Investment Pitches

Pitch Summary:
Oracle reported exceptional Q1 FY26 results that included an unprecedented upgrade to cloud infrastructure growth guidance. Oracle's stock surged ~40% the next day —rare for a company of this scale—driven by transformational cloud business projections. The upgraded trajectory could make Oracle Cloud (OCI) equal or larger than Google Cloud Platform by FY29-30, representing a dramatic shift from Oracle's traditional database business to major cloud and AI infrastructure provider. The explosive growth is underpinned by massive contract wins, particularly in AI training and inferencing. Oracle signed four multi-billion-dollar contracts with three clients in Q1, including what analysts believe is a $30B annual contract with OpenAI. Remaining Performance Obligations (RPO) surged 359% to $455B, providing unprecedented visibility for future revenue streams of OCI. Given the massive upgrade of guidance and the unprecedented visibility that the large increase in RPO provides, we are substantially lifting our already optimistic EPS estimates for 2030. More importantly, Oracle has rapidly evolved from a traditional software company to a major cloud hyperscaler and AI infrastructure provider, with three original committed contracts supporting a growth trajectory that few companies of Oracle's size have achieved. As a result, investors increasingly place Oracle in the same category as the so-called "Magnificent 7", rightly so, we think. Therefore, we maintain a large overweight position in Oracle.

BSD Analysis:
The manager presents an exceptionally bullish case for Oracle's transformation into a major cloud and AI infrastructure provider. The investment thesis is anchored by Oracle's explosive Q1 FY26 results, featuring unprecedented cloud infrastructure growth guidance and massive contract wins totaling billions in annual recurring revenue. The highlight is a reported $30B annual contract with OpenAI, demonstrating Oracle's competitive positioning in AI training and inference workloads. With RPO surging 359% to $455B, Oracle has secured unprecedented revenue visibility that supports aggressive growth projections. The manager believes Oracle Cloud Infrastructure could rival Google Cloud Platform by FY29-30, representing a dramatic business model transformation. This evolution from traditional database vendor to cloud hyperscaler justifies Oracle's inclusion among the "Magnificent 7" technology leaders, supporting the fund's large overweight position despite recent strong performance.

Pitch Summary:
Their recent upgrade of their long-term outlook provides growing evidence that Broadcom is progressively gaining share with their three XPU customers as they increase adoption with each new generation of those chips. As importantly, the strong commitment of the 4th big customer validates our initial investment case of Broadcom being THE prime beneficiary of the ramping up of AI-infrastructure due to the progress made in AI-Chips (XPUs), in networking and the strong position in corporate network software and infrastructure that are crucial to accommodate AI in corporate networks and companies in a broader context. Thanks to the breath of it's offering and the already deep integration in it's customers' IT stack, Broadcom is, in our view, better positioned than Nvidia to benefit from the next wave of AI rollouts. Given the strength in last few quarterly reports and the shift in the long-term growth drivers, we substantially increased our long-term estimates for Owner's Earnings. Our still somewhat conservative estimates leave more room for future upgrades.

BSD Analysis:
The manager presents a compelling bull case for Broadcom as a prime AI infrastructure beneficiary. The thesis centers on Broadcom's diversified AI exposure through XPU chips, networking solutions, and corporate software infrastructure. The fund highlights Broadcom's competitive advantage over Nvidia due to its broader product portfolio and deeper customer integration. Recent customer wins, including a fourth major client commitment, validate the investment thesis and support upgraded long-term earnings projections. The manager's decision to increase position size following strong quarterly results demonstrates conviction in the company's AI-driven growth trajectory. Broadcom's integrated approach to AI infrastructure positions it well for the next wave of enterprise AI adoption.

Pitch Summary:
U-Haul also detracted from performance for the quarter and for the year. The company continues to invest its cashflow to build out its self-storage business. Self-storage real estate investment trust (REIT) analysts are accustomed to evaluating the economics of this part of the business with initial capital investment followed by low occupancy until a location matures and produces strong recurring revenue at higher occupancy. Because U-Haul also has a truck rental business, the company does not cleanly fit into a sector category, and it is not widely followed by analysts. We appreciate the disciplined capital allocation that U-Haul's leaders continue to demonstrate.

