Investment Pitches

Pitch Summary:
One recent partnership investment that we think serves as an example of the undiscovered, undervalued, high-quality companies we seek is Dadelo S.A. (DAD.PW) which trades on the Warsaw Stock Exchange. We accumulated shares in Dadelo between November 2024 and February 2025 as a Top 5 position at an average cost of 23.27 zł. As of the end of this prior quarter, Dadelo’s shares had appreciated by +61% to 37.50 zł. At our time of purchase, we estimated that we were buying shares at 18x our estimate of 2024 net profit for a business that since 2017 has organically grown its annual revenues at a +39% CAGR, or by a factor of 11.7x, and is still currently growing its revenues at a rate of approximately +50% YoY. Dadelo is an omni-channel bicycle retailer that sells bicycles, parts, and accessories exclusively in Poland. Dadelo has won 7% share of Poland’s bicycle, parts, and accessories market to date, has become Poland’s #1 bicycle retailer, and has earned excellent reviews from customers on well-regarded websites such as Opineo.pl. We believe Dadelo has accomplished this by offering free 24-hour delivery for 95% of orders regardless of basket size, offering among the widest SKU selections, and offering among the lowest prices. Based on our research, it appears that Dadelo possesses a strong competitive advantage through its operational relationship with Oponeo, which provides state-of-the-art warehousing, technology infrastructure, and vendor management capabilities that would be extremely difficult for smaller competitors to replicate.

BSD Analysis:
Dadelo appears to be a smaller, under-followed consumer or commerce name, which typically means the opportunity and the risk both come from execution rather than macro magic. In these businesses, the key investment variables are unit economics (gross margin, fulfillment costs, CAC), repeat purchase behavior, and whether the brand or platform has any real defensibility. If management can scale profitably—especially by growing repeat customers and improving logistics—earnings can inflect quickly. If not, the stock becomes hostage to discounting, rising marketing costs, and working-capital pressure. Investors should focus on cash conversion, inventory discipline, and evidence of durable demand rather than top-line noise. Small caps can look cheap right before they dilute, so balance-sheet runway matters as much as the product. If the business is proving it can generate cash while growing, that’s when the story becomes investable.

Pitch Summary:
eDreams is a leading European online travel agency that has reinvented itself around Prime, a paid subscription launched in 2017 that now drives ~71% of revenue and over 7.2M members. Prime members book more often at lower acquisition cost, shifting the model from transaction-led to recurring, high-margin revenue. FY2025 Cash EBITDA reached ~€180M (+49% YoY) on €718M revenue as operating leverage kicked in; FCF was ~€100M, enabling deleveraging and ~€80M of buybacks (~9% of float). Management guides to €215–220M Cash EBITDA and >€120M FCF in FY2026, with Prime expansion from 10 to more countries within a 44-market footprint. Penetration is still low (~3.7% of EU households), leaving a long runway for subscriber and ARPU growth (incl. Prime Plus). At €8.27, shares trade near ~10–12× forward P/E and mid-single-digit EV/EBITDA, implying >100% upside if execution continues and the market re-rates the subscription economics. The model has proven resilient through recent macro volatility versus traditional OTAs. Management is channeling rising cash generation into buybacks and balance-sheet strengthening, with net debt/EBITDA trending toward ~1.6× and potential net cash by 2027–28. The pitch frames eDreams as a “value + growth” setup: subscription-style predictability at OTA valuations.

BSD Analysis:
Main risks are macro/travel shocks, competitive subscription responses from larger peers (Booking/Expedia), churn as cohorts mature, and EU regulatory noise. The bear case argues Prime’s growth could slow as early adopters saturate and marketing needs to rise to sustain net adds, pressuring margins; airline distribution disputes can also flare. Still, the cash inflection and buybacks provide downside ballast, and the first-mover subscription advantage (scale, data, tech) raises barriers for copycats. If FY2026 guidance is met, the multiple looks too low for a recurring, high-margin model; if growth wobbles, the current valuation already embeds caution.

Pitch Summary:
Tencent is a dominant Chinese digital platform anchored by WeChat/Weixin’s ~1.4B users and leadership in gaming, fintech (WeChat Pay), online ads, and cloud. The pitch argues the market undervalues Tencent’s core operations (ex-investments) at roughly a legacy-tech multiple despite accelerating monetization from WeChat Video Accounts, mini-program commerce, and a recovering ads cycle. AI is framed as a “growth multiplier”: Tencent’s HunYuan model and rising AI capex are already lifting ad CTRs, speeding content creation, improving game development, and enabling higher-value AI cloud services. Management is returning large amounts of capital via buybacks while margins sit near cycle highs; regulatory headwinds have eased versus 2021–22. Base case envisions steady WeChat ARPU growth, mid-single-digit gaming CAGR with global expansion, and improving cloud mix, taking EBIT from ~RMB 208B (2024) to ~RMB 299B in ~3 years. Upside case embeds broader AI deployment, pushing EBIT >RMB 390B and margins >40%, justifying a rerate. Investment stakes (~RMB 851B) offer additional SOTP support alongside optional divestments. Net, the setup is a durable compounder with asymmetric AI optionality and multiple paths to value realization.

BSD Analysis:
Key risks center on execution and policy: WeChat monetization could bump into user-experience limits as ad load rises; Douyin/Kuaishou competition may siphon ad budgets and attention. Gaming remains hit-driven; aging tentpoles, slower approvals, or new rules on monetization/time limits could crimp growth, while geopolitical scrutiny can hinder overseas M&A/publishing. Cloud price wars may cap margins even as AI workloads grow. China macro/regulatory shifts can reprice platform risk or push further stake divestitures that don’t yield cash. That said, low incremental CAC on WeChat, proven live-ops in games, improving ads signal, and material buybacks create downside buffers; AI-driven efficiency and monetization provide upside torque.

