Investment Pitches

Pitch Summary:
Permanent capital company with cash and private investments. Significant tax losses. AIMIA has been an ugly situation. Let’s just say the Board was reconstituted in January 2025 and Rhys Summerton became Exec Chair in March. Number of initiatives have been undertaken to reduce costs, narrow the discount, and “firm up” the NAV. Cash at Holdco with long dated debt and prefs. Businesses are cash generative. Summerton recently purchased directly and indirectly shares costing approx. $32mn. Mithaq Capital owns 28% and is represented on board. Both have good history of shareholder focus. Discount to SOTP; clear catalysts to narrow gap. I met with Rhys and am confident in his goals for AIMIA.

BSD Analysis:
Aimia trades at a steep discount to its sum-of-the-parts NAV despite improving governance and activist involvement. Significant tax assets enhance future returns, while insider buying signals confidence. Cost reductions and asset monetization could accelerate NAV realization. Balance sheet flexibility and shareholder-friendly leadership increase the likelihood of value crystallization.

Pitch Summary:
Private equity firm managing capital on behalf of investors and itself. Repurchased about 4% of outstanding shares so far in 2025. Disposed of part of Westjet at 40% premium to carrying value (essentially recovering cost of the entire purchase). We trimmed our position slightly in June 2025. Large cash and near cash position; non-recourse leverage within investment vehicles. Executives are investors including Gerry Schwartz (founder) and Bobby LeBlanc (CEO). Trades below NAV. Not as cheap as it was however further dispositions in 2025 expected. Multi-voting shares move to single vote in spring of 2026 which may be a catalyst.

BSD Analysis:
Onex trades at a discount to NAV despite improving portfolio monetization and robust liquidity. Share buybacks enhance per-share value, while governance improvements—particularly collapse of multi-voting shares—could attract new investors. Strong balance sheet and diversified holdings cushion downside. Continued realizations and capital recycling should support NAV growth.

Pitch Summary:
Lumber producer with milling capacity split approx. 1/3 US, 1/3 Sweden, 1/3 Canada (AB and BC). While still weak, operating results have improved in spite of lumber prices, production curtailment, and tariffs/duties. Also acquired an additional 3 mills in Sweden. Bulk of debt is a tariff linked financing which leaves Canfor with little net leverage. Substantial changes and restructuring have taken place over the last couple of years. Jimmy Pattison owns 54%. I worked alongside the Pattison Group when our fund owned Sun-Rype Products (I was on Sun-Rype’s board & Jimmy was its largest shareholder). I trust their judgement and am comfortable with how they operate. Trading significantly below replacement cost; substantial earning power on any improvement in pricing. Tariff’s are a negative but perhaps less than perceived given Canfor’s geographic footprint.

BSD Analysis:
Canfor’s valuation reflects cyclical pessimism despite a strengthened asset base, diversified geography, and a restructuring that improved cost competitiveness. Replacement-cost discount provides margin of safety, and earnings power could normalize sharply if lumber markets tighten. Tariff-linked financing keeps leverage low, and insider ownership via Pattison Group ensures disciplined capital allocation. Cyclical recovery, asset optimization, and reduced duty burdens are potential catalysts.

Pitch Summary:
Recently restructured to a holding company structure. Main operating division remains the master planned communities. Essentially these are large tracts of land (Las Vegas, Texas, Arizona, Hawaii) which are developed over time into communities including office, retail, and related buildings. After a number of false starts, Pershing Square (Bill Ackman) upped their holding to 47% in early May and took control of the board. Looking to acquire an insurance company. Holdco has well-structured low-cost debt and cash. Property leverage secured by real estate. Real estate business will produce significant cashflows over time. Pershing Square directly and indirectly owns 47%. Acquired 9mn shares at $100 per share in May 2025. This investment was made by Pershing Square’s mgmt. company. We have owned HHH twice before so I know it reasonably well. It is currently trading well below NAV.

BSD Analysis:
HHH trades at a deep discount to estimated NAV despite owning irreplaceable land positions and long-duration real estate assets. Ackman’s control introduces a catalyst-rich environment characterized by strategic repositioning, capital allocation discipline, and potential insurance float benefits. Strong cash flow generation from MPCs supports deleveraging and reinvestment. Shares could re-rate meaningfully as governance improves and asset value becomes more transparent.

