Investment Pitches

Pitch Summary:
Catapult has been one of Forager’s most successful investments. First purchased in June 2021 at A$1.90 per share and later increased around A$0.70–0.80, the position has appreciated over 800%, now exceeding A$7. Forager emphasized disciplined process execution: small initial weighting, adding on validation, and trimming as the thesis played out. Catapult’s inclusion in the ASX200 and rising institutional ownership validated the company’s transformation from a niche player to a mainstream tech success.

BSD Analysis:
Forager’s disciplined lifecycle management of Catapult illustrates its value process in action. While valuation now reflects its bright future, execution and recurring revenue growth continue to impress. Shares trade near 40x forward earnings, fair for a high-margin, data-driven sports technology leader.

Pitch Summary:
Inchcape was a new addition during the quarter, offering exposure to high-return car distribution in niche global markets. The company’s capital-light model and strong local moats create durable profitability. Despite cyclical exposure, sentiment toward UK-listed equities has left the stock undervalued. Inchcape has repurchased nearly 10% of its shares over the past year, signaling management confidence. Forager sees the buybacks as an efficient use of capital amid market pessimism.

BSD Analysis:
Inchcape’s diversified global footprint and disciplined capital allocation support sustainable cash flow growth. Trading at ~9x forward earnings, valuation remains attractive. Continued buybacks and potential re-rating of UK equities offer additional upside.

Pitch Summary:
Visional, through its BizReach platform, has become Japan’s leading mid-career professional recruitment network, serving over two million high-income users. Growth has been steady and margins robust as employers increasingly pay for access to qualified candidates amid acute labor shortages. The platform’s network effects and disciplined reinvestment underpin durable profitability. Forager highlights it as one of several Japanese software holdings benefiting from digitization and reform tailwinds.

BSD Analysis:
Visional continues to dominate Japan’s high-end recruitment market through BizReach — a platform with network effects, strong pricing power, and a client base that treats it as a must-have hiring channel. Demand remains resilient even in a softer macro, supported by labor scarcity and structural shifts toward digital recruiting. Margins are robust, cash conversion is excellent, and the company’s disciplined expansion into adjacent HR tech solutions adds incremental growth without diluting returns. Despite its scale advantages and winner-take-most dynamics, Visional trades below what you’d expect for a platform with this level of defensibility. With secular tailwinds intact and a fortress balance sheet, Visional remains one of Japan’s strongest long-duration digital marketplace names.

Pitch Summary:
Fiserv was the fund’s biggest detractor for the quarter, with shares falling 45% from their February highs due to concerns about slower Clover growth and a leadership change. Despite short-term pressure, Forager added modestly, citing strong fundamentals and undervaluation. The company continues to grow earnings >10% annually, expand margins, and repurchase shares. Trading at under 12x forward earnings, it remains a high-quality compounder with improving international opportunities.

BSD Analysis:
Fiserv keeps proving it’s one of the most quietly dominant platforms in fintech, with a blend of acquiring, core banking, and digital payments that produces sticky, high-recurring revenue. Clover remains the growth engine — scaling merchants, expanding software attach, and delivering better unit economics than almost anything else in SMB fintech. Operating leverage is finally breaking through as integration synergies compound and cost discipline tightens across the portfolio. The market still values Fiserv like a mature processing vendor, but the growth profile says otherwise. With accelerating digital adoption, rising ARPU, and a balance sheet built for steady buybacks, FI remains a durable, underpriced compounder in payments infrastructure.

Pitch Summary:
Zegona Communications, a UK-listed telecom investment vehicle, was another strong contributor. After acquiring Vodafone Spain in 2024, management cut costs aggressively and launched fibre-sharing joint ventures with Telefónica and MasOrange, generating nearly €2 billion in proceeds. The preference share redemption will cut share count by 70%, significantly increasing ordinary shareholder value. The company’s private-equity-style strategy continues to unlock value in undervalued telecom assets.

