Investment Pitches

Pitch Summary:
Tokyo Electron remains a key beneficiary of the ongoing investment cycle in leading-edge semiconductor manufacturing, as customers increase spending on advanced logic and memory capacity. The company continues to gain share in critical process steps where its technology is highly differentiated, helping support solid orders and a robust backlog. Management has highlighted healthy demand tied to AI, high-performance computing, and advanced foundry nodes, which is helping offset cyclical weakness in more commoditized segments. While near-term results can be volatile given the capital intensity of the industry, we believe Tokyo Electron’s strong competitive position and deep customer relationships position it well to compound earnings over the cycle.

BSD Analysis:
Tokyo Electron (TEL) is an essential, high-growth semiconductor equipment oligopolist whose stock is a direct, leveraged play on the increasing complexity of AI chips. The core moat is its leadership in deposition systems, which are non-discretionary for manufacturing next-generation devices. The company's new Episode™ 1 single-wafer metal deposition platform is a game-changer, integrating up to eight process modules to perform complex chemical vapor deposition (CVD). This innovation is crucial for reducing contact resistance and depositing uniform films on the intricate, tiny structures required for smaller AI chipsets. TEL's technology, which enables film deposition on ever finer device structures, is directly supporting the evolution of AI processors.

Pitch Summary:
MercadoLibre delivered strong results as the company continues to execute on its strategy of combining e-commerce and fintech to drive growth and improve profitability. Revenue grew strongly in U.S. dollar terms, supported by robust growth in both commerce and fintech. Gross merchandise volume on the platform increased at a healthy pace, with particularly strong performance in Brazil and Mexico, while total payment volume processed through Mercado Pago grew sharply, reflecting increasing adoption both on- and off-platform. The company’s advertising business also remained a bright spot, with revenue growing significantly and now representing a rising share of GMV. We believe MercadoLibre remains well positioned to benefit from secular growth in e-commerce, digital payments, and financial inclusion across Latin America, and as the company continues to scale, we expect operating leverage and margin expansion to support attractive long-term earnings growth.

BSD Analysis:
MercadoLibre is the unassailable, high-growth titan of Latin America’s digital economy, offering a conviction bet on the structural growth of e-commerce and fintech in the region. The core thesis is driven by its dominant position, leveraging both its e-commerce platform and its rapidly growing Mercado Pago fintech arm to streamline inefficiencies and bridge accessibility gaps. As the region's leader, it is not just adapting to rising internet adoption and digital payment demand—it is shaping the future. MercadoLibre's ability to address key regional challenges in logistics and financial inclusion cements its role as a critical player in the region's economic evolution.

Pitch Summary:
Zimmer Biomet is a leading medical device company and a pure play in orthopedics. In our view, orthopedics is an attractive product category that should benefit from long-term tailwinds stemming from an aging population, greater activity levels among seniors and increased adoption of specialized robotics that improve surgical efficiency. In addition, market share within the space tends to be sticky, as physicians are typically trained to use leading brands like Zimmer Biomet, reinforcing longstanding brand loyalty. New management recently completed several multi-year initiatives that we think will streamline operations and reinvigorate product innovation. The market has yet to ascribe value to these improvements, providing the opportunity to initiate a position in a dominant, growing company at a discounted valuation to peers and the broader market.

BSD Analysis:
Zimmer Biomet is emerging from a long operational slog with a sharper product portfolio and cleaner execution. Orthopedics has secular tailwinds — aging populations, rising joint replacements, and a return of elective procedures. Margins are recovering as supply chain issues ease. Surgeon loyalty and hospital contracts remain durable moats. Investors have priced ZBH like a perpetual laggard, but the turnaround is showing real traction. As procedure volumes normalize globally, Zimmer’s earnings power should look materially stronger. This is a classic medtech recovery play with catalysts lining up.

