Investment Pitches

Pitch Summary:
PolyPid has developed a proprietary PLEX technology, which is a lipid-polymer matrix enabling local, sustained drug delivery. Their lead product, D-PLEX100, has shown significant efficacy in reducing surgical site infections (SSIs) in a Phase 3 trial, achieving a 58% reduction in SSI rates. The company is on the verge of filing a New Drug Application (NDA) in early 2026, with a European partnership already in place and a U.S. partnership in late-stage negotiations. The stock is currently undervalued, trading at a fraction of its potential, with a projected 3x upside if the commercialization process is successful.

BSD Analysis:
PolyPid's recent Phase 3 trial success with D-PLEX100 positions it well for regulatory approval and subsequent market entry. The company's strategic partnerships, particularly in Europe with Advanz Pharma, and ongoing U.S. partnership negotiations, provide a strong commercialization pathway. The financial structure post-Phase 3, including a $26.7M raise through a creative warrant structure, ensures a cash runway through FDA approval, minimizing dilution risks. The company's focus on a massive, under-innovated market with high unmet needs, combined with its platform's potential for expansion into other therapeutic areas, suggests significant long-term growth prospects. However, risks remain, including regulatory hurdles and the need for effective commercialization strategies.

Pitch Summary:
The Night Watch strategy focuses on 3 different criteria when selecting companies: valuation, a positive inflection in earnings or catalyst, and inside ownership. Our ideal investment hits all 3 criteria. Occasionally, we end up buying something that scores very well on only 2 out of 3. An example is Dream International (1126 HK), a company we have frequently mentioned in our letters. Dream is a Korean company, listed in Hong Kong, with manufacturing facilities in Vietnam. They manufacture plush animals and plastic figures such as Mickey Mouse – which they manufacture for Disneyland Tokyo and Shanghai, and Funko – which they sell to the US. While this sounds like a mediocre quality business – the business literally exists of 25,000 seamstresses sewing Mickey Mouse – Dream has a cost advantage. They were timely to move operations to China when Korean manufacturing became too expensive, and they were the first to move operations from China to Vietnam when Chinese labor got expensive. Naturally, the proposed 46% tariffs on Vietnam would have impacted their sales to the US. However, when Vietnamese tariffs dropped to 10%, while Chinese tariffs remained in place, they suddenly had an even larger cost advantage versus their China-based competition. We acquired a 2-3% position in Dream in early 2024. With a 4x P/E multiple, large net cash position and ~15% dividend yield we believed that the company would still easily hit our return threshold, despite lacking a clear catalyst. A few weeks ago, we woke up to the news, or rumor, that Dream is involved in the manufacturing of Labubu (see picture). As we have since learned, Labubu is a collectible figurine sold by Pop-Mart that has reached a level of popularity which reminds us of Beanie Babies in the 90’s. Labubu is hot, and consumers line up for multiple hours to buy one. Dream shares rallied significantly on the news. We do not know how much Dream stands to make as part of this arrangement. At best, Dream stands to make money for as long as Labubu is popular. At 10x P/E, the company is no longer cheap. We closed our position in Dream for a ~160% return since our first purchase, including dividends. Sometimes you get lucky in which case it’s time to move on to the next investment!

BSD Analysis:
Dream International is a global toy manufacturer that mastered the art of steady, contract-based cash flow in an otherwise hit-driven industry. It specializes in plush and collectible toys — categories that stay resilient even in economic downturns. Production is diversified across China and Vietnam, giving Dream cost flexibility and geopolitical hedging. Major brand owners trust Dream because of its quality control and ability to scale quickly, a moat newcomers struggle to replicate. Margins aren’t glamorous, but they are reliable, and Dream’s balance sheet is pristine. Investors ignore the name because it’s contract manufacturing, but the business is remarkably durable with optionality if licensing volumes grow. Dream is a low-drama compounder hiding beneath the toy aisle packaging.