BSD Analysis:
Yacktman maintains a bullish stance on U-Haul despite recent underperformance, viewing the company's strategic investment in self-storage expansion as a value-creating long-term initiative. The fund recognizes that U-Haul's dual business model creates analytical complexity that leads to limited Wall Street coverage and potential mispricing opportunities. Management's disciplined approach to reinvesting cash flows into self-storage development follows a proven REIT playbook of initial capital deployment, gradual occupancy ramp-up, and eventual high-margin recurring revenue generation. Yacktman appreciates that the market may not fully understand or properly value this transformation given U-Haul's hybrid business model spanning truck rentals and real estate. The fund views the current weakness as temporary, reflecting the investment phase rather than fundamental business deterioration. This investment aligns with Yacktman's preference for companies with strong capital allocation discipline and management teams focused on long-term value creation rather than short-term earnings optimization.

Pitch Summary:
Bolloré was a detractor for the quarter but the underlying thesis is very much intact. Just a few years ago, Bolloré was a complicated conglomerate that had high leverage, an African port and logistics company, a European freight forwarding company, ownership in Vivendi SE, and ownership in Universal Music Group N.V. Today, the company has simplified its holdings to Vivendi and Universal Music Group plus significant net cash on the balance sheet from the sale of non-media assets. Universal Music group continues to be a strong component of value, and it is expected to be listed in the U.S. later this year or early next year. We believe that Bolloré's net asset value (NAV) is worth mid-teens, and with the current share price in the mid-single digits, the investment represents an extremely attractive value. Meanwhile, the company continues to make moves to further simplify its structure.

BSD Analysis:
Yacktman maintains conviction in Bollore despite recent underperformance, viewing the company as a compelling sum-of-the-parts value opportunity trading at a significant discount to net asset value. The fund appreciates the dramatic transformation from a complex, leveraged conglomerate with diverse African logistics and European freight operations to a simplified media-focused investment vehicle. The portfolio now centers on high-quality assets including Vivendi and Universal Music Group, with a strengthened balance sheet featuring significant net cash from strategic divestitures. Yacktman sees particular value in Universal Music Group, anticipating its U.S. listing as a potential catalyst for value realization. The manager estimates Bollore's NAV in the mid-teens while shares trade in the mid-single digits, representing substantial upside potential. The ongoing structural simplification efforts provide additional confidence in management's commitment to unlocking shareholder value. This investment exemplifies Yacktman's expertise in identifying undervalued transformation stories where market complexity obscures underlying asset value.

Pitch Summary:
Samsung has been a solid contributor to performance after having detracted from results last year. The company announced its first design win with Nvidia for high bandwidth memory (HBM) chips this quarter. Samsung was late to the artificial intelligence (AI) party, and this milestone validates its position in the HBM chip market. Memory chips can be found in a vast array of end products, from data center servers to automobiles and refrigerators. There is a finite production capacity for dynamic random-access memory (DRAM) and a small number of players who can provide these components. Samsung remains a leader in semiconductor fabrication and benefits from its locations that are not in Taiwan (South Korea and Texas). Samsung is also enjoying tailwinds from the continued regulatory improvements in South Korea, a trend that we believe will continue to unfold as governance and market access improve.

BSD Analysis:
Yacktman presents a compelling turnaround story for Samsung Electronics, highlighting the company's recovery from previous underperformance through strategic positioning in the AI semiconductor market. The fund emphasizes Samsung's recent design win with Nvidia for high bandwidth memory chips as validation of its competitive position in the critical HBM market. The manager appreciates Samsung's geographic diversification advantage with fabrication facilities in South Korea and Texas, reducing Taiwan concentration risk that affects many semiconductor peers. The investment thesis is strengthened by structural supply constraints in DRAM production and Samsung's leadership position among the limited number of capable suppliers. Additionally, Yacktman sees ongoing regulatory improvements in South Korea as a positive catalyst for enhanced corporate governance and market access. The fund views Samsung as well-positioned to benefit from the AI infrastructure buildout while offering attractive risk-adjusted returns. This represents a classic Yacktman value play where the market has underappreciated the company's strategic positioning and fundamental improvements.