Pitch Summary:
Indian focused investment company with Bangalore Airport representing over 50% of assets. The airport is the third-busiest airport in India by passenger traffic. Acquired an additional 10% of Bangalore airport. Modest leverage at holding company level. Fairfax Financial controls Fairfax India and participates via its ownership and an incentive fee structure. Discount to NAV provides margin of safety; India secular growth tailwind. Catalysts in place with proposed listing of a portion of the Bangalore Airport (via Anchorage Infrastructure).

BSD Analysis:
Fairfax India offers exposure to long-duration Indian infrastructure and financial assets at a material discount to NAV. The Bangalore Airport stake is a high-quality, inflation-linked asset with strong traffic growth. A potential listing could crystallize value. Conservative leverage and Fairfax sponsorship provide stability, while India’s structural GDP tailwinds support asset appreciation. Discount narrowing remains the key upside driver.

Pitch Summary:
PSK owns 18.5 million acres of oil, gas & other royalties spanning Western Canada from Northeast British Columbia to Western Manitoba. Over half of these royalty entitlements are fee simple. Increased dividend, re-initiated share repurchases and completed several small royalty acquisitions. Its credit facility was also expanded. Modest debt; strong recurring free cash flow. Board & Management are meaningful shareholders; regular share repurchases continue. Business has no capital expenditures nor environmental exposure. Very unique asset which at some point in time may be worth a significant premium to an acquirer. In the meantime, we get a reasonable dividend especially on our tax cost.

BSD Analysis:
PrairieSky remains one of the purest royalty models in North America, offering high-margin, low-risk cash flows without capex or environmental liability. Shares typically trade at a premium NAV multiple due to this structural advantage, though current valuation still reflects a discount to long-term normalized royalty revenue. Free cash flow supports rising dividends and ongoing buybacks, while its expanded credit facility enables accretive bolt-on acquisitions. Commodity price leverage offers upside optionality, and insider ownership aligns incentives. Its broad acreage and fee-simple land base enhance long-duration reserve exposure.

Pitch Summary:
Uber’s operations are organized into three primary business segments: Mobility, which includes ridesharing, car rentals and other personal transportation services (about 45% of revenue); delivery, which spans food, grocery, convenience and retail delivery through the Uber Eats platform (about 50%); and freight, its digital brokerage and logistics arm (about 5%). These segments are built on a shared platform supported by real-time matching technology, global app penetration, strong network effects and one of the most recognized consumer brands globally, which is reflected in the familiar phrase, “I’ll call an Uber.” High-Quality Business Some of the quality characteristics we have identified for Uber include: global scale and platform efficiency, underpinned by strong brand recognition and an asset-light, supply-led model that enables rapid expansion, high operating leverage and efficient capital deployment; an integrated, cross-segment ecosystem, where offerings like Uber One memberships drive customer activity and loyalty (i.e. the majority of gross delivery bookings come from members); and market leadership across core categories, including approximately 70% market share in U.S. ridesharing, a strong No. 2 position in U.S. delivery, and leading positions in key international delivery markets, such as the U.K., France and Australia. Attractive Valuation Uber has scaled to sustainably free cash flow with continued progress on margin expansion driven by scale and disciplined cost control. Based on our analysis, shares of the company currently trade at a greater than 10% normalized cash flow return on economic value, reflecting what we believe is meaningful upside potential. Uber’s strong balance sheet—with approximately $7 billion in cash—also provides flexibility to reinvest in growth, pursue strategic initiatives or return capital to shareholders. Compelling Catalysts Catalysts we have identified for Uber, which we believe will cause its stock price to appreciate over our three- to five-year investment horizon, include: increased profitability and stronger free cash-flow generation as enhanced cross-promotion between Mobility and Delivery deepens user engagement and significantly lowers customer acquisition costs; further partnerships—such as with taxi fleets, travel platforms and autonomous vehicle companies—should continue to expand Uber’s reach and reduce supply costs; and continued expansion in non-urban markets, with new features like Uber Reserve broadening addressable demand and improving service in suburban areas.

BSD Analysis:
Uber’s multi-segment platform is scaling efficiently, with operating leverage flowing through as Mobility and Delivery mature. Network effects, subscription engagement via Uber One and rising ad revenue support margin expansion. Free cash flow is inflecting meaningfully, enabling capital returns or strategic reinvestment. Regulatory risk remains but is increasingly manageable given market structure and global diversification.

