Investment Pitches

Pitch Summary:
Panel beater AMA Group (AMA), long viewed as financially troubled and operationally inconsistent, finally resolved its financial overhang. A capital raise in July 2024 provided the breathing room the business needed, removing balance sheet concerns that plagued the stock for years. Having owned the AMA previously (and unsuccessfully), we watched several equity raises fail to fix AMA’s problems before participating in the final restoration. With liquidity restored, management turned to operations. Improvements in the Capital SMART division, which handles fast-turnaround collision repairs, have been impressive. The AMA Collision Repair segment is also beginning to show margin recovery. With a new CEO now on board, a medium-term plan to restore operating leverage and lift profitability is in full swing. The share price ended the year up 161% on the placement price, contributing 4.4% to Fund returns.

BSD Analysis:
AMA now looks like a more credible turnaround story, with balance sheet repair largely complete and operational metrics in key divisions starting to recover. The Capital SMART unit provides a scalable, higher-margin platform that can drive group profitability if service levels and insurer relationships remain strong. As utilisation improves, operating leverage should support earnings growth from a low base. The dramatic share-price recovery reflects this shift, but the company is still in the early phases of rebuilding investor trust. Execution risk remains elevated given its history, though the new CEO and clearer strategic plan are positives. If management can sustain margin gains and keep capital discipline, further upside is possible.

Pitch Summary:
New Zealand’s stock exchange operator, NZX (NZX:NZX), had a more straightforward year. The exchange saw a strong uplift in trading volumes while keeping costs well under control, no small feat in an inflationary environment. The real momentum, though, came from its adjacent businesses. The funds management arm continues to grow steadily, driven by the long-term shift toward low-cost index solutions and recent acquisitions. Meanwhile, NZX’s wealth technology platform finally broke into positive cash flow territory after years of investment. The business is winning clients and building a valuable revenue and free cash flow stream. The progress is now starting to show in financial results. It was a reasonably large portfolio weighting all year, making the 45% share price increase important.

BSD Analysis:
NZX offers a diversified exchange-based franchise with growing fee streams from asset management and wealth technology layered on top of core trading revenues. Operating leverage is evident as higher volumes and disciplined cost control translate into expanding margins and cash generation. The funds business benefits from secular adoption of low-cost index solutions, while the wealth platform’s move into positive cash flow suggests an inflection in profitability. Although the stock has already rerated on improving results, valuation still appears reasonable given the quality and recurrence of earnings. Key risks include competition in funds management and cyclicality in trading activity, but the adjacencies should help smooth results over time.

Pitch Summary:
EML Payments (EML), the gift and reloadable card provider, had an eventful year. Just weeks after outlining ambitious long-term targets, including a steep uplift in revenue and earnings by financial year 2028, the former managing director departed. It wasn’t the start we’d hoped for. Fortunately, the new managing director, previously on the board as a non-executive, moved quickly to take the reins. The early focus has been on rebuilding the sales team and executing against the existing plan. That urgency is welcome. EML has a valuable core business, much simpler than the mess a few years ago. The ingredients for recovery are now in place but execution is critical from here, and the share price, up 26% for the financial year, has more expectation embedded in it.

BSD Analysis:
EML appears to be in the early stages of a managed turnaround, with governance reset, a simplified business model and renewed focus on sales execution. The core stored-value and payments platform remains strategically valuable, and operating leverage could be significant if management delivers on its medium-term growth aspirations. That said, the recent share-price rebound already embeds some recovery, making execution risk more important to monitor. Balance sheet and regulatory relationships will be key to rebuilding market confidence. If management can translate the new strategic plan into sustained earnings growth, there is scope for further re-rating, but missteps could see volatility return.

Pitch Summary:
Ooh!Media (OML), the outdoor advertising company, has been rebuilding after a tough 2024 marked by market share losses and softening ad demand. The 2025 calendar year has brought signs of improvement. The company secured new locations in Sydney, including high-profile transit sites, which should contribute meaningfully to revenue over time. The first calendar quarter saw revenue up 13% and expectations for that rate to continue into the second quarter. On the cost side, management has held the operating base stable despite inflationary pressures, preserving margins as revenues recover. Outdoor continues to be a structurally growing segment of the advertising mix, and the company is well positioned to benefit from this over the long term. For a relatively stable business, OML’s share price has been volatile, providing numerous opportunities to buy and sell the stock. Combined, Perenti and Ooh!Media added nearly 2.6% to portfolio performance.

