Investment Pitches

Pitch Summary:
We also initiated a position in Arthur J. Gallagher (AJG), a best-in-class insurance broker consolidating the mid-market space. The company recently completed its largest acquisition to date, which is expected to drive earnings growth of more than 20% next year.

BSD Analysis:
Sandhill initiated a new position in Arthur J. Gallagher, positioning it as a best-in-class insurance broker executing a consolidation strategy in the mid-market segment. The investment thesis is anchored on the company's recent major acquisition, which management expects to generate over 20% earnings growth in the following year. This suggests AJG is successfully executing a roll-up strategy in a fragmented insurance brokerage market. The manager appears confident in AJG's ability to integrate acquisitions effectively and generate meaningful synergies. The mid-market focus likely provides attractive growth opportunities with less competition from larger players. The substantial expected earnings growth indicates the acquisition was likely accretive and strategically valuable.

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:
Sandhill Investment Management increased their position in Crane Company, citing strong growth prospects in the aerospace division. The manager's thesis centers on Boeing's accelerated production schedule and the substantial aircraft backlog for both Boeing and Airbus. This positions Crane to capitalize on a long-term secular trend in aerospace demand. The investment appears to be a play on the recovery and growth of commercial aviation, with Crane serving as a key supplier to major aircraft manufacturers. The timing suggests confidence in the aerospace supply chain's ability to meet increased production targets. The manager views this as a durable, multi-year growth opportunity rather than a cyclical recovery trade.

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 regulatory uncertainty, purchasing at 25x forward earnings during a Justice Department antitrust investigation regarding debit card market monopolization. The investment thesis centers on Visa's proven ability to navigate periodic regulatory challenges given its entrenched market position and business model resilience. The position has outperformed the market since initiation, validating the contrarian entry timing during temporary weakness. Current valuation of 27x forward earnings represents modest expansion but remains reasonable for a defensive growth compounder. At only 3% portfolio weight, the manager considers increasing allocation given the low-risk profile and consistent execution. The investment reflects confidence in Visa's durable competitive advantages and ability to withstand regulatory scrutiny while maintaining market leadership in global payments infrastructure.

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 initiated a new position in Rubrik and added aggressively after a 20% post-earnings decline, viewing the sell-off as a valuation opportunity. Despite strong fundamentals including beat-and-raise quarter with accelerating revenue growth, the market fixated on minor Subscription ARR deceleration. The manager attributes this to sales compensation plan changes from semi-annual to annual cycles, creating temporary quarterly volatility. The investment thesis emphasizes valuation compression from $83 to $74, reducing implied DCF growth expectations from 37% to 27% while maintaining strong execution. Four consecutive quarters of positive free cash flow demonstrate improving capital efficiency at an inflection point. The manager plans aggressive accumulation below $80, leveraging current cash position to build a substantial stake. The position represents conviction in high-growth software with reasonable valuation expectations given revenue acceleration and margin expansion potential.

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 added to Mercado Libre during political uncertainty, viewing the sell-off as an overreaction to Argentine provincial election results. The investment thesis emphasizes MELI's 25-year track record of navigating Latin American volatility versus political cycles. The manager highlights MELI's competitive advantages over smaller players during market stress periods. Strong execution momentum includes Mercado Pago's explosive growth in Mexico, doubling POS terminals to 1M and rivaling traditional banking infrastructure in an underbanked market. Product diversification continues with new wholesale platform Negocios and healthcare service Dr. Virtual, demonstrating platform expansion beyond core e-commerce. The Nikos acquisition in Brazil represents a strategic shift toward inorganic growth in financial services, expanding AUM capabilities. Currently a top contributor (+37% YTD), the position reflects confidence in MELI's resilient business model and market leadership across Latin America.

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. The manager emphasizes that revenue beat expectations while the earnings miss was due to deliberate front-loading of expansion costs. Key catalysts include aggressive UK market penetration through partnerships with Aldi (536 stores with 600+ target) and a potentially transformative Post Office trial that could unlock access to 15,000 branches. The investment case relies on InPost's automated parcel locker network achieving critical density in the UK market. Despite being a current detractor (-28% YTD), the manager maintains conviction in the long-term expansion strategy and market opportunity.

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 built his Visa position opportunistically during an antitrust-related drawdown, purchasing at 25x forward earnings when the DOJ alleged illegal monopolization of the US debit card market. The investment thesis relies on Visa's proven ability to navigate regulatory challenges and its defensive business characteristics. The manager views periodic antitrust lawsuits as routine for dominant payment networks and believes Visa is uniquely positioned to handle such inquiries. The position has outperformed the market since initiation, validating the contrarian entry timing. With the stock now at 27x forward earnings and representing only 3% portfolio weight, the manager is considering adding to what he characterizes as a very low-risk investment. The thesis emphasizes Visa's durable competitive moat in payment processing and its track record of regulatory resilience. The modest valuation expansion from 25x to 27x forward earnings suggests reasonable entry points remain available for this defensive growth position.