Pitch Summary:
Salesforce is a leading technology company that offers a collection of software products aimed at providing businesses with a full front office productivity suite. We believe Salesforce is a wonderful business going through a transformation into a profitable, shareholder-focused enterprise. Since management announced their renewed focus on operating discipline a couple years ago, Salesforce’s margins have increased substantially. In our view, there is further room to improve as the company leverages its unique position to help businesses deploy AI and continues to restructure its sales organization. Since exiting our position in Salesforce in December, the stock price has declined by over 30% despite continuing to report fundamental results that are in line with our expectations. We were pleased to buy the stock, but we first established our position using a put writing strategy to lower our entry price. We believed the puts were overvalued as they implied that Salesforce was among the most volatile large companies, which was completely at odds with our assessment of its business value.

BSD Analysis:
Salesforce has completed one of the most dramatic margin transformations in enterprise software, proving the model can be both high-growth and high-cash-flow. AI integration across the full product suite gives Salesforce new pricing and upsell levers. Churn remains extraordinarily low because the platform is fully embedded in business workflows. Activist pressure forced management to respect profitability, and shareholders are finally seeing the payoff. The stock still trades below where a best-in-class SaaS operator should. Salesforce at scale is a cash machine with optionality. This is enterprise software royalty with real operating discipline now.

Pitch Summary:
Nike Cl B is a global leader in athletic footwear, apparel, and equipment. The company has built a leading global brand through decades of successful product innovation, marketing and partnerships with premier athletes. Since peaking in 2021, Nike’s stock price has declined to roughly a third of its previous high, largely due to challenges in its direct-to-consumer initiative and concerns over tariffs. In our view, Nike's new CEO is implementing a credible plan to improve fundamental performance by bolstering wholesaler relations and diversifying distribution while further increasing product innovation. We believe these actions will help to improve the health of the business over the medium term, resulting in better growth and enhanced margins. These concerns provided us with the opportunity to purchase shares at a meaningful discount to our estimate of intrinsic value.

BSD Analysis:
Nike is working through a brand and product reset, but its global cultural relevance is still unmatched. The return to wholesale partners is actually helping reignite demand rather than diluting the brand. Innovation slowed, but the upcoming product slate looks healthier and more athlete-led. China remains noisy, but Nike’s long-term equity there is stronger than bearish narratives suggest. Cash generation remains elite even in transition periods. When Nike hits the next innovation cycle, earnings can ramp faster than the market expects. This is a temporarily bruised champion, not a fading one.

Pitch Summary:
Amazon is the world's largest online retailer and provider of cloud services. The company is a dominant player in massive end markets with secular growth tailwinds. Amazon benefits from a wide competitive moat supported by scale, customer loyalty, and network effects. We think it is a well-managed business that will use AI to improve operational efficiency, enhance customer experience, and fuel long-term demand growth at Amazon Web Services (AWS). Despite this favorable outlook, Amazon’s stock price fell recently due to a combination of tariff and short-term macroeconomic concerns. We were pleased to purchase shares in what we believe is one of the world's best companies at a discount to our estimate of intrinsic value.

BSD Analysis:
Amazon has evolved into a cloud, logistics, and AI powerhouse while investors stayed fixated on retail margins. AWS is still the most profitable cloud platform on Earth, and its AI services give it another decade of expansion. Retail profitability is finally inflecting thanks to regionalized fulfillment and stricter cost control. Advertising is the stealth moneymaker — a high-margin engine that keeps surprising to the upside. Capex is enormous, but Amazon builds moats no one else can compete with. Bears complain about valuation, then get steamrolled when earnings reaccelerate. Amazon remains one of the most dominant business ecosystems in the world.

Pitch Summary:
Global Payments was the top detractor during the quarter. The U.S.-headquartered transaction and payment processing company’s shares sold off during the period as investors reacted negatively to an announced acquisition of Worldpay and divestiture of the Issuer Solutions business. We believe investors underappreciate the long-term strategic and financial merits of this transaction. Moreover, we are pleased that management is still committed to returning a substantial amount of capital to shareholders. We believe Global Payments can return close to one third of its current market cap to shareholders over the next three years and that capital returns could grow meaningfully from there as the benefits of the Worldpay deal are fully realized.

