Investment Pitches

Pitch Summary:
NU Holdings is transforming banking in Latin America with its digital platform, serving over 123 million customers with a low-cost freemium model. The company is monetizing through interchange fees, interest income, and cross-sells, with explosive growth and international expansion potential. Despite competition from traditional banks, NU's efficiency and focus on financial inclusion position it as a quality compounder.

BSD Analysis:
NU Holdings is at the forefront of digital banking innovation in Latin America, leveraging its platform to provide financial services to the underbanked. The company's ability to maintain low operational costs while expanding its customer base is a testament to its efficient business model. With a strong ROE of 28% and a high NPS of 90, NU has established a competitive edge through AI-driven credit underwriting and brand loyalty. While competition from established banks like Itaú presents challenges, NU's focus on inclusion and technological advancement offers a significant growth runway. The company's long-term potential is substantial, although current prices suggest a hold stance for now.

Pitch Summary:
KWEB provides exposure to the broader Chinese internet sector, which is poised to benefit from a potential shift in Chinese household savings into equities, supported by policy changes and a focus on shareholder returns.

BSD Analysis:
KWEB offers a diversified exposure to the Chinese internet sector, aligning with market momentum and favorable policy shifts. The potential inflow of Chinese household savings into equities could significantly boost the sector. Policy changes, such as slowing the IPO pipeline and encouraging buybacks, are creating a supportive backdrop. KWEB's focus on companies that are returning cash to shareholders through dividends and buybacks sets a floor for the ETF and enforces financial discipline. The ETF's valuation remains attractive, offering exposure to companies with growth potential and shareholder-friendly policies. This combination of factors suggests a sustainable rally rather than a short-lived uptick.

Pitch Summary:
Nestlé is currently undervalued, trading at a forward P/E ratio of 16× compared to its historical average of 21.5×. The company is a defensive compounder with a strong track record of resilience and growth, making it an attractive investment at this discounted valuation.

BSD Analysis:
Nestlé's diverse portfolio, including premium brands like Nespresso and partnerships with Starbucks, positions it well for steady demand across various categories. Despite currency headwinds and portfolio adjustments, the company's organic growth remains robust. The Swiss Franc's strength has impacted reported sales, but local-currency growth is healthy. Nestlé's focus on operational discipline, including share buybacks and strategic investments, supports its long-term growth prospects. The company's medium-term target of at least 4% organic sales growth, combined with share buybacks, suggests a baseline EPS growth rate of 6%.

Pitch Summary:
Flywire, another new position, is a good example of this. Flywire contracts with universities to allow their international students to pay tuition easily, in whatever currency they'd like. This sounds at first glance like a simple, commodity business that should have a lot of competition. But the reality is quite different, and Flywire's superior product for universities and students has resulted in huge market share for international student payments (if you search your alma mater plus "Flywire", chances are you will find a university portal directing international students to pay through Flywire). Our conversations with Flywire's university customers are universally positive, and in fact not just positive but effusive. University customers praise Flywire's high-quality customer support and willingness to solve problems (vs. unresponsive legacy vendors), large time savings for university staff (coming from multiple sources including fewer student inquiries about whether payments went through, automated back-end reconciliation with finance/ERP systems, automated payment reminders, etc.), lower pricing for and near-zero complaints from students, etc. Flywire also has one of our favorite business model characteristics, where the person selecting the product is a different person from the one paying for it (10+ years ago we were making big bets on Google and Mastercard using this logic); Flywire is picked by the university and is free to the university, whereas the student pays the fee through embedded FX pricing (higher than Wise, but still very reasonable for the service it provides). Flywire's stock price has been hit hard by uncoordinated but simultaneous student visa restrictions in Canada, the US, Australia, and to an extent the UK, which allowed us to enter at a low multiple. Being the child of international students to the US and a relative to family members embarking on their own international study journeys, I have a deep appreciation for the enduring desire to study abroad even in the face of obstacles, which increases as developing countries grow richer and can be fairly agnostic to international study country, shifting from countries with tighter restrictions to those with looser ones. This should in turn drive sustained growth for Flywire revenues – from student volume, tuition-driven price increases, as well as cross-selling new products (in the UK for example, Flywire is showing remarkable early traction in leveraging its trusted position in international payments to also take over the same university's domestic payments).

BSD Analysis:
The manager initiated a position in Flywire after the stock was hit by simultaneous student visa restrictions across multiple countries, creating an attractive entry valuation. The investment thesis centers on Flywire's dominant market position in international student payments, with superior product quality driving widespread university adoption. Customer feedback is "universally positive" and "effusive," highlighting superior customer support, significant time savings for university staff, and automated reconciliation capabilities that legacy vendors lack. The business model benefits from a favorable dynamic where universities select the product but students pay the fees through embedded FX pricing, similar to successful investments in Google and Mastercard. The manager believes visa restrictions are temporary headwinds, with long-term growth driven by increasing wealth in developing countries and students' ability to shift between study destinations. Revenue growth should come from multiple sources: student volume recovery, tuition inflation, and cross-selling opportunities, with early UK success in domestic payments demonstrating expansion potential. The manager's personal connection to international education provides conviction in the enduring demand for study abroad opportunities despite regulatory obstacles.