Pitch Summary:
SeaStar Medical is a small-cap medtech developing the Selective Cytopheretic Device (SCD) for immune modulation in critically ill patients. Its pediatric product (QUELIMMUNE) is FDA-approved under HDE and being adopted at children’s hospitals, while the adult AKI pivotal trial is 50% enrolled with interim data due late Q3 2025. Valuation is just $19M market cap with $10M cash, low burn, and warrants outstanding. Pediatric TAM is ~$100M with strong survival benefits, while adult TAM is $4.5B. Upside scenarios include 4–5x returns on adult approval, while downside is partially supported by pediatric business and NOLs. Risks include trial failure, capital raises, warrant overhang, and competition. Still, platform potential across AKI, cardiorenal, ESRD, and sepsis is large, with NIH grants and strong safety record. Pitch frames as asymmetric bet with limited downside.

BSD Analysis:
BSD case: ICU is a binary biotech-like play but with downside cushioned by pediatric approval and optionality. Market cap < $20M underprices platform optionality in multi-billion TAM.

Pitch Summary:
Ulta Beauty has a strong brand presence in the U.S., holding about a twenty percent market share in the cosmetics and fragrance industry. The company remains in a growth phase, and as such invests about a third of its operating cash flow into new store openings while returning the remainder of operating cash flow to shareholders in the form of stock buybacks. While the company had a free cash flow yield of only six percent when we took the purchased the stock, we believe that the company can effectively grow free cash flow per share through a combination of a high incremental return on capital for new store openings and share count reduction from stock repurchases.

BSD Analysis:
The manager presents a growth-oriented investment thesis on Ulta Beauty, highlighting the company's dominant market position with 20% share in the U.S. cosmetics and fragrance market. The investment case emphasizes Ulta's expansion strategy, with one-third of operating cash flow dedicated to new store openings that generate high incremental returns on capital. Despite a modest 6% free cash flow yield at purchase, the manager expects meaningful per-share growth through two key drivers: profitable store expansion and share count reduction via buybacks. The thesis reflects confidence in Ulta's ability to maintain market leadership while executing disciplined growth investments. The balanced capital allocation approach, splitting cash flow between growth investments and shareholder returns, demonstrates management's focus on long-term value creation. This pitch represents a quality growth play on a market-leading retailer with sustainable competitive advantages and clear expansion opportunities. The emphasis on per-share metrics suggests the manager values both organic growth and capital efficiency in driving shareholder returns.

Pitch Summary:
Altria is a mature business in the cigarette, cigar and smokeless tobacco industry with operating margins of about fifty percent. While the cigarette market in the United States is in decline, the smokeless tobacco market is experiencing growth, and as such the company has been able to hold revenues relatively steady over the past several years. We believe the company's stock to be reasonably priced with a free cash flow yield of just under ten percent and a dividend yield of almost seven percent, and the company has what we believe to be conservative capital allocation as it returns effectively all of its free cash flow to shareholders via stock buybacks and dividends.

BSD Analysis:
The manager presents a value-oriented thesis on Altria, emphasizing the company's exceptional profitability with 50% operating margins and attractive shareholder returns. Despite secular decline in cigarettes, the fund highlights revenue stability driven by growth in smokeless tobacco products. The investment case centers on compelling valuation metrics, with a nearly 10% free cash flow yield and 7% dividend yield providing substantial income generation. The manager appreciates Altria's disciplined capital allocation strategy, returning virtually all free cash flow to shareholders through dividends and buybacks. This pitch reflects a classic value play on a mature, cash-generative business trading at reasonable multiples. The thesis balances acknowledging industry headwinds with recognizing the company's ability to maintain financial performance through product mix evolution. The emphasis on conservative management and shareholder-friendly policies suggests confidence in sustained returns despite challenging operating conditions.

Pitch Summary:
IDN was pitched in December, at a time when there were no write-ups or X mentions. It was trading near historic lows despite landing major business from top-tier customers and benefiting from strong secular tailwinds. Since then, it has started to gain attention from high-profile social media figures. Among other points, the thesis emphasized that rising identity fraud reports, which are highly correlated with IDN's revenues two quarters ahead, combined with the company's expansion into new verticals, would lead to reaccelerating growth and inflecting margins. In short, with significant beats across the board starting in Q4, the company finally inflected after years of decelerating SaaS growth, even without Meta, the unnamed multinational social media company I suspect IDN will eventually sign. However, while identity fraud reports continue to rise, implying growth might pick up in the back half of the year, valuation

BSD Analysis:
The manager initiated a position in Intellicheck at $2.52 when the stock was trading near historic lows and garnering minimal attention. The core thesis centered on the strong correlation between rising identity fraud reports and IDN's revenue growth with a two-quarter lag, positioning the company to benefit from secular tailwinds in identity verification. The manager highlighted the company's success in landing major enterprise customers and expanding into new verticals as key growth drivers. IDN delivered on the thesis with significant earnings beats starting in Q4, marking an inflection point after years of decelerating SaaS growth. The position generated a 108% return, validating the contrarian entry timing and fundamental analysis. However, the manager is exiting due to valuation concerns despite continued positive fraud report trends that suggest potential growth acceleration in the latter half of the year. The thesis also anticipated a potential partnership with Meta, which has not yet materialized but remains a possible catalyst.

