Investment Pitches

Pitch Summary:
1911 Gold owns the True North mine near Rice Lake in Manitoba, Canada. It was a past producing mine that failed when gold prices collapsed from $1,900 in 2011 to $1,050 in 2015. The company is fully permitted to re-start the mine and has a mineral resource of 1.1 million ounces that will grow with further exploration. Management expects to complete its Preliminary Economic Assessment in Q1 2026, followed by a Feasibility Study in Q4 2026, with first production targeted for Q1 2027. Estimated CAPEX is $45 million to refurbish the mill and dewater the mine. The company anticipates initial production of 45,000 ounces in year one, ramping to 180,000 ounces annually, with an ASIC around $1,400/oz. At current gold prices, this implies potential multi-bagger returns as production and cash flow scale.

BSD Analysis:
1911 Gold offers high leverage to rising gold prices with a permitted brownfield asset and low restart capex. If execution aligns with plan, the project’s NPV could re-rate materially upon feasibility results. Trading at a fraction of replacement value (~$160M market cap vs. $900M replacement), it’s an asymmetric small-cap developer play. Risks include financing and execution, but optionality remains significant amid gold’s bull cycle.

Pitch Summary:
Gold Fields was one of the largest positive contributors to the Distillate International FSV portfolio during 2025, adding +1.9% to relative performance. The letter attributes this to stronger operational results and rising gold prices. Distillate notes that the company remains attractively valued with a robust free cash flow yield and a strong balance sheet amid industry consolidation. Its stable cash flow generation and disciplined capital allocation align with Distillate’s quality-value framework.

BSD Analysis:
Gold Fields is emerging from a messy few years with cleaner operations, stronger cost control, and a production profile that finally has some stability behind it. The company’s focus on Tier 1 assets — especially in Australia and West Africa — gives it better-than-average mine-life visibility and margin resilience. Growth projects are progressing, and incremental ounces are arriving into a gold price environment that’s doing all the heavy lifting. Yet the stock still trades at a meaningful discount to global peers due to legacy execution fears that are increasingly outdated. With free cash flow inflecting and operational discipline improving, Gold Fields looks like one of the more compelling risk/reward names in the gold space.

Pitch Summary:
Gartner is grouped by Distillate among firms where valuations remain inexpensive relative to historical averages, despite continued free cash flow expansion. The letter compares Gartner’s current multiple to its 2010–2020 mean, emphasizing that it trades at roughly half its historical level even after double-digit compounding in cash flows. The firm argues that companies like Gartner—stable, cash-generative, and outside speculative AI hype—represent ideal long-term value within the U.S. Large Cap Value strategy.

BSD Analysis:
Gartner continues to compound through steady mid-teens top-line growth and 30%+ EBITDA margins. With resilient recurring research revenue and low capex needs, Gartner’s free cash flow yield exceeds 5%. The company is positioned as a defensive, quality growth play with significant operating leverage.

Pitch Summary:
Accenture is cited as one of Distillate’s largest new purchases in Q3 2025, reflecting its view that the company’s market cap has significantly lagged free cash flow growth. The firm positions Accenture as a high-quality compounder trading below intrinsic value amid broader market concentration in overvalued mega-cap tech. Its diversified exposure across digital transformation, AI integration, and IT services makes it a key beneficiary of enterprise technology modernization.

BSD Analysis:
Accenture trades near 22x forward earnings with consistent mid-teens EPS growth and leading cash conversion. Its diversified global client base provides stability, and margins remain resilient near 15%. AI advisory demand and cloud migration trends support sustained organic growth. The firm’s balance sheet and capital return profile reinforce a premium-quality thesis at an attractive relative valuation.

Pitch Summary:
Distillate identifies Adobe as another example of a technology firm whose free cash flow growth has far outpaced its market cap appreciation. The firm contrasts Adobe’s current multiple with its 2010–2020 average, emphasizing that the stock trades well below historical valuation levels despite robust free cash flow expansion and secular demand in digital content creation. Adobe is characterized as attractively priced relative to both its historical metrics and current market leaders inflated by AI hype.

