Investment Pitches

Pitch Summary:
For example, while Alten is focused on engineering services for the auto industry (a factor that has contributed to recent pressure on the stock), Reply is strong in Europe and industries such as gaming. Bechtle is a leader in Germany and neighboring German-speaking countries, with expertise in helping companies navigate equipment-replacement cycles. Globant, though based in Argentina, primarily works with companies in the US and Europe. Globant is also doing something that none of the others are. In June, it introduced AI Pods, a subscription-based toolkit that gives clients access to its proprietary AI model and capabilities. It is a way to both monetize its AI agents and prevent AI from upending its billing practices. It’s too early to assess the success of AI Pods, but over time, the subscription-model approach may support more profitable long-term growth. The stock price adequately reflects the risks; we added to our holding in Globant this quarter.

BSD Analysis:
Globant is an aggressively punished digital transformation specialist whose current stock price (down ∼73%) is a gross over-penalization for a temporary growth slowdown, not a structural failure. The core thesis is a massive valuation arbitrage driven by a current conservative revenue growth forecast of only 1.3% for FY 2025, which severely under-represents the underlying demand for its high-value AI and digital services. The true signal lies in the profitability and pipeline: the company is maintaining a strong Non-IFRS Adjusted Operating Margin of at least 15.0%, which is superior to many peers. Furthermore, its sales pipeline hit an all-time high of $3.7 billion in Q2 2025 (up 25% YoY), confirming strong underlying demand for its differentiated AI offerings. The conservative guidance simply hides the slow ramp-up of the AI business, creating a powerful entry point before the pipeline converts to realized revenue. Analysts see significant implied upside (roughly 83% from current levels) as the market recognizes the operational efficiency and the inevitable conversion of its AI and digital product focus.

Pitch Summary:
For example, one of the more immediate consequences of businesses and government entities increasingly trusting AI with their data is security risk. An area of cybersecurity that may see greater demand because of AI is a niche known as identity and access management, which is Israel-based CyberArk’s specialty. Humans who access an organization’s computer systems are assigned digital identities, which include their login credentials and define what parts of the system they have permission to access. Computer hardware and software also have digital identities—called “machine identities”—which must be protected. Securing human and machine identities involves managing various digital mechanisms, such as application programming interfaces (APIs), which are sets of rules that allow one software to talk to another; digital certificates, which act like virtual identification cards with embedded signatures; and electronic keys that grant access to specific data or functions. CyberArk’s software platform helps organizations manage digital identities and monitor them for suspicious or unauthorized activity. This is important because AI is creating a new class of machine identities in the form of autonomous and semi-autonomous AI “agents” capable of performing tasks and making decisions previously handled by humans. Already, the number of machine identities is on the rise: according to CyberArk, organizations on its platform had about 40 machine identities for every human identity last year—a ratio that has since doubled. CyberArk is also poised to benefit from the proliferation of so-called containers and microservices widely used by AI developers. Containers package everything an app needs to run (code, tools, libraries), while microservices focus on discrete functions such as authentication. The company also developed a suite of AI-powered tools called CORA AI that helps its identity-security platform analyze user behavior, detect risky activity, generate audit reports, and provide its clients actionable insights. Management has been a good steward of capital, using the company’s strong balance sheet and free cash flow to invest in products and strategic partnerships that position CyberArk to meet the security challenges created by AI.

BSD Analysis:
CyberArk is the undisputed, mission-critical leader in Identity Security, commanding a premium because its Privileged Access Management (PAM) platform is the ultimate defense against the most devastating cyberattacks. The entire thesis is built on its successful transition to a SaaS-based, AI-powered Identity Security Platform, offering clients massive operational efficiencies and cost reduction by eliminating infrastructure and operational overhead. This cloud-centric model is driving accelerating Annual Recurring Revenue (ARR) and high-quality subscription growth. CyberArk's moat is its specialized focus on securing privileged credentials (passwords, SSH keys, tokens) and establishing zero standing privileges—the highest-risk vector for attacks. The shift toward Agentic AI technology and the growing threat of quantum computing necessitate an immediate pivot to advanced identity security solutions, cementing CyberArk's role as an essential, non-discretionary software vendor. This is a core security software position that generates superior margins and provides vital protection against identity-related cyberattacks.

