Investment Pitches

Pitch Summary:
Fortrea helps its biotech and pharmaceutical customers to run clinical trials with the goal of receiving marketing authorization in the U.S. and other countries. Fortrea helps design the trials, recruit investigators and participants, prepare data for regulatory review, and other tasks needed to win the authorization to market new treatments. The company spun out of Labcorp in June 2023, and is attempting to turn around the business. Fortrea currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Fortrea is still working through the messy aftermath of its spin, but the market is beginning to acknowledge the operational cleanup and commercial stabilization underway. The company inherited structural inefficiencies and legacy contracts that weighed on margins, yet early progress on cost actions, backlog quality, and client retention suggests the trough is behind it. While the CRO landscape is competitive, Fortrea’s scale, therapeutic breadth, and global delivery network provide a credible platform once integration issues are fully resolved. Cash flow visibility remains limited near term, but operational improvements should unlock meaningful margin recovery as the business normalizes. Valuation reflects deep skepticism, offering asymmetric upside if Fortrea can execute even a modest turnaround. This remains a classic small-cap self-help story with a wide gap between sentiment and improving fundamentals.

Pitch Summary:
With Thinkific, we bought shares in a Canadian company that helps its customers create and get paid for online courses. It is managed by one of its founders, and it is shedding customers as it pursues a new strategy targeting larger, higher lifetime-value customers. Despite the lower customer count, management has continued to find ways to grow revenue and improve cash flow. We paid C$1.87 per share, which I thought was a fine price for a well-managed business that should grow over time.

BSD Analysis:
Thinkific got caught in the post-pandemic hangover as creator-economy hype collapsed, but the underlying business is far stronger than the market narrative. The platform remains a best-in-class toolset for course creators, coaches, and small businesses that need a polished, scalable learning infrastructure. While growth slowed, Thinkific used the downturn wisely: tightened operating costs, revamped product features, and improved monetization through payments, communities, and bundles. Gross margins are healthy, the path to profitability is getting clearer, and the company is building a more predictable revenue base as creators professionalize their operations. The stock still trades like a busted COVID beneficiary despite having real competitive differentiation and a long-term tailwind as more businesses shift training and education online. Thinkific doesn’t need the creator boom to return — steady execution and disciplined cost control are enough to drive meaningful upside from here.

Pitch Summary:
GetBusy was already our largest position, but we bought a bit more (paying £0.66/share) after management forecast “material acceleration” in the SmartVault business. Then each of the CFO, CEO and a director added weight to those words by personally buying stock.

BSD Analysis:
GetBusy is the definition of a microcap that’s far more interesting than its market cap suggests. The company operates workflow, document management, and productivity tools designed for accountants and SMBs — niche markets, yes, but with ridiculously sticky customer bases and high retention. Revenue is recurring, churn is low, and GetBusy’s product improvements are pushing it toward better monetization without cranking up costs. The balance sheet is lean, burn is controlled, and the company has been edging toward breakeven with surprising consistency. GetBusy doesn’t need explosive growth to win — it just needs to keep compounding within its defensible niches while maintaining discipline. The market ignores it because it’s small, but operational execution keeps getting better. If management continues smoothing the revenue base and sharpening margins, this is one of those microcaps that quietly re-rates long before the broader market notices.

Pitch Summary:
Later in the quarter we sold shares of Credit Acceptance, reducing it to a bit more than 1% of the fund. We used the bulk of the proceeds to buy Kontoor, a stock that we have owned before. Kontoor spun out of VF Corp in 2019, comprising the jeans businesses Wrangler, and Lee. Since the spinoff, Kontoor has been a well-managed cash cow that has paid dividends and repurchased its stock. I think the Kontoor story changed earlier this year when the company bought Helly Hansen, an Outdoor and Workwear brand. The acquisition closed in July and appears to be going well. Before this acquisition, Kontoor was a well-managed cash cow that did not grow, as exemplified by their annual revenues still lagging behind their 2007 level. With the Helly Hansen acquisition, Kontoor appears to be dusting off the old VF Corp playbook: borrow to buy a good brand, manage it well, pay down debt, and repeat. Adding growth makes a well-managed cash cow more valuable, and that is what I believe is happening at Kontoor. We paid $72.54/share for our position.

