Investment Pitches

Pitch Summary:
Aena is one of the leading global airports operators with a dominant position in Spain. The Covid pandemic caused passenger volumes to collapse and the share price to decline sharply, creating an opportunity. Despite high leverage, the company obtained covenant waivers, cut capex, and maintained positive cash flow through the crisis. Post-pandemic tourism recovery saw passenger numbers exceed pre-Covid levels by 2023, restoring normal earnings power. The investment was exited in 2025 as valuation exceeded fair value amid capacity constraints and rising anti-tourism sentiment.

BSD Analysis:
Aena remains a dominant global airport operator, with its 2026 strategic goals focused on surpassing a milestone of 310 million annual passengers. The company’s updated 2022-2026 plan highlights a massive surge in commercial revenue, which is projected to grow by nearly 50% compared to 2019 levels as retail and real estate activities are optimized. For 2026, international activity is expected to account for 15% of total EBITDA, bolstered by significant investments in the Brazilian airport market and European hubs like Leeds Bradford. The firm maintains an industry-leading dividend policy with an 80% payout ratio, supported by a stable EBITDA margin of approximately 59% and a healthy debt-to-EBITDA ratio of 2x. As the regulatory framework for the upcoming DORA 2027-2031 period takes shape, Aena’s predictable cash flow and expanding regulated asset base make it a premier pick for defensive growth. Its commitment to becoming carbon neutral by 2030 further enhances its standing with ESG-focused institutional investors.

Pitch Summary:
Tiger Brands was a stock market darling during the mid-2010s but suffered from ill-considered foreign expansion which cost it dearly. Investor confidence collapsed and returns were poor for nearly a decade. The appointment of highly regarded industry veteran Tjaart Kruger as CEO in late 2023 marked a turning point. The turnaround in the fortunes of the business since then has been spectacular, and the share price followed suit.

BSD Analysis:
Tiger Brands is undergoing a significant business model evolution in 2026, focused on streamlining management and rationalizing its product portfolio to enhance net margins. The company is aggressively investing in "Super Bakeries" and AI-driven manufacturing technologies to optimize its supply chain and lower operational costs across Southern Africa. While earnings have faced short-term pressure from SKU rationalization and the divestiture of non-core brands, the firm’s return on equity is forecast to reach an impressive 32% within the next three years. For 2026, the investment narrative centers on its expansion into e-commerce and a strategic realignment that aims to capture a larger share of the value-conscious consumer market. A disciplined approach to capital allocation is evident in the recent declaration of special dividends, reflecting a commitment to shareholder returns even during a period of transition. As the company sheds its lower-margin segments, investors are looking for a leaner, more profitable food-and-beverage powerhouse to emerge.

Pitch Summary:
This pharmaceutical, agricultural and consumer health conglomerate has been a meaningful investment for the Global Fund for several years. Since inception, it has delivered very poor investment returns for the Fund. Happily, 2025 brought a change in fortunes for the company and the share price. Two of the key areas of investor concern about the company – a patent cliff in its pharmaceutical business, and ongoing costly litigation in its agriculture business – showed some very positive developments. In the former area, sales of some of its new drugs brought to market recently have been growing very strongly, and there were some very positive developments in the company’s pipeline. In the agricultural business, there were finally judgements in the company’s favour which have the potential to draw a line under the ongoing litigation. After dismal share price performances in 2023 and 2024, the Bayer share price approximately doubled during 2025.

BSD Analysis:
Bayer AG is currently a high-conviction value play in 2026, as the company enters the final stages of a multi-year transformation intended to resolve its legacy legal liabilities and sharpen its focus on Life Sciences. The company’s "Crop Science" division remains a global leader, benefiting from the increasing demand for sustainable agricultural solutions and precision farming technologies. For 2026, the investment thesis is built on a significant recovery in the "Pharmaceuticals" segment, driven by a robust pipeline of new treatments for cardiovascular and kidney diseases. Analysts currently see nearly 19% upside potential for the stock, citing a disciplined discounted cash flow valuation and the company’s commitment to sustainable, long-term growth. While the resolution of Roundup-related litigation remains a key area of focus, the company’s strong free cash flow generation and defensive portfolio of essential health and nutrition products provide a meaningful safety margin. For investors, Bayer represents a chance to own a global industrial giant at a valuation that significantly discounts its long-term earnings power.

