turnover are weighing on growth and retention. With EBITDA stabilized, deleveraging and renewal cycles could be medium-term fixes, but near-term topline remains challenged. Until bookings inflect, risk/reward skews cautious.

Pitch Summary:
Consensus Cloud Solutions returned to growth two quarters earlier than expected, reporting margins in the mid-50% range and securing a credit facility that resolved near-term debt concerns. The company trades at ~5x earnings with a 20% FCF yield, providing significant upside potential.

BSD Analysis:
Meridian’s analysis underscores Consensus as a turnaround story quietly transforming into a high-margin FCF generator. Its early return to revenue growth, disciplined cost management, and stable healthcare vertical exposure provide earnings durability even in a soft macro backdrop. With 55%+ EBITDA margins and recurring cash flow resilience, the business now enjoys balance sheet flexibility to pursue bolt-on acquisitions. Trading at just 5x earnings, the setup offers deep value with visible catalysts tied to new digital health integrations and expanded enterprise adoption.

Pitch Summary:
Zenas BioPharma advanced its Phase 3 trials for Obexelimab and secured up to $300 million in non-dilutive financing from Royalty Pharma to fund commercialization. The fund trimmed its position after share appreciation.

BSD Analysis:
Meridian continues to see Zenas as a high-conviction biotech position with significant asymmetric upside potential. The non-dilutive funding from Royalty Pharma materially extends cash runway into 2027, reducing capital risk while accelerating Obexelimab’s path to commercialization. With Phase 3 data expected in late 2025 and peak sales potential exceeding $2B globally, the valuation upside remains meaningful. Broader pipeline assets in immunology and endocrinology add diversification and optionality.

Pitch Summary:
Turning Point Brands posted 651% year-over-year growth in its nicotine pouch business, far exceeding expectations. The company raised its growth and profit outlook and continued to gain share in both retail and direct-to-consumer channels. The fund trimmed its position after strong appreciation.

BSD Analysis:
Meridian’s thesis emphasizes Turning Point’s successful pivot toward next-generation nicotine products as combustible volumes decline. The nicotine pouch category’s explosive growth validates TPB’s diversified approach to modern oral tobacco. With expanding gross margins, channel diversification, and pricing power, the company is positioned for steady double-digit earnings growth. At 12x forward EPS and improving FCF conversion, TPB remains undervalued versus global peers despite its faster innovation cycle and brand loyalty metrics.

Pitch Summary:
Kirby shares weakened as barge utilization declined amid a softer regional refining mix, pressuring pricing. Despite near-term challenges, management’s long-term outlook remains positive, citing strong supply-demand dynamics and disciplined capacity additions. The fund added to its position during the quarter.

BSD Analysis:
Meridian identifies Kirby as a stable compounder in industrial logistics with countercyclical characteristics. Its dominant market position, strong asset quality, and history of prudent capacity discipline make it well suited to benefit from any refining cycle rebound. With net leverage below 2x and FCF yield approaching 7%, the business can self-fund maintenance and acquisitions without diluting shareholders. Over time, modest demand recovery in petrochemicals should drive pricing normalization and steady EPS growth.

Pitch Summary:
Sprout Social delivered results ahead of expectations but reduced forward guidance, triggering a selloff in a market focused on “beat and raise” dynamics. Despite this, its platform continues to demonstrate durable double-digit revenue growth, expanding margins, and strong customer adoption. The fund used the pullback to modestly increase its position.

BSD Analysis:
Meridian remains constructive on Sprout Social, seeing the stock’s weakness as sentiment-driven rather than fundamental. The company’s combination of expanding ARR, strong net retention (>120%), and disciplined expense control highlights its durable SaaS economics. Margin expansion through automation and enterprise migration should lift FCF conversion above 20% within two years. At ~8x forward EV/sales, valuation aligns with high-quality SaaS peers growing at similar rates, providing a favorable setup for multiple expansion once execution confidence returns.

Pitch Summary:
Alight underperformed during the quarter following disappointing sales and lowered revenue guidance. Its year-long technology transformation—including migrating services to the cloud and integrating AI—proved more disruptive than expected. Customer retention declined from ~98% to ~93%, while execution challenges and a weak macro backdrop dampened sales. Despite cost controls stabilizing EBITDA, management warned that normalization could take years. The fund reduced its position during the quarter.

BSD Analysis:
Meridian views Alight’s underperformance as indicative of deeper structural challenges in its service delivery transformation. While cloud migration and AI integration should eventually improve efficiency, the current friction from customer attrition and delayed implementation cycles has impaired near-term revenue visibility. At 5x EBITDA, valuation appears inexpensive, but the lack of meaningful top-line momentum suggests value could remain trapped. For long-term investors, success hinges on stabilizing retention, accelerating AI-driven automation, and demonstrating sustained margin recovery. Until then, the risk/reward balance remains skewed toward caution.