Pitch Summary:
We initiated a position in Boston Scientific, a leading medical device company specializing in stroke prevention for patients with atrial fibrillation. The recent U.S. Food and Drug Administration’s approval of a breakthrough heart rhythm device, along with continued momentum in stroke reduction products, position Boston Scientific for potential accelerated growth.

BSD Analysis:
Boston Scientific is a diversified medical device leader with strong momentum across cardiovascular, neuromodulation, and minimally invasive therapies. Its pipeline productivity has been impressive, with new products consistently gaining share and driving above-market growth. The company’s exposure to high-acuity, non-elective procedures gives it resilience even in macro slowdowns. Margin expansion continues as mix shifts toward higher-value cardiology and electrophysiology products. M&A remains a strategic weapon, and Boston Sci has a strong record of integrating tuck-ins. Regulatory hurdles exist, but execution has been excellent. It’s a high-quality medtech compounder with sustained innovation velocity.

Pitch Summary:
We initiated a position in Shopify, a global leader in e-commerce platforms that enables merchants to sell seamlessly online, in-store, and across social channels. Shopify’s intuitive, all-in-one platform supports rapid merchant growth and international expansion. With a strong track record of innovation, improving profitability, and a robust recurring revenue base, Shopify is potentially positioned to capture significant opportunity in the expanding global e-commerce market.

BSD Analysis:
Shopify remains the backbone of independent e-commerce, powering a massive global merchant base with tools that rival enterprise-grade systems. The company’s exit from logistics was painful but refocused the model on high-margin software and payments. Shopify’s monetization engine — subscription fees, payments, and merchant services — keeps compounding as GMV grows. The ecosystem advantage is huge: developers, apps, and thousands of partners make Shopify incredibly sticky. Competition from Amazon is real, but Shopify enables merchants to diversify away from marketplaces and own their brands. Profitability improvements show a more mature business emerging. Shopify is still one of the most powerful leverage plays on global retail digitization.

Pitch Summary:
During the quarter, we initiated a position in HubSpot, a leading, cloud-based customer relationship management (“CRM”) platform known for rapid innovation and strong growth. HubSpot has consistently expanded its customer base and increased adoption across marketing, sales, service, and content management. By moving beyond small and mid-sized businesses to attract larger enterprises, and with its user-friendly, all-in-one platform, HubSpot stands out as a compelling alternative to legacy CRM systems.

BSD Analysis:
HubSpot is the dominant CRM platform for SMBs, and its product expansion into service, operations, and commerce has made it a multi-hub ecosystem rather than just a marketing tool. Its go-to-market engine is among the best in SaaS, balancing freemium reach with scalable enterprise upmarket moves. International adoption keeps building as SMB digitization accelerates globally. HubSpot benefits from strong net retention as customers layer on more hubs over time. Competition from Salesforce exists, but Salesforce is too heavyweight for HubSpot’s core segments. The company continues to show margin improvement even while investing aggressively. This is a durable SaaS compounder with years of runway.

Pitch Summary:
RLH was introduced to Airo Group in early 2024 as the company was pursuing a SPAC transaction. Both the SPAC and Airo were actively seeking capital. We were impressed by Airo’s fundamentals — the company was EBITDA-positive, operating in a highly thematic sector (military-grade drones), and led by a capable management team. After conducting due diligence, we concluded that Airo could service debt on a standalone basis and that the SPAC merger had a high likelihood of closing. In the first quarter of 2024, RLH, alongside a group of co-investors we introduced, invested in both the SPAC sponsor and Airo directly through a structured bridge loan. RLH’s speed in conducting diligence, ability to quickly fund, and deep capital markets knowledge made us the right partner for a complex and time-sensitive transaction. By August 2024, Airo was prepared to complete its SPAC transaction. However, due to unfavorable market conditions, the capital raise fell short of expectations. After discussions with management, Airo pivoted toward a traditional IPO, which we believed would better reflect the company’s value and raise more capital. As part of this pivot, we restructured our investment to include incremental economics — additional equity consideration and interest — to reflect the added duration and complexity. In June 2025, Airo completed its IPO, raising $69 million in a deal led by Cantor Fitzgerald and BTIG. The offering priced at $10 and was well received, with shares rising 140% in the first day of trading. The decision to delay and pursue a regular-way IPO ultimately maximized value for all stakeholders. As of July 22, 2025, based on the current trading price of $23.84, RLH generated a total net return of 322% and a net multiple on invested capital (MOIC) of 4.2x. Please note that our shares are subject to a six-month lockup and are marked using a conservative liquidity discount.

