Investment Pitches

Pitch Summary:
NSSC rebounded after management communicated that it is in a better position than competitors regarding tariffs and that the inventory drawdown at its distributors has largely run its course. Growth in the services segment remains resilient and should accelerate as hardware segment sales improve.

BSD Analysis:
Napco is a high-growth, specialized security pure-play whose stock is a conviction bet on the accelerating transition to a high-margin SaaS-driven recurring revenue model. The core moat is its dominance in providing security hardware (access control, intrusion, fire alarms) combined with its rapidly expanding StarLink mathbfCommercial} SaaS platform. This SaaS segment is the key catalyst, driving superior valuation multiples and high customer stickiness. The stock is a high-quality compounder leveraging its technological advantage to capture increasing recurring revenue from the non-cyclical public safety market.

Pitch Summary:
XMTR rebounded from a drawdown caused by tariff uncertainty. The company continues to report rapid growth with its largest accounts and demonstrate operating leverage. We expect that XMTR will ultimately benefit from the increased uncertainty around tariffs and supply chains.

BSD Analysis:
Xometry is a high-growth, AI-powered industrial marketplace whose value is locked in its ability to digitize the fragmented, multi-trillion-dollar manufacturing supply chain. The core thesis is driven by the company's AI-driven Instant Quoting Engine and its massive network of 10,000+ suppliers. This technological edge allows Xometry to instantly match complex manufacturing jobs (3D printing, CNC machining, fabrication) with the optimal supplier globally. The stock is a high-conviction play on the structural digital transformation of the global manufacturing sector, creating a powerful, scalable network effect.

Pitch Summary:
A particularly vivid example of capital discipline in action is Xavier Niel’s transformation of Millicom, the Latin American telecom operator, in which we acquired a position after he began to effect change. Upon building his stake, Niel replaced Millicom’s senior management and pushed through cost reductions of a third or more across both operating and capital expenditures, dramatically improving cash generation. He has also led a flurry of disposals, acquisitions, and partnerships that have sharpened the company’s strategic positioning. Although consensus expects revenue in 2025 to be marginally lower than in 2023, operating income is expected to rise 60%, margins by almost 10 points, and free cash flow from 0% to approximately 15% of revenue. This example demonstrates the potential when a high-agency owner applies rigorous capital discipline and insists on operational efficiency.

BSD Analysis:
Millicom is undergoing a clear owner-driven turnaround, with aggressive cost restructuring and asset optimization materially lifting profitability. A projected 60% rise in operating income and a jump to 15% FCF margins imply a dramatic shift in quality. The company trades at depressed emerging-market telecom multiples despite stabilizing revenue, improving balance-sheet strength, and structurally higher cash generation. Catalysts include continued portfolio rationalization, debt reduction, and expanding margins under Niel’s stewardship.

Pitch Summary:
Karnov Group, the information services provider, which we believe stands to be a major beneficiary of AI related workflows and Hemnet, the real-estate portal. Karnov is a high-quality, subscription-led business operating in a niche of legal and regulatory information services where customer retention is high, pricing power is strong, and barriers to entry are meaningful. In its core Nordic markets, it commands dominant market positions and 40%+ operating margins. The recent adoption of Karnov’s AI tools – priced at a 30% premium to standard licences – is accelerating revenue growth, as legal professionals see clear ROI from improved efficiency; the cost of a licence is a fraction of a junior associate’s salary. This makes Karnov one of the most compelling, tangible AI beneficiaries we have seen in public markets today. The company is also mid-way through integrating acquisitions in southern Europe that came with lower margins and slower growth. However, with clear synergy targets and group-wide cost savings, Karnov is on track to lift margins materially from 22% to 30%+. Product innovation, which had lagged in the new markets during integration, is set to accelerate over the next 12 months – supporting a recovery in revenue growth. Despite its stable cash flows and enjoying similar structural tailwinds, the shares trade at a steep discount to peers like Thomson Reuters – both on earnings and sales multiples – offering valuation upside as the benefits of AI monetisation and margin expansion become more visible.

