Investment Pitches

Pitch Summary:
Tesla's record high quarterly deliveries in Q3 2025, surpassing both internal and analyst estimates, highlight the company's strong market position and potential for robust profitability, especially in the US market.

BSD Analysis:
Tesla's Q3 2025 deliveries reached 497,099 vehicles, significantly beating analysts' estimates by 12%. The strong performance is attributed to a 30% YoY growth in US deliveries, which are the highest priced globally, suggesting higher profitability. Despite a decrease in European sales and a modest performance in China, the US market's strength is expected to drive earnings, with an EPS estimate of $0.61, 21% above the Street's forecast. Additionally, Tesla's Energy division reported record deployments, although a recall of the Powerwall 2 product poses a potential risk. The low lease penetration for Model 3/Y, despite tax credit incentives, might indicate strategic risk management amid declining used-car sales.

Pitch Summary:
I built my initial position in Visa about a year ago at 25x forward earnings. The stock was in a mini drawdown at the time following news that the U.S. Justice Department alleged Visa illegally monopolised the U.S. debit card market. These types of lawsuits happen periodically, and if any company is built to handle an antitrust inquiry, it is Visa. The investment has worked out well, beating the market by a decent margin. With the stock now trading at 27x forward earnings and holding just a 3% weight in my portfolio, it might be time to add more shares in what I view as a very low-risk investment.

BSD Analysis:
The manager initiated Visa during antitrust-related weakness at 25x forward earnings, viewing regulatory challenges as temporary headwinds for a company with proven resilience to such inquiries. The investment thesis emphasizes Visa's defensive characteristics and ability to navigate regulatory scrutiny given its established market position and business model. The position has outperformed the market since initiation, validating the contrarian entry timing during the Justice Department monopolization allegations. At current 27x forward earnings with only 3% portfolio weight, the manager considers adding to what is characterized as a "very low-risk investment." The analysis suggests confidence in Visa's moat durability and regulatory risk management capabilities. The measured approach to position sizing reflects the manager's view of Visa as a stable, defensive holding that can provide consistent returns with limited downside risk in an uncertain market environment.

Pitch Summary:
I added to my position after the stock fell 20% following its Q2 FY26 earnings report. This is a new position I initiated in August, and the stock had already run up by a similar amount into earnings. In summary, RBRK posted a fantastic quarter, beating guidance and raising full-year expectations. Despite accelerating overall revenue growth, the market focused on a minor deceleration in Subscription ARR. As I noted, the company shifted from half-yearly to annual sales comp plans at the start of FY26. This means Q2 and Q3 should now look more alike, without the Q2 accelerator seen in prior years. Q4, however, is projected to be seasonally strong, which I believe the market overlooked. Another observation: RBRK's valuation reset sharply in one month. When I shared my initial pitch at $83, an inverse DCF implied a 37% growth rate. With revenue growth, four consecutive quarters of positive FCF, and the stock now at $74, the implied growth rate dropped to just 27%. That's a much more reasonable expectation given revenue growth and margin expansion ahead. A company at an inflection point can make premium valuations look not so premium very quickly. If RBRK remains below $80, I will continue to accumulate shares aggressively and build this into a substantial position faster than usual, given the cash position I am sitting on. While the stock is not cheap, I believe it is not as expensive as it might initially appear. It remains one of the most attractive high-growth software businesses on the market today.

BSD Analysis:
The manager views Rubrik's post-earnings decline as a valuation reset opportunity, adding to the position after a 20% drop despite strong fundamental performance. The thesis centers on market misunderstanding of sales compensation changes that created artificial quarterly comparisons, with the manager expecting Q4 seasonal strength to be overlooked. The valuation analysis is compelling - the implied DCF growth rate dropped from 37% to 27% in one month due to stock price decline and continued execution, making the premium valuation more reasonable. Four consecutive quarters of positive free cash flow demonstrate the business model's cash generation inflection point. The manager plans aggressive accumulation below $80, viewing this as one of the most attractive high-growth software opportunities available. The investment reflects confidence in Rubrik's positioning at a business inflection point where strong execution can quickly justify premium valuations through margin expansion and sustained growth.