BSD Analysis:
Global Payments is the plumbing beneath modern commerce, powering integrated and software-embedded payments across industries. Its distribution through ISVs gives it a sticky channel advantage most competitors can’t replicate. The combination of payments, software, and analytics positions GPN as a mission-critical provider, not a commoditized processor. Margin improvement has been impressive as the company prunes distractions and focuses on core strengths. Digital payments still have a long runway globally, and GPN has one of the better risk-reward profiles in the sector. Investors underestimate its resilience across cycles. This is a high-quality infrastructure fintech with real cash flow and real moats.

Pitch Summary:
Citigigroup was the top contributor during the quarter. The U.S.-headquartered diversified bank’s stock price rose throughout the period after it delivered positive first-quarter 2025 results. Despite a volatile macro backdrop, management reiterated full-year guidance across all key measures and reaffirmed their commitment to achieving a double-digit return on tangible common equity target. Share repurchase stepped up during the first quarter, with management projecting further increases as the year progresses. Shares also benefitted from growing optimism around a more favorable regulatory outlook for banks, including potential capital relief that could support higher returns and distributions to shareholders.

BSD Analysis:
Citi is finally executing the restructuring investors have been begging for since the financial crisis. Exiting non-core geographies and simplifying the operating model is starting to unlock real efficiency gains. The crown jewels — TTS and securities services — are global-scale businesses with high returns and long runways. The stock trades at a ridiculous discount because sentiment is stuck in 2011. But capital ratios are strong, credit is contained, and cost reductions should meaningfully improve profitability. Citi doesn’t need to be JPMorgan; it just needs to stop being Citi. If the turnaround sticks, the valuation gap has miles to close.

Pitch Summary:
During the second quarter of 2025, we initiated one new position in MSA Safety, Inc. (MSA) in the SMID Cap Composite. MSA Safety, Inc. (MSA). MSA’s core business provides critical safety solutions for workers across various industries, including construction, oil and gas, fire service, and general industry. Their product portfolio includes gas detection instruments, fall protection equipment, head protection, and respiratory protective devices. They focus on delivering innovative technologies and connected safety solutions, ensuring worker safety and regulatory compliance in hazardous environments. MSA Safety holds strong market positions across its major product categories, driven by its reputation for quality, reliability, and innovation. MSA has been a long-standing leader in firefighter safety equipment. They are well known for their self-contained breathing-apparatus (SCBA). This is a market where brand recognition, and reliability are incredibly important. The SCBAs are also used in hazardous industrial environments. MSA's focus on advanced filtration technologies and user comfort contributes to its strong market presence. MSA is also a leading provider of fixed and portable gas detection instruments. Their products cater to diverse industries, from oil and gas to wastewater treatment, where monitoring hazardous gases is crucial. They have a significant market share due to their robust and accurate sensors, as well as their growing connected safety solutions that allow for remote monitoring and data analysis. Other safety equipment includes products for fall protection including a comprehensive range of products, including harnesses, lanyards, and anchorage systems. They hold a prominent position, particularly in construction and industrial settings, where worker safety at heights is paramount. MSA's emphasis on ergonomic design and durable materials strengthens its competitive edge. Overall, MSA's market leadership stems from its commitment to providing high-quality, reliable safety solutions that meet the evolving needs of its customers. Their focus on innovation, particularly in connected safety technologies, further solidifies their position in these critical markets. We believe that two of their markets are poised for growth over the next 5 years: 1) Firefighter SCBAs should benefit from a wave of replacements, and MSA’s leading technology. We believe that their biggest competitor, 3M, has not invested adequately in product improvements, and MSA’s product is superior. 2) We also believe that customers in the portable gas detection market are adopting new “connected” technology and the market is changing in favor of MSA. An interesting development in this market is that they sell the equipment, and then have a recurring revenue stream for the connectivity software which could drive margins higher. Mike attended the National Firefighters convention in April, and was able to spend time with the CEO, who we believe is a credible and good leader who is excited about the prospects for the business. Management believes that there are M&A opportunities in the gas detection side of the business. While 2025 will be a tough year for top-line comps because of a 1-time USAF order, and an impending standard change from the NA Fire Protection Association (NFPA), both should all set up for a cleaner 2026. MSA’s balance sheet is solid, with ND/EBITDA = 0.7. The business throws off cash, and management believes that they can invest $1.5B in the next 5 years to deploy to M&A (or potentially buy back stock). We believe that we entered at an attractive point. The stock was down meaningfully in the last year and YTD, and it is trading at the lowest EV/EBITDA multiple since 2017 (under 13).