Pitch Summary:
At the stock level, Corcept Therapeutics detracted from performance. The company’s shares dropped sharply after its hypercortisolism drug failed to secure FDA approval, raising concerns about pipeline strength and future growth prospects. The setback increased uncertainty around the company’s ability to translate its research into approved therapies.

BSD Analysis:
Corcept Therapeutics is entering a pivotal year in 2026 as it nears the potential commercial launch of relacorilant, its next-generation treatment for Cushing’s syndrome. The investment case is currently balanced between the steady, 20% annual revenue growth of its flagship product, Korlym, and the high-upside potential of its oncology pipeline. For 2026, the company is preparing for a dedicated oncology sales force launch following anticipated approvals in the ovarian cancer space, where relacorilant has shown strong survival benefits. While the company recently faced a regulatory delay in the Cushing’s space, its robust cash flow from Korlym provides a significant cushion to fund ongoing clinical trials and legal defenses of its patent portfolio. Analysts project that risk-adjusted sales could reach nearly 2 billion dollars by 2031, suggesting substantial long-term value from current levels. For investors, Corcept offers exposure to a profitable biotech with a deep pipeline of selective cortisol modulators for metabolic and oncological indications.

Pitch Summary:
Topicus is the European counterpart to Constellation Software and combines disciplined acquisitions with organic product creation. Operating in highly fragmented and regulated European software markets, Topicus benefits from local expertise, high switching costs, and recurring revenue. Since its spin-off, the company has compounded revenue at over 25% annually through a mix of bolt-on acquisitions and organic growth. With strong management alignment, high free cash flow conversion, and a vast runway of potential targets across Europe, we view Topicus as an earlier-stage version of Constellation with an even longer growth runway.

BSD Analysis:
Topicus is vertical-market software compounding done the Constellation Software way, just pointed at Europe instead of North America. It buys boring, mission-critical software businesses where customers don’t churn because switching would break operations, not budgets. Growth looks slow by design, but returns stack up because acquisition discipline never slips. Investors fixate on complexity and geography and miss how similar the playbook is to one of the greatest compounders ever built. Pricing power exists because software cost is trivial compared to operational risk. Decentralization keeps incentives sharp and bureaucracy low. Leverage is used carefully, not cosmetically. This is private-equity logic running permanently inside a public stock, quietly compounding while louder software names burn capital.

Pitch Summary:
Constellation Software is one of our largest positions and a quintessential long-term compounder. The company has spent decades acquiring small, niche, mission-critical software businesses at low multiples and reinvesting their cash flows at high incremental returns. Despite recent share price weakness driven by concerns around CEO Mark Leonard’s health and AI disruption narratives, operating performance has remained exceptional, with reaccelerating organic growth and strong free cash flow. We believe the market is mispricing short-term uncertainty while ignoring Constellation’s deeply embedded systems, high switching costs, and decentralized culture built to function without reliance on a single individual.

BSD Analysis:
Constellation Software is one of the purest capital allocation machines ever built in public markets. It buys dull, mission-critical vertical software businesses that customers never rip out and competitors never bother attacking. Pricing power comes from necessity, not innovation cycles. Organic growth is modest, but acquisitions compound relentlessly year after year. Management avoids hype, leverage, and ego — and that discipline is the real moat. Margins expand quietly as acquired businesses are run better, not bigger. The valuation always looks expensive until you understand the durability of the cash flows. This is not a SaaS growth story. It’s a compounding engine built on boring software and ruthless patience.

Pitch Summary:
RH is a high-conviction position centered on the exceptional leadership of founder-CEO Gary Friedman. Since taking over in 2001, Friedman transformed RH from a struggling retailer into a luxury lifestyle brand with industry-leading margins and experiential retail galleries. Revenues have grown from roughly $200 million to over $3.7 billion, with EBITDA margins approaching 30%. While key-man risk is higher given Friedman’s singular role, we view the upside as substantial due to RH’s global expansion, brand strength, and high-return capital allocation into new concepts. Position sizing reflects this balance between exceptional opportunity and leadership concentration risk.