BSD Analysis:
Karnov’s business model—mission-critical legal software with high switching costs—positions it to compound steadily, while AI-driven upgrades create incremental pricing power. Margin expansion toward 30%+ implies substantial operating leverage, and integration of Southern European acquisitions provides a clear structural improvement path. The company trades at a discount to global information-services peers despite similar defensibility and higher growth optionality. The adoption curve for its AI tools boosts ARPU and long-term retention, supporting mid-teens EPS growth. Catalysts include synergy delivery, accelerating innovation, and re-rating toward Thomson Reuters-like multiples.

Pitch Summary:
Flutter (+29%) reported solid results driven by its US FanDuel business. The company's North American segment posted robust expansion—with quarterly revenue up around +39% year-over-year and adjusted EBITDA growth of approximately +51%. FanDuel further solidified its dominance in the US market, capturing roughly 59% of net gaming revenue in newer states and expanding its lead in iGaming, thanks in part to successful new product offerings and platform improvements.

BSD Analysis:
Despite only a brief update, Flutter’s fundamentals show accelerating U.S. profitability, with FanDuel’s scale advantage cementing long-term dominance. The business benefits from structural tailwinds as more U.S. states legalize online betting, while its 39% revenue growth and 51% EBITDA expansion imply strong operating leverage. Industry data shows FanDuel as the clear market leader, supporting premium valuation multiples. Near-term catalysts include state launches, margin expansion, and increased cross-sell into iGaming. Higher interest in regulated markets and improving unit economics further de-risk the growth outlook.

Pitch Summary:
We recently met with the new CEO of GoEasy and came away with confidence that the long-term growth trajectory is still intact. In June they reached their $5B loan book target, which was 6 months ahead of schedule. They have now shifted discussions to attaining a $10B loan book. Demand for their products is exceptional. They keep diversifying their product set and will be launching a card product later this year. Their late-stage delinquencies are coming down month over month and their revenue yield should continue to improve through the year.

BSD Analysis:
GoEasy is a Canadian non-prime lender focused on installment loans and leasing, serving customers the banks don’t want. That makes it controversial, but also very profitable when done with discipline. The company has built out credit models, collections capabilities, and branch networks that give it a defensible edge in its niche. Credit risk is the main swing factor, especially in a downturn, but GoEasy has shown it can manage losses within a targeted range while still growing. Regulators and public opinion are permanent overhangs, and funding costs matter. Yet the demand for non-prime credit does not disappear. For investors comfortable with the business model, GoEasy offers a high-growth, high-ROE story with obvious risks attached.

Pitch Summary:
We have had a small investment in Tantalus since they reached commercialization of their TruSense Gateway technology, which is used by utilities to monitor their electrical grid. The recent news from Tantalus is that they have their first large order for their TruSense product which supports a fairly significant growth outlook and comes with recurring revenue. We will add to our position as their TruSense offering gains more momentum.

BSD Analysis:
Tantalus provides smart-grid and smart-meter solutions to public power and electric utilities, particularly smaller ones that need modern capabilities without massive custom builds. Its platform helps utilities monitor usage, detect outages, and integrate distributed energy resources. Regulatory and decarbonization pressures mean utilities have to modernize, and Tantalus gives them an approachable path to do that. Recurring software and service revenue is a growing piece of the mix. Sales cycles are long because utilities move slowly, but contracts can be sticky once signed. The name is small and not widely followed, but the theme—grid intelligence—is real. Execution and capital discipline will determine whether it scales into a more widely owned asset.