BSD Analysis:
MSA Safety sells products people buy because failure is unacceptable, not because the price is attractive. Its exposure to firefighting, industrial safety, and gas detection creates a durable demand profile supported by regulation and replacement cycles. Pricing power is stronger than in most industrial categories, as safety equipment is rarely where customers choose to cut costs. Recurring revenue from consumables and service supports margin stability even when industrial capex slows. The main risk is execution — innovation cadence and supply reliability matter in high-stakes environments. MSA tends to outperform peers during downturns because its products are mission-critical. It’s a high-quality industrial compounder hiding behind an unexciting label.

Pitch Summary:
The Boston Beer Company, Inc. (SAM) was a detractor this quarter. During the quarter, the broader beer industry experienced slower-than-expected sales, weighing on sentiment across alcohol-related stocks. Against this backdrop, sales of Twisted Tea, SAM’s largest brand, slowed, while Truly continued to underperform. That said, brands like Angry Orchard, Dogfish Head, and newer offerings such as Hard Mountain Dew and Sun Cruiser grew year-over-year. Given its outsized share of the current portfolio, Twisted Tea’s performance will likely determine the trajectory of SAM’s near-term results. We were pleased with the company’s reported first quarter results, which showed shipments rising and gross margins reaching their highest quarterly level in several years. Medium-term shipments growth will depend on industry demand trends and SAM’s ability to execute brand-level initiatives to gain market share. Management sees further opportunities to improve margins through operational efficiencies, even without volume growth. While near-term industry trends remain challenged, we continue to believe that the “beyond beer” sector where Boston Beer is focused offers long-term growth potential and attractive economics. SAM is well-positioned to compete with a strong balance sheet, established brands, solid cash flow, a growing innovation pipeline, nationwide distribution, and a proven, shareholder-aligned management team.

BSD Analysis:
Boston Beer is no longer just a craft beer growth story; it’s a portfolio management and execution story in a fragmented, slow-growth alcohol market. Consumer tastes have shifted away from traditional craft beer toward spirits, RTDs, and moderation trends, which has exposed forecasting and inventory risk. The upside comes from innovation cycles that actually land — when Boston Beer gets the mix right, volume and margin snap back quickly. The company still benefits from strong distribution reach and brand recognition that smaller competitors can’t replicate. Margin recovery hinges on disciplined production planning and avoiding costly write-downs that have plagued prior cycles. This is not a linear growth business anymore, but expectations are now appropriately low. If management executes cleanly, the stock has meaningful rebound potential off depressed sentiment.

Pitch Summary:
Watsco, Inc. (WSO), the largest distributor of air conditioning, heating, and refrigeration products in North America, was the top detractor in the second quarter after being a top contributor last quarter. First-quarter results, which are seasonally slow, were mixed: strength in the core residential replacement market (up 10%) was overshadowed by softness in international markets (~9% of sales), new housing, and timing headwinds related to the transition to A2L refrigerants. Importantly, management indicated a strong start to the summer selling season and expects the ongoing shift to higher-priced A2L equipment to provide a meaningful revenue tailwind over the next couple of quarters. They also reiterated a long-term gross margin target of 30% (versus 27% in 2024) and continue to invest in technology and process improvements to support this goal. With no debt and $432 million in cash and short-term investments, WSO has ample flexibility to pursue acquisitions in the highly fragmented $74 billion North American HVAC/R distribution market. We continue to believe WSO has a long runway for organic and inorganic growth, an owner-oriented culture and competitive advantages that increase with scale.