BSD Analysis:
Kontoor is the denim cash machine investors keep sleeping on because the brands — Wrangler and Lee — aren’t dripping with hype. But the reality is simple: these labels have insane global recognition, stable demand, and supply-chain discipline that would embarrass larger apparel companies. Gross margins are expanding as Kontoor leans into DTC, tightens inventory, and pushes premiumization without alienating the value-conscious core. International markets — especially China — remain a massive under-monetized opportunity, and management is finally treating global growth as a priority instead of an afterthought. Free cash flow is consistently strong, the dividend is rock solid, and capital allocation is refreshingly rational. At today’s valuation, the stock trades like a dying legacy brand even though Kontoor has one of the cleanest balance sheets and most predictable earnings profiles in apparel. This is a boring-but-beautiful compounder hiding in plain sight.

Pitch Summary:
While Enhabit has been doing fairly well with its turnaround, I did not like the increasing headwinds facing the business and decided that we would be better off investing our money elsewhere. In early July, the Centers for Medicare and Medicaid Services (CMS) proposed cutting Medicare home health reimbursement rates even more aggressively than they have in the past few years. Medicare is Enhabit’s best-paying customer, and this cut—deeper than those of the past few years—was unexpected. With the prospect of not only continuing rate cuts but even deeper rate cuts, I reduced my valuation for the company. Enhabit has navigated the home health industry headwinds well so far, and its Hospice business is doing very well, but the headwinds are worse than I thought. As the U.S. population ages, demand for home health services will grow, but getting CMS and insurers to pay the rates that will allow home health companies to profitably expand supply now appears more challenging than I had expected.

BSD Analysis:
Enhabit is a deep-value home health and hospice spin-off struggling under a severe regulatory headwind that has structurally eroded its cash flow profile. The fund exited the position because the Centers for Medicare and Medicaid Services (CMS) aggressively cut home health reimbursement rates, which the manager views as a policy risk that is now worse than expected. While long-term demographics are favorable for home health, the margin compression from deep, unexpected rate cuts in a fixed-cost business model significantly caps future upside. The stock, trading around 8x forward EV/EBITDA and facing stagnant earnings visibility, warranted a pragmatic exit to redeploy capital into higher-growth, less policy-sensitive names. Despite management's ability to navigate past headwinds, the policy risk and limited pricing leverage make the turnaround path too challenging.

Pitch Summary:
Johnson & Johnson is a major healthcare company focused on innovative pharmaceuticals and medical devices. The company faces a critical transition as sales from its blockbuster drug Stelara begin to decline due to patent expiration. However, J&J is successfully executing on its strategy to offset these losses with a robust pipeline of new drugs, particularly in oncology and immunology. The stock responded positively in the quarter as the company demonstrated significant progress on multiple fronts. It secured a landmark FDA approval for Inlexzo, a new bladder cancer treatment with substantial sales potential, and its lung cancer drug Rybrevant moved closer to broader adoption after receiving positive trial data for a more convenient injection format. Strong sales momentum across other key drugs more than compensated for Stelara's decline, while favorable legal developments eased investor concerns about the company's ongoing talc litigation.

BSD Analysis:
Johnson & Johnson is executing a high-stakes pipeline defense to neuter the imminent Stelara patent cliff, ensuring its prized dividend crown remains secure. The company is systematically offsetting the inevitable loss of exclusivity with a robust, high-value pipeline in key franchises like oncology and immunology. Recent wins, including the landmark FDA approval for Inflexzo (bladder cancer) and positive data for its lung cancer drug, Rybrevant, provide tangible proof the strategy is working. Beyond pharmaceuticals, the diversified, durable medical devices business provides essential, non-cyclical cash flow resilience. Favorable legal developments around the long-standing talc litigation are now easing investor anxiety, removing a major overhang and clearing the path for the company to focus on its structural growth drivers.

