Investment Pitches

Pitch Summary:
@pandawatch88 argues that Trip.com (TCOM) is reasonably valued at ~20x earnings and ~5% FCF yield, but still offers attractive upside given its strategic position and upcoming catalysts. The core thesis is that the market is overly focused on near-term margin pressure from international expansion, while ignoring Trip’s dominant China brand, strong service quality, and structurally advantaged spot in a hotel oversupply environment. The author highlights Trip’s Booking-like margin and growth profile, the long runway from underpenetrated Chinese air travel, and the export of Chinese app/algorithm know-how plus 700M MAUs to drive international bargaining power. Key catalysts for 2H25 include less margin erosion than feared, a material step-up in capital returns funded partly by the MMYT stake sale, and growing recognition of Trip as a global competitor as it crosses 10% share in international markets. Comparative valuation versus Booking and Expedia supports the view that 20x is a fair or even conservative multiple if margins hold or expand. Modeled outcomes range from a 2x base case to a potential 3x+ in five years if revenue compounds mid-teens, margins rise into the mid-30s, and the multiple rerates toward Booking levels. Downside scenarios include competitive intensity, AI disruption, or catalyst failure driving multiple compression and 25–50% capital loss.

BSD Analysis:
Trip.com sits at the intersection of China’s structural travel growth and a still-consolidating global online travel industry, which provides a favorable backdrop if outbound Chinese tourism continues normalizing. Its evolution from a China-centric OTA toward a more global player introduces execution risk but also creates an avenue to diversify revenue away from domestic macro and regulatory volatility. The comparison to Booking and Expedia is useful: Trip’s margin convergence toward Booking-like levels reflects strong operating leverage and a scalable platform, but the market may continue to discount governance, geopolitical, and China risk with a persistent multiple gap. International expansion could enhance Trip’s bargaining power with hotels and airlines, yet local incumbents and meta-search channels remain powerful, limiting how quickly share can be gained outside Asia. Capital return is a critical part of the thesis; if management credibly commits MMYT proceeds and future cash flows to dividends and buybacks, it can help narrow the valuation discount to global peers. However, a renewed focus on AI or other long-dated investments at the expense of shareholder returns would likely frustrate investors and cap multiple expansion. Overall, the risk/reward skews positively if you believe in sustained double-digit top-line growth, disciplined international investment, and a gradual convergence in how global investors value leading Chinese consumer internet names versus Western peers.

Actual Post Content:
Ok I bought some more TCOM in US to add to the HK ones this morning. Thesis, Catalyst, and Metrics. Thesis: the valuation is fine at 20x PE 5% FCF, no 'hidden gem at 10x PE' here, but I think there is more in this name: --the price has been lagging (-8% YTD vs index and Tencent +24%) because people don't like the impact on margins from the current investment in Asia/Europe. --but Trip is not a market dog though, it has an audience, the price is up 80% since December 2023, same as Tencent, vs market 50%. Fans just need to get itchy again (see catalysts) --I like the fundamental story anyway: ---dominant brand in China (uncle Liu willing) ---right place in the value chain given oversupply of hotels ---good product and good service (call center is solid if you have used it) ---killer founder+CEO combo IMO ---covid survivor coming out stronger with Booking level growth and margins ---and of course the classic '500m people in China have not yet been on a plane' (but they all have a phone, shop in Taobao, and watch Douyin already) --The international expansion makes sense to me, as it has two great ingredients: ---1-Deploying Chinese app/algos tech capabilities outside China (people thinking China only exports hardware/electronics may have been missing tiktok and temu..) ---2-Bringing along Chinese 700MAUs is a great way to get attention (and deals) from Asia/Europe hotels and transport providers. (In comparison, Meituan international expansion has #1 but not #2, Chinese users don't matter when opening food delivery shop in Brazil/Saudi) Catalysts: I'm taking the view that three catalysts happen in 2H25: 1-Margins will go down less than expected: there are several levers for this, e.g. China outbound picks up (higher margin), or HK/SG/Korea/Japan margin improves (currently est -10%), or they ramp up advertising income (which has been growing quietly in the 'other revenue' line). Inbound maybe adds a bit too. 2-Capital returns go up. They have been very late to jump in to the capital return programs that the rest of China big internet have been doing. They declared their first divi ever this year, and a mild buyback. They just sold the MMYT stake for 3bn. I think they are sending that to us, and will announce a step up in capital return (Booking and Expedia are big on this too, and management knows they need to make it easy for shareholders to switch). 3-As they start to cross 10% market share in international markets, the name will start to come up into the Booking (and maybe Expedia, though thats more US centric) research reports and investor conversations as a competitor (currently largely ignored as a solo-China name, but market cap is usd50bn, liquid enough to invite wealthy tourists into the stock). 4?-Klook IPO coming out soon, I'm not sure if that's a positive/negative/indifferent, but it will bring some attention to the 'Chinese internet playing in Asia' theme. Mickey Mouse metrics: Similar revenue growth 2019 -> 2024 as Booking (vs flattish for Expedia). Margins from 12% in 2019 (Expedia levels) to 30% in 2024 (Booking levels). Trading at 20x PE (Expedia levels) vs Booking 30x PE. I actually think 20x is a sensible multiple for this business. Is just that Expedia should be 10x, and Booking 20x, but who am I to judge. Putting it all together: -Upside case we make +3x money in 5 years: top line grows at 15% (2024 was 20%, 2017-19 15%, 20-23 don't count), multiple picks up to 25x closer to Booking, margins go from 30% to 35% as they stop losing money in international and these get closer to Agoda level. -Base: keeping margins flat at 30% and multiple at 20x, is 2x money in 5 years not counting cap returns / buybacks. What can go wrong: -All the usual stuff. Slap in there a downside case where competitors or AI make you lose 50% of your money. -Most annoying would be in 6 months the company falling short on all those catalysts: margins down to mid 20s, capital returns bit more but meh (cause they want to invest in AI), and no-one talking about them while price continues to lag. PE goes down to 15x again, and we lose 25% of the money and get out.

