Investment Pitches

Pitch Summary:
GE Vernova was added during the quarter as part of the fund’s overweight in industrials tied to secular growth themes like power generation and AI infrastructure buildout. Management’s restructuring progress supports improved efficiency and margin profile.

BSD Analysis:
GE Vernova’s separation from GE Aerospace enables focused capital allocation toward electrification and grid resilience. With over $100B in backlog, it stands to benefit from global decarbonization initiatives, grid modernization, and AI data center energy demand. EBITDA margins are expanding as renewable project execution improves and supply chains stabilize. The company’s exposure to clean power and digital grid management makes it a structural play on energy transition. Valuation remains undemanding versus peers like Siemens Energy and Schneider Electric, suggesting further re-rating potential as earnings normalize.

Pitch Summary:
Oracle was initiated as a new holding this quarter. The company continues to expand its cloud computing business, with strong AI infrastructure demand and recent high-profile contracts bolstering backlog growth. Its hybrid model offers resilience and predictable revenue.

BSD Analysis:
Oracle’s $455B cloud backlog demonstrates its transformation from legacy software vendor to enterprise cloud powerhouse. Partnerships with OpenAI, NVIDIA, and Cohere accelerate its AI integration, positioning OCI as a credible hyperscale alternative. With double-digit cloud revenue growth, expanding operating margins above 40%, and steady capital returns, Oracle’s risk/reward remains compelling. The company’s hybrid cloud and database offerings benefit from sticky enterprise clients and long-term contracts. At ~18x forward earnings with a 1.5% yield, Oracle provides stable cash flows and optional upside from AI-driven infrastructure expansion.

Pitch Summary:
MongoDB was added as a new position during the quarter. The company offers a differentiated cloud-native database that enables flexibility and scalability for modern software applications. The fund sees MongoDB benefiting from secular data growth and developer adoption.

BSD Analysis:
MongoDB remains the leading independent database company with accelerating adoption of its cloud platform, Atlas, which accounts for nearly 70% of total revenue. With annual recurring revenue surpassing $2B and net retention of 120%+, MDB continues to expand its enterprise footprint while maintaining 30%+ top-line growth. The firm’s focus on AI workload optimization positions it to benefit from data infrastructure modernization. Strong unit economics, improving FCF, and a broad developer ecosystem create a defensible moat. Valuation remains rich at ~12x forward sales, but margin expansion potential and operating leverage could sustain premium multiples.

Pitch Summary:
AppLovin was a top contributor during the quarter. The company continues to benefit from its advanced AI-powered ad engine (AXON) that enhances ad targeting and drives better ROI for mobile app developers. Strong performance in the ad tech space reinforced its growth trajectory.

BSD Analysis:
AppLovin’s evolution from a mobile gaming publisher to a leading AI-driven ad optimization platform is creating sustained operating leverage. The AXON 2.0 engine is delivering double-digit ROAS improvements for clients, enhancing stickiness and expanding market share. EBITDA margins reached 45%, supported by disciplined cost control and high data-driven monetization efficiency. AppLovin’s shift toward software-centric recurring revenue and partnerships with large developers diversifies growth away from cyclical advertising. At 14x forward EBITDA, the stock remains attractively valued for a firm compounding 25%+ annually.

Pitch Summary:
Apple contributed positively to performance during the quarter. Continued demand for services and installed-base growth offset hardware cyclicality. Its ecosystem stickiness and ability to monetize users through digital subscriptions underpin its steady cash generation and strong shareholder returns.

BSD Analysis:
Apple’s diversified ecosystem of devices and services continues to drive durable cash flow generation despite macro softness. With an installed base exceeding 2.2 billion active devices, recurring service revenue now exceeds $100B annually, accounting for over 25% of total sales. Hardware replacement cycles are stabilizing, and AR/VR integration through Vision Pro could unlock new verticals. The company maintains $165B in cash and short-term investments, enabling aggressive buybacks and dividends while sustaining R&D intensity. Trading at ~28x forward earnings, Apple’s steady margin expansion and fortress balance sheet support a defensive yet growing profile.

