Investment Pitches

Pitch Summary:
Ambac completed the sale of its legacy financial guarantee business to Oaktree and used proceeds to acquire ArmadaCare, accelerating its shift to a capital-light insurance distribution model. The company’s clean balance sheet and tax assets enhance growth flexibility. :contentReference[oaicite:11]{index=11}

BSD Analysis:
Ambac’s transformation to an MGA platform reduces risk and boosts profitability. Strategic acquisitions and NOL utilization provide multi-year compounding opportunity.

Pitch Summary:
The fund’s position in Oracle contributed as the company reported strong cloud growth, with performance obligations rising and new partnerships announced with Google and OpenAI. Oracle’s stock appreciated sharply during the quarter on cloud adoption momentum.

BSD Analysis:
Oracle’s accelerating OCI momentum and AI partnerships signal structural growth reacceleration. Expanding backlog and improving margins support the bull case, while relative valuation remains attractive against cloud peers.

Pitch Summary:
The fund’s position in Broadcom contributed as the company leveraged its leadership in custom data-center chips, ASICs, and XPUs. New partnerships with Alphabet, Meta, ByteDance, and OpenAI strengthened its AI semiconductor pipeline. Strong data-center chip demand continued to drive growth in the third quarter.

BSD Analysis:
Broadcom’s role as a key custom chip supplier to hyperscalers cements its long-term AI exposure. Consistent FCF generation, pricing power, and diversified product mix make it a high-quality compounder despite valuation stretch.

Pitch Summary:
The fund’s overweight position in Western Digital added value. The company benefits as a downstream AI beneficiary amid rising memory pricing. Western Digital raised disk drive prices for the first time in years, indicating strong demand. Its improved margins and strategic execution strengthen its competitive position.

BSD Analysis:
Western Digital’s recovery is supported by favorable supply discipline and memory price normalization. Improved profitability, asset-light transition, and AI-related storage demand provide catalysts for sustained revaluation.

Pitch Summary:
The fund continued to hold an off-benchmark position in Bloom Energy. The company manufactures solid-oxide fuel cells that produce electricity, offering an alternative energy source amid growing AI data center demand. Bloom's systems can integrate directly with natural gas lines on data center campuses, enabling rapid deployment. The company received favorable tax credits from the Trump administration’s “One Big Beautiful Bill,” supporting hydrogen fuel cell production and improving cost competitiveness versus traditional energy sources. Bloom also announced a partnership with Oracle to supply its OCI data-center business with rapid deployment solutions.

BSD Analysis:
Bloom’s positioning at the intersection of clean energy and AI infrastructure is compelling. The Oracle partnership validates its data-center use case, and hydrogen production incentives should drive cost parity. Improving scale, margin expansion, and strong policy tailwinds enhance medium-term upside.

Pitch Summary:
Brandes re-entered Prestige Consumer Healthcare after share weakness created a value opportunity. Prestige owns market-leading brands such as Monistat, Dramamine, and Clear Eyes, focusing on acquiring underperforming brands and revitalizing them through marketing and innovation. The firm benefits from stable, defensive demand, niche markets with minimal private-label competition, and disciplined capital allocation toward share buybacks and M&A.

BSD Analysis:
Prestige Consumer Healthcare fits neatly into the kind of overlooked, cash-rich niche business that often re-rates once sentiment turns. The company owns a collection of category-leading OTC brands—Monistat, Dramamine, Clear Eyes—that dominate narrow consumer health segments with surprisingly little private-label pressure. Its operating model is straightforward but effective: acquire underdeveloped brands at reasonable valuations, reinvest in marketing and product refreshes, and harvest the resulting cash flow. These categories tend to have stable, defensive demand and low cyclicality, which helps Prestige convert a high proportion of earnings into free cash flow. Management has historically been disciplined with capital allocation, leaning on share repurchases and bolt-on M&A rather than riskier large-scale deals. After the recent share-price pullback, the stock screens as inexpensive relative to its durable cash generation and brand equity. With steady demand, strong margins, and a repeatable playbook for revitalizing acquired assets, Prestige looks positioned for continued compounding as the market reassesses its value.

Pitch Summary:
Brandes initiated a position in Globant, an IT services company specializing in digital transformation, AI, and customer experience. Despite a 70% year-to-date share price decline amid enterprise spending slowdowns and AI uncertainty, the fund believes these risks are over-discounted. Globant maintains strong client relationships with firms like Disney, Google, and LinkedIn and has a healthy balance sheet. The firm is positioned to benefit as enterprise tech budgets normalize and AI integration scales across projects.