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 initiated a new position in Rubrik and added aggressively after a 20% post-earnings decline, viewing the sell-off as a valuation reset opportunity. Despite strong fundamentals including beat-and-raise quarter with accelerating revenue growth, the market fixated on minor Subscription ARR deceleration. The manager attributes this to sales compensation plan changes from semi-annual to annual cycles, creating temporary quarterly volatility. The investment thesis centers on valuation compression making the stock more attractive - implied growth expectations dropped from 37% to 27% while fundamentals improved. With four consecutive quarters of positive free cash flow and margin expansion ahead, the manager sees an inflection point company trading at reasonable multiples. The aggressive accumulation strategy reflects high conviction in the cloud data management opportunity. The manager plans to build this into a substantial position, targeting purchases below $80 and viewing it as one of the most attractive high-growth software investments available.

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 Mercado Libre during political uncertainty, viewing the sell-off in Argentine ADRs as indiscriminate and creating value. The investment thesis emphasizes MELI's 25-year track record of navigating Latin American political volatility, positioning it as more resilient than smaller competitors. The manager highlights MELI's competitive moat and ability to thrive during adversity. Key execution drivers include explosive fintech growth with Mercado Pago doubling POS terminals in Mexico to 1M, now rivaling traditional banking infrastructure in an underbanked market. Product diversification continues with new wholesale platform Negocios and healthcare service Dr. Virtual. The Nikos acquisition in Brazil represents a strategic shift toward inorganic growth in financial services. Currently a top contributor (+37% YTD), the position benefits from MELI's platform economics and structural advantages in Latin American e-commerce and fintech.

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. The manager emphasizes that revenue beat expectations while the earnings miss was due to deliberate front-loading of expansion costs. Key catalysts include aggressive UK market penetration through partnerships with Aldi (536 stores with 600+ target) and a potentially transformative UK Post Office trial that could unlock access to 15,000 branches. The investment case relies on InPost's automated parcel locker network achieving critical density in the UK market. Despite being a current detractor (-28% YTD), the manager maintains conviction in the long-term expansion strategy and market opportunity.

Pitch Summary:
Lastly, we initiated a position in ServiceTitan (TTAN), a fast-growing software company modernizing the trades industry. ServiceTitan helps plumbers, electricians, and HVAC technicians run their businesses more efficiently. There is a huge need to professionalize the trades. With its brand recognition and first-mover advantage, ServiceTitan is leading the charge. Rather than being displaced by AI, the company is already leveraging it to automate scheduling, billing, and customer service, driving significant productivity gains.

BSD Analysis:
The manager initiates a new position in ServiceTitan, targeting the digitization of the trades industry through vertical software solutions. The investment thesis focuses on the massive opportunity to professionalize traditionally fragmented trades businesses including plumbing, electrical, and HVAC services. ServiceTitan's first-mover advantage and brand recognition position it as the market leader in this underserved vertical. The manager views AI as an enabler rather than a threat, highlighting how ServiceTitan leverages AI for automation in scheduling, billing, and customer service to drive productivity gains. This positions the company ahead of AI disruption concerns affecting other software names. The trades industry's need for modernization represents a large total addressable market with significant runway for growth and market share expansion.

Pitch Summary:
In the software space, we increased our position in Tyler Technologies (TYL), which provides mission-critical software to local governments. Its products support thousands of small municipalities nationwide. While sentiment around software has turned negative amid fears that AI could displace existing products, Tyler operates in a highly fragmented market with high switching costs and few credible new entrants. We have great confidence in management's ability to continue expanding within this market.

BSD Analysis:
The manager increases exposure to Tyler Technologies despite broader software sector pessimism, demonstrating conviction in the company's defensive characteristics. The investment thesis centers on Tyler's mission-critical software serving local governments, creating high switching costs and customer stickiness. The manager emphasizes the fragmented nature of the government software market and Tyler's competitive moat through limited credible competition. This contrarian positioning against negative software sentiment suggests the manager sees AI displacement fears as overblown for Tyler's specific niche. The thousands of small municipalities served provide a large addressable market for continued expansion. Management's track record appears to be a key confidence factor, suggesting strong execution in market share gains and organic growth within the government vertical.

Pitch Summary:
We also initiated a position in Arthur J. Gallagher (AJG), a best-in-class insurance broker consolidating the mid-market space. The company recently completed its largest acquisition to date, which is expected to drive earnings growth of more than 20% next year.