BSD Analysis:
Ooh!Media looks like a leveraged play on the structural shift toward digital and outdoor advertising, with recent contract wins in Sydney underpinning medium-term revenue growth. Management’s ability to hold operating costs flat despite inflation suggests further margin upside as top-line momentum improves. The company generates healthy cash flow and can reinvest in premium sites while retaining balance-sheet flexibility. Volatility in the share price appears more sentiment-driven than fundamental, creating trading opportunities for patient investors. Key risks include cyclicality in ad spend and competitive pressure for key locations, but current operating trends indicate the turnaround is gaining traction.

Pitch Summary:
Zeta Global (NASDAQ:ZETA) was also among the Fund’s stronger contributors, adding 1.3% and earning a spot on the top contributors list for the second consecutive year. Revenue grew more than 20%, margins expanded, and the company’s data-driven marketing platform, which blends proprietary and client data across email, SMS, and display ads, continued proving its value to large enterprise customers. In tougher economic periods, Zeta tends to benefit as businesses double down on targeted digital campaigns to retain high-value clients. However, after a strong run, the investment was fully sold by October 2024 as the share price outpaced fundamentals. Soon after, the company was hit with a short report and the stock has since halved to around $15. This decline doesn’t change the view that Zeta has built a valuable platform, but it reinforces the importance of valuation discipline, especially in fast-growing tech. The Fund may own this stock again one day.

BSD Analysis:
Zeta operates at the intersection of first-party data, AI-driven segmentation, and omnichannel marketing, positioning it well as advertisers seek measurable ROI on digital campaigns. Sustained 20%+ revenue growth and improving operating margins highlight attractive unit economics and scalability. The prior share-price spike and subsequent selloff underscore how quickly sentiment can overshoot fundamentals in small-cap SaaS, but the underlying platform remains valuable. With leverage manageable and a path to further margin expansion, the business could justify a higher multiple once confidence is rebuilt. Investors must weigh execution risk, customer concentration, and any governance concerns raised by short sellers, but on normalized metrics the stock looks more compelling after the drawdown.

Pitch Summary:
TKO Group (NYSE:TKO) and APi Group (NYSE:APG) added 1.2% and 1.1%, respectively. TKO, the parent company of UFC and WWE, is capitalising on its global rights portfolio and unmatched live event brand. The merger has created significant operational synergies, and the company is starting to wield its bargaining power across media partners and advertisers. Meanwhile, APi Group continues to deliver solid earnings through its specialty contracting business focused on fire safety and security services. The vast majority of APi’s revenue is recurring or regulatory-driven, and the business has a strong track record of acquiring smaller players and integrating them efficiently. Both companies exemplify the scalable platforms we seek, those with recurring revenue, pricing power, and disciplined capital allocation.

BSD Analysis:
APi benefits from a large base of recurring and compliance-driven revenue tied to fire and life-safety regulations, which cushions results through economic cycles. The company has demonstrated an ability to roll up smaller contractors, extract synergies, and expand margins over time. Strong free cash flow generation supports ongoing deleveraging and tuck-in M&A, while also creating potential for future shareholder returns. The stock trades at a reasonable mid-teens forward P/E multiple given its defensive growth and consolidation runway. Execution on integration and maintaining service quality are key, but the business model offers an attractive blend of stability and growth.

Pitch Summary:
TKO Group (NYSE:TKO) and APi Group (NYSE:APG) added 1.2% and 1.1%, respectively. TKO, the parent company of UFC and WWE, is capitalising on its global rights portfolio and unmatched live event brand. The merger has created significant operational synergies, and the company is starting to wield its bargaining power across media partners and advertisers. Meanwhile, APi Group continues to deliver solid earnings through its specialty contracting business focused on fire safety and security services. The vast majority of APi’s revenue is recurring or regulatory-driven, and the business has a strong track record of acquiring smaller players and integrating them efficiently. Both companies exemplify the scalable platforms we seek, those with recurring revenue, pricing power, and disciplined capital allocation.

