Investment Pitches

Pitch Summary:
We also added Somnigroup International, now the world’s largest vertically integrated mattress maker following the merger of Mattress Firm and Tempur Sealy International. The company is profitably gaining share in a fragmented industry and should benefit from a cyclical recovery in housing demand, while continued operational improvements support long-term growth.

BSD Analysis:
Following the landmark merger of Tempur Sealy and Mattress Firm, the newly formed Somni Group International has become the undisputed global leader in the sleep products industry. The company operates a powerful vertically integrated model, combining world-class manufacturing and design with the largest specialized retail footprint in the world. This scale allows for significant synergies in distribution and marketing, enhancing operating margins even in a fluctuating consumer environment. Somni Group’s portfolio of iconic brands, including Tempur-Pedic and Sealy, continues to command premium pricing and high consumer loyalty across more than one hundred countries. Management is focused on disciplined capital allocation and returning value to shareholders while navigating the integration of its massive retail and wholesale operations. As consumers increasingly prioritize wellness and sleep quality, Omnigroup is perfectly positioned to capture a dominant share of the global sleep market.

Pitch Summary:
Revvity We invested in the former PerkinElmer in the wake of Covid. In many ways we are in a new golden age for medicine—the growth of biologics and peptides, new frontiers in personalized medicine, AI to identify actionable therapies, mRNA to deliver them—and Revvity, which makes the consumables used in both research facilities and customer- facing diagnostics, seemed like a good platform. Unfortunately, management spent its Covid testing windfall on overpriced acquisitions while divesting its cash-generative but less exciting food testing division, and then was left flat-footed when pharma research spending stalled and the FDA dramatically reduced science spending. Our overall return was -28.5%, or a -5.90% IRR, but the most painful loss was our opportunity cost.

BSD Analysis:
Revvity has successfully pivoted into a high-growth pure-play in the diagnostics and life sciences research markets. The company’s focus on high-margin automated workflows and specialized genomic testing is beginning to yield fruit, evidenced by a strong pipeline and positive earnings revisions. While academic research funding has shown some global softness, Revvity’s diagnostics segment remains a robust driver of recurring revenue and free cash flow. Management’s recent approval of a significant share buyback program signals confidence in the stock’s intrinsic value and its long-term growth trajectory. As healthcare systems increasingly move toward personalized medicine and early disease detection, Revvity is well-positioned to capture increasing demand for its innovative health science solutions.

Pitch Summary:
Contributors to Performance for 2025 Google had quite the year. At the stock’s nadir in April, it traded hands at a bit under $143. ChatGPT was going to replace Google, the Department of Justice was going to dismantle its search business, and Google was going to go the way of AltaVista. By the end of the year, the stock had more than doubled from that low point to $314, adding two trillion dollars of market capitalization. We didn’t have a crystal ball, but we knew that Google had so many attractive assets—the world’s best computing infrastructure, more search and internet data than anyone else, the largest video platform in YouTube, the most advanced self-driving platform, and much more—that it was likely worth more than the market was giving it credit for in April. We don’t expect the stock to double again in 2026, but we like where the company is headed.

BSD Analysis:
Alphabet is entering a new phase of growth driven by the successful integration of Gemini 3 into its core Search and YouTube ecosystems. While capital expenditures are scaling to support massive AI infrastructure, the company’s custom TPU and Axion chips are providing a critical cost advantage over peers relying solely on third-party hardware. Revenue from Google Cloud has reached a major inflection point, achieving high double-digit growth and contributing significantly to operating margins. The strategic partnership to lease computing capacity to other tech giants further validates Alphabet’s position as a foundational layer for the next decade of software development. Despite the increased spend, Alphabet maintains one of the most attractive valuations among the Magnificent Seven, trading at a reasonable multiple relative to its robust earnings growth.

Pitch Summary:
UnitedHealth Group was a meaningful contributor during the quarter. Shares recovered from prior weakness as investors gained confidence in the company’s ability to navigate medical cost trends and regulatory scrutiny. We continue to believe that UnitedHealth’s vertically integrated model, combining insurance operations with Optum’s care delivery and pharmacy benefit management capabilities, provides a structural cost advantage over peers. The company generates substantial free cash flow and has a long history of disciplined capital allocation through dividends and share repurchases. While near-term utilization trends can create earnings volatility, we believe the long-term demand for managed care and data-driven health services remains intact. Our position reflects confidence in management’s ability to compound earnings at an attractive rate over time.