Pitch Summary:
We met with VHI management in June, and the focus of the discussion was on growth, margins, and outlook. They just announced the acquisition of Novari Health for $44M which matches their stated focus of growing their patient referral software. 90% of patient referrals are still done by fax/phone. Novari and VitalHub’s Strata software are seeing strong growth as this part of the healthcare system digitizes. They will be able to cross-sell Novari, as well as quickly improve their profitability. They have three AI products in R&D due to client demand. It will probably be in 2027 when these products are being rolled out in scale. Management noted they can fund meaningful acquisitions with current cash flow. Based on the above, they should get to $200M in revenue within 2-3 years and streamline acquired companies’ profit margins to ~35% EBITDA margins. This equates to ~$70M of EBITDA and a market cap of ~$1.6B, or about $28/share.

BSD Analysis:
VitalHub is a Canadian health IT company focused on software for mental health, community care, and hospital workflow management. Its products help providers manage patient flow, waitlists, and resources—pain points that only get worse as systems are stretched. The company has grown via acquisitions, rolling up niche vendors into a broader platform. The key is integration and cross-selling, turning a collection of tools into a cohesive suite. Healthcare software tends to be sticky once embedded, but sales cycles are slow and procurement can be political. If VitalHub keeps tightening its product stack and expanding internationally, it can quietly compound. It’s a classic small-cap roll-up in a structurally messy but growing niche.

Pitch Summary:
Enterprise closed their acquisition of Flex Energy Canada on May 8th. Their next quarter will include roughly 2/3rd of Flex’s quarter, which will give investors a glimpse into the profitability of the ~60 service contracts and 17 turbines in operation. Now Coastal GasLink and the LNG Canada export facility in Kitimat are operational, and the first ever shipment of Canadian LNG was sent to Asia at the end of June. Canada LNG is the lowest cost natural gas in the world, which supports significant demand during a time of constrained power supply. During our recent meeting with Enterprise most of the discussion was around expanding their power solutions in permanent installations. They plan on targeting the design & build companies like Stantec, where they’ll be involved early in the construction process. We expect the business to show significant strength in the second half of this year with strong Q3 and Q4 earnings in 2025.

BSD Analysis:
Enterprise Group is a small Canadian energy services and equipment company, providing rental and infrastructure services to resource projects. Its revenue is closely tied to upstream and midstream capex in Western Canada. When activity is strong, utilization and pricing improve quickly; when it slows, the business feels it fast. The company has been pushing more into specialized equipment and efficiency solutions, trying to differentiate from generic gear rental. Balance sheet and capital discipline are key in a cyclical, small-cap name like this. It’s the kind of stock that can look optically cheap at the top and distressed at the bottom. Definitely not one for investors who need smooth lines on a chart.

Pitch Summary:
Luxury goods is a meaningful weight in our growth benchmarks within the consumer discretionary sector. Here we exited longtime holding LVMH to fund the purchase of Switzerland’s Richemont. We believe LVMH’s restructuring efforts will take some time, while Richemont’s are recently completed and should lead to improving performance. Additionally Richemont, known for its Cartier, Van Cleef, Buccellati and ultra luxury watch brands, has been an outlier in the luxury industry by not yet aggressively raising prices.

BSD Analysis:
Target is a compelling contrarian value play in the retail sector, trading at a deep discount despite a best-in-class operational moat that is still accelerating. The stock's current low valuation, at roughly 10.8x forward P/E, is a gross mispricing compared to peers and its own historical multiple, driven by short-term pressures in discretionary sales. However, Target's unique competitive advantage—the "stores-as-hubs" omnichannel model—is structurally sound, fulfilling over 80% of online orders within one day via Drive Up and Order Pickup services. This hybrid model converts its physical footprint into a high-margin logistics asset. The company's owned brands (generating over $30 billion in annual sales) provide a superior, high-margin buffer against raw price competition from Amazon and Walmart. Management is actively fortifying this moat by investing in sortation centers and aggressively utilizing a large $8.3 billion share repurchase authorization. This combination of operational efficiency, high-margin mix, and disciplined capital return positions Target for a significant multiple re-rating as consumer discretionary spending normalizes and the market recognizes its durable competitive edge.

