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 from traditional database provider to major cloud and AI infrastructure player. The investment thesis is anchored by explosive Q1 results featuring unprecedented cloud infrastructure guidance upgrades and massive contract wins, including a reported $30B annual OpenAI deal. Oracle's RPO surge of 359% to $455B provides extraordinary revenue visibility, supporting projections that Oracle Cloud could rival Google Cloud Platform by FY29-30. The fund substantially increased EPS estimates for 2030 following these developments. Management views Oracle's evolution as positioning it among the "Magnificent 7" technology leaders, justifying their large overweight position. The pitch emphasizes Oracle's successful pivot to AI infrastructure and cloud services, with committed contracts providing sustainable growth momentum few companies of Oracle's scale achieve.

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, highlighting the company's expanding market share with XPU customers and validation from a fourth major customer. The thesis centers on Broadcom's comprehensive offering spanning AI chips, networking, and corporate software infrastructure, creating deep customer integration that positions it advantageously against competitors like Nvidia. The fund increased position size following strong quarterly results and upgraded long-term growth drivers. Management's conservative earnings estimates suggest potential for future positive revisions. The investment case relies on Broadcom's diversified AI exposure and entrenched customer relationships driving sustained growth. Recent long-term outlook upgrades provide validation of the company's strategic positioning in the AI infrastructure buildout.

Pitch Summary:
The company posted total revenue comfortably ahead of expectations as results show strength across the board. AI and cloud are leading the charge, driven by an acceleration of growth to 39% for Azure and the remaining performance obligation (RPO) rose 35%, both in constant currency terms. Those strong growth trends indicate that artificial intelligence is driving a new wave of demand and that momentum is building on the commercial side as businesses rush to digitalize and adopt AI-powered services. Microsoft is the key port of call for many. But not only that. Also, the 365 consumer and personal computing side (including Windows and Xbox) enjoyed accelerating growth showing Microsoft's appeal across its sprawling business. Consumer Products and consumer cloud services grew 21%, driven by 9% more subscribers. Even the legacy-division More Personal Computing grew revenues by 9% and operating income by 33% (in CC), driven by advertising (up 20%) and gaming. While investors have been concerned about Microsoft's ploughing billions into data centers and AI infrastructure, those results show that those investments are paying off, and that Microsoft is firing on all cylinders. While we have trimmed our positions mildly, we maintain our overweight and it remains our largest position.

BSD Analysis:
The manager maintains a strong bullish position on Microsoft, emphasizing the company's broad-based strength across all business segments. The investment thesis centers on Microsoft's leadership in the AI and cloud transformation, with Azure growth accelerating to 39% and RPO increasing 35%, demonstrating strong enterprise demand for AI-powered services. The manager highlights Microsoft's position as the primary destination for businesses adopting AI and digital transformation initiatives. Beyond cloud success, the manager notes strength across Microsoft's diversified portfolio, including 21% growth in consumer products and cloud services, and even legacy divisions showing robust performance with 9% revenue growth and 33% operating income expansion. The manager addresses investor concerns about heavy AI infrastructure investments by pointing to strong results that validate the strategy. Despite mild position trimming for risk management, Microsoft remains the portfolio's largest holding, reflecting the manager's confidence in the company's ability to capitalize on the AI revolution across multiple business lines.

Pitch Summary:
The visit to BYD, the global leader in full-electric and hybrid vehicles, in China confirmed our investment case in full. The foundation of BYD's success lies in its deeply vertically integrated supply chain. BYD designs and manufactures key components in-house, enabling speed, control, and significant cost efficiencies. This combined with BYD's expertise in electronics and batteries (its origin as the world's largest mobile battery maker), gives it a unique edge in both performance and cost structure. With an estimated 15–25% cost advantage over legacy OEMs, BYD offers high-quality, competitively priced vehicles while sustaining gross margins comparable to best-in-class manufacturers like Toyota. In a segment where scale, integration, and battery tech determine winners, BYD stands out as the most complete and defensible EV platform globally. The stock price of the company undervalues the growth potential of the franchise.