Pitch Summary:
Since inception of the fund in January 2024, we have always sought to allocate to several counter-cyclical companies. The idea is that even in the event of a recession, part of our portfolio would still perform well. Currently, our countercyclical basket is predominantly made up of Marex (MRX), a company we first acquired in May of 2024 at $19, versus $39 today. MRX is a Futures Commission Merchant (FCM). They are the company you call if you want to trade oil futures on a major futures exchange such as ICE or CME. Over the years, trading volumes in such futures have grown rapidly as financial players have joined the industrials (e.g., an oil producer) in the trading of such products. Meanwhile, the number of FCMs has halved since 2002, as banks chose to exit due to stringent capital requirements and small players can’t bear the increasing compliance costs. But what really makes Marex attractive today is the fact that they outperform during periods of high volatility. When oil prices skyrocket due to an Israel-Iran conflict, volumes go up. When FX moves rapidly, they trade more FX futures. As a market maker in those commodities, spreads open up which helps their profitability. Finally, to manage counterparty risk, MRX might call on their clients to post more margin, on which they then earn interest income. For that reason, MRX is a great stock to own during moments of market panic. We added aggressively during the sell-off in April.

BSD Analysis:
Marex is the kind of global brokerage that quietly sits at the crossroads of commodities, FX, and clearing — exactly where volatility creates profit. Its diversified revenue streams make it far more resilient than the typical trading-cycle-sensitive broker. As markets fragment and regulatory costs rise, clients want scale partners, and Marex has been winning wallet share. The company’s tech stack is better than its old-school brand suggests, creating leverage in electronic execution and risk services. Investors treat Marex like a cyclical commodity proxy, but the business behaves more like infrastructure. If market volatility stays elevated, Marex earnings can overshoot expectations. This is a structurally advantaged brokerage hiding in plain sight.

Pitch Summary:
A potential beneficiary of the new legislation is Camping World (CWH), the largest RV dealer in the U.S. With a focus on affordable trailers, CWH continues to gain share in a domestically concentrated industry that’s been in decline since 2022. Despite limited exposure to tariffs – most RVs are built in Elkhart, Indiana – RV stocks sold off in April. The new bill proposes to make RV mortgage interest and trailer floorplan financing fully tax deductible, cutting monthly costs for customers by ~10%. We've owned CWH since inception for its share gains and valuation, but it lacked a catalyst. The recent dip, paired with this legislative tailwind, prompted us to add to the position.

BSD Analysis:
Camping World is the loud, messy, recession-prone retailer everyone loves to hate — but the model quietly prints cash when the cycle turns. RV demand went through a boom-and-bust, but Camping World’s scale and service network give it real staying power. The company’s land-and-expand acquisition strategy keeps adding market share while weaker mom-and-pop dealers fold. Inventory normalization is finally giving margins room to recover. Bears call it a leveraged bet on discretionary spending, but the customer base skews older, wealthier, and less economically sensitive than expected. The dividend and buyback potential become meaningful once margins revert. Camping World is volatile, but it’s built to survive chaos and thrive in the recovery.

Pitch Summary:
As an example, a potential loser from changes to the remittance tax is Remitly (RELY). As a provider of digital remittance services, which helps immigrants send money back to their home country, RELY is largely exposed to documented immigrants. After all, you need a bank account in order to transact with them. The new tax legislation proposed a 3.5% remittance tax on all non-citizens, including legal immigrants. Even though it is likely that exceptions will be made for legal residents, this can still severely impair RELY’s business, so we sold our entire position in RELY.

BSD Analysis:
Remitly is a digital remittances machine eating into an industry historically run by legacy toll booths like Western Union. Its customer acquisition engine is one of the most efficient in fintech, and once users land on the platform, churn stays low because switching is a hassle. Margins are expanding as corridors scale, and the company is proving that digital-first remittances can actually produce durable unit economics. Competition is real, but Remitly keeps winning through speed, transparency, and relentless optimization of FX spreads. The stock trades like growth is about to fall off a cliff, yet underlying customer additions remain healthy even in tough macro. If the company cracks more high-volume corridors, the operating leverage becomes hard to ignore. This is a fintech that has already survived its trial by fire — now it just needs the market to catch up.

Pitch Summary:
Interactive Brokers is a classic compounder that benefits from higher interest rates and market volatility. The company reported strong account growth, up 26% year-over-year, and client equity reached new highs. IBKR's low-cost structure and best-in-class technology platform attract sophisticated investors and active traders. The net interest income remains a significant tailwind, although we are mindful of potential rate cuts. However, even in a lower rate environment, the core brokerage business is compounding at a double-digit rate. We believe the market underappreciates the stickiness of its client base and the operating leverage inherent in its model.