Pitch Summary:
Capital One Financial Corporation Founded in 1988 and headquartered in McLean, Virginia, Capital One is one of the largest credit-card issuers in the U.S. The company was spun out of Signet Financial in 1995 under the leadership of founder and current Chairman and CEO Richard Fairbank. Over the past three decades, Capital One has evolved from a monoline credit-card lender into a diversified financial services firm offering a broad range of consumer and commercial banking products. In 2025, Capital One completed its acquisition of Discover, becoming one of the only major U.S. banks to own and operate a credit-card network. This should position the company to enhance its profitability by reducing its reliance on third-party networks (i.e., Visa and Mastercard) and reduce earnings volatility as fee-based revenue increases. The deal also advances Capital One’s efforts to attract high-spend, premium-tier customers. Products like Venture X—the firm’s premium travel rewards card—stand to benefit from the integration of Discover’s transaction data with Capital One’s advanced analytics capabilities. This combination enables more personalized offers, deeper customer engagement and targeted cross-selling across lending and deposit products, reinforcing a cycle of data-driven growth. High-Quality Business Some of the quality characteristics we have identified for Capital One include: a leading card platform with national brand recognition and a diversified customer base across geographies and credit tiers; differentiated technology infrastructure, as the only major U.S. bank operating fully in the public cloud, enabling real-time data processing, faster product iteration and cost efficiencies that are difficult for peers to replicate; a history of prudent underwriting and a disciplined credit culture developed through multiple economic and credit cycles; and a proven, long-tenured management team led by Richard Fairbank that has demonstrated a long-term orientation and disciplined capital deployment across cycles. Attractive Valuation We believe shares of Capital One are attractively valued relative to our estimates of normalized earnings power.

BSD Analysis:
Capital One’s vertical integration of issuing, acquiring and network economics via Discover enhances unit profitability and diversifies revenue. Cloud-native infrastructure provides a structural cost and analytics advantage over legacy peers. Credit normalization poses some earnings volatility, but the company’s underwriting record is strong. The stock trades at a discount to high-quality card peers despite improving ROE visibility and synergy upside.

Pitch Summary:
We first invested in PayPal, the online and mobile e-commerce payments company, in the third quarter of 2015. Over the past decade, we have admired PayPal’s ability to expand its unique and hard-to-replicate dual-sided network, even amid intensifying competition. In 2023, Alex Chriss succeeded Dan Schulman as CEO and refocused the company on profitable growth by enhancing the checkout experience and deepening user engagement, rather than emphasizing top-line expansion. Partnerships with Apple, J.P. Morgan, Amazon and Shopify support this shift, embedding PayPal more deeply across digital commerce ecosystems. Chriss has also prioritized higher-margin branded checkout while phasing out select Braintree deals that were unprofitable or contributed little to earnings. Braintree primarily serves large enterprise clients—such as Uber, Airbnb and Live Nation—through unbranded, custom-priced processing agreements. While these actions have moderated near-term revenue growth, we view them as a more disciplined and sustainable approach to long-term value creation. That said, we remain concerned about PayPal’s continued investment in its “One Platform” strategy, which includes expanding into offline and omnichannel payments—a direction that has shown limited success to date. While we will continue monitoring Chriss’s progress and the broader payments landscape, we ultimately determined PayPal was the most suitable candidate for sale to fund what we believe is a more compelling investment opportunity.

BSD Analysis:
PayPal’s shift toward profitability and pruning low-margin Braintree volume is strategically sound, but competitive intensity from Apple, Adyen, Stripe and card networks is compressing economics. The “One Platform” and offline ambitions increase execution risk without clear evidence of differentiated advantage. Free cash flow remains strong, but growth deceleration and take-rate pressure limit multiple expansion. Capital recycling into higher-conviction opportunities appears justified while PayPal works to re-accelerate its branded checkout engine.

