Investment Pitches

Pitch Summary:
Amadeus provides mission-critical IT infrastructure to the global travel industry, with customers including airlines, hotels, governments, and travel agencies. Thanks to its size advantage, EdgePoint believes Amadeus can benefit from travelers directly booking flights and rooms, as well as airlines and hotels modernizing their IT systems.

BSD Analysis:
EdgePoint maintains a bullish view on Amadeus for its durable competitive position in travel IT and steady earnings growth. With strong network effects, a high switching cost business model, and secular tailwinds in digital travel systems, Amadeus trades attractively relative to its growth prospects. Margins above 35% and rising direct distribution revenues underpin sustained free cash flow generation.

Pitch Summary:
Micron contributed to positive results amid rising demand for semiconductors and AI-driven data infrastructure. The company benefited from improved pricing in DRAM and NAND memory, as well as strong order momentum tied to AI applications. The managers view Micron as a key beneficiary of the data economy’s structural growth.

BSD Analysis:
Micron is finally on the right side of a memory cycle — HBM demand is exploding, DRAM pricing is rising, and NAND is clearing inventories. The company’s HBM roadmap puts it firmly in the slipstream of AI infrastructure, giving Micron unprecedented margin leverage. Years of capex discipline are paying off as supply remains tight. The market still partially prices Micron as a commodity player, but AI has fundamentally upgraded its earnings profile. High torque, clear tailwinds.

Pitch Summary:
Alphabet contributed positively to fund performance following better-than-expected earnings and the resolution of a federal lawsuit. The company continues to benefit from resilient ad spending, strong YouTube engagement, and growing momentum in its cloud segment. The fund managers highlighted Alphabet’s diversified revenue base and operating efficiency as key strengths.

BSD Analysis:
Alphabet is executing cleaner and faster than the market gives it credit for — Gemini integration is boosting product quality across Search, ads, and Cloud. YouTube’s CTV domination continues to ramp, and Google Cloud’s profitability is now structurally real. Cost discipline remains tight, driving impressive operating leverage. Despite being central to the AI ecosystem, Alphabet still trades at a discount to its asset quality. This remains one of the strongest mega-cap risk-reward setups.

Pitch Summary:
Chipotle Mexican Grill detracted from the fund’s equity portfolio performance as the company reported weaker-than-expected sales growth. The fund’s managers noted that despite strong long-term fundamentals, near-term results were pressured by slower traffic and normalization of post-pandemic demand. Inflationary cost pressures also weighed on profitability. The managers remain cautious due to valuation concerns.

BSD Analysis:
Chipotle keeps delivering category-defining performance — traffic resilience, digital mix strength, and industry-leading margins. The restaurant-level economics are elite, and new units continue to hit exceptional returns. Pricing doesn’t hurt demand, and labor efficiency keeps improving. Despite a premium multiple, Chipotle earns every bit of it. For steady long-term compounding in consumer, CMG remains in a league of its own.

Pitch Summary:
Within our theme of electrification, Contemporary Amperex Technology, better known as CATL, was among our top contributors this quarter and is the global leader in electric vehicle (EV) batteries. The company, previously listed only as an A-share in China, recently listed on the Hong Kong exchange, raising approximately $5 billion in the world’s largest listing this year. In short, CATL has ranked first in global EV battery volumes for eight years through 2024, and it is also ranked first in global energy storage systems. In terms of its regional revenues, CATL ranks first in China and globally by market share. It has enjoyed a growing market share with the global top 10 EV automakers, including Tesla, VW, GM, BMW, Hyundai, Geely and Mercedes. Q2 results reported in the quarter showed a 33% YoY rise in net profits. Power battery shipments were up 35% YoY, beating expectations. Demand for energy storage systems has remained strong outside the US. These utility scale batteries, used to store electricity generated by solar and wind sources, help stabilize power supply to electricity grids.

BSD Analysis:
The thesis is scale leadership across EV and storage, reinforced by 33% YoY profit growth and 35% shipment growth. Listing in HK adds capital flexibility; share gains with top OEMs suggest sticky relationships and cost advantages. Key watch-items: LFP/LMFP mix, raw-material pass-throughs, and U.S. policy constraints; non-U.S. storage strength mitigates regional risk. If utilization stays high, CATL’s cash generation can self-fund expansion and sustain pricing.