Pitch Summary:
D.R. Horton, Inc. is the largest homebuilder in the United States by volume, with a strategic focus on the entry-level and first-time buyer segments. Our investment thesis centers on the company's ability to leverage its unmatched scale and production-oriented model to deliver affordable homes, a compelling value proposition in a market challenged by affordability. Its extensive presence across numerous high-growth Sunbelt markets solidifies its leadership position. The company’s operational efficiency drives strong cash flow generation, enabling significant capital returns to shareholders through buybacks while maintaining a 'land-light' strategy that reduces balance sheet risk. The stock outperformed during the quarter after the company reported surprising results across several metrics, including stronger-than-expected home closings and new orders (flat versus an expected decline), resilient gross margins that beat prior guidance, and a 2% year-over-year decline in construction costs. Management also raised share repurchase guidance, signaling confidence in future cash flows.

BSD Analysis:
D.R. Horton continues to prove why it’s the dominant force in U.S. homebuilding, leveraging scale, land discipline, and a broad product mix to capture outsized share in a chronically undersupplied market. The company’s focus on affordable and entry-level homes aligns perfectly with demographic and migration trends, driving exceptional absorption rates even in a high-rate environment. Margins have held up better than peers due to tight cost control, smart incentives, and an efficient build-to-order model. Cash flow remains robust, the balance sheet is pristine, and capital returns continue to enhance per-share value. Despite strong fundamentals, the stock still trades at a conservative multiple due to macro housing fears that have yet to materialize in DHI’s results. With structural supply shortages and demand resilience intact, D.R. Horton remains one of the cleanest long-term compounders in housing.

Pitch Summary:
Intercontinental Exchange, Inc. operates a global network of exchanges, clearing houses, and data services spanning major asset classes, including energy, equities, fixed income, and U.S. residential mortgages. We like the company for its resilient business model. It combines transaction-based revenues that benefit from market volatility with a growing base of recurring data and technology revenues, each generating strong, consistent cash flow for debt reduction and shareholder returns. The stock underperformed during the quarter, however, we maintain confidence in the company’s long-term potential.

BSD Analysis:
ICE continues to distinguish itself as one of the most durable data-and-exchange franchises, with high-recurring revenue, strong pricing power, and an expanding footprint across market infrastructure. The integration of Black Knight broadens ICE’s reach into mortgage tech, creating a more diversified growth engine that should benefit from long-term digitization of the mortgage ecosystem. Core exchange and clearing operations remain resilient, supported by deep liquidity pools and mission-critical data services. The company’s discipline in cost management and high cash conversion support consistent buybacks and dividend growth. While the stock often trades like a sleepy exchange operator, the combination of structural data demand and secular fintech penetration provides a long runway of double-digit EPS growth. ICE remains one of the clearest quality compounders in financial infrastructure.

Pitch Summary:
Kenvue, Inc. is a consumer health company with leading brands like Tylenol, Listerine, and Neutrogena. Spun off from Johnson & Johnson, we see significant opportunities for Kenvue to unlock value by reinvesting in historically underfunded brands, optimizing its cost structure, and improving margins to enhance cash flow. The company’s stock dropped sharply during the period after reports surfaced that a forthcoming U.S. Health and Human Services study would link acetaminophen (Tylenol's active ingredient) to elevated autism risk during pregnancy. We view the market reaction as overdone for several reasons: no new scientific evidence has established a causal link, pregnant women account for less than 1% of Tylenol’s global sales (minimal revenue impact), and similar claims were largely dismissed in litigation in late 2023 (though appeals remain pending). We continue to hold the company in the Fund and will closely monitor Kenvue’s progress.

BSD Analysis:
Kenvue is settling into its post-spin identity as a stable, cash-generative consumer-health business with category-leading brands and a defensible OTC portfolio. While near-term results have been noisy due to inventory normalization and lingering macro pressure in discretionary health, the long-term margin profile remains attractive. Management is executing well on cost initiatives, supply-chain simplification, and brand investment, all of which should expand gross and operating margins as 2025 unfolds. The balance sheet is improving, cash conversion is strong, and the company has clear visibility into steady dividend growth. Despite this, KVUE trades at a discount to consumer-health peers given its limited track record as a standalone entity. As execution stabilizes and brand momentum improves, the setup screens as a low-volatility compounder that the market is undervaluing.