BSD Analysis:
RH, formerly Restoration Hardware, is positioning itself for a major luxury brand ascent in 2026 as it expands its "World of RH" ecosystem across Europe and the United States. The investment case is built on the company’s transition from a furniture retailer into a global luxury platform that encompasses hospitality, residences, and bespoke design services. For 2026, the company is seeing a stabilization in the high-end housing market, which acts as a primary driver for its "Statement Piece" furniture and large-scale interior projects. Management’s focus on high-margin, proprietary designs and an expansive digital gallery experience is helping to protect gross margins even in a competitive environment. The launch of RH Residences and the expansion of its guestroom and public-area contract business provide new, recurring revenue streams that are less cyclical than traditional retail. While short-term earnings have faced pressure from interest rate volatility, the brand’s core affluent customer base remains resilient. Investors are focused on RH’s potential to achieve a "luxury multiple" as it successfully demonstrates the scalability of its unique, design-led business model.

Pitch Summary:
HEICO represents one of our core compounder holdings and exemplifies antifragile business design. Under founder Laurans Mendelson, HEICO compounded shareholder value for decades through decentralized operations, disciplined acquisitions, and a strong balance sheet. Even following Mendelson’s passing, operations continued seamlessly, highlighting the durability of the culture and incentive structure. The company benefits from airlines extending fleet lives, which drives demand for HEICO’s lower-cost FAA-approved replacement parts. With recurring aftermarket demand, strong free cash flow generation, and continuity in leadership under the founders’ sons, HEICO remains a long-duration compounding machine.

BSD Analysis:
HEICO Corporation continues to be a premier high-quality compounder in the aerospace and defense aftermarket, consistently delivering record profitability through its unique niche strategy. The company’s 2026 outlook is supported by robust 16% organic growth in its Flight Support Group, driven by the aging global aircraft fleet and the demand for its FAA-approved replacement parts. HEICO’s disciplined M&A playbook remains a core driver, with five acquisitions completed in 2025 and a very strong pipeline of deals expected to close in early 2026. The company’s Electronic Technologies Group is also benefiting from increased defense spending and the modernization of satellite and medical electronics infrastructure. Financial performance is characterized by industry-leading margins and strong cash generation, which fund the company’s "acquire-and-grow" strategy without diluting shareholders. While the stock often trades at a high multiple, its decades-long track record of consistent earnings beats and market share gains justifies the premium for long-term growth investors.

Pitch Summary:
Our most significant contributor has been Warner Bros. Discovery (WBD). We initiated WBD on day one of the fund, driven by a significant mispricing and a differentiated view of CEO David Zaslav’s incentives. Despite widespread pessimism around legacy media, high leverage, and streaming losses, we believed the market was missing the company’s aggressive debt paydown, pragmatic capital allocation, and the underlying cash-generating power of its studio and network assets. Since the merger, management has paid down roughly 30% of net debt using free cash flow, cut more than $3 billion in costs, and refocused the business on per-share value creation. The market had priced WBD as distressed, ignoring improving balance-sheet optionality and asset value. Subsequent strategic actions, including the announced split and eventual takeover interest, validated our thesis and drove a near doubling in the share price from our entry.

BSD Analysis:
Warner Bros. Discovery is entering a transformative phase in 2026 as it nears a strategic split intended to isolate its high-growth streaming assets from its legacy cable networks. The plan aims to unlock value by allowing the "Streaming & Studios" entity to trade at a premium valuation while the "Global Networks" business focuses on aggressive deleveraging and cash flow stability. Since the merger, the company has successfully reduced its total debt from over $50 billion to below $30 billion, significantly improving its credit trajectory and reducing default risk. For 2026, the Max streaming service is expected to achieve consistent profitability, driven by international expansion and a more disciplined approach to content spend. While the decline of linear television remains a headwind, WBD’s massive library of iconic IP—including DC, Harry Potter, and HBO—provides a durable competitive advantage in the global "streaming wars." The upcoming separation serves as a major catalyst for a valuation re-rating, as it provides a clearer investment narrative for both growth and value-oriented investors.