Pitch Summary:
I added to my position after the stock sold off indiscriminately with all Argentinian ADRs following the Buenos Aires provincial election, where President Milei's party was defeated. The national election is this month. Milei's party is pro-capitalism, which can be viewed as a positive for MELI. That said, he has been in power for 2 years, while MELI has been around for 25. Political shifts that may harm the entire market will hit sub-scale players more than MELI. If you listened to the recent climbers & scalers podcast with MELI's founders, you know this company is built to thrive during adversity. Execution highlights this month: Mercado Pago hits 1M POS terminals in Mexico (doubling since Sept 2024). Its network now rivals the entire traditional banking ecosystem (1.4M terminals), driving inclusion in a country where ~40% remain unbanked. Launched Mercado Libre Negocios, a wholesale platform for entrepreneurs, companies, and governments to buy in bulk with ease, security, and better pricing. Launched Dr. Virtual in Argentina, a new digital health service offering unlimited 24/7 tele-consultations and access to specialists like psychologists, nutritionists, and dermatologists, all from your phone. Acquired Brazilian firm Nikos, allowing Pago to structure and distribute fixed-income securities, funds, and third-party products while growing AUM. This is its first acquisition in Brazil and marks a shift from its usual build-in-house approach.

BSD Analysis:
The manager opportunistically added to MELI during political uncertainty-driven selling, viewing the company's 25-year track record as evidence of resilience against political volatility that disproportionately affects smaller competitors. The investment thesis emphasizes MELI's dominant market position and execution momentum across multiple verticals. Mercado Pago's explosive growth in Mexico (1M POS terminals, doubling in one year) demonstrates the platform's ability to compete with traditional banking infrastructure while serving the unbanked population. The launch of Mercado Libre Negocios expands into B2B wholesale, while Dr. Virtual represents diversification into digital healthcare. The Nikos acquisition in Brazil signals strategic evolution from organic growth to selective M&A for financial services expansion. The manager views MELI as a resilient platform business with structural advantages that can capitalize on Latin American digitalization trends regardless of short-term political headwinds.

Pitch Summary:
I added to my position after the stock dropped 13% following its Q2 earnings report. I shared a full analysis below, but in summary: the company reported solid results. The market reacted negatively because INPST prioritised strategic investment for future dominance, primarily front-loaded integration costs from the Yodel acquisition, which came at the expense of near-term profit and resulted in weaker net earnings despite beating on revenue. Since earnings, INPST has continued executing on UK expansion with two notable partnerships: 536 Aldi stores now feature INPST parcel lockers (with a target of 600+ by year-end). UK Post Office trial: pick-up and drop-off lockers at hundreds of branches. If successful, INPST could tap into the full 15,000-branch network, a potential game changer for density.

BSD Analysis:
The manager views InPost's recent weakness as a buying opportunity, adding to the position after a 13% post-earnings decline. The thesis centers on the market's short-sighted focus on near-term margin compression from strategic investments, particularly Yodel acquisition integration costs, while overlooking the company's solid revenue beat and long-term positioning. The manager emphasizes InPost's aggressive UK expansion strategy, highlighting partnerships with Aldi (536 stores with 600+ target) and a Post Office trial that could potentially scale to 15,000 branches. This network density expansion is viewed as a critical competitive moat in last-mile logistics. The investment reflects confidence in management's strategic prioritization of market share gains over short-term profitability, positioning InPost for future dominance in European automated parcel delivery.

BSD Analysis:
The manager initiates a position in ServiceTitan, targeting the modernization of the trades industry through software solutions for plumbers, electricians, and HVAC technicians. The investment thesis emphasizes the significant need to professionalize the fragmented trades sector, with ServiceTitan positioned as the market leader through brand recognition and first-mover advantage. Notably, the company is leveraging AI as an enhancement rather than facing displacement, using automation for scheduling, billing, and customer service to drive productivity gains. This positions ServiceTitan favorably against AI disruption concerns affecting other software companies. The trades industry represents a large, underserved market with substantial digitization opportunities. The fast-growing nature suggests strong market adoption and execution capabilities. However, the pitch lacks specific financial metrics or competitive positioning details beyond first-mover status.

BSD Analysis:
The manager increases exposure to Tyler Technologies, emphasizing its mission-critical software solutions for local governments across thousands of municipalities. The investment thesis centers on the company's defensive positioning against AI disruption concerns plaguing the broader software sector. Key competitive advantages include high switching costs, market fragmentation, and limited credible new entrants, creating substantial barriers to entry. The government software market provides stable, recurring revenue streams with predictable budget cycles. Management's track record of market expansion within this niche vertical appears to drive confidence in continued growth. The contrarian positioning against negative software sentiment suggests potential for multiple expansion as AI fears subside. The municipal software market offers long-term visibility and defensive characteristics during economic downturns.