BSD Analysis:
Cameco is the unassailable, vertically integrated nuclear fuel cycle powerhouse, poised for a massive, structural earnings inflection driven by the global nuclear renaissance and supply tightening. The company's technological and resource dominance is unchallengeable, spanning mining (tier-one assets) to fuel services and its stake in Westinghouse. This dominance is translating to massive profitability, with Gross Margin expanding to 36.3% by late 2025, driven by higher prices from long-term, fixed-price contracts. The stock is a high-conviction bet on the multi-decade supercycle in nuclear power, secured by a fortress balance sheet with a minimal 0.15 Debt-to-Equity ratio and $779 million in cash.

Pitch Summary:
Consumer staples were middle of the pack, as Greencore Group was among the top 10 contributors, offset by Nomad Foods and Barry Callebaut, which languished in the bottom 10. U.K.-based Greencore advanced as ingredient and packaging inflation eased, lifting operating margins. The company announced two long-term sandwich and salad contracts with major U.K. grocers, while also making a bid for Bakkavor.

BSD Analysis:
Greencore is a deep-value, high-leverage turnaround play that is the undisputed market leader in the non-cyclical, high-volume UK convenience food sector. The entire investment thesis is a leveraged bet on a massive, synergistic acquisition: the company is finalizing the recommended acquisition of Bakkavor Group plc, which will create a £4 billion revenue giant with unparalleled scale and market dominance. The company has already completed a rigorous internal stabilization, driving Adjusted Operating Profit up 28.9% and reducing its balance sheet risk, with Net Debt-to-EBITDA at a low 0.4x. The merger is expected to deliver annual run-rate pre-tax cost synergies of at least £80 million by the third year, creating a clear arbitrage opportunity as the combined entity is severely undervalued. Greencore is a high-conviction bet on successful post-merger integration, where the realized synergies will force a major re-rating of the stock.

Pitch Summary:
SK Hynix Inc. was the top overall portfolio contributor, capitalizing on its leadership in high-bandwidth memory (HBM) chips and disciplined DRAM supply. The South Korean semiconductor supplier had record-breaking first-quarter results, highlighted by a 323% year-over-year surge in net profit and an operating margin of 42%.

BSD Analysis:
Jazz remains a focused specialty-pharma operator with a stable sleep-disorder franchise and an emerging oncology engine. Its mix of orphan drugs and targeted therapies gives it pricing durability. The key challenge is navigating the post-Xyrem landscape while scaling newer assets. Cash flow is solid enough to support pipeline development. Partnerships help de-risk R&D. Jazz isn’t a moonshot biotech — it’s a durable, cash-generative operator. Upside comes from executing on oncology and neurology expansion.

Pitch Summary:
Elsewhere in industrials, Japanese trading house Marubeni Corp. reported good earnings and stable guidance, while diversifying with the addition of a pharma platform. The company also announced a significant share buyback program, signaling management’s confidence in Marubeni’s value and commitment to shareholder returns.

BSD Analysis:
Marubeni is a modernized sogo shosha — a diversified Japanese trading house that has quietly transformed into a disciplined global capital allocator. The company’s exposure spans food, energy, commodities, infrastructure, and consumer assets, giving it a unique blend of cyclicality and stability. Unlike earlier eras, Marubeni now prioritizes ROE, portfolio optimization, and shareholder returns, making it far more investor-friendly. Commodity cycles still drive earnings swings, but structural improvements in governance and capital allocation have raised baseline profitability. Its global footprint positions it well for energy-transition projects, resource bottlenecks, and emerging-market capex. Marubeni’s valuation typically trades below intrinsic quality due to conglomerate complexity — which is exactly where the opportunity lies. It’s a diversified industrial-financial operator built for the next decade, not the last one.

