Investment Pitches

Pitch Summary:
Advanced Micro Devices, Inc. (AMD) has become a key player in this ecosystem, signing a multi-year agreement recently to supply six gigawatts of GPU capacity to OpenAI, anchored by its upcoming MI450 chips. AMD’s integration of XDNA neural processing units across CPUs and GPUs positions it to serve both cloud and edge workloads.

BSD Analysis:
AMD is finally becoming a real force in AI compute, with MI300 demand scaling faster than skeptics expected and hyperscaler adoption broadening each quarter. EPYC continues taking server CPU share, giving AMD a dual-engine attack on Intel’s last remaining stronghold. Software has always been AMD’s Achilles’ heel, but ROCm progress is real and closing faster than the market acknowledges. Margins should expand as the mix tilts toward high-end accelerators. Nvidia still owns the ecosystem — but AMD is no longer playing for scraps. If execution holds, AMD becomes a structural winner in both CPUs and AI accelerators. High volatility, high upside, and finally real credibility.

Pitch Summary:
Meta is one of the key beneficiaries of AI-driven ad optimization and infrastructure investment. Data center expansion and ad system automation continue to support revenue and profit growth. :contentReference[oaicite:8]{index=8}

BSD Analysis:
Meta’s AI-driven advertising engine and robust monetization platform provide structural earnings power. Its expanding infrastructure footprint positions it to scale AI recommendation systems, increasing engagement and ad pricing efficiency. Cost discipline and operating leverage from the Reality Labs division further enhance profitability. Meta’s massive user base of over 3 billion ensures unparalleled data richness, reinforcing its algorithmic moat. As digital ad budgets grow globally, Meta’s balance between innovation and efficiency supports sustainable margin expansion and long-term value creation.

Pitch Summary:
Microsoft remains central to the AI infrastructure boom, benefiting from Azure’s growth and enterprise AI adoption. Advisors Capital emphasizes AI’s transformative role in productivity across sectors, driving multi-year demand for cloud computing and software solutions. :contentReference[oaicite:7]{index=7}

BSD Analysis:
Microsoft’s integration of AI into its productivity suite and cloud platform cements its role as the enterprise backbone of digital transformation. Azure’s accelerating adoption and the success of Copilot across Office 365 are driving new recurring revenue layers. Its gross margin profile and diversified revenue base—spanning cloud, productivity software, and gaming—enable consistent double-digit FCF growth. Microsoft’s capital allocation discipline and leadership in AI infrastructure make it one of the most defensible long-term compounders. AI integration expands monetization avenues across every business line, providing sustained visibility and durable growth.

Pitch Summary:
Financials such as Goldman Sachs trade at 10–12× forward earnings, well below market averages. The fund believes easing regulation, merger activity, and lower policy rates will drive earnings recovery and higher valuations for the sector. :contentReference[oaicite:6]{index=6}

BSD Analysis:
Goldman’s strong franchise in capital markets, trading, and asset management positions it for a cyclical earnings resurgence. The firm’s pivot toward asset and wealth management is stabilizing fee income while maintaining upside optionality in investment banking and trading when deal activity rebounds. Lower interest rates and a pickup in corporate issuance could drive double-digit EPS growth over the next cycle. With tangible book value compounding steadily and ROE poised to rise, Goldman offers asymmetric upside relative to valuation.

Pitch Summary:
JPMorgan’s CEO highlighted measurable productivity gains from in-house AI deployments, noting cost savings exceeding setup investments. The fund sees financial services as one of the earliest sectors to realize AI-driven operational efficiencies, especially in fraud detection, credit risk, and personalized client services. These gains enhance profitability amid a stable U.S. economy. :contentReference[oaicite:5]{index=5}

BSD Analysis:
JPMorgan’s scale and technology leadership position it to extract significant cost and risk advantages from AI adoption. Automation in credit analysis, fraud prevention, and client onboarding is enhancing efficiency and reducing operational risk. Its diversified business mix across retail, investment, and wealth management provides resilient earnings streams even in volatile environments. As the largest U.S. bank, JPM’s fortress balance sheet, robust capital ratios, and growing digital engagement support continued mid-teens ROE. The firm’s technology investments create a durable competitive moat, making it a steady compounder within financials.