Pitch Summary:
ENDI's operational performance continues to be exceptionally strong, particularly within its CrossingBridge subsidiary. As of June 30, CrossingBridge's Assets Under Management (AUM) surpassed $4 billion, a substantial increase from $3.4 billion at the start of the year. The subsidiary publicly reports AUM on their website on a monthly basis at crossingbridgeadvisors.com. Earlier this year, ENDI sold 25% of CrossingBridge at a $104 million valuation. Consequently, you can think of ENDI's share of that current AUM to be $3 billion (75% of $4 billion). ENDI also has approximately $52 million in cash and investments as of the March 31, 2025 reporting period and adjusting for the post-quarter partial subsidiary sale. The company also carries $10 million of debt. Their current market cap is $85 million. At the current stock price of $16 per share, the market is valuing that $3 billion of growing AUM at $43 million. If we adjust for the valuation of the partial subsidiary sale, the market is pricing the CrossingBridge asset significantly lower than what sophisticated third-party investors paid earlier this year when AUM was 15% lower. The bottom line is that we continue to have a long way to go to for ENDI to get to fair value. And, as the company continues to perform well operationally, that fair value continues to increase as well.

BSD Analysis:
The manager presents a compelling value proposition for ENDI Corp based on a significant disconnect between market valuation and intrinsic worth of its CrossingBridge subsidiary. The investment thesis hinges on strong operational performance, with AUM growing from $3.4 billion to over $4 billion in just six months, demonstrating the asset management business's momentum. A recent third-party transaction valued CrossingBridge at $104 million when AUM was 15% lower, yet the market currently values ENDI's 75% stake at only $43 million despite higher AUM levels. The manager's sum-of-the-parts analysis reveals the valuation gap: ENDI trades at an $85 million market cap while holding $52 million in cash, $10 million in debt, and a growing asset management business worth significantly more than current market pricing suggests. The transparent monthly AUM reporting provides real-time validation of business growth and performance. With CrossingBridge continuing to scale and generate increasing fee income, the manager sees substantial upside as the market eventually recognizes the subsidiary's true value. The combination of strong operational execution and persistent undervaluation creates an attractive risk-adjusted opportunity.

Pitch Summary:
Liquidia has navigated a complex landscape for years, marked by patent disputes and FDA approval delays for their flagship drug, Yutrepia. Today, everything is about Yutrepia's product launch and their prospects to penetrate a previously monopolistic market. For Liquidia, that uncertainty has always been a buying opportunity. Shares are 200% higher today than our original purchase price more than three years ago. Yutrepia finally received FDA approval for Yutrepia in late May and officially launched soon thereafter. Interestingly, despite this significant milestone, Liquidia's stock price experienced a dramatic but temporary dip, falling from over $19 in early June to $12.46 by the end of the second quarter. This decline was primarily driven by investor apprehension regarding the initial commercial rollout and concerns about a potential competitor still years away from market entry. Since then, the narrative has rapidly changed again and today shares trade for nearly $18. Initial reports for Yutrepia's June prescription numbers are exceptionally strong and well above expectations. While it's still early days, this robust start validates our confidence in Liquidia management's sales force and their go-to-market strategy, confirming the significant unmet need Yutrepia addresses in the market. I first highlighted Liquidia in our Q4 2022 letter. The issues then were a variety of patent disputes with competitor United Therapeutics. To date, United Therapeutics has failed in each of those legal cases but had succeeded in delaying Liquidia's launch and FDA approval. Lawfare worked extremely well in this situation. There are still two long-shot legal challenges from United Therapuertics. Both of these cases are highly likely to be resolved in Liquidia's favor. But, as we have seen in this long saga, anything can happen. Fortunately, with Yutrepia now on the market, these legal tactics are far less impactful than before. Beyond legal issues, Liquidia shares had dropped in early June due to the announcement of a successful phase two trial from a potential future competitor. On June 10, 2025, a company named Insmed announced outstanding results for its experimental PAH therapy. Both Liquidia and United Therapeutics shares dropped in response while Insmed shares rose more than 40%. Insmed's drug, TPIP, is a dry powder treprostinil drug administrated via an inhaler and designed to be a once-daily treatment. As a reminder, Liquidia's Yutrepia delivers treprostinil via an inhaler three to five times a day. Obviously, all things being equal, a once daily treatment would be much more attractive to patients, which is why the results hurt Liquidia's stock price. However, a closer look, as pointed out by a Raymond James analyst, reveals potential issues with Insmed's trial design that may have artificially inflated the results. The analyst noted that the trial patients presented with more severe cases and appeared "under-treated at baseline versus key PAH studies, potentially favoring treatment response." This raises questions about the comparability and true efficacy of Insmed's findings. It's worth considering the timing of Insmed's $750 million stock offering following these Phase 2 results and whether that fundraising prospect played into the design of the trial. Regardless, Insmed still needs to conduct a Phase 3 trial, which isn't expected to begin until next year, followed by an FDA approval requirement. Even assuming a best-case scenario with strong Phase 3 results, TPIP is unlikely to reach the market for many years. By then, Liquidia's next-generation drug, L606, which has also shown very strong clinical trial results to date, is expected to be available. Is Insmed simply telling a good story at the moment, or are they are future threat to Liquidia? Only time will tell but my initial perspective is one of guarded skepticism. In the meantime, I am continuing to monitor Liquidia's Yutrepia launch. We have been rewarded for our patience over the past three years, despite several bouts of volatility. I continue to be optimistic in the company, its leadership, and the prospects for its stock.