Pitch Summary:
Turning Point Brands has dramatically exceeded expectations as the nicotine pouch market has exploded. The company repeatedly raised 2025 nicotine pouch sales guidance from $60–80 million to $125–130 million, far ahead of initial expectations. Earnings power has inflected, with potential for over $5.00 per share in earnings this year and $6.00+ next year as production is insourced domestically. Despite strong performance, the company still appears undervalued relative to its long-term growth potential and market share opportunity in a rapidly expanding category.

BSD Analysis:
Turning Point Brands is successfully navigating the transition of the nicotine market by focusing on high-margin, "other tobacco products" (OTP) and innovative smoke-free alternatives. The 2026 investment case is bolstered by the continued dominance of its Zig-Zag and Stoker’s brands, which enjoy intense consumer loyalty and significant pricing power in the rolling paper and smokeless tobacco segments. Management is aggressively expanding its presence in the modern oral nicotine market, where nicotine pouches are driving segment profitability and attracting a younger, value-conscious demographic. The company’s capital-light business model and disciplined cost management have allowed for consistent free cash flow generation, supporting a robust share repurchase program. While regulatory scrutiny of the vaping industry remains a headwind, Turning Point’s diversified portfolio and focus on regulated, traditional OTP products provide a resilient earnings floor. Investors view the stock as a high-yield, value-oriented play on the evolving habits of the modern nicotine consumer.

Pitch Summary:
Pure Cycle owns over 900 acres of developable land near the Denver metro area and approximately 30,000 acre-feet of water rights, supported by a strong net-cash balance sheet. We have owned the company for over five years and increased our position meaningfully in 2025, now owning just under 15% across funds and SPVs. The company’s assets are long-lived, hard assets that should benefit from inflation over time. I recently joined the board and will focus on strategy and capital allocation to help maximize shareholder value.

BSD Analysis:
Pure Cycle is a uniquely integrated land and water development company, currently benefiting from the rapid expansion of the Sky Ranch master-planned community in Colorado. For fiscal 2026, the company has set a record revenue target of $26 million to $30 million, driven by accelerated lot deliveries to national homebuilders and growing recurring water utility fees. A significant new catalyst is the exploration of data center opportunities, leveraging Pure Cycle’s extensive water rights and land holdings to support the cooling needs of high-density AI infrastructure. The company’s "vertically integrated" model—where it owns the land, the water, and the infrastructure—results in exceptionally high gross margins and a fortress balance sheet with no corporate debt. Increased oil and gas activity on its properties is also providing a substantial uptick in water sales for fracking, adding a high-margin revenue layer to its core residential business. With a clear path to doubling its utility customer base over the next few years, Pure Cycle offers a rare combination of real estate growth and utility-like stability.

Pitch Summary:
Horizon Kinetics appreciated over 400% from December 2023 to year-end 2024 but declined roughly one third in 2025 due largely to shareholder selling pressure rather than fundamentals. The company owns substantial cash and investments on its balance sheet and manages approximately $10 billion of assets under management, generating operating income from advisory fees. In addition, Horizon has meaningful optionality through incentive fees from private funds, which can be lumpy but highly lucrative in strong years. The firm’s investment exposure includes energy, precious metals royalties, real assets, and exchanges, positioning it as a beneficiary of inflationary environments.

BSD Analysis:
Horizon Kinetics offers a unique investment vehicle focused on "contingent pricing power" and inflation-resistant hard assets. The company’s 2026 thesis is built on its significant ownership in royalty-rich entities like Texas Pacific Land Corporation, which provide high-margin exposure to Permian Basin energy production without direct capital intensity. Management’s philosophy emphasizes a long-term "private investing state of mind," prioritizing unbroken compounding over short-term price volatility. The firm is also a pioneer in incorporating Bitcoin and digital assets as a hedge against systemic currency debasement, viewing these as modern "digital land." For 2026, Horizon Kinetics is benefiting from a market shift toward value and commodities as traditional index-based allocations face valuation pressures. The company’s low-turnover, high-conviction approach makes it an ideal holding for investors seeking non-consensus exposure to natural resources and structural inflation hedges.