BSD Analysis:
Interactive Brokers is an unassailable, high-margin global brokerage oligopolist whose premium valuation (30.87x Forward P/E) is justified by its superior technology and efficiency. The core moat is its highly automated, low-cost platform, which attracts both institutional traders and active retail investors globally. This technology translates directly to superior profitability, evidenced by the 2.15% recent rise in EPS estimates. The company is strategically focused on expanding its market share among sophisticated traders, where its deep liquidity and low commissions provide an unmatched competitive advantage. With projected FY 2025 EPS growth of 17.05% and a high Zacks Rank, IBKR is a conviction bet on the structural dominance of technology-driven financial execution.

Pitch Summary:
MercadoLibre continues to execute flawlessly. In the most recent quarter, revenue grew 36% year-over-year, and operating income margin expanded. The company is consolidating its leadership position in both e-commerce and fintech across Latin America. In Brazil and Mexico, market share gains are accelerating. The fintech arm, Mercado Pago, is seeing strong adoption of its credit and insurance products. Despite macroeconomic volatility in Argentina, the company's geographic diversification and pricing power have allowed it to navigate challenges effectively. We view the current valuation as attractive given the long runway for growth in underpenetrated markets.

BSD Analysis:
MercadoLibre is the dominant digital commerce platform in Latin America, operating an increasingly integrated ecosystem spanning marketplace, logistics, payments, and credit. The true moat is infrastructure: fulfillment centers, last-mile delivery, and Mercado Pago create barriers that are expensive and time-consuming for competitors to replicate. Payments and financial services are the real profit engine, monetizing users well beyond the initial transaction and improving retention across the platform. Operating in volatile macro environments is unavoidable, but MercadoLibre has consistently navigated inflation and FX through dynamic pricing and scale advantages. Logistics investment pressures margins in the short term but strengthens the platform’s long-term defensibility. Credit expansion introduces risk, yet proprietary data improves underwriting and unit economics over time. MercadoLibre remains the benchmark for emerging-market internet execution, with a long runway if discipline holds.

Pitch Summary:
Capricor Therapeutics is facing significant regulatory challenges, particularly in the approval of its DMD treatment. The recent changes in regulatory leadership and policy direction suggest a higher bar for approval, which the company's current data may not meet. The HOPE-3 trial data is delayed, and the lack of convincing clinical evidence further complicates the approval process. The stock is currently trading at $10, but if the treatment is rejected and the HOPE-3 trial fails, it could drop to below $2. The Sarepta controversy adds to the regulatory scrutiny, making the approval process even tougher.

BSD Analysis:
The departure of key regulatory figures and the cancellation of advisory committee meetings indicate a shift in the FDA's approach to DMD drug approvals. This shift is likely to result in a more stringent review process, reducing the likelihood of approval for Capricor's treatment. The company's decision to delay the HOPE-3 data release suggests uncertainty about the trial's outcomes, which could further delay the approval process. The high borrow rate and limited stock availability reflect market skepticism about the company's prospects. Investors should be cautious, as the stock's potential decline could be significant if the regulatory environment continues to tighten.

Pitch Summary:
Agilysys was a top contributor this quarter. The company is a provider of mission-critical software to the hospitality industry, with a focus on property management, point-of-sale, and guest engagement solutions for casinos, resorts, hotels, and cruise lines. Agilysys continues to benefit from long-term drivers of modernisation and digitisation in the hospitality sector, as customers replace legacy systems with integrated cloud-native platforms that can support data-driven and personalized guest experiences.

BSD Analysis:
Agilysys is a structurally advantaged vertical software vendor riding a multi-year replacement cycle from legacy, on-premise systems to modern cloud platforms. Its mission-critical PMS and POS products embed deeply in customer workflows, driving high switching costs, growing recurring revenue and strong net retention. The company has been expanding margins as it scales, and top-line growth in the mid-teens or better is supported by both new customer wins and upselling modules across its installed base. On valuation, Agilysys trades at a premium EV/EBITDA multiple versus generic software, but this looks warranted by its durable growth, visibility and high incremental margins. Key catalysts include accelerating ARR growth, increased cloud mix and potential operating leverage as R&D intensity normalises. The main risks are cyclical weakness in travel or slower-than-expected migrations, but the mission-critical nature of the software and diversified customer base mitigate downside.