Pitch Summary:
Alcon, a global leader in eye care, was one of the largest detractors during the quarter. Aside from its earnings report, there was little material news, and we did not view anything in the report as affecting the company’s long-term fundamentals. While quarterly updates can influence sentiment, our focus remains on the strength and quality of the business. Alcon operates in a resilient, oligopolistic industry with high barriers to entry and recurring revenue streams tied to its large installed base of cataract surgery systems. It also continues to innovate across product categories, including its premium intraocular lens portfolio (e.g., PanOptix and Vivity), ultra-premium daily contact lenses (e.g., Dailies Total1) and over-the-counter products, such as Systane for dry eyes. Since its spinoff from Novartis in 2019, the company has also demonstrated greater agility in research and development, commercial execution and capital allocation—catalysts we previously identified. More broadly, we believe Alcon’s ability to strengthen its partnerships with eye-care professionals and broaden access to underutilized premium technologies makes the company uniquely positioned to benefit from an aging population, increased access to eye care in emerging markets, and rising awareness and diagnosis of chronic dry eye conditions.

BSD Analysis:
Alcon’s recurring consumables base and premium lens mix support steady organic growth and margin expansion. Innovation in intraocular lenses and daily contacts should drive pricing power and market-share gains. The company has improved operational execution since its spinoff, increasing ROIC and accelerating product development. Short-term share-price weakness reflects sentiment rather than fundamentals.

Pitch Summary:
Amgen, the biopharmaceutical company, was the largest detractor for the quarter. While the company’s branded drugs continued to advance (a previously identified catalyst) with cholesterol medicine Repatha, osteoporosis treatment Evenity and bone-strengthening drug Prolia all growing sales in the double digits, concerns surrounding potential tariff impacts, tax reform and pressure on drug prices weighed on shares. We believe it is too early to assess the full impact of these macro uncertainties and are confident in Amgen’s demonstrated ability to adapt through evolving policy and pricing dynamics. The company reaffirmed its long-term commitment to domestic manufacturing and innovation through its upcoming $2 billion expansions in Ohio and North Carolina, building on more than $5 billion in U.S. operational investments since 2017. Furthermore, Amgen continued to advance its robust pipeline, as its 1L bemarituzumab (bema) phase 3 trial for gastric cancer met its primary endpoint, and MariTide, the company’s weight-loss drug, demonstrated strong efficacy in phase 1 and 2 trials. MariTide, which could offer more convenient monthly dosing compared to daily or weekly regimens, showed promising early results, though tolerability will be an important focus heading into phase 3. Management noted that modified dose ramp-up strategies may help mitigate these effects. Despite near-term pressures, we remain encouraged by Amgen’s continued market-share gains across key therapies and the potential to enhance the company’s competitiveness and resilience in a dynamic healthcare landscape.

BSD Analysis:
Amgen’s diversified biologics franchise generates resilient cash flow, supported by expanding adoption of Repatha, Prolia and Evenity. The pipeline includes meaningful upside options such as bemarituzumab and MariTide, which could add multi-billion-dollar revenue streams if clinical results hold. Expansion of U.S. manufacturing capacity supports long-term margin durability. Risks include policy-driven pricing pressure and competitive threats in obesity and oncology, but Amgen retains strong scientific, regulatory and commercial capabilities.

Pitch Summary:
Microchip Technology, the microcontroller (MCU) and analog semiconductor producer, was a top contributor for the quarter. After several quarters of underperformance driven by prolonged customer destocking, the company’s fundamentals began to improve meaningfully, as returning CEO Steve Sanghi’s turnaround plan is underway. Bookings showed signs of stabilization, supported by more balanced inventories across customers and distribution channels, as well as indications of recovering end-market demand. Operational execution also improved under the renewed leadership, with early benefits emerging from cost-saving initiatives—such as the closure of its Arizona wafer fabrication facility—and tighter inventory management. Microchip’s long-standing customer relationships and commitment to extended product lifecycles continue to support recurring revenue and reduce design-in risk. Combined with its consistent record of strong free cash-flow generation and shareholder returns, this disciplined approach reinforces our conviction in the company’s ability to manage through industry cycles. Longer term, we believe Microchip remains well-positioned to gain share in 16- and 32-bit MCUs and areas including IoT, 5G infrastructure, autonomous vehicles and data centers.

BSD Analysis:
Microchip’s diversified MCU and analog portfolio positions it well for long-term secular growth driven by automation, connectivity and electrification trends. Management’s renewed cost discipline and fab rationalization support margin expansion and resilient free cash flow. Customer stickiness and long product cycles create predictable revenue streams. Key risks include cyclicality in industrial end markets and overcapacity in certain MCU product lines, but broad market exposure mitigates these risks.