Pitch Summary:
Clarus’ results have been tepid following the Covid-era boom in outdoor activities, but it has still generated generally positive adjusted EBITDA over the last few years. While the results have been below what I—and the company—believe are possible for the brands, the stock market has taken these results and penalized the stock dramatically more than I think is reasonable. Clarus ended 2025 at $3.35 per share with a market capitalization of approximately $130 million and an enterprise value of roughly $90–95 million given its net cash position. The company’s two core brands generate approximately $250 million in combined annual revenue, implying the stock trades around 0.35x revenue. Management has explicitly acknowledged the disconnect between sum-of-the-parts value and market valuation and indicated it is seeking to unlock intrinsic value, potentially through asset sales.

BSD Analysis:
Clarus Corporation is currently undergoing a strategic pivot, focusing on its core "super-fan" brands in the outdoor and adventure markets while exploring avenues to unlock shareholder value. Following the divestiture of its ammunition business, the company is doubling down on high-equity brands like Black Diamond, which continue to see resilient demand from enthusiasts despite broader macroeconomic headwinds. For 2026, the investment case centers on margin expansion through supply chain optimization and a shift toward higher-margin direct-to-consumer sales. The company’s lean operating structure and focused portfolio allow for significant free cash flow generation, which management is prioritizing for debt reduction and potential tuck-in acquisitions. While the retail environment remains competitive, Clarus’s focus on technical excellence and brand loyalty provides a defensive moat that commodity competitors lack. Investors are closely watching for potential further portfolio optimization as the company seeks to narrow the gap between its market valuation and the intrinsic value of its iconic brands.

Pitch Summary:
Burford Capital is a global litigation finance company that funds commercial lawsuits in exchange for a portion of proceeds. In 2025, core business activity remained strong, with deployments up 20% and commitments up 52%, although realized gains were lower due to timing. Investor sentiment deteriorated following a proposed punitive tax on litigation finance and confusion around the YPF appeals process, causing the stock to fall sharply. However, the tax proposal was ultimately scrapped, and Burford continues to build a portfolio expected to generate roughly $4.5 billion in realizations versus a market cap of approximately $2.0 billion. Progress in the YPF litigation remains favorable, with damages exceeding $7 billion and multiple legal rulings strengthening Burford’s negotiating leverage. The manager believes the market has materially mispriced both the core business and YPF optionality.

BSD Analysis:
Burford Capital remains the undisputed leader in the litigation finance industry, benefiting from a structural shift toward institutionalized legal risk management. The 2026 narrative is defined by a flight to quality and realized performance, as the company’s data-driven approach to valuing legal claims consistently delivers superior internal rates of return. Burford is successfully diversifying its revenue through asset management fees and high-margin realized gains from its massive $7 billion portfolio of legal assets. The recent focus on "affirmative recovery programs" for Fortune 500 companies is opening up a new, lower-risk growth channel by helping corporations monetize their legal claims. While case durations can be unpredictable, Burford’s scale and proprietary analytics allow it to manage duration risk more effectively than any other firm in the sector. With a strengthened balance sheet and growing secondary market for legal claims, Burford is well-positioned to capitalize on the increasing demand for non-correlated alternative investments.

Pitch Summary:
Valeura Energy is a Canadian oil company with a collection of producing oil fields in the Gulf of Thailand. During 2025, the company approved a highly attractive redevelopment of its Wassana field, adding reserves and extending field life with expected IRRs of roughly 40% even at $60 oil. Valeura also entered a farm-in partnership with PTTEP, expanding its acreage position by nearly nine times at a modest cost. Despite a 20% decline in oil prices during the year, Valeura remained highly profitable, ending the year with increased net cash after funding capex, taxes, and buybacks. The company has no debt and breakeven oil prices in the mid-$40s. Management continues to seek accretive acquisitions while maintaining strong financial discipline.