Pitch Summary:
NVIDIA was among the top contributors to performance in the NCG Large Cap Growth strategy. The company continues to benefit from rapid adoption of AI workloads, data center expansion, and demand for high-performance computing chips. Its ability to innovate across GPU and software stacks reinforces its leadership in accelerated computing.

BSD Analysis:
NVIDIA continues to dominate the AI semiconductor ecosystem, driven by unparalleled GPU architecture, proprietary CUDA software, and vertical integration across data centers and AI infrastructure. Data center revenue rose over 50% YoY, fueled by hyperscaler demand and inference workloads. Margins remain robust above 70%, with sustained pricing power across its H100 and B200 series chips. The firm’s pivot toward networking and software-as-a-service offerings enhances recurring revenue visibility. With a pristine balance sheet, $40B+ in annualized FCF, and strategic partnerships with leading AI firms, NVDA’s fundamentals justify its premium multiple and position it as a cornerstone of the AI revolution.

Pitch Summary:
Cantrip raised new capital at approximately three times the valuation of the fund’s January 2024 investment, reflecting rapid growth and strong market traction. The company’s management has demonstrated exceptional capital efficiency, scaling distribution while maintaining profitability discipline.

BSD Analysis:
Cantrip’s latest financing at a 3x markup validates the accelerating demand for THC and CBD-infused beverages within the regulated consumer market. The management team’s focus on capital efficiency and scalable distribution differentiates Cantrip from peers in a sector often constrained by overexpansion. With expanding retail partnerships, improving gross margins, and early evidence of repeat customer adoption, Cantrip appears poised to capture a dominant position in the emerging cannabis beverage category. The company’s asset-light model and profitability trajectory provide a rare blend of growth and risk control.

Pitch Summary:
Glass House became available for trading on Robinhood this quarter, broadening retail investor access and visibility. As one of the largest vertically integrated cannabis companies in California, the listing enhances liquidity and exposure ahead of potential federal reform. The company remains well-positioned to capitalize on brand strength and scale advantages as investor access improves.

BSD Analysis:
The listing on Robinhood marks a critical inflection for Glass House, providing improved market access and liquidity at a time when institutional capital remains cautious. The company’s vertically integrated model—spanning cultivation, processing, and retail—provides operational leverage in the largest U.S. cannabis market. With EV/EBITDA under 6x and expanding wholesale margins, Glass House stands to benefit from both improved investor sentiment and incremental pricing normalization. Potential federal rescheduling or SAFE Banking progress could catalyze significant valuation uplift relative to peers.

Pitch Summary:
Vireo experienced significant volatility this quarter, dropping from $0.70 to $0.32 due to a likely portfolio liquidation, before rebounding on major positive developments. The company received approval to commence adult-use cannabis sales in Minnesota, which should add $30–45 million in EBITDA to its existing $100 million run rate. Vireo also acquired the senior debt of Schwazze, a distressed operator in Colorado and New Mexico, at around 3x EBITDA—a highly accretive move. Management expects Q3 results to show strong growth and guidance improvements. We remain bullish given the undervaluation, trading at roughly 4x its 2026 EBITDA estimates while growing 50–100% year over year.

BSD Analysis:
Mindset Value takes a deeply fundamental and opportunistic view on Vireo, emphasizing its positioning as one of the best risk-reward setups in U.S. cannabis. The Minnesota adult-use launch provides near-term EBITDA expansion and validates the company’s vertically integrated model. The Schwazze debt acquisition adds optionality for asset consolidation at attractive valuations. Despite volatility in OTC markets, Vireo’s forward EV/EBITDA multiple near 4x appears substantially below peers trading at 7–9x. With projected EBITDA doubling within 18 months and catalysts from state-level reform and cross-market synergies, Vireo is positioned for re-rating as liquidity and scale improve.