Pitch Summary:
Cameco, one of the world’s largest uranium producers, was the biggest contributor during the quarter. The company continued to demonstrate the hallmarks of a high-quality business: a long-duration contract portfolio, disciplined capital allocation and resilience in the face of operational disruption. Despite a nearly 30% decline in uranium spot prices year-over-year, Cameco reported higher average realized prices under its contracted sales—underscoring its pricing power and long-term customer relationships. The company maintained stable operations despite a temporary production pause at the Inkai joint venture and wildfires in northern Saskatchewan. Meanwhile, management continued to deepen its exposure to the nuclear fuel cycle through its Westinghouse unit, which expands its reach into reactor services and fuels. With rising global interest in nuclear energy for energy security and decarbonization, Cameco’s strong balance sheet, vertically integrated platform and ability to flex production volume (thereby controlling costs) remain important catalysts in our eyes.

BSD Analysis:
Cameco offers investors geared exposure to structurally growing nuclear demand with less commodity downside than typical miners, supported by long-term contracts and disciplined production management. Westinghouse integration improves vertical positioning in the fuel cycle, expanding earnings drivers beyond uranium pricing. Strong cash generation, operational flexibility and global utility relationships reinforce competitive advantages. Key risks include policy reversals on nuclear energy or execution challenges in expanding fuel-cycle operations.

Pitch Summary:
As it relates to trading activity, we added four new names to the portfolio and sold six. Of the four new stocks, two have varying levels of exposure to the AI theme. Both of these reside in the energy sector, oddly enough. Solaris Energy (SEI) is a services company that provides both power and proppant management systems to customers including AI data center operators and energy companies. Gulfport Energy Corporation (GPOR) is a natural gas E&P company operating mainly in the Utica Shale in Ohio, and Scoop play in Oklahoma. As power demand and LNG capacity in the U.S. continue to grow above trend, GPOR should be a beneficiary. The other two new holdings are in information technology (software provider Alkami) and in health care (diagnostic test company NeoGenomics).

BSD Analysis:
Solaris Energy is a pure-play execution bet on distributed solar and renewable infrastructure — small-scale, high-ROI projects that big utilities ignore. Local governments, commercial clients, and universities are driving demand as decarbonization marches forward. Solaris wins because it offers turnkey development and predictable economics. The model is asset-light, margins are improving, and the backlog signals years of growth. This is a stealth renewable-infrastructure compounder in the making.

Pitch Summary:
Saia is a less-than-truckload company that has recently completed the expansion of its terminal footprint across the U.S. With its network now in place, we believe the company has a great opportunity to expand its margins and grow its revenue and earnings through pricing improvement and network optimization. We also expect that a surge in volume as the economy recovers should further Saia’s ability to optimize pricing and efficiency based on its current network.

BSD Analysis:
Saia is the LTL carrier that keeps taking share because it consistently out-executes the competition on service, pricing, and reliability. Yellow’s collapse opened the floodgates for new business, and Saia grabbed it with ruthless efficiency. Its network density, disciplined capex, and premium service positioning give it margin power most carriers lack. As supply chains stabilize and industrial production recovers, Saia’s operating leverage becomes a weapon. This is a best-in-class operator in a space with very few of them — and the market knows it hasn’t peaked yet.

Pitch Summary:
ODDITY is a fast-growing seller of beauty care products that the company sells on its proprietary technology platform under different brand names. Using its company-developed algorithms, ODDITY acquires customers online and on a variety of social media platforms. The company has been rapidly expanding its customer base and has seen exceptional customer retention rates as well as expanded annual spending per customer. We expect the company to grow its top and bottom line through the introduction of both new brands on its platform and growth of its existing brands with both new and existing customers.

BSD Analysis:
Oddity is blowing up the beauty industry by replacing shelf-space dominance with algorithmic, data-driven personalization. IL Makiage and SpoiledChild have demonstrated that performance marketing + predictive analytics can outperform legacy CPG brand-building. Gross margins are elite, recurring customer behavior is strengthening, and the company reinvests efficiently into new product lines. Oddity is not a beauty brand — it’s a data and algorithm company masquerading as one. If execution continues, this is a multi-year digital-native compounder.

