Investment Pitches

Pitch Summary:
Looking beyond the AI theme, ATI was also a strong performer. It produces specialty nickel and titanium alloys used in aerospace engines and airframes. Strong demand, a growing base of installed engines and elevated maintenance activity are driving sustained pricing power and attractive earnings growth.

BSD Analysis:
The manager highlights ATI as a strong performer outside the AI theme, focusing on the company's specialty metals business serving aerospace markets. ATI produces critical nickel and titanium alloys essential for aerospace engines and airframes, providing exposure to commercial aviation recovery. Strong demand combined with a growing installed engine base creates sustainable revenue streams from both new production and maintenance activities. Elevated maintenance activity suggests airlines are extending aircraft lifecycles, driving demand for ATI's specialty materials. The manager emphasizes sustained pricing power, indicating ATI's materials are differentiated and difficult to substitute. Attractive earnings growth reflects the company's ability to capitalize on aerospace market recovery and maintenance cycles. The specialty nature of ATI's products provides competitive moats and supports premium pricing in aerospace applications.

Pitch Summary:
Seagate Technology, which supplies memory to data centres, performed well, driven by strong results and robust demand.

BSD Analysis:
The manager views Seagate Technology positively, citing strong financial results and robust demand for data center memory solutions. The company's focus on data storage positions it well to benefit from the massive data requirements of AI applications and cloud computing. Strong performance suggests the company is successfully capturing market share in the growing data center storage market. Robust demand indicates sustainable growth drivers as data generation and storage needs continue expanding exponentially. The manager's positive assessment reflects confidence in Seagate's competitive position in enterprise storage solutions. Data centers require massive storage capacity for AI training and inference, creating structural demand growth for Seagate's products. The company's technology capabilities in both traditional hard drives and solid-state storage provide diversified exposure to data center growth trends.

Pitch Summary:
Applied Materials, a semiconductor equipment and materials engineering company, benefited from an optimistic outlook for wafer-fabrication equipment due to demand from AI data centres.

BSD Analysis:
The manager highlights Applied Materials as a key beneficiary of AI-driven semiconductor demand, particularly for wafer fabrication equipment needed by data centers. The company's position as a leading semiconductor equipment supplier places it at the center of the AI infrastructure buildout. Strong demand from data centers for advanced chips is driving optimistic outlooks for wafer fabrication equipment, which represents Applied Materials' core business. The manager appears confident in the sustainability of this demand trend as AI applications require increasingly sophisticated semiconductors. Applied Materials' technology leadership in semiconductor manufacturing equipment provides competitive advantages and pricing power. The AI revolution is creating structural demand growth that should support strong order visibility and financial performance. The company's exposure to cutting-edge chip manufacturing positions it well for long-term growth in AI and high-performance computing markets.

Pitch Summary:
Bloom Energy also provides power solutions for data centres. Its solid oxide fuel cells offer power that is clean, efficient, always on and scalable. The company has announced major deals with data centre participants and operators, including Oracle Cloud Infrastructure, Brookfield Asset Management and American Electric Power.

BSD Analysis:
The manager views Bloom Energy favorably as another beneficiary of data center power demand, highlighting the company's solid oxide fuel cell technology advantages. The fuel cells provide clean, efficient, and scalable power solutions that are particularly attractive for data centers requiring reliable 24/7 operations. Major contract wins with Oracle Cloud Infrastructure, Brookfield Asset Management, and American Electric Power demonstrate strong commercial traction and validate the technology. These partnerships with leading data center operators and infrastructure companies suggest sustainable demand growth. The manager appears confident in Bloom Energy's competitive positioning in the growing data center power market. The company's focus on clean energy solutions aligns with ESG requirements of major technology companies. The scalable nature of the technology should support strong growth as AI infrastructure buildout accelerates.

Pitch Summary:
For GE Vernova, a manufacturer of power generation equipment, demand (particularly from data centres) continued to outstrip supply.

BSD Analysis:
The manager highlights GE Vernova as a beneficiary of the AI infrastructure boom, specifically noting strong demand from data centers that exceeds current supply capacity. This supply-demand imbalance suggests pricing power and strong order visibility for the power generation equipment manufacturer. The company's exposure to the data center buildout theme positions it well as hyperscalers continue massive capital investments in AI infrastructure. The manager's positive view reflects confidence in sustained demand growth outpacing supply additions. GE Vernova's specialized power generation equipment is critical for data center operations, creating a defensive moat around the business. The ongoing AI revolution appears to be driving structural demand that should support strong financial performance. However, the brief commentary suggests this may be a smaller position or tactical holding rather than a core conviction.