Pitch Summary:
NVIDIA and other “Mag 7” names continue to anchor market valuations. Advisors Capital notes that while valuations are elevated, rapid earnings growth and dominant AI positioning justify premiums. NVIDIA’s ability to sustain growth through AI infrastructure and high-margin datacenter chips supports ongoing leadership in the market. The manager views concerns over overvaluation as overblown, citing robust fundamentals. :contentReference[oaicite:4]{index=4}

BSD Analysis:
NVIDIA’s dominance in GPU compute, software ecosystems, and datacenter integration creates one of the most powerful flywheels in technology. Its CUDA platform and deep partnerships across hyperscalers ensure long-term visibility and pricing leverage. The company is also expanding horizontally into networking, AI software, and custom silicon—broadening its TAM. While valuations remain rich, its sustained 30–40% revenue growth and 70%+ gross margins justify premium multiples. NVIDIA’s capital discipline and supply-chain advantages reinforce its structural leadership in the AI arms race, providing investors with a unique blend of growth, profitability, and cash flow durability.

Pitch Summary:
From an investment perspective, periods of disruption like this, in categories where structural growth tailwinds and economic moat drivers remain intact, can present attractive investment opportunities. Earlier this year, consumer health and tariff fears drove material underperformance of the apparel and sportswear sector, creating an attractive entry point for Adidas in the Magellan Global Opportunities strategy. While remaining conscious of broader industry risks – including consumer health, fashion cycles, geopolitics, social supply chain and environmental challenges – we believe Adidas represents a compelling long-term opportunity: a brand with deep heritage, durable competitive advantages, and the ability to continue turning global sports tailwinds into sustainable growth.

BSD Analysis:
Adidas is finally getting its swagger back after a messy few years, with new product cycles and cleaner inventories driving healthier sell-through. The brand is gaining cultural relevance again, especially in lifestyle, which has always been Adidas’ engine. Margins are recovering, but there’s still real work to be done. The valuation bakes in skepticism, not optimism, which makes execution leverage powerful. If momentum holds, this becomes a full-scale brand revival. Adidas isn’t fixed — but it’s no longer broken.

Pitch Summary:
CME Group is the world’s leading derivatives marketplace and serves as a core defensive holding within the Magellan Global Fund. CME operates a diversified exchange business across major asset classes – including interest rates, equities, foreign exchange, and commodities – providing a natural hedge during periods of market volatility. Derivative exchanges are among the highest-quality businesses due to their near-monopoly positions in key contracts and proprietary benchmarks, supported by liquidity-driven network effects and clearing advantages. CME delivered record results in 2024 and the first half of 2025, with operating margins reaching 68%, benefiting from heightened geopolitical tensions and macro uncertainty. Structural growth is driven by product innovation, retail participation, and international expansion, while attempts by competitors such as FMX have failed to gain traction. Magellan views CME’s dominant position and resilience through market cycles as a key long-term compounder.

BSD Analysis:
CME is a volatility-capturing machine with a dominant position in futures and options across rates, commodities, and FX. The business prints cash in calm markets — and even more in turbulent ones. Secular drivers like electronification, hedging demand, and global participation continue to support growth. With wide moats, strong margins, and a defensive profile, CME remains a core financial-infrastructure compounder.

Pitch Summary:
Kraken Robotics, a Canadian leader in subsea robotics and sonar technology, benefits from rising global defense budgets and investment in autonomous undersea systems. Its sonar and battery technologies are increasingly integrated into allied naval platforms amid geopolitical tensions. In September, the Australian government awarded US$1.1 billion to build the “Ghost Shark” autonomous undersea fleet—awarded to Kraken’s key customer Anduril—validating Kraken’s technology and accelerating adoption. Beyond defense, Kraken’s commercial presence in offshore energy and infrastructure inspection provides diversification. Management guides for 40–50% revenue CAGR with EBITDA margins of 20–25%. :contentReference[oaicite:1]{index=1}

BSD Analysis:
Kraken is well-positioned in the defense robotics ecosystem. Strong backlog growth, diversification into commercial applications, and scalable production support sustained margin expansion. Secular naval modernization trends underpin multi-year visibility.