Pitch Summary:
Canada’s Agnico Eagle Mines is a best-in-class gold miner that gives provides direct exposure to appreciating gold prices. The company operates only in stable jurisdictions, has industry-best cost inflation management, long-lived assets and balanced production growth financed with internal cash flows. Structural names like Agnico Eagle provide a unique growth exposure as gold is an attractive store of value that protects against uncertainty and inflation and that we believe can serve as a hedge against a weak dollar and geopolitical tensions.

BSD Analysis:
Agnico offers leveraged upside to gold in a high-uncertainty, inflationary macro regime while maintaining conservative balance sheet and jurisdictional risk. Its high-quality resource base and disciplined capital allocation support strong free cash flow even at mid-cycle gold prices. Ongoing optimization and brownfield expansions should sustain moderate production growth without stretching the balance sheet. The stock trades at a reasonable NAV multiple relative to peers given its superior cost curve position and asset quality. As investors seek inflation hedges and safe-haven exposure, Agnico’s premium could widen.

Pitch Summary:
New purchase E.On, a diversified German utility, should benefit from the government’s political consensus for higher investment in grid infrastructure. This commitment should also drive an improved regulatory environment for electricity networks with higher allowed returns to attract capital. In addition to higher returns, E.On should see accelerating asset growth as capex is increasing at a robust pace. We believe a strong balance sheet should further transform the company into a credible structural growth story in utilities underappreciated by investors.

BSD Analysis:
E.On offers a rare growth profile within European utilities, where rising grid capex and supportive regulation expand its regulated asset base and earnings power. Higher allowed returns, coupled with multi-year visibility on investment plans, should drive steady EBITDA and dividend growth. The balance sheet provides ample capacity to fund capex without dilutive equity issuance, enhancing equity holders’ leverage to the capex cycle. Despite this, the stock trades at only a modest premium to slower-growing peers. As investors re-rate structural grid stories, E.On’s valuation multiple has room to expand.

Pitch Summary:
U.K. supermarket chain Tesco, in the secular growth bucket, is a good example of a company focused on its home markets of the U.K. and Ireland. Shares sold off in March following widespread price cuts by a U.K. competitor, providing an attractive entry point into a company we believe is best positioned in an industry facing accelerating food inflation. While U.K. discounters have increased competition, Tesco can expand margins through investments in loyalty programs, scale-driven efficiencies and optionality from its wholesale distribution business.

BSD Analysis:
Tesco combines dominant scale with improving economics in a structurally attractive food retail market characterized by rising nominal spend from inflation. Its Clubcard ecosystem and data analytics should support mix upgrade and targeted promotions, underpinning gross margin resilience even as competition from discounters persists. Operating leverage from cost efficiencies and logistics optimization can drive steady EBIT growth and free cash flow. Valuation remains undemanding on a cash-flow and EV/EBITDA basis relative to defensive staples peers. With disciplined capex and a growing dividend, Tesco offers a compelling total return profile.

Pitch Summary:
Companies tied to increasing defense spending in Europe and Japan were also among the Strategy’s leading contributors. Mitsubishi Heavy Industries rose on the back of strong fiscal-year revenue and profit gains as well as a healthy outlook for the year ahead. The Japanese conglomerate maintains leading share in the secular growth areas of energy transition, infrastructure investment and the growing security responsibilities of U.S. allies. European aerospace and defense contractors Safran and Airbus also rose meaningfully on enhanced defense commitments across their core markets. At a June summit, NATO members pledged to increase defense spending to 5% of GDP, with Germany, France and the U.K. committing to raise defense outlays as the U.S. pulls back from its lead military role in the region.

BSD Analysis:
Mitsubishi Heavy Industries offers leveraged exposure to multiple secular themes: defense rearmament, energy transition and infrastructure renewal, all of which support a growing backlog and improving revenue visibility. The company’s diversified portfolio and leading market shares provide pricing power and scale-driven margin expansion potential. As Japan normalizes policy and defense budgets rise, earnings are poised to compound faster than recent history, yet the stock trades at a discount to global industrial peers on EV/EBITDA and P/E metrics. Capital discipline and a focus on higher-ROIC segments should further enhance free cash flow conversion. With geopolitical risk elevating demand for its capabilities, MHI’s risk/reward skew remains attractive.