BSD Analysis:
TKO combines two premium combat-sports franchises with loyal fan bases and scarce live-content assets, giving it strong leverage in media-rights negotiations. The merger has unlocked cost synergies and cross-promotion opportunities that should support EBITDA margin expansion. With long-dated broadcast contracts and global expansion into new markets, revenue visibility is high and largely independent of traditional economic cycles. The business is capital-light, allowing a large portion of earnings to be reinvested or returned to shareholders over time. Risks include potential viewer fatigue, regulatory scrutiny, and renegotiation risk on future rights deals, but the scarcity value of live sports content remains a powerful tailwind.

Pitch Summary:
Flutter Entertainment (NYSE:FLUT) is another high-quality compounder, contributing 1.8% to overall returns. Flutter’s US bookmaking business, operating under the FanDuel brand, continues to grow rapidly, while its more mature UK operations keep surprising to the upside. When the Fund first acquired Flutter in 2021, we believed it could outpace consensus growth expectations. As the market increasingly catches up, the position is likely to make way for others over time.

BSD Analysis:
FanDuel’s leading share in U.S. online sports betting and iGaming provides a powerful engine for top-line growth and operating leverage as state legalization expands. Internationally, Flutter’s diversified portfolio of brands and markets helps smooth regulatory and macro volatility. The company is increasingly converting revenue growth into free cash flow, which can be deployed to debt reduction and selective M&A. The NYSE listing has broadened its investor base and improved liquidity, helping narrow the valuation discount to U.S. gaming peers. Regulatory risk, taxation, and potential advertising restrictions remain key overhangs, but the structural growth in digital wagering supports a positive long-term view.

Pitch Summary:
MTU Aero Engines (XTRA:MTX) continued to surpass market expectations, adding 1.5% to Fund returns this year. With the GTF engine issues nearing resolution, the business has upgraded earnings forecasts multiple times over the past year. Combined with healthy end markets and a valuation that remains very attractive relative to its commercial aerospace peers, MTU continues to be a core Fund holding.

BSD Analysis:
MTU’s leverage to the high-margin engine aftermarket provides resilient cash flows and attractive long-term growth as global flight hours trend higher. Near-term noise around Pratt & Whitney GTF issues has weighed on sentiment, but compensation mechanisms and accelerated shop visits can bolster service revenue over time. The company maintains a strong balance sheet and disciplined capital allocation, supporting investment in next-generation technologies and shareholder returns. Valuation remains below many aerospace peers on forward P/E and EV/EBITDA metrics, despite comparable or better growth prospects. As GTF concerns abate and earnings revisions move higher, the stock has meaningful re-rating potential.

Pitch Summary:
After sitting on the watchlist for years, the April market selloff gave us the chance to buy Comfort Systems USA (NYSE:FIX) at an attractive price. It provides mechanical and heating, ventilation and air conditioning (HVAC) services across industrial and institutional markets. Comfort is especially well-positioned to benefit from the surge in data centre construction, where demand for large-scale, technically complex HVAC systems is growing rapidly. Few players have the national footprint, project expertise and local execution capacity that Comfort offers, making it a go-to contractor for mission-critical infrastructure builds. Since the April 2025 low, the share price has already risen about 80%, contributing 1.5% to Fund returns. While significant profits have been taken, Comfort Systems remains a high-quality operator in a structurally growing market, and a strong example of disciplined watchlist management paying off.

BSD Analysis:
Comfort’s core HVAC contracting business is gaining from secular trends in data center buildout, reshoring of manufacturing, and upgrades to energy-efficient systems. The company has historically generated solid returns on capital, supported by a disciplined acquisition strategy and strong project execution. With a robust backlog and growing mix of complex, higher-margin projects, earnings visibility has improved despite the cyclical nature of construction. The stock’s sharp rebound reflects improved expectations, but valuation remains reasonable versus its growth and margin profile. Key risks include project-cycle volatility and execution on large data center work, but the franchise’s scale and reputation offer a durable edge.