Pitch Summary:
In our defense theme, Hanwha Aerospace was a strong contributor again in Q3. Revenues for Q2 rose 14% for the quarter and 169% YoY. Exports of its land-based systems have been growing faster than domestic sales, now comprising over 60% of all land-based systems, and margins were higher than expected. Additionally, Hanwha Ocean delivered strong results. The pipeline of activity remains robust with orders from Poland and India, and there has been increased spending and interest from Europe, Middle East and Asia-Pacific.

BSD Analysis:
Hanwha’s explosive YoY growth and export mix (>60% for land systems) point to durable scale and pricing power as NATO/ally budgets rise. Higher-than-expected margins validate manufacturing throughput improvements. Order visibility across Poland/India plus Europe/MENA/APAC should support multi-year revenue CAGR, with additional upside from naval (Hanwha Ocean). Watch capex needs and working capital as the book builds; any capital raise or program delays are risks, but fundamentals remain compelling.

Pitch Summary:
UBS, our largest financials holding, reported good earnings for Q2, boosting shares sharply higher. The firm’s restructuring plan is proving effective, keeping costs flat while growing revenues 8%. As a result, net profits reached $2.9 billion, beating consensus forecasts by 25%. Net quarterly inflows to the wealth management business of $23.3 billion boosted investable assets to $4.5 trillion. The key catalyst for its shares remains capital regulation by the Swiss authorities. We expect a compromise at some point over the next few months. Meanwhile, the company continued its share buyback program, purchasing $1 billion in H1, and providing a commitment of $2 billion in H2.

BSD Analysis:
UBS’s revenue growth with flat costs signals strong operating discipline post-integration, and $23B+ WM inflows reinforce franchise health. Capital return is tangible ($3B buybacks across 2025), with regulatory clarity the main overhang; a pragmatic compromise could unlock multiple expansion. Wealth-led, fee-rich earnings reduce NIM sensitivity versus traditional banks. Monitor CET1 targets and any RWA recalibration; upside stems from further cost saves and net new money momentum.

Pitch Summary:
In the health care sector, a combination of an underweight allocation and stock selection worked in our favor. UCB and Galderma were among our largest contributors this quarter. For UCB, there were several positive data points this quarter that helped reaffirm our conviction in this holding. Earnings for Q2 beat expectations, a reflection of strong demand for two of its key drugs: Bimzelx®, to treat chronic skin conditions, and Zilbrysq®, a treatment for myasthenia gravis. The management team raised its guidance for future revenue growth based on the recent success of these drugs. In addition, a competitor’s drug failed key tests according to phase 3 data, further underscoring UCB’s advantage. Consequently, we raised our peak sales target for Bimzelx®.

BSD Analysis:
Artisan highlights UCB’s accelerating topline from Bimzelx and Zilbrysq, reinforced by competitor failure—classic drivers of upward revisions. The setup suggests multi-year double-digit growth and operating leverage as dermatology and neuromuscular franchises scale. With multiple late-stage assets and new indications ahead, execution risk looks moderate relative to peers. Near-term catalysts include label expansions and additional readouts that could further raise peak sales assumptions. Valuation appears reasonable for a large-cap European pharma with pipeline momentum; watch pricing dynamics and competitive responses.

Pitch Summary:
MongoDB, a provider of database software, delivered strong earnings results with a positive outlook, driven by large U.S.-based enterprises choosing to build and expand applications on MongoDB’s modern, document-oriented database.

BSD Analysis:
MongoDB continues to expand its enterprise penetration as AI-driven application development accelerates. Atlas (cloud) now represents over 70% of revenue and drives >25% growth. The company’s differentiated architecture and multi-cloud strategy underpin durable margins and cash generation. Shares trade near 10x forward sales, reasonable for sustained 25–30% growth and expanding operating leverage.

Pitch Summary:
Insmed develops therapeutic products for patients with lung diseases. In the second quarter, the company received approval for its Brinsupri product to treat non-cystic fibrosis bronchiectasis, making it the first therapy available for a condition that affects up to 500,000 people. This milestone, combined with the positive readout of a trial for another company’s treatment for pulmonary fibrosis, drove the stock’s performance.