BSD Analysis:
The manager presents a compelling bull case for BYD following a company visit that validated the investment thesis. The core argument centers on BYD's vertically integrated supply chain, which provides significant competitive advantages in the electric vehicle market. The manager highlights BYD's unique positioning as both an automotive manufacturer and battery technology leader, leveraging its heritage as the world's largest mobile battery maker. This dual expertise enables BYD to achieve an estimated 15-25% cost advantage over traditional OEMs while maintaining gross margins comparable to industry leaders like Toyota. The manager emphasizes that in the EV market, where scale, integration, and battery technology are key success factors, BYD possesses the most complete and defensible platform globally. The investment thesis suggests the current stock price fails to reflect the company's growth potential, positioning BYD as an undervalued leader in the global transition to electric vehicles.

Pitch Summary:
The latest quarterly results demonstrated again the lead of the company in the Ad-business and the success of it's business strategy. The Ad business continued to impress with revenues up 21% Y/Y. Going forward, Meta continues to see their ability to grow their revenue through a combination of driving up engagement and enhancing monetization driven thanks to improvements to their content recommendation systems that resulted in a 5% increase in time spent on Facebook, and 6% on Instagram. In particular, video time spent remains strong, with Instagram video time up 20% Y/Y globally. Clearly, Meta is leading the pack in advertising thanks to it's investments in AI and the improvements in ad-creation and management as well as growing user engagement. Given the latest results, we lifted our five-year revenue growth expectations from 10-12% to above 15% driven by faster user growth, increased time spent on the platforms and an improvement in ad performance/pricing. While next year PE rose from 21x to 28x since our entry into Meta, the growth outlook has improved significantly over that period, which leaves Meta with solid upside despite the outperformance since, according to our model.

BSD Analysis:
The manager maintains a bullish stance on Meta based on the company's dominant position in digital advertising and successful AI-driven improvements. The investment thesis highlights Meta's continued advertising revenue growth of 21% year-over-year, supported by enhanced user engagement metrics including 5-6% increases in time spent on Facebook and Instagram. The manager emphasizes Meta's competitive advantages in AI-powered content recommendation systems and ad optimization, which are driving both engagement and monetization improvements. Instagram video consumption growth of 20% demonstrates the platform's strength in high-value content formats. Based on these strong fundamentals, the manager has raised five-year revenue growth expectations from 10-12% to above 15%, driven by accelerating user growth, increased platform engagement, and improved ad pricing power. Despite the stock's valuation expansion from 21x to 28x PE since initial investment, the manager believes the improved growth outlook justifies current levels and provides continued upside potential.

Pitch Summary:
The company posted total revenue comfortably ahead of expectations as results show strength across the board. AI and cloud are leading the charge, driven by an acceleration of growth to 39% for Azure and the remaining performance obligation (RPO) rose 35%, both in constant currency terms. Those strong growth trends indicate that artificial intelligence is driving a new wave of demand and that momentum is building on the commercial side as businesses rush to digitalize and adopt AI-powered services. Microsoft is the key port of call for many. But not only that. Also, the 365 consumer and personal computing side (including Windows and Xbox) enjoyed accelerating growth showing Microsoft's appeal across its sprawling business. Consumer Products and consumer cloud services grew 21%, driven by 9% more subscribers. Even the legacy-division More Personal Computing grew revenues by 9% and operating income by 33% (in CC), driven by advertising (up 20%) and gaming. While investors have been concerned about Microsoft's ploughing billions into data centers and AI infrastructure, those results show that those investments are paying off, and that Microsoft is firing on all cylinders. While we have trimmed our positions mildly, we maintain our overweight and it remains our largest position.