Pitch Summary:
Liberty Broadband Corp. is a holding company with a 26% ownership stake in cable operator Charter Communications and full ownership of GCI, a broadband and wireless provider in Alaska. The investment case remains straightforward: Liberty Broadband’s shares trade at a meaningful discount to the value of its underlying assets— primarily its Charter stake—with a prospective merger between the two companies serving as the principal catalyst for value realization. The stock underperformed during the period, largely reflecting weaker sentiment across the cable sector following Charter’s softer second-quarter earnings update. Demonstrating the potential benefits of a future combination with Charter and a more streamlined corporate structure, Liberty completed the spin-off of its GCI subsidiary into a standalone entity in July. GCI’s shares traded roughly 20% higher following their listing, partially offsetting Liberty’s earlier weakness. Later in the period, Liberty’s shares recovered some ground after the announcement of a definitive merger agreement with Charter. With GCI now independent, Liberty Broadband’s management can focus exclusively on maximizing value from its Charter investment ahead of the merger, while GCI gains autonomy to pursue Alaska-focused growth initiatives.

BSD Analysis:
Liberty Broadband is basically a leveraged, tax-efficient bet on Charter — but the market is treating it like a structurally broken asset instead of a strategic holding company. Yes, cable subscriber growth is slowing, but Charter’s pricing power, cost discipline, and network upgrade plan (especially DOCSIS 4.0) give it far more durability than the dying-cable narrative suggests. Liberty’s structure amplifies Charter’s equity value while buybacks continue to shrink the float in both entities. The discount to NAV remains absurd, driven by sentiment rather than fundamentals, and Malone’s capital-allocation playbook is still very much alive: shrink the float, let cash flow compound, and wait for the market to wake up. Broadband isn’t glamorous, but it’s sticky, high-margin, and hard to disrupt at scale. Liberty Broadband is a rerating waiting to happen once the market stops treating cable like dial-up.

Pitch Summary:
nLIGHT, Inc. is a leading provider of high-power lasers serving the medical, industrial, and increasingly, defense markets. We initially invested in nLight as they transitioned the company to focus on laser defense applications that shield our troops from drones and enemy missiles. This represented new high-value customers to offset commoditized applications in industrial markets overrun by Chinese-manufactured low-cost lasers. During the quarter, investors re-rated the stock higher in recognition of the growing size of nLight’s addressable markets and its leadership position within them. We remain investors after trimming part of the position on strength as part of our disciplined risk management process. :contentReference[oaicite:9]{index=9}

BSD Analysis:
nLIGHT is one of the purest, most misunderstood plays on the coming laser-enabled manufacturing and defense upgrade cycle. The stock trades like a sleepy photonics supplier, but its high-power fiber lasers are exactly what next-gen metal cutting, EV battery production, and directed-energy defense systems require. Defense alone is a multibillion-dollar opportunity — and the Pentagon isn’t window-shopping; they need scalable laser tech now. nLIGHT has the IP, the production capability, and the government foothold to capture that demand. Commercial markets have been sluggish, but once industrial activity rebounds, this company has massive earnings torque because the fixed-cost base is already in place. Balance sheet strength gives nLIGHT the runway to ride out volatility, and the margin profile should expand significantly as defense mix increases. The market’s apathy is your opportunity — this is a small-cap advanced-manufacturing story sitting on a secular tailwind the market is barely pricing in.

Pitch Summary:
Planet Labs, PBC is a satellite and earth imaging company. They image the entire Earth daily with their constellation of proprietary satellites and have a database of more than 15- years of images which they sell as data. The data is analyzed and used for customer applications in defense, agriculture, conservation, and insurance, and is continually expanding to new use cases. We initially invested in 2024, when the stock fell out of favor due to slowing revenue growth in their commercial segment, a casualty of slowing enterprise software spending. We estimated that the stock was trading below our estimate of the value of its assets, including satellites, databases, and net cash. The market was placing little value on the business despite leading technology, a huge addressable market, and a good balance sheet. The stock performed strongly in the quarter due to a favorable market outlook for defense-related companies (while Planet Lab’s defense and government business continued to grow strongly), and improvement in the commercial business. We continue to hold a position in the company as we believe it has significant room to grow in the large potential earth imaging and analysis market. We did, however, reduce our position into strength during the quarter as part of our risk management process. :contentReference[oaicite:8]{index=8}