BSD Analysis:
The manager maintains a bullish stance on Liquidia Therapeutics following the successful FDA approval and launch of Yutrepia, their flagship PAH therapy. The investment thesis centers on Liquidia's ability to penetrate a previously monopolistic market dominated by United Therapeutics, with early prescription data exceeding expectations and validating the go-to-market strategy. The manager demonstrates conviction through a three-year holding period that has generated 200% returns despite significant volatility from patent litigation and regulatory delays. Recent share price weakness from $19 to $12.46 was driven by investor concerns about competitive threats from Insmed's Phase 2 trial results, but the manager views this as temporary noise given Insmed's drug is years away from market entry. The analysis highlights potential flaws in Insmed's trial design and questions the timing of their $750 million fundraising, suggesting the competitive threat may be overstated. With Yutrepia now commercially available and Liquidia's next-generation L606 drug showing strong clinical results, the manager sees continued upside potential. The position benefits from reduced legal risk now that the product has launched, shifting focus to commercial execution and market penetration.

Pitch Summary:
Peloton was founded in 2012 and started selling their first product, an internet-connected stationary cycle, about two years later. The Peloton Bike was a high-end premium cycle for a mid-high-end price. The twist was that it was a connected bike, with a huge touch screen and a constant feed of live and on-demand classes of all sorts and all levels, led by mini-celebrity star instructors. Peloton paid star-level salaries to hire the best of the best, and pretty soon, a person could choose from thousands of past classes or join a live one, competing against others or just against themselves. Over time, Peloton added new products, such as the Peloton Tread, a high-end treadmill, and new classes, such as yoga or outdoor running. The Peloton hardware was definitely high-end and attracted a hard-core, cult-like following, which is of course quite positive for any consumer-oriented business. They grew very rapidly, expanding product categories, geographies, and demographics. A chart of their revenue was basically straight up and to the right, having doubled revenue each year for a few years in a row. The mix of high-end exercise bikes and treadmills with a huge library of live and on-demand classes set them up as competition to both traditional equipment makers (such as NordicTrack and Nautilus) as well as boutique gym classes (such as SoulCycle and Flywheel), and Peloton was winning. The business model was to sell the exercise machines at cost and make money on the monthly subscriptions, leveraging the fixed costs of their instructors, studios, and streaming platform over hundreds of thousands of monthly subscribers. I found the core of this business model to be very attractive; indeed, the business model is what attracted me to research Peloton in the first place. In theory, as they scaled their customer base, they would become hugely profitable as they amortized relatively fixed costs over more and more monthly subscriptions. In various interviews over the years, management had revealed that Peloton was already profitable and cash-flow positive by the end of 2015, quite early in the startup cycle. In 2018, management repeated that they were 'effectively profitable' on an adjusted basis. First of all, it turned out that 'effectively' profitable was not all that effective. At times, I have been guilty of using adjusted numbers myself, and there are definitely times where that is a legitimate way of analyzing a company. In this case, however, Peloton was guilty of using EBE, Earnings Before Expenses. Basically, Peloton was not profitable by any stretch of the imagination, unless you agreed to ignore their sales and marketing expense. Which is patently ridiculous. Given the huge expense they were incurring to sell and market their product, they were not at all profitable, and in fact, the losses were getting worse. Their lack of profitability did not have to totally negate the possibility of investing in them. Truth be told, at this early stage of their lifecycle as a rapidly growing company, it was quite understandable if they were not yet profitable. They had decent gross margins; they were not actually selling the equipment at breakeven anymore, but turning a nice profit on the equipment itself, in addition to the strong and growing margins on the monthly subscriptions. Investment for the future by growing their customer base through outsized sales and marketing efforts was an understandable strategy. But given the lack of profitability, the nosebleed valuation at which they went public was the nail in the coffin. Peloton IPO'd on September 26, 2019 at $29 a share. Even after closing down the first day and gradually drifting lower over its first month of public trading, it still fetched a market cap of about $6 billion. For a company making about $1 billion in revenue (although rapidly growing), and losing about $200 million a year. Sure, things could work out, but only if everything lined up perfectly. However, it is quite rare for everything to go perfectly. As deep value investors, our first mantra has to be that valuation always matters, and at that price, we were not interested. Perhaps the most interesting part is that now, at a much lower valuation and multiple changes of management, Peloton may finally make sense as an investment. They should be able to turn themselves back to profitability with proper management, although time will tell if they actually execute. If they do, they still have a core of loyal fans, with 3 million customers paying monthly subscription fees bringing in a gross profit of more than $1 billion annually. Equipment sales are back to being profitable on a gross margin basis and has room to improve further. If they can control costs like a normal company (that's a big if, although it shouldn't be), they can become a highly profitable and growing company. At the present market cap of $2.7 billion, it may actually make sense as an investment.

BSD Analysis:
The manager presents a comprehensive case study of Peloton, initially rejecting the investment at IPO due to valuation concerns despite an attractive business model. The connected fitness platform with subscription revenue streams showed promise with cult-like customer loyalty and rapid growth, but management's misleading profitability claims and excessive $6 billion valuation at $1 billion revenue created unacceptable risk. The subsequent COVID boom validated the business model temporarily, driving the stock to $170 before management's poor execution during the pandemic surge led to massive overcapacity, cost overruns, and eventual collapse to current levels around $6.77. With 3 million subscribers generating over $1 billion in gross profit annually and a reduced $2.7 billion market cap, the manager now views Peloton as potentially attractive if management can demonstrate proper cost discipline. The case reinforces the critical importance of valuation discipline in growth investing, showing how even compelling business models can destroy value when purchased at excessive multiples.