Pitch Summary:
Vistry Group PLC (VTY.L) – Vistry, is our U.K. based home builder that is focused on lower income customers. The U.K. has a massive shortage of affordable housing, and Vistry is the largest provider of affordable housing in the U.K by a factor 5. Their Partnerships approach to building homes is capital light, and historically has proven resilient through cycles. Admittedly the thesis was knocked off track a year ago when the company disclosed that during the wind-down of their legacy, more capital intensive, Housebuilding business they discovered accounting irregularities. The stock has been in the penalty box since that time, and remains ~50% below where it was when the news was announced. This despite the fact that the issues were unrelated to Vistry’s core business, and have since been remediated. Additionally, the sunsetting of the U.K.’s prior funding program for affordable housing led to a decline in business.
However, the U.K. has since announced a new ten year, £39B funding program that dwarfs the previous program in both size and duration. Management recently announced they expect to grow EBIT in the high teens in H2’25, more than 20% in 2026, and that ‘the real step-up’ will come in 2027 as the recently announced funding flows through the market. This trajectory seems to match comments from the U.K. housing Secretary, who recently stated ‘We are doubling down on our plans to unleash one of the biggest eras of building in our country’s history and we are backing the builders all the way.’ Further, Vistry CEO Greg Fitzgerald seems to be a believer as he has purchased ~£1M of stock in the open market this year. Despite all this, Vistry shares still trade at ~4.5x 2026 EBIT, while transaction comps indicate a low double digit multiple would be more appropriate.

BSD Analysis:
Vistry is leaning hard into partnerships and mixed-tenure housing, shifting the business toward higher-visibility, lower-cyclicality revenue. The model produces steadier margins and faster asset turnover than traditional homebuilding. U.K. housing remains choppy, but government-driven affordable-housing demand is solid. The stock trades like a cyclical builder, but Vistry’s strategic pivot makes it structurally less risky than peers. Underappreciated transformation story.

Pitch Summary:
“Thryv Holdings Inc (THRY) – Thryv is our small and medium business software company. The bottoms up thesis is that a declining business (that is spitting off a ton of cash) has been masking the growth in the software business. From the top down, there are millions of small businesses in the U.S. and other geographies that are run on excel and sticky notes. As the baby boomer generation moves on, the next generation of business owners is investing in software that increases their revenue and decreases their costs. Thryv’s SAAS business is a rule of 40 company (Q2: 25% organic YoY organic revenue growth, 20% adj. EBITDA margin) with rising ARPU, net revenue retention of ~100%, that has been rapidly paying down debt. As a result, now for the first time the company has some flexibility on how it will allocate their capital going forward. Insiders appear excited about the future, as 4 of them have bought shares in the open market this year, and the company recently raised guidance.
However, the GAAP financials remain messy due to the declining Marketing Services business, which will have been completely exited by 2028, and the company still ‘screens’ as a ‘Media / Advertising’ business, despite the fact that the SAAS business has eclipsed the legacy business. Additionally, recent growth has been tied to upselling existing customers rather than growing total customer count, which causes some to question the growth model. This has been a deliberate decision made by management; the return on SG&A dollars is simply higher when they are focused on the upsell rather than new customers. To me, trying to maximize your return on spend is completely logical and management has indicated that in 2026 they will once again shift focus toward increasing customer count rather than upselling. But for now, it seems as if the market disagrees.
At present THRY stock trades at ~9x my estimate of FY’26 EBITDA from the SaaS business, giving no credit for the cash they expect to receive over the next few years from the runoff of their legacy business. This despite the fact that the company expects this cash to be more than half of the company’s current market cap. If we do a present value calculation of this cash, aggressively discounting it at 20%, at present THRY trades at ~1.1x my estimate of next year’s SAAS revenue and ~6.2x my estimate of next year’s SAAS EBITDA. I acknowledge there are some concerns around the health of the consumer these days, but the valuation here has entered the realm of absurdity… unless you think that small businesses will forever eschew the benefits of software in favor of the artistic appeal that comes from a wall full of colorful sticky notes.

BSD Analysis:
Thryv’s legacy print-directory business is dying — but the company’s SMB software platform is quietly becoming a real growth engine. ARR is rising, churn is improving, and the model has solid operating leverage once scale hits. The market still prices Thryv as a melting ice cube rather than a transitioning SaaS platform. Execution must be tight, but if the software side gains traction, the embedded value disconnect is significant.