BSD Analysis:
The manager maintains a bullish stance on Microsoft following strong quarterly results that exceeded expectations across all business segments. The investment thesis emphasizes Microsoft's leadership position in the AI and cloud transformation, with Azure accelerating to 39% growth and RPO increasing 35% in constant currency. The manager highlights Microsoft as the primary beneficiary of enterprise AI adoption and digitalization trends. Beyond cloud strength, the fund notes broad-based growth across consumer products (21% growth), personal computing (9% revenue growth, 33% operating income growth), and gaming/advertising segments. The manager addresses investor concerns about massive AI infrastructure investments, arguing results demonstrate these investments are generating returns. Despite mild position trimming for risk management, Microsoft remains the fund's largest holding with maintained overweight positioning. This represents the manager's highest-conviction AI and cloud infrastructure play.

Pitch Summary:
We visited ASML and some of it's key business partners in the Netherlands in September. We meet with Investor Relations and Peter Vanoppen who heads development of High NA EUV, the next generation technology for producing the most advanced chips. High NA EUV is key for ASML's future growth, and the level and speed of adoption was a major concern for analysts and a major headwind for the stock in recent quarters. We came away from the discussion with Mr. Vanoppen with the view that is very well on track regarding reliability and demand, and as importantly, it is further ahead than EUV was at the same stage of the development resp. market introduction. High NA EUV will be adopted because of it's cost advantage, lower production risks and higher flexibility. If players stay for too long with EUV they lose the flexibility (productivity) from High NA EUV and might miss the ability to compete for the next generation of high-end chips. For the upcoming 2NM-chips there will already be some limitations from using EUV. This means at some point customers will hit a brick wall and then will need to move to High NA EUV. While there is hardly any doubt about the direction of travel, timing is more open and depends on many factors. Regarding competitive market position we came away from the visit strongly convinced that the competitive position of ASML is almost unassailable, at least for the next 10-15 years. While ASML thinks that Chinese competitors will eventually develop Lithography technology like EUV, that alone won't make them competitive in the high end because they would have to develop the entire eco-system of suppliers, which is almost impossible in the quality needed. Finally, the strive for shrink will continue and ASML has a clear roadmap of how to support that until at least 2040. More importantly, as far as we can see, ASML's High NA EUV (and potentially Hyper NA EUV) will be the key technologies to achieve that. Hence, we see sustained double digit growth for ASML for a long time.

BSD Analysis:
The manager presents a highly confident bull case for ASML following an in-depth company visit and management meetings. The investment thesis centers on ASML's next-generation High NA EUV technology, which addresses previous investor concerns about adoption timing and competitive positioning. The manager emphasizes that High NA EUV is progressing ahead of the original EUV timeline and offers compelling advantages including cost benefits, lower production risks, and enhanced flexibility. The technology becomes essential for 2nm chip production, creating an inevitable migration path as customers will "hit a brick wall" without upgrading. The manager highlights ASML's virtually unassailable competitive moat, noting that potential Chinese competitors would need to replicate an entire supplier ecosystem—a near-impossible task. With a clear technology roadmap extending to 2040 and High NA EUV positioned as the key enabler for continued semiconductor shrinking, the manager projects sustained double-digit growth for ASML over the long term.

Pitch Summary:
The visit to BYD, the global leader in full-electric and hybrid vehicles, in China confirmed our investment case in full. The foundation of BYD's success lies in its deeply vertically integrated supply chain. BYD designs and manufactures key components in-house, enabling speed, control, and significant cost efficiencies. This combined with BYD's expertise in electronics and batteries (its origin as the world's largest mobile battery maker), gives it a unique edge in both performance and cost structure. With an estimated 15–25% cost advantage over legacy OEMs, BYD offers high-quality, competitively priced vehicles while sustaining gross margins comparable to best-in-class manufacturers like Toyota. In a segment where scale, integration, and battery tech determine winners, BYD stands out as the most complete and defensible EV platform globally. The stock price of the company undervalues the growth potential of the franchise.