BSD Analysis:
Zegona’s disciplined restructuring and capital recycling make it a unique listed private-equity telecom play. Leverage is declining, and early preference share redemption enhances equity returns. The 115% share price gain since Forager’s entry highlights execution strength. telecom, restructuring, M&A, buybacks, leverage, growth, valuation

Pitch Summary:
CRH was a top performer for the Forager International Fund, rising 30% during the quarter. Management delivered strong results driven by margin expansion in North America, supported by infrastructure spending and pricing discipline. At its Capital Markets Day, CRH announced 2030 growth and margin targets above expectations, alongside a $40 billion capital deployment plan and a strong acquisition pipeline. Forager expects continued re-rating potential given structural U.S. exposure and potential S&P 500 inclusion.

BSD Analysis:
CRH’s North American footprint positions it as a key beneficiary of U.S. infrastructure investment. Management’s disciplined pricing and buyback program underpin steady EPS growth. Shares trade at ~15x forward earnings, with scope for multiple expansion as cash deployment accelerates. cement, construction, infrastructure, margins, growth, buybacks, valuation

Pitch Summary:
Forager’s purchase of Comfort Systems USA (FIX) during the April sell-off proved timely. The company’s focus on HVAC installations for data centers and industrial clients positioned it well for structural growth, and its share price has since risen 170%. Management’s operational execution and margin improvement were standouts. Forager trimmed the position as valuation rose but retained exposure, citing long-term quality and continued demand in AI-linked data center construction. The team emphasized that patience and disciplined research allowed them to seize this opportunity at peak market panic.

BSD Analysis:
Comfort Systems benefits from secular growth in data center and industrial HVAC demand. Its disciplined execution and pricing power have driven strong margin expansion. Trading at ~22x forward earnings, FIX still offers exposure to AI infrastructure tailwinds and solid free cash flow generation. HVAC retrofits and maintenance revenue further support steady compounding.

Pitch Summary:
Nexstar Media Group (NXST) was a key contributor to Frank Value Fund performance after announcing a proposed acquisition of Tegna, another long-held position. The managers had anticipated increased M&A activity following signals from a friendly FCC that ownership caps could be lifted. Nexstar’s significant share repurchases and double-digit free cash flow yield provided upside even before the deal. The fund exited the position following the takeover announcement, realizing a 28% YTD gain. The thesis exemplified the team’s focus on catalyst-driven value investing in underfollowed mid-cap stocks with strong cash generation.

BSD Analysis:
Nexstar’s disciplined capital allocation, high FCF yields (~12%), and consolidation strategy continue to unlock shareholder value. With EBITDA margins near 35% and a proven M&A track record, the company remains a leading consolidator in U.S. broadcasting. The merger with Tegna expands footprint and bargaining power with advertisers, supporting EPS growth and potential multiple expansion.

Pitch Summary:
Tegna and Nexstar Media Group were among the fund’s holdings involved in M&A activity during the quarter. The Frank Value Fund highlighted that its research anticipated a more permissive FCC stance on station ownership, creating conditions for consolidation. Both companies generated double-digit free cash flow yields and aggressively repurchased their own shares while waiting for regulatory clarity. Following Nexstar’s proposed takeover of Tegna, the fund exited both positions with a 15% gain in Tegna year-to-date (excluding dividends). The managers viewed the transaction as a validation of their thesis on undervalued broadcasting assets and capital discipline in legacy media businesses.

BSD Analysis:
Tegna’s acquisition by Nexstar underscores the intrinsic value in local broadcasting franchises with stable cash generation. At acquisition, Tegna traded near 6x EBITDA with FCF yields exceeding 10%. Continued consolidation in the industry should support further valuation re-rating. Investors benefit from high payout ratios and resilient advertising demand in an otherwise challenged media environment.