BSD Analysis:
Adobe maintains strong fundamentals with FCF margins near 40% and a net cash balance sheet. Its subscription-based model drives steady double-digit revenue growth, while AI-integrated product enhancements (Firefly, Creative Cloud) provide incremental upside. Trading at ~23x forward earnings—below large-cap software peers—Adobe offers a compelling balance of quality and valuation.

Pitch Summary:
Within the U.S. Large Cap Value discussion, Distillate highlights that while mega-cap names like Microsoft, Apple, and Walmart have seen valuations soar, several technology firms—including Salesforce—remain attractively priced despite strong free cash flow growth. The firm notes that Salesforce’s market capitalization has lagged its underlying free cash flow expansion since 2022, creating a compelling valuation gap. This setup mirrors prior tech cycles where quality, cash-generative names outside market leaders offered superior long-term performance. Distillate includes Salesforce among its high-quality, undervalued holdings benefiting from durable demand and strong pricing power.

BSD Analysis:
Salesforce trades at a reasonable ~25x forward earnings with free cash flow margins above 30%, supported by secular demand for cloud-based enterprise applications. Revenue visibility and strong recurring income underpin the thesis. The company’s shift to efficiency and disciplined capital return strategy enhances shareholder value. Compared to AI high-flyers, its valuation looks restrained.

Pitch Summary:
Beam holds patents over base editing (CRISPR 2.0) enabling precise base conversions without double-strand breaks, expanding targets and potentially improving safety. The company is advancing in-vivo programs for GSD1a and AATD (a large U.S. patient pool with limited options) while also partnering on additional modalities. If base editing proves safe/effective and delivery is reproducible, the platform could enable rapidly programmable precision medicines across multiple indications and be materially undervalued today.

BSD Analysis:
Beam is one of the few gene-editing names with real scientific horsepower, and base editing gives it a shot at cleaner, safer edits than first-gen CRISPR players still wrestling with off-target baggage. The story has been stuck in “show me” mode, but early human data and smoother regulatory interactions suggest Beam may finally be past the hand-waving stage. Big Pharma partnerships aren’t charity — they’re a signal that Beam’s platform has legitimately differentiated IP and execution behind it. The cash runway is long, delivery tech is improving, and the pipeline has multiple shots on goal with real commercial potential. Bears still price Beam like a science experiment, but that disconnect widens every time the company hits a milestone. If even one program converts, BEAM goes from overlooked platform play to one of the most valuable precision-editing franchises in the space.

Pitch Summary:
Intellia is leading the way with two phase three CRISPR-Cas9 in-vivo clinical trials—one for ATTR-CM and another for hereditary angioedema—delivered via a single intravenous infusion without chemotherapy. The one-and-done approach is highly scalable, lowers adherence risk, and could command high margins even at modest market share. ATTR alone is a rapidly growing multi-billion-dollar market, and Intellia’s current market cap is around $2 billion, leaving significant upside if approvals materialize.

BSD Analysis:
Intellia’s in-vivo delivery and single-dose regimen create a differentiated profile versus chronic RNAi or antibody therapies. If phase 3 data are positive, pricing power and gross margins should be substantial, supporting a step-function in FCF. Risks center on clinical readouts and competitive responses, but risk-reward is attractive given small cap and large TAM.

Pitch Summary:
In December 2023, after nearly 6 years of human clinical trials, the FDA approved the first CRISPR-Cas9 gene editing therapy. This therapy is CRISPR Therapeutic’s treatment for sickle cell disease. CRSP’s therapy, called Casgevy, knocks out the BCL11A gene, the gene responsible for suppression of foetal haemoglobin (HbF). With the gene’s activity disrupted, the body begins producing HbF on its own again. HbF naturally prevents sickle cell complications, providing a functional cure. CRSP has partnered with Vertex Pharmaceuticals to aid in commercialisation and distribution, retains 40% of profits worldwide, and has a broad pipeline beyond SCD with five clinical programs and ten preclinical programs.