Pitch Summary:
A small position in Rocket Companies was a slight detractor from performance. The company consists of tech-driven real estate, mortgage and financial services businesses. The balance between risk and reward in the event that mortgage rates start moving in the right direction looks attractive. The conflict in the Middle East, however, has clearly introduced a lot of uncertainty, driving up mortgage rates. While we still think housing affordability is on the political agenda, we are carefully managing the position sizing.

BSD Analysis:
The manager maintains a cautious but potentially constructive view on Rocket Companies, acknowledging both opportunities and risks. They recognize the company's tech-driven approach to mortgage and real estate services as a competitive advantage. The investment thesis hinges on mortgage rates declining, which would benefit the company's lending business significantly. However, geopolitical tensions and rising rates have created headwinds that the manager is actively monitoring. The small position size reflects the manager's risk management approach given current uncertainties. Housing affordability remaining on the political agenda suggests potential policy support that could benefit mortgage companies. The manager's careful position sizing indicates they want exposure to the housing recovery theme while limiting downside risk.

Pitch Summary:
The recent performance of e-commerce company Wayfair, which sells furniture, homewares and decor online, was also impacted by worries about disruption from AI. We believe the balance between risk and reward here remains compelling over the medium term. Wayfair will benefit from any recovery in the housing market and is taking market share in the home furnishings industry.

BSD Analysis:
The manager remains constructive on Wayfair despite recent AI disruption concerns affecting the stock price. They view the current risk-reward profile as attractive, particularly given Wayfair's positioning to benefit from housing market recovery. The company's market share gains in home furnishings demonstrate competitive strength in the e-commerce furniture space. The manager appears confident that AI concerns are overblown relative to Wayfair's fundamental business drivers. Housing market recovery represents a key catalyst that could drive demand for furniture and home goods. The company's online platform and logistics capabilities provide advantages in capturing market share from traditional retailers. The manager's medium-term outlook suggests patience with the investment thesis despite near-term volatility.

Pitch Summary:
IQVIA provides clinical-research services and healthcare data to the life sciences industry. The shares were caught up in a sell-off driven by concerns AI would disrupt data-oriented businesses. However, we believe widespread disruption to the drug-development process is unlikely in the medium term and the company should benefit from a recovery in demand.

BSD Analysis:
The manager maintains a bullish stance on IQVIA despite recent AI-driven sell-off concerns. They view the market's fears about AI disruption to clinical research services as overblown, particularly regarding drug development processes. The manager believes IQVIA's specialized healthcare data and clinical research capabilities remain defensible against AI disruption in the medium term. They anticipate a recovery in demand for the company's services as the life sciences industry continues to require human expertise and regulatory compliance. The current weakness appears to present an attractive entry point given the manager's confidence in the business model's durability. IQVIA's established relationships with pharmaceutical companies and regulatory expertise provide competitive advantages that AI cannot easily replicate.

Pitch Summary:
Independent power producer Constellation Energy was impacted by potential regulatory changes in one region of the US wholesale power market. Proposals to cap wholesale electricity prices and reform auctions raised concerns about energy pricing and producers' profit margins.

BSD Analysis:
The manager expresses concern about Constellation Energy due to regulatory headwinds affecting wholesale power markets. Proposed price caps and auction reforms threaten the company's pricing power and profit margins in key regions. This regulatory uncertainty creates downside risk for independent power producers like Constellation. The manager appears cautious about the stock given these potential structural changes to the power market. While the company operates nuclear and other generation assets, regulatory interference could significantly impact profitability. The timing of these proposals coincides with broader market volatility, adding to investor uncertainty. The manager's negative view reflects concerns about the sustainability of current profit margins under new regulatory frameworks.

Pitch Summary:
A position from last year, Beng Kuang Marine Limited, has continued along its inflection path with an excellent move to purchase their partly owned subsidiary ASOM (Asian Offshore Services Management). They owned 49% of this subsidiary up until now, with it driving a core component of Beng Kuang's strategy to become more of an asset-light business. Previously, the company had primarily operated out of its two shipyards in Batam (Indonesia) and Kuantam (Malaysia). This was CapEx and OpEx heavy and required a lot of fixed assets to operate. The decision was made by management in 2021 to shift away from this business to focus more on consulting and on-site repairs to FPSO and other types of energy production vessels. This reduced the need for the full Batam shipyard and has allowed them to reduce fixed assets and increase margins for services provided to customers. To illustrate this, gross margins in 2022 stood at 21.2% and in 2025 reached 37%, with this trend likely to continue for several more years, particularly after the ASOM transaction completes. This is not done yet, but there will be an EGM in the near future which should see the deal get finalized. After this is complete, it is likely that 2026 results for Beng Kuang will be even stronger. In particular, note that in a recent press release the company stated that S$28 million of work at the ASOM subsidiary had already been secured this year, as compared to a total revenue of S$98 million last year, for the full year across the whole company. It's worth noting that much of this ASOM revenue is recurring in nature, being tied to long-term FPSO maintenance contracts involving inspection, maintenance and life extension. Their other businesses are also growing, and so it seems there are healthy tailwinds for the company over the next couple of years.