BSD Analysis:
Planet Labs is the space-data company everyone loves to dismiss as “sci-fi SaaS,” but the business is transitioning into something more serious — a must-have intelligence layer for agriculture, government, ESG compliance, and climate analytics. The constellation is already built, capex is falling, and the incremental cost of selling another subscription is basically zero. The issue has never been the tech — Planet’s imagery is unmatched — it’s been sales execution and converting science projects into recurring revenue. And that’s finally improving. Government contracts are scaling, multi-vertical adoption is broadening, and gross margins are moving where a real software-data platform should sit. The market still treats Planet like a cash-bleeding satellite toy, ignoring the fact that the economic model gets dramatically better as utilization rises. If management keeps tightening execution, the unit economics could flip from “hope” to “inevitable” very quickly. This is a high-risk name, but the asymmetry is huge.

Pitch Summary:
Kornit Digital, Ltd. is a leading provider of digital textile printing solutions, offering a more efficient and sustainable alternative to traditional screen printing for apparel and textiles. Its digitally enabled process requires fewer people, less energy, and less water. We initiated our investment last year after a prolonged stock decline from $180 to below $20, driven by volatile orders and macroeconomic concerns, including elevated interest rates. The stock contributed positively to fund performance last year, as demand stabilized and orders improved, supported in part by the company’s innovative product offerings and go-to-market strategies. However, shares have been weak in 2025 as macro and tariff issues have delayed orders and created uncertainty, but we continue to own the stock. In our experience, the combination of a leading technology, a large emerging addressable market, a strong balance sheet (>$10/share in cash), and reasonable valuation ( 0.7x EV/sales), are good reasons for patience. :contentReference[oaicite:7]{index=7}

BSD Analysis:
Kornit is the digital textile printer that investors abandoned the moment fast fashion slowed… just as the company is finally getting its act together. The shift to on-demand, inventory-light apparel isn’t going away, and Kornit remains one of the only players with industrial-scale tech that avoids waste, reduces labor, and shortens production cycles. After two years of painful resets, channel cleanups, and customer bankruptcies, Kornit now looks leaner, more disciplined, and far more realistic about demand. Margins are creeping back, consumables are ramping, and the high-speed MAX platform gives Kornit a legitimate competitive moat. The market still prices it like a broken growth stock, ignoring that the company’s tech advantage actually strengthened during the chaos. If apparel brands resume even a modest push toward nearshoring and sustainability, Kornit’s operating leverage will show up fast. This is a bruised but far-from-dead digital manufacturing story.

Pitch Summary:
Perrigo Company, plc is the leading in-store brand for consumer wellness and self-care products. The company endured several years of declining earnings due to what we believe was poor capital allocation by its previous management team, which chased growth through acquisitions outside of Perrigo’s core business. Our investment in Perrigo was inspired by a new management team that committed to pursuing realistic, steady growth rates within the core business, and the company delivering improved profitability and returns on capital. The stock underperformed during the quarter as earnings were guided to the low end of the previously given range due to sales and margin headwinds in their recovering infant formula business. While the fundamental difference in the guide down was small, investor patience has worn thin after years of delayed improvement. We continue to hold Perrigo in the portfolio. :contentReference[oaicite:6]{index=6}

BSD Analysis:
Perrigo is a turnaround in progress in the consumer self-care market, now led by a new management team committed to refocusing on its core, stable business. The historical decline in earnings stemmed from poor capital allocation that chased growth through ill-fitting acquisitions outside its core expertise. The current strategy is a disciplined pivot toward realistic, steady growth rates within the core self-care portfolio, emphasizing margin rebuild and higher returns on capital. Although the stock has suffered from investor patience wearing thin after earnings were guided to the low end due to headwinds in the recovering infant formula business, the underlying fundamental plan is on track. Trading at an undemanding valuation versus comparable consumer staples peers, improving ROIC (Return on Invested Capital) is the critical lever that should drive a multi-year re-rating.