Pitch Summary:
One particularly noteworthy development to highlight occurred with our Burford investment on June 30th, the last day of the quarter. As a reminder, since 2023 Burford has had an outstanding judgement against Argentina of $16.1 billion (with interest accruing at ~$1 billion a year), of which Burford's entitlement amounts to about $6.3 billion. On June 30th, Judge Preska granted Burford's motion to compel Argentina to hand over their 51% stake in YPF as partial satisfaction amount owed. The YPF stake is worth about $6.5 billion at present market prices, of which about 39% would accrue to Burford, or about $2.5 billion. In response to this order, the stock immediately jumped about 20%. Despite this welcome development, we do not think for a moment that Burford is mere days away from receiving its long-awaited award. Argentina is appealing the decision, and the appeals court has agreed to stay the handover temporarily, at least while a proper motion to stay is being heard. There is a good chance that Argentina will win a further stay while the appeal to turn over the handover itself is heard over the next few months. We believe that Argentina is unlikely to win on the merits in the substantive appeal, but anything is possible. Even if Argentina ultimately loses their appeal, there is no real way to compel Argentina to actually comply with the court order, and it is highly doubtful that Argentina will ever hand over the shares as ordered. As a sovereign country, there is no one to throw into jail, even if and when the court holds them in contempt. Nevertheless, brazenly ignoring an unappealable US court judgement would significantly ratchet up the pressure on Argentina to reach a settlement, especially as they attempt to reintegrate into the world financial system and continue to negotiate for further IMF loans. Ignoring the court order would also likely hurt their relationship with the judge as the motions to consider YPF, BCRA, and other Argentinian companies as alter egos of the Argentinian state remain outstanding. These motions being decided in favor of Burford and withstanding appeal would be an absolute gamechanger for the enforcement efforts. In the meantime, we await further developments.

BSD Analysis:
The manager maintains a bullish stance on Burford Capital, highlighting a significant legal victory that could unlock substantial value. Burford holds a $16.1 billion judgment against Argentina with $1 billion annual interest accrual, representing approximately $6.3 billion in potential recovery. The recent court order compelling Argentina to transfer its 51% YPF stake worth $6.5 billion could deliver $2.5 billion to Burford, representing roughly 39% of the asset value. While the manager acknowledges enforcement challenges given Argentina's sovereign status and ongoing appeals process, they view the court victory as creating meaningful settlement pressure. The potential for alter ego motions against YPF, BCRA, and other Argentine entities represents additional upside catalysts. Despite execution risks, the asymmetric risk-reward profile appears compelling given the substantial judgment value relative to Burford's market capitalization. The 20% immediate stock response validates the market's recognition of this development's significance.

Pitch Summary:
Hemnet – Sweden's dominant real estate advertising portal – has been the single largest contributor to the GCQ Flagship Fund's performance since inception. Despite Hemnet's share price being up approximately +130% since our first purchase in June 2022, we believe the company is early in its monetisation journey. Home sellers in Sweden still pay less than 0.2% of the average home price for a listing on Hemnet. This compares to the 0.4% average fee sellers pay to list a property on REA Group and Domain, Australia's #1 and #2 property portals. Importantly, REA Group and Domain continue to increase prices by 10% to 15% every year, so we believe 0.4% of the average home price is a moving target. Despite being a compelling long-term investment opportunity, Hemnet has cycled in and out of favour since early 2024 on short-term concerns. We have used the recent weakness in Hemnet's share price – a function of what we believe are cyclical issues – to add to our position. We will provide a more complete update on Hemnet in one of our upcoming monthly portfolio updates. Because we currently see a large discrepancy between the share price and the company's value, we have engaged actively with Hemnet's Board to encourage an acceleration in share repurchase activity during this period of market weakness. At these prices, we are concerned that Hemnet could be an attractive takeover target – and despite the allure of an acquisition premium, we would much rather compound our capital as shareholders of this wonderful business over the next decade. We were pleased to receive a prompt and thoughtful response from the Chairman of the Board, and we look forward to additional discussions in the future.

BSD Analysis:
GCQ's Hemnet position exemplifies their strategy of owning dominant digital platforms with significant pricing power expansion potential. As Sweden's leading real estate portal, Hemnet currently monetizes at only 0.2% of average home prices versus 0.4% for Australian peers REA Group and Domain, suggesting substantial pricing upside over time. The 130% return since inception validates the quality of the business model, while recent weakness provides attractive entry points for additional capital deployment. GCQ's active engagement with the board regarding share repurchases demonstrates their commitment to optimizing capital allocation during periods of market dislocation. The manager's concern about potential takeover interest at current prices reflects their conviction in the long-term compounding potential of this monopolistic asset. With network effects, switching costs, and pricing power similar to other successful real estate portals globally, Hemnet appears well-positioned for continued monetization expansion. The cyclical nature of recent concerns provides opportunity for patient capital to benefit from the secular growth trajectory.

