Investment Pitches

Pitch Summary:
During the fourth quarter, we initiated a new position in Broadcom Inc., which designs and supplies semiconductor and infrastructure software solutions that sit at the core of modern computing and networking. The company is a global leader in high-performance digital and mixed-signal technologies spanning networking, connectivity, storage, and custom accelerators. Through its VMware acquisition, Broadcom also owns critical software layers used to virtualize and manage large-scale compute environments. As returns on model scaling remain compelling, leading AI labs are investing aggressively in larger, more specialized infrastructure. Broadcom is uniquely positioned to enable this dynamic as the only scaled merchant supplier capable of co-designing custom accelerators and networking solutions with hyperscalers and frontier AI labs, and reliably delivering them into high volume production. Broadcom has seen strong momentum in AI, with fiscal 2025 AI revenue growth of 65% reaching $20 billion and overall EBITDA margins of 67%. We believe Broadcom’s growth runway is long as an enabler of a full-stack AI infrastructure solution.

BSD Analysis:
Broadcom is entering fiscal 2026 in a position of extreme strength, with AI-related revenues projected to double to over 8 billion dollars in the first quarter alone. The company is successfully integrating VMware into its high-margin software stack while benefiting from an unprecedented surge in demand for AI semiconductors and custom silicon. Its recent launch of the industry’s first Wi-Fi 8 solution for the AI era underscores its leadership in the essential networking infrastructure that supports next-generation computing. Management’s disciplined focus on high-moat, essential technologies has resulted in robust free cash flow and a consistently growing dividend. With a top-tier Zacks rank and a history of exceeding earnings expectations, Broadcom remains a premier "picks and shovels" play on the global AI infrastructure buildout.

Pitch Summary:
Alphabet Inc. is the parent company of Google, the world’s largest search and online advertising company. Shares rose 28.8% (and up 65.3% for the year) on strength in the company’s core businesses, as well as in Google Cloud and Other Bets. In the third quarter, revenues grew 15% in constant currency while EPS grew 35% year-on-year. Despite strong growth of AI competitors such as ChatGPT, both Search and YouTube delivered double-digit revenue growth year-on-year. Additionally, Google Search paid clicks increased compared to the prior year. Google also released the latest version of its AI assistant, Gemini, which currently sits at the top of most AI leaderboards, suggesting the company’s frontier AI research capabilities remain world class. Meanwhile, Cloud revenue growth also accelerated to 34% year-over-year, driven by demand for AI cloud services, with the number of large deals over $1 billion, signed through the third quarter of 2025, greater than the prior two years combined, and the number of monthly AI tokens processed in September up 20 times year-on-year. We believe there is further runway for cloud acceleration given a significant increase in backlog and a large deal announced with leading AI startup Anthropic. Long term, we believe AI innovation should lead to further broad-based opportunities such as autonomous driving (through Waymo), agentic commerce (through the recent partnerships with Shopify and others on Universal Commerce Protocol) and a continued healthy cloud infrastructure business in GCP.

BSD Analysis:
Alphabet trades like a company under siege, yet the core franchise remains absurdly strong. Search is still the default gateway to the internet, and that habit doesn’t break easily. AI isn’t killing the model — it’s raising the cost of competing with it. YouTube continues to gain share in streaming and connected TV, quietly building a second profit engine. Google Cloud has crossed into profitability, adding real operating leverage. Regulatory pressure is persistent, but it hasn’t changed user behavior or advertiser dependence. The balance sheet gives Alphabet freedom to invest aggressively without risking stability. This is not a broken giant. It’s a dominant platform priced with permanent doubt baked in.

Pitch Summary:
While Pershing Square believes Chipotle remains a great business with a long growth runway, the wide range of potential future outcomes led us to sell our remaining shares Recruited a world-class CEO who led an incredible business transformation  Filed 13D with 9.9% ownership in September 2016; board refresh accomplished three months later including two directors from Pershing Square  Board recruited Brian Niccol to succeed founder as CEO in February 2018  From 2017 through 2024, same-store sales (“SSS”) growth averaged .5%, EBIT margins expanded by 13 percentage points, and EPS grew at a 35% CAGR  We sold 83% of our initial shares during this period at attractive returns Recent struggles under new management have clouded the earnings outlook  New CEO named in August 2024 following Niccol’s departure to lead Starbucks  SSS began to slow in early 2025 and have since turned negative  While peers also see headwinds, CMG had historically been quicker to recover  We did not adequately adjust our assumptions and required returns following these changes, especially in light of 2025’s starting valuation of 5x NT EPS