BSD Analysis:
The manager initiates a new position in Arthur J. Gallagher with a bullish outlook based on the company's consolidation strategy in the mid-market insurance brokerage space. The investment thesis hinges on AJG's position as a best-in-class operator executing a roll-up strategy in a fragmented market. The recent large acquisition is highlighted as a key catalyst, with management guidance pointing to over 20% earnings growth in the following year. This suggests strong execution capabilities and accretive deal-making. The mid-market focus appears to be a strategic advantage, likely offering less competition than larger enterprise segments. The manager's confidence in initiating a new position indicates attractive valuation and compelling growth prospects from the acquisition integration.

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 key growth driver for the company. The manager's decision to add to an existing position suggests confidence in the thesis and valuation attractiveness. The pitch emphasizes the long-term nature of the aerospace recovery cycle, which should provide sustained revenue visibility for Crane's aerospace segment. However, the analysis lacks specific financial metrics or valuation context that would strengthen the investment case.

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 key growth driver for the company. The manager's decision to add to an existing position suggests confidence in the thesis and valuation attractiveness. The pitch emphasizes the long-term nature of the aerospace recovery cycle, which should provide sustained revenue visibility for Crane's aerospace segment. However, the analysis lacks specific financial metrics or valuation context that would strengthen the investment case.

Pitch Summary:
Lastly, we initiated a position in ServiceTitan (TTAN), a fast-growing software company modernizing the trades industry. ServiceTitan helps plumbers, electricians, and HVAC technicians run their businesses more efficiently. There is a huge need to professionalize the trades. With its brand recognition and first-mover advantage, ServiceTitan is leading the charge. Rather than being displaced by AI, the company is already leveraging it to automate scheduling, billing, and customer service, driving significant productivity gains.

BSD Analysis:
The manager initiates a new position in ServiceTitan, targeting the digitization of the trades industry through vertical software solutions. The investment thesis focuses on the massive opportunity to professionalize traditionally fragmented trades businesses including plumbing, electrical, and HVAC services. ServiceTitan's first-mover advantage and brand recognition position it as the market leader in this underserved vertical. The manager views AI as an enabler rather than a threat, highlighting how ServiceTitan leverages AI for automation in scheduling, billing, and customer service to drive productivity gains. This positions the company ahead of AI disruption concerns affecting other software names. The trades industry's need for modernization represents a large total addressable market with significant runway for growth and market share expansion.

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 key growth driver for the company. The manager's decision to add to an existing position suggests confidence in the thesis and valuation attractiveness. The pitch emphasizes the long-term nature of the aerospace recovery cycle, which should provide sustained revenue visibility for Crane's aerospace segment. However, the analysis lacks specific financial metrics or valuation context that would strengthen the investment case.

Pitch Summary:
In the software space, we increased our position in Tyler Technologies (TYL), which provides mission-critical software to local governments. Its products support thousands of small municipalities nationwide. While sentiment around software has turned negative amid fears that AI could displace existing products, Tyler operates in a highly fragmented market with high switching costs and few credible new entrants. We have great confidence in management's ability to continue expanding within this market.

BSD Analysis:
The manager increases exposure to Tyler Technologies despite broader software sector pessimism, demonstrating conviction in the company's defensive characteristics. The investment thesis centers on Tyler's mission-critical software serving local governments, creating high switching costs and customer stickiness. The manager emphasizes the fragmented nature of the government software market and Tyler's competitive moat through limited credible competition. This contrarian positioning against negative software sentiment suggests the manager sees AI displacement fears as overblown for Tyler's specific niche. The thousands of small municipalities served provide a large addressable market for continued expansion. Management's track record appears to be a key confidence factor, suggesting strong execution in market share gains and organic growth within the government vertical.

Pitch Summary:
We also initiated a position in Arthur J. Gallagher (AJG), a best-in-class insurance broker consolidating the mid-market space. The company recently completed its largest acquisition to date, which is expected to drive earnings growth of more than 20% next year.

BSD Analysis:
The manager initiates a new position in Arthur J. Gallagher with a bullish outlook based on the company's consolidation strategy in the mid-market insurance brokerage space. The investment thesis hinges on AJG's position as a best-in-class operator executing a roll-up strategy in a fragmented market. The recent large acquisition is highlighted as a key catalyst, with management guidance pointing to over 20% earnings growth in the following year. This suggests strong execution capabilities and accretive deal-making. The mid-market focus appears to be a strategic advantage, likely offering less competition than larger enterprise segments. The manager's confidence in initiating a new position indicates attractive valuation and compelling growth prospects from the acquisition integration.

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 key growth driver for the company. The manager's decision to add to an existing position suggests confidence in the thesis and valuation attractiveness. The pitch emphasizes the long-term nature of the aerospace recovery cycle, which should provide sustained revenue visibility for Crane's aerospace segment. However, the analysis lacks specific financial metrics or valuation context that would strengthen the investment case.