BSD Analysis:
The manager initiates a position in Arthur J. Gallagher with a clear consolidation thesis in the mid-market insurance brokerage space. The investment case is anchored by the company's recent largest acquisition, which is projected to drive over 20% earnings growth in the following year. The 'best-in-class' designation suggests strong operational execution and market positioning. The consolidation strategy in the fragmented mid-market segment provides a compelling growth runway through both organic expansion and strategic acquisitions. The significant earnings growth projection indicates substantial synergies and integration capabilities. However, the pitch lacks discussion of valuation metrics or integration risks. The insurance brokerage model typically offers recurring revenue streams and defensive characteristics during economic uncertainty.

Pitch Summary:
We added to our position in Crane (CR), an industrial technology company that is seeing strong growth from its aerospace division. Boeing is increasing its near-term production schedule, and a massive backlog of demand for both Boeing and Airbus aircraft remains. Crane stands to benefit from this long-term secular trend.

BSD Analysis:
The manager presents a bullish thesis on Crane Company based on aerospace industry tailwinds. The investment rationale centers on Boeing's increased production schedule and the substantial aircraft backlog for both Boeing and Airbus, positioning Crane to capitalize on this secular growth trend. The aerospace division is highlighted as the primary growth driver, suggesting strong fundamentals in this segment. The manager's decision to add to an existing position indicates confidence in the company's ability to execute on these opportunities. The thesis appears well-grounded in industry dynamics and supply chain positioning. However, the pitch lacks specific financial metrics or valuation considerations. The long-term secular nature of the aerospace recovery provides a compelling investment backdrop for sustained growth.

Pitch Summary:
The investment case for Tencent rests on a uniquely diversified portfolio of high-quality businesses with several strong growth drivers, all at an attractive valuation. Tencent has a user base of 1.3bn monthly-active-users on WeChat alone (Chinese population of 1.4bn), virtually the entire Chinese population as active users. Spanning use cases across messaging, entertainment, payments, e-commerce, ride-hailing, government services, and even healthcare access, this breadth has made WeChat a near-essential app in daily life, embedding Tencent deeply in the routines of individuals and businesses. This entrenchment offers Tencent not just numerous competitive advantages that underline the firm's quality, but also provides significant growth optionality. The diversification of the business is Tencent's most compelling quality attribute. Peers often compete with Tencent in just one or two departments – NetEase in gaming and Alibaba in Cloud and eCommerce, for example. Tencent, however, has a strong mix of established, maturing, highly cash-generative businesses (including market-leading positions in gaming and social media) as well as a significant number of promising growth sub-segments (#3 in Chinese cloud), across both consumer and business applications. Diversification extends into the mix of defensive vs cyclical revenue streams. The firm's online advertising business is Tencent's most cyclical and provides a driver of growth in cyclical upswings. However, a greater mix of sales comes from gaming, cloud services, financial technology, and social networks (e.g. WeChat). These services have stable user bases and monetisation models, which are less sensitive to macroeconomic fluctuations, and have good growth drivers throughout the cycle. The firm's quality attributes are not just 'qualitative', however, and translate into superior operating metrics too, with one of the best margins and return profiles in the Chinese internet/tech sphere. Diversification also extends into Tencent's growth profile, with the firm's three segments each offering a significant contribution to the firm's high-single-digit top-line revenue growth outlook over the mid-term. Growth is not reliant on any one business or customer group, or any single type of macro-environment, adding to the firm's quality profile. Three key growth drivers include a.) the cloud computing business, which can leverage the firm's impressive data sets and entrenchment within Chinese society; b.) increasing monetisation opportunities with respect to the firm's user base; c.) international expansion, particularly in gaming, where the firm has seen strong success so far. A significant advantage for the firm is its ability to invest heavily in growth, without impacting its free cash flow outlook to the same extent as peers (Alibaba in particular). Tencent's deep mix of quality and growth at an attractive valuation provides a compelling investment case, with a profile that fits firmly within the Fund philosophy.

BSD Analysis:
The manager presents a comprehensive bull case for Tencent based on its unique ecosystem dominance and diversified growth profile. With 1.3 billion WeChat users representing virtually the entire Chinese population, Tencent has achieved unparalleled user entrenchment across essential daily activities from messaging to payments to government services. This creates powerful network effects and competitive moats that differentiate it from single-focus competitors like NetEase or Alibaba. The business model combines defensive characteristics from stable gaming and social media revenues with cyclical growth from advertising, providing resilience across market cycles. The manager highlights three key growth drivers: cloud computing leveraging proprietary data assets, increasing user monetization opportunities, and international gaming expansion. Superior operating metrics and margin profiles within Chinese tech demonstrate execution quality, while the ability to invest in growth without compromising free cash flow provides strategic flexibility versus peers.

