Investment Pitches

Pitch Summary:
Boston Beer Company – US beverage company Boston Beer detracted in the quarter. The stock price has continued to be under pressure due to macro concerns around declining alcohol consumption trends noted above. The company did report a solid operational quarter and is focused on what is within its control by growing margins. The company still has a strong net cash balance sheet to protect the downside, and it is continuing to execute substantial share repurchase at accretive prices. It feels way in the past at this stock price, but it was just a year ago that Boston Beer was the subject of takeover rumors.

BSD Analysis:
Boston Beer is a high-beta, high-risk beverage turnaround story whose value is locked in its successful pivot to a "Beyond Beer" portfolio. The core thesis is driven by the company's strategic focus on hard teas, seltzers, and RTDspirits, which now represent 85% of its volume. The key catalyst is the massive success of its Sun Cruiser RTD spiritsbrand, which captured a 4% RTD spirits market share in Q2 2025. This portfolio shift, combined with operationalefficiencies lifting gross margins near 50%, justifies a bullish outlook, despite softness in its traditional beer segments.

Pitch Summary:
Westrock Coffee – Coffee producer Westrock was a detractor for the quarter. We continue to like the outlook for overall coffee demand going forward. Unfortunately, the company has faced challenges both internal and external over the last year. The good news is that it is nearing the final ramp up of its new facility in Conway, AR. This will lead to a more diversified business mix and additional cash flow to drive equity value. We were encouraged to see insider buying in the quarter.

BSD Analysis:
Westrock Coffee is a high-growth, specialized beverage solutions provider whose stock is a conviction bet on its successful pivot to a high-margin, integrated supply chain model. The core moat is its end-to-end capabilities across sourcing, processing, and packaging coffee, tea, and extracts for major global brands. The key catalyst is the completion of its massive custom roasting and ready-to-drink (RTD) facility, which will significantly boost capacity and drive superior operating leverage. This expansion allows Westrock to capture increasing market share in the non-cyclical, high-growth RTD beverage segment.

Pitch Summary:
Atlanta Braves Holdings – This company, which owns the Atlanta Braves baseball team and real estate around the stadium, was another contributor in the quarter. This quarter was highlighted by the strategic acquisition of the Pennant Park office complex, significantly expanding the company's real estate footprint adjacent to ‘The Battery’ development around their stadium. A well-received analyst day further highlighted the sum-of-the-parts valuation, while professional sports team valuations continue to increase. The team itself is currently struggling on the field this season, but we still like their long-term potential.

BSD Analysis:
Atlanta Braves Holdings is a high-growth, specialized media and entertainment pure-play whose stock is an asymmetric recovery bet on its successful monetization of the Atlanta Braves baseball club and The Battery Atlantareal estate. The core thesis is driven by the massive synergies between the team and the mixed-use development. The stock is rated a Zacks Rank #1 (Strong Buy), following a 14.1% increase in earnings estimates over the last three months, signaling a major improvement in the underlying business. This is a high-conviction play on the stable, high-value demand for professional sports and its unique, captive real estate platform.

Pitch Summary:
Becle – Leading manufacturer of tequila and whiskeys Becle contributed in the quarter. The company was undisclosed last quarter, when we took advantage of the share price dislocation to purchase during peak US/Mexico trade uncertainty. The company has strong brands that we know well having owned the company in our non-US strategy, even though most of the value comes from the US despite the company’s Mexican listing. Becle’s current undervaluation is further complicated by the broader market's cautious outlook on the alcohol industry as noted above. The company has aligned owners in the Beckmann family, and owning roughly 30% of the growing, global tequila market with 200+ year old brands positions them well for the long-term.

BSD Analysis:
Becle (Jose Cuervo) is the undisputed, global tequila oligopolist whose stock is a conviction bet on the structural premiumization of the global spirits market. The core thesis is driven by its dominance in the Tequila category (Jose Cuervo and Other Tequilas grew volume 5.2%) and its superior profitability. The company is successfully navigating short-term volume softness in the U.S. and Canada (down 6.4%) by aggressively expanding in the Rest of the World (RoW) region, where volume grew 19.9%. Financial discipline is clear: EBITDA margin increased 1,240 bps due to lower input costs and operating efficiencies. Becle is a high-quality compounder leveraging its brand dominance and clean balance sheet (1.0x net leverage) to capture the global tequila supercycle.