BSD Analysis:
UnitedHealth Group remains a cornerstone of the managed care sector, leveraging its dual-engine model of insurance services and the Optum health services platform. Following a transitional year of higher medical utilization and regulatory shifts, the company is entering 2026 with a focus on margin restoration through disciplined premium repricing. Analyst consensus points to a significant recovery as the firm navigates Medicare Advantage headwinds and stabilizes its medical loss ratio. The massive scale of Optum provides a defensive moat, as its data-driven clinical services continue to capture a larger share of the value-based care market. With a consistent track record of double-digit dividend growth and aggressive share repurchases, UNH offers a compelling mix of defensive stability and long-term capital appreciation.

Pitch Summary:
Nippon Carbon is a specialty carbon materials manufacturer priced at roughly 1x Book Value and ~13x FY24 & FY25 earnings. The company offers a stable 4.2% dividend, appealing to Japanese investors who value yield. The growth potential lies in its Silicon Carbide (SiC) fiber division, which is part of a joint venture with GE Aerospace and Safran. This division is crucial for the shift from metal alloys to Ceramic Matrix Composites in jet engines, providing a significant growth opportunity. Despite the core carbon business not being particularly cheap, the dividend provides downside protection. The market undervalues the aerospace business, offering a free call option on non-linear aerospace growth.

BSD Analysis:
Nippon Carbon's SiC fiber division, through its NGS Advanced Fibers JV, holds a strong position in the aerospace industry due to its entrenched role in GE/Safran engine architecture. The SiC fibers enable higher thermal efficiency and durability in jet engines, a critical advantage as the industry shifts towards more advanced materials. The near-term catalyst is the GE9X engine, which will increase SiC usage significantly, although not to the volume of the LEAP engine. Long-term potential lies in the RISE engine, expected to use even more SiC material. The company's valuation is supported by its cash-rich core business and stable dividend policy, providing a safety net for investors.

Pitch Summary:
Carl Zeiss Meditec AG is currently trading at a significant discount, with a P/E ratio of 17x compared to its decade average of 43x. Despite recent management turbulence and margin compression, the company maintains a strong balance sheet and a robust order book. The strategic realignment aims for a 16–20% EBITA margin and mid-to-high single-digit organic growth, leveraging its world-class technology and structural market positioning. The foundation ownership ensures stability and long-term focus, free from short-term activist pressures. The current price reflects an oversold condition, presenting a compelling opportunity for long-term investors.

BSD Analysis:
The company's recent challenges, including management instability and margin compression, are significant but not insurmountable. The foundation's inalienable ownership structure provides a unique stability, allowing the company to focus on long-term goals rather than short-term market pressures. The strategic acquisition of DORC enhances its recurring revenue model, crucial for sustained growth. While China poses a risk due to geopolitical tensions and procurement challenges, the company's global demand remains strong, as evidenced by its growing order book. The market's current valuation appears to underestimate the company's potential for recovery and growth, making it an attractive investment for those with a long-term perspective.

Pitch Summary:
During the summer, the market began to value all information services companies as losers due to AI. Investors decided that Intercontinental Exchange was squarely in the losing camp, causing the shares to decline c.25% from peak. ICE is a business we have followed and admired for years. The company has a deep competitive moat with 80% of its exchange segment being an oligopoly in futures and derivatives across energy, agriculture and fixed income. We foresee major potential in these fields, and the fixed income division is notably exposed to structural growth in volumes as they migrate onto exchange and electronic trading. The valuation of ICE was 60% lower than Interactive Brokers following its rally. We gained less cyclical exposure at a materially lower price, for what we believe is still at least a 13-14% fundamental growth rate.

BSD Analysis:
Intercontinental Exchange is successfully evolving from a traditional exchange operator into a comprehensive data and technology provider for the global financial and mortgage markets. The 2026 outlook is bolstered by high single-digit growth in its Data and Network Technology segment, as the demand for high-quality, AI-ready data reaches record levels. The successful integration of Black Knight has transformed the company’s mortgage technology business, positioning ICE to significantly reduce loan origination costs through its unified digital ecosystem. Trading volumes across energy and interest rate derivatives remain robust, benefiting from ongoing macroeconomic volatility and the transition toward cleaner energy sources. With a strong IPO backlog expected to clear throughout the year and a focus on expanding its Treasury clearing capabilities, ICE is well-positioned for sustained double-digit earnings growth.