Pitch Summary:
Dexcom is a medical device company that helped pioneer the design and development of continuous glucose monitoring systems (CGMs). The company has been under pressure since posting unexpectedly bad results in the second quarter of 2024, despite improving or at least stabilizing revenues and operating profits since then. Recently, there have been concerns over accuracy issues with Dexcom's latest generation G7 continuous glucose monitor. The company is addressing the issue, but so far it's unclear whether these issues have impaired the brand and caused a loss of market share.

BSD Analysis:
The manager expresses concerns about DexCom despite its pioneering position in continuous glucose monitoring systems. The company has faced pressure since disappointing Q2 2024 results, and while revenues and operating profits have stabilized, growth momentum appears challenged. Recent accuracy issues with the latest generation G7 monitor represent a significant concern for a medical device company where precision is critical. The uncertainty around whether these issues have damaged the brand or caused market share loss creates ongoing risk for the investment thesis. CGM systems require high accuracy and reliability for diabetes management, making product quality issues particularly damaging. Competition in the CGM market has intensified, potentially limiting DexCom's ability to recover from these setbacks. This appears to be a quality company facing execution challenges and competitive pressures in a critical product cycle.

Pitch Summary:
Fair Isaac is a leading analytics and software company best known for its FICO credit score, widely used in consumer lending decisions. The stock sold off after the Federal Housing Finance Agency announced that lenders would be allowed to use competing credit-scoring products to determine a customer's credit-worthiness. Despite the challenge to FICO's longstanding dominance in mortgage credit scoring, management just made Fair Isaac's largest single-quarter stock buyback in history and raised guidance. We remain optimistic about the value of the company's data and its ability to monetize it.

BSD Analysis:
Despite regulatory challenges to FICO's mortgage credit scoring dominance, the manager remains bullish based on the company's data value and monetization capabilities. The Federal Housing Finance Agency's decision to allow competing credit-scoring products represents a meaningful threat to FICO's longstanding market position. However, management's confidence is demonstrated through the largest single-quarter stock buyback in company history and raised guidance. The FICO credit score remains deeply embedded in the financial system beyond just mortgages, providing defensive characteristics. The company's extensive data assets and analytics capabilities offer multiple monetization opportunities across various industries and use cases. The stock selloff may have created an attractive entry point for a high-quality franchise with strong competitive moats. This appears to be a temporary setback for a company with valuable data assets and multiple growth avenues.

Pitch Summary:
Wingstop is a franchisor and restaurant operator that specializes in cooked-to-order chicken wings in a fast-casual setting. The stock declined as its core lower-income consumer base remained under pressure. Against this backdrop, investors now expect a weaker upcoming quarterly report and a longer path before the company returns to positive comparable store sales.

BSD Analysis:
The manager expresses a bearish view on Wingstop due to pressure on its core lower-income consumer base and expectations for continued weakness. The company's reliance on lower-income consumers makes it vulnerable to economic pressures and reduced discretionary spending on dining out. Investors are anticipating a weaker quarterly report, suggesting near-term headwinds are expected to persist. The expectation for a longer path to positive comparable store sales indicates structural challenges rather than temporary weakness. Fast-casual dining faces increased competition and delivery cost pressures that can impact margins. The focus on chicken wings may limit menu diversification options compared to broader fast-casual concepts. This appears to be a consumer discretionary play facing headwinds from economic pressure on its target demographic and challenging industry dynamics.

Pitch Summary:
Axon Enterprise provides law enforcement and security technology solutions. After an impressive run of outperformance over the past few years, the company's stock lagged despite posting another quarter of robust growth and positive momentum in its new product development. Axon remains intensely focused on the development of innovative solutions to address all aspects of the law enforcement process and has made significant strides recently in the emerging areas of drones and potentially transformational AI-enabled solutions. In addition, Axon continues to expand its offerings outside of its traditional law enforcement area and has recently highlighted the significant opportunity that could lie in these new markets.