BSD Analysis:
Watsco is a best-in-class HVAC distribution business, and the core thesis is that HVAC is non-discretionary when systems fail—especially in hot, humid markets. It benefits from replacement cycles, efficiency upgrades, and long-term climate-driven demand for cooling. Distribution is a scale game, and Watsco’s footprint, inventory, and contractor relationships create real defensibility. The business also has a technology advantage through contractor tools and e-commerce capabilities that deepen loyalty and improve order efficiency. The risk is cyclical new construction weakness, but replacement and repair demand usually carry the base. Refrigerant transitions and efficiency regulation can create upgrade waves that drive incremental demand. This is a quietly powerful compounder tied to “people need air conditioning,” which is not a fad.

Pitch Summary:
Boot Barn Holdings, Inc. (BOOT) was a top contributor in the second quarter. After a pullback in the first quarter which we believe was due to concerns about the cost of tariffs and weakening consumer confidence, BOOT recovered nicely after reporting their fiscal 4th quarter and full year (2025) results. For the full year, sales were up 14.6%, and same store sales increased 5.5%. (In the current quarter, they report that same store sales are up approximately 9%). They opened 60 new stores last year, bringing their total store count to 459, and they plan on continuing to open new stores at a rate of approximately 15% new floor space per year. They shared the tariff mitigation plan which includes meaningful supply chain moves away from China in the coming quarters. All in all, the BOOT thesis remains intact: growth through new stores and same store sales; growth in their higher margin proprietary brands; and their balance sheet is in excellent shape with no net debt.

BSD Analysis:
Boot Barn is one of the few specialty retailers still executing a credible national growth strategy, built around a lifestyle category with real cultural pull. Western and workwear aren’t just fashion trends here—they’re identity-driven purchases, which gives the company more pricing power and loyalty than typical apparel peers. New store openings continue to deliver strong unit economics, and the concept travels well beyond its historical core markets. Private-label penetration is a meaningful margin lever, allowing Boot Barn to protect profitability even when promotions pick up elsewhere in retail. The biggest risk is consumer softness and inventory missteps, but management has historically been disciplined on buys and turns. E-commerce and omnichannel capabilities support convenience without undermining store productivity. If execution holds, Boot Barn looks less like a cyclical retailer and more like a long-run specialty compounder hiding in plain sight.

Pitch Summary:
APi Group Corporation (APG), a leading provider of fire and life safety, security, elevator and escalator, and specialty services, was the top contributor in the SMID Cap strategy this quarter. The core Safety Services segment delivered strong results, with organic revenue growth of 6% and Adjusted EBITDA growth of 21%. Organic growth was driven by continued execution of the inspection-first strategy, while margins expanded due to improvements in the international business (Chubb, acquired in 2022) and the shift to higher margin inspection and service work. In contrast, the smaller Specialty Services segment remained weak and was further impacted by adverse weather during the quarter. However, backlog grew approximately 7%, and management anticipates a return to organic growth next quarter. We attended the Investor Day in New York this May, where management laid out ambitious plans to scale the business to over $10 billion in revenue and $1.6 billion in Adjusted EBITDA by 2028. While these are lofty targets, we believe the company has meaningful organic and inorganic growth opportunities, and we have strong confidence in the leadership of CEO Russ Becker and his team to execute on this vision.

BSD Analysis:
APi is a services-heavy industrial platform with meaningful exposure to fire protection, safety, and specialty building services—areas with sticky demand and recurring inspection work. The best part of the model is that a lot of revenue is tied to maintenance and compliance, not one-time construction booms. The company has been working to improve margins through mix shift, pricing, and operational discipline after years of roll-up complexity. The risk is execution: integration, labor availability, and project profitability can swing results. If management keeps pushing toward higher recurring revenue and better route density, the earnings profile becomes more predictable and higher quality. In a world of aging buildings and tighter safety standards, APi’s services become more necessary, not less. This is a “boring services infrastructure” story that can compound if operational rigor holds.