Pitch Summary:
JP Morgan continues to widen its moat versus the competition through unparalleled investment in technology. Investment-related technology spending for the year is expected to be $8bn, twice the equivalent number for its next largest competitor. JP Morgan’s 23% return on equity is driving 14% tangible book value per share growth, and a 2% dividend. Deposits for the US banking market have grown fairly consistently at an attractive 6% p.a. over the long term. We continue to believe that JP Morgan's share of those deposits will trend higher over time. While it has re-rated substantially over the past ten years, we think JP Morgan remains acceptably valued on 14x PE for its excellent long-term growth prospects and profitability.

BSD Analysis:
JPMorgan Chase continues to demonstrate the power of its "fortress balance sheet," entering 2026 with a market-leading position across consumer banking, asset management, and investment banking. The firm is a primary beneficiary of the higher-for-longer interest rate environment, which has bolstered net interest income while its diversified revenue streams provide a buffer against capital market volatility. CEO Jamie Dimon’s focus on technological innovation is currently manifesting in a massive investment in AI-driven risk management and personalized banking services, aimed at driving further operational leverage. While the bank faces increased regulatory capital requirements, its consistent ability to generate over 20 percent return on tangible common equity sets it apart from its global peers. With a dominant share of US deposits and a growing international footprint, JPMorgan remains the premier defensive and growth holding in the financial services sector.

Pitch Summary:
Alphabet was one of our best contributors this year, with total returns of 66%. We also wrote that Google would be best positioned in an AI world, given its vertically integrated model and its pedigree in AI. The likely attributes of winners in this space are data, processing power and distribution. Google dominates all three. Google’s dominant platforms in search, mail, maps, video and autonomous driving give it the best possible chance of successfully deploying AI across its network. We believe AI is likely to make search a better business and the powerful moat coming from having the world’s best distribution into advertisers is unlikely to be undermined. Today’s valuation of c.24x PE will make it harder to achieve the same level of future returns.

BSD Analysis:
Alphabet is currently executing a massive 185 billion dollar capital expenditure program for 2026, marking a decisive commitment to securing its leadership in the generative AI and cloud infrastructure eras. The company is successfully transitioning its core Search ecosystem into an AI-first platform, with the Gemini model now powering more sophisticated query responses and driving higher engagement across YouTube and Workspace. Google Cloud has reached a major milestone of consistent profitability and is seeing accelerated adoption as enterprises utilize Alphabet’s custom TPU and Axion chips to manage massive AI workloads. While this intensive investment phase is drawing significant scrutiny, the firm’s dominant advertising moat and a 70 billion dollar buyback program provide a strong financial foundation. As the "utility provider" for the AI economy, Alphabet’s vertical integration from hardware to consumer applications creates a powerful long-term competitive advantage.

Pitch Summary:
This is certainly the case for Ryanair, which produced a total return of 58% last year. Despite this, Ryanair has managed to build an exceptional business, earning returns on equity in excess of 20% despite owning its fleet of planes. Post-Covid supply chain shocks at Boeing and Airbus mean that the fleet is not going to be replaced any time soon. Today, the current revenue per passenger on a Ryanair flight is below the marginal cost of its cheapest competitors. This provides room for continued, rapid, profitable growth. Coupled with plane orders struck at incredible prices during the depths of the 2020 shutdown, the company is entering this next decade with the best balance sheet in its history, secure annual passenger growth of 5% p.a., lower capital expenditure requirements and stronger pricing power. It’s highly possible that fundamental growth at Ryanair will average 15-20% per year over the next decade. Despite doubling since we bought the shares in 2024, the valuation of c.12x PE is undemanding.

BSD Analysis:
Ryanair remains the most efficient operator in the European airline industry, recently raising its 2026 traffic outlook to over 208 million passengers as it benefits from a surge in low-fare travel demand. The company’s competitive advantage is being further widened by the faster-than-expected delivery of new, fuel-efficient Boeing aircraft, allowing for aggressive route expansion while competitors face capacity constraints. Despite a backdrop of rising airfares across the continent, Ryanair’s industry-leading cost structure and 91 percent load factor enable it to capture market share while maintaining superior margins. Management is also leveraging a multi-billion dollar engine service agreement to ensure long-term operational reliability and hedge against maintenance cost inflation. As the first European airline to target 200 million annual passengers, Ryanair’s scale and robust balance sheet position it as the dominant winner in a consolidating aviation market.