URL: https://x.com/pandawatch88/status/1947335907000144294

Pitch Summary:
@WelfareCapLLC lays out a bullish case for Red Violet rooted in sustained 20%+ revenue growth driven primarily by its IDI data platform and the rapidly expanding FOREWARN application. The author argues that IDI customer additions and rising revenue per account support a long growth runway as the company moves upmarket and expands its total addressable market. FOREWARN, already adopted by hundreds of thousands of realtors, is viewed as a near-mandatory safety tool with strong product-market fit and potential for full TAM penetration. High operating leverage, a fixed-cost model, and strong gross retention suggest that incremental margins can expand meaningfully, potentially pushing EPS above $2.50 by 2028–29. Based on these assumptions, the author believes the stock could double in 3–4 years if the market awards a premium multiple to a high-growth, high-margin data software business. Additional upside may come from new verticals such as identity verification for online dating. Overall, Welfare Capital positions RDVT as a concentrated, high-conviction long with strong structural growth drivers.

BSD Analysis:
Red Violet operates in an attractive niche within identity analytics, benefiting from structural barriers associated with regulated data sourcing, compliance, and infrastructure scale. The business model resembles other successful data platforms where high upfront investment precedes years of high-margin incremental revenue as new customers onboard with minimal cost. FOREWARN’s adoption curve demonstrates strong network effects within real estate associations, though growth may normalize as the TAM saturates. The key strategic question is whether the company can replicate FOREWARN’s success in additional verticals, as IDI alone may eventually settle into more moderate growth rates. Competitive dynamics appear favorable given the limited number of players willing or able to navigate the regulatory environment, although incumbents like LexisNexis Risk or TransUnion could still constrain pricing power. Margin expansion into the 30–40%+ range is plausible given the cost structure, but depends on sales efficiency and disciplined investment in new data assets. Valuation sensitivity remains high due to the company’s reliance on long-term growth assumptions, making execution critical.

Actual Post Content:
Up to a 25% allocation to $RDVT here. I said I was going back to more concentrated, bigger bets, so here we are. My unrealized PnL is basically reset to 0, I’ve got some skin in the game now with no PnL buffer. Here’s why I’m still quite bullish even after a 70%+ run up: I think they can CAGR topline at 20%+ pretty easily for a while (5+ years). IDI customer adds are on a 17% 6yr CAGR, and annual net adds as well as my estimated annual avg. revenue per account have been increasing nicely in recent years as well, as the company expands their sales force and shifts upmarket. Their reported customers over 100K in annual revenue have increased from the mid 80s to 100+ over the past handful of quarters, supplementing my napkin excel math here. Combine more accounts at 17% CAGR with higher revenue per account, you’ve got a 20% IDI revenue CAGR that I think is pretty damn sustainable — IDI is just barely scratching the surface of its addressable market here, with what seems to be a better product and a management team that’s committed to expanding their TAM with more use cases for their data assets (such as FOREWARN). FOREWARN is currently between 13-18% of revenue, based on management’s commentary on bundled pricing with realtors association clients (IDI is the main application and the remainder of revenue). User adds there are on a 75% 6-year CAGR, currently with 325K realtor users out of ~900K active realtors in the US. Last year they pretty much doubled user numbers. The app has excellent product-market fit per my social research and it will effectively be a monopoly product once it reaches full adoption — I think they can saturate the realtor TAM within a few more years and they should have some pricing power at scale, this is a 'mandatory' safety application that is the highest requested member benefit for many realtor associations. Combine these two growth vectors with high incremental margins (fixed cost model, high operating leverage) and I think you can see operating margins in the 30% ballpark by 2028-2029, leading to $2.50+ in EPS. That puts you at 18x 2028-9 EPS, and I’d be surprised if this high growth, high margin software product trades lower than 40x EPS. Effectively a 3-4 year double, is my base case from here. Long at 25% allocation, onward and upward $RDVT! FWIW, I think if FOREWARN continues its rapid adoption in realtors associations, these guys could hit 30%+ growth for a year or two. If you’ve got IDI at 20% growth roughly, and 15% of their revenue (FOREWARN) doubles its user numbers again, you could see some pretty nutty growth which again would just accelerate margin uplift. The incremental customer costs them almost nothing, the database and infrastructure are already built out, and you don’t need loads more engineering hires to continue scaling these products. Longer term, there will be more margin in the S&M line as the sales force scales and new hires continue adding more customers. At 96% gross retention, that recurring revenue stack only grows over time and provides more leverage down the PnL. The small-ish downside is, I think growth will slow a bit once FOREWARN reaches full adoption, besides the potential for price increases that I’m not really banking on. But supplementing that, you’ve got a management team who are committed to expanding the TAM — FOREWARN is basically just a 'background check' in the palm of your hand. The potential for new verticals there is pretty substantial, management has outlined a few more use cases such as verification of matches in online dating — would you pay $5 per month to avoid getting catfished, scammed, or worse when meeting a near-stranger for a date?