Pitch Summary:
MSA Safety, Inc. (MSA). MSA’s core business provides critical safety solutions for workers across various industries, including construction, oil and gas, fire service, and general industry. MSA has been a long-standing leader in firefighter safety equipment, particularly self-contained breathing apparatus, where brand reliability is paramount. We believe two of their markets are poised for growth over the next five years: firefighter SCBA replacements driven by superior technology versus competitors, and portable gas detection as customers adopt connected safety solutions that generate recurring software revenue. Management believes there are M&A opportunities in gas detection, supported by a solid balance sheet with ND/EBITDA of 0.7. While 2025 will be a tough year for top-line comparisons due to a one-time USAF order and standards changes, these factors should set up a cleaner 2026. The stock is trading at under 13x EV/EBITDA, the lowest since 2017, which we believe represents an attractive entry point.

BSD Analysis:
MSA is a quietly essential industrial franchise selling safety equipment that customers buy because failure is not an option. The business benefits from regulatory tailwinds and a steady replacement cycle across firefighting, industrial protection, and gas detection. Pricing power is stronger than most industrials because safety is mission-critical and procurement is less purely price-driven. The attractive part is the recurring nature of demand—consumables, maintenance, and refresh cycles create resilience when capex slows. The risk is that industrial end markets can soften and slow order rates, but MSA tends to hold up better than typical cyclical names. Operational execution and innovation cadence matter because competitors will chase share in high-margin categories. This is a high-quality compounder hiding in an “unsexy” label.

Pitch Summary:
The Boston Beer Company, Inc. (SAM) was a top detractor this quarter. During the quarter, the broader beer industry experienced slower-than-expected sales, weighing on sentiment across alcohol-related stocks. Against this backdrop, sales of Twisted Tea, SAM’s largest brand, slowed, while Truly continued to underperform. That said, brands like Angry Orchard, Dogfish Head, and newer offerings such as Hard Mountain Dew and Sun Cruiser grew year-over-year. We were pleased with the company’s reported first quarter results, which showed shipments rising and gross margins reaching their highest quarterly level in several years. Medium-term shipments growth will depend on industry demand trends and SAM’s ability to execute brand-level initiatives to gain market share. Management sees further opportunities to improve margins through operational efficiencies, even without volume growth. While near-term industry trends remain challenged, we continue to believe that the “beyond beer” sector where Boston Beer is focused offers long-term growth potential and attractive economics. SAM is well-positioned to compete with a strong balance sheet, established brands, solid cash flow, a growing innovation pipeline, nationwide distribution, and a proven, shareholder-aligned management team.

BSD Analysis:
Boston Beer is a brand portfolio bet in an alcoholic beverage market that has shifted from “everyone drinks craft beer” to a much more fragmented, trend-driven landscape. The company’s strength is innovation and distribution reach, but the category has become brutally competitive, with shifting consumer preferences toward spirits, RTDs, and non-alc options. Margins depend heavily on mix and forecasting—when inventory is wrong, the write-downs are painful and the market remembers. The upside is that strong brands can regain momentum quickly if the portfolio aligns with demand, especially as pricing stabilizes and promotional intensity fades. The downside is that beverage trends are fickle, and growth is harder when the core beer category is slow. Execution is everything: product pipeline, marketing efficiency, and inventory discipline. If management nails the mix, the stock can rebound sharply because expectations are usually either too high or too low.