Pitch Summary:
Thirty years later, the company he founded, Royalty Pharma, generates over $2bn per year in cash flow, produced by royalties on a highly diversified collection of drugs, including 7 of the top 30 in the US. The company has a 40-50% market share of all pharma royalties and remains dominant today, despite attempts at competition from large private equity firms like Blackstone. The increased costs to bring a drug to market, and the absence of a credible alternative in equity and bond markets, mean that royalties become an increasingly attractive way of funding research. Barriers to entry are also high: relationships with pharma companies are built over decades, databases of successful trials and research require time to accumulate, and royalty holding periods are a lot longer than the lifespan of the average private equity fund. The company has shown great ability in diversifying its portfolio at solid double-digit returns and we were able to acquire the shares at a highly attractive entry point.

BSD Analysis:
Royalty Pharma offers a unique, low-volatility entry into the biotechnology sector by acting as a provider of capital to innovators in exchange for long-term royalty streams from approved blockbusters. For 2026, the company has guided for portfolio receipts to reach nearly 3.4 billion dollars, driven by core assets like cystic fibrosis treatments and the rapid expansion of its synthetic royalty portfolio. The firm has successfully internalized its management structure, a move expected to significantly reduce operating costs and improve alignment with shareholders starting this year. While the loss of exclusivity for legacy products like Promacta presents a headwind, the pipeline of upcoming catalysts—including pivotal study results for pancreatic cancer and cardiovascular therapies—offers substantial valuation upside. With a disciplined capital allocation strategy and a recently increased dividend, Royalty Pharma is a high-quality play on pharmaceutical innovation without the binary risk of traditional drug development.

Pitch Summary:
We started to see this opportunity in 2022, when we first invested in McKesson, a drug distribution company, and we now own its peer Cencora too. Both stocks produced returns of roughly 50% last year, driven by strong fundamental value growth of around 20% and some re-rating on top. The distribution model has proven its strong resilience, with companies having meaningfully reduced their dependence on drug pricing in the past decade. They are in effect a toll road on the US healthcare system and the opposite of economic rent-seeking businesses, creating huge value for the system while only earning a very small fraction of the industry profit pool. While growing profits, they have also invested heavily in both technology and infrastructure, embedding their market positions at the centre of the US healthcare system.

BSD Analysis:
McKesson is entering the 2026 fiscal year in a position of strength, recently raising its adjusted earnings guidance to reflect robust prescription volumes and expansion in high-margin specialty services. The company’s strategic shift toward becoming a diversified healthcare services leader is underscored by its growing footprint in oncology and biopharma services, which are delivering double-digit operating profit growth. Revenue for the current year is projected to exceed 400 billion dollars, supported by the integration of strategic acquisitions like Florida Cancer Specialists and a leadership position in the US Oncology Network. Management is also prioritizing the digitization of its platform, investing in AI-driven prescription technology to improve patient adherence and streamline distribution efficiency. With a strong track record of outperforming analyst expectations and a focus on high-growth therapeutic areas, McKesson remains a premier pick in the healthcare distribution sector.

Pitch Summary:
AutoZone had a poor year in terms of the stock price (+6%) but they are priming the pump for faster growth over the coming years. They have made a calculation that their competition is weakened following years of inflation and tariffs and so now is the time to expand their store base more rapidly. This investment eats into current earnings, although when we work it through the long-term model, it should be highly accretive. Time will tell, but the strategic judgment at this company has been very solid for the past twenty years and it’s our view that this remains the case.

BSD Analysis:
AutoZone continues to exemplify operational excellence in the automotive aftermarket, leveraging its best-in-class distribution network to maintain high parts availability and dominate the DIY segment. As the average age of vehicles on the road reaches record highs in 2026, the company is seeing a sustained tailwind for maintenance and repair demand.Management is strategically accelerating the expansion of its mega hub footprint to further penetrate the high-growth commercial professional market, which offers a significant long-term runway. The company’s relentless focus on return on invested capital is supported by a highly disciplined share repurchase program that has historically delivered consistent earnings per share growth. While inflationary pressures on wages and transportation remain a factor, AutoZone’s pricing power and recession-resistant business model provide a compelling defensive moat for investors.