Pitch Summary:
PAR Technology Corp (PAR) – PAR is the leading player in enterprise software for enterprise scale quick serve restaurants. In the quarter the company reported a record backlog, noted that customer win rates remain very high, noted that multi-product wins are accelerating, indicated that 2H’25 should be very strong, and indicated they are pursuing 3 mega-tier one deals, 2 of which they hope to hear on by YE’25, and one that is likely Q1’26.
In addition to these clear positives, the company also offered cautious guidance around FY’25 revenue due to a combination of customers delaying the rollout of already contracted business due to macro uncertainty, and an internal decision to delay some business in order to divert resources toward winning the previously mentioned business with mega-tier one customers. None of this business has been lost. It has only been pushed out a bit, but the net of these long-term positives and near-term negatives has been a stock that declined more than 40%.
In my view, if the thesis is that PAR has the best product suite in a world where restaurants are increasingly software-centric, an easily explained temporary delay in revenue should not lead to blood in the streets. It is not as if a new competitor with a better product has emerged. It is not as if restaurant owners have decided that software is no longer the future. The thesis is still on track, and I expect that in the coming months PAR will win at least one of the mega-deals they are currently pursuing, further validating the thesis.

BSD Analysis:
PAR is building a serious restaurant-tech stack with Brink POS, Punch loyalty, and now a payments engine giving the company true end-to-end workflow ownership. Enterprise adoption is accelerating as major chains consolidate disparate systems onto PAR’s unified architecture. Gross margins are expanding as software and payments scale. It’s still a story of execution risk, but the strategic position is strong. PAR is transforming from a lagging hardware vendor into a real SaaS + fintech compounder.

Pitch Summary:
NextNav Inc (NN) – NextNav is our wireless spectrum and alternative GPS investment. The thesis is that since the United States desperately needs a terrestrial backup to the GPS system, the Federal Communications Commission (FCC) will allow NextNav to repurpose its existing spectrum for 5G wireless communications that will also bring a terrestrial backup GPS system to the masses. When greenlit for 5G, NextNav’s spectrum should be worth multiples of where NN stock currently trades.
During the quarter there were several positive developments for NextNav. First, Brendan Carr, Chairman of the FCC, again made a speech highlighting that the U.S. needs a backup to the current GPS system. Second, NextNav filed papers with the FCC documenting certain ex parte meetings that had taken place between NextNav management and the very members of the FCC that would be responsible for drafting a Notice of Proposed Rulemaking (NPRM), which would be the next step in the process to greenlight the spectrum for 5G. This is important because the risk with the FCC is that NextNav’s proposal just winds up lost in a drawer somewhere. That is clearly not the case. Third, NextNav moved long-term CFO Chris Gates out of the CFO role and into a corporate development role. Gates is not just a numbers guy. He is listed on Nextnav’s patents and has deep knowledge of spectrum, which will be important when it comes to monetization. I believe the signal value of this move is high; why move the CFO into a business development role unless you thought you would imminently have approval from the FCC? Last, it was announced that AT&T (T) would be buying spectrum from EchoStar (DISH). The deal includes low-band (similar to NextNav’s spectrum) and mid-band spectrum so it is not possible to know how much was paid for the low-band spectrum with 100% accuracy, but my best guess is that the price was ~$2.50 per MHz/pop. This is not necessarily apples to apples with NextNav’s spectrum and there is still considerable uncertainty around what monetization of this spectrum will look like, but at $2.50 per MHz/pop that would imply a price for NN’s stock that approaches $60 per share.
In addition to these clear long-term positives, during the quarter there were some short-term negatives. Most notably, fears of a government shutdown – which of course have come to pass – weighed on the stock based on the (erroneous) assumption that closing the government would delay NextNav’s process with the FCC. Additionally, NextNav announced the successful closing of a previously announced transaction whereby the company purchased additional spectrum licenses. The seller of these licenses was paid in shares, and as the seller is the estate of deceased individuals, the thought is that this estate will be a forced seller of sorts.
The net of these clear longer-term positives and meaningless short-term negatives is that the stock declined approximately 20% from its intra-quarter highs to quarter end.