Pitch Summary:
Broadcom develops semiconductor and software solutions that accelerate data centre computing, facilitate networking, manage storage, and secure enterprise systems. Central to their product offering are Application-Specific Integrated Circuits (ASICs), which are custom-built chips designed for a single task, unlike general-purpose processors. They deliver faster performance, lower power use, and reduced costs at scale, which makes them highly attractive for a growing number of AI workloads that require energy efficiency without compromising performance. Given their customisability and strong overall performance metrics, a wide range of use cases has driven rapid ASIC adoption across industries. Despite roughly tripling revenues over the past 5 years, the forward growth outlook remains very healthy given the ongoing AI infrastructure build out - consensus still sees a 20%+ topline growth CAGR over the mid-term. Broadcom have also done well to cement its competitive positioning as a market leader in the AI hardware space with a clear moat, enabled by enormous R&D spending, a strong patent base, and a long history of design expertise in key chip technologies. They have also made use of their strong free cash position, acquiring VMware (a software virtualisation business) for $69bn in 2023, in a cash & stock deal. This move helped to strengthen Broadcom's recurring revenue base, broaden its enterprise software capabilities, and deepen relationships with large corporate and cloud customers. The firm remains incredibly high quality, with a return on capital north of 20% and operating margins north of 60%, which will continue to expand as they realise ongoing efficiencies from the VMWare deal. The firm is trading at a reasonable valuation given its growth and quality characteristics, and we are confident that Broadcom is well placed to benefit from the ongoing AI infrastructure build-out, given its strong positioning and attractive product offering, which continues to grow in importance across multiple end markets.

BSD Analysis:
The manager presents a compelling bull case for Broadcom based on its leadership in AI-optimized semiconductor solutions and strategic positioning. The core thesis centers on Broadcom's ASIC technology, which offers superior performance, energy efficiency, and cost advantages for AI workloads compared to general-purpose processors. Revenue growth of roughly 3x over five years with consensus projecting 20%+ CAGR demonstrates strong execution and market opportunity. The VMware acquisition for $69bn strategically strengthens recurring revenue and enterprise relationships while expanding software capabilities. Exceptional financial metrics including 20%+ return on capital and 60%+ operating margins highlight the company's quality profile. The manager views Broadcom's competitive moat as sustainable, built on substantial R&D investment, patent portfolio, and design expertise. The reasonable valuation relative to growth and quality characteristics makes it an attractive investment in the AI infrastructure buildout theme.

Pitch Summary:
Novo Nordisk was also a detractor from performance over the quarter. The shares had fallen significantly following a profit warning in July, where management cut FY25 sales guidance by 6% and reduced its free cash flow outlook by one third. Despite the Food and Drug Administration removing Novo's Semaglutide drug, which is used to treat Type 2 diabetes, from its shortage list, the company continued to face competition from compounded drugs. Management also noted heightened competition in both the US and international markets, as well as a slowing of the overall GLP-1 market. This was exacerbated by Novo's decision to appoint a new internal CEO, despite expectations that an outsider would be hired to provide a new strategic direction. As a result, we no longer felt confident in Novo's ability to deliver attractive risk-adjusted returns and decided to exit the position.

BSD Analysis:
The manager adopted a bearish stance and exited Novo Nordisk due to deteriorating fundamentals and competitive positioning in the GLP-1 market. The July profit warning was particularly concerning, with management cutting sales guidance by 6% and free cash flow outlook by one-third, signaling significant business challenges. Despite FDA removing Semaglutide from the shortage list, competition from compounded drugs persisted, indicating structural market pressures. The broader GLP-1 market slowdown combined with heightened competition in both US and international markets created a challenging operating environment. The appointment of an internal CEO instead of an external candidate disappointed investors hoping for strategic renewal. These factors collectively undermined the manager's confidence in the company's ability to deliver attractive risk-adjusted returns, leading to the position exit.