Pitch Summary:
The Honest Company, Inc. is a consumer products company specializing in natural baby-care consumables, beauty, and other household supplies. We initially invested in Honest as a contrarian investment opportunity following post-pandemic supply chain disruptions, seeing value in the brand’s authenticity and in its history of growth despite operational challenges. Despite reporting quarterly results above expectations, the stock declined as the company took a cautious approach to guidance for the remainder of the year. We continue to hold our position as we expect that Honest’s strong management team and unique product offering will see growing consumer distribution and growth well into 2026 and beyond. :contentReference[oaicite:5]{index=5}

BSD Analysis:
The Honest Company represents a contrarian recovery arc in the consumer products sector, with the investment thesis built on the enduring value of its authenticity-focused brand equity. The stock's recent decline, despite beating quarterly earnings expectations, was driven by management taking a cautious approach to forward guidance, creating a low-risk entry point. The company is poised for a significant margin expansion driven by supply-chain normalization and an improving mix of higher-margin product sales. Strong management execution is expected to lead to continued shelf gains and distribution wins, which should re-accelerate revenue growth well into 2026 and beyond. With a conservative balance sheet that reduces downside risk, the stock is valued as if the recovery will never materialize, offering substantial upside as growth returns.

Pitch Summary:
Waystar is a leading cloud-based revenue cycle management platform that supports over 30,000 health care organizations, including 16 of the top 20 US hospitals. We initiated a position based on our view that Waystar is well positioned to benefit from the fallout of last year's cyberattack on its largest competitor, Change Healthcare. While provider switching takes time, early signs indicate this shift is underway. Additionally, we believe Waystar stands to gain from integrating AI capabilities into its software, delivering measurable ROI by automating denial management and prior authorizations, helping providers overcome staffing constraints and improve claims performance.

BSD Analysis:
Waystar is a high-growth Revenue Cycle Management (RCM) platform perfectly positioned to capitalize on a competitive disruption and the massive operational leverage from AI adoption. The core thesis is a direct play on the fallout from a major cyberattack on its largest competitor, Change Healthcare, which is driving provider switching toward Waystar's more resilient cloud-based platform. Waystar is aggressively integrating AI capabilities into its software to automate high-friction workflows like denial management and prior authorizations, delivering a measurable return on investment (ROI) to healthcare providers. With a large, sticky installed base that includes 16 of the top 20 US hospitals, its revenues are highly durable, and the competitive dislocation offers an opportunity for accelerated market share gains. This combination of workflow stickiness and AI-driven efficiency supports the bull case for expanding margins and long-term earnings growth.

Pitch Summary:
During the quarter, we initiated new positions in Teledyne Technologies and Waystar. Teledyne provides advanced sensing, transmission and analysis technologies across niche markets, including digital imaging, instrumentation, and aerospace and defense electronics. Its aerospace and defense segment is benefiting from rising global military spending, which is driving demand for high-performance sensors, drones and space systems. Flagship products like nano drones and proprietary sensor technologies position Teledyne well to meet evolving defense needs. The company’s industrial markets are also recovering, supported by trends in automation and testing. Teledyne has consistently generated strong free cash flow, and management has a proven track record of value creation through disciplined M&A. With accelerating defense demand and a rebound in industrial markets, we see potential for mid-teens EPS growth driven by both organic growth and strategic expansion.

BSD Analysis:
Teledyne remains a quiet powerhouse in sensors, imaging, and instrumentation, with a diversified portfolio that generates incredibly stable cash flow across industrial, defense, and scientific end-markets. The FLIR acquisition continues to outperform, unlocking synergies and giving TDY a dominant position in infrared and unmanned-systems imaging. Management’s disciplined M&A playbook—small, accretive, highly strategic deals—has built a portfolio with high switching costs and recurring revenue visibility. While organic growth is moderate, margins stay elite due to relentless cost control and leading positions in niche, critical technologies. The stock often gets overlooked due to its understated profile, but its consistency and return-on-capital track record rival the best in industrial tech. With a clean balance sheet and steady earnings momentum, Teledyne remains a high-quality compounder trading at a reasonable long-term entry point.