BSD Analysis:
Despite recent stock underperformance, the manager remains bullish on Axon Enterprise based on continued robust growth and innovation momentum. The company posted another quarter of strong growth while advancing new product development across multiple areas. Axon's expansion into emerging technologies like drones and AI-enabled solutions represents potentially transformational opportunities beyond traditional law enforcement tools. The company's comprehensive approach to addressing all aspects of the law enforcement process creates a sticky, integrated platform with high switching costs. The expansion beyond traditional law enforcement into new markets significantly expands the addressable market opportunity. Recent developments in drones and AI solutions position the company at the forefront of next-generation security technology. This appears to be a high-quality growth story with multiple expansion opportunities and strong competitive moats in the law enforcement technology market.

Pitch Summary:
Trade Desk is one of the largest independent advertising platforms in the world and helps customers place ads on the web, connected TV, mobile devices, and podcasts. The company reported earnings below expectations due to execution issues and increasing competition. Management has since outlined clear strategies to address execution issues, but shareholders remain concerned. We continue to support the stock due to Trade Desk's strong position in ad spending as the only independent player of scale that we believe can compete with large internet companies, along with its strong margins and cash flow, plus its attractive valuation.

BSD Analysis:
Despite recent execution challenges and earnings disappointment, the manager maintains a bullish stance on The Trade Desk based on its unique competitive positioning. As the only independent advertising platform of scale, TTD provides a critical alternative to large internet companies' walled gardens, addressing advertiser demand for platform independence. The company's presence across multiple channels (web, connected TV, mobile, podcasts) provides diversified exposure to digital advertising growth. Management has outlined clear strategies to address execution issues, suggesting the problems are fixable rather than structural. The strong margins and cash flow generation demonstrate the underlying business model's profitability and cash conversion. The attractive valuation following the recent selloff provides an opportunity to invest in a high-quality business at a discount. This appears to be a temporary setback for a structurally advantaged business in a growing market.

Pitch Summary:
MongoDB, a provider of database software, delivered strong earnings results with a positive outlook, driven by large U.S.-based enterprises choosing to build and expand applications on MongoDB's modern, document-oriented database.

BSD Analysis:
The manager is bullish on MongoDB based on strong earnings results and positive outlook driven by enterprise adoption. Large U.S.-based enterprises are increasingly choosing MongoDB's modern, document-oriented database platform for building and expanding applications, indicating strong market validation and competitive positioning. The document-oriented approach represents a modern alternative to traditional relational databases, particularly well-suited for cloud-native and AI applications. Enterprise adoption by large companies suggests the platform has achieved the scale, security, and reliability requirements for mission-critical workloads. The positive outlook indicates management confidence in continued enterprise momentum and market share gains. MongoDB's positioning in the database market benefits from the ongoing digital transformation and cloud migration trends. This appears to be a high-quality software play with strong enterprise traction and secular growth drivers.

Pitch Summary:
Insmed develops therapeutic products for patients with lung diseases. In the second quarter, the company received approval for its Brinsupri product to treat non-cystic fibrosis bronchiectasis, making it the first therapy available for a condition that affects up to 500,000 people. This milestone, combined with the positive readout of a trial for another company's treatment for pulmonary fibrosis, drove the stock's performance.

BSD Analysis:
The manager is bullish on Insmed following the approval of Brinsupri for non-cystic fibrosis bronchiectasis, representing a significant first-to-market opportunity. The therapy addresses a condition affecting up to 500,000 people with no previously available treatments, creating a substantial addressable market with limited competition. The first-mover advantage in this indication provides pricing power and market share capture potential. The company's focus on lung diseases and rare conditions aligns with areas of high unmet medical need and favorable regulatory pathways. The positive trial readout for pulmonary fibrosis treatment (though for another company) suggests broader validation of the therapeutic approach and market opportunity in lung diseases. The milestone nature of this approval represents a significant inflection point for the company's commercial prospects. This appears to be a rare disease play with first-mover advantage and substantial market opportunity.

Pitch Summary:
Alnylam is a leading company focused on developing gene-silencing technologies to address significant unmet medical needs. The launch of vutrisiran for transthyretin (TTR) amyloidosis exceeded expectations, with second-quarter sales coming in well above consensus expectations. The company also substantially raised its TTR sales guidance, which drove the stock higher.