Pitch Summary:
Money Forward is the dominant provider of cloud-based accounting software for small-to-medium-sized businesses in Japan. Cloud-based accounting software industry structures tend to be highly concentrated (monopoly, duopoly or oligopoly) on a national level. This is the case in Japan, with Money Forward sitting in a duopoly with Freee. Japan is in the very early stages of its transition from on-premises to cloud-based accounting software, with approximately 20% of small businesses having made the shift. This level of penetration is low relative to other developed markets. We believe the transition to the cloud will drive secular growth for both Money Forward and Freee over the next decade. Since our initial investment in Money Forward in April 2024, the company has delivered results in-line with our thesis, with the cloud accounting business growing revenues close to +35% year-on-year in 2024, with a similar level of growth expected by the end of this calendar year. Further, in October 2024, Money Forward announced a ~30-50% price increase for small- to medium-sized businesses, its first in several years, which was implemented in June 2025. This closely followed Freee's price increase of a similar magnitude. Despite these promising metrics, investors have almost exclusively focused on Money Forward's profit margin (which is far less important to us at this stage than the longer-term growth trajectory) during our investment journey with the company. This culminated in investor capitulation in late January 2025, despite growing revenues by +26% year-on-year! We believed the weakness in Money Forward's share price was a function largely of poor communication of the pathway to long-term profit guidance being achieved. We have a strong relationship with the company – formed through regular travel to Japan to meet with the senior team members and conduct on-the-ground due diligence – and stepped management through materials we prepared that highlighted best-in-class practice relating to disclosures from global cloud accounting software peers, with an emphasis on metrics familiar to software investors. Soon afterwards, in its 1Q25 result in April this year, Money Forward provided investors with new, granular guidance on the path to achieving its group Adjusted EBITDA margin target of 30%+ in FY28. Today, Money Forward's share price is up +34% from its lows in January 2025 and +49% from its lows in April 2025, prior to the release of its 1Q25 result which included the new approach to guidance. Having added to our position at these lows, Money Forward is now a top five contributor to returns in the calendar year-to-date. While we are pleased with this performance, the company continues to trade at a material discount to our assessment of its fundamental value. To put it into context, Money Forward's current forward sales multiple of 4x is a 60% discount to that of Xero – the dominant cloud accounting software provider in Australia and New Zealand – despite having significantly stronger growth prospects.

BSD Analysis:
GCQ's Money Forward investment represents a compelling secular growth story in Japan's nascent cloud accounting transition. The manager identifies a classic duopoly structure with Freee, operating in a market with only 20% cloud penetration versus much higher rates in developed markets. Revenue growth of ~35% combined with successful 30-50% price increases demonstrates both the secular tailwind and pricing power inherent in the business model. GCQ's active engagement with management to improve investor communication proved value-additive, leading to better guidance disclosure and subsequent share price recovery. Trading at 4x forward sales versus Xero's higher multiple despite superior growth prospects suggests significant valuation upside. The investment benefits from Japan's structural shift to cloud-based solutions, sticky customer relationships, and the network effects typical of accounting software platforms. GCQ's on-the-ground due diligence and relationship building in Japan provides an informational advantage in this market.

Pitch Summary:
Rightmove is the dominant real estate advertising portal in the UK, with ~85% share of time spent on property portals by UK consumers. We first discussed our investment in Rightmove in November 2023, when the stock was trading at approximately 18x forward earnings, its lowest multiple in a decade, following US-listed CoStar Group's offer to acquire OnTheMarket, the UK's third-most visited property portal. At the time, the market was concerned Rightmove would lose share to OnTheMarket, which intended to make aggressive investments in sales and marketing. Fast-forward to today, and OnTheMarket still only attracts a 5% share of consumer time spent on property portals, while Rightmove remains dominant, with more than 80% share of time spent on property portals and more than 95% brand awareness among home movers. In this time, Rightmove has grown revenues by +10% in 2023, +7% in 2024, and is set to grow by a further +9% by the end of this year, driven by a combination of 1) subscription package upgrades from real estate agents and home developers; and 2) price increases. Meanwhile, Rightmove's forward earnings multiple has expanded to approximately 24x forward earnings, which, while not particularly expensive, is closer to a fair multiple for a business with extreme pricing power, 70% EBIT margins, and >100% returns on invested capital. REA Group's announcement of a possible takeover offer for Rightmove was a pivotal point in our investment journey with the company. Crucially, REA Group's offers came at a time (September 2024) when Rightmove was trading at its lowest valuation in a decade. While the final offer from REA Group represented a healthy 45% premium to Rightmove's share price prior to the takeover proposal, this was still a discount to both our valuation, and the highest price at which Rightmove traded back in 2021. GCQ spoke out – through the media, in addition to private conversations with other shareholders and via a letter to the Rightmove Board – in an effort to ensure that, if a deal was to go through, shareholders received an appropriate price for what is one of the UK's best listed assets. REA's takeover attempt was ultimately unsuccessful. We believe that our active engagement was additive to investment returns in two ways. First, the public spotlight on Rightmove highlighted the quality of the business to a broader range of investors beyond UK institutions. Secondly, knowing how closely their actions were being scrutinised by shareholders meant the Rightmove Board and management felt additional pressure to justify the decision to reject REA Group's approach, which we believe led to a healthy emphasis on shareholder-friendly decision-making in the following months. Boards simply don't get this level of engagement from an index fund or passive ETF! The Rightmove share price is up nearly 70% from its lows in November 2023. For transparency, we have highlighted our purchases and sales in the below chart. In recent weeks, we have begun to reduce our position in Rightmove as it approaches what we believe is a fair price for the business, trimming our weight from 8% to 5% today.

BSD Analysis:
GCQ presents a compelling case for Rightmove as a dominant UK real estate portal with exceptional market positioning and pricing power. The manager's thesis centers on Rightmove's ~85% market share and monopolistic characteristics, evidenced by 70% EBIT margins and >100% returns on invested capital. Despite competitive threats from OnTheMarket backed by CoStar Group, Rightmove has maintained its dominance while growing revenues consistently at high-single to low-double digit rates. The failed REA Group takeover attempt validated the business quality, with GCQ's active engagement helping protect shareholder value during the process. Trading at 24x forward earnings with extreme pricing power and subscription upgrade opportunities, the valuation appears reasonable for a business with such durable competitive advantages. GCQ's disciplined approach of trimming the position as it approaches fair value demonstrates strong portfolio management. The investment thesis is supported by the structural advantages of network effects in real estate portals and the difficulty of displacing an entrenched market leader.