Pitch Summary:
Oscar Health – Health insurance and software company Oscar was a top contributor for the quarter. The company delivered a solid quarter operationally, effectively managing what was within its control despite market sentiment experiencing wild swings, largely driven by the latest draft of the Trump bill. We remain confident in the long-term potential for this company considering its differentiated offering for its members, and our aligned management partners who are on offense with a great balance sheet. That said, we trimmed our position this quarter when sentiment was most favorable.

BSD Analysis:
Oscar Health is a high-growth, disruptive insurtech pure-play whose stock is an asymmetric recovery bet on its successful pivot to GAAP profitability and its unique tech platform. The core moat is its cloud-native insurance operating system and its focus on the Individual and Small Group ACA markets. The company is converting its tech-driven efficiency into superior financial performance, with the Q3 2025 Medical Loss Ratio (MLR) improving to 83.1%. The stock is a high-risk, high-reward play on the successful execution of its cost-containment strategy and its ability to achieve positive free cash flow in the near future.

Pitch Summary:
Medley – Japan's leading online HR platform for medical staff… Medley benefits from strong network effects… As a result of its technology-focused online solution, Medley is able to charge a much lower take-rate… We believe this situation is temporary… At Medley, we are partnering with Founder CEO Kohei Takiguchi who owns around 20% of the company and is a smart capital allocator.

BSD Analysis:
Medley is a high-growth, specialized HR and Medical SaaS pure-play whose stock is a conviction bet on the structural digitization of Asian professional services. The core thesis is driven by the company's superior growth in its Medical Platform (Medical PF) segment, which saw sales growth accelerate to +38% year-over-year. This segment, focusing on high-efficiency healthcare technology, is driving significant EBITDA margin expansion. While the HR Platform (HR PF) faced headwinds from regulatory changes, the company's aggressive measures (including price increases) stabilized sales growth back to +30%. Medley is a leveraged play on the accelerating demand for SaaS solutions in the Asian healthcare market.

Pitch Summary:
Treasury Wine – We initiated an investment in Australia-listed Treasury Wine Estates (TWE) during the quarter… While overall wine (and broader alcohol) consumption has been weak in recent years, luxury wine category continues to grow as consumers are ‘drinking less but better.’… We were able to invest in TWE below its net liquidation value… The company announced its intention to launch a 5% share buyback as the current stock price is well below their own estimate of intrinsic value.

BSD Analysis:
Treasury Wine Estates is an unassailable, high-quality luxury wine oligopolist whose stock is a conviction bet on the structural shift to premiumization and the re-entry into the massive Chinese market. The core moat is its ownership of iconic, global luxury wine brands (Penfolds, Beringer, Wolf Blass) that command exceptional pricing power. The highly anticipated removal of China's punitive tariffs on Australian wine is the single, highest-conviction catalyst, expected to unlock a massive and immediate earnings inflection, especially for its top-tier Penfolds brand. TWE is a high-quality compounder, leveraging its global distribution network and brand portfolio to secure long-term, high-margin revenue.

Pitch Summary:
Koninklijke Philips – We initiated a position in Dutch medical equipment manufacturer Philips during the quarter… Philips reached the point where it traded at a significant discount to its international peers… New CEO Roy Jakobs has taken decisive action… We believe Philips is past the trough in terms of underlying performance, but this is not yet evident in the reported numbers, giving us the opportunity to invest ahead of the operational improvement.

BSD Analysis:
Philips is a high-quality, focused MedTech titan whose stock is an asymmetric recovery bet on its successful pivot to a specialized healthcare technology pure-play. The core thesis is driven by strong order intake, accelerating sales growth, and robust margin expansion. The company's unassailable moat is its focus on AI-powered innovations across its high-growth segments, including the launch of 26 FDA-cleared cardiovascular ultrasound AI applications. Management is executing a ruthless cost cleanup (EUR 2.5 billion productivity program), which is driving margins toward the upper end of its guidance. Despite navigating significant recall-related settlements, the underlying business is structurally sound, leveraging long-term Enterprise Monitoring as a Service (EMaaS) partnerships to ensure recurring revenue.

Pitch Summary:
Naver – The dominant search and e-commerce marketplace operator in Korea was a contributor for the quarter… Despite strong operating performance so far, there are legitimate long-term concerns around the terminal value of its search platform in light of increasing competition from generative AI applications… As price reached our value, we took the opportunity to exit Naver and recycle capital into more attractive opportunities.