Pitch Summary:
Recently, two software companies we've tracked for years and owned in the past, Monday.com and GitLab, fell from >11x NTM sales at peak earlier in the year to 7x then 5x sales, and at 5x we bought positions in both, as well as added to our existing position in Braze, which traded as low as 3x. Sometimes it's best not to overcomplicate things. We are watching AI developments closely, have greatly benefited from AI tools to accelerate our own research process, and are keen to avoid AI losers; but here, contrary to market narrative, we simply don't think that these are AI losers, and the AI bear cases we've heard seem wrong or wildly far-fetched. The strategic position of GitLab for example (to an acquirer or standalone) seems in fact to be steadily increasing, as more code is created in tools like Cursor and Claude Code, which will then need to be managed, deployed, and secured via a DevOps platform like GitLab (which has only one relevant competitor, GitHub, already owned by Microsoft). Once an organization's code and software development process are in GitLab, the switching costs are enormous, especially relative to the quite low cost of $350 (Premium) or $1,200 (Ultimate, which has valuable security and compliance features) per engineer per year. GitLab would be an amazing acquisition for a large model provider like Anthropic or Google, cementing their control over the software development process at large enterprises and making their code generation tool (which by itself faces intense competition and risk of commoditization) far more grounded in total surface area used by developers and sticky.

BSD Analysis:
The manager established a position in GitLab after the stock declined from over 11x NTM sales to 5x sales, viewing the valuation compression as an attractive entry point. The investment thesis is built on GitLab's strengthening strategic position in the AI era, contrary to market concerns about AI disruption. The manager argues that increased AI-generated code creation through tools like Cursor and Claude Code will actually benefit GitLab, as this code still needs to be managed, deployed, and secured through DevOps platforms. GitLab operates in a duopoly with GitHub (owned by Microsoft), creating significant competitive advantages and high switching costs once organizations integrate their development processes. The pricing model is attractive at $350-$1,200 per engineer annually, creating substantial switching costs relative to the low absolute cost. The manager sees potential acquisition value for large AI model providers like Anthropic or Google, who could use GitLab to cement control over enterprise software development processes. This would make their code generation tools more sticky and grounded in actual developer workflows, addressing commoditization risks in AI code generation.

Pitch Summary:
Recently, two software companies we've tracked for years and owned in the past, Monday.com and GitLab, fell from >11x NTM sales at peak earlier in the year to 7x then 5x sales, and at 5x we bought positions in both, as well as added to our existing position in Braze, which traded as low as 3x. Sometimes it's best not to overcomplicate things. We are watching AI developments closely, have greatly benefited from AI tools to accelerate our own research process, and are keen to avoid AI losers; but here, contrary to market narrative, we simply don't think that these are AI losers, and the AI bear cases we've heard seem wrong or wildly far-fetched.

BSD Analysis:
The manager initiated a position in Monday.com after the stock declined from over 11x NTM sales to 5x sales, representing a significant valuation compression. The investment thesis centers on the belief that AI concerns are overblown and that Monday.com is not an AI loser despite market narratives suggesting otherwise. The manager views the current valuation as attractive for a software company they have tracked and owned previously. The position was established based on valuation discipline, buying only after the multiple compressed to their target range. The manager dismisses AI-related bear cases as "wrong or wildly far-fetched," suggesting confidence in the company's ability to adapt to or benefit from AI developments. This represents a contrarian bet against prevailing market sentiment regarding AI's impact on traditional software companies. The investment reflects the manager's opportunistic approach to buying quality software companies at compressed valuations during market dislocations.

Pitch Summary:
Broadcom is well-positioned to capitalize on the AI revolution, driven by its dominance in networking chips essential for AI data centers and its strategic expansion into custom AI accelerators. The company benefits from strong demand from hyperscalers and a robust software business, making it a unique and strategically essential player in the tech ecosystem.

BSD Analysis:
Broadcom's Q3 results highlight its exceptional performance, driven by AI-related demand and strong software operations. The company's semiconductor solutions segment, particularly its AI semiconductors, experienced significant growth, supported by innovative products like the Jericho4 Ethernet fabric router and Tomahawk 6 switch. Broadcom's custom AI accelerators, or XPUs, are gaining traction among hyperscalers seeking tailored silicon solutions. Despite concerns about customer concentration, Broadcom's strong relationships and high switching costs provide a competitive edge. The recent deal with a fourth hyperscaler further enhances its growth prospects, leading to increased revenue projections. While the stock trades at a premium, its cash flow generation and growth potential justify the valuation.