Pitch Summary:
Our flexible approach to dividends enables us to invest in stocks with lower upfront yields, provided they offer compelling risk/rewards and the companies can significantly grow their dividends. This is how we got to own Broadcom and Oracle, two of the best AI plays around. We bought Broadcom at around a price/earnings of 11x in March 2020. Since then, we have taken profits at several points, but we still have a 3.4% position, making it our third-largest position. Broadcom has continued to perform well as its fundamentals strengthened, validating our decision to build the initial position when expectations were low. Reducing exposure as valuation multiples expanded was prudent, but Broadcom remains a key compounder in the portfolio.

BSD Analysis:
Broadcom’s diversified model — combining AI-enabling custom silicon with mission-critical enterprise software — supports resilient cash flow and sustained dividend compounding. Its semiconductor franchise benefits from hyperscaler capex and increasing AI workload intensity, while software assets deliver high recurring margins. Despite strong performance, valuation remains reasonable relative to long-term FCF growth. Management’s disciplined capital returns (dividends + buybacks) further bolster shareholder value creation. Broadcom remains one of the clearest beneficiaries of secular AI adoption.

Pitch Summary:
We also significantly increased our position in Exxon Mobil, as commodity weakness weighed on the shares, providing a compelling opportunity. Commodity prices are cyclical but the change underway at Exxon Mobil is secular. The company is simultaneously lowering its cost per barrel and reducing its emissions intensity while growing its production. This is a powerful combination that puts the company in its best position in decades. Exxon Mobil is positioned to deliver double-digit returns, even without any improvement in oil prices. If stagflation occurs, Exxon Mobil’s returns should be even higher, while most other stocks will come under pressure, providing a sturdy portfolio hedge.

BSD Analysis:
Exxon Mobil’s transformation centers on structurally lower breakevens, disciplined capex, and improved emissions efficiency, driving durable free cash flow through cycles. With upstream growth weighted to advantaged barrels and downstream/chemical integration enhancing margins, Exxon is well-positioned for double-digit ROCE. Shares trade at a discount to historical and peer EV/EBITDA despite a stronger balance sheet and higher through-cycle cash generation. Buybacks and dividend growth further support total return potential. In a stagflationary or volatile macro backdrop, Exxon’s inflation-hedging characteristics and operating leverage offer defensive upside.

Pitch Summary:
During the quarter we initiated a position in L3Harris, a defense company which had sold off on DOGE-related concerns. With armed conflict breaking out all over, robust defense spending seems like one of today’s few safe bets. L3Harris possesses a robust balance sheet and a strong outlook, and it offered an attractive entry point at a steep discount to the broader market in terms of free cash flow. The company’s positioning across mission-critical defense technologies provides stability and long-term visibility. This combination of attractive valuation, strong fundamentals and elevated global defense budgets formed the basis of our purchase.

BSD Analysis:
L3Harris stands to benefit from structurally rising global defense spending, supported by multi-year procurement cycles and increased geopolitical tensions. Free cash flow yields screen attractively versus peers, reflecting temporary sentiment-driven weakness rather than deteriorating fundamentals. Margin expansion opportunities tied to integration synergies and a more streamlined portfolio enhance medium-term earnings power. Backlog strength and a healthy balance sheet support continued dividend growth. With valuation at a relative discount, LHX offers asymmetric upside in a defensive sector with improving fundamentals.