Pitch Summary:
Wise (LSE:WISE) contributed 1.4% to returns this year as it continued scaling its cross-border payments platform profitably. Wise operates one of the lowest-cost global money transfer networks, and its transparent pricing sells itself to individuals and small businesses. Over the past year, it onboarded nearly six million new customers and grew revenue by 15%, despite cutting take rates quite sharply. It also maintains strong operating margins—higher, in fact, than management considers ideal. Unlike many fintech peers, Wise is capital-light, generates free cash flow, and focuses on building long-term infrastructure targeting profitable growth rather than growth at any cost. That discipline is increasingly being recognised, not only in the numbers but also in the company’s plan to move its primary listing to the US. Management sees a disconnect between Wise’s global profile and the valuation discount applied by UK markets, and also sees large business opportunities in the US that could be accelerated by a local listing. The move reflects a broader trend: high-growth, globally relevant UK businesses looking for deeper capital markets and better peer comparisons. Wise is now the fourth such stock we’ve owned in recent years, and it’s been a productive pond.

BSD Analysis:
Wise benefits from a structural shift toward low-cost digital cross-border payments, with its scale and proprietary infrastructure allowing it to undercut banks while still earning attractive margins. Strong customer growth, high engagement, and increasing adoption of multi-currency accounts support durable revenue visibility. The business converts a significant portion of revenue into free cash flow, which can fund product expansion and potentially shareholder returns over time. A US primary listing could broaden the investor base and close part of the valuation gap with faster-growing fintech peers. Regulatory risk and competition remain, but Wise’s unit economics and network effects provide a clear competitive edge.

Pitch Summary:
Japan’s labour market is also changing. A shrinking workforce, rising wages and a shift away from lifetime employment are pushing large corporations to modernise HR systems and embrace mid-career hiring. That’s creating a fertile environment for Visional (TSE:4194), an HR technology company offering platforms for recruitment and workforce management. Despite its short tenure in the portfolio, Visional has already made a meaningful contribution. Its two core platforms, BizReach (Japan’s leading direct recruiting site for high-income professionals) and HRMOS (a cloud-based HR suite), serve over 16,000 paying clients and are building a sticky ecosystem across HR workflows. It’s exactly the kind of capital-light, high-margin software business that we like. Growth has been consistent, margins strong, and management disciplined in reinvestment. For a business compounding earnings at around 20%, the valuation still looks undemanding. Visional has all the ingredients of a long-term compounder, and the broader structural tailwinds in Japan are only just beginning. Visional is now a top 10 holding in the Fund.

BSD Analysis:
Visional is levered to structural change in Japan’s labor market, where mid-career mobility and digital recruitment are replacing legacy hiring practices. Its dual-platform model combines high-value executive job matching with workflow software, creating data advantages and high switching costs for enterprise customers. Revenue growth north of 20% with strong gross margins suggests substantial operating leverage as the business scales. The balance sheet is robust, allowing continued investment in product and marketing without financial strain. While competition from global job platforms is a risk, local market understanding and regulatory familiarity provide meaningful advantages. Given its growth profile, the shares appear attractively valued relative to global HR tech peers.

Pitch Summary:
Two more of the Fund’s top contributors this year were Japanese software businesses benefiting from the country’s accelerating digital transformation. OBIC Business Consultants (JP:4733), a longer-term holding, is a conservative, highly profitable software company specialising in accounting and payroll solutions for small and mid-sized businesses. It added 1.0% to returns as it continued delivering steady, software-driven growth with strong margins. Shift (JP:3697), a newer addition, is Japan’s leading independent provider of software testing and quality assurance services. It’s a capital-light business scaling quickly in a fragmented market, and it contributed 1.1% to Fund performance before being sold.

BSD Analysis:
OBIC BC is a classic Japanese software compounder, with sticky customers, high switching costs, and a track record of stable double-digit operating margins. Its focus on mission-critical accounting and payroll systems for SMEs translates into low churn and recurring maintenance revenue. As Japanese corporates modernize IT infrastructure under governance and efficiency pressure, OBIC’s installed base can be upsold to newer modules and cloud-based offerings. The balance sheet is typically net cash and the company has a history of shareholder-friendly dividends, although buybacks have been modest. Valuation tends to be rich on traditional metrics, but the durability of cash flows and underpenetrated cloud migration justify a long-term premium.