BSD Analysis:
CRSP has first-mover advantage with an FDA-approved one-and-done gene therapy and a sizable SCD addressable market. With ~$1.7B net cash and profit-share economics with Vertex, funding risk is contained as additional indications (oncology, autoimmune, regenerative) advance. Valuation hinges on uptake, manufacturing scale, and payer acceptance, but platform optionality argues for multi-year growth. Key watch items: commercialization ramp, expansion to non-SCD indications, and durability/safety data.

Pitch Summary:
CODI’s 5.25% senior notes due 2029 became attractive in early May 2025 following the discovery of accounting irregularities at its subsidiary, Lugano Diamonds. Despite market panic, CrossingBridge determined the issue was contained at the subsidiary level after reconstructing CODI’s balance sheet and cash flows excluding Lugano. The fund purchased the notes in the mid-80s, yielding ~10%, later increasing its position during a bondholder-led forbearance agreement. The company’s diversified cash flows, proactive management, and continued banking support underpin CrossingBridge’s confidence in CODI’s long-term creditworthiness.

BSD Analysis:
CODI’s diversified operating portfolio, strong cash generation, and forbearance-backed liquidity provide meaningful downside protection. Bondholder alignment and reduced management fees improve coverage, while potential asset sales could accelerate deleveraging. At current levels, the 2029 notes offer compelling yield with re-rating potential as forensic audits conclude.

Pitch Summary:
First Brands’ debt collapsed from the mid-90s to the mid-30s after the company defaulted and filed for Chapter 11 bankruptcy in late September 2025. The company had grown aggressively through 18 acquisitions funded by high leverage, reporting $5 billion in revenue and $1.1 billion in EBITDA in 2024. However, opaque reporting, inflated “adjusted EBITDA,” and reliance on factoring and reverse-factoring concealed liquidity stress. CrossingBridge exited its position in 2022 after identifying these red flags, including questionable accounting practices and unsustainable leverage. The fund highlighted this as a cautionary case study in credit risk management.

BSD Analysis:
First Brands’ collapse underscores the perils of over-levered rollups with aggressive accounting. Leverage approached 8.5x EBITDA, and reliance on reverse factoring masked structural insolvency. CLO and BDC lenders faced steep losses. CrossingBridge’s disciplined exit before the bankruptcy reflects prudent credit underwriting. The episode reinforces vigilance around EBITDA addbacks and covenant dilution in private credit.

Pitch Summary:
Intel gained momentum after U.S. government investment announcements to support domestic semiconductor production. Chilton expects these initiatives, combined with a rebound in PC and data center demand, to improve profitability through 2026.

BSD Analysis:
Intel is deep in its manufacturing comeback, with Foundry Services gaining real traction and process-node execution finally showing signs of stability. Granite Rapids and Sierra Forest position Intel to re-enter the data center conversation, though share gains will be gradual. The company’s foundry strategy — a full-stack U.S. and EU supply chain — is aligned with geopolitical priorities, unlocking subsidies and strategic partners. Margins remain pressured, but cost actions, asset rationalization, and better fab utilization offer a path to recovery. Sentiment is still anchored to Intel’s past missteps, keeping valuation depressed. If execution continues improving, Intel could transition from a perennial disappointment to a legitimate turnaround.

Pitch Summary:
NVIDIA remains a leading beneficiary of AI-driven capital expenditures globally. Chilton highlights its visionary leadership, strong demand for GPUs, and robust data center build-outs as driving forces for continued earnings expansion. Despite high valuation, structural tailwinds justify sustained growth.

BSD Analysis:
NVIDIA’s dominance across the AI compute stack continues to widen, with Blackwell representing another step-change in performance, efficiency, and system-level optimization. The company’s control over hardware, networking, and CUDA software creates a vertical platform effect that competitors struggle to match. Data center demand remains white-hot, and sovereign AI projects add a large new buyer class. Networking is becoming a major profit pillar as InfiniBand and Spectrum scale alongside compute. The business is transitioning from explosive growth to a more durable, multi-engine earnings model — still with enormous upside. In the AI infrastructure buildout, NVIDIA remains the indispensable vendor.

