Investment Pitches

Pitch Summary:
Shares of cloud and CRM leader Salesforce lagged during the quarter, as the market reacted tepidly to forward-looking guidance that was viewed as conservative, especially compared to heightened expectations for generative AI adoption. The company did launch its full-stack AI system Agentforce, with strong demand across industries, as well as a specialized AI platform for health care and pharma built on top of Agentforce.

BSD Analysis:
Salesforce is finally behaving like a disciplined, shareholder-focused company — and the financials show it. Cost cuts, slower hiring, and margin expansion turned CRM into a cash machine. The Data Cloud + Einstein AI combo is management’s most credible product vision in years, giving customers real reasons to upgrade and expand. Enterprise software budgets may be uneven, but Salesforce’s platform lock-in remains brutal. This is a company shifting from “growth at any cost” to “profitability at full scale” — the best kind of pivot.

Pitch Summary:
Accenture underperformed during the period, as the company’s quarterly results showed mixed signals. While the company maintained its continued trajectory of strong growth with margin expansion, reported new bookings lagged expectations, which raised investor concerns around demand sustainability and potential client pullbacks. However, Accenture continues to win large-scale AI and digital transformation mandates, so the company’s strategic positioning in generative AI services remains intact.

BSD Analysis:
Accenture is the consulting empire best positioned for the AI transformation wave. Clients don’t trust hyperscalers to do strategy, and they don’t want integrators who can’t match global scale — so they default to Accenture. The company is landing billion-dollar digital + cloud + AI transformation programs that will take years to unwind. With a gigantic client footprint, disciplined delivery, and deep vertical expertise, Accenture remains the safest large-cap bet on enterprise AI adoption. It’s a defensive compounder with stealth AI torque.

Pitch Summary:
Shares came under pressure during the quarter, as reported quarterly results were overshadowed by cautious guidance, concerns about impacts of tariffs on large-brand spending and rising competition from Amazon, along with the departure of the CFO. The company’s Kokai AI platform now powers 75% of client spending, and connected TV is the fastest-growing channel, now accounting for nearly half of total spending.

BSD Analysis:
The Trade Desk remains the independent ad-tech platform that refuses to die, no matter how hard the walled gardens push back. Its UID2 identity framework is gaining traction, CTV is still early in its monetization curve, and advertisers need a neutral, high-performance platform more than ever. TTD’s margins are stellar, its tech is best-in-class, and its CEO keeps playing chess while competitors play Candy Land. This is one of the cleanest picks-and-shovels plays on the future of digital advertising.

Pitch Summary:
Shares of Broadcom (AVGO) kept pace with fellow semiconductor infrastructure leader NVIDIA, with strong results driven by exceptional demand for AI accelerator chips and networking hardware. AI semiconductor chips are now a majority of the company’s semiconductor revenue, and the company is on pace for 11 consecutive quarters of AI revenue growth. Notably, the company announced a sizable $10 billion custom AI chip order during the quarter, set for delivery starting in 2026, and reported backlog exceeded $100 billion, anchored by orders for AI chips.

BSD Analysis:
Broadcom is the AI infrastructure vendor everyone underestimates because it doesn’t hype anything. Its custom accelerators are landing massive hyperscaler wins, VMware is transforming the margin profile, and the company’s networking products are foundational to AI data center traffic. The operating model is ruthless — divest junk, squeeze synergies, and weaponize cash flow. Broadcom quietly commands one of the most powerful positions in global compute, and the market still values it like a stodgy semiconductor conglomerate. That’s a mistake.

Pitch Summary:
Core holding NVIDIA (NVDA) delivered strong gains during the quarter, as the company reported impressive quarterly results driven by extraordinary demand for its data-center products. Accelerating adoption of NVIDIA chips related to generative AI across hyperscalers, enterprise and sovereign customers resulted in quarterly revenue doubling compared to the prior year. With its unmatched hardware leadership, robust software ecosystems (CUDA platform, AI frameworks and networking) and an expanding base of enterprise customers and strategic partners — including the announcement of a $100 billion investment in AI leader OpenAI — NVIDIA remains uniquely positioned at the center of the global AI computing cycle.