URL: https://x.com/welfarecapllc/status/1947487140641677418

Pitch Summary:
@JKeynesAlpha argues that GitLab has reached a major AI inflection point with the launch of its Duo Agent Platform, positioning the company as a multi-year compounder. The pitch emphasizes that Duo represents a leap beyond traditional AI code assistants by enabling multiple specialized AI agents to work collaboratively across the full software development lifecycle. GitLab is portrayed as uniquely aligned with the accelerating adoption of AI in software engineering, offering enterprises a secure, integrated platform that augments top developer talent. The author highlights strong enterprise momentum with over 10,000 customers, robust ARR expansion, and increasing adoption of GitLab Ultimate. Financial results—such as 27% revenue growth and strong FCF margins—underscore operational strength. The pitch suggests the market underestimates GitLab’s transition from DevOps tool to foundational AI-native development infrastructure. Overall, the thesis is that GitLab is strategically positioned for substantial upside as enterprises shift toward agentic AI development.

BSD Analysis:
GitLab’s move into agentic AI development significantly alters its competitive posture within the systems software category, shifting it from a DevOps productivity tool toward an AI-enabled development platform with potentially higher switching costs. The company’s integration of multi-agent workflows into an end-to-end environment may create a defensible moat relative to point-solution code assistants, particularly if enterprises prefer secure, vertically integrated stacks. The accelerating AI adoption curve supports higher long-term ARR expansion, though the durability of that trend depends on whether agentic development becomes mainstream or remains limited to early adopters. GitLab’s reliance on large enterprise accounts is both a strength and a risk—deep contracts improve retention, but volatility in enterprise IT budgets could affect near-term growth. Competitive pressure from Microsoft GitHub remains a structural headwind, especially given GitHub’s distribution advantages and Copilot brand strength. Margin trends and FCF conversion are encouraging and could support valuation rerating if sustained. The largest unanswered question is whether GitLab can maintain differentiation as agentic AI tools commoditize; execution around Duo’s roadmap will determine whether it becomes a true platform standard or a feature set competitors can replicate.