Pitch Summary:
Japanese software, in particular, has been fertile foraging ground. The country still lags global peers in cloud adoption, with many businesses relying on outdated infrastructure and legacy systems. As digitisation gathers pace and governance standards improve, the runway for high-margin, capital-light growth companies is expanding. Separately, the government is pushing hard on cashless payments, aiming to lift penetration to 80% from around 40% today, well below the 60-70% levels already reached in most Western markets. E-commerce is similarly underdeveloped, accounting for just 9% of retail sales versus 15% in the US and more than 25% in the UK. These structural shifts are creating multi-year tailwinds for a small but growing group of domestic software champions, including one of the Fund’s holdings, GMO Payment Gateway (JP:3769), a leading Japanese payments processor serving both online and offline businesses.

BSD Analysis:
GMO-PG sits squarely in the slipstream of Japan’s push toward cashless payments and e-commerce penetration, giving it a long runway for transaction volume growth. Its asset-light, high-margin model converts incremental revenue into strong free cash flow, supporting reinvestment and potential shareholder returns. With a dominant position among domestic online merchants and increasing omni-channel capabilities, competitive moats are deepening as scale advantages grow. The stock typically commands a premium multiple on EV/sales and EV/EBITDA, but that is justified by structurally higher growth and returns on capital relative to traditional financials. Key watchpoints include competitive pressure from global processors and regulatory shifts, but secular adoption trends remain a powerful tailwind.

Pitch Summary:
Pason Systems (TSX:PSI) detracted 1.5% as North American onshore rig counts declined through much of the year. This business, which provides instrumentation and data systems to the oil and gas drilling sector, remains highly cash generative and enjoys strong pricing power. But its sensitivity to rig counts and investment cycles was clear in 2025. While long-term demand for efficient wellsite automation hasn’t gone away, the cyclical downturn dragged on sentiment and earnings.

BSD Analysis:
Pason remains a high-margin, asset-light oilfield services name with strong competitive positioning in drilling data and analytics, and its cash generation through cycles has historically supported dividends and balance-sheet strength. The recent downturn in U.S. land rig activity is cyclical, not structural, and Pason’s exposure to efficiency-focused customers should allow it to participate early in any activity recovery. Its net cash balance sheet and modest capex needs mean free cash flow conversion is typically high, giving optionality for dividends, buybacks, or selective M&A. While earnings are volatile, the stock often trades at single-digit EV/EBITDA and mid-teens P/E at cycle troughs, which can be attractive entry points. Investors should watch rig count inflection and international expansion as key catalysts for a re-rating.

Pitch Summary:
Apparel retailer American Eagle operates two core brands: its namesake American Eagle (AE) brand and its Aerie brand. The company has survived multiple fashion cycles with proven cost flexibility and currently boasts the financial position to weather the ongoing disruption while returning capital to shareholders. Beyond the current environment, we expect its revenues and operating margins to grow over the next few years. Tariff uncertainty at the beginning of the year resulted in an attractive discount to our estimate of intrinsic value, providing us with an opportunity to establish a position.

BSD Analysis:
American Eagle is a mall-based apparel brand that has survived longer than most skeptics expected by staying relevant with younger consumers and leaning into denim and casualwear. The real gem is Aerie, its intimates and loungewear brand, which has been a standout growth engine. The company has done a decent job of managing inventory, cutting back on promotions when possible, and investing in digital. Fashion risk is always there, but American Eagle tends to avoid going too far out on trend limbs. Margins ebb and flow with traffic and discounting, yet the balance sheet is relatively solid. It’s not a secular growth rocket, but it’s far from dead mall baggage.

Pitch Summary:
Asure Software is a growing provider of cloud-based human capital management (HCM) solutions to primarily small- and medium-sized businesses in the US. Its platform helps organizations manage their workforces through integrated payroll, HR, tax management and benefits solutions. We believe the company should withstand any macroeconomic headwinds relatively well and is poised to generate near-term scale in its business, which should contribute to improved profitability and cash-flow generation. Further, Asure not only has the potential to generate attractive organic growth, but it could also position itself as an attractive acquisition target. Under the leadership of an experienced, motivated management team, we believe this is a high-quality, small and growing software-as-a-service company, trading at a compelling discount to our estimate of intrinsic value.