BSD Analysis:
Insmed’s first-in-class bronchiectasis approval marks a major commercial inflection point. With peak sales potential exceeding $2B, Insmed is transitioning from development-stage to commercial growth. The company maintains robust R&D productivity with multiple respiratory pipeline assets. Shares trade around 6x 2026E revenue, fair given near-term loss absorption but strong long-term optionality. Regulatory clarity and global rollout support upside.

Pitch Summary:
Alnylam is a leading company focused on developing gene-silencing technologies to address significant unmet medical needs. The launch of vutrisiran for transthyretin (TTR) amyloidosis exceeded expectations, with second-quarter sales coming in well above consensus expectations. The company also substantially raised its TTR sales guidance, which drove the stock higher.

BSD Analysis:
Alnylam remains a pioneer in RNAi therapy with multiple growth catalysts including vutrisiran and next-gen TTR treatments. Strong revenue growth and improving cash flow reduce financing risk. Shares trade near 8x 2026 sales, a discount to peers despite best-in-class efficacy. Upcoming readouts in cardiomyopathy indications could expand TAM significantly. Pipeline durability supports multi-year compounding.

Pitch Summary:
Wynn Resorts’ stock performed well during the quarter as gaming operations in Macau showed steady improvement each month. This marks the first sustained recovery in the Macau property in quite some time—a positive sign, as the region accounts for more than half of the company’s earnings. Moving forward, we expect continued improvement in Macau along with contributions from a new project in the United Arab Emirates to drive growth.

BSD Analysis:
Wynn Resorts is at the start of a multi-year earnings recovery driven by Macau’s normalization and geographic diversification. The UAE expansion adds high-margin incremental EBITDA potential. Shares trade at ~10x 2026E EBITDA, still below pre-COVID averages. Balance sheet leverage has improved, and cash flow visibility is rising as Asia gaming volumes stabilize. Early signs of mass-market recovery strengthen the investment case.

Pitch Summary:
Monolithic Power Systems, a semiconductor company specializing in power management, delivered solid earnings results driven by diversified end markets, while the company’s outlook for market share in artificial intelligence (AI) data center applications improved during the quarter.

BSD Analysis:
Monolithic Power Systems continues to benefit from secular semiconductor demand in AI data centers, automotive electrification, and industrial automation. The company maintains a capital-light model with gross margins around 58% and a fortress balance sheet. AI-driven server demand and next-gen chip power management will support sustained double-digit EPS growth. Valuation at ~35x forward earnings is justified by high quality and resilient growth across verticals.

Pitch Summary:
Spotify is monetizing its dominant market share through pricing, advertising, and new premium tiers. The forthcoming “super-premium” service and continued diversification into podcasts, audiobooks, and video expand its addressable market and profit potential.

BSD Analysis:
Spotify’s business model shift toward disciplined monetization is driving margin expansion and resetting long-term earnings power. Price increases are sticking, user engagement remains strong, and advertising continues to scale as a credible second engine. Podcasting is moving from cost sink to margin contributor as the company rationalizes content strategy. Free cash flow is inflecting meaningfully, reinforcing Spotify’s position as the dominant global audio platform. With ARPU rising and profitability improving, SPOT is graduating from “growth at any cost” to a durable compounder.

Pitch Summary:
Wingstop’s shares dipped despite beating quarterly expectations, as restaurant industry sentiment weakened. The company’s rollout of smart kitchen technology and a 2026 loyalty program are expected to improve operational efficiency and drive repeat business, enhancing the long-term growth outlook.

BSD Analysis:
Wingstop remains a rarity in restaurants — a franchised, asset-light system with exceptional unit economics and outsized same-store sales momentum. Digital mix and pricing power continue to expand margins for both franchisees and the corporate P&L. International expansion is gaining real traction, providing a second leg of long-term growth. While the multiple is rich, few restaurant concepts offer this level of visibility and compounding. With strong brand heat and disciplined execution, Wingstop remains one of the cleanest long-term growth stories in QSR.

Pitch Summary:
Lattice has emerged from a supply-driven slowdown as inventory destocking nears completion. The company’s positioning in AI data centers and robotics provides strong medium-term growth drivers. Management expects normalization by early 2026, setting up for renewed demand.