BSD Analysis:
NextNav is a pure-play on next-generation geolocation infrastructure, providing 3D positioning tech that fills the gaps GPS can’t reach. Regulatory tailwinds are forming, and early commercial deals validate the platform’s relevance in emergency services, public safety, and enterprise positioning. Revenue is still nascent, but the TAM is enormous if standardization accelerates. Highly speculative, but the asymmetric upside is real — few companies control such a strategic piece of future-location infrastructure.

Pitch Summary:
“Lifecore Biomedical Inc (LFCR) – Lifecore is our fill-finish CDMO. Essentially they put liquid medicines into vials or syringes. The thesis is that Lifecore has excess capacity to sell in an industry where demand far outstrips supply, and it takes years for new supply to come online. High fixed costs and low variable costs means that additional revenue will come with tremendous operating leverage.
In the quarter the company announced multiple new customer wins including a GLP-1 and a large international pharmaceutical company, and there were several signs that winning additional business should be getting easier. Notably, the Food and Drug Administration (FDA) announced that drugs that are manufactured domestically will receive priority review. Further, while the news here is fast-changing, Trump indicated that companies that manufacture their drugs abroad will face 100% tariffs unless they are in process of developing domestic capacity. Lastly, an industry rag published a piece noting that recently there has been a problem with CDMOs leading biotechs on and then backing out of any potential deal. The implications of this are not crystal clear, but I believe CDMOs have been bailing on biotechs (smaller customers) so that they can focus on the bigger and better opportunities that are surfacing due to regulatory pressures on international pharmaceutical companies to move production to the U.S. All of these developments seem to be very good for the thesis.
On the flip side, the company filed an S-3 that included a shelf that could be used to raise equity capital, and the market seems to have interpreted this to mean that dilution would be forthcoming. However, the company has made clear that this is just good corporate housekeeping, and they have no intention to raise capital. Rather, as they only became current on their filings a year ago, this was the first time they were S-3 eligible, and a survey of other companies of similar size reveals that having a shelf in place is standard practice.
The net of these clear long-term positives and meaningless short-term negatives is that the stock declined 22% from intra-quarter high to quarter end.

BSD Analysis:
Lifecore’s sterile manufacturing platform is genuinely differentiated — tight FDA compliance, high-margin formulations, and long-term CMO agreements. The problem has been balance-sheet stress and operational missteps, but those issues are finally stabilizing. Demand for injectable biologics is strong, and Lifecore is one of the few players with scaled aseptic capacity. If the company executes on its cleanup, LFCR’s rerating potential is significant. High-quality asset, underwhelming history — classic deep-value bio-manufacturing story.

Pitch Summary:
Clarus Corp (CLAR) – Clarus, owner of Black Diamond climbing gear and Rhino Rack roof racks, was introduced in our H1’25 letter. The thesis is simple. These are strong brands that are valued by the market well below where private transactions for similar assets take place, and the Chairman and largest shareholder of Clarus is properly incentivized to realize full value, most likely through a sale of the business.
In Q3 multiple insiders bought stock on the open market, and when Clarus reported their Q2 earnings in July, they stated, ‘we have initiated an internal review to ensure we are evaluating all possible opportunities to create value for shareholders’ and further indicated they are ‘committed to seeking to maximize long-term value.’ Typically this sort of language is just a hair shy of hanging a ‘for sale’ sign on the business.
In my view, if the thesis is that the stock trades well below private market value, and insiders are incentivized to realize full value, and then those insiders increase their own exposure and indicate that they have initiated an internal review to realize value, then the thesis is very clearly on track. Nevertheless, Clarus declined ~21% from a few days before earnings to after earnings as they ‘missed’ expectations for quarterly earnings. I suppose the miss is unfortunate, but when the real prize is realizing a private market value that should be multiples higher than the stock market would have you believe, it is completely inconsequential.

BSD Analysis:
Clarus is still digging out of its outdoor-recreation slump, but its portfolio — Black Diamond, Rhino-Rack, Sierra — retains brand equity and category relevance. Restructuring is underway, inventory is cleaner, and margins are improving from brutal lows. Activist involvement adds potential catalysts. The market has already priced in disaster, leaving meaningful upside if execution even partially normalizes. High-volatility turnaround with real brand-based optionality.

