Investment Pitches

Pitch Summary:
Another example is Phinia Inc. (PHIN), an auto parts company spun off from Borg Warner in 2023 that makes fuel systems for vehicle manufacturers and the after­market. In our opinion, the market has been overly pessimistic on PHIN’s outlook in the aftermath of President Trump’s ‘Liberation Day’ announcements on tariffs, and large insider purchases by the company’s CEO and two directors helped confirm our view. We believe PHIN has a variety of ways to win, especially relative to other companies in the auto parts category. In its legacy auto OEM business, PHIN is the third player in a three-company oligopoly that collectively controls roughly 80%-90% market share. The second-biggest player in this group has deemphasized this category since COVID-19, resulting in 4%-5% market share gains for PHIN. We believe this trend is likely to continue, and PHIN could control around 20% of the market by 2030, up from the mid­-teens today. The company also has considerable exposure to the relatively stable after-market auto parts end-market, which accounts for approximately 40% of the company’s revenues and close to half of its operating profits. We believe Phinia’s after-market business could grow at a mid-single digit percentage CAGR with less cyclicality, as it is based on replacement of critical engine components. Additionally, PHIN has multiple revenue growth opportunities in under-penetrated end-markets such as aerospace, off­-highway vehicles and hybrid vehicles that were overlooked as part of the much larger Borg Warner entity. Following PHIN’s spin-off, management has executed on cost savings initiatives to improve margins and used free cash flow to consistently buyback stock and de-lever the balance sheet. PHIN is hitting on all three of the main capital allocation criteria we look for, which gives us even more confidence. Yet the stock is trading at a modest 6x EV/EBITDA. We believe PHIN is being valued by the market as an OEM auto parts manufacturer even though that exposure is less than 30% of revenue. As PHIN’s after­-market and industrial end-market exposures continue to grow, we think PHIN should receive a multiple closer to after-market auto parts and industrial companies that trade in the 8-12x EV/EBITDA range.

BSD Analysis:
The thesis is market-share gains in an oligopoly, a resilient 40% aftermarket mix, and self-help (cost saves, deleveraging, buybacks) against tariff noise. At ~6x EV/EBITDA vs. 8–12x comps, rerating potential is meaningful as mix tilts to aftermarket/industrial. Watch free-cash-flow conversion and OEM volume sensitivity; insider buying and debt paydown are supportive signals. Catalysts: continued share wins, margin expansion, and capital returns.

Pitch Summary:
These are companies like Brady Corp. (BRC), a leading manufacturer of ID solutions and workplace safety products. In our view, the company is allocating capital wisely: They are actively buying back stock, consistently increasing dividends, and pursuing tuck-in acquisitions that complement their core business — all while maintaining low leverage. The company’s core business is identification solutions for commercial products, allowing clients to trace and track parts. Brady’s niche is printers and related consumables such as labels for rugged industrial markets. This has been a year of restructuring and cost cutting for Brady, which is part of the company’s self-help story. Recently, management has called out strong growth in Aerospace and Data Center end markets, with the Data Center strength focused on BRC’s wire marking business. We believe the company will begin to reap the benefits of these efforts starting next year, and in its most recent quarterly earnings announcement, Brady reported 2026 guidance that was above expectations. Still, the stock trades at a reasonable valuation. Our current price target for BRC would represent 18x our 2026 EPS estimate.

BSD Analysis:
Brady’s mix of high-margin printers/consumables and disciplined capital allocation (buybacks/dividends/tuck-ins) supports steady FCF compounding. Restructuring and end-market tailwinds (aerospace, data centers) should lift margins in 2026, with upside to EPS if wire-marking demand persists. Balance sheet leverage is low, giving room for incremental M&A. Shares typically trade on mid-teens to high-teens P/E; execution on cost-outs and growth could justify the upper end.

Pitch Summary:
Lastly, a.k.a. Brands (AKA) stock price remains stagnant despite tremendous sales growth. The company posted another solid quarter while moving most of their supply chain out of China in the face of new tariffs. Their valuation seems far too low and management continues to outperform their targets. Both the board members and CEO have incentives to increase their stock price from the current $10 level to over $100, the kind of alignment you love to see. Volume on the stock remains very limited, but their strong execution can only go so long before catching some attention.