Pitch Summary:
VICI Properties offers a stable investment opportunity with its focus on triple net leases in the gaming and entertainment sector, providing consistent rental income with minimal operational costs.

BSD Analysis:
VICI Properties benefits from a robust portfolio of gaming and resort properties, primarily on the Las Vegas Strip, with significant revenue derived from MGM and Caesars properties. The company's strategy of issuing new stock has been accretive, enhancing shareholder value through increased dividends and revenue growth. Despite the potential risks associated with the concentration of properties in Las Vegas, VICI's rent escalation clauses tied to inflation provide a hedge against economic downturns. The company's resilience during economic challenges, such as the Global Financial Crisis, underscores its stability. Overall, VICI represents a less volatile investment in the leisure and gambling sector, offering a reliable income stream.

Pitch Summary:
Research Solutions is transitioning to a SaaS model, with its platform business benefiting from AI advancements. However, the transactions business faces challenges due to AI reducing the need for traditional research purchases. The company's stronger cash position and recurring revenue provide optionality, but the impact of AI on the business remains uncertain.

BSD Analysis:
Research Solutions is navigating a transition to a SaaS model, with its platform business gaining from AI-driven search capabilities. Despite this, the transactions segment is under pressure as AI offers 'good enough' alternatives to traditional research purchases. The company's financial position has strengthened, with more recurring revenue and cash flow, providing flexibility for potential M&A activities. The uncertainty surrounding AI's long-term impact on the business is a key consideration for investors. The company's ability to leverage AI for growth while managing the decline in transactions will be crucial for future performance.

Pitch Summary:
LiveRamp Holdings, Inc. is positioned as a leader in the data collaboration technology space, leveraging its neutral and scalable platform to address key industry challenges such as customer journey complexity, fragmented identity, and marketing inefficiency. The company's robust growth strategy focuses on expanding its market presence, increasing platform usage, and deepening technological leadership, making it a compelling investment opportunity.

BSD Analysis:
LiveRamp's platform is built on a foundation of strict neutrality and interoperability, which allows it to serve a global customer base effectively. The company's growth strategy includes expanding its direct customer base, increasing network density, and actively expanding channel sales efforts with crucial partners. LiveRamp's focus on identity leadership and market expansion positions it well to capitalize on the growing demand for data collaboration solutions. Additionally, the company's new pricing model is expected to attract mid-market customers and increase deal velocity, further driving revenue growth.

Pitch Summary:
The thesis argues that Tate & Lyle is now a structurally different business following a multi-year portfolio transformation that eliminated its commodity HFCS exposure and repositioned it as a mid-single-digit grower with >20% EBITDA margins. The 2024 acquisition of CP Kelco significantly expanded its capabilities in hydrocolloids and texturants, enabling deeper customer integration and higher-value formulation work, while offering substantial cost and revenue synergies that are already tracking ahead of expectations. Despite this shift toward specialty ingredients, the stock trades at commodity-like multiples—around 5× EBITDA and 8× FY28 earnings—due to investor skepticism following the surprise deal and sector-wide derating. With synergies, cost programs, and mix improvement pushing margins toward 23%, leverage falling below 1× by 2026, and a structurally stronger portfolio, the business merits at least a market multiple. The author sees a path to £10 per share on a 15× EPS multiple, implying significant upside with a near-zero probability the CP Kelco earn-out triggers. The combination of improved quality, stronger recurring “solutions” revenue, and a cycle recovery creates an asymmetric re-rating opportunity.

BSD Analysis:
Tate & Lyle’s current valuation fails to recognize how decisively the company has reshaped its economic profile, transforming from a low-quality refiner into a scaled specialty-ingredients platform with defensible IP, customer stickiness, and structurally higher returns. The CP Kelco acquisition materially accelerates this shift by adding a best-in-class hydrocolloids portfolio that is deeply embedded in customer formulations and notoriously hard to displace—raising both switching costs and wallet share per project. Early evidence suggests the integration is outperforming: synergy realization is ahead of schedule, cross-selling activity is expanding the opportunity set, and procurement benefits are flowing through faster than modeled. As mix shifts toward solutions-driven revenue, Tate & Lyle’s earnings become less correlated with crop cycles and commodity inputs, positioning the company for more stable mid-single-digit organic growth and margin expansion toward the low-20s. The balance sheet also moves from a perceived overhang to a source of optionality, with leverage dropping below 1× by 2026 and room for incremental bolt-ons or accelerated returns. Investor skepticism largely stems from legacy perceptions and the surprise nature of the Kelco deal, but the pro-forma business now compares more closely to premium European specialty-ingredient peers than to historical sugar processors. With a more resilient growth algorithm, higher-value portfolio, and increasingly visible FCF trajectory, Tate & Lyle offers a mispriced re-rating setup where execution is already tracking ahead of expectations.