Actual Post Content:
$GTLB 🚀Just Triggered Its AI Inflection Point: This Is a Multi-Year Compounder Hiding in Plain Sight I’m back in GitLab with a major position, and I’m incredibly bullish. I previously entered GitLab earlier in the year, then stepped aside to pursue other opportunities while watching the company closely. Now, after the launch of the Duo Agent Platform, I believe we’ve hit an inflection point and that Duo is a game changer in the space. On July 17, 2025, GitLab released the public beta of Duo, a breakthrough platform that redefines what AI can do in software development. This isn’t just another AI code assistant. Duo is the first system where multiple specialized AI agents collaborate like a full software development team. These agents don’t just assist; they execute. One writes entire features and submits pull requests, another scans codebases for vulnerabilities and fixes them, while others handle test suites, reviews, and deployment monitoring. It is the closest thing we’ve seen to an AI-native DevSecOps workforce. Duo introduces a next-generation orchestration layer that allows human developers to work alongside these intelligent agents in a tightly integrated, secure, and scalable environment. The result is a full reimagining of how software is built, and it is enterprise-grade from day one. The timing could not be better. The AI coding revolution is already underway, with 83 percent of developers now viewing AI as essential to their workflows. Industry leaders like Zuckerberg, Huang, and Benioff have all signaled that AI will fundamentally reshape or even eliminate traditional coding roles. But the real story is not about replacement. It is about acceleration. GitLab is not reacting to this shift. It is actively building the future of AI-driven software development by empowering elite developers rather than sidelining them. Duo is the agentic AI solution for the entire software development lifecycle. It goes far beyond simple code suggestions. It delivers intelligent productivity gains across planning, testing, compliance, deployment, and more. As enterprises move to adopt AI across their organizations, they will increasingly favor platforms like GitLab that amplify the performance of their best talent while automating away repetitive work. The result is a significant productivity boost, even if the long-term effect includes redundancy for some lower-level roles. That is why GitLab now stands firmly beside Tempus $TEM and Nebius $NBIS in what I consider the essential portfolio for modern AI leadership. Tempus dominates healthcare data. Nebius powers bespoke model training, engineering, and deployment with the full-service AI stack. $GTLB GitLab enables teams to build AI and software products in one cohesive and secure environment. These companies play different roles but point in the same direction. GitLab’s customer momentum is accelerating. The company now serves over 10,000 paying customers, including 1,288 generating more than $100,000 in annual recurring revenue. Their client base includes major global enterprises such as Goldman Sachs, UBS, NVIDIA, T-Mobile, Lockheed Martin, SAP, Siemens, PwC, Philips, BMW, Oracle, Verizon, Comcast, Sony, Salesforce, NatWest, and R+V Versicherung. These are enterprise-scale deployments with tangible ROI. NatWest reported that GitLab Duo is helping them ‘implement a comprehensive, enterprise-wide AI solution to enhance developer productivity.’ R+V Versicherung saw a 35 percent acceleration in AI-assisted test generation and a 25 percent improvement in root cause analysis using Duo Enterprise. Financially, GitLab is executing with strength and discipline. In Q1 FY26, the company reported $215 million in revenue, a 27 percent increase year over year. It achieved a 49 percent adjusted free cash flow margin, a 12 percent non-GAAP operating margin, and a dollar-based net retention rate of 122 percent. Most notably, 52 percent of GitLab’s total ARR now comes from GitLab Ultimate, a sign of deep traction among large enterprises who are expanding platform-wide adoption. The market still hasn’t caught on. GitLab is evolving from a DevOps tool into a foundational layer for AI-native development. For investors seeking asymmetric upside in the next phase of the AI cycle, GitLab is one of the most strategically positioned yet underappreciated companies in the space. I'll be keeping regular updates about GitLab's exciting rollout of Duo AI in the months ahead. $GTLB Anthropic Trusts GitLab to Power AI Innovation, Proving GitLab is the Foundation Every Enterprise Needs for Agentic AI Development After listening to GitLab’s Q4 FY25 earnings call, I walked away with the overwhelming sense that this is a top-shelf, professional Silicon

URL: https://x.com/JKeynesAlpha/status/1947404315246924157

Pitch Summary:
Steven Madden designs and sells brand-name and private-label footwear and accessories. We like footwear as a product due to its dual functioning nature: it’s a practical necessity for every man, woman, and child and it functions as a fashion item for self-expression. It is safe to say that 100 years from now, we will still be needing shoes (whether on Earth or Mars). We wrote about footwear generally in our Q1 Letter, stating, Footwear is a simple product to understand, made typically of leather, rubber, foam, and synthetic materials. However, simple does not mean insignificant. There are more nerve endings per square centimeter in the foot than any other part of the body. Our feet constantly supply us with vital information, without our being consciously aware of it. As such, comfortable footwear is deeply connected to the limbic system, regulating emotions, memory, motivation, and social behavior. Being that the product is simple to reverse engineer, it is highly unlikely that a new entrant will create a more comfortable [Shoe] that couldn’t simply be copied. The company grew its revenue base from $1.2B in 2020 to $2.3B at the end of 2024 (CAGR 17.6%) while increasing both gross and operating margins during the same time period. The business is conservatively financed with a net cash position and has generated free cash flow every year since 2010. In May 2025, the company completed its acquisition of Kurt Geiger for $360M, increasing its international footprint (pun intended). The company’s founder and CEO, Steven Madden, is considered an icon in the footwear industry and has recently went viral for his appearance on The Cutting Room Floor podcast. In our view, the company’s stock is trading cheaply from both an historical and a relative level; (~8X EV/EBITDA, 8.5% FCF Yield, 3.7% Dividend). Net asset value provides solid downside protection (47% of current market cap). We also believe that an acquisition is not out of the question being that the founder is in his late 60s. It seems reasonable that at some point, the board may begin to consider how to set the business up for continuity, which may be easier to accomplish under the umbrella of a large corporate parent rather than as a small public company. With $2B in sales and a globally recognized brand, Madden would seem to be an attractive target for a variety of companies.