BSD Analysis:
The manager presents a compelling bull case for BYD following an extensive company visit in China that validated the original investment thesis. The investment rationale centers on BYD's deeply vertically integrated supply chain providing significant competitive advantages in the electric vehicle market. Key differentiators include in-house component design and manufacturing, leveraging expertise from BYD's origins as the world's largest mobile battery maker. The manager highlights BYD's estimated 15-25% cost advantage over legacy OEMs while maintaining gross margins comparable to Toyota, demonstrating operational excellence. In the EV segment where scale, integration, and battery technology determine winners, BYD is positioned as the most complete and defensible platform globally. The fund believes the stock price undervalues the franchise's growth potential. This represents a high-conviction EV play with structural cost advantages and vertical integration benefits.

Pitch Summary:
The latest quarterly results demonstrated again the lead of the company in the Ad-business and the success of it's business strategy. The Ad business continued to impress with revenues up 21% Y/Y. Going forward, Meta continues to see their ability to grow their revenue through a combination of driving up engagement and enhancing monetization driven thanks to improvements to their content recommendation systems that resulted in a 5% increase in time spent on Facebook, and 6% on Instagram. In particular, video time spent remains strong, with Instagram video time up 20% Y/Y globally. Clearly, Meta is leading the pack in advertising thanks to it's investments in AI and the improvements in ad-creation and management as well as growing user engagement. Given the latest results, we lifted our five-year revenue growth expectations from 10-12% to above 15% driven by faster user growth, increased time spent on the platforms and an improvement in ad performance/pricing. While next year PE rose from 21x to 28x since our entry into Meta, the growth outlook has improved significantly over that period, which leaves Meta with solid upside despite the outperformance since, according to our model.

BSD Analysis:
The manager maintains a bullish stance on Meta following strong quarterly results that reinforced the company's advertising leadership position. The investment thesis highlights Meta's successful AI-driven strategy delivering 21% advertising revenue growth and meaningful engagement improvements across platforms. Key metrics include 5% increased time on Facebook, 6% on Instagram, and 20% growth in Instagram video consumption globally. The manager emphasizes Meta's competitive advantages in AI-powered ad creation, management, and content recommendation systems. Based on strong execution, the fund upgraded five-year revenue growth expectations from 10-12% to above 15%, driven by accelerating user growth and improved monetization. Despite valuation expansion from 21x to 28x PE, the manager believes improved growth prospects justify current levels with continued upside potential. This represents a high-conviction digital advertising play with AI-enhanced competitive moats.

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 based on its dramatic transformation into a major cloud and AI infrastructure provider. The investment thesis centers on Oracle's explosive cloud growth trajectory, with guidance upgrades suggesting Oracle Cloud Infrastructure could rival Google Cloud Platform by FY29-30. The manager highlights massive contract wins, particularly a suspected $30B annual OpenAI deal, demonstrating Oracle's success in capturing AI training and inference workloads. The 359% surge in Remaining Performance Obligations to $455B provides unprecedented revenue visibility and validates the sustainability of this growth trajectory. The manager emphasizes Oracle's evolution from a traditional database company to a legitimate "Magnificent 7" competitor, justifying premium valuations. Despite trimming the position for risk management after 60%+ gains, the manager maintains a large overweight allocation and has raised 2030 EPS estimates substantially, reflecting confidence in Oracle's ability to capitalize on the AI infrastructure boom.