BSD Analysis:
NVIDIA didn’t just build GPUs; it built the AI economy’s operating system. Enterprise AI, hyperscaler clusters, robotics, simulation — everything runs through NVIDIA’s hardware + software stack. Competitors don’t have a product problem, they have a reality problem: you don’t catch a company that moves this fast and has developers locked into CUDA. Demand is overwhelming, margins are unbelievable, and Blackwell is about to reset the industry again. NVIDIA is the most important company in the world right now — full stop.

Pitch Summary:
Online brokerage platform Robinhood (HOOD) was added to the S&P 500 Index in September, marking a key achievement for the fintech company that had once been dismissed as a meme stock trading platform. The company also reported strong quarterly results featuring significant growth in transaction-based revenues, as market volatility fueled robust trading activity across equities, options and cryptocurrencies. The company’s ongoing discussions with regulators regarding international expansion are supportive of an expanding addressable market, and its strategic push into tokenized assets present an opportunity for the company to capitalize on emerging trends in digital finance.

BSD Analysis:
Robinhood is no longer the meme casino — it’s a maturing brokerage with growing deposits, expanding product breadth, and a user base that finally acts like investors. Rising rates turned net interest income into a cash geyser, and the company keeps layering on new services: retirement accounts, credit cards, futures, and soon more banking. Robinhood is still high-beta, but it’s behaving like a real financial platform with a sticky ecosystem. If market activity stays strong, HOOD’s operating leverage has serious upside.

Pitch Summary:
Shares of leading AI connectivity specialist Astera Labs (ALAB) more than doubled during the quarter, driven by exceptional quarterly results and growing investor enthusiasm around the company’s expanding role in next-generation AI data centers. The semiconductor company reported record revenue growth during the quarter, driven by insatiable demand for its new Scorpio line of products — which quickly became the fastest-growing product line in the company’s history, after ramping up in production. Astera Labs has positioned itself as a mission-critical enabler for hyperscalers transitioning to AI computing, and its products play a key role in overcoming significant infrastructure challenges related to connectivity bottlenecks.

BSD Analysis:
Astera sits at the epicenter of AI infrastructure — PCIe, CXL, and high-speed connectivity for data centers that are getting choked by bandwidth limitations. Hyperscalers are throwing money at Astera because its connectivity silicon unlocks performance bottlenecks in GPU clusters. Revenue is exploding, design wins are piling up, and the company is scaling at Silicon Valley speed. This is a pure-play on data center interconnect growth, one of the strongest secular trends in tech. Astera is early, aggressive, and positioned directly in front of a multi-year AI capex wave.

Pitch Summary:
Trex declined 16%. Trex is the leading U.S. manufacturer of wood-alternative composite decking products. The decline in September appeared to be driven by deteriorating macroeconomic sentiment rather than company-specific developments, and was compounded by peer signals: water products distributor Core & Main and siding manufacturer James Hardie both lowered guidance, citing weaker new home construction trends. Trex’s share price moved in sympathy, despite the company being primarily exposed to repair and remodel (R&R) activity, which has been more resilient than new home construction. In our view, the company remains well-positioned for long-term growth as housing turnover and R&R activity eventually recover.

BSD Analysis:
Trex is the brand homeowners don’t know they’re asking for — they just show up wanting “the good deck,” and Trex wins the sale. Its composites dominate the U.S. outdoor living market, and high lumber prices permanently reset the value equation. Trex’s margins are fat, capacity is expanding, and brand recognition keeps rising as remodel demand normalizes. This is a secular penetration story disguised as a cyclical building-products company. As housing turnover improves, Trex’s operating leverage lights up quickly.

Pitch Summary:
Medpace increased by 8%. Medpace is a clinical research organization (CRO) that focuses primarily on small biotech customers. Small biotechs are the engine of innovation in the pharma industry and are expected to grow at high-single-digit rates over the medium term. After a year of weakness, in July, Medpace’s Q2 result showed surprisingly resilient net bookings growth, driving sharp appreciation in its share price. Subsequently, incremental news about biotech and pharma has been cautiously positive, including the level of biotech funding as well as Pfizer coming to an agreement with the Trump Administration on drug pricing.