Pitch Summary:
Health care holdings detracted most from portfolio performance. UnitedHealth Group’s stock dropped to multi-year lows due to a sharp spike in medical costs and the company’s withdrawal of its full-year guidance. The surprise resignation of CEO Andrew Witty and his replacement by former CEO Stephen Hemsley further rattled the market. Ongoing regulatory scrutiny, including a Department of Justice investigation into Medicare Advantage billing practices, added to the negative sentiment surrounding the stock.

BSD Analysis:
UnitedHealth’s dual-engine model — insurance scale plus Optum’s healthcare services — makes it the most powerful profit generator in U.S. healthcare. Optum’s move into physician groups and advanced analytics creates operating leverage others can’t match. Managed care is politically sensitive, but UNH has survived every regulatory storm intact. Cash generation is astonishingly consistent. The business gets better with scale, not worse. It’s the anchor stock for healthcare exposure. Hard to beat, harder to replace.

Pitch Summary:
Consumer staples were middle of the pack, as Greencore Group was among the top 10 contributors, offset by Barry Callebaut and Tyson Foods, which languished in the bottom 10. U.K.-based Greencore advanced as ingredient and packaging inflation eased, lifting operating margins. The company announced two long-term sandwich and salad contracts with major U.K. grocers, while also making a bid for Bakkavor.

BSD Analysis:
Greencore is the UK’s largest producer of convenience foods and ready-made meals, supplying major grocers and foodservice players. It operates in a low-margin, high-volume world, where efficiency is everything. Recent turnaround progress has stabilized margins and rebuilt investor confidence. Cost inflation remains a challenge, but pricing actions and operational improvements are sticking. Demand for convenience food remains resilient even in weak macro conditions. Greencore is a grind-it-out operator with real self-help upside. Underappreciated and improving.

Pitch Summary:
SK Hynix Inc. was the top overall portfolio contributor, capitalizing on its leadership in high-bandwidth memory (HBM) chips and disciplined DRAM supply. The South Korean semiconductor supplier had record-breaking first-quarter results, highlighted by a 323% year-over-year surge in net profit and an operating margin of 42%.

BSD Analysis:
SK hynix is one of the global leaders in memory — DRAM and NAND — and the prime beneficiary of AI-driven HBM (high-bandwidth memory) demand. HBM is the hottest component in the AI supply chain, and SK hynix has a real technological lead. Memory is cyclical, but the AI supercycle is rewriting the demand curve. Margins swing wildly, but up-cycles are explosively profitable. Capex is heavy but necessary to defend share. SK hynix is high-beta AI infrastructure. This cycle could be one of the strongest in memory history.

Pitch Summary:
Elsewhere in industrials, Japanese trading house Marubeni Corp. reported good earnings and stable guidance, while diversifying with the addition of a pharma platform. The company also announced a significant share buyback program, signaling management’s confidence in Marubeni’s value and commitment to shareholder returns.

BSD Analysis:
Marubeni is a diversified Japanese trading house with exposure to commodities, infrastructure, energy, food, and consumer businesses. The conglomerate benefits from global capex cycles and a disciplined approach to portfolio optimization. Cash flow is strong, and capital returns have become increasingly shareholder-friendly. Marubeni is better managed than its old-school “sogo shosha” reputation implies. Commodity exposure provides upside torque. A well-diversified global operator riding Japan’s renewed corporate governance tailwinds.

Pitch Summary:
Judges Scientific is a serial acquirer of niche scientific instrument businesses in the UK. The company has delivered 22% returns on incremental capital for 20 years by our estimates and 25% p.a. shareholder returns. Cofounder David Cicurel remains CEO and is someone with high integrity, a clear customer focus, strong capital allocation skills and owns shares worth around 200x his base salary. While the stock trades at an optically high 23x EV/FCF we believe it can still deliver a 25% IRR going forwards. We first bought shares in Judges at £61/shr and it trades at £81/shr today.

BSD Analysis:
Judges Scientific is a serial acquirer of niche scientific-instrument companies, executing a quiet, flawless roll-up strategy. Each acquired company is small, specialized, and cash-generative, allowing Judges to improve margins and reinvest methodically. The group’s decentralised model preserves domain expertise while benefiting from corporate discipline. It’s one of the cleanest compounders in European small caps. Organic growth is moderate, but acquisition returns are exceptional. This is an under-the-radar capital-allocation machine. Think “mini-Danaher,” but quirkier and more efficient.