BSD Analysis:
Steve Madden is a fashion footwear brand that has stayed surprisingly relevant by moving fast with trends and being brutally pragmatic about what sells. It doesn’t pretend to be high luxury; it aims for accessible fashion and is good at hitting the sweet spot. Wholesale is still important, but direct-to-consumer and online channels have grown in relevance and margin contribution. The company manages inventory and design cycles tightly, which helps it avoid the worst of markdown carnage. Fashion risk is real, but Madden’s willingness to pivot and borrow what works has historically kept it out in front of slower competitors. This is a brand with more resilience than its mall-heavy roots would suggest. You own it for nimble execution in a fickle category.

Pitch Summary:
During the quarter the portfolio added a new position in Dynatrace, a leading observability company focused on application performance and monitoring. The manager believes Dynatrace will benefit from the ongoing shift to cloud computing and the rapid growth in artificial intelligence workloads. These technologies generate vast quantities of data and add complexity, which increases the need for robust observability solutions. Dynatrace has been using AI in observability for more than a decade, positioning it well to support the emergence of agentic AI that will require automated, actionable remediation to keep systems stable.

BSD Analysis:
Dynatrace is the undisputed, high-growth AI-powered observability leader whose unified platform provides a non-discretionary service for modern enterprises. The core moat is its ability to go beyond simple monitoring to provide concrete answers and even automate problem resolution through advanced AI. This makes it an indispensable enabler of "digital perfection" in the cloud-native era. The business economics are superior: it maintains a massive Annual Recurring Revenue (ARR) of $1.734 billion and an exceptional non-GAAP operating margin of 29%. Dynatrace is a compounding machine, generating strong Free Cash Flow ($431 million in FY2025) which it uses to fund a share repurchase program.

Pitch Summary:
Thermo Fisher was another notable underperformer, declining sharply during the quarter despite reporting solid operating results. The company lowered full-year guidance due to tariff-related macro weakness and uncertainty around National Institutes of Health funding delays, which have negatively impacted academic and government customers. Later in the quarter the position was sold after a deterioration in fundamental factors, with the manager concluding that current estimates left little room for positive earnings revisions. The company’s largest segment, lab products, is only beginning to face growth headwinds as large contract research customers and budget-constrained institutions scale back spending.

BSD Analysis:
Thermo Fisher is the undisputed, essential life science tools behemoth whose premium valuation is justified by its unmatched scale and high-margin consumables model. The core moat is its dominance in supplying critical instruments, reagents, and services to every major pharmaceutical, biotech, and research lab globally. The company operates a high-quality "razor and blade" model, where its installed base of instruments drives a massive, sticky revenue stream from consumables. Thermo Fisher's massive scale and financial strength allow it to execute disciplined, multi-billion-dollar M&A, continuously acquiring new technological moats and expanding its addressable market. This is a high-conviction core holding in the non-cyclical, long-term growth of global R&D.

Pitch Summary:
Fiserv was the largest detractor from portfolio performance even though it reported operating results with organic revenue growth exceeding expectations. The stock lagged due to slowing growth in its merchant acceptance segment, driven primarily by softer trends at Clover, the company’s cloud-based point-of-sale offering. Despite this, the manager remains encouraged by stability in Fiserv’s core merchant business and expects Clover to show reaccelerating growth in the second half of the year.

BSD Analysis:
Fiserv is a high-quality fintech giant executing a crucial strategic recalibration to unlock long-term value. The core thesis is a surgical cleanup: the company is divesting smaller, non-core businesses and consolidating its digital platforms (from 17 to one under Experience Digital). This streamlining, combined with increased CapEx spending (from $1.5 billion to $1.8 billion) to enhance its Clover platform, is designed to maximize long-term shareholder value. While a structural downturn in Argentina temporarily forced a revision of its organic growth guidance, the underlying business strength and high-ROI investments in Clover (expected to return to mid-to-high teens revenue growth) remain intact. Fiserv is a conviction bet on the successful integration and optimization of its core fintech assets.

Pitch Summary:
Apple’s shares declined during the quarter despite the company reporting solid operating results. The stock came under pressure due to concerns over decelerating iPhone sales, growth headwinds in China, and disappointment around details of Apple’s long-awaited AI strategy. Tariffs created an additional negative surprise, with the company quantifying a sizable cost impact from new measures. Furthermore, the latest developments in the Epic Games lawsuit raised questions about Apple’s absolute control over its App Store.

BSD Analysis:
Apple is the ultimate technology platform oligopolist, whose stock is a conviction bet on the durability of its ecosystem moat and the accelerating monetization of its high-margin Services segment. Services remained the key growth driver in Q3 FY2025, generating an all-time high of $28.8 billion in revenue, up 15% year over year. The company is financially unassailable, with a robust balance sheet ($132 billion in cash) and aggressive capital returns, giving back $24 billion to shareholders in the last reported quarter. Crucially, capital spending is increasing to support AI infrastructure and Private Cloud Compute expansion. The stock is a defensive compounder that amplifies per-share growth through buybacks against any near-term hardware volatility.