Pitch Summary:
Landstar System (LSTR) was a new addition to the Value Fund. Fenimore highlighted its asset-light model, where independent contractors handle loads and own their trucks, while agents manage logistics. This structure reduces capital intensity and enhances scalability. Management’s long experience balancing both sides of the business provides a competitive edge. Fenimore sees normalization ahead for the challenging trucking cycle, with Landstar well-positioned for recovery.

BSD Analysis:
Landstar’s capital-light structure supports superior ROIC and flexibility during freight downturns. As trucking demand stabilizes, margins should rebound toward historical averages. Shares trade near 18x forward earnings, appealing for a high-quality logistics platform with disciplined capital allocation.

Pitch Summary:
Fenimore initiated a new position in Agilent Technologies (A), a global leader in analytical instruments and consumables used in life sciences and industrial applications. The life sciences sector has faced headwinds from tariffs, reduced R&D budgets, and slower Chinese demand, but Fenimore believes these are temporary. Agilent’s strong competitive positioning and high recurring consumable revenue underpin long-term resilience. The firm expects normalization of R&D activity and improving international sales to drive earnings recovery over time.

BSD Analysis:
Agilent offers cyclical recovery potential with structural strengths in recurring consumables and leading instrument franchises. Shares trade near 22x forward earnings, modest given historical mid-teens EPS growth. Balance sheet strength and steady capital returns enhance long-term value.

Pitch Summary:
Ross Stores (ROST) was again a top contributor in the Value Fund. Earnings exceeded analyst expectations, and same-store sales and margins improved. The company continues to benefit from its off-price model, sourcing excess inventory and overorders from full-price retailers. This allows Ross to sell branded merchandise at 20%–60% discounts, appealing to cost-conscious consumers and supporting resilience through economic cycles.

BSD Analysis:
Ross’s value-oriented model and efficient sourcing drive stable profitability. Its scale and merchandising expertise sustain competitive advantage in a fragmented retail environment. The stock trades at ~21x forward earnings with low leverage and consistent free cash flow generation.

Pitch Summary:
Amphenol remained a top contributor in the Value Fund for the second consecutive quarter. The company’s earnings continue to benefit from AI data center buildout, while its valuation multiple reflects strong investor enthusiasm for exposure to this secular expansion. Fenimore continues to view Amphenol as a long-term compounder supported by diversified end markets and exceptional management.

BSD Analysis:
Amphenol’s exposure to AI infrastructure and industrial automation provides sustained growth visibility. With operating margins above 25% and a disciplined acquisition strategy, the company remains a high-quality compounder. Shares trade near 30x forward EPS, a premium justified by secular tailwinds and consistent execution.

Pitch Summary:
Verisk Analytics (VRSK) reported 8% organic growth, but sentiment weakened after the company announced a $2 billion acquisition viewed by investors as non-core. Concerns also centered on competitive pressures and exposure to the rate cycle, as roughly one-quarter of revenue is tied to growth in newly written insurance premiums. Despite stable earnings, the stock declined on valuation compression and investor caution around M&A execution.

BSD Analysis:
While fundamentals remain intact, VRSK faces short-term skepticism over capital allocation and industry cyclicality. Trading near 28x forward earnings, the company must demonstrate accretive M&A integration and sustained organic growth to warrant multiple expansion. A defensive balance sheet and recurring revenue base limit downside risk.

Pitch Summary:
Ross Stores (ROST) continued its recovery as trade policy concerns faded. One quarter after pulling guidance due to tariff uncertainty, the company’s August earnings showed that headwinds were being effectively managed. All major merchandise categories grew year-over-year, and margins expanded as inventory discipline improved. Investors gained confidence in management’s execution, supporting the company’s long-term off-price retail leadership position.

BSD Analysis:
Ross Stores benefits from resilient value-oriented demand and disciplined inventory management. With same-store sales growth and margin recovery in motion, ROST’s consistent cash generation supports buybacks and dividends. Shares trade at ~21x forward earnings, attractive for a high-ROIC retailer with pricing power and structural discount positioning.