Pitch Summary:
We visited ASML and some of it's key business partners in the Netherlands in September. We meet with Investor Relations and Peter Vanoppen who heads development of High NA EUV, the next generation technology for producing the most advanced chips. High NA EUV is key for ASML's future growth, and the level and speed of adoption was a major concern for analysts and a major headwind for the stock in recent quarters. We came away from the discussion with Mr. Vanoppen with the view that is very well on track regarding reliability and demand, and as importantly, it is further ahead than EUV was at the same stage of the development resp. market introduction. High NA EUV will be adopted because of it's cost advantage, lower production risks and higher flexibility. If players stay for too long with EUV they lose the flexibility (productivity) from High NA EUV and might miss the ability to compete for the next generation of high-end chips. For the upcoming 2NM-chips there will already be some limitations from using EUV. This means at some point customers will hit a brick wall and then will need to move to High NA EUV. While there is hardly any doubt about the direction of travel, timing is more open and depends on many factors. Regarding competitive market position we came away from the visit strongly convinced that the competitive position of ASML is almost unassailable, at least for the next 10-15 years. While ASML thinks that Chinese competitors will eventually develop Lithography technology like EUV, that alone won't make them competitive in the high end because they would have to develop the entire eco-system of suppliers, which is almost impossible in the quality needed. Finally, the strive for shrink will continue and ASML has a clear roadmap of how to support that until at least 2040. More importantly, as far as we can see, ASML's High NA EUV (and potentially Hyper NA EUV) will be the key technologies to achieve that. Hence, we see sustained double digit growth for ASML for a long time.

BSD Analysis:
The manager presents a highly bullish case for ASML following an extensive company visit and management meetings in the Netherlands. The investment thesis centers on ASML's next-generation High NA EUV technology, which addresses previous investor concerns about adoption timing and competitive positioning. Management meetings revealed High NA EUV is ahead of schedule compared to previous EUV development, with compelling cost advantages and flexibility benefits driving inevitable customer adoption. The manager emphasizes ASML's unassailable competitive moat, noting Chinese competitors would need to replicate an entire supplier ecosystem to compete effectively. ASML's technology roadmap extends to 2040 with High NA EUV and potential Hyper NA EUV as critical enablers for continued chip shrinkage. The fund projects sustained double-digit growth for an extended period. This represents a high-conviction semiconductor equipment play with dominant market position and long-term technology leadership.

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 centered on its strategic positioning in the AI infrastructure buildout. The thesis highlights Broadcom's expanding market share with existing XPU customers and validation from a fourth major customer, reinforcing the company's role as a key AI infrastructure beneficiary. The manager emphasizes Broadcom's competitive advantages through its diversified offering across AI chips, networking, and corporate software infrastructure, arguing this breadth provides superior positioning versus Nvidia for the next AI deployment wave. The deep integration within customer IT stacks creates switching costs and recurring revenue streams. Recent quarterly strength and upgraded long-term outlook have prompted the manager to raise Owner's Earnings estimates, though they maintain conservative projections allowing for further upward revisions. The investment case reflects confidence in Broadcom's ability to monetize the AI infrastructure boom across multiple product categories.

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 following transformational Q1 results that triggered a 40% single-day stock surge. The investment thesis centers on Oracle's dramatic evolution from a traditional database company to a major cloud hyperscaler and AI infrastructure provider. Key catalysts include massive contract wins, particularly a reported $30B annual OpenAI contract, and RPO growth of 359% to $455B providing unprecedented revenue visibility. The manager projects Oracle Cloud could rival Google Cloud Platform by FY29-30, representing extraordinary growth potential. The fund substantially increased EPS estimates for 2030 and maintains Oracle as a large overweight position. The manager believes Oracle deserves inclusion in the "Magnificent 7" category of mega-cap tech leaders. This represents a high-conviction transformation story with significant AI infrastructure exposure.

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 centered on its positioning as the primary beneficiary of AI infrastructure buildout. The thesis highlights Broadcom's expanding market share with existing XPU customers and validation from a fourth major customer, reinforcing the investment rationale. The manager emphasizes Broadcom's competitive advantage through its breadth of offerings across AI chips, networking, and corporate software infrastructure. Particularly noteworthy is the assertion that Broadcom is better positioned than Nvidia for the next wave of AI rollouts due to deep customer integration. The fund increased position size following strong quarterly results and upgraded long-term growth drivers. The manager's conservative earnings estimates suggest potential for further upward revisions. This represents a high-conviction AI infrastructure play with multiple growth vectors.