BSD Analysis:
The manager is bullish on Alnylam based on the successful launch of vutrisiran for TTR amyloidosis, which significantly exceeded expectations. The company's leadership position in gene-silencing technologies (RNAi) addresses significant unmet medical needs, providing a large addressable market opportunity. Second-quarter sales for vutrisiran came in well above consensus, demonstrating strong commercial execution and market demand. The substantial increase in TTR sales guidance indicates management confidence in the product's trajectory and market penetration. Gene-silencing technologies represent a cutting-edge therapeutic approach with potential applications across multiple diseases. The outperformance versus expectations suggests the market may have underestimated the commercial potential of this therapy. This appears to be a high-quality biotech play with proven commercial success and a differentiated technology platform.

Pitch Summary:
Wynn Resorts is a global luxury resort and casino operator with flagship properties in Las Vegas, Macau, and other international markets. The company's stock performed well during the quarter as gaming operations in Macau showed steady improvement each month. This marks the first sustained recovery in the Macau property in quite some time – a positive sign, as the region accounts for more than half of the company's earnings. Moving forward, we expect continued improvement in Macau along with contributions from a new project in the United Arab Emirates to drive growth.

BSD Analysis:
The manager is bullish on Wynn Resorts based on the sustained recovery in Macau gaming operations, which represents over half of the company's earnings. The steady monthly improvement in Macau marks the first sustained recovery in quite some time, indicating a meaningful inflection point for the business. The geographic diversification with flagship properties in Las Vegas, Macau, and international markets provides multiple growth drivers. The upcoming project in the United Arab Emirates adds another growth catalyst to the investment thesis. Macau's recovery is particularly significant given its outsized contribution to earnings, and the sustained nature of the improvement suggests structural rather than temporary factors. The luxury positioning of Wynn's properties should benefit from the recovery in high-end travel and gaming. This appears to be a recovery play with multiple geographic catalysts driving future growth.

Pitch Summary:
Monolithic Power Systems, a semiconductor company specializing in power management, delivered solid earnings results driven by diversified end markets, while the company's outlook for market share in artificial intelligence (AI) data center applications improved during the quarter.

BSD Analysis:
The manager highlights Monolithic Power Systems' strong quarterly performance driven by diversified end markets and improving prospects in AI data center applications. The company's specialization in power management semiconductors positions it well for the growing AI infrastructure buildout. The diversified end market exposure provides stability while the AI data center opportunity offers significant growth potential. The improved outlook for market share in AI applications suggests the company is gaining competitive positioning in this high-growth segment. Power management is critical for AI data centers given their massive energy requirements, making MPWR well-positioned for this secular trend. The solid earnings results demonstrate execution capability across multiple markets. This appears to be a quality play on the AI infrastructure theme with defensive characteristics from diversified exposure.

Pitch Summary:
Powell Industries designs, manufactures and packages equipment and systems for the distribution, control and management of electrical energy and process control systems. The stock performed well last quarter due to the increasingly robust outlook for the company's solutions within the utility end market. We believe the company is well-positioned to capitalize on the ongoing strength of electrical and grid-related capital investment, and as a smaller player in this growing area, it stands out by providing more customizable switchgear solutions than its larger competitors. Additionally, the company has alluded to the potential for increased direct exposure to data centers, which could provide an incremental lever to future growth.

BSD Analysis:
The manager presents a bullish thesis on Powell Industries based on electrical grid modernization trends and competitive positioning advantages. The company benefits from robust utility end market dynamics driven by ongoing electrical and grid-related capital investment, providing a strong secular tailwind. As a smaller player, Powell differentiates through customizable switchgear solutions, offering superior flexibility compared to larger competitors in this growing market. The manager highlights potential data center exposure as an additional growth catalyst, expanding the addressable market beyond traditional utility applications. This combination of grid modernization trends, competitive differentiation, and data center optionality creates multiple value drivers. The investment case centers on market share gains in electrical infrastructure while benefiting from secular growth in both utility and data center capex. Powell appears positioned to outgrow the broader electrical equipment market through superior customer solutions.

Pitch Summary:
Rambus provides technology and chips to the computer memory industry. The company has some of the fastest technology solutions needed for the large-scale artificial intelligence (AI) data centers being built by the hyperscalers. We believe the company's evolution from a licensing and patent company into a full-fledged product company is progressing well, and we expect healthy growth as hyperscaler capital expenditures (capex) continue.