BSD Analysis:
Asure is a small-cap HR and payroll software provider targeting small and mid-sized businesses. It competes in a crowded space but focuses on compliance-heavy niches like tax credits and time tracking where expertise matters. The company has grown via acquisitions and organic efforts, building a broader suite over time. The challenge is balancing integration and innovation while keeping churn low. If Asure can deepen its relationships and cross-sell more modules, margins and growth can both improve. This is a classic small SaaS story: a lot of operating leverage if they get it right, a lot of competition if they do not. Sizing and time horizon matter.

Pitch Summary:
Strawberry Fields REIT is a skilled nursing and health care facilities-focused REIT with a simple business model: it owns skilled nursing facilities under long-term leases with modest annual rent increases. Looking forward, we expect skilled nursing to benefit from a growing population of individuals aged 80 and above in the US. Although the company is small, it has a solid balance sheet with retained free cash flow for acquisitions. We anticipate that it should be able to grow steadily in the period ahead while improving its equity and debt cost of capital and driving operating efficiency. While we acknowledge material cuts to Medicaid funding could pose a risk, we believe the longer-term outlook and the current valuation are sufficiently attractive to warrant a position.

BSD Analysis:
Strawberry Fields is a small healthcare REIT focused mainly on skilled nursing and similar facilities, often in secondary and tertiary markets. It collects rent from operators who themselves face labor, reimbursement, and regulatory pressures. That makes underwriting tenant quality and lease structures absolutely critical. When things go well, the REIT enjoys steady, inflation-linked cash flows from high-yielding assets. When they go badly, property-level stress and operator failures can create real headaches. This is not a pristine, trophy-asset REIT; it’s a higher-yield, higher-risk vehicle. Any position here should reflect the complexity of the skilled nursing ecosystem.

Pitch Summary:
Fortune Brands Innovations is a leading manufacturer of building products — including kitchen and bathroom faucets, entry doors and others — for both the new single-family housing construction and the repair and remodeling markets. We expect the repair and remodeling market to recover in the period ahead, supported by structural tailwinds including aging housing stock, high home equity levels and a growing trend toward homeowners’ choosing to remain in their homes as they age. With its portfolio of top brands and exposure to new adjacencies — such as residential water-leak detection by Flo by Moen, one of its brands — we believe Fortune Brands is well-positioned to outperform its end markets. We consequently capitalized on a current valuation that we believe meaningfully undervalues the company’s long-term growth potential and initiated a position in Q2.

BSD Analysis:
Fortune Brands is a focused home and security products company, with exposure to doors, cabinets, plumbing fixtures, and related categories. Housing turnover and renovation cycles drive the top line, which means it can be cyclical. But the company leans into brands and innovation that allow for pricing power when demand is there. Recent portfolio moves have simplified the business and sharpened focus on higher-margin, more differentiated segments. As rates eventually normalize and housing activity picks up, Fortune Brands is well-placed to benefit. In the meantime, cost control and mix management are key. It’s a classic “better house in a rough neighborhood” play within housing-related stocks.

Pitch Summary:
AZZ is a leading North American metal coating solutions provider that we believe is poised to capitalize on multiple secular drivers — including infrastructure development, manufacturing reshoring and material conversion. We also believe AZZ should benefit from the trend toward de-verticalization, whereby functions and services previously performed by vertically integrated companies are separated to allow companies to operate more efficiently while relying on partners. As shares traded during the quarter at an attractive discount to our estimate of intrinsic value, we capitalized on the opportunity to initiate a position.

BSD Analysis:
AZZ provides galvanizing and coating services, along with electrical systems and components, primarily for infrastructure and industrial end markets. Hot-dip galvanizing is a classic picks-and-shovels business for metal structures needing corrosion protection. As infrastructure spending and grid investments ramp, AZZ’s services and products become more in demand. The company has been reshaping its portfolio to focus on higher-margin, more defensible businesses. Cycles in industrial capex still matter, but the structural need to maintain and upgrade infrastructure gives a decent baseline. AZZ is not a high-flyer, but it’s a solid way to play the less glamorous side of infrastructure growth.