Pitch Summary:
On the 18th of September, Rieter announced details of the capital increase approved by the Board to acquire Barmag, Oerlikon's artificial textile fibre machinery division. The Board approved a capital reduction with a reduction in the nominal value of the 4.7 million existing shares, which went from a nominal value of CHF 5.0 per share to CHF 0.01. Subsequently, a capital increase in two tranches was approved with the issue of 116.8 million new shares at a price of CHF 3.43 in tranche A and the issue of 14.6 million shares at a price of CHF 5.31 in tranche B. The main shareholders, Peter Spuhler and Martin Häfner, owners of 33% and 10% respectively, subscribed their share in the two tranches of the increase. The increase enabled Rieter to raise CHF 477 million, which will be used to pay for the acquisition of Barmag. As can be deduced from the structure of the transaction, this capital increase was extremely dilutive for shareholders who did not participate in the increase and very attractive for those who did. Equam exercised its pre-emptive subscription rights in tranche A of the increase and purchased shares at CHF 3.43. At the same time, it sold the shares it held in its portfolio, which were trading at CHF 6.52, making a small arbitrage on the price. Rieter currently has a market capitalisation of 464 million, representing an EBITDA multiple of 3.9x normalised EBITDA for Rieter + Barmag. The company's leverage, considering the debt of both companies and the UBS loan for the acquisition of Barmag, is 3x current EBITDA and 2.1x normalised EBITDA.

BSD Analysis:
EQUAM participated strategically in Rieter's highly dilutive capital raise to fund the acquisition of Barmag, Oerlikon's artificial textile fiber machinery division. The fund executed a sophisticated arbitrage strategy by exercising pre-emptive rights at CHF 3.43 while simultaneously selling existing shares at CHF 6.52, capturing immediate value while maintaining exposure. The transaction structure was extremely favorable for participating shareholders, with major shareholders Peter Spuhler (33%) and Martin Häfner (10%) also subscribing to their full allocations, demonstrating insider confidence. The CHF 477 million raise enables Rieter to acquire a complementary business that expands its textile machinery capabilities into artificial fibers. Post-acquisition, the combined entity trades at an attractive 3.9x normalized EBITDA multiple with a market capitalization of CHF 464 million. While leverage appears elevated at 3x current EBITDA, this normalizes to a more manageable 2.1x based on normalized earnings power. The acquisition creates a more diversified textile machinery platform with enhanced scale and market positioning in the global textile equipment industry.

Pitch Summary:
During the quarter, we began investing in Domino's Pizza, the British company that operates the brand in the United Kingdom and Ireland. Domino's does not manage restaurants directly, as it acts as a master franchisee. Its revenue comes from the sale of raw materials to franchisees and the collection of royalties for the use of the brand, so its asset structure is very light and its operating risk relatively low. Domino's has the largest number of franchised pizzerias in the United Kingdom, a total of 1,378, which, compared to the 381 of its nearest competitors, shows its high market share. It plans to open around 600 new franchises in towns with fewer than 10,000 citizens, where its franchisees achieve higher average sales than restaurants in large cities. It is also considering launching a new brand, drawing on its powerful network of franchisees. We have begun investing in Domino's, taking advantage of the weakness of its share price, which has fallen 43% so far this year. Although employment remains stable and retail sales are steady, consumer confidence in the United Kingdom is very low. The possible tax increase in the Labour government's next budget, which comes on top of previous increases, has led many consumers to reduce their spending. In this context, sales volume has fallen slightly, but Domino's has continued to increase its market share in the pizza delivery segment (+5.6 pp to 53.7% share). First-half results reflected weak consumption, with like-for-like sales falling 0.1% and EBITDA falling 7.4%, much less than the decline in the share price. The company has ex-IFRS16 debt of 2.3x and offers an equity free cash flow yield of 9%.