BSD Analysis:
Medpace is the CRO that keeps embarrassing bigger competitors because it actually knows how to execute. While the big contract research players drown in bureaucracy and bloat, Medpace runs a tight, high-velocity model that clients swear by. Its biotech-heavy customer base isn’t dead — funding is stabilizing, pipelines are moving, and Medpace keeps winning share on speed, cost predictability, and quality. Margins remain elite in an industry where “elite” is rare. With zero debt and a founder-led culture obsessed with profitability, Medpace is one of the few pure-play CRO compounders still running at full stride.

Pitch Summary:
I also established a capital structure arbitrage in Bel Fuse (“BELFA” / “BELFB”). As you may recall, I previously owned BELFB based first on new management improving sales and profitability and subsequently on the acquisition and integration of Enercon. That investment worked out wonderfully for us, though in hindsight I sold too early as the company posted banner Q2 results. In revisiting the name, I noticed two things. Firstly, the discount in the price of the Class A shares versus the Class B shares had materially widened and was approaching historic levels. Secondly, Gabelli, a large holder of the Class A shares updated his holdings report to note that he is considering resubmitting a shareholder proposal to collapse the share structure. Gabelli had previously submitted similar proposals in 2018 and 2020. At the time those proposals did not pass as the company’s governance documents suppress the voting rights of Class A shareholders who own more than 10% of the outstanding Class A; and with approximately 21% of the outstanding Class A, Gabelli was not able to fully exercise its voting rights. At the 2020 shareholder meeting, the Gabelli proposal received 567k votes in favor and 921k votes against. Had Gabelli been able to vote their 463k shares the proposal would have passed. In the years since, however, Gabelli has sold his Class A shares down to 7.966% and should be able to vote for any proposal. The largest Class A shareholder is Daniel Bernstein, who is allowed to vote his shares through an exemption. Daniel is the son of the company’s founder and former CEO. Since 2020 we have seen Daniel slowly release the reigns of the company as he brought in an outsider as CFO to effect change and ultimately decided to promote him to CEO effective this year. This decision has been incredibly beneficial to Daniel and all shareholders, as the stock price has increased about 10x. Given that 90% of Daniel’s holdings are in Class A which are trading at a material discount to the more liquid Class B shares, Daniel is no longer involved in the day-to-day operations, and has demonstrated the willingness to put ego aside for the greater good, I would not be surprised if he changes his stance on the matter. Collapsing the structure would be a win-win as it would improve corporate governance and provide liquidity to all shareholders.

BSD Analysis:
My analysis supports a likely unification of BEL Fuse’s dual-share structure, which could unlock 20–30% upside through narrowing the Class A discount. Governance improvements, strong management execution, and shareholder alignment bolster the investment case. The firm trades at ~8x forward earnings, with margin expansion potential and balance sheet strength from the Enercon acquisition integration.

Pitch Summary:
I bought shares in American Woodmark (“AMWD”) following their announced merger with Masterbrand (“MBC”). AMWD & MBC are two of the largest US manufacturers of residential cabinets. What stood out to me were the identified synergies relative to their current earnings power. Specifically, the companies have identified $90mm in cost synergies relative to ~$490mm in EBITDA, an 18% increase. Importantly, MBC management is already 1 year into acquiring Supreme and have stated that the integration progress is on track relative to their initial estimates. Unlike Supreme, which has many high-end and customized products, AMWD has a more standardized product offering; as such any rejiggering of manufacturing locations with AMWD should be a lot easier. MBC is run by Dave Banyard who will remain as CEO of the combined company. Having previously worked in senior roles at both Danaher and Roper, he has a lot of experience in acquisitions and operational excellence. Keeping in mind that this is a highly cyclical industry, from 2019 to LTM, Dave was able to grow revenue at MBC by 5.7% organically; this compares positively to AMWD which grew 0.2% during the same period. From a margin perspective, MBC performed favorably as well. MBC expanded its EBITDA margin from 11.1% to 12.5% (+1.4%) while AMWD compressed from 13.9% to 11.1% (-2.8%). I expect that the combined entity will benefit from Dave’s leadership.