Pitch Summary:
Wingstop, a quick-service restaurant franchisor, reported quarterly results that exceeded expectations, but shares declined due to broader weakness across the restaurant industry. We remain confident in key growth initiatives, including expanded national advertising and the rollout of smart kitchen technology. Early results showed this smart kitchen technology has reduced customer service wait times by 40% within weeks of implementation, improving operational efficiency and enhancing the customer experience at minimal cost to franchisees. We are also optimistic about the planned 2026 launch of Wingstop’s loyalty program, designed to enhance customer engagement and encourage repeat business. We added to our position during the quarter.

BSD Analysis:
Wingstop continues to deliver one of the strongest unit-economics stories in restaurants, with digital mix, pricing power, and a capital-light franchise base driving outsized returns. Same-store sales growth remains impressive, and the brand’s marketing and menu discipline have created cult-like customer engagement without diluting margins. The pipeline for new units is robust, and international expansion is beginning to show real traction. Food cost volatility—especially wings—remains the primary swing factor, but Wingstop has managed through commodity cycles better than peers due to scale and menu simplicity. The stock commands a premium multiple, but the underlying algorithm—high-teens systemwide sales growth and expanding margins—still supports it. As franchisee economics strengthen further, WING remains one of the rare restaurant names with genuine multi-year compounding potential.

Pitch Summary:
PROCEPT BioRobotics develops robotic systems for treating benign prostatic hyperplasia and is rapidly expanding in a largely underpenetrated market, supported by strong clinical evidence, improving insurance coverage and superior outcomes. Shares fell despite reporting 55% year-over-year revenue growth and rising margins, due to the unexpected retirement of its CEO. We view the appointment of new CEO Larry Wood, a former Edwards Lifesciences executive, as a meaningful upgrade to lead the company’s next phase of growth.

BSD Analysis:
PROCEPT is one of the cleanest high-growth med-tech stories, with Aquablation rapidly scaling as the first truly differentiated BPH therapy in years. Procedure growth remains exceptional, driven by strong surgeon adoption, clear clinical superiority over legacy thermal and resection techniques, and expanding reimbursement. The razor-razorblade model gives PRCT a long runway of recurring revenue and attractive gross margins as utilization ramps. While the company is still in a heavy investment phase, operating leverage is beginning to emerge, and the payback period for new centers continues to shorten. Competitive risk remains low given Aquablation’s unique safety and efficacy profile. With a massive underpenetrated market and accelerating adoption curves, PROCEPT screens as a long-duration med-tech compounder that the market still undervalues.

Pitch Summary:
London Stock Exchange Group (LSEG) is a leading global provider of market infrastructure and capital markets services. We are attracted to its ability to further monetize its proprietary data, particularly through its early partnership with Microsoft. During the quarter, competitive pressures intensified in the Workstation segment, with rivals—especially FactSet—cutting prices aggressively. While we believe LSEG has responded well and strengthened its offering from a lower price point, these pressures have created short-term headwinds. Additionally, the emergence of advanced AI models, such as Anthropic’s Claude for Financial Services, has raised questions about potential disruption to financial information services. However, we view these large language models more as new distribution channels for LSEG’s proprietary data than as threats to its core business. Despite our continued confidence in the company’s long-term outlook over the next 24 months, these near-term challenges have led us to trim the position.

BSD Analysis:
LSEG is no longer just an exchange — it’s a data and analytics machine with a monopoly-adjacent grip on global finance. The Refinitiv integration was messy, loud, and borderline traumatic, but it created an information powerhouse that rivals Bloomberg in scale and outperforms it in distribution. Now the synergies are showing up exactly where they matter: margins are expanding, recurring revenue dominates, and the Terminal business is starting to look like a serious competitive threat. LSEG’s clearing and index franchises throw off stable cash, and the data business gives it a structural growth runway that most exchanges can only dream about. Yet the market still prices it like a slow, conservative European financial instead of a tech-enabled data infrastructure operator with global reach. As financial institutions continue to consolidate vendors and push for workflow integration, LSEG is positioning itself as the default operating layer. The rerating case here is hiding in plain sight.