Pitch Summary:
Carvana (CVNA) is one of the fastest-growing online used car retailers. The company continues to outpace peers with revenue growth above 40% and targets 20–40% annual growth over the next five years. With expanded reconditioning capacity, we expect improving profitability and a widening competitive advantage as the business scales.

BSD Analysis:
Carvana’s turnaround remains one of the most dramatic in consumer internet, with the company achieving profitability through cost discipline, logistics efficiency, and refined inventory strategy. Unit economics have improved sharply, and SG&A leverage is finally visible after years of aggressive growth. While volumes remain sensitive to used-car affordability, Carvana’s operational moat — reconditioning scale, logistics backbone, and digital brand equity — is strengthening. Debt concerns have eased meaningfully as cash generation improves and maturities are better managed. The stock is volatile, but the business is now structurally stronger than the market assumed during the downturn. With improved margins and a more sustainable growth algorithm, Carvana stands out as a credible recovery-to-compounder story.

Pitch Summary:
We participated in NetSkope’s (NTSK) IPO. A technology leader in cloud network security, NetSkope’s novel architecture enables stronger protection and faster performance—critical as cyber threats escalate. With a large legacy replacement opportunity ahead, we see durable growth over the next three to five years. Its advanced data inspection capabilities also position it well as enterprises adopt generative AI technologies.

BSD Analysis:
NetSkope is one of the strongest private players in zero-trust networking and cloud security, with deep architecture advantages in SSE and real-time data protection. Its global private access network provides performance and reliability that many cloud-only security vendors can’t replicate. Enterprise adoption continues to broaden as companies consolidate toward integrated SASE platforms, giving NetSkope a long runway for expansion. The product set — cloud SWG, CASB, ZTNA, and DLP — positions the company squarely at the center of modern enterprise security. While still private, NetSkope’s scale, customer base, and unit economics suggest an eventual top-tier public SaaS profile. With security budgets shifting toward unified platforms, the company sits in a structurally advantaged position.

Pitch Summary:
Parsons (PSN) is a leading provider of technology and engineering solutions to the U.S. federal government (55% of revenue) and critical infrastructure markets. The company’s growth has outpaced peers in both segments, and we believe it is well-positioned to capture more business in priority areas such as the Federal Aviation Administration (FAA), missile defense, cybersecurity, and transportation. We expect mid-teens EBITDA growth driven by high single-digit percentage organic revenue gains, contributions from M&A, and modest annual margin expansion. A major FAA or Golden Dome contract win could provide meaningful upside to earnings in the coming years.

BSD Analysis:
Parsons is emerging as a high-confidence, high-visibility defense-tech and critical infrastructure contractor, with strong growth tied to cybersecurity, space systems, and intelligent transportation. The company’s solutions are sticky, mission-critical, and often tied to multi-year federal budgets, providing exceptional revenue visibility. Parsons’ shift toward higher-margin, software-enabled capabilities is improving profitability and differentiating it from traditional government services players. Backlog strength and consistent contract wins signal accelerating demand across both defense and civil markets. With a clean balance sheet, rising margins, and exposure to some of the fastest-growing federal spending priorities, Parsons remains a high-quality compounder trading below its long-term potential.

Pitch Summary:
Wheaton Precious Metals (WPM) is a top Avenue position, offering diversified exposure across gold and silver. The firm earns royalty and streaming income from multiple mines and benefits from a 27-year production life, plus an additional 37 years of inferred reserves. Silver represents 39% of revenue, supported by industrial demand from solar and AI data centers.