Pitch Summary:
Dollar Tree is a discount retailer in the US. We start our discussions here because its performance over the past few years illustrates the dog walking analogy rather well, and it’s also a great example of our approach to trading within the strategy. If the length of the lead represents the swings in price around value, then Dollar Tree certainly won the award for the most extendable lead over the past five years. In 2020 the shares traded at around $90, peaked in 2022 at $170 and reached a low of $65 in 2025, before rebounding to $120 at the end of the year. In brief, Dollar Tree owned a poorly performing second brand of stores called Family Dollar. In March last year, they announced the sale of the business for $1bn, right at the upper end of our estimates. More important than the financials, however, was the company’s renewed focus on the core business, which has performed well throughout the past fifteen years. The underlying thesis remains the same as the past ten years. Lower-income Americans continue to feel the squeeze, and local stores like Dollar Tree present unbeatable value and convenience. Their investments in merchandising and distribution are key competitive advantages in a world of tariffs and potential inflation. We believe the company’s prospects are bright, especially if we do ever see a rise in unemployment, which tends to benefit discount stores.

BSD Analysis:
Dollar Tree is currently navigating a significant strategic pivot centered on its multi-price point evolution, moving beyond the traditional one-dollar constraint to drive higher average ticket values. The 2026 outlook is anchored by the aggressive rollout of the "More Choices" initiative, which introduces items priced at three and five dollars across thousands of locations to broaden the product assortment and capture middle-income consumers. While the integration of the Family Dollar segment remains a complex operational task, the company’s focus on supply chain automation and private-label expansion is expected to drive meaningful margin recovery. Analysts are closely watching the firm’s ability to offset persistent freight and labor headwinds through this enhanced pricing power and localized inventory management. Despite near-term volatility, Dollar Tree’s massive retail footprint and updated value proposition make it a resilient player in the defensive retail space.

Pitch Summary:
MercadoLibre, Inc. is the leading e-commerce marketplace across Latin America. Shares of MercadoLibre declined 13.8% in the quarter (although finished the year up 18.4%) on near-term concerns of margin pressure and longer-term concerns over competition. Competitive intensity in Brazil has increased during the second half of the year, as Amazon and Shopee ramped up promotional activity, prioritizing growth over margins. In parallel, MercadoLibre decided to expand free shipping thresholds, and increased marketing spend, driving fears of near-term margin compression. Investors also became increasingly worried that agentic AI could slow gross merchandise value growth and pressure take rates by reducing marketplace product discovery and high-margin advertising revenue growth. Continued volatility in Argentina, one of MercadoLibre’s higher-margin and fastest-growing markets, further prompted worries that slower economic growth would lead to slower growth in profits. While these factors drove near-term stock weakness, as nearly all of the underperformance in the quarter was driven by multiple contraction, we maintain conviction in MercadoLibre’s long-term opportunity as the company is positioned to capture a large share of Latin America’s underpenetrated e-commerce and fintech markets, with superior logistics capabilities, brand trust, and a powerful ecosystem that provides significant competitive advantages.

BSD Analysis:
MercadoLibre continues to dominate the Latin American landscape, with major financial institutions recently upgrading the stock to reflect a significant valuation upside. The company’s dual-engine model of e-commerce and its Mercado Pago fintech platform is driving a virtuous cycle of user engagement and credit expansion. Despite a projected moderation in total annual revenue, the firm’s non-GAAP earnings are expected to remain robust as it captures higher margins through its logistics and advertising segments. Institutional sentiment remains overwhelmingly bullish, supported by increased portfolio allocations from major global investment firms. As digital payments and credit penetration continue to rise across Brazil and Mexico, MercadoLibre’s established ecosystem makes it the premier way to play the structural growth of the Latin American middle class.