BSD Analysis:
Globant looks like a classic case of a high-quality growth company temporarily knocked off course by a macro slowdown rather than any deterioration in its underlying franchise. The 70% year-to-date share price decline reflects broad enterprise spending fatigue and market anxiety about how AI might reshape IT services, but those fears appear overly punitive relative to the company’s fundamentals. Globant still holds deep, long-standing relationships with blue-chip clients such as Disney, Google, and LinkedIn—relationships built on multi-year, mission-critical digital transformation work that doesn’t vanish just because budgets tighten for a few quarters. Its balance sheet remains clean, giving it flexibility to continue investing through the downturn while weaker competitors pull back. The company’s expertise in digital transformation, customer experience, and applied AI positions it well for the next cycle of enterprise modernization, particularly as organizations begin integrating AI into front-end and back-office workflows. As tech budgets normalize, Globant’s differentiated capabilities and strong delivery record should allow it to regain momentum and return to attractive growth rates. The current valuation implies a far more significant structural impairment than the evidence supports, making the risk/reward skew favorably asymmetric for long-term investors.

Pitch Summary:
GCI Liberty, spun off from Liberty Broadband, dominates Alaska’s telecom market. Trading at 10× EV/FCF and guided by John Malone (7% ownership), GCI benefits from unique tax advantages and monopoly-like economics in a high-barrier region. The “One Big Beautiful Bill” act further enhances tax shields, making GCI unlikely to pay cash taxes for a decade. With $900 million in buyout capacity and potential for serial acquisitions, the company could replicate Liberty Media’s value creation

BSD Analysis:
GCI Liberty operates with a near-monopoly position in Alaska’s telecommunications market, where extreme geography and high infrastructure costs create formidable barriers to entry. This structural advantage supports durable cash generation and gives the company pricing power uncommon in U.S. telecom. Its tax profile is unusually attractive: accelerated depreciation and the “One Big Beautiful Bill” provisions provide sizable tax shields, meaning GCI is unlikely to pay meaningful cash taxes for years. This directly enhances free-cash-flow conversion and materially depresses headline valuation multiples. At roughly 10× EV/FCF, the stock trades at a discount to its intrinsic value, particularly given the Malone ecosystem’s track record of exploiting tax efficiency, leverage, and opportunistic buybacks to compound capital. John Malone’s ownership and influence reinforce confidence in disciplined capital allocation, including the possibility of bolt-on acquisitions funded by GCI’s estimated ~$900 million in capacity. If management executes on this playbook, GCI Liberty could mirror the historical trajectory of other Liberty entities—leveraging advantaged economics, tax efficiency, and judicious balance-sheet management to generate outsized long-term shareholder returns.

Pitch Summary:
Seaport Entertainment, spun off from Howard Hughes, holds prime New York Seaport properties valued at $850 million and $160 million in net cash. Management’s sale of a non-income property for $150 million demonstrated underlying asset value. Despite operational improvements and asset monetization, the stock is down 10% YTD due to investor neglect. As cash flow breakeven approaches in 2026 and profitability beyond, Seaport’s deep asset backing and turnaround trajectory make it materially undervalued. :contentReference[oaicite:3]{index=3}

BSD Analysis:
Seaport Entertainment is a deeply discounted real estate turnaround trading far below its underlying asset value, making it a high-stakes bet on New York's post-COVID recovery. The core assets are irreplaceable property holdings in Lower Manhattan's South Street Seaport, a district that is structurally undervalued but showing early signs of revitalization. Despite being unprofitable (EV/EBITDA is negative), the recent sale of a non-core property for $150 million demonstrates the substantial liquidation value of the portfolio and provides a large cash buffer relative to its small market cap. Management's focus on integrating entertainment and dining venues (like the Tin Building, despite initial losses) is an expensive but necessary attempt to create a vibrant, foot-traffic-generating destination. With the current Price-to-Sales ratio near 2.2x (low versus peers) and the stock trading at a severe discount to what is arguably its fair asset value, asset monetization and achieving cash flow breakeven in 2026 are the key catalysts.

Pitch Summary:
Jet2’s stock declined 14% year-to-date despite operating above expectations. The company trades at 6.5× P/E, backed by a net cash position of £610 million (23% of market cap) and double-digit growth prospects. Management repurchased 20% of shares in the past 12 months, significantly enhancing per-share value. Investor concerns about UK macro weakness appear overstated. Jet2 remains well-positioned with industry-leading management, strong balance sheet, and high returns on capital. Continued buybacks at these valuations will rapidly compound intrinsic value per share.

BSD Analysis:
LSEG is a quintessential durable compounder in financial infrastructure, now substantially transformed into a diversified data and analytics powerhouse post-Refinitiv acquisition. The company's formidable moat rests on its recurring, subscription-based revenue (approx. 70% of group sales) and its quasi-monopolistic positions in FTSE Russell indices and LCH clearinghouse services. The stock's weakness this year has been an overreaction to perceived AI risk in its Data & Analytics division, creating a value dislocation. LSEG's strategic partnership with Microsoft validates its technological relevance, positioning it to monetize its proprietary data via next-generation AI-powered analytics and workflow solutions. With EBITDA margins approaching 47% and incremental margins near 70% post-integration, the company is built to convert high-margin growth into robust shareholder value. The combination of strong cash generation, disciplined buybacks, and exposure to the global digitization of bond and FX markets makes the stock's valuation a compelling play on high-quality, resilient growth.