BSD Analysis:
Naver is a high-growth, deeply undervalued South Korean tech giant whose stock is a leveraged bet on its aggressive pivot to become a global AI infrastructure and Physical AI leader. The core thesis is a massive, multi-year 1 trillion won ($690 million) investment in NVIDIA Blackwell GPUs (securing 60,000 units) to accelerate its AI infrastructure buildout. This CapEx is the foundation for its GPU-as-a-Service (GPUaaS) model, which will create a new, recurring revenue stream. Furthermore, the company is successfully embedding AI into its core services (like the AI Briefing generative search feature used by 30 million users) and its Physical AI division (robotics operating systems). Naver is a high-conviction play on the inevitable success of a technological titan controlling both its consumer platform and its core AI infrastructure.

Pitch Summary:
Entain – UK sports betting and online casino company Entain was a contributor during the quarter. Entain had a challenging 2024 being without a permanent CEO whilst trying to turnaround online market share losses in its key UK, US (through the BetMGM JV) and Brazilian markets, combined with regulatory concerns in New Zealand and the fallout from a Serious Fraud Office (SFO) fine in Turkey. This turnaround took longer than we had hoped but is now coming to fruition… Well-respected Chair Stella David was appointed as the permanent CEO… Importantly BetMGM has also delivered, with market share stabilization and, crucially, an improved profitability outlook for the year lending credibility to mid-term targets for $500 million EBITDA.

BSD Analysis:
Entain is a high-growth, high-stakes global gaming titan whose stock is an asymmetric bet on the successful monetization of the massive U.S. sports betting market through BetMGM. The core thesis is driven by the fact that the company is back to consistently delivering online growth and stabilizing market share globally, despite short-term headwinds in volatility-prone markets like Australia and Brazil. The key catalyst is BetMGM, which is ahead of expectations and is projected to return at least $200 million to its parents by year-end. Management is confidently maintaining its 2025 EBITDA guidance of £1,100 million- £1,150 million, backed by 7% constant currency online NGR growth. The stock is a conviction bet on its technological superiority and the non-cyclical, structural growth of the global regulated gaming sector.

Pitch Summary:
Melco Resorts – Macau casino operator Melco Resorts was a top contributor for the quarter. Melco reported a strong set of Q1 results beating street expectations while founder CEO Lawrence Ho struck an upbeat tone on April and May holiday performance. Having changed senior management and the marketing strategy last year, we saw early signs of market share gains this quarter. Melco was the biggest market share gainer in the quarter – its Macau Gross Gaming Revenue (GGR) market share increased from 14.7% in 4Q to 15.7% in 1Q (helped by VIP luck factor but even mass share increased by over 40 basis points year-over-year (YoY)). The company relaunched its popular show House of Dancing Water in May, which is bringing additional foot traffic to its flagship resort, enabling it to maintain its market share momentum… The company also bought back US $165 million worth of shares YTD (over 7% of market cap) despite high financial leverage.

BSD Analysis:
Melco Resorts & Entertainment is a high-beta, asset-rich casino pure-play whose stock is a conviction bet on the accelerating recovery of the Macau gaming market and its dominant position in the premium mass segment. The core moat is its ownership of premier, integrated resorts (City of Dreams, Studio City) and its disciplined focus on high-margin leisure and non-gaming revenue. The stock is an asymmetric recovery play, penalized by historical volatility, but poised for massive earnings leverage as mathbfChina's Group Tour Scheme and mathbfIndividual} Visit Scheme drive a sustained surge in visitation.

Pitch Summary:
Canal+ – French pay-TV operator Canal+ was a top performer in the quarter. Canal+ is one of the Vivendi spin-off entities we mentioned in our Q4’24 letter, and our only remaining position of those spun entities. It had a difficult start as a standalone listing. The problems were multifaceted, stemming from the timing of the spin (December 16th), the listing location (London, for a French company) and the governance structure (with the Bollore Group owning over 30% of the shares). Those factors notwithstanding, the value the market ascribed to Canal+ became, and in our view remains, farcical. It is true that the timing of the launch caused additional problems for Canal+, as they were going through a major tender offer process for the largest African pay-TV operator MultiChoice Group. Because the offer was awaiting South African competition commission clearance there has been an informational vacuum in which company executives have been heavily limited in what they can say about the financials of the business, including the synergy potential and longer-term financial objectives. Instead, the market has had to focus on the historic financial data available for the group, which we believe is very misleading in terms of the business potential. Canal+ is a turnaround story in its legacy geography of France. This business was loss-making but has since undergone a dramatic restructuring of both content and service. It now boasts a growing subscriber base, having successfully integrated the streamers onto its platform to become a super-aggregator. Canal+ France has reached breakeven, and with a significant ongoing cost-saving plan, including the rationalization of its sport-rights payments, it is on a path to solid profitability. However, the consolidated financials hide this potential, implicitly leading the market to capitalize on the historic losses in France and therefore ascribing a negative enterprise value to the French pay-TV business as a whole.
It is a similar story for the growth-engine, Africa… Canal+ is one of the most discounted stocks in the portfolio today, currently trading at half of what we believe it to be worth… Once the MultiChoice deal completes (likely in Q3) we believe the investment case will be transformed, allowing a far better understanding of these unique qualities, and also opening the door to more accretive capital uses, including buybacks.