Pitch Summary:
I sold OCSL after management had to admit three new non-accruals, including a 50% write-down on investment in Pluralsight alongside smaller hits at AT Holdings and Dialyze. Those impairments reduced the net asset value and demonstrated that an almost 80% first-lien book can still experience credit pressure, leaving earnings flat and my expected risk-adjusted return below the hurdle I set for core holdings. Management then waived $3.2 million of incentive fees, boosting net investment income by a penny per share to maintain the dividend intact. I appreciate that shareholder-minded step, but it also points to a thinner earnings cushion if base rates drift lower.

BSD Analysis:
OSCL is the BDC you want when credit markets get weird — disciplined underwriting, a conservative balance sheet, and the backing of a credit shop that’s built to thrive on volatility. Rising rates have juiced net interest income, and credit quality has held up far better than the market expected. Oaktree’s origination pipeline remains strong in private credit, where banks are pulling back and spreads are attractive. The company’s portfolio is shifting toward more secure, first-lien deals with superior recovery profiles. At its current discount, investors are getting paid handsomely for a risk profile that’s far cleaner than the BDC average. This is one of the most professional setups in a sector full of tourists.

Pitch Summary:
I fully exited CarMax after several years in which the share price stagnated while peers such as Carvana captured most of the market’s enthusiasm. CarMax long occupied a place in the portfolio as the scale player in US used vehicle retail, with proprietary auction data, nationwide reconditioning capacity, and a finance arm that historically captured a healthy share of the value chain. CarMax still needs to demonstrate that its significant investment in technology, reconditioning capacity, and finance operations can translate into faster unit growth and higher margins. The company still faces several other challenges, including elevated rates that pressure both consumer demand and the contribution from CarMax Auto Finance, high inventory carrying costs, and reconditioning expenses that weigh on gross profit. Additionally, new entrants continue to nibble at the share. Meanwhile, wholesale volumes remain depressed due to the tight supply of cars, and retail turnover remains muted.

BSD Analysis:
CarMax is still the dominant used-car retailer in America, and while macro headwinds hit volumes, KMX is emerging stronger thanks to ruthless cost discipline and better inventory turns. Its omnichannel model gives it a structural edge over both pure online players and old-school dealerships, and the company continues to deepen customer financing penetration through its in-house platform. Gross profits per unit remain resilient, proving consumers still trust the CarMax brand even when wallets tighten. The lending environment is stabilizing, wholesale margins are normalizing, and CarMax’s scale gives it superior buying power as smaller dealers fold. When the used-car cycle recovers, KMX’s operating leverage will kick like a mule. The market keeps underpricing this turnaround — but the fundamentals are quietly realigning.

Pitch Summary:
Cogent's share price was impacted following a couple of quarters of missing earnings, as investors lost patience with the length of time the Sprint wireline integration was taking. Although management has already captured the targeted $220m of cost savings, the integration work is still consuming time and operating expenses, and revenue has yet to inflect, leaving headline results soft and sentiment poor. Behind the noise, the wavelength build-out is gathering momentum. The funnel now sits at 3,433 orders. Importantly, Cogent can activate new wavelength circuits in as little as two weeks, versus the three-to-nine-month lead times typical of Lumen, Zayo, and others, a speed advantage that should translate into share gains as the backlog converts. Cogent aims to ramp up to a sustained pace of approximately 500 installations per month by year-end. Wavelength ARPU is roughly $1,930, with incremental EBITDA margins of over 90%, thanks to minimal variable costs, implying a potential run-rate incremental cash flow of over $100 million within a year. If those installations and associated cash flow fail to materialize over the next quarter or two, I will exit the position. However, for now, the market's focus on near-term integration headaches leaves ample upside once wave scale.

BSD Analysis:
Cogent is the bare-knuckle bandwidth provider that wins through sheer cost discipline and relentless pricing aggression. The Sprint wireline acquisition gave it a massive network footprint at a ridiculous price, and Cogent is already monetizing it more effectively than skeptics expected. EBITDA leverage is huge, churn is manageable, and Cogent continues to undercut competitors while maintaining margins. This is the scrappy telco that refuses to die — and keeps beating players much bigger than itself.