BSD Analysis:
AMWD’s merger with MBC creates the largest U.S. cabinet manufacturer with meaningful cost synergies and scale benefits. The $90mm synergy target implies strong EPS accretion potential. Management’s track record in operational excellence and integration suggests execution upside. With cabinet demand tied to housing recovery and tariff protection, AMWD offers cyclical leverage at a discounted 6–7x normalized EBITDA.

Pitch Summary:
During the quarter I re-established a position in Victory Capital (“VCTR”). VCTR has closed their acquisition of the Amundi US business and now boasts over $300bn in assets under management. Net flows for the acquired business were positive in 2024 and for 2025 YTD. On a consolidated basis, there is upside to flows should VCTR be able to realize the immense cross-selling opportunity at hand. As a reminder Amundi globally manages over $2 trillion in assets, has a 15-year distribution agreement with VCTR, and economic exposure to VCTR with ownership of 23mm equivalent shares (worth about $1.5bn). Management increased their cost synergy target to $110mm and have historically exceeded their guidance. I believe that the company can achieve at least $7.00 / share next year in free cash flow, putting them at about 9x. This level is at a discount to comparable asset managers and does not give the company credit for operational upside and strong capital allocation.

BSD Analysis:
Victory Capital’s acquisition of Amundi US is strategically accretive, adding scale and distribution reach. Positive fund flows and rising synergy targets strengthen earnings visibility. With a 9x FCF multiple and strong balance sheet, VCTR is attractively valued versus peers. Its buyback program and cross-selling optionality provide additional upside, positioning it well for margin expansion and multiple re-rating.

Pitch Summary:
The Long Only portfolio gained 10% in the quarter. The portfolio was most impacted by the strong performance of Kratos (“KTOS”), a position I initiated in Q2. The stock nearly doubled in Q3 driven by positive industry developments and company specific releases. In July, Defense Secretary Pete Hegseth announced that the U.S. would ramp production and fielding of drones. In August the company released their Q2 earnings which beat consensus; but the real mover here was commentary around their future outlook. Management identified several large wins post quarter end that will boost Q3 bookings and give increased confidence on their guidance for 2026-2027. They also noted that additional upside lies in tactical drones, which are currently being discussed by customers and would immediately increase revenue and profitability since they are already in production. I have reduced our position into this strength to ensure that it is not oversized.

BSD Analysis:
Kratos continues to benefit from accelerating defense drone demand and strong U.S. military procurement trends. With new contract wins and production scale-up, visibility into 2026–2027 growth has improved. Margins are set to expand with higher utilization and operational leverage. The stock’s ~25x forward EBITDA multiple reflects momentum but remains justified given double-digit revenue growth, new tactical drone adoption, and government policy tailwinds.

Pitch Summary:
Tesla remains one of our highest-conviction short positions. The company faces intensifying competition from established automakers and a weakening demand backdrop in key markets such as China. Margins have deteriorated due to aggressive price cuts, and we view the company’s AI and autonomy narrative as overhyped relative to commercial viability. We continue to see significant downside risk given stretched valuation and operational headwinds.

BSD Analysis:
Invenomic’s bearish case for Tesla centers on margin compression and fading pricing power. With automotive gross margins under 20% and slowing deliveries, Tesla’s premium valuation (>50x earnings) looks untenable. Rising competition from BYD and European OEMs compounds pressure. electric vehicles, competition, valuation, margins, demand, autonomy, overhyped

Pitch Summary:
NVIDIA was one of the fund’s largest short positions during the month. The fund believes the company’s current valuation reflects an unsustainable AI-driven bubble. While fundamentals remain strong, the pace of capex expansion across hyperscalers appears excessive relative to near-term monetization opportunities. We believe market expectations for growth are unrealistic and current multiples provide a poor risk/reward setup.