Pitch Summary:
Shares of Coupang, Inc., Korea's largest e-commerce platform, declined 26.7% in the fourth quarter (even though they finished 2025 up 7.4%). The weakness was initially driven by elevated upfront investments in its new market, Taiwan, where aggressive customer acquisition, supplier onboarding and product procurement, and logistics infrastructure buildout weighed on near-term profitability, as the company is expanding into a large new total addressable market underpinned by positive early data points. Investor sentiment was further pressured by a recent customer data breach incident, which raised short-term concerns around compliance costs, reputational risk, and potential regulatory scrutiny. A softer domestic consumption backdrop in Korea toward year-end also contributed to a more cautious market positioning. These dynamics drove a material multiple contraction, which was responsible for over 100% of the decline in the shares during the quarter. Despite these headwinds, our conviction in Coupang remains intact. We view the data security issue as operational rather than structural, with no evidence of lasting customer attrition or erosion in competitive positioning. Over the longer term, we believe that Coupang will continue to gain market share in its core business while leveraging its differentiated fulfillment infrastructure and technology to scale new services and expand into new markets. We remain invested.

BSD Analysis:
Coupang remains the undisputed leader of South Korean e-commerce, leveraging a vertically integrated logistics network that covers over seventy percent of the nation’s population within seven miles of a fulfillment center. The company is currently replicating its highly successful Korean "Rocket Delivery" model in Taiwan, which serves as its primary engine for international growth. Recent financial results show a nearly fifty percent increase in net income, driven by the expansion of high-margin services like advertising and its premium Wow membership. While the stock has faced near-term volatility due to regulatory scrutiny and legal filings, the underlying business fundamentals remain exceptionally strong with a low debt-to-equity ratio. The strategic acquisition of Farfetch is also beginning to provide a foothold in the luxury segment, diversifying Coupang’s revenue streams beyond its core retail operations.

Pitch Summary:
Meta Platforms, Inc., the world’s largest social network, detracted from performance as shares declined 10.0% in the fourth quarter, though still finished 2025 up 13.1%. While Meta reported strong quarterly results with 25% revenue growth (year-on-year in constant currency) and 40% operating margins (both above expectations) and provided solid forward revenue guidance, 2026 capital and operating expenditures guidance was above Street expectations, raising concerns that it may be overspending in AI for less certain returns relative to competitors. While hyperscalers have an existing cloud business, through which they rent out GPUs and can therefore generate a short-term return on their AI spend, Meta doesn’t have a cloud business and so its investment profile is longer-duration in nature. Still, we believe Meta continues to benefit from its AI investments across the core business, driving improvements in content recommendations (with rising time spent) and in ad targeting and ranking (leading to higher conversions and better return on ad spend). Our industry checks also validate strong advertiser adoption and satisfaction, including in newer areas such as easy-to-use AI creative tools and business messaging. We believe Meta will begin to realize returns from its AI investment or rationalize spending over time. Longer term, Meta’s leadership in mobile advertising, massive user base, innovative culture, leading generative AI research and distribution, and technological scale position it well for continued performance, with additional monetization opportunities ahead in areas such as smart glasses and commerce.

BSD Analysis:
Meta is successfully navigating a high-investment cycle by proving the tangible ROI of its AI-driven advertising tools, which have pushed conversion rates to record highs. The company’s 2026 strategy is defined by the broader rollout of its Llama models and a strategic partnership to lease massive compute capacity from Google Cloud to accelerate its research. Revenue from the Family of Apps remains robust, fueled by the monetization of short-form video and the integration of AI-powered business messaging. While capital expenditures remain elevated to build out sovereign AI infrastructure, Meta’s massive free cash flow allows it to simultaneously fund the Metaverse and aggressive shareholder returns. As the hardware ecosystem matures with smart glasses and AI wearables, Meta is uniquely positioned to own the next major interface of human-computer interaction.

Pitch Summary:
Another great example is Shopify, which was able to adapt multiple times over the years. Shopify started out with a mission of democratizing online commerce by targeting small domestic online merchants. Today it offers solutions for offline merchants, large merchants, business-to-business merchants, and merchants located everywhere in the world. Along the way, Shopify tried to become a logistics business with the Shopify fulfillment network, but decided to pivot when it saw that its time was better spent focusing on its “main quests”7, cutting over 20% of its workforce. Despite cutting its workforce, it accelerated its innovation velocity and remained obsessed with solving more and more problems for merchants by expanding the set of vertical solutions it offers. Today it includes solutions for taking payments across geographies, instant checkout, working capital loans, tax management, merchant-of-record solutions for cross-border commerce, offline commerce, Shopify Campaigns for end-consumer acquisition, solutions for agentic-commerce, an AI Sidekick to help merchants optimize how they manage their business, and so on, making them much more successful over time.