Pitch Summary:
Carrier’s shares declined despite meeting earnings expectations, as investors focused on weakness in U.S. residential HVAC orders and unfavorable product mix. CEO David Gitlin warned of lower Q3 volume, citing a 30% reduction in July industry volumes and similar declines expected through September. Elevated rates and dealer destocking pressured demand.

BSD Analysis:
Carrier’s recent share-price weakness looks more cyclical than structural, driven largely by a sharp downturn in U.S. residential HVAC orders and an unfavorable mix shift rather than any erosion in the company’s competitive position. Management flagged a roughly thirty percent industry volume drop in July with similar declines expected through September, reflecting dealer destocking and the drag from elevated interest rates on housing-related demand. These headwinds are painful in the short term, but they are classic late-cycle dynamics that tend to reverse as housing stabilizes and inventories normalize. Carrier still controls valuable HVAC franchises with strong pricing power, entrenched distribution, and large installed bases that generate recurring service and replacement revenue. The company is also leveraged to secular tailwinds in energy efficiency and electrification, both of which will require higher-value HVAC systems over time. As mix normalizes and rate pressure eases, Carrier’s earnings should rebound meaningfully, aided by ongoing cost initiatives and portfolio simplification. For investors with a medium-term lens, the current reset provides an opportunity to buy a high-quality HVAC leader at a discounted valuation relative to its long-term cash-flow potential.

Pitch Summary:
GE Aerospace delivered strong quarterly results with more than 20% growth across key metrics—orders, revenue, operating profit, and EPS. The Commercial Engines & Services segment saw a 29% rise in service revenue and a 45% increase in engine units, supported by backlog strength and improving supply chains. The company raised FY2025 guidance and long-term targets.

BSD Analysis:
GE Aerospace continues to demonstrate why it is emerging as one of the strongest pure-play aerospace franchises, posting more than twenty percent growth across orders, revenue, operating profit, and EPS in its latest quarter. The commercial engines and services division remains the core engine of value, with service revenue up nearly thirty percent and engine unit deliveries climbing forty-five percent as supply-chain conditions finally improve. A record backlog provides multi-year visibility into both new engine sales and higher-margin aftermarket work, giving GE one of the clearest earnings runways in the industrial space. The company’s raised 2025 guidance and upgraded long-term targets reinforce that the current momentum is not a one-off bounce from pandemic lows but rather a sustained reacceleration. GE is also benefiting from the structural shift toward next-generation, fuel-efficient engines, which tend to carry richer service economics over the life of the platform. With operating leverage building and cash conversion improving, GE Aerospace is positioned for several years of double-digit profit growth. At current valuation levels, investors are still not fully pricing in the durability of its aftermarket-driven cash flows or the strategic advantage of its large installed base.

Pitch Summary:
Thermo Fisher’s stock climbed 9% following better-than-expected Q2 2025 results, with revenue of $10.85B versus $10.68B consensus and EPS of $5.36/share versus $5.22/share. Organic growth of 2% and reaffirmed long-term guidance reversed poor sentiment and re-rated shares.

BSD Analysis:
Thermo Fisher’s stronger-than-expected Q2 results helped reset sentiment around a stock that had been weighed down by concerns about slowing demand in research and bioproduction. Revenue and EPS both beat consensus, and even modest two percent organic growth was enough to reassure investors that the business is stabilizing after several choppy quarters. The reaffirmed long-term growth framework is particularly important, signaling confidence in the durability of Thermo Fisher’s diversified portfolio across instruments, consumables, diagnostics, and contract manufacturing. The company’s scale and breadth give it a unique competitive advantage: customers rely on Thermo Fisher not for a single product but for end-to-end solutions that embed the company deeply into scientific workflows. This creates recurring revenue streams and high switching costs, both of which underpin resilient cash generation even when individual end markets fluctuate. With sentiment improving and execution back on track, Thermo Fisher looks positioned for a multi-quarter re-rating as investors regain confidence in its long-term compounding profile. The company remains one of the highest-quality platforms in life sciences tools, and the recent pullback appears to have overstated short-term headwinds relative to its structural strengths.