BSD Analysis:
Invenomic takes a bearish stance on NVIDIA, viewing it as emblematic of speculative AI euphoria. Trading at ~35x EV/EBITDA and >20x sales, valuation embeds perfection. Slowing data center orders, concentrated hyperscaler exposure, and supply chain risks could trigger multiple compression. semiconductors, AI, valuation, bubble, hyperscalers, capex, risk

Pitch Summary:
Leading defense technology provider Kratos Defense & Security Solutions, Inc. contributed to performance following a strong earnings report and continued momentum across its business segments. Years of investment are beginning to pay off, with the company winning new contracts across multiple divisions. The current defense spending cycle appears to be in a generational upswing amid heightened global conflicts, and Kratos’ innovative solutions position it well to support the U.S. Armed Forces. The current administration’s openness to smaller, agile defense contractors further strengthens Kratos’ opportunity to secure larger awards, supporting our continued conviction in the company.

BSD Analysis:
A robust bookings backdrop across hypersonics, tactical UAVs, and propulsion underpins multi-year revenue visibility and operating leverage. With scale improving and mix shifting to higher-margin systems, EBITDA expansion should follow; backlog growth and contract announcements are the key catalysts. Balance-sheet discipline and potential program-of-record wins can drive re-rating toward peer EV/EBITDA. We align with the bullish stance given the cycle tailwinds and contract momentum. :contentReference[oaicite:4]{index=4}

Pitch Summary:
Wingstop Inc. is a fast-casual restaurant chain known for its cooked-to-order chicken wings and wide flavor variety, operating a highly franchised model across the U.S. and abroad. Shares fell during the quarter amid softening sales momentum. While the company reported better-than-expected quarterly results over the summer, subsequent market data indicated weakening sales trends as the quarter progressed. We attribute this to a broader slowdown in industry spending that has affected Wingstop’s customer base. Despite these short-term headwinds, we maintain conviction in Wingstop’s long-term growth prospects. The company’s asset-light, franchised business model and best-in-class unit economics should continue to support double-digit unit growth for the foreseeable future. We also believe Wingstop’s technology initiatives to reduce order times will drive improved sales and that the company will benefit from continued growth in marketing and brand awareness.

BSD Analysis:
Temporary comp softness against tough laps doesn’t alter the multi-year unit expansion and margin narrative; royalty-driven EBIT scales with system sales. Track cadence of new openings, digital mix, and wing input costs. If same-store sales reaccelerate, a premium EV/EBITDA can be sustained; otherwise, valuation compresses near-term. We agree with a constructive long-term stance given strong franchise economics and digital throughput initiatives. :contentReference[oaicite:3]{index=3}

Pitch Summary:
Inspire Medical Systems, Inc. is a medical device company offering a treatment option called hypoglossal nerve stimulation for patients with moderate-to-severe obstructive sleep apnea. Shares fell during the quarter as management lowered 2025 financial guidance, citing several factors behind the slower-than-expected rollout of Inspire 5, the company’s next-generation device. These included delays onboarding centers to a new patient management platform, a postponed Medicare reimbursement code that did not take effect until July 1 due to a software update, patients deferring procedures in anticipation of Inspire 5’s availability, and management’s decision to pause marketing efforts and new center expansion. In addition, management noted anecdotal reports of some patients delaying procedures to try GLP-1 medications. We exited our position.

BSD Analysis:
The thesis hinges on execution: guidance cuts, implementation frictions, and possible demand deferral versus GLP-1 use undermine near-term growth visibility and multiple support. Reimbursement and center productivity are key KPIs; until adoption of Inspire 5 stabilizes, downside risk to revenue growth and gross margin exists. Given decelerating momentum and competitive obesity therapies, we agree with the manager’s bearish stance and exit decision. Watch for clearer procedure trends and center ramp data before reconsidering. :contentReference[oaicite:2]{index=2}