Pitch Summary:
We began accumulating shares of GE Aerospace in April of last year, with our current position established at an average cost of approximately $149 per share. Like Boeing, GE stands to benefit from powerful macro trends including reshoring, increased defense spending, and the global rebound in air travel. But unlike Boeing, GE is not a turnaround story. The company has already successfully repositioned itself as a focused aerospace leader. It's investing heavily in U.S. factories and suppliers to expand production capacity, improve supply chain resilience, and support reshoring initiatives. GE also plays a critical role in defense. On the commercial side, it powers the majority of widebody aircraft in North America and holds a dominant position in the narrow-body segment through its joint venture with Safran Aircraft Engines, CFM International. GE's high-margin engine MRO business is another bright spot, poised for growth as airlines extend the life of existing aircraft. In effect, GE benefits both from Boeing's recovery and from broader structural demand in aviation. We also see GE as an innovation leader—applying AI and digital tools to improve predictive maintenance, streamline inspections, and enhance manufacturing processes. Altogether, our investment in GE reflects confidence in a stable, future-focused company that's positioned at the center of global aerospace and industrial growth.

BSD Analysis:
WestEnd positions GE Aerospace as a high-quality aerospace leader, having established their position at approximately $149 per share starting in April of the previous year. The manager distinguishes GE from turnaround stories like Boeing, emphasizing the company's successful transformation into a focused aerospace powerhouse with established market leadership. The investment thesis highlights GE's dominant market positions, powering the majority of North American widebody aircraft and maintaining strong narrow-body exposure through the CFM International joint venture with Safran. WestEnd sees multiple revenue drivers including the high-margin MRO business, which benefits from airlines extending aircraft lifecycles, and the company's critical role in defense applications. The manager emphasizes GE's proactive investments in U.S. manufacturing capacity and supply chain resilience, positioning it well for reshoring trends and increased defense spending. GE's innovation leadership in AI and digital tools for predictive maintenance and manufacturing optimization provides additional competitive advantages. The company's dual exposure to Boeing's recovery and broader structural aviation demand creates multiple paths to growth while maintaining operational stability.

Pitch Summary:
Rockwell Automation is another "picks and shovels" investment in the Industrials sector—an established company well-positioned to benefit from reshoring trends, increased defense spending, and the broader adoption of automation and AI in manufacturing. As the economy grows, we expect more industries to invest in faster, smarter, and more reliable production systems, which directly supports demand for Rockwell's offerings. Its portfolio of automation technologies—including sensors, software, and control systems—helps make domestic manufacturing more efficient and cost-effective. In the defense space, Rockwell also supplies critical systems used in military production facilities. Unlike Boeing, Rockwell is not a turnaround story. It is already a key enabler of advanced manufacturing and a leader in industrial AI, offering solutions for predictive maintenance, quality control, and digital twins that optimize factory operations with leaner workforces. We saw compelling demonstrations of Rockwell's technology at Nvidia's GTC conference in March, which reinforced our investment thesis. We began accumulating shares of Rockwell in early March at an average price of approximately $271 per share.

BSD Analysis:
WestEnd views Rockwell Automation as a high-quality "picks and shovels" play positioned to capitalize on multiple industrial megatrends, establishing their position at approximately $271 per share in March. The manager emphasizes Rockwell's established market leadership in industrial automation and AI, distinguishing it from turnaround stories like Boeing by highlighting its current operational excellence. The investment thesis centers on Rockwell's ability to benefit from reshoring trends, increased defense spending, and the accelerating adoption of automation technologies across manufacturing sectors. WestEnd sees the company's comprehensive portfolio of sensors, software, and control systems as essential infrastructure for making domestic manufacturing more efficient and cost-effective. The manager was particularly impressed by Rockwell's technology demonstrations at Nvidia's GTC conference, reinforcing confidence in the company's AI capabilities and digital twin solutions. Rockwell's dual exposure to commercial manufacturing and defense production facilities provides diversified revenue streams across the industrial automation ecosystem. The company's leadership position in predictive maintenance and quality control solutions positions it well for the ongoing digital transformation of manufacturing operations.

Pitch Summary:
Given our conviction in Boeing's recovery, we also sought out complementary opportunities—"picks and shovels" plays—that could benefit from Boeing's resurgence. Howmet Aerospace stood out. Beyond its direct connection to Boeing, Howmet is well positioned to benefit from broader sector tailwinds, including rising demand in aerospace and defense and the growing emphasis on building resilient domestic supply chains. As a key supplier of critical components for both commercial and military aircraft, Howmet plays an essential role in supporting next-generation manufacturing. Its expertise in advanced materials and precision engineering makes it a go-to partner for aerospace companies raising quality standards and adopting new technologies. We began building a position in Howmet in early March at an average cost of $130 per share.

BSD Analysis:
WestEnd positions Howmet Aerospace as a strategic "picks and shovels" play to complement their Boeing investment, establishing the position at $130 per share in March. The manager views Howmet as a critical supplier benefiting from both Boeing's recovery and broader aerospace sector tailwinds, including increased defense spending and supply chain reshoring initiatives. The investment thesis emphasizes Howmet's specialized expertise in advanced materials and precision engineering, positioning it as an essential partner for aerospace manufacturers upgrading quality standards and adopting new technologies. WestEnd highlights the company's dual exposure to commercial and military aircraft markets, providing diversified revenue streams across the aerospace ecosystem. The manager sees Howmet as well-positioned to capitalize on the growing emphasis on domestic supply chain resilience and next-generation manufacturing capabilities. The company's technical expertise and critical component manufacturing role create strong competitive moats in the aerospace supply chain. This investment reflects WestEnd's conviction in the broader aerospace recovery theme while providing exposure to higher-margin component manufacturing.