BSD Analysis:
The manager presents a bullish case for Rambus centered on the AI infrastructure buildout and successful business model transformation. The company provides critical high-speed memory technology solutions essential for large-scale AI data centers, positioning it at the center of the hyperscaler capex cycle. The strategic evolution from a licensing-focused model to a full product company represents a significant business model upgrade with higher growth potential and recurring revenue characteristics. The manager expects continued healthy growth driven by sustained hyperscaler capital expenditure trends in AI infrastructure. This transformation provides multiple expansion opportunities including higher margins, increased customer stickiness, and broader addressable market. The investment thesis combines secular AI growth trends with successful business model evolution. Rambus appears well-positioned to capitalize on the multi-year AI infrastructure investment cycle.

Pitch Summary:
Zurn Elkay Water Solutions is a diversified provider of specification-driven water management solutions. The company has continued to outperform broader non-residential construction trends and has navigated the unfolding tariff situation impressively thus far. This performance was on display in the company's most recent earnings report, which exceeded investor expectations across the board, and the stock reacted accordingly. We see recent new product launches and favorable legislation trends positively affecting Zurn Elkay's core institutional end markets, providing a nice tailwind to future growth.

BSD Analysis:
The manager presents a bullish thesis on Zurn Elkay based on superior execution relative to challenging market conditions. The company has outperformed broader non-residential construction trends, demonstrating resilient business model and market positioning. Management has effectively navigated tariff headwinds, suggesting operational flexibility and pricing power. Recent earnings results exceeded expectations across all metrics, indicating strong fundamental execution and operational leverage. The manager highlights multiple growth catalysts including new product launches and favorable legislative trends affecting institutional end markets. This combination of defensive characteristics with growth drivers creates an attractive risk-adjusted opportunity. The investment case centers on market share gains, product innovation, and regulatory tailwinds driving above-market growth in a challenging environment.

Pitch Summary:
Perimeter Solutions is a specialized chemical solutions provider to the fire safety and specialty products industries. Shares were propelled higher by an earnings report that highlighted impressive operating execution and notable contributions from recent accretive acquisitions. Perimeter also announced a new multi-year agreement with the largest customer of its fire-retardant business. We believe this showcases a business model that is less cyclical or variable than investors have previously expected. This has provided additional lift to the stock.

BSD Analysis:
The manager presents a bullish case for Perimeter Solutions based on strong operational execution and strategic positioning. The company demonstrated impressive operating performance while successfully integrating accretive acquisitions, indicating effective capital allocation and execution capabilities. The announcement of a multi-year agreement with their largest fire-retardant customer provides revenue visibility and validates the business model's stability. The manager emphasizes that this contract demonstrates lower cyclicality than previously perceived by investors, suggesting a re-rating opportunity. The combination of organic execution, successful M&A integration, and long-term customer contracts creates multiple value drivers. This represents a specialty chemicals play with improving business model predictability. The investment thesis centers on operational excellence and reduced business model volatility driving valuation expansion.

Pitch Summary:
Impinj provides radio frequency identification (RFID) chips for inventory and asset tracking. The company posted very strong revenue growth versus expectations for the quarter as the adoption of RFID broadened beyond the traditional use cases. Investors also have appreciated key margin and free cash flow improvement with licensing wins. We believe the long-term case for RFID remains strong, and we expect that Impinj should benefit from this theme.

BSD Analysis:
The manager presents a bullish thesis on Impinj based on strong fundamental execution and expanding market adoption. The company exceeded revenue expectations as RFID technology gains traction beyond traditional applications, indicating successful market penetration. Key operational improvements in margins and free cash flow generation, combined with licensing wins, demonstrate effective business model execution. The manager emphasizes the secular growth opportunity in RFID technology, positioning Impinj as a beneficiary of this long-term trend. The investment case centers on both near-term operational excellence and structural market expansion. The broadening adoption beyond traditional use cases suggests sustainable growth potential. This represents a technology-enabled growth story with improving financial metrics and expanding addressable market.