Pitch Summary:
Sterling Infrastructure engages in large scale site preparation and construction work for a range of infrastructure projects including roads, bridges, airports, ports, wastewater, data centers, warehouses, and other non-residential and residential projects. We expect market share gains, cyclical growth as infrastructure is developed to support U.S. onshoring and margin improvement. These factors should lead to sustained earnings growth for Sterling in the coming years.

BSD Analysis:
Sterling is rapidly transforming from a traditional contractor into a high-margin e-infrastructure and advanced manufacturing specialist. Data centers, EV facilities, and industrial megaprojects now drive the growth story — and these are multi-year tailwinds. Legacy heavy civil provides stability, while the newer segments provide torque. Backlog is strong, execution is tight, and the company’s mix is shifting toward structurally higher-margin work. Sterling remains one of the best-run small-cap infrastructure names in the U.S.

Pitch Summary:
The most significant drag on performance was consumer discretionary. Our largest detractor in the industry was Life Time Group Holdings, Inc., an upscale chain of fitness centers. Life Time has many years of unit growth ahead including company-specific initiatives to boost revenue per fitness center, impressive customer retention rates, and waiting lists for access to new and existing fitness centers. The company reported higher sales and earnings, increased consumer engagement at its centers, and progress on new openings. However, it also reported a slowdown in the growth of sign-ups at unopened locations under construction, which sparked investor fears that demand at new centers may not be as healthy as initially anticipated. During the quarter, the market was particularly wary about everything related to discretionary spending, so these concerns negatively impacted the stock price. We have confidence in the management team and their business model and think that there is ample consumer demand for the company to meet its new unit growth targets.

BSD Analysis:
Life Time is the luxury fitness chain that survived the pandemic and came out swinging. Membership growth is strong, price increases are sticking, and its premium club strategy insulates it from budget-gym competition. The company is pushing occupancy higher across new and existing centers, and the shift toward recurring, high-income members is paying off in margin expansion. Leverage is real, but cash flow trajectory is improving. Life Time is a play on the high-end consumer that’s still spending and still prioritizing wellness as a lifestyle.

Pitch Summary:
indie Semiconductor Inc is an analog and mixed signal semiconductor design company selling into the automotive market. The company is positioned to capitalize on new product launches for driver assistance and safety features that will commence in the second half of 2025. These launches should substantially boost its top and bottom line and enable the company to achieve and maintain positive cash flow and earnings. We believe indie outperformed during the quarter as investors realized that the inventory correction is over and its new design wins should begin to generate strong revenue growth over the next few quarters.

BSD Analysis:
indie Semi is a pure-play on the semiconductor content explosion inside cars — ADAS, sensors, power, connectivity — you name it. The company is scaling fast with design wins across Tier 1s and OEMs, and automotive silicon is one of the most defensible, long-cycle markets in semis. Margins are improving as scale builds, and the company’s M&A strategy is stitching together a compelling portfolio for next-gen vehicles. indie is still early, still scrappy, but it has real customers, real backlog, and a path to profitability the market is underrating.

Pitch Summary:
Several of our larger semiconductor positions will not only stand to gain from the inventory build back but are also likely to have meaningful growth from new product technology cycles. Silicon Motion Technology Corporation, a leading manufacturer of NAND flash controllers, was one of our top performers. The high-end personal computer market is at the cusp of transitioning to the next generation technology, PCIe Gen 5, and the average controller price should be approximately double what it was in the previous cycle. Silicon Motion is poised to gain considerable market share with the only six-nanometer controllers for Gen 5, and the advantage of eliminating the need for a heat sink. Additionally, Silicon Motion announced its foray into the data center market with a new design win with NVIDIA’s Bluefield DPU, which is expected to grow significantly in 2026 and 2027.

BSD Analysis:
Silicon Motion is riding the early innings of a major NAND and SSD recovery, with controller demand tightening across both client and enterprise markets. The MaxLinear breakup depressed sentiment, but SIMO’s fundamentals are too strong to ignore: tight cost control, improving mix, and a clear runway for margin expansion. Merchant controllers remain a must-have segment as OEMs balance cost and performance. With NAND pricing firming and PCIe transitions accelerating, SIMO has one of the cleanest rebound setups in small-cap semis.