BSD Analysis:
EQUAM initiated a position in Domino's Pizza Group during the quarter, capitalizing on a 43% share price decline driven by weak UK consumer confidence and potential tax increases. The manager views this as an attractive entry point for a dominant market leader with 1,378 franchised locations versus 381 for its nearest competitor, representing a commanding 53.7% market share in pizza delivery. The business model is particularly compelling as a master franchisee generating revenue through raw material sales and royalty collections, creating a capital-light structure with relatively low operating risk. Despite challenging macro conditions, Domino's has continued gaining market share (+5.6 percentage points) while maintaining operational resilience with only modest declines in like-for-like sales (-0.1%) and EBITDA (-7.4%). The company's expansion strategy targeting towns under 10,000 citizens, where franchisees achieve higher average sales, provides a clear growth runway with plans for 600 new locations. At current levels, the stock offers a 9% equity free cash flow yield with manageable leverage at 2.3x debt-to-EBITDA, presenting an asymmetric risk-reward opportunity as UK consumer conditions normalize.

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 conviction in U-Haul despite recent underperformance, viewing current weakness as a temporary result of heavy reinvestment in the self-storage expansion. The manager appreciates management's disciplined capital allocation strategy, reinvesting cash flows to build out higher-margin self-storage facilities that follow a predictable maturation curve from low initial occupancy to strong recurring revenue streams. The investment thesis benefits from U-Haul's unique dual-business model combining truck rental with self-storage, creating a misunderstood value proposition that doesn't fit neatly into traditional analyst coverage sectors. This analytical neglect potentially creates opportunity as REIT analysts focus on pure-play storage companies while transportation analysts miss the storage value creation. The manager views current investments as building long-term recurring revenue streams with attractive unit economics once locations reach maturity.

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 presents Bollore as a compelling value play undergoing successful corporate transformation from a complex, leveraged conglomerate to a simplified media-focused investment vehicle. The manager emphasizes the dramatic portfolio simplification, with Bollore divesting non-core African logistics and European freight operations to focus on high-quality media assets including Vivendi and Universal Music Group. The investment thesis centers on significant NAV discount, with management estimating mid-teens intrinsic value versus mid-single digit trading price. A key catalyst is the anticipated U.S. listing of Universal Music Group, which should unlock value and improve transparency. The company's strengthened balance sheet with significant net cash provides financial flexibility and reduces leverage concerns. Yacktman views this as a classic sum-of-the-parts opportunity where continued structural simplification should drive multiple expansion and value realization.

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 key catalyst is Samsung's first design win with Nvidia for high bandwidth memory chips, validating their competitive position after being initially late to the AI opportunity. The manager emphasizes Samsung's structural advantages including leadership in semiconductor fabrication, geographic diversification away from Taiwan risk, and exposure to the oligopolistic DRAM market with finite production capacity. The investment thesis is further strengthened by improving South Korean regulatory environment and governance reforms. Samsung's diversified end-market exposure across data centers, automotive, and consumer electronics provides multiple growth vectors. The manager views this as a quality semiconductor play benefiting from both cyclical recovery and secular AI trends.

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 conviction in U-Haul despite recent underperformance, viewing the company's strategic investment in self-storage expansion as disciplined long-term capital allocation. The fund recognizes that U-Haul's dual business model combining truck rentals with self-storage creates analytical complexity that results in limited Wall Street coverage and potential mispricing. The manager understands the self-storage investment cycle, where initial capital deployment leads to low occupancy rates before locations mature into high-margin, recurring revenue generators. This patient capital approach mirrors successful REIT strategies but within a diversified operating company structure. Yacktman appreciates management's focus on reinvesting cash flows into this attractive growth opportunity rather than pursuing short-term earnings optimization. The company's unique positioning across moving services and storage, combined with its disciplined capital allocation philosophy, creates a differentiated investment opportunity that may be undervalued due to its sector classification challenges.