BSD Analysis:
Shopify is entering 2026 with a decisive shift toward agentic commerce, moving beyond traditional software tools to integrate AI agents that automate complex merchant and consumer workflows. The company recently delivered a thirty percent revenue beat, signaling that its core payments and subscription models remain highly resilient despite a competitive landscape. While the stock often trades at a premium valuation, management’s focus on automating the e-commerce supply chain is creating a deeper competitive moat that justifies a higher multiple. Strategic initiatives like share buybacks and increased investment in fulfillment infrastructure reflect a maturing business model that balances growth with disciplined capital allocation. As small businesses increasingly seek simplified, AI-driven architectures to launch, Shopify’s platform remains the foundational choice for the next generation of digital entrepreneurs.

Pitch Summary:
NVIDIA started out as a graphics-card supplier for gamers. Over time, the company has evolved into the leading AI infrastructure company in the world. It continues to evolve constantly, accelerating its innovation cycles to an annual cadence, moving to extreme co-design where it designs half a dozen chips simultaneously from networking to CPUs, GPUs, racks, and full AI data centers, while continuously challenging its pre-existing beliefs. At the same time, the company remains true to what we believe makes it unique – a focus on the ecosystem, investing for the long term, and focusing on solving hard problems that others cannot. NVIDIA’s Co-Founder and CEO, Jensen Huang, described it best in the company’s recent CES investor meeting 6: “We like to solve insanely hard problems we are uniquely positioned to solve… I like these things that take a long time, but when you finally get there, it's very likely you'll be quite alone… NVIDIA is powering just about every quantum computer in the world and everybody goes 'zero, zero, zero.' “Models change all the time… that's why NVIDIA is the right answer - because we're flexible… versatile… You have finite power... Have to utilize that finite power for the overall consumption of the data center. And the more flexible it is, the better it is… We are constantly trying to come up with a new way to do better… I'm trying to disrupt myself all the time."

BSD Analysis:
NVIDIA remains the undisputed leader of the AI revolution, reporting record third-quarter fiscal 2026 revenue of 57 billion dollars as demand for its Blackwell architecture goes off the charts. The company’s data center segment continues to grow at an exponential rate, with gross margins holding steady above 73 percent despite the massive scale of its operations. NVIDIA is successfully expanding its reach beyond chips into a full-stack AI platform, including software, networking, and compact supercomputers like the DGX Spark. Shareholder returns have been massive, with nearly 40 billion dollars returned in the first nine months of the year, backed by a robust cash position and a dominant market moat. As compute demand continues to accelerate across both training and inference, NVIDIA’s status as the foundational layer of the global AI economy remains unmatched.

Pitch Summary:
During the quarter, we also initiated a position in Monolithic Power Systems, Inc. (MPS), which designs semiconductor chips that control and deliver power inside electronic systems. Its products ensure that processors, memory, and sensors receive the precise power they need, safely and efficiently. MPS has built a leadership position in power management through deep system-level design expertise and highly integrated solutions. MPS is positioned to benefit from the redesign of data centers for AI and the transformation of vehicle electrical architectures. As AI drives rapid increases in power demand inside data centers, systems require more sophisticated and higher-value power solutions. In parallel, automobiles are shifting toward higher-voltage architectures and centralized computing systems, increasing advanced power content per vehicle. Considering MPS still represents only low single-digits percentage of the analog industry, we believe runway for growth remains long.

BSD Analysis:
Monolithic Power Systems continues to capture significant market share in the AI data center and automotive sectors through its highly integrated and efficient power solutions. Despite a period of profit compression following record-breaking prior years, the company recently announced a substantial 28 percent dividend increase, signaling high confidence in its underlying cash generation. Its first-quarter 2026 revenue guidance suggests a stabilization of demand as inventory corrections in the industrial and auto segments reach their conclusion. While short ordering cycles create some near-term volatility, MPS’s technological lead in high-performance power management remains a critical differentiator. As AI factories scale and vehicle electrification accelerates, the firm is well-positioned to meet its ambitious 2028 targets for revenue and earnings growth.