Pitch Summary:
Dycom Industries, Inc. (DY), a leading provider of engineering and construction services to the telecommunications and utility industries, was a top contributor in the Small Cap strategy in the second quarter. Revenue was up 10% and Adjusted EBITDA was up 15% primarily due to recent acquisitions. Backlog hit a record high, and management increased the full year revenue guidance. The demand drivers such as fiber-to-the-home deployments, AI data center infrastructure, and state and federal broadband programs remain in place, and as the industry’s largest provider of engineering and construction for fiber networks, we believe DY is positioned to benefit. Also, with Net Debt/Adjusted EBITDA of ~1.7x, we believe DY has the financial flexibility to continue pursuing value accretive acquisitions of smaller contractors.

BSD Analysis:
Dycom is a picks-and-shovels play on fiber buildouts and network upgrades, doing the physical work that makes broadband expansion real. When telcos and cable operators are spending, Dycom’s volumes and margins can ramp quickly because fixed costs don’t rise as fast as revenue. The bear case is timing: carrier capex is cyclical, subject to budget pauses and permitting delays that can whipsaw results. The bull case is structural—data demand keeps climbing, fiber penetration is still expanding, and networks need constant upgrades. Dycom’s scale and specialized crews create an execution moat that smaller contractors can’t easily replicate. Investors should watch backlog quality and customer concentration because a few carriers drive a lot of demand. If the next capex wave hits, Dycom tends to act like a torque machine.

Pitch Summary:
Boot Barn Holdings, Inc. (BOOT) was the top contributor in the Small Cap strategy. After a pullback in the first quarter, which we believe was due to concerns about the cost of tariffs and weakening consumer confidence, BOOT recovered nicely after reporting their fiscal 4th quarter and full year (2025) results. For the full year, sales were up 14.6%, and same store sales increased 5.5%. In the current quarter, they report that same store sales are up approximately 9%. They opened 60 new stores last year, bringing their total store count to 459, and they plan on continuing to open new stores at a rate of approximately 15% new floor space per year. They shared the tariff mitigation plan which includes meaningful supply chain moves away from China in the coming quarters. All in all, the BOOT thesis remains intact: growth through new stores and same store sales; growth in their higher margin proprietary brands; and their balance sheet is in excellent shape with no net debt.

BSD Analysis:
Boot Barn keeps proving that “Western wear” isn’t a niche—it’s a scalable specialty retail category with real brand heat and loyal customers. The company’s growth engine is still new stores with strong unit economics, supported by a merchandising model that travels well outside its historic regions. Private-label penetration is a key margin lever, and Boot Barn has been smart about pushing it without turning the assortment into generic fast fashion. The risk is consumer softness and promotional pressure, but Boot Barn tends to outperform because it sells identity-driven product, not pure commodity apparel. Inventory discipline is critical in retail, and Boot Barn’s ability to manage turns will determine how clean the next few quarters look. If the macro improves even slightly, this business has meaningful operating leverage. It’s one of the rare retailers that can still look like a compounder, not a survival story.