Pitch Summary:
Johns Lyng was a top contributor this quarter. Johns Lyng, based in Australia, is a leading provider of end-to-end building and restoration services for the insurance industry. After a challenging year in which weather-related insurance claims were down and the company faced some operational issues, the business has recovered strongly and earlier this year announced that private equity firm Pacific Equity Partners had made a proposal to acquire the company. The proposed deal, which remains subject to shareholder approval, will see Johns Lyng taken private at a material premium to its pre-announcement trading price. This outcome underscores the fundamental attractiveness of the business and validates our thesis that the market was overly fixated on short-term volatility in claims activity rather than the long-term value of Johns Lyng’s recurring insurance relationships and operating platform.

BSD Analysis:
Johns Lyng is a high-quality, recurring-revenue building services platform anchored by long-term relationships with insurers that outsource catastrophe and repair work. The manager’s thesis has been vindicated by a private-equity take-private at a hefty premium, confirming that public markets underpriced the durability of its earnings through normalised catastrophe cycles. Structurally, the business benefits from scale, specialised know-how and a network effect in coordinating trades, which supports attractive margins and returns on capital. Even though the public equity upside is now capped by the bid, the case highlights the opportunity that can exist when transient weather-driven earnings noise obscures the value of contracted, recurring work. For similar businesses, catalysts tend to be stabilisation of catastrophe volumes, improved guidance and strategic interest from financial sponsors or industrial buyers. Investors should note that execution risk in integrating acquisitions and cyclicality in insurance claims remain key variables, but the take-private suggests ample strategic value beyond short-term numbers.

Pitch Summary:
EQB was the top detractor this quarter. EQB is a digitally focused challenger bank in Canada that we believe is much better positioned for the future of banking than the incumbent banks. The bank’s roots lie in serving brokers, mortgage professionals, and small businesses that the big banks tend to overlook. EQB is high performing in this strategy, with a decade-plus track record of superior growth and strong credit underwriting. The bank has recently entered into adjacent segments such as wealth management, and is investing to become a bigger player in the payments ecosystem. EQB has a long history of investing in technology for greater efficiency and customer service. This is facilitated through an internal culture focused on technology and experimentation, which we see as a durable competitive advantage, especially as transaction banking becomes more digital and banks seek to leverage data and software to better serve and retain customers.

BSD Analysis:
EQB is a structurally advantaged digital bank using technology and a broker-centric distribution model to compound book value faster than traditional Canadian banks. The manager emphasises EQB’s long track record of strong credit performance and niche focus, which has translated into above-system loan growth and attractive ROE despite a smaller branch-free footprint. Fundamentally, EQB trades at a discount to the large incumbents on price-to-earnings and price-to-book, even though its digital model should command a premium given better cost efficiency and growth. Investments in wealth management and payments expand its addressable market and deepen customer relationships, providing additional non-interest income streams over time. Key catalysts include continued deposit growth at EQ Bank, normalized credit costs post-rate cycle and incremental disclosure on fee-income initiatives. Risks revolve around housing-related credit stress or funding market dislocations, but current capital levels and underwriting discipline provide a cushion.

Pitch Summary:
Definity was a top contributor this quarter. Definity, a property & casualty (P&C) insurance company, has been a long-term holding in the portfolio, though the holding has been scaled back as valuation has progressed. It had long been expected that Definity, with a strong balance sheet and high level of excess capital, would execute an acquisition following demutualization. In May, Definity acquired the Canadian P&C business of Travelers, making it the 4th largest insurer with a market share of ~8% in Canada and adding ~10 points to Definity’s market share. The combined business will see benefits of scale in both expenses and investment income, which we see as an earnings tailwind. The day we first met Definity we were impressed by the professionalism and alignment of the management team. Definity is a textbook example of a small company likely to deliver superior returns over time, capable of redeploying excess capital and having small company nimbleness, with large-cap depth and breadth of talent.