BSD Analysis:
AKA is fighting brutal e-commerce headwinds — rising CAC, heavy discounting, and weak discretionary spend — but the company is aggressively restructuring to preserve cash and narrow losses. Brand fatigue is real, yet some banners retain strong customer affinity. The stock prices in near-collapse, which creates upside if even modest execution improves. A beaten-down turnaround with binary characteristics.

Pitch Summary:
While less of a drag on Q3, Magnera Corporation (MAGN) stock price remains stuck in neutral. Their business remains stable in the U.S. and Europe, but tariffs have redirected trade flows and pressured their South American business. Management has been proactive on cost takeouts and capacity reductions across their portfolio, and we expect these efforts to shine through when they report their full year results in the coming months. MAGN closed one of their five South American plants, with more rationalization expected to follow. MAGN debt is termed out until 2029, and we expect signs of their business rebound to appear in the coming year’s results. We are happy with Management’s execution and believe the stock price will eventually follow.

BSD Analysis:
Magnera is building a digital-first real-estate services platform in the Nordics, combining brokerage, asset management, and smart-building tech. Still early, but the model has real operating leverage once scale hits. Market volatility has obscured solid execution and rising recurring revenue. Small-cap liquidity punishes the stock, but fundamentals point upward. A long-term Nordic prop-tech sleeper.

Pitch Summary:
Our biggest detractor in Q3, WW International (WW) is the successor to the old Weight Watchers entity which filed for bankruptcy earlier this year. We have found post-bankruptcy entities to be historically attractive opportunities, but this one has yet to pay off. We remain intrigued by the growth of their clinical business, though the market seems concerned they will not be able to continue their prior growth after the recent FDA curtailment of GLP-1 compounding. Recent partnerships with Eli Lilly and Novo Nordisk give us some confidence, and the company’s repaired balance sheet gives them some time to navigate the rapidly evolving GLP-1 environment. The avenues for weight loss may have increased, but no other business has a better reputation for addressing behavioral changes needed to maintain a healthy lifestyle.

BSD Analysis:
WW is trying to reinvent itself amid the GLP-1 revolution, shifting from calorie-counting legacy to modern weight-health platform. The pivot is messy, but subscription economics are stabilizing and digital engagement is rising. Debt is heavy, but if the GLP-1 integration strategy clicks, WW becomes a sticky behavioral platform rather than a fad diet business. High risk, high optionality.

Pitch Summary:
While our ownership was brief, we are thankful to have owned Genesco (GCO). Their May earnings report disappointed investors and the stock traded below $20, representing less than 5x their expected EBITDA for the year. However, while many footwear companies have floundered navigating the current tariff environment, GCO is growing sales through their revised Journey’s concept. GCO also collected a $59m tax refund in Q2 (20% of their valuation at the time) which solidified their strong financial position. The market eventually recognized the value proposition, and we sold our position for over a 50% gain after just a few months.

BSD Analysis:
Genesco is battling through harsh footwear and apparel trends, but Journeys remains a traffic engine with a fiercely loyal customer base. Cost actions are underway, inventory is cleaner, and the balance sheet isn’t as stressed as investors fear. The stock trades like a failing retailer, yet the business retains real brand equity. Classic deep-value retail optionality.

Pitch Summary:
We initiated a position in Apartment Investment Management Company (AIV) during the third quarter. The opportunity re-surfaced when the company announced the sale of their Boston multi-family apartment assets, initially sending the stock higher before it declined in the following days. While investors seemed dissatisfied with the sale price on the Boston portfolio, we see this as the clearest signal yet that the company will fully liquidate their remaining properties. We expect most of our invested cash to be returned within a few months given the incoming dividend from the Boston sale, proceeds from their Brickell sale (expected by year end), and the expected sale of their remaining apartment complexes. They still own multi-family units generating about $90m of operating income, and numerous in-progress development sites that we estimate to be worth another $6-7/share on top of the announced transactions.