Pitch Summary:
Amphenol (APH) was one of the top performers during the quarter, reporting 41% organic growth along with record margins and profitability. The company continues to benefit from the global buildout of AI data centers, with management emphasizing that the infrastructure expansion is still in its early innings. Investors rewarded Amphenol’s exposure to this secular growth theme, and Fenimore expects continued strength in interconnect demand. Its performance reaffirmed the firm’s conviction that AI-driven infrastructure remains a multi-year catalyst.

BSD Analysis:
Amphenol remains a structural winner in electronic connectivity driven by cloud and AI data center demand. The company’s diversified end markets, high incremental margins, and strong balance sheet support durable double-digit EPS growth. Trading at ~30x forward earnings, valuation is fair given visibility into secular infrastructure expansion and superior execution.

Pitch Summary:
Fenimore initiated a position in Casella Waste Systems (CWST), the fifth-largest public waste collection company in the U.S. Management has been followed since 2018 and is viewed as strong operators with disciplined execution. Casella possesses several attractive investment characteristics, including pricing power, scarce assets, essential services, and scale advantages. Industry-wide pressures—such as weak industrial demand and falling commodity prices—created a buying opportunity. The company has been slower than expected in realizing synergies from its Mid-Atlantic acquisition, which Fenimore views as temporary.

BSD Analysis:
Fenimore’s thesis centers on Casella’s durable pricing power and defensive business model amid cyclical softness. With a strong regional footprint and pricing-led margin recovery, earnings growth should accelerate once integration benefits materialize. Shares trade around 25x forward EPS, justified by high FCF conversion and long-term secular demand for waste and recycling infrastructure.

Pitch Summary:
Davidson highlighted Microsoft as an example of extreme valuation dynamics, noting that its corporate bonds were recently yielding less than U.S. Treasuries due to market confidence in its credit quality. This observation underscores both the market’s optimism around AI-driven revenue growth and the broader concentration in mega-cap technology stocks. Davidson cautioned that while fundamentals remain strong, such valuations warrant careful risk assessment.

BSD Analysis:
Microsoft remains financially exceptional with $90B+ in annual free cash flow and net cash positioning. However, the yield inversion versus Treasuries highlights excessive market optimism. Shares trade at ~33x forward earnings with AI tailwinds largely priced in. Investors should monitor valuation risk despite long-term growth visibility in Azure and enterprise AI services.

Pitch Summary:
Canada’s Celestica is a high-conviction AI infrastructure play, benefiting from hyperscaler capex growth, rising networking intensity and the shift toward white-box architectures. Its connectivity and cloud solutions segment is poised for 20%+ annual revenue growth, supported by deepening AI-related engagements and next-gen compute deployments.

BSD Analysis:
Celestica is transforming from a contract manufacturer into a high-margin AI infrastructure supplier. With accelerating revenue and expanding EBIT margins (>7%), the company is leveraged to AI data center growth and server redesign cycles. Shares trade at ~10x forward earnings, inexpensive for 20%+ EPS growth. Strong free cash flow supports buybacks, while structural AI tailwinds provide multi-year visibility.

Pitch Summary:
UCB rose on robust first-half results, strong uptake of recently launched treatments Bimzelx for psoriasis and Rystiggo for an autoimmune condition, and positive Phase 3 clinical trials for a seizure disorder. A Bimzelx competitor in an indication for an autoinflammatory skin condition has had less than compelling data, boosting UCB’s position in this disease area.

BSD Analysis:
UCB’s strong commercial momentum in immunology and neurology underpins sustainable double-digit earnings growth. Bimzelx and Rystiggo launches de-risk near-term revenue while late-stage pipeline adds optional upside. Margins are expanding with mix shift toward proprietary drugs. Shares trade at ~15x forward earnings—reasonable for a top-tier European biotech with accelerating ROIC and cash generation.