Pitch Summary:
The stock has declined 34% this year and is largely unchanged since our last letter. The company sells Rolex and other luxury watches in the US and UK. While profits are impacted by US tariffs on Swiss imports, we think investors have greatly overreacted. The stock trades on 10x FCF net of the tariff impact for a business that still has a long runway to grow organically at high single-digits and to deploy capital at 15-20% returns. We profile Watches of Switzerland in greater detail below.

BSD Analysis:
WOSG dominates luxury watch retail, benefiting from supply constraints and brand partnerships with Rolex, Patek, and others. Demand for high-end timepieces remains strong, supported by global wealth trends. The company is expanding internationally while improving showroom productivity. Risks include macro slowdowns and uneven allocations from watchmakers. Margins are strong due to mix and premium positioning. If luxury demand holds, WOSG continues compounding. A high-quality retailer with scarcity economics.

Pitch Summary:
Jet2, for example, has rebounded by 20% since we highlighted it in our last letter but still trades on 8x P/E for a business that has net cash, double-digit growth prospects, the best competitive position and management team in the industry, and a track record of gaining share during downturns. The company recently began a buyback equivalent to 7% of its current market cap.

BSD Analysis:
Jet2 is the best-run leisure airline in Europe, with a vertically integrated holiday business that gives it revenue stability and superior economics. Its focus on customer service and value makes churn negligible. The tour operator model locks in demand visibility far earlier than pure airlines. Jet2’s balance sheet discipline stands out in a volatile sector. Cost inflation is a risk, but Jet2 consistently executes better than peers. It’s a rare airline where fundamentals look genuinely attractive. A quiet excellence story in travel.

Pitch Summary:
While less known in Western markets, Xpeng has emerged as one of the most credible players in industrial humanoids. In late 2024, the company debuted “Iron,” a 5’8″, 60-joint humanoid robot already functioning on the assembly line of its EV plant. Xpeng is investing over $13.8 billion to build out its robotics division—declaring outright that the robotics opportunity will eventually surpass automotive. In our view, this sets up a multi-polar future in robotics, with China, the U.S., and Japan each taking different approaches to scale and commercialization. Across these three companies, we see a consistent throughline: robotics is no longer a slide in an investor presentation—it’s a real-world driver of efficiency, safety, and speed. Robotics could reconstruct the physical world in the 2020s and beyond.

BSD Analysis:
Xpeng is a high-growth, high-risk Chinese EV challenger executing a surgical pivot to survive the brutal EV price war by focusing entirely on AI and autonomy. The core thesis is a massive organizational restructuring and a pivotal cooperation with Volkswagen, which validates Xpeng's software and intelligent driving value. The velocity is undeniable: Q3 2025 revenue increased 101.8% year-over-year, driven by a 149.3% boost in vehicle deliveries. Xpeng is a technological leader, being among the first in China to launch urban NGP (Navigation Guided Pilot) and mass-producing end-to-end large AI models. While the stock tanked 10% on a disappointing Q4 revenue forecast, this volatility masks the clear long-term plan: management is targeting over 50% of deliveries from overseas markets in the next decade, with high-margin service business gross margin approaching 60%. The stock is a leveraged bet on a technological winner in the world's largest EV market.

Pitch Summary:
Amazon’s robotics network—now numbering over 1 million autonomous robots across more than 300 fulfillment centers—is nothing short of an industrial revolution in progress. Since acquiring Kiva in 2012, Amazon has scaled up its in-house robotics stack with a clarity of vision and execution that we believe remains underappreciated by the market. Their latest innovation, Sequoia, shortens order processing time by 25% and improves inventory handling by 75%. Equally impressive is Amazon’s foundation model, DeepFleet, which has cut travel time across its robotic fleet by 10%. These aren’t marginal gains—they’re margin catalysts. Robotics is playing a pivotal role in Amazon’s push to double its operating margins in North America from ~5% to 10–11% over time. Amazon is building a greenhouse for innovation, compounding structural efficiency and financial oxygen.