Pitch Summary:
London Stock Exchange Group, the financial data and exchange company, was one of the Fund's weaker performers, despite posting a solid set of H1 2025 results during the quarter. LSEG reported strong results with all businesses contributing to overall revenue growth of 8.7% year-on-year, plus +150bps of expansion in their EBITDA margin. Management also announced a "new £1 billion buyback", demonstrating their confidence in the business and its strong cash generation. The softness in the share price was, therefore, not reflective of operational issues, but rather a combination of adverse news flow and investor positioning. LSEG have been adversely impacted by dollar weakness, with foreign exchange representing a 1.9% headwind in H1. Headlines around S&P Global partnering with Anthropic and soft sales commentary from MSCI raised concerns about increasing competition and the broader growth prospects of the industry. Taking a longer-term view, we continue to have confidence in LSEG, given its market-leading position and resilient business model with both defensive and counter-cyclical characteristics that support stable growth across various market environments.

BSD Analysis:
Despite short-term underperformance, the manager maintains conviction in LSEG based on strong fundamentals and temporary headwinds. The company delivered solid operational results with 8.7% revenue growth and 150bps EBITDA margin expansion, while the £1 billion buyback signals management confidence in cash generation capabilities. The stock weakness appears driven by external factors rather than operational issues, including FX headwinds from dollar weakness and competitive concerns from industry headlines. The manager views LSEG's market-leading position and resilient business model as key differentiators, particularly the defensive and counter-cyclical characteristics that provide stability across market cycles. The long-term investment thesis remains intact despite near-term noise from competitive positioning and currency impacts.

Pitch Summary:
Lam Research, the American semiconductor equipment manufacturer, was one of the quarter's best-performing stocks in the Fund. The company reported a robust set of results despite noise around tariffs and export controls, beating market expectations for revenues, margins, and EPS. Notably, gross margins hit a record 50.3%, driven by a favourable product mix and strong demand from China, which supports Lam's anticipation of elevated spending on Wafer Fabrication Equipment. Solid Foundry and NAND flash memory helped offset some cyclical softness in Dynamic Random Access Memory (DRAM) and Logic. Management also spoke to the increasing complexity and intensity in etch and deposition processes for AI chips, with Lam having showcased new products, which suggest they may be ahead of peers in terms of innovation. We believe Lam is well-positioned across key technologies, such as High Bandwidth Memory and advanced packaging, which provide stable drivers for growth going forward.

BSD Analysis:
The manager maintains a bullish stance on Lam Research based on exceptional operational performance and strategic positioning in AI-driven semiconductor manufacturing. Record gross margins of 50.3% demonstrate strong pricing power and favorable product mix, while beating expectations across key metrics shows execution strength. The company benefits from elevated wafer fabrication equipment spending, particularly from China demand. Management's focus on increasing complexity in etch and deposition processes for AI chips positions Lam advantageously in the AI infrastructure buildout. The diversified exposure across Foundry and NAND flash memory provides some cyclical protection against DRAM and Logic weakness. The manager views Lam's innovation leadership and positioning in High Bandwidth Memory and advanced packaging as sustainable competitive advantages driving future growth.

Pitch Summary:
Alphabet was the Fund's top performer over the quarter. The ongoing antitrust case from the Department of Justice had been an overhang for the shares as of late. The market reacted positively to the recent announcement regarding remedies, with the Judge's decision that Alphabet can retain both Chrome and Android, alleviating concerns that the company may be forced to split up. This is of particular importance given that the Search segment is a major contributor to operating income. While the court issued additional requirements, including removing exclusivity from their deal with Apple to make Google the default search engine, the imposition of these requirements is not immediate and is likely to be postponed due to appeals from Alphabet. The company also posted strong results during the quarter, with the core Search business growing +11.7% year-on-year and a sequential acceleration of paid clicks growth. Encouragingly, Alphabet has also been diversifying away from Search through YouTube and its Google Cloud Platform, with the latter demonstrating strong revenue growth and margin expansion in the quarter.

BSD Analysis:
The manager presents a bullish case for Alphabet based on favorable antitrust resolution and strong operational performance. The key catalyst was the court's decision allowing Alphabet to retain Chrome and Android, removing breakup concerns that had weighed on the stock. The core Search business demonstrated healthy growth at 11.7% year-over-year with accelerating paid clicks, indicating robust demand. Diversification efforts are paying off, with YouTube and Google Cloud Platform showing strong revenue growth and margin expansion. The antitrust requirements, while present, are not immediately enforceable due to expected appeals, providing a buffer period. The manager views the Search segment's contribution to operating income as particularly valuable, and sees the diversification strategy as reducing single-business dependency risk.