Pitch Summary:
PAR Technology Corporation is a leading global provider of software, systems, and service solutions to the restaurant industry. Shares fell during the quarter after the company lowered its full-year growth outlook to 15% from 20%, reflecting a weaker-than-expected first half driven by soft macroeconomic conditions and deliberate rollout delays for certain customers. These delays were strategic, allowing PAR to focus on securing contracts with several large enterprise restaurant chains currently in late-stage negotiations, at least one of which could meaningfully expand the company’s scale. Despite the slower start to the year, management remains confident in achieving 20% annual recurring revenue growth over the next 12 months, supported by a strong pipeline of contracted and prospective customers, including its ongoing rollout with Burger King. As more enterprise-scale restaurants upgrade their technology stack, we believe PAR is well positioned to capture outsized share as the leading cloud-based platform in the industry. Strong software revenue growth combined with rapidly scaling profitability should drive meaningful long-term performance. That being said, we decreased the position size given the macroeconomic headwinds the company is facing.

BSD Analysis:
Pipeline conversion with large QSRs (e.g., BK) and ARR growth re-acceleration are the key swing factors; a 15–20% ARR cadence with mix shift to software can compress EV/Revenue to EV/GP and expand EV/ARR multiples as margins scale. We’d track net dollar retention, attach rates for payments/back office, and FCF inflection from lower hardware drag. Execution risk on rollouts and macro-sensitive capex are near-term headwinds, but enterprise wins can unlock operating leverage. On balance, we concur with the constructive stance and see catalysts in deal announcements and margin prints. :contentReference[oaicite:1]{index=1}

Pitch Summary:
In the third quarter we purchased shares of Birkenstock Holding plc. Birkenstock is a global footwear brand with roots dating back to 1774. The brand is most known for its iconic “Arizona” and “Boston” sandals, and the brand has been embedded in U.S. culture since the 1960s and 1970s. Although the Birkenstock brand has been around for over 250 years, in 2009 the Birkenstock family brought in its first outside management team led by Oliver Reichert. Under new leadership and vision, the business has been transformed from a family-owned, production-oriented company into a global, professionally managed enterprise committed to growing the Birkenstock brand. Following the addition of outside management, Birkenstock revenues have grown at a 20% CAGR from fiscal 2014 to fiscal 2025. In 2025, the company generated revenues of €2.1 billion with profitability margins in the mid 30% range. This combination of an iconic brand with high growth and industry leading profitability makes the Birkenstock brand a unique asset. Unlike almost all other footwear brands, Birkenstock manufactures its products in-house with over 95% of its products manufactured in Germany. This provides Birkenstock with better quality control and less external risk. Birkenstock products are sold both direct and through wholesale partners. Wholesale represents roughly 64% of sales and Birkenstock products were sold in 6,000 selected wholesale partners in over 75 countries ranging from orthopedic specialists to major department stores, to high-end fashion boutiques. The remaining 36% of sales are generated direct-to-consumer, with the vast majority sold through e-commerce. The company has just 90 stores, which we expect to continue growing. Birkenstock’s strongest, most developed regions are the Americas and Europe, which represented 53% and 36% of revenues in fiscal 2022, respectively. We believe that Birkenstock will be able to grow revenue in the mid-high teens over the medium term. The company’s growth should be driven by continued growth in its core styles, an expanding year-round product mix, growing the number of stores, and geographic expansion, particularly in the APAC region. We also believe that Birkenstock will be able to maintain its industry leading profitability due to high brand awareness, vertical integration, and the high proportion of products sold at full prices.

BSD Analysis:
Strong brand momentum, vertical integration, and multi-channel distribution support durable double-digit growth and margin resilience. Shares typically trade at a premium to footwear peers given mid-30s EBIT margins and DTC mix; continued store rollouts and mix shift to year-round closed footwear are catalysts for multiple expansion. Watch for capacity additions in Germany to ease supply constraints and sustain full-price sell-through. Risks include fashion cyclicality and wholesale order volatility, but high repeat purchase rates and a growing DTC channel mitigate this. Net: we agree with the manager’s bullish stance; the setup skews favorably as growth normalizes above industry. :contentReference[oaicite:0]{index=0}