Pitch Summary:
Broadcom reported its third-quarter results on September 4, which exceeded analyst expectations for both revenue and EPS. The highlight of the quarter was the addition of a fourth significant customer for its custom AI accelerator (XPU) products, placing over $10 billion in orders to be shipped in Q3 2026. Continued growth from existing clients and this major new contract position Broadcom for AI revenue growth exceeding 50–60% in 2026. The company’s backlog now stands at $110 billion, with over half from semiconductors.

BSD Analysis:
Broadcom’s leadership in custom AI silicon and networking underpins one of the strongest secular growth profiles in semiconductors. Its $110B backlog validates structural demand, and 50%+ AI-driven sales growth highlights its strategic alignment with hyperscalers’ compute self-sufficiency race. With EBITDA margins approaching 65%, robust FCF generation, and a disciplined capital allocation framework, AVGO remains a key AI infrastructure compounder. At ~22x forward EPS, valuation appears reasonable given the firm’s expanding moat and data center tailwinds.

Pitch Summary:
Spotify has been part of our portfolio for more than seven years, and while it remains a well-managed, founder-led compounder, we reduced the position to reallocate capital to higher-conviction ideas such as Tesla. Spotify has delivered a long-term IRR of roughly 13% since our initial purchase. The company’s competitive advantages remain intact, but we believe much of the anticipated growth and margin expansion is now reflected in its current valuation. Its moat, while stable, is not widening materially.

BSD Analysis:
Spotify’s fundamentals remain solid—strong user growth, rising ARPU, and profitability inflection—but its strategic optionality lags peers with broader ecosystems. While podcasts and advertising offer incremental margin expansion, competition from Apple, YouTube, and TikTok constrains pricing power. The company’s focus on gross margin optimization through automation and reduced content costs will drive modest upside, but it lacks the multi-layered platform dynamics that define higher-conviction compounders. Trading near 25x forward FCF, SPOT appears fairly valued, prompting Rowan Street’s partial exit.

Pitch Summary:
Tesla (TSLA) is our newest position, initiated during a period of widespread pessimism earlier this year when sentiment around the company and its CEO was at rock bottom. Since initiating our position at roughly $235 per share, the stock has appreciated roughly 75% and now represents about 12% of the portfolio. Tesla’s evolution from a car company into a vertically integrated technology and energy platform with multiple reinforcing moats underpins our conviction. Its manufacturing efficiency, vast real-world driving dataset, direct-to-consumer model, and expanding AI and robotics initiatives position Tesla as one of the most formidable businesses globally. The company’s multiple layers of competitive advantage—manufacturing, data, ecosystem, brand, and platform optionality—set the stage for long-term compounding.

BSD Analysis:
Tesla’s recent drawdown created one of the few moments in years when sentiment, narrative, and valuation all disconnected from the company’s long-term competitive position, offering an attractive entry point. While commonly labeled a carmaker, Tesla increasingly resembles a vertically integrated tech-and-energy platform, with advantages that span manufacturing efficiency, proprietary software, data scale, and an ecosystem competitors cannot easily replicate. Its real-world driving dataset remains orders of magnitude larger than peers’, reinforcing its lead in autonomy and enabling continuous improvement in its AI stack. The direct-to-consumer model preserves margins and customer loyalty, while full vertical integration — from batteries to drive units to software — keeps Tesla structurally ahead on cost. Beyond autos, the company’s growing energy-storage and robotics initiatives provide optionality that most traditional analysts still undervalue, each carrying the potential to become meaningful profit engines over time. This layering of manufacturing, data, brand, and ecosystem moats supports a long runway for compounding. Even after the rebound, Tesla remains one of the few global businesses with credible paths to multiple high-return adjacencies, making the long-term case compelling despite near-term volatility.