BSD Analysis:
Wheaton Precious Metals remains one of the highest-quality ways to gain diversified exposure to precious metals without taking on the operational risks of mining. Its royalty and streaming model provides direct leverage to rising gold and silver prices while avoiding the cost inflation, permitting delays, and geological surprises that traditional miners face. With a 27-year average mine-life profile and an additional 37 years of inferred reserves, Wheaton offers an unusually long-duration production base that supports predictable, compounding cash flows. Silver now accounts for roughly 39% of revenue, and the metal’s demand profile has strengthened meaningfully thanks to solar expansion and the rapid buildout of power-hungry AI data centers. Because Wheaton’s contracts often include fixed or low-escalation purchase prices, any upside in commodity prices flows almost entirely to the bottom line, creating powerful operating leverage. The company also maintains one of the cleanest balance sheets in the sector, giving it ample firepower for new streaming deals as miners look to finance growth projects. With structural demand for both gold and silver rising and Wheaton positioned on the low-risk, high-margin side of the industry, the setup remains highly attractive for long-term investors.

Pitch Summary:
Osisko Gold Royalties (OR) is a core Avenue holding. The firm owns royalties primarily in Canada, the U.S., and Australia—representing 80% of net asset value. Avenue highlights its strong jurisdictional exposure and steady cash flow from gold-linked royalty streams. The position was initiated in 2023 to capture gold’s long-term role as a hedge against rising sovereign debt and inflation.

BSD Analysis:
Osisko Gold Royalties offers a clean, low-risk way to participate in long-duration gold upside, anchored by one of the best jurisdictional profiles in the royalty sector. Roughly 80% of its net asset value comes from assets in Canada, the U.S., and Australia—three of the world’s most stable mining regions and a sharp contrast to the geopolitical volatility often embedded in traditional miners. Its royalty streams deliver steady, inflation-linked cash flow without exposure to operating cost blowouts, permitting setbacks, or capex overruns. Osisko’s portfolio is anchored by high-quality, long-life Canadian mines, giving it a predictable production base and strong optionality on exploration success surrounding its royalty land packages. The firm initiated a position in 2023 to capitalize on gold’s growing relevance as a hedge against rising sovereign debt, persistent fiscal deficits, and structurally higher inflation. As governments continue to lean on debt-financed spending, the macro backdrop supports sustained investor demand for gold-linked assets. With a disciplined balance sheet, recurring cash flow, and leverage to long-term gold prices, Osisko remains a compelling core holding in the royalty space.

Pitch Summary:
TSMC and other Asia-based semiconductor leaders were cited as major drivers of international market gains. The fund notes strong performance in Taiwan and South Korea equities, boosted by AI-related semiconductor demand and supply chain diversification.

BSD Analysis:
TSMC remains the irreplaceable backbone of advanced semiconductor manufacturing, with its lead in 3nm and advanced packaging widening at a time when global AI compute demand is exploding. The company’s capacity remains structurally tight, driven by hyperscaler orders, custom silicon programs, and accelerating HBM+logic integration. Margins continue to trend upward on richer node mix and advanced packaging ASP strength, reinforcing TSMC’s position as the profit center of the AI hardware stack. Geographic diversification is progressing without compromising cost structure or execution discipline. Despite being the most strategically important company in semis, valuation remains surprisingly reasonable given long-duration earnings visibility. With the next wave of AI workloads requiring even denser logic and more sophisticated packaging, TSMC remains one of the clearest multi-year compounders in global tech.

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.

BSD Analysis:
Meta has turned its “year of efficiency” into a permanent operating philosophy, and the result is a cash-printing ad machine with AI steroids injected directly into its veins. Reels monetization is ramping, ad targeting has fully bounced back from the iOS privacy shock, and Meta’s AI-driven ad ranking system is crushing competitors in performance marketing. Engagement across apps is stable-to-growing, and the company’s infrastructure investments in Llama and AI tools are positioning Meta as both a user-facing and developer-facing AI platform. Meanwhile, Reality Labs — long mocked — is quietly becoming the foundational bet on spatial computing, and Meta can fund that moonshot indefinitely thanks to obscene free cash flow. The market still discounts Meta because of metaverse trauma, but the core ad business has never been stronger. This is one of the rare megacaps with both growth and margin expansion still ahead.