Pitch Summary:
MercadoLibre, another detractor, is a leading online retailer and financial technology company in Latin America. The company has recently faced increased competition from other online retailers such as Amazon and Shopee. Investors worried about the impact of the increased competition on MercadoLibre’s margins and profitability, and the stock declined. We continue to believe MercadoLibre is the dominant operator in a Latin American region where e-commerce and financial technology are underpenetrated. We maintained our position.

BSD Analysis:
MercadoLibre continues to show why it’s the king of Latin American e-commerce and fintech — both arms of the business are scaling with exceptional efficiency. MercadoPago is now a payments powerhouse, driving margins and deepening ecosystem lock-in. Logistics investments are paying off with faster delivery and higher conversion. Despite its dominance, MELI trades below its long-term fundamental quality. This remains one of EM’s premier secular compounders.

Pitch Summary:
Oracle was a positive contributor. The technology company has emerged as a leading player in the AI market, supported by its strong competitive position and close relationships with leading AI and hyperscaler partners. Oracle reported strong second-quarter results and exceptional forward guidance, especially for its Oracle Cloud Infrastructure business. The company has signed several multibillion-dollar contracts that have led to a large increase in remaining performance obligations, which represent expected future revenues from existing customer relationships. This news gave us added confidence in Oracle’s market opportunity and earnings visibility.”

BSD Analysis:
Oracle has pulled off a surprising pivot: OCI is becoming a real AI infrastructure contender thanks to bandwidth-heavy architecture and aggressive GPU deployment. Database modernization is driving sticky, recurring revenue, and Cerner is finally stabilizing. The market still treats Oracle like a slow-growth legacy vendor, but cloud growth and margin expansion tell a different story. With strong FCF and expanding AI partnerships, Oracle remains a stealth AI infrastructure winner.

Pitch Summary:
Bull

BSD Analysis:
Sandstorm Gold operates 40 producing, 29 development, and 161 exploration assets, with 80–85% of its portfolio in gold. Over the last decade, shareholders have achieved 350% returns. Its 2025 merger with Royal Gold (0.0625 share exchange at a 21% premium) creates a stronger combined entity with increased diversification and cash flow. The deal was immediately accretive to NAV and earnings, with management highlighting enhanced capacity to pursue larger streaming deals. :contentReference[oaicite:5]{index=5}

Pitch Summary:
Royal Gold is the world’s third-largest precious metals royalty company, holding 40 producing, 19 development, and 112 exploration assets. Roughly 76% of 2024 revenue came from gold, and 60% of total revenue from Tier 1 jurisdictions (Canada, U.S., Australia). With revenue and free cash flow compounding at 11% annually and dividends up 15% since 2000, Royal Gold has delivered over 290% shareholder returns in a decade. In July 2025, it announced the acquisition of Sandstorm Gold for a 21% premium, creating a combined portfolio of 393 assets with 87% revenue from precious metals. :contentReference[oaicite:4]{index=4}

BSD Analysis:
Royal Gold’s merger with Sandstorm creates a dominant global royalty platform with superior cash flow diversification. Strong Tier 1 exposure, disciplined capital allocation, and scalability underpin long-term compounding.

Pitch Summary:
Avino Silver & Gold was a very large position in our fund. In 2025, Avino benefited from three key drivers: rising silver prices, expanding production, and multiple expansion. The company mined 2.6 million silver equivalent ounces in 2024 and projects 2.8 million in 2025, expecting growth to 3.8 million in 2026 with a new mine coming online. With all-in sustaining costs around $20/oz and silver prices above $50/oz, margins have more than tripled. The stock has risen from $0.88 to $5.34 year-to-date (a 607% gain) and was added to the GDXJ index, increasing liquidity and institutional ownership. Management plans to grow output to 6–8 million ounces by 2028, offering significant upside if silver remains strong.

BSD Analysis:
Avino exemplifies junior miner torque, with production growth and margin expansion compounding returns. Entry into GDXJ boosts visibility and valuation. At ~$765M market cap and sub-8x forward cash flow, it retains upside if silver sustains >$50/oz. Execution on production ramp and cost discipline are key. Leverage to metal prices makes it a high-beta proxy for silver’s cycle.