Pitch Summary:
Nvidia, a pioneer of GPUs since 1999, has evolved from a gaming hardware provider to the linchpin of the AI revolution. Nvidia’s main business currently is selling GPUs for data centers. It is however much more than merely a hardware business. Today, Nvidia’s ecosystem—comprising cutting-edge hardware, software libraries, interconnect solutions and a large and growing developer base—underpins its market leadership. This ecosystem, cultivated over decades under the leadership of Nvidia’s visionary founder, Jensen Huang, helps to entrench customers (by creating high switching costs) and results in recurring revenues from hardware upgrades and software licensing over time. Importantly, we also believe that it insulates Nvidia to a degree from competitors despite fierce rivalry in AI hardware. Given where one is currently in terms of AI adoption and usage, demand for Nvidia’s products is likely to remain strong. LLM usage continues to grow significantly and the evolution of these LLM based products to include features such as memory (remembering all previous personal interactions) and multi-step processes, are likely to continue to leave AI companies compute constrained for a while, even with improvements in efficiencies. This is likely to lead to continued growth from here for Nvidia in its data center business, albeit not at the levels previously seen. While we expect Nvidia to face greater competition in inference than it currently enjoys in training, the size of the inference market is expected to be multiples larger than the training market in the long term, providing significant further opportunities for growth. In addition, we would expect that as inference performance continues to improve, the use cases are likely to continue to grow from here. Whilst we believe that the market to some degree appreciates the large opportunity that Nvidia has from a hardware perspective, the real long-term upside in Nvidia, which we believe one is not paying for, is its services business. Of their ~36,000 employees, around 75% are involved in research and development. It is believed the majority of these roles are engineering. The Company states over half their engineers work on software, and all of them have access to advanced AI tools. Software revenues are currently a very small portion of their business, but are likely to become a meaningful contributor in the coming years. Nvidia’s GPUs, (unlike general-purpose CPUs), require tailored software and algorithms to fully leverage their parallel computing capabilities for AI and other high-performance tasks. Software does not automatically benefit from GPU acceleration; it must be specifically designed to exploit the architecture. Nvidia’s early focus on accelerated computing also resulted in deep learning frameworks (such as PyTorch and TensorFlow) being developed to leverage CUDA for optimum performance on Nvidia GPUs. As investors in Apple early in the prior decade, we have experienced first-hand how valuable the transition of a business to high-margin services is, once a company leverages its dominant installed base. We believe Nvidia’s hardware dominance provides it with a similar opportunity for significant growth in software and services well into the future.

BSD Analysis:
NVIDIA remains the central hardware and software backbone of modern AI infrastructure, with unmatched leadership in GPU compute, CUDA adoption, networking bandwidth, and accelerated computing. Its 90% share of AI training reflects the depth of its ecosystem and the high switching costs competitors face in replicating both hardware and software performance. While growth in the core data-center GPU business may decelerate from extraordinary levels, Nvidia’s long-term financial engine now includes emerging business lines in software, inference platforms, simulation (Omniverse), robotics, and automotive AI. These carry structurally higher margins and recurring revenue potential. Importantly, Nvidia’s R&D intensity—one of the highest in the S&P 500—positions it ahead in next-generation architectures, giving it a durable moat. The market underappreciates the multiyear expansion in services and inference workloads, which could materially increase earnings power. Key risks include increased competition in inference, geopolitical restrictions on chip exports, and hyperscaler verticalization, but the company’s ecosystem strength provides substantial insulation.

Pitch Summary:
MOD – Since our introduction of this new holding last quarter, Modine Manufacturing Company (MOD) has continued to execute effectively under CEO Neil Brinker’s leadership, leveraging the Danaher Business System (DBS) playbook to drive robust performance. Despite offering a wider than expected initial guidance range for FY 2026 due to difficult to forecast macro conditions at the time of reporting last quarter, the company still expects to sustain attractive topline growth which can be leveraged into mid-teens earnings growth in coming years. These financial results should be supported in part by durable demand for its data center cooling products in its Climate Solutions segment as well as sizeable margin enhancements in its slower growing Performance Technology segment. The transformation, now four years in under CEO Brinker, is off to a promising start as the company continues to move its mix of business units into higher return, more attractive end markets. Thus far, management has proven adept at targeting smart tuck-in acquisitions in high growth end markets where it can leverage its climate control technological expertise while also pruning its portfolio of businesses by parting ways with business units serving less attractive end markets. Some parallels can be drawn by examining the long-term success of companies like Roper Technologies, Inc. (ROP), given a shared philosophical view in how the application of a lean and Kaizen focused operational playbook can be supplemented with smart acquisitions informed by the 80/20 philosophy to shape an attractive portfolio of businesses. The $100M share repurchase program, initiated last quarter, should enable the company to capitalize on the stock’s current trading multiple of ~16x NTM P/E, a valuation which should prove attractive given the long-horizon growth opportunity in front of the company.

BSD Analysis:
Modine’s disciplined execution under CEO Brinker mirrors proven DBS/lean systems that historically drive margin expansion and strategic focus. Data-center cooling demand provides a secular tailwind, while portfolio pruning and targeted tuck-ins shift the mix toward higher-