BSD Analysis:
AIV is a complex, deep-value REIT restructuring story after its split with Aimco, with litigation noise overshadowing improving property fundamentals. Leverage is high but manageable, and asset quality is better than the stock implies. The market hates uncertainty — but once this legal fog clears, NAV recovery looks meaningful. Pure contrarian real-estate upside.

Pitch Summary:
United Natural Foods (UNFI) exemplifies our approach to developing edge through misunderstood situations. Despite a cyber-attack that paralyzed their distribution network for over 10% of the most recent quarter, management still exceeded sales guidance — demonstrating exceptional execution under pressure. The cyber event appears mostly covered by insurance and has deepened customer relationships rather than strained them. Management's September 30th guidance for the upcoming year shows continued execution well ahead of Wall Street expectations. With $300m of free cash flow expected from operations in FY26, another $150m from cyber insurance proceeds and asset sales, UNFI trades below 6x EV/EBITDA—a persistent discount to peers.

BSD Analysis:
UNFI is stuck in a tough spot — food inflation, contract pressure, and a bloated cost structure — but operational improvements are finally trickling in. The balance sheet is stretched, yet cash flow is stabilizing and inventory discipline is improving. The market prices UNFI like it’s heading for distress, but the core business is still viable. High risk, but sentiment has overshot the fundamentals.

Pitch Summary:
We purchased FirstService Corp., the North American leader in community management for homeowners and condominium associations with approximately 7% market share and the opportunity for steady tuck-in acquisitions. FSV also has branded property services in areas like fire protection, restoration, roofing, closets, and painting. These are all in expanding, fragmented markets with strong share positions. Due to a long growth runway and proven management, we see strong compounding potential.

BSD Analysis:
FirstService offers a long growth runway via steady acquisitions in fragmented essential property services markets. Recurring HOA management revenues and disciplined M&A provide resilience and compounding potential. At ~25x forward earnings, its asset-light model and defensive cash flow justify premium valuation; growth upside from margin expansion and cross-selling synergies.

Pitch Summary:
Peoplein delivered resilient results despite weak employment volumes. Revenue fell 6%, but cash generation remained strong as the firm reduced debt and lowered costs. Management commentary suggests early signs of recovery, with long-term growth supported by infrastructure and defense projects tied to the 2032 Olympics. Forager highlighted the company’s strong balance sheet and attractive valuation (~16% FCF yield).

BSD Analysis:
Peoplein’s disciplined cost control and balance sheet repair create a solid foundation for recovery. With macro catalysts in infrastructure spending and defense, the company could re-rate as visibility improves. labor, recruitment, infrastructure, cash flow, valuation, recovery, growth

Pitch Summary:
Cuscal was the standout performer in the Forager Australian Shares Fund. The company provides mission-critical payments infrastructure for smaller financial institutions and announced the $75 million acquisition of peer Indue. The merger will consolidate the sector and unlock significant synergies, with $15–20 million in expected post-tax cost savings by 2029. Cuscal reported 10% transaction volume growth and 16% EPS growth, exceeding prospectus forecasts. With recurring revenue and long-term contracts, it has become the fund’s largest holding.

BSD Analysis:
Cuscal’s scale advantages and recurring revenue base underpin sustainable double-digit EPS growth. The Indue integration offers structural margin expansion. Trading at ~20x forward earnings, valuation is justified by strong execution, cost synergies, and index inclusion potential.

Pitch Summary:
IDP endured a difficult FY2025 due to government restrictions on international students in Australia and Canada. Revenue fell 15% and net profit 58%. However, the company retains dominant market share, strong brand equity, and pricing power. Government policy is now shifting more supportive, with increased student caps announced in August 2025. Forager believes the worst is over, with volumes and sentiment poised to recover. Structural demand for international education remains intact.

BSD Analysis:
IDP’s market leadership and pricing power support a medium-term earnings recovery. Shares trade at ~15x forward earnings after a 90% drawdown and partial rebound. As student mobility normalizes, operating leverage should drive substantial profit improvement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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