Pitch Summary:
Comfort Systems USA was another large contributor after reporting solid quarterly operating results. The company delivered an acceleration in organic revenue growth and highlighted attractive incremental margin opportunities. Importantly, management indicated that growth appears sustainable, with backlog growth accelerating and supporting a strong pipeline of future work.

BSD Analysis:
Comfort Systems USA is a high-quality, high-growth HVAC services oligopolist whose stock is a conviction bet on the non-cyclical, non-discretionary need for building efficiency and maintenance. The core moat is its massive, integrated network of over 45 operating companies across the United States, providing mechanical, electrical, modular, and plumbing systems. This service-oriented model provides a stable, recurring revenue stream. The company is actively compounding its value, recently increasing its quarterly dividend. Comfort Systems USA is a disciplined industrial compounder, focused on consistent, profitable growth through a combination of organic expansion and strategic acquisitions.

Pitch Summary:
Broadcom was the largest contributor to portfolio performance in the second quarter after reporting strong operating results and guidance. The stock benefited from ongoing investor enthusiasm for high-growth momentum companies and for those with meaningful exposure to artificial intelligence. Broadcom has been expanding its hyperscale and connectivity product portfolios, increasing revenue tied to faster-growing AI applications while offsetting a slowdown in its legacy semiconductor businesses.

BSD Analysis:
Broadcom is a high-margin, indispensable core supplier of AI infrastructure, whose stock is undergoing a structural re-rating. The core thesis is built upon two mutually reinforcing pillars: its AI hardware engines—dominance in AI networking chips (Ethernet switches) and its leadership in custom ASIC AI compute. Its near-monopolistic dominance in Ethernet switching (over 70% market share) makes it the de facto standard for building large-scale AI backend networks. The rapid growth of its high-margin segments (AI and software) is driving a profound optimization of its revenue mix, with EBITDA margin already exceeding 60%. Broadcom is the "pick-and-shovel" seller in the AI gold rush.

Pitch Summary:
During the quarter the portfolio initiated a new position in Balfour Beatty in the United Kingdom. The infrastructure and construction services company is expected to be a primary beneficiary of several priorities of the UK government, including accelerating infrastructure investment, upgrading the national power grid, and strengthening security and defense capabilities. These policy priorities should support a multi-year pipeline of projects for the company across its core competencies.

BSD Analysis:
Balfour Beatty is a deep-value, high-quality international infrastructure giant poised to capitalize on the massive, non-cyclical global spending on infrastructure. The core thesis is driven by the widely recognized multiplier effect: every £1 spent on construction generates £2.84 in total economic activity. The company is aggressively investing in modular design and offsite construction—a technological pivot that reduces labor needs, costs, and project timing. With governments worldwide committed to financing infrastructure projects (e.g., to stimulate economic growth during periods of low interest rates), Balfour Beatty's massive pipeline of complex projects in the UK and internationally secures its long-term revenue stream.

Pitch Summary:
The top contributor to portfolio performance was Celestica in Canada, which delivered a strong quarter on the back of continued robust demand from hyperscaler customers, particularly for 400G and 800G networking switches. Strong data center demand pushed operating margins to record levels and reinforced the company’s leverage to secular growth in cloud infrastructure and AI networking. Management continues to execute well against these end markets, and the company remains well positioned to benefit as spending on high-speed networking equipment expands.

BSD Analysis:
Celestica is a high-growth electronics manufacturing services (EMS) leader whose stock is a leveraged bet on the multi-year AI data center buildout. The core thesis is driven by a massive, structural shift: the company's Connectivity & Cloud Solutions (CCS) segment is indispensable for hyperscalers and AI customers, driving surging demand. This momentum has fueled an approximate 260% twelve-month gain. The company raised its 2025 revenue guidance to about $12.2 billion and is focused on driving margin and EPS targets higher. Analysts emphasize its deep integration in AI infrastructure, highlighting 12-15 months plus of committed customer visibility. Celestica is a powerful, high-conviction exposure to the non-discretionary CapEx of the AI era.

Pitch Summary:
Nabors Industries (NBR) has undertaken a multi-year transformation focused on leveraging their industry’s leading technology. It has over 450 patents and industry-leading drilling automation/robotics and smart apps. The recent Parker Wellbore acquisition more than doubles the NDS segment, expanding digital offerings. NDS has low capital intensity with 90% annual free cash flow conversion. Shares now trade at less than one times forward cash flow—near Covid-lows—due to commodity price fears and expected rig cancellations. Management guides to $60M in annual merger synergies and $200M+ FCF with accelerated debt reduction.

BSD Analysis:
Nabors is a high-tech drilling contractor wrapped in an old-school energy name. Its rigs and automation technology are among the most advanced in the industry, giving it leverage to any North American drilling recovery. Debt is the elephant in the room, but the business is structurally improving as supply/demand tightens. International expansion adds another growth vector. When the cycle turns, Nabors’ operational leverage is explosive. Investors treat it like a relic, but the technology roadmap is anything but outdated. This is a risky, torque-heavy bet on global drilling demand.