BSD Analysis:
Valeura Energy has transformed into a high-yield production powerhouse in Southeast Asia, with its 2026 outlook centered on record cash positions and a strategic redevelopment of the Wassana field. The company is currently producing approximately 21,000 barrels per day from its four producing assets in the Gulf of Thailand, providing a massive base of operating cash flow. Management’s disciplined 2026 work program includes drilling 16 development and appraisal wells to mitigate natural declines and aggressively add reserves. The upcoming start-up of the Wassana redevelopment in early 2027 serves as a major medium-term catalyst, while a deep gas play in Turkey offers additional long-term exploration upside. Valeura stands out for its exceptionally low operating costs, with 2026 adjusted opex expected to be the lowest since the company assumed operatorship. For investors, the combination of a debt-free balance sheet, strong production visibility into the 2030s, and a commitment to shareholder returns makes Valeura a premier small-cap energy play.

Pitch Summary:
Silicon Motion designs and sells controllers which manage the NAND flash memory ubiquitous in modern computing. After a weak 2023 and recovery in 2024, Silicon Motion delivered sustained strength in 2025, with revenue growth, gross margin expansion to roughly 49%, and double-digit operating income growth despite weak PC and smartphone end markets. The company has its strongest product lineup ever, including PCIe Gen 5 SSD controllers, new UFS controllers, automotive design wins, and initial traction in enterprise SSDs through its MonTitan platform. Management believes market share gains will continue across PCs, mobile, automotive, and data centers. Although AI-driven NAND shortages may pressure end markets, Silicon Motion’s share gains and leadership in QLC NAND should offset volume declines. The manager believes long-term operating leverage from past R&D investments has yet to be reflected in earnings.

BSD Analysis:
Silicon Motion is solidifying its role as a key architect of the AI-driven storage revolution, recently recognized among the top global innovators for its advancements in NAND flash controllers. The company is successfully navigating the transition toward high-performance AI storage, with its R&D focus now yielding defendable intellectual property in PCIe Gen5 and specialized data center controllers. For 2026, the investment thesis is anchored by a revenue run rate target approaching $1 billion, supported by the recovery of the global PC and smartphone markets. While competition in the controller space remains intense, Silicon Motion’s deep integration with major NAND flash makers provides a persistent competitive moat and stable supply chain. Financial performance is benefiting from a shift toward higher-margin enterprise and automotive segments, which are less cyclical than consumer electronics. As AI applications move toward the "edge," Silicon Motion’s expertise in low-power, high-capacity storage makes it a critical partner for the next generation of mobile and IoT devices.

Pitch Summary:
Kingsgate (Sydney: KCN) is an Australian gold mining company with one major asset, the Chatree gold mine in Thailand. Although closed for a number of years due to governmental action, Chatree has restarted operations and is already generating substantial cash flow, especially with the rising price of gold and silver. In 2025, the stock price finally took off and started catching up with reality after years of stagnation, nearly quintupling for the year. Even with this run, the stock remains relatively cheap given current gold prices and mine economics. The mine is producing significant cash flow, has largely paid down debt, and now sits in a net cash position. Exploration drilling has identified additional nearby deposits that could further enhance value. The manager notes, however, that operational execution has been subpar and that the investment remains highly sensitive to gold prices.

BSD Analysis:
Kingsgate Consolidated enters 2026 as a significantly de-risked gold producer, following the successful and consistent ramp-up of the Chatree Gold Mine in Thailand. The company has moved past years of regulatory hurdles and is now delivering quarterly production exceeding 20,000 ounces, with earnings forecast to grow by over 40% annually as high-grade zones are accessed. While the stock’s P/E ratio appears elevated compared to the broader mining industry, this premium reflects a massive turn toward profitability and the potential for significant mine-life extensions through near-mine exploration. Recent financial results show a projected return on equity of 25% by 2028, supported by an aggressive strategy to maximize throughput and lower all-in sustaining costs. With the gold market remaining robust, Kingsgate’s transition from a single-asset turnaround story to a reliable mid-tier producer provides a compelling growth narrative. Investors are particularly focused on the company’s ability to leverage its strong cash flow for future dividends or internal growth initiatives.