Pitch Summary:
Long-time clients may recall our liquidation of Boeing in early January 2024 following the Alaska Airlines door plug incident. We exited at around $227.62. Following a management shakeup, however, with new leadership under former engineer Kelly Ortberg, we noticed the firm was working to bounce back from safety issues, production problems, and financial losses. The company focus had decisively shifted to quality, stabilizing aircraft output, and rebuilding trust. We viewed Boeing's commercial side as a turnaround story, accommodated by the steady income provided by the firm's defense business. WestEnd began accumulating shares in December 2024 at an average price of $175.47. With strong demand for air travel and a huge backlog of plane orders, delivering aircraft on time is crucial, in which Boeing has demonstrated significant improvement this year. While the latest tragic Air India crash slightly hit the stock, it has recovered as it became apparent that pilot error was the most likely cause. We remain confident that Boeing can further improve execution and take advantage of industry trends like reshoring and increased defense spending, while capitalizing on high demand from China after the country lifted its ban Boeing deliveries due to the temporary tariff truce.

BSD Analysis:
WestEnd presents Boeing as a compelling turnaround opportunity under new leadership, having re-entered the position at $175.47 after previously exiting at $227.62 following safety concerns. The manager emphasizes Boeing's strategic pivot toward quality and operational stability under CEO Kelly Ortberg, viewing the commercial aviation segment as a recovery play supported by steady defense revenues. The investment thesis centers on Boeing's ability to capitalize on robust air travel demand and a substantial order backlog, with the manager noting demonstrable improvements in on-time delivery performance. WestEnd sees multiple catalysts including domestic reshoring trends, increased defense spending, and renewed Chinese market access following tariff de-escalation. The manager's confidence appears well-founded given Boeing's dominant market position and the structural growth drivers in commercial aviation. The turnaround narrative is supported by management's renewed focus on operational excellence and supply chain stabilization. Boeing's dual exposure to both commercial recovery and defense spending provides diversified revenue streams during the transition period.

Pitch Summary:
We began accumulating shares of GE Aerospace in April of last year, with our current position established at an average cost of approximately $149 per share. Like Boeing, GE stands to benefit from powerful macro trends including reshoring, increased defense spending, and the global rebound in air travel. But unlike Boeing, GE is not a turnaround story. The company has already successfully repositioned itself as a focused aerospace leader. It’s investing heavily in U.S. factories and suppliers to expand production capacity, improve supply chain resilience, and support reshoring initiatives. GE also plays a critical role in defense. On the commercial side, it powers the majority of widebody aircraft in North America and holds a dominant position in the narrow-body segment through its joint venture with Safran Aircraft Engines, CFM International. GE’s high-margin engine MRO business is another bright spot, poised for growth as airlines extend the life of existing aircraft. In effect, GE benefits both from Boeing’s recovery and from broader structural demand in aviation. We also see GE as an innovation leader—applying AI and digital tools to improve predictive maintenance, streamline inspections, and enhance manufacturing processes. Altogether, our investment in GE reflects confidence in a stable, future-focused company that’s positioned at the center of global aerospace and industrial growth.

BSD Analysis:
GE Aerospace enters 2026 as the undisputed "gatekeeper" of the global aviation industry, boasting a record order backlog valued at approximately $190 billion. For the 2026 fiscal year, management has issued a cautious but robust adjusted EPS guidance of $7.10 to $7.40 on projected low-double-digit revenue growth. The company’s "FLIGHT DECK" lean operating model has successfully mitigated supply chain fragility, allowing for a record target of 2,000 LEAP engine deliveries this year in partnership with Safran. Strategic catalysts for 2026 include the certification of the GE9X engine for the Boeing 777X and the ramp-up of the Defense & Propulsion Technologies segment, which saw a 61% surge in orders. Analysts maintain a "Strong Buy" rating with price targets trending toward the $350–$380 range, citing the company’s massive free cash flow generation and aggressive share repurchase program.

Pitch Summary:
Rockwell Automation is another “picks and shovels” investment in the Industrials sector—an established company well-positioned to benefit from reshoring trends, increased defense spending, and the broader adoption of automation and AI in manufacturing. As the economy grows, we expect more industries to invest in faster, smarter, and more reliable production systems, which directly supports demand for Rockwell’s offerings. Its portfolio of automation technologies—including sensors, software, and control systems—helps make domestic manufacturing more efficient and cost-effective. In the defense space, Rockwell also supplies critical systems used in military production facilities. Unlike Boeing, Rockwell is not a turnaround story. It is already a key enabler of advanced manufacturing and a leader in industrial AI, offering solutions for predictive maintenance, quality control, and digital twins that optimize factory operations with leaner workforces. We saw compelling demonstrations of Rockwell’s technology at Nvidia’s GTC conference in March, which reinforced our investment thesis. We began accumulating shares of Rockwell in early March at an average price of approximately $271 per share.

BSD Analysis:
Rockwell Automation enters fiscal 2026 with a sharpened focus on "Factory-of-the-Future" initiatives, recently raising its adjusted EPS guidance to a midpoint of $11.80 following a strong Q1 earnings beat. The company is successfully transitioning from an infrastructure provider to an AI-operationalization leader, with its Intelligent Devices segment growing 16% year-over-year. For 2026, management has reaffirmed an organic sales growth outlook of 2% to 6%, anticipating a gradual sequential improvement in industrial capital spending. The primary strategic catalyst is the expansion of recurring revenue through industrial cybersecurity and OT-managed services, highlighted by a recent multi-plant win with Hindalco Industries. While geopolitical trade uncertainty remains a variable, Rockwell’s completion of a massive $6.2 billion share buyback program reinforces its commitment to high-yield capital returns.