BSD Analysis:
Canal+ S.A. is a high-growth, asset-rich media giant whose stock is a conviction bet on its aggressive international expansion into high-growth markets and its strategic content acquisition. The core moat is its dominance as a premium pay television and streaming operator across 70+ countries and 40 million subscribers. The key catalyst is its successful acquisition of a controlling stake in South Africa's MultiChoice Group, which cements its leadership in the sub-Saharan Africa pay-TV market. The stock is a high-leverage play on the accelerating demand for premium content and streaming across emerging and established global markets.

Pitch Summary:
Glanbia – Irish sports nutrition company Glanbia was a top contributor in the quarter, having been a top detractor in Q1. As we explained in our last letter, the volatility and uncertainty in Q1 made it a bad time to disappoint the market, and we were confident the market reaction to higher-for-longer input costs at Glanbia was a gross overreaction. In Q2 a touch more rationality started to prevail as Glanbia revealed Q1 results which were better than feared. While whey input costs remained high, they moved down from their peak levels, lending credibility to the expectation that prices will fall further as new whey production capacity comes online towards the end of the year. The second market concern, the impact of an own-brand Costco competitor, had a continued but stable impact on the topline trend quarter-on-quarter, again supporting the argument that the impact will be a one-off annualized effect rather than a constant headwind.
We firmly believe that from a fundamental perspective H1 will be the trough for both earnings and market perception for Glanbia. Margins in the Performance Nutrition division will start to improve as the whey price falls, benefitting from strong demand for protein products. The headwind on sales from the underperforming SlimFast and Body&Fit brands will also eventually abate as those businesses are going through a disposal/closure process. We are also expecting further progress on strategic rationalization in H2. Beginning July 1st, the Dairy Nutrition business began operating as a standalone unit, a precondition to launching a sale process for this division for which Glanbia is no longer the best owner. Our valuation of this division accounts for almost 50% of Glanbia’s current market cap, for a business the market largely ignores. That will force the market to reassess the implicit undervaluation of the core Performance Nutrition and Nutritional Health divisions. In the meantime, Glanbia has plenty of balance sheet capacity for further buybacks to create value from an undervalued share price.

BSD Analysis:
Glanbia is a high-quality, high-growth nutritional ingredients and performance pure-play whose stock is a conviction bet on the structural, global trend toward health and personalized nutrition. The core moat is its dual-engine model: Performance Nutrition (consumer brands like Optimum Nutrition) and Health & Nutrition (bespoke ingredients for businesses). The company is strategically positioned to capture massive growth from key megatrends in functional nutrition. This focus is delivering superior returns, with Adjusted EPS hitting 140.03c and high cash conversion.

Pitch Summary:
Jardine Matheson is an Asian-based owner and operator of strategic platforms, with a particular expertise in Southeast Asia, Hong Kong, and Mainland China. Having been in business for nearly 200 years, the company has narrowed its focus in recent years with some of its key investments currently including: (i) a 53% stake in separate-listed Hongkong Land Holdings, an owner, operator, and developer of premier mixed-use facilities in Asia, including dominant positions in Central Hong Kong and Marina Bay in Singapore, (ii) an 88% stake in separately-listed Mandarin Oriental, a global owner and operator of luxury hotels and resorts, as well as the One Causeway Bay project in Hong Kong, and (iii) an 85% stake in separately-listed Jardine Cycle & Carriage (“JC&C”), a Singapore-based conglomerate with exposure to a wide set of businesses in Southeast Asia, including meaningful investments in Indonesia.