BSD Analysis:
Lattice continues to outperform within low-power FPGAs, with design-win momentum across industrial, automotive, and security applications offsetting broader semiconductor softness. Avant and Nexus families expand Lattice’s TAM into higher-performance workloads while preserving its power-efficiency advantage. Margins remain elite, supported by an asset-light model and pricing strength. The stock trades below its long-term growth profile due to temporary inventory digestion, not fundamental deterioration. With secular demand for edge compute and embedded intelligence intact, Lattice remains a high-ROIC small-cap semiconductor compounder.

Pitch Summary:
Insmed’s FDA approval for Brinsupri™, the first once-daily oral treatment for non-cystic fibrosis bronchiectasis, marks a major milestone. With a large patient base in the U.S., Europe, and Japan, the company addresses a substantial unmet need. Insmed’s pipeline includes additional de-risked assets with multibillion-dollar potential.

BSD Analysis:
Insmed is approaching a major inflection point, with brensocatib’s Phase 3 data setting the stage for a potential blockbuster in neutrophil-driven lung disease. The company’s pipeline beyond NCFB is underappreciated, offering significant optionality across rare pulmonary and inflammatory conditions. Operating discipline has improved, and the company maintains a solid cash runway into pivotal milestones. Investor skepticism lingers due to biotech volatility, but the risk-reward setup into commercial transition looks compelling. If approval plays out as expected, Insmed could scale rapidly into a high-margin rare-disease franchise.

Pitch Summary:
Argenx’s autoimmune therapy VYVGART® continues to deliver strong growth, driven by a subcutaneous formulation launch that allows self-administration. The company is expanding indications across multiple autoimmune disorders and is positioned for a durable, multibillion-dollar profit cycle based on repeatable innovation and global commercial execution.

BSD Analysis:
argenx remains one of the most compelling high-growth biotech names, with Vyvgart continuing to deliver strong uptake across generalized myasthenia gravis and expansion opportunities in multiple autoimmune indications. Clinical execution remains best-in-class, and early subcutaneous data position argenx for sustained global adoption. The balance sheet is strong, giving the company room to invest aggressively in label expansions and pipeline development. While valuation reflects high expectations, argenx’s clinical results and commercial ramp justify the premium. With a large autoimmune TAM and a differentiated mechanism, argenx remains a top-tier biotech compounder.

Pitch Summary:
Also contributing to performance in China/Hong Kong was Contemporary Amperex Technology Co. As the world’s largest electric vehicle (EV) battery and energy storage system (ESS) producer, Contemporary Amperex outperformed the benchmark in the third quarter, supported by resilient EV battery demand and stronger-than-expected ESS growth in China and abroad. Recent policy support on ESS from Beijing has lifted earnings expectations, whilst global AI infrastructure investment is expected to accelerate ESS deployments in the coming years, reinforcing CATL’s leadership and margin outlook.

BSD Analysis:
CATL’s scale, vertical integration and chemistry leadership (e.g., LMFP and early sodium-ion) support cost advantages and pricing power. With China’s ESS incentives and rising grid-storage demand tied to data-center buildouts, the non-auto mix should expand and smooth cyclicality. Margins can improve as raw-material costs stabilize and higher-value packs/long-cycle ESS projects ramp; valuation (low-20s forward P/E) is defensible given growth durability. Key watchpoints: OEM platform wins outside China, technology roadmaps versus BYD/Panasonic/LG, and lithium price volatility. Balance sheet strength and capacity additions remain catalysts for sustained revenue and EPS growth.

Pitch Summary:
Within the IT sector, Samsung Electronics was a top contributor. As a leading memory chip and consumer electronics conglomerate, Samsung outperformed the benchmark in the third quarter due to its narrowing technology gap in high bandwidth memory versus peers and stronger-than-expected demand for commodity dynamic random access memory and NAND flash memory. We expect Samsung Electronics to deliver significant margin expansion in the coming quarters, with share prices likely to trend higher as these tailwinds persist.

BSD Analysis:
Samsung is levered to the AI cycle via DRAM/HBM and benefits from an upturn in NAND, supporting a multi-quarter gross-margin recovery. Even after the rally, shares trade near low-double-digit forward P/E and roughly ~1–1.5x P/B, reasonable for a cycle leader entering an earnings inflection. Foundry mix and yield gains add upside optionality, while capex normalization should improve FCF. The dividend framework and occasional buybacks provide downside support. Watch HBM yields/roadmap execution and pricing discipline across DRAM/NAND as near-term swing factors. We see continued EPS revisions upward as utilization rises and pricing power returns.