Pitch Summary:
JELD-WEN is a leading North American and European manufacturer and distributor of interior and exterior doors and windows. The share price continued to be under pressure due to ongoing housing weakness impacting revenues and profitability. Management took additional cost actions, which should amount to annual savings of $50M, along with $100M of estimated additional productivity savings for the year. EBITDA margins are at trough levels, but multi-year transformation efforts have reduced fixed costs by $350M. Liquidity remains strong with $500M of unused credit facility and $100M+ cash. Long-term potential sees double-digit normalized margins.

BSD Analysis:
JELD-WEN is a cyclical building-products name finally getting operational religion. Cost cuts, plant closures, and portfolio simplification are starting to move margins in the right direction. Housing softness hurts volumes, but the repair/remodel market remains a stabilizer. JELD-WEN has long traded at a discount to peers due to execution problems, yet the turnaround seems real this time. If management can prove consistency, multiple expansion follows. The business has more pricing power than investors think. This is a recovery story hiding inside a beaten-up housing proxy.

Pitch Summary:
Tutor Perini (TPC) shares were up 83%. We initially purchased TPC in the Fall of 2022, near $7/share, a deep discount to tangible book value. The Covid outbreak caused a significant delay in larger civil contracts, weighing on the company’s most profitable segment margins, causing a multi-year earnings trough. Over the past two years, management has successfully rebuilt the company pipeline, enhanced the balance sheet through significant debt reduction and is on track to return the company to normalized profitability. With a portfolio holding return over 400%, TPC is currently trading over two times book value and approaching 10x normalized earnings. We recently exited the position.

BSD Analysis:

Pitch Summary:
During the quarter, the strategy’s largest contributor was Gannett (GCI) up 24%, recovering a portion of its first quarter drawdown. Gannett remains significantly mispriced in our opinion at only .25x revenue and >50% normalized free cash flow yield. New York Times (NYT), which went through a similar digital transformation ten years ago, has a much higher valuation level, with a price-to-sales of 3x and Enterprise Value to EBITDA (EV/EBITDA) greater than 15x.

BSD Analysis:
Gannett is the newspaper zombie that refuses to die, and the market still hasn’t decided whether to laugh or pay attention. The legacy print business is melting, but digital subscriptions and events are starting to matter. Debt reduction has been grinding forward faster than skeptics expected. The company is still a turnaround mess, but operating leverage shows up quickly when revenue stabilizes even slightly. Local journalism isn’t glamorous, but the footprint is hard to replicate, giving Gannett optionality. If management can keep costs on a leash, equity upside is non-zero despite the doom narrative. This is a speculative contrarian play for investors with strong stomachs.

Pitch Summary:
Thryv Holdings Inc (THRY) – Thryv, our small and medium business software company that is also harvesting cash flows from a legacy business that is in runoff mode, declined approximately 40% from its February high until quarter end. The high price came in the wake of the company becoming “rule of 40” with greater than 100% net review retention, while the low price came in the wake of the company slightly cutting FY’25 guidance due to tariff uncertainty. The real issue here is the assumption that small and medium businesses will suffer in a recessionary environment, and the assumption that tariffs will lead to that recession. From my view, at current prices the stock is trading as if the business is imploding. Yet, according to the National Federation of Independent Business, small business optimism remains above its long-term average, which suggests that Thryv should be able to continue executing their playbook. To be fair, Thryv does need to prove to the market that they can shift their growth model from relying on the transition of legacy customers to their software and more toward relying on product led growth, and at this point we have limited visibility on that front. However, I gain some comfort from the announcement subsequent to quarter end that HubSpot’s (HUBS) former VP of Product is joining Thryv’s board. Presumably, he does not think the business is imploding either. Let’s hope that he brought some of HubSpot’s multiple with him, as HubSpot trades at more than 9x 2025 revenue, while Thryv trades at less than 2x 2025 SaaS revenue, giving no credit to the cash that the legacy business continues to generate.

BSD Analysis:
Thryv is the ex-yellow-pages zombie that refused to die and instead reinvented itself as a SaaS platform for small businesses—CRM, marketing automation, scheduling, the whole toolkit. It’s selling into a huge, fragmented market that’s still early in software adoption, which gives it runway but also creates brutal customer-acquisition physics. The thesis is that Thryv can use its legacy relationships and distribution muscle to onboard SMBs more efficiently than pure-play start-ups. Revenue growth has been solid, and the SaaS mix is steadily improving margins, but churn and unit economics must stay under tight control. This is a leverage-to-execution story: if they keep proving that cohorts stick and expand, the model works. If churn creeps up, you’re back to questioning whether this is a tech company or just the last gasp of an old directory business. The jury is leaning positive, but still watching closely.