BSD Analysis:
Chipotle is strategically prioritizing long-term customer loyalty over short-term profits in 2026 by allowing pricing to lag inflation to enhance its value proposition. The company is investing heavily in a high-efficiency equipment rollout across 2,000 restaurants, which is already delivering hundreds of basis points in comparable sales improvement and faster service times. While restaurant-level margins are facing temporary pressure from rising beef and chicken costs, the launch of a new protein-focused menu is driving record digital sales days. International expansion is accelerating, with significant new entries planned for Saudi Arabia and a doubling of its footprint in the Middle East. For patient investors, Chipotle’s transition toward an AI-supported, high-throughput model offers a compelling turnaround story with a clear path to 7,000 locations in North America.

Pitch Summary:
2025 marked a pivotal year for HHH as it began its transformation into a leading diversified holding company Strong results across real estate subsidiary’s high-quality portfolio of MPCs ✓ 2025 MPC EBT guidance of $450 million reflects record-high land sale profitability ✓ Same-store NOI growth driven by rental rate increases and strong leasing activity ✓ $3.8 billion of contracted future revenue from condo towers in the pipeline ✓ Well-positioned for substantial future free cash flow generation Completed transaction with Pershing Square in May 2025 Signed definitive agreement to acquire Vantage in December 2025  HHH began operating as a holding company seeking to acquire controlling interests in high-quality durable growth companies  Pershing Square’s $900 million primary investment provided HHH with financial flexibility to execute its strategic transformation  Transaction is expected to close in Q2 2026, subject to regulatory approvals  We expect Vantage to materially accelerate HHH’s return and growth profile

BSD Analysis:
Howard Hughes is successfully navigating a strategic shift toward its core master-planned community business, highlighted by the massive development of Teravalis in Arizona. The company’s condo pipeline in Hawaii represents nearly 3 billion dollars in future revenue, with major deliveries expected in 2026 to drive significant cash flow repatriation to the holding company. Residential land sales continue to reach record prices per acre, reflecting a chronic undersupply of new home inventory in high-growth regions like Las Vegas and Houston. While the office portfolio remains a point of scrutiny, Howard Hughes maintains a stabilized occupancy rate of nearly 90 percent by focusing on premier, amenitized spaces. The firm’s unique ability to control the entire development lifecycle of a city-scale project provides a significant and uncorrelated value creation engine for long-term investors.

Pitch Summary:
QSR is a high-quality business with significant long-term growth potential that we believe trades at a highly discounted valuation Largest businesses outperforming peers  Tim Hortons comparable sales of 3% are outperforming the broader QSR industry in Canada  International business comparable sales of 5% are outperforming McDonald’s Business being simplified and returning to capital-light model  China business has returned to growth, and sale to new franchisee will meaningfully accelerate growth  Carrols outperforming broader Burger King system, and refranchising to smaller operators proceeding ahead of schedule Remains cheap relative to intrinsic value and peers  Trades at x our estimate of next twelve months’ earnings, more than a 20% discount to peers Consistent 8% operating profit growth  On track to deliver 8% operating profit growth despite lower contribution from unit growth

BSD Analysis:
Restaurant Brands International is leveraging its global scale and disciplined cost management to drive steady EBITDA growth and significant deleveraging through 2026. The company is focusing its 400 million dollar annual capital budget on digital infrastructure and international restaurant expansion, particularly for Tim Hortons and Burger King. Segment-level margins are improving as the firm benefits from sales leverage and a strategic pivot toward higher-margin franchised units. While lower-income consumers may face economic pressure, RBI’s diversified portfolio and value-oriented menu items provide a resilient buffer against macroeconomic volatility. Management’s commitment to growing free cash flow to over 1.5 billion dollars supports a healthy dividend and a clear roadmap for improving the company’s investment-grade credit profile.

Pitch Summary:
HTZ is a leading vehicle rental provider in the early stages of a turnaround with asymmetric upside Turnaround already leading to stronger results  Fleet refresh now complete, with depreciation well below targets and strong fleet economics  Vehicle utilization is now 84%, best-in-class amongst peers and highest since 2018  Company reported first profitable quarter in two years Potential to meaningfully grow the business with ancillary services  Expansion of retail used car sales allows Hertz to capture higher profits at disposition  Well-positioned to service the autonomous vehicle ecosystem by leveraging its global network, fleet management expertise, and existing infrastructure Profitability to significantly increase  Management targeting $1bn of EBITDA in the coming years, with continued growth afterwards as operations improve Hertz has asymmetric upside  Share price can increase meaningfully from current levels if management successfully executes turnaround plan

BSD Analysis:
Hertz is successfully turning a corner toward operational stability, targeting a 3 to 6 percent EBITDA margin for 2026 as it completes a transformative fleet refresh. Management has achieved record fleet utilization levels of over 84 percent, indicating strong demand across its mature airport and rapidly growing off-airport business segments. While high leverage and used car pricing remain risks to monitor, the company’s focus on cash flow stability and IT service management is significantly easing balance sheet pressures. The emergence of Hertz car sales and digital channels as high-margin revenue streams provides a new leg of growth beyond traditional daily rentals. As fleet economics stabilize and maintenance costs decrease, the company is on a clear path toward its long-term target of one billion dollars in EBITDA.

Pitch Summary:
Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization The administration has repeatedly emphasized three key objectives  Enhance home affordability by compressing the spread of mortgages over Treasuries  Demonstrate a near-term mark to market for the taxpayers’ ownership in the GSEs  Maximize long-term value of the taxpayers’ interest in Fannie and Freddie  Three simple steps can immediately be taken by Treasury and FHFA  Account for the repayment of Treasury’s Senior Preferred Stock  Exercise Treasury’s warrants to purchase 79.9% of the common stock of the GSEs  Re-list Fannie and Freddie on the New York Stock Exchange  Conservatorship would continue until the administration can carefully execute an exit  No disruption to the mortgage and MBS markets, GSE operations, degree of government control and oversight, or GSE recapitalization through earnings retention We believe the solution we published in November achieves all three goals We believe YTD share price declines greatly underestimate how quickly President Trump can act to drive a re-rating of shares and unveil a taxpayer asset worth ~$300 billion

BSD Analysis:
Fannie Mae remains a central pillar of the United States housing market, with its 2026 outlook projecting a significant recovery in mortgage originations as rates trend toward the 6 percent level. The company’s Economic and Strategic Research Group anticipates a surge in refinance activity and a steady increase in home sales as affordability begins to measurably improve. While it continues to operate under conservatorship, Fannie Mae’s role in providing liquidity and stability to the secondary mortgage market remains indispensable. The firm’s credit quality stays strong, supported by a solid labor market and improved lending standards compared to previous cycles. For investors tracking the macro-housing cycle, Fannie Mae provides critical insights into the velocity of the mortgage market and the overall health of residential real estate.

Pitch Summary:
We believe Meta’s current share price underappreciates the company’s long-term upside potential from AI and represents a deeply discounted valuation for one of the world’s greatest businesses High-quality advertising business model with increasing returns to scale  Scaling engagement across Meta’s vast user base improves utility for both users and advertisers  Granular visibility into consumer behavior and interests enables highly precise ad targeting, making Meta an essential platform for businesses seeking to maximize their return on ad spend Meta’s business model is one of the clearest beneficiaries of AI integration  AI-driven content recommendation systems materially enhance user engagement, especially as content has increasingly broadened from the social graph to a wider range of interest-based content  AI leverages Meta's rich first-party data to deliver more relevant and personalized ads  Campaign automation and AI copy creation tools facilitate self-serve model for advertisers  Potential to unlock new use cases and engagement modes (Business AI digital assistants, wearables) Well-positioned for long-term earnings growth after planned spending ramp in 2026  Significant upside potential from AI supports front-loading infrastructure and talent investments  Historical cost discipline and recently announced budget cuts in the Reality Labs segment highlight focus on balancing AI investments with operational efficiencies  Overbuilding risk mitigated by the core business’s ability to grow into and absorb excess capacity

BSD Analysis:
Meta is executing one of the most aggressive pivots in big tech history, reorienting its massive 135 billion dollar 2026 capital budget toward AI infrastructure and wearables. The company is successfully shifting resources from the Metaverse toward high-engagement AI products like smart glasses and standalone AI video platforms. This strategic focus is already paying dividends in the core advertising business, where AI-driven personalization is driving higher conversion rates and improving return on ad spend for millions of businesses. While capital intensity remains a focal point for analysts, Meta’s robust operating cash flow and high-margin social ecosystem provide the flexibility to fund this massive transition. The company’s focus on lean organizational structures and efficient marketing of its new AI hardware portfolio underscores a commitment to long-term profitability.

Pitch Summary:
Alphabet is leveraging its core strengths in data, distribution, infrastructure, and research expertise to successfully execute on its vast AI potential AI is having a transformative impact on Search & YouTube  AI Overviews & AI Mode demonstrate rapidly improving product velocity in Search  Reaching more than 2 billion users in more than 200 countries, AI Overviews in Search is effectively the world’s most widely used AI product by a significant margin  Has led to accelerating query growth, with the effect most pronounced amongst younger users  Recently announced Gemini-Apple partnership to power Siri validates AI leadership  Focus on multi-modal AI capabilities (image and video generation) has driven material improvements to YouTube’s recommendation algorithms and content creation tools Unique full-stack approach to AI has increasingly differentiated Google Cloud  Cost-advantaged technical infrastructure and world-class models have propelled Google Cloud into a $70 billion run-rate revenue business, which grew % in Q ’25  Rapid improvement in segment profitability

BSD Analysis:
Alphabet is still the most dominant advertising platform ever built, even as every cycle brings fresh obituaries. Search remains embedded in daily behavior, and AI is enhancing results, not replacing them. YouTube has evolved into a global media ecosystem spanning ads, subscriptions, and creator monetization. Google Cloud is now profitable, which quietly transforms the earnings base. Regulatory threats are constant, but user habits and advertiser dependence haven’t meaningfully shifted. Capital allocation has improved, with buybacks finally reflecting balance sheet strength. The company funds AI at scale without betting the franchise. This is not a disruption victim. It’s digital infrastructure adapting faster than critics expect.

Pitch Summary:
Amidst broader market volatility in April 2025, we were able to opportunistically initiate a position in Amazon at a highly attractive valuation Amazon operates two of the world’s great, category-defining franchises  AWS is the leading cloud hyperscaler in a highly concentrated market  Amazon.com is the largest global e-commerce retailer, enabled by a one-of-a-kind logistics network that fulfills over $700 billion in gross merchandise value annually  Both businesses supported by decades-long secular growth trends, occupy dominant market positions, and leverage scale to continually improve their value proposition AI adoption extends and potentially accelerates AWS’s growth runway  Despite an impressive 20% growth rate in 2025 at a $140 billion run-rate revenue scale, AWS’s ability to meet customer demand was limited by capacity constraints  We expect the company’s planned doubling of datacenter capacity through 2027 to be rapidly absorbed by compute demand from scaling AI inference workloads  Structural potential to nearly double retail profitability, driven by increasing mix of higher-margin advertising revenue, network density, and automation initiatives  Broad merchandising mix has limited cost impact from tariffs on results to-date

BSD Analysis:
Amazon is entering 2026 with a massive 200 billion dollar capital expenditure plan aimed at solidifying its dominance in AI infrastructure and supercomputing. AWS remains the primary growth engine, with a surge in its order backlog to nearly 250 billion dollars signaling deep, multi-year demand for its custom Trainium and Graviton silicon. The advertising segment has become a critical high-margin contributor, now generating over 20 billion dollars per quarter and helping to offset the near-term pressure of infrastructure spend. While free cash flow has faced temporary headwinds due to record investment levels, the underlying profitability of the retail division is improving through enhanced delivery speeds and organizational efficiencies. Investors are increasingly viewing Amazon as a foundational AI technology company rather than a simple e-commerce retailer, supporting a potentially significant valuation re-rating.

Pitch Summary:
High-quality business positioned for continued rapid earnings growth trading at a compelling valuation on misplaced industry concerns Near term results are exceptionally strong and accelerating Industry developments consistent with our “partnership” investment thesis  Medium-term outlook positions UBER for continued teens-plus bookings growth and 30%+ growth in earnings-per-share  High rate of growth incorporates planned autonomous vehicle (AV) investments  Newly issued non-GAAP earnings disclosure highlights how inexpensive UBER remains at only 21x NTM earnings  UBER targeting commercial AV operations in 10+ cities by the end of 2026  UBER x Waymo driving best-in-class asset utilization; future expansion likely  Nvidia’s recently launched open-source Alpamayo AV model accelerates development lead-times and broadens access to AV technology  Tesla FSD still under development; potential for future win-win partnerships remain  Bookings increased 19% in 2025 with accelerating momentum; new all-time highs on users, engagement, and trip growth  Pre-tax operating profit grew 50% with strong operating leverage

BSD Analysis:
Uber enters 2026 with an industry-leading operating margin of over 9 percent, reflecting superior platform efficiency and a successfully scaled global network. While the stock has seen some recent volatility, the company’s strong double-digit revenue growth and robust free cash flow margins provide a solid foundation for valuation support. The central investment thesis for the year hinges on Uber’s ability to lead the integration of autonomous vehicles into its mobility and delivery ecosystems through strategic partnerships. Management continues to demonstrate significant operational leverage, with delivery segments reaching a critical inflection point of sustained profitability. Despite competitive pressures, Uber’s dominant market share and high-frequency user engagement make it a premier play on the continued digitization of transportation and logistics.

Pitch Summary:
Leading asset-rich alternative asset manager with deep domain expertise Attractive long-term financial outlook  Owns 73% of $84bn publicly-listed asset manager (Brookfield Asset Management) with significant value derived from asset-light, recurring management fee streams  We believe that deep domain expertise and best-in-class returns position Brookfield to benefit from multi-trillion-dollar wave of AI-related infrastructure investment Financial profile poised to inflect in the near-term  Double-digit earnings growth in 2025 below structural potential as carried interest still below target and Brookfield invests for growth  Near-term outlook supports acceleration to ~25%+ earnings growth  Growth supported by a step-function increase in carried interest realization and the rapid scaling of BN’s Wealth Solutions business  Management targeting nearly $7 of earnings-per-share in 2030, or ~25% compounded  BN’s valuation of ~ x earnings remains a discount to our estimate of intrinsic value and comparable US-peers

BSD Analysis:
Brookfield is positioning itself as a primary beneficiary of a generation-defining investment supercycle driven by the convergence of AI, decarbonization, and deglobalization. The company is leveraging its massive one trillion dollar asset base to meet explosive demand for digital infrastructure and clean energy, with its 2026 outlook highlighting renewables as a critical cost advantage for data centers. Management’s disciplined capital recycling strategy and operational focus are expected to drive robust free cash flow growth even as global interest rates remain elevated. With a diversified portfolio spanning infrastructure, private equity, and real estate, Brookfield offers a resilient model that pairs stable, inflation-linked returns with high-growth thematic exposures. As price discovery in the real estate sector stabilizes, the firm is well-positioned to capitalize on high-quality logistics and housing assets.

Pitch Summary:
Beazley Plc is a leader in the specialty insurance market, known for its bold, data-driven approach to underwriting complex and emerging risks. The company is strategically focused on high-growth areas such as cyber insurance and US excess and surplus lines, leveraging its strong analytical capabilities to price risks that are often avoided by traditional insurers. Beazley's financial strategy is built on cycle leadership, product innovation, and data analytics, allowing it to capitalize on hard markets and innovate with first-to-market covers. However, its high concentration in volatile lines like cyber insurance poses significant risks, particularly in the event of severe loss events or regulatory changes. While Beazley is a strong business, its cyclical nature and exposure to high-severity classes require disciplined underwriting and capital agility. The stock may be attractive when trading close to book value, but long-term returns are uncertain unless purchased at a significant discount.

BSD Analysis:
Beazley's strategic emphasis on cyber insurance, which constitutes a significant portion of its portfolio, positions it well to capitalize on the growing demand for coverage in this area. The expansion of its 'Beazley Digital' division to target SMEs through MGAs and embedded channels is a forward-thinking move to scale its operations efficiently. However, the company's reliance on volatile lines like cyber and US casualty insurance exposes it to potential market fluctuations and loss events. Regulatory changes in capital requirements could impact its competitive positioning, and a prolonged soft market could challenge its ability to maintain pricing discipline. Beazley's success will depend on its ability to outmaneuver competitors through superior underwriting and risk management, particularly as market conditions evolve. Investors should consider the company's cyclical exposure and potential for volatility when evaluating its long-term investment potential.

Pitch Summary:
Sintana Energy offers a unique investment opportunity by providing concentrated exposure to significant oil discoveries in Namibia and emerging opportunities in Uruguay. The company's business model involves holding carried interests in exploration blocks, which allows it to benefit from large-scale resource exposure without incurring exploration and development costs. Sintana's core asset is its indirect interest in PEL 83, home to the Mopane discovery, with significant potential upside once production commences. The recent merger with Challenger Energy expands Sintana's portfolio to include Uruguayan blocks, enhancing its exploration potential. The strategic partnership with major operators like Galp and Chevron further validates the potential of Sintana's assets. With a market cap of $165 million and potential valuations of its assets reaching billions, Sintana presents a high-risk, high-reward opportunity for investors.

BSD Analysis:
Sintana Energy's investment case is underpinned by its strategic partnerships and carried interest model, which significantly reduces its financial risk while maintaining exposure to world-class discoveries. The company's Namibian assets, particularly PEL 83, are poised for substantial value appreciation as development progresses, with estimates suggesting a valuation of up to $20 billion once fully developed. The merger with Challenger Energy not only diversifies Sintana's asset base but also positions it strategically in the promising Uruguayan offshore plays. The geological similarities between Namibia and Uruguay's basins suggest a high probability of successful exploration outcomes. However, the timeline for production and the need for further investment decisions pose risks that investors must consider. Overall, Sintana's unique positioning and strategic partnerships offer a compelling case for those willing to navigate the inherent risks of oil and gas exploration.

Pitch Summary:
Chewy, Inc. has demonstrated significant growth since its inception, capitalizing on the increasing trend of pet ownership and the shift towards online retail. The company, initially launched as 'Mr. Chewy', was acquired by PetSmart for $3.35 billion, highlighting its rapid market capture. Under CEO Sumit Singh, Chewy has maintained operational independence and focused on profitability, achieving public company status in 2019. The pandemic further accelerated its growth, with revenues doubling from $4.8 billion in 2019 to over $10 billion in 2022. Chewy's current market share is 8%, and it continues to outpace market growth with a 6% revenue increase.

BSD Analysis:
Chewy's strategic focus on exceptional customer service and operational independence has been pivotal in its growth trajectory. The company's ability to double its revenue during the pandemic underscores its strong market position and adaptability. Despite initial profitability challenges, Chewy's leadership has effectively navigated the competitive landscape, leveraging its acquisition by PetSmart to fuel expansion. The ongoing growth in the pet market, coupled with Chewy's innovative approach to customer engagement, positions it well for continued success. However, maintaining profitability while expanding market share remains a critical challenge.

Pitch Summary:
DingDong is an attractive acquisition target for Meituan, given the intense competition in China's instant commerce sector. With major players like Alibaba, JD, and Meituan investing heavily to capture market share, DingDong's standalone survival was unlikely. The company's decision to sell its China business to Meituan for $717 million in cash, a significant premium over its market cap, is a strategic move to capitalize on its current value. The acquisition allows DingDong to exit a highly competitive market while providing shareholders with a favorable return.

BSD Analysis:
The acquisition of DingDong by Meituan highlights the ongoing consolidation in the instant commerce sector in China. As major internet companies engage in aggressive spending to dominate the market, smaller players like DingDong face unsustainable competition. The deal not only provides DingDong with a premium exit but also allows Meituan to strengthen its position in the industry. The ability of the Cayman parent entity to extract up to $280 million in additional cash before the deal closes further enhances the attractiveness of this transaction for DingDong's shareholders. This acquisition reflects the broader trend of consolidation as companies seek to achieve economies of scale and improve profitability in a challenging market environment.

Pitch Summary:
FMC Corporation has initiated a strategic review amidst weak results and a challenging outlook for 2026. The review includes potential asset sales aimed at reducing debt by $1 billion. While management is focused on shoring up the legacy portfolio and managing the decline of key products, there are opportunities in new active ingredients. The market is currently not pricing in much for recovery, which could present an opportunity if the strategic review yields positive outcomes.

BSD Analysis:
FMC's strategic review is a critical step in addressing its current financial challenges and positioning the company for future growth. The focus on debt reduction through asset sales and licensing is prudent, given the weak performance outlook. However, the company's ability to capitalize on new active ingredients and manage the decline of legacy products will be key to its recovery. Investors should watch for updates on the strategic review and any signs of operational improvements or market re-rating.

Pitch Summary:
DSM-Firmenich recently sold its ANH unit for €2.2 billion plus a €0.5 billion earn-out. This divestment is expected to significantly alter the company's financial profile, pushing it towards more growth, higher margins, and increased pricing power. Despite the market's negative reaction to the sale, the upcoming investor day in March is anticipated to present a bullish narrative. The company's focus on growth and strategic positioning in the specialty chemicals sector could drive future performance.

BSD Analysis:
The sale of the ANH unit aligns with DSM-Firmenich's strategy to streamline operations and focus on high-margin, growth-oriented segments. The market's initial negative reaction may be an overreaction, presenting a potential buying opportunity. With cyclical headwinds currently impacting the share price, the company's strategic initiatives and upcoming investor day could serve as catalysts for a re-rating. Investors should monitor the company's ability to leverage its enhanced pricing power and growth prospects in the specialty chemicals industry.

Pitch Summary:
For the second quarter in a row, the platinum group metals (PGM) producers were among the Fund’s largest contributors. South African companies Valterra Platinum Ltd (“Valterra”) and Impala Platinum Holdings Ltd (“Impala”) had total returns of 20.7% and 26.4%, respectively. Both companies have significant reserves and are among the world’s largest platinum producers. Valterra contributed 0.8%, while Impala contributed 0.7% to total Fund returns. Although PGM producers appreciated significantly in 2025, we believe these companies still have substantial upside potential in our holdings relative to our risk-adjusted intrinsic value estimate, as they were materially mispriced at the end of 2024. We took advantage of price volatility in both Impala and Valterra, trimming and adding opportunistically.

BSD Analysis:
Impala Platinum is entering 2026 as a high-conviction recovery play, with analysts recently issuing substantial upgrades to both revenue and earnings forecasts following a period of extreme valuation compression. Consensus estimates for 2026 revenue have surged to 136 billion rand, representing a massive 59 percent increase, while per-share earnings are projected to soar by nearly 4,000 percent as the company realizes the benefits of its aggressive cost-cutting and operational restructuring. Management is successfully navigating the structural deficits in the global platinum market, leveraging its strategic footprint in South Africa and Zimbabwe to capture a larger share of the demand from hydrogen fuel cells and next-generation catalytic converters. Technical indicators have inflected positively, with the stock maintaining a "Strong Buy" rank from several research houses due to its superior momentum and improved earnings power. As the company continues to invest in mine digitalization and automation to drive efficiency, it offers investors a high-leverage way to play the enduring demand for green energy transition metals.

Pitch Summary:
For the second quarter in a row, the platinum group metals (PGM) producers were among the Fund’s largest contributors. South African companies Valterra Platinum Ltd (“Valterra”) and Impala Platinum Holdings Ltd (“Impala”) had total returns of 20.7% and 26.4%, respectively. Both companies have significant reserves and are among the world’s largest platinum producers. Valterra contributed 0.8%, while Impala contributed 0.7% to total Fund returns. Although PGM producers appreciated significantly in 2025, we believe these companies still have substantial upside potential in our holdings relative to our risk-adjusted intrinsic value estimate, as they were materially mispriced at the end of 2024. We took advantage of price volatility in both Impala and Valterra, trimming and adding opportunistically.

BSD Analysis:
Valterra Platinum, formerly known as Anglo American Platinum, is entering 2026 as a newly independent powerhouse following its successful demerger from Anglo American in mid-2025. The company is currently experiencing a massive financial inflection, with 2026 profit projections suggesting a 106 percent earnings surge driven by a record rally in platinum prices and aggressive operational restructuring. Management has successfully delivered 5 billion rand in sustainable cost reductions, more than offsetting one-time demerger expenses and inflationary headwinds. As the world’s leading primary producer of platinum group metals, Valterra is a primary beneficiary of a deepening structural deficit in the platinum market caused by production constraints in South Africa and Russia. The recent establishment of a 10 billion rand domestic medium-term note program further strengthens its liquidity as it pursues independent growth strategies in the green energy and automotive sectors. With a forecast return on equity of 27 percent and significant momentum in its refined production output, Valterra offers high-conviction exposure to the essential metals required for the global energy transition.