BSD Analysis:
Definity is emerging as one of Canada’s most attractive P&C insurance consolidators, pairing a strong balance sheet with the nimbleness and discipline typically seen in much smaller companies. Its long-anticipated move into M&A materialized with the acquisition of Travelers’ Canadian P&C business, instantly making Definity the fourth-largest insurer in the country with roughly eight percent market share. The combination adds meaningful scale across underwriting, claims handling, and distribution, creating cost synergies that should lift margins while also enhancing investment income through a larger asset base. The deal significantly accelerates Definity’s strategic trajectory, giving it both greater market relevance and a platform for continued consolidation. Management has consistently stood out for professionalism, alignment, and prudent capital deployment — qualities that matter enormously in insurance, where small execution errors can compound quickly. With excess capital still available and a proven ability to redeploy it intelligently, Definity retains the advantages of a smaller, agile operator while increasingly benefiting from the economics of scale. Altogether, this is a textbook small-cap compounder: disciplined, well-capitalized, and now far better positioned to drive long-term earnings growth.

Pitch Summary:
Global online sports betting & iGaming leader (FanDuel, UKI, Australia, Italy). US duopoly with DKNG driving scale moats (pricing/risk, product, CAC/LTV). EBITDA inflecting as US shifts from investment to harvest; mgmt targets robust FCF and buybacks. Trades ~13x–17x ’26–’25E EBITDA vs faster-growing consumer tech comps on far higher multiples.

BSD Analysis:
Best-in-class operator with sticky share, replicable “Flutter Edge,” and multi-geo growth (US, Italy, BR/IN). Balance sheet/FCF now supports capital returns. Main watchouts: tax hikes (IL, NJ, UK), regulatory shifts, and any crack in the US duopoly; leaders should be most resilient. Risk/reward attractive for a compounder at a reasonable multiple.

Pitch Summary:
Thai B2G/B2B SaaS that digitizes filings, tax e-invoices, customs and AML gateways; benefits from government-led digitization. 13% 3-yr EBITDA CAGR, ~80% GM, net cash, five-year capex cycle with 2024 peak behind them; normalized ~14x P/FCF. Some services are sole/oligopoly providers tied into gov’t rails. Main overhang: 323m baht lawsuit re system-use fees; mgmt asserts zero liability.

BSD Analysis:
Attractive compounding at reasonable price: defensible gov’t-integrated workflows, high margins, light capex for several years post-upgrade. Lawsuit is the swing factor; if resolved benignly, shares should rerate as FCF steps up. Watch CAPEX run-rate normalization, tax-service growth vs rising competition, and related-party exposure to Ditto.

Pitch Summary:
Dowlais is an underappreciated UK-listed auto supplier undergoing a transformation via its merger with American Axle. The combined company becomes a global leader in driveline systems with enhanced scale, geographic diversification, and customer breadth. Management targets ~$300m cost synergies, margin uplift, and improved capital allocation. The business trades at a low multiple relative to peers despite strong free cash flow prospects. Electrification tailwinds and consolidation of suppliers position Dowlais for durable growth. Investor skepticism stems from legacy cyclicality and leverage, but deleveraging and synergy realization should improve perception. The equity could rerate materially as execution unfolds. Risks include integration missteps, auto production cyclicality, and EV adoption pacing. On balance, Dowlais offers asymmetric upside as the merger story plays out.

BSD Analysis:
Classic merger-arbitrage/turnaround with material cost synergies and upside optionality in EV.

Pitch Summary:
MBIA’s 2033 GFL notes are backed by runoff insurance operations with strong asset coverage. The catalyst is resolution of Puerto Rico’s PREPA restructuring, which should unlock value and enable a sale of MBIA. The notes trade at a discount but have sufficient collateral for par repayment. With debt amortization, asset sales, and ongoing runoff, credit risk declines steadily. The company is overcapitalized relative to obligations, and litigation risks are manageable. Investors are paid to wait while legal and restructuring processes conclude. Upside stems from improved transparency and potential secondary market re-rating. Risks include slower settlements, unfavorable PREPA outcomes, or delays in monetization. Overall, MBIA offers an attractive risk-adjusted return profile with double-digit IRR potential.

BSD Analysis:
Attractive runoff credit with PREPA resolution as main catalyst; ample coverage mitigates tail risk.