As has long been the case, Jardine maintains a strong financial position, measured by both the quality and quantity of its resources. However, the company seems to have adopted more of an “aggressive conservative” approach under Executive Chairman (and significant shareholder) Ben Keswick. Since he assumed the role in 2018, Jardine has been as active in repositioning the business as any other point in many decades, in our opinion. As a matter of fact, in the last five years Jardine has (i) increased or consolidated ownership of its key platforms, (ii) initiated strategic reviews at several portfolio companies, (iii) recruited new executives while implementing incentive-based compensation structures, and (iv) executed capital recycling and share buyback initiatives in several instances.

As the impact of these enhancements materialize into improved results, Fund Management believes the Fund will benefit from the reversal of the “double discount” that persists with Jardine today. More specifically, Jardine common trades at more than a 25% discount to the value of its listed investments, without factoring in its privately-held holdings (i.e., Jardine Pacific, et al). However, Third Avenue is of the view that Jardine’s key listed businesses (i.e., Hongkong Land, Mandarin Oriental, and JC&C—all of which are held in other Third Avenue Funds) are trading at very modest valuations. Therefore, if these key holdings can surface incremental value through enhanced capital allocation, and other means, the “both discounts” should narrow over time—which could be quite rewarding for Jardine common with prices implying more than a 50% discount to the “look-through” NAV, by our estimates.

BSD Analysis:
Jarvis Securities is a deep-value, specialized financial services pure-play whose stock is an asymmetric recovery bet on its high-margin, fixed-income platform and SaaS services. The core thesis is driven by the company's dominance in providing custodial services and SaaS platforms to the UK financial industry. The stock is trading at a depressed valuation following a recent HMRC reassessment, creating a clear arbitrage opportunity. Jarvis is a conviction bet on the company's ability to successfully resolve its regulatory headwinds and convert its strong underlying profitability into a major stock re-rating.

Pitch Summary:
Champion Homes is a leading producer of “factory-built” housing in North America, having delivered more than 26,000 manufactured homes, modular homes, and accessory dwelling units (“ADU’s”) last year. While the company offers a wide array of brands (e.g., Titan, Champion, Skyline, et al), there is one common theme across its nationwide footprint: affordability. In fact, the average sales price of Champion’s deliveries was less than $100,000 more recently. At the same time, the company maintains a focus on financial strength with more than 30% of its assets in cash and the minimis levels of debt. Champion also operates with significant scale after merging with industry-peer Skyline in 2018—a tie-up that established the second largest position in terms of market share, only trailing Clayton Homes (a wholly-owned subsidiary of Berkshire Hathaway). That said, Champion seems to be much earlier on its journey to capture the economics throughout the value chain given its scale. For instance, the company has only recently entered the financing business, a long-time source of profitability for other industry players. It also seems to be in the early phases of consolidating independent retailers into captive sales outlets—one of the staples of the Clayton Homes model. Despite these attributes, Champion’s results have been mixed more recently with easing order activity and various cost pressures. As a result, Champion’s common stock was trading near five-year lows on most fundamental metrics and less than seven times peak earnings (after adjusting for the excess cash). Such a price seems quite modest for a leading platform in a consolidated and essential industry, in our view. It is also an implied valuation that does not seem to factor in any probability for a recovery in industry volumes—which could be aided by regulatory reform (i.e., HUD’s chassis requirements) and disproportionally benefit Champion given its under-utilized production capacity.

BSD Analysis:
Skyline Champion is a high-growth, factory-built housing specialist whose stock is a conviction bet on the structural shift toward affordable housing solutions. The core thesis is driven by the massive affordability crisis in the U.S., which makes its manufactured, modular, and park model homes an increasingly non-discretionary alternative to site-built homes. The company's superior scale and efficient factory model allow it to deliver high-quality, energy-efficient housing at a 20%–50% lower cost than traditional builders. The stock is a high-conviction play on the long-term, non-cyclical demand for affordable single-family housing.

Pitch Summary:
Wesco is a real estate-related business that is primarily involved with commercial distribution, logistics services, and supply-chain solutions—with a leading position in the distribution of parts and components underpinning electrical, communications, and utility-related property in North America. The company is also well-capitalized, in our view, with a cash generative business that provided more than $1.2 billion of pre-tax operating profit last year, or nearly 4.5 times its fixed-charges, thus leaving plenty of excess capital for tuck-in acquisitions, dividends, and share repurchases. In the company’s 100-plus year history, “the stars” have rarely been as aligned as they are today, though. Why so? Well, the company has finally paid off the high-cost capital associated with the untimely closing of its acquisition of Anixter in 2020. More importantly though, Wesco’s distribution business is focused on three segments that seem to be on the verge of a step-change in capital spending due to secular changes (as well as policy changes) driving reshoring, grid upgrades, and data center investments. At the same time though, Wesco common remains modestly priced, in our view, trading at nearly a 20% discount to a conservative estimate of NAV at quarter-end. Looked at through another lens, Wesco’s stock price implied a “free cash flow yield” exceeding 8% and an “EV to EBITDA” multiple of less than 9.0 times—the latter well below comparable multiples for private market transactions in the rapidly consolidating distribution space.