Pitch Summary:
Vistry Group PLC (VTY.L) – Vistry, our asset-light U.K. homebuilder, remains in the penalty box after the winding down of its traditional homebuilding business led to accounting problems in the 2nd half of 2024. Further challenges came from affordable housing starts being down 35% in the 2023/24 period as the existing funding program approached its sunset. However, the U.K. government recently announced a new series of grants to local authorities, housing associations, and developers to focus on low-income housing, which will total £39B over 10 years. This is an improvement from the previous program, which was £11.8B over 5 years. This funding should benefit Vistry in the 2nd half of 2025 and into 2026, and power the company a long way toward their intermediate term goal of reaching $800M in operating profit. The market seems to think this goal is not attainable, but at a discount to tangible book value, Vistry could fall well short of its goals, and we should still be rewarded. I do think this goal is attainable, and if it is, we should be rewarded with multiples of our current investment with time.

BSD Analysis:
Vistry is the UK housebuilder that bet the farm on a partnerships model—selling a big chunk of output to housing associations and public-sector partners rather than just private buyers. That strategy has given it volume and some resilience in a brutal mortgage market, but profits and investor trust have been hammered by cost overruns and repeated guidance cuts. The long-term logic is sound: government-backed demand for affordable and social housing isn’t going away, and Vistry now has scale and relationships that are hard to replicate. The short term is much messier, with margins under pressure and the balance sheet needing kid-glove treatment. If public funding and rates stabilize, Vistry’s completions and profitability can look far better than the last two years suggest. But this is not a low-drama name; it’s a cyclical with political risk layered on top. You buy it if you think the partnership model wins out over time and you can stomach the ride.

Pitch Summary:
PAR Technology Corp (PAR) – PAR, our restaurant and convenience store technology company, continues to grow revenue while keeping costs nearly flat. The first half of the year was characterized by multi-product customer wins that will bear fruit later this year. The second half of the year should see an acceleration of the Burger King rollout, as well as other large wins. CEO Savneet Singh recently indicated that the customer pipeline is bigger than it has ever been, and additional M&A is likely at some point.

BSD Analysis:
PAR is the restaurant tech stack in a box: cloud POS, ordering, loyalty, and payments under the Brink umbrella. It’s a pure play on multi-unit and fast-casual chains ripping out legacy systems that can’t handle delivery, mobile ordering, and data-driven operations. Once PAR is embedded, churn is low because ripping out your POS is surgery, not a haircut. The company has leaned into an open, API-friendly architecture, which plays well with modern restaurant operators who hate vendor lock-in but still want an integrated core. Gross margins and recurring revenue have been trending the right way as the SaaS mix grows. The risk is execution bloat and the eternal temptation to overbuild the product instead of monetizing what they already have. If they keep the focus sharp, PAR looks like one of the better restaurant digitization plays out there.

Pitch Summary:
NextNav Inc. (NN) – NextNav, which is our next-gen GPS and spectrum company, continues to march the ball forward in their quest to have the FCC greenlight their spectrum for 5G use. I continue to believe that the odds of NextNav succeeding are very favorable. This belief comes from the obvious, such as reading FCC filings where NextNav is specifically named, but also from more and more articles highlighting the vulnerabilities of the existing GPS system and the National Security needs of the United States. Additionally, it is hard to interpret the official FCC Twitter/X account re-tweeting articles written by NextNav’s CEO as a bad sign, and perhaps most important is reading the tea leaves and digging up the scuttlebutt surrounding the various personalities involved behind the scenes. None of this stuff goes in the spreadsheet, but all of it suggests that a Notice of Proposed Rule Making (NPRM) that supports FCC Chairman Brendan Carr’s stated goals of freeing up spectrum and focusing on National Security and First Responders will be forthcoming. Carr is clearly passionate about these goals, but he lacks the budget to independently see them through. NextNav is the only solution that tackles these problems with no cost to taxpayers. Assuming an NPRM, I suspect that NextNav will find a way to monetize their spectrum in some sort of partnership or transaction with one of the mobile network operators at prices significantly higher than where shares trade today. Comparable transactions have taken place at a wide range of prices, and anything from $35-$60 per share is within the reasonable realm of possibility, although history has shown that crazy things can happen in spectrum land.

BSD Analysis:
NextNav is building the “3D GPS” layer that traditional satellite-based systems can’t deliver—precise vertical location for dense urban and indoor environments. Its Pinnacle platform is already being baked into public safety and 911 systems, where knowing which floor someone is on is literally life-or-death. That gives NextNav a wedge into critical infrastructure and national-security conversations, not just consumer apps. The business model is part spectrum asset play, part SaaS-like geolocation service, which is a weird but powerful combination if scaled. Revenue is still early-stage, and the company lives on partnerships and government adoption cycles that take time. But if 3D positioning becomes “the new GPS” for key use cases, NextNav’s leverage is enormous. This is a speculative but highly asymmetric bet on the future of location.