BSD Analysis:
Amazon is the unassailable AI infrastructure and e-commerce oligopolist, whose stock is a conviction bet on the durability of its two core profit engines: Amazon Web Services (AWS) and Digital Advertising. The core moat is AWS, which posted 20% revenue growth and accounts for 60% of the company's total operating income. Critically, Amazon is doubling down on AI with a $4 billion investment in Anthropic, locking in fundamental model development and positioning itself as a major player in generative AI. Concurrently, the Digital Advertising segment is a high-margin cash cow, leveraging the company's vast shopping data to offer targeted advertising. The e-commerce segment is structurally repairing its margins through logistics restructuring and lowering fulfillment costs. The stock is a compelling investment target with a 16% estimated upside, justified by its diversified, high-growth revenue streams.

Pitch Summary:
In July, Tesla flipped the switch. Its robotaxi network—powered by the company’s Full Self-Driving (FSD) platform—officially began commercial service in Austin, Texas. While the headlines haven’t yet caught up, we believe this marks a generational milestone in both transportation and artificial intelligence. This is no longer a simulation. No longer a slide deck. No longer a promise of what’s to come. What matters now is the ability to scale the project—first slowly and then with increasing acceleration. Tesla now operates the world’s first vision-based, end-to-end autonomous mobility network using consumer-owned vehicles. And because the software stack was built entirely in-house—from silicon to inference engine—Tesla controls the unit economics in a way no other player can. With FSD deployed at scale, Tesla’s cost to serve a mile approaches zero. Every incremental robotaxi mile becomes a margin story. Robotaxi gross margins could exceed 70%. The global personal transport market is estimated at $10 trillion. Capturing even a slice yields enormous upside. Austin is just the start.

BSD Analysis:
Tesla is a high-stakes, visionary technology play whose valuation is a grotesque disconnect from traditional auto industry metrics, justified only by its dominance in AI and autonomy. The core thesis is that Tesla is not an automaker; it is an AI powerhouse whose competitive moat is its Full Self-Driving (FSD) program and its massive, proprietary data fleet. The stock maintains an uptrend despite persistent bearish scrutiny over slowing revenue growth and severe margin compression from price wars in China. Investors are paying for the future, unproven success of its AI initiatives, its "Cybercab" launch, and AI chip manufacturing—not its current vehicle sales. The bull case relies on the belief that its technological leadership will soon translate into meaningful, structural earnings growth that no rival can match.

Pitch Summary:
We’ve been closely following Alibaba for over 15 years—through its IPO, meteoric rise, regulatory turbulence, and now its strategic reset. Over that time, we’ve come to understand the company not just as China’s Amazon, but as a foundational piece of the country’s digital economy. Its reach spans e-commerce, logistics, cloud computing, and fintech, with a scale and infrastructure footprint that is nearly impossible to replicate. After years of growth and volatility, what we now see is a business that’s leaner, more focused, and trading at a valuation that no longer reflects its long-term earnings power. What makes this moment particularly compelling is the convergence of a depressed multiple and a maturing opportunity set. While sentiment around China and its tech sector remains cautious, Alibaba continues to generate strong free cash flow and dominate key verticals in one of the largest consumer markets in the world. As the regulatory environment stabilizes and the company leans into shareholder returns, we believe the risk-reward dynamic has meaningfully shifted. It’s rare to find a business of this caliber, with this level of optionality, trading at such a compressed valuation. We’re re-engaging not just because of where Alibaba has been—but because of where it still has the potential to go.

BSD Analysis:
Alibaba is a deep-value Chinese tech titan whose stock is trading at a massive discount, punished by geopolitical uncertainty and regulatory noise that masks its unassailable market dominance. The core thesis is a generational arbitrage play on the company's sheer scale: it occupies 50% of the $1.8 trillion Chinese e-commerce market and is the largest cloud computing provider in the APAC region. Despite the complexity of its VIE structure and regulatory headwinds, the underlying business continues to generate strong financial results, with total revenue increasing 35% to RMB509,711 million in fiscal year 2020. While its core commerce remains the dominant revenue driver (86% of total revenue in FY2020), its Cloud Computing segment is poised for explosive future growth. The stock represents a high-conviction bet on the long-term growth of the Chinese consumer and the inevitability of the cloud market, trading at an attractive price point due to market pessimism.