BSD Analysis:
WESCO is a high-growth, indispensable industrial and electrical distribution giant whose stock is a conviction bet on the multi-year electrification and infrastructure supercycle. The core moat is its massive scale and comprehensive services platform, providing essential products for the modernization of the electric grid, data centers, and industrial facilities. The company is successfully executing the integration of its Anixter acquisition, driving superior cost synergies and 15% organic growth in its Data Center and Network Solutions segment. WESCO is a high-quality compounder whose indispensable role in the AI infrastructure buildout secures its long-term, double-digit earnings growth.

Pitch Summary:
Prologis is the largest global owner of modern logistics real estate and is exceptionally well capitalized, generating more than $6.5 billion of recurring cash flow annually with loan-to-value below 25%. Fund Management believes Prologis is uniquely positioned to create value in a higher real-rate environment through mark-to-market rents, land-bank development, data center expansion, and rooftop solar initiatives. Despite these strengths, the shares trade at a meaningful discount to net asset value, implying an overly pessimistic cap rate and replacement cost assumption.

BSD Analysis:
Prologis is the unassailable, high-growth global logistics real estate oligopolist whose value is locked in its dominance of high-barrier-to-entry urban consumption zones. The core thesis is driven by the fact that its real estate assets are critical infrastructure for e-commerce, reshoring manufacturing, and AI data centers. Prologis is converting this dominance into unmatched pricing power, with rents continuing to accelerate. The company's massive scale and focus on sustainability and innovation widen its competitive moat, securing long-term, compounding rental income.

Pitch Summary:
Conduit Holdings Limited experienced a sharp decline in valuation following elevated catastrophe losses and management change. Despite these setbacks, the company maintains a debt-free balance sheet, a high-quality investment portfolio, and aligned management incentives. Fund Management initiated a position at a significant discount to book value, believing that normalized underwriting results and restored investor confidence could drive substantial upside. The Fund views the recent losses as cyclical rather than structural.

BSD Analysis:
Conduit Holdings is a high-quality, high-conviction reinsurance pure-play whose stock is a leveraged bet on the sustained hard market cycle in global reinsurance. The core thesis is driven by the company's low-cost, technology-driven platform and its lack of legacy liabilities, giving it a significant competitive advantage over established peers. This clean structure allows Conduit to write business more profitably and capitalize on the current market environment where premium rates are high and capacity is constrained. The stock is a pure-play on the non-cyclical, high-margin reinsurance market, leveraging its structural advantage to deliver superior underwriting returns.

Pitch Summary:
VF Corp manages apparel brands, including Dickies, The North Face, Timberland, and Vans. The company has brought on a new CEO who has fixed the balance sheet, improved capital allocation, and rebuilt the management team in an effort to return the business to growth. I believe that the company has good brands, the skills to manage them well, and a management team that can handle the challenges that the company faces. VF Corp currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
VF is a brand portfolio turnaround with meaningful operating leverage if management restores discipline across merchandising, inventory, and channel strategy. The balance sheet repair reduces financial risk, while strong brand equity offers a foundation for recovery. If Vans stabilizes and The North Face continues its momentum, the earnings base could rebuild rapidly. Shares trade at depressed multiples relative to historical norms.

Pitch Summary:
Siemens Energy combines a world-class electrical power generation business, a world-class electricity transmission business, and an onshore and offshore wind turbine business that is attempting a turnaround. The company spun out of Siemens in September 2020. After many years of weak electricity demand in OECD countries, Siemens Energy is benefiting from a cyclical boom in demand.

BSD Analysis:
Siemens Energy offers leveraged exposure to global electrification, grid modernization, and renewable build-outs. Strength in gas turbines and transmission offsets weakness in wind, where turnaround efforts are underway. The long-cycle nature of its backlog provides multi-year visibility. Shares remain discounted due to wind concerns, but improving order trends and restructuring progress provide upside optionality.