Pitch Summary:
New Pacific Metals operates three Bolivian projects—Silver Sand, Carangas, and Silverstrike—that could collectively become the world’s second-largest silver production hub after Pan American Silver. With 40%+ IRRs at $30 silver and confirmed volume breakout in September, the setup offers significant upside potential. The company is now in the permitting stage for both flagship deposits.

BSD Analysis:
New Pacific Metals is emerging as one of the most ambitious multi-asset silver developers globally, with its Bolivian portfolio positioning the company for potential Tier-1 scale. Its three core projects—Silver Sand, Carangas, and Silverstrike—are unusually high-quality for a single company and, taken together, could form the world’s second-largest primary silver production hub after Pan American Silver’s operations. Both Silver Sand and Carangas show robust project economics, with after-tax IRRs exceeding 40% at $30/oz silver, reflecting a combination of strong grades, shallow deposits, and favorable strip ratios. The company has now advanced its two flagship assets into the permitting phase, marking an important transition from exploration success to development visibility. While Bolivia carries inherent jurisdictional risk, New Pacific’s partnership structure, local engagement, and the government’s pro-development stance toward large-scale mining help mitigate obstacles. The company has now advanced its two flagship assets into the permitting phase, marking an important transition from exploration success to development visibility. While Bolivia carries inherent jurisdictional risk, New Pacific’s partnership structure, local engagement, and the government’s pro-development stance toward large-scale mining help mitigate obstacles.

Pitch Summary:
Core Scientific operates one of the largest digital mining infrastructures in North America, offering self-mining and HPC hosting services. Post-bankruptcy restructuring has improved its balance sheet, and the stock is forming an inverse head-and-shoulders pattern signaling a breakout to new highs. Institutional investors are showing renewed interest as BTC trends higher.

BSD Analysis:
Core Scientific has re-emerged from bankruptcy as one of the most operationally leveraged plays on both Bitcoin and high-performance computing (HPC) infrastructure in North America. The company now operates one of the continent’s largest digital mining footprints, with a hybrid model—self-mining plus long-duration, power-advantaged hosting—that provides more earnings stability than pure miners. Post-restructuring, Core has materially improved its balance sheet and reduced its cost of capital, giving it the financial flexibility to scale capacity just as industry economics inflect upward. Institutional interest has started to return, driven in part by Bitcoin’s uptrend and in part by Core’s increasing traction in AI-adjacent HPC hosting, which taps into a structurally expanding demand pool that is not tied to the halving cycle. Technically, the stock is carving out a clean inverse head-and-shoulders formation, with volume patterns suggesting accumulation beneath resistance—a setup that often precedes sustained breakouts in high-beta cyclicals. If BTC continues to firm and HPC contracts ramp as expected, Core Scientific could see both multiple expansion and accelerating cash-flow growth.

Pitch Summary:
Bit Digital designs, develops, and operates high-performance computing data centers providing cloud-based GPU processing for AI and digital asset mining. With a market cap near $1B, it offers institutional scalability and multi-segment exposure (mining, staking, and AI compute). After four years of consolidation, the stock is forming an ascending triangle poised for breakout above $6.

BSD Analysis:
Bit Digital has evolved into a hybrid compute provider, operating high-performance data centers that serve both AI workloads and digital asset mining—a combination that gives it more diversified revenue drivers than traditional miners. The company’s GPU cloud division has scaled rapidly, positioning Bit Digital as an emerging institutional supplier of AI compute at a time when hyperscaler demand is outstripping global GPU availability. Its legacy mining and staking operations add additional torque to crypto cycles, but the market is increasingly valuing the AI segment as the core engine of future growth. With a market cap approaching $1B, Bit Digital now has the scale and balance sheet to secure long-term hosting contracts and expand GPU inventory—critical advantages as AI infrastructure becomes more capital intensive. The multi-segment model provides a smoother earnings profile than pure mining peers, while leaving room for substantial upside if Bitcoin strengthens or GPU utilization rates continue to tighten. Technically, the stock’s four-year consolidation has resolved into a well-defined ascending triangle, with rising lows and contracting supply beneath the $6 resistance zone. The pattern suggests institutional accumulation and a high-probability breakout setup should fundamental catalysts align.