Pitch Summary:
Archer-Daniels-Midland Company (ADM) has been downgraded to a neutral rating due to disappointing Q1 2025 results and a concerning outlook for the remainder of the year. Despite a solid dividend yield and attractive valuation, the company faces significant headwinds in its core Ag services and oilseeds segment, with declining crush margins and oversupply issues in major crops like wheat, corn, and soy. These challenges, coupled with biofuel policy uncertainties, suggest limited near-term upside potential.

BSD Analysis:
ADM's valuation remains appealing, trading at a forward Price/Book ratio of 1.1x, which is historically low and attractive for value investors. However, the company's profitability is under pressure due to industry overcapacity and declining demand in key segments. The Ag services segment, a major profit driver, is expected to continue facing oversupply challenges, impacting trading margins. Additionally, the RPO segment's margins are constrained by uncertainties around renewable volume obligations. While management hopes for a recovery in the latter half of the year, the current margin deterioration casts doubt on any positive surprises. Investors should be cautious, as ADM's performance may remain stagnant until market conditions improve.

Pitch Summary:
Robinhood Markets, Inc. has demonstrated significant growth, particularly in its crypto trading segment, which has been a major revenue driver. The company's recent expansion into crypto-focused products and services, including tokenized stocks and ETFs, as well as crypto staking, positions it well for continued engagement and monetization of its user base. However, the recent surge in stock price, coupled with declining crypto trading volumes, presents a risk of overvaluation. As a result, the recommendation is to hold the stock, acknowledging the potential for volatility in the near term.

BSD Analysis:
Robinhood's Q1 2025 results showed impressive revenue growth, with a 50% year-over-year increase, driven largely by transaction-based revenue. The company's strategic focus on expanding its crypto offerings, including the acquisition of Bitstamp, enhances its ability to capture more trading fees and leverage trades. However, the stock's current valuation, with a forward price-to-sales ratio significantly above the sector median, suggests it may be overbought. The RSI of 79 further indicates potential overvaluation. Investors should be cautious of the upcoming Q2 2025 earnings report, as continued low crypto trading volumes could impact results. While Robinhood's innovative product offerings are promising, the current market conditions warrant a hold strategy until further clarity on trading volumes and earnings performance is available.

Pitch Summary:
Hims & Hers Health, Inc. has shown remarkable growth in its online segment, with revenue surging from $140.7M in 2020 to $1.75B over the past year. Despite the recent termination of its partnership with Novo Nordisk, which affected its stock price, the company still has significant growth potential in its core telehealth market. However, the entry of Amazon into the telehealth sector poses a competitive threat, and the company's high valuation metrics suggest caution.

BSD Analysis:
Hims & Hers Health, Inc. has demonstrated impressive revenue and gross profit growth, with a CAGR of 151.4% and 174.9% respectively since 2018. The company's gross margin has improved significantly, reaching 77% from 29.21% in 2018, driven by increased online revenue per subscriber and reduced customer acquisition costs. However, its P/E GAAP of 60.74 and EV/EBITDA of 65.44 are substantially higher than sector medians, indicating a premium valuation. The loss of the Novo Nordisk partnership could impact future growth, particularly in the GLP-1 segment, which faces regulatory challenges. While Hims has a strong direct-to-consumer model and subscriber growth, Amazon's entry into telehealth could pressure margins and market share. Investors should monitor how Hims adapts its strategy in response to these competitive and regulatory dynamics.

Pitch Summary:
Marine Products Corporation, despite facing industry headwinds such as inflation and high interest rates, presents a long-term investment opportunity. The company is financially robust with no debt and a significant cash position, which should help it navigate current market challenges. While the stock appears fairly valued now, a return to normal profitability levels could unlock meaningful upside.

BSD Analysis:
Marine Products Corporation's financial health is a key strength, with a net cash position equating to nearly 20% of its market cap, providing a buffer against economic uncertainties. The company's valuation metrics, such as a P/E ratio of 16.0 and an EV/EBITDA of 10.9, suggest it is fairly priced compared to peers like Brunswick Corp and BRP Inc., which have lower EV/EBITDA ratios. However, the potential for industry recovery and management's cautious optimism about sales growth in the latter half of 2025 could catalyze stock performance. The company's ability to manage costs and inventory effectively, despite tariff and interest rate pressures, will be crucial. Investors should monitor macroeconomic indicators and industry trends closely, as these will significantly impact the company's future performance.