BSD Analysis:
The manager presents a strong bull thesis for Beng Kuang Marine based on a successful business model transformation from asset-heavy shipyard operations to asset-light consulting and FPSO maintenance services. The strategic shift initiated in 2021 has delivered impressive margin expansion, with gross margins improving from 21.2% in 2022 to 37% in 2025. The pending acquisition of the remaining 51% stake in ASOM subsidiary represents a key catalyst, with S$28 million in secured work already representing nearly 30% of last year's total company revenue. The recurring nature of FPSO maintenance contracts provides revenue visibility and stability. The company's pivot away from capital-intensive shipyard operations toward higher-margin services positions it well for continued margin expansion and cash generation. With the ASOM transaction completion expected to further strengthen 2026 results, the manager sees multiple tailwinds supporting the investment thesis.

Pitch Summary:
Aside from the outperformance of the oil and gas sector (we were holding Valeura Energy through last year and prior to the Middle East conflict), one of our best performers so far this year has been Cematrix Corporation. This is a new position for us built up in Q1 2026, in an exciting business that has a long-term inflection in its business strategy, pivoting more toward the manufacture of specialist cellular concrete products. The business has a great business model, that has strengthened from their purchase of a specialist low-density foam concrete, or cellular concrete manufacturer, with expertise in tunnel projects, as well as a wide variety of other infrastructure work such as bridge approach embankments, highway retaining walls, and slope stabilization. This business has a low correlation with some of the geopolitical events facing us this year, primarily dependent on the requirement for replacement or remediation of ageing infrastructure in many parts of the U.S. Annual revenue growth has been 25% since 2017 the company showed significant earnings growth last year, and even after the recent share price run up, our estimate of the valuation versus this year's EBITDA is less than 6× for Cematrix. Given the company's large order book we think that this growth will continue, the company itself has stated that they expect record results in Q2 2026.

BSD Analysis:
The manager presents a compelling bull case for Cematrix Corporation, highlighting a strategic business transformation toward specialized cellular concrete manufacturing. The company has achieved impressive 25% annual revenue growth since 2017 and demonstrated significant earnings growth in the prior year. The valuation appears attractive at less than 6x estimated 2026 EBITDA, particularly given the company's large order book and management's guidance for record Q2 2026 results. The business benefits from defensive characteristics with low correlation to geopolitical events, instead being driven by U.S. infrastructure replacement needs. The acquisition of a specialist low-density foam concrete manufacturer has strengthened their competitive position in tunnel projects and various infrastructure applications. The manager views this as an exciting inflection story with sustainable growth prospects driven by aging infrastructure demand.

Pitch Summary:
World leading specialist manufacturer of broadcast/photo equipment. 23 Brands incl. Manfrotto (Tripods), O'Connor (Fluidheads), Gitzo (photography accessories), Vinten (Camera mounts), Autocue. 1200 employees. 49% 'Independent Content Creators' (Vloggers!), 28% scripted Film & TV, 23% Broadcast (Sport/News). High 'moat' (Scale 5x No.2, IP). 42% sales US. '25 Sales £228m, GPM 38.3%, Ebitda £9m. New management targeting (a return to) £350m sales, 15% margins. Higher operational gearing post manufacturing site consolidation. Scope for GPM expansion (peak 45%) Former CEO did £250m of acquisitions (debt funded) to 42 unintegrated business units. Lost control of business & balance sheet and hit external market disruption (Covid/writers strike) resulting in need for full re-finance. Exec Chair Stephen Harris has restructured Board. Highly successful turnaround credentials at Bodycote. Main opportunities: pricing discipline, back-office synergies, SKU rationalisation, sourcing savings, footprint consolidation, reduced stock levels, improve NPI. Rockwood stake 6.0% Valuation post re-fi: '26 Mcap £156m+£3m debt = 5.9x '26 Ebitda (£27m), or 2.6x EV/Recovered Ebitda Targeting >£60m Ebitda /£35m PAT = £350m value (PE 10x, 6x Ebitda, 1x Sales) EV/Sales

BSD Analysis:
Videndum represents a compelling turnaround opportunity in the broadcast and content creation equipment market. The company is a world-leading specialist manufacturer with strong brand portfolio including Manfrotto, O'Connor, and Gitzo, serving the growing independent content creator market (49% of sales) alongside traditional broadcast and film customers. The business enjoys significant competitive advantages with scale 5x larger than its nearest competitor and substantial intellectual property moat. Previous management's debt-funded acquisition spree created operational complexity with 42 unintegrated business units, but new Executive Chairman Stephen Harris brings proven turnaround credentials from Bodycote. Management is targeting a return to £350m sales with 15% margins, compared to current £228m sales and minimal EBITDA. Key value creation opportunities include pricing discipline, back-office synergies, SKU rationalization, and manufacturing footprint consolidation. At current valuation of 5.9x 2026 estimated EBITDA, the stock appears attractively priced for a successful operational turnaround that could generate £60m+ EBITDA and justify a £350m valuation.

Pitch Summary:
PBT 2024 -138.0 PBT 2025 8.3 PBT est. 2026 58.7 PBT est. 2027 85.3 PE '27 5.0x EV/Ebitda '27 P/BV 0.5x Balance Sheet CET1 15.3% Market Capitalisation 303

BSD Analysis:
Vanquis Banking Group represents a classic turnaround story with compelling valuation metrics following a period of significant losses. The company has demonstrated a remarkable recovery trajectory, moving from a £138 million pre-tax loss in 2024 to £8.3 million profit in 2025, with management projecting substantial growth to £58.7 million in 2026 and £85.3 million in 2027. At current levels, the stock trades at just 5.0x 2027 estimated earnings and 0.5x book value, representing exceptional value for a recovering financial services business. The balance sheet appears robust with a CET1 ratio of 15.3%, well above regulatory minimums and providing significant capital buffer. This combination of operational recovery, strong capitalization, and deeply discounted valuation suggests substantial upside potential as the business normalizes. The specialist consumer finance model, while cyclical, can generate attractive returns when properly managed and capitalized.

Pitch Summary:
"Deployment of GaN E-band products represents a step change in performance" Projected to receive initial orders this FY from 4 new major space customers, driving revenue growth from next FY Defence revenues doubling this year, and expected to more than double next year Entered H2 with record order book, increased customer diversification, and deepening engagements across core markets 5-10x Forecasts growth in orbiting satellites by 2030 $4.5bn Identified SAM of demand for Filtronic over the next 5 years Filtronic is the only high-volume supplier of very high frequency solid state power amplifiers in the space market

BSD Analysis:
Filtronic represents a compelling growth story in the rapidly expanding space and defense markets. The company is uniquely positioned as the only high-volume supplier of very high frequency solid state power amplifiers in the space market, providing significant competitive moat. Management projects receiving initial orders from four new major space customers this fiscal year, which should drive meaningful revenue growth. Defense revenues are expected to double this year and more than double next year, demonstrating strong momentum across multiple end markets. The company entered the second half with a record order book and increased customer diversification, reducing concentration risk. With forecasts showing 5-10x growth in orbiting satellites by 2030 and a $4.5 billion identified serviceable addressable market over the next five years, Filtronic appears well-positioned to capitalize on secular growth trends in space infrastructure and defense spending.

Pitch Summary:
Knowles Corp. is a global manufacturer of specialty electronic components serving medical, defense and industrial markets. Recent strategic initiatives have reshaped the portfolio toward higher-margin, mission-critical end markets with more durable demand drivers. We believe the current valuation does not fully reflect the improved business mix and long-term growth potential, so we initiated a position during the quarter.

BSD Analysis:
The manager initiated a position in Knowles Corp based on successful portfolio transformation toward higher-margin, mission-critical end markets. The investment thesis emphasizes the company's strategic repositioning away from consumer electronics toward more durable medical, defense, and industrial markets with better demand characteristics. Recent strategic initiatives have improved the business mix and created more stable revenue streams in mission-critical applications. The manager sees a valuation disconnect where the market has not fully recognized the improved business quality and long-term growth potential from this transformation. This represents a classic repositioning story where management has successfully shifted toward higher-value, more defensible end markets. The focus on mission-critical applications provides better pricing power and customer stickiness. The manager views current valuation as attractive given the improved fundamentals and growth prospects.

Pitch Summary:
LSI Industries is a leading North American provider of commercial and industrial lighting and custom display solutions. Under CEO Jim Clark, who joined in November 2018, the company has shifted away from commoditized, off-the-shelf products toward higher-value, more differentiated solutions. We are attracted to the company's resilient business model, strong cash generation, growing mix of stickier service-driven revenue and disciplined management team, which has driven consistent organic growth, product innovation and strategic acquisitions.

BSD Analysis:
The manager initiated a position in LSI Industries based on the company's successful transformation under CEO Jim Clark since 2018. The investment thesis centers on the strategic shift from commoditized products toward higher-value, differentiated solutions, which has improved margins and competitive positioning. Key attractions include a resilient business model with strong cash generation and an increasing mix of service-driven revenue that provides better customer stickiness. The manager praises the disciplined management team's execution in driving organic growth, product innovation, and strategic acquisitions. This transformation story appeals to the manager's preference for companies that have successfully repositioned themselves in higher-value market segments. The lighting and display solutions market provides steady demand from commercial and industrial customers. This represents a quality industrial play with improving business mix and strong management execution.

Pitch Summary:
Shares of snack manufacturer Utz Brands declined after issuing Q1 guidance that was below expectations, although we believe this guidance is obscuring underlying operational progress. More broadly, the category remains pressured given the adoption of GLP-1 medications, disruption to SNAP benefits and increasing competition in the space, while higher oil prices are adding pressure through freight costs and weaker consumer sentiment.

BSD Analysis:
The manager acknowledges significant headwinds facing Utz Brands while suggesting that Q1 guidance may not fully reflect underlying operational improvements. The investment faces multiple structural challenges including GLP-1 medication adoption reducing snack consumption, SNAP benefit disruptions affecting low-income consumers, and intensifying competition in the snack category. Additionally, rising oil prices are creating dual pressure through higher freight costs and weaker consumer sentiment. Despite these challenges, the manager hints at operational progress that may not be fully captured in near-term guidance. This suggests a complex situation where fundamental improvements may be masked by category-wide pressures. The manager appears to be monitoring whether operational excellence can offset structural headwinds. This represents a challenging investment in a pressured category with multiple crosscurrents affecting performance.

Pitch Summary:
Proficient Auto Logistics is one of the largest auto transport companies in the US and has played a leading role in consolidating the industry, bringing together several non-union carriers nationwide. The company has broad geographic coverage and meaningful contracts with multiple auto manufacturers. Rising oil prices and macroeconomic uncertainty have recently pressured auto sales and weighed on performance, but we continue to believe the company is well-positioned to outperform over the long-term, supported by its cost advantage, strong balance sheet and high-quality management team.

BSD Analysis:
The manager views Proficient Auto Logistics as a consolidation leader in the fragmented auto transport industry with significant competitive advantages. The investment thesis centers on the company's scale as one of the largest players, broad geographic coverage, and meaningful contracts with multiple auto manufacturers. Despite near-term headwinds from rising oil prices and macroeconomic uncertainty affecting auto sales, the manager maintains a long-term bullish view. Key competitive advantages include cost advantages from scale, a strong balance sheet providing financial flexibility, and high-quality management execution. The company's role in industry consolidation positions it to benefit from market share gains and operational synergies. The manager appears to view current weakness as cyclical rather than structural, creating an attractive entry point. This represents a play on industry consolidation and operational leverage in the auto logistics sector.

Pitch Summary:
Red Rock Resorts' fundamentals remained solid, though the stock faced pressure in Q1 as investors linked gaming demand to discretionary spending trends. Concerns around rising fuel prices, particularly following geopolitical tensions, weighed on sentiment given the perceived impact on consumer budgets. However, the company's increasingly diversified customer base has historically shown resilience to these pressures.

BSD Analysis:
Despite near-term headwinds, the manager maintains confidence in Red Rock Resorts based on solid underlying fundamentals and historical resilience. The investment thesis emphasizes the company's increasingly diversified customer base, which has demonstrated ability to weather economic pressures in the past. While acknowledging current concerns about discretionary spending and fuel price impacts on consumer budgets, the manager views these as temporary sentiment-driven issues rather than fundamental problems. The company's Las Vegas market position and local customer base provide some insulation from broader economic volatility. The manager appears to view current weakness as a temporary disconnect between fundamentals and market sentiment. This represents a contrarian position based on the company's track record of resilience and diversified customer base. The manager likely sees current valuation as attractive given the solid operational performance.