Pitch Summary:
Canaan is a technology company specializing in high-performance computing chips and systems for Bitcoin mining. The stock exhibits one of the best technical setups within the Bitcoin Miners ETF (WGMI): a rectangle base pattern with potential breakout above the 50- and 200-day moving averages in a bull quiet regime. Despite negative margins, momentum traders view it as a high-beta play on Bitcoin’s next leg higher, particularly if BTC exceeds $125,000.

BSD Analysis:
Canaan remains one of the purest leveraged plays on Bitcoin’s upside because its business model—selling ASIC mining rigs—typically experiences explosive revenue acceleration when BTC enters a strong uptrend. Even though the company currently operates with negative margins, traders view this cyclicality as a feature rather than a flaw: when Bitcoin breaks to new highs, hardware demand often surges well before profitability normalizes. This makes Canaan a high-beta instrument for momentum-oriented investors who are positioning for a potential parabolic phase if BTC surpasses ~$125,000. From a technical perspective, Canaan shows one of the strongest setups within the Bitcoin Miners ETF (WGMI). The stock has spent months forming a tight rectangle base, compressing volatility into a classic “bull quiet” regime that often precedes trend resumption. Price is now wedging between the 50- and 200-day moving averages, with declining supply suggesting accumulation beneath resistance. A clean breakout above both moving averages would trigger a multi-month reversal pattern and likely attract quant- and momentum-driven flows. While fundamentally speculative, the combination of high operating leverage to a rising Bitcoin price and a textbook basing structure gives Canaan meaningful upside optionality in the next leg of the crypto cycle.

Pitch Summary:
Ziff Davis, Inc. operates through two primary segments: Business Cloud Services and Digital Media. The management team has a demonstrated track record of disciplined capital allocation and value creation, particularly through strategic, accretive acquisitions. The stock rebounded following the company’s first return to organic growth in nearly four years, marking a clear inflection point and helping to restore investor confidence. EBITDA margin expansion reflected a healthy balance between profitability and reinvestment. Additionally, enhanced segment-level disclosure has improved transparency, enabling more robust sum-of-the-parts analysis and allowing the market to better assess intrinsic value. We believe sustained organic growth, combined with continued disciplined M&A execution, provides a path for further multiple expansion. Given the company’s attractive valuation and improving fundamentals, we maintained our position during the period.

BSD Analysis:
Ziff Davis is emerging from a multi-year trough with clearer operating momentum and improving visibility across both its Business Cloud Services and Digital Media segments. The company’s return to organic growth marks a meaningful shift, suggesting that the portfolio rationalization and integration efforts of recent years are beginning to bear fruit. Margin expansion—particularly within the cloud services portfolio—highlights improved operating discipline and a more balanced allocation between reinvestment and profitability. The firm remains a skilled capital allocator, with a long history of acquiring niche, high-cash-flow digital assets at attractive multiples and integrating them within scalable operating platforms. Recent enhancements to segment-level reporting give investors a cleaner view of intrinsic value and clarify where incremental capital can generate the highest returns. Despite the recent rebound, shares still trade at a discount to peers on EBITDA and free-cash-flow multiples, leaving room for re-rating as organic growth stabilizes and M&A activity resumes. Overall, Ziff Davis offers an appealing combination of improving fundamentals, strong free-cash-flow generation, and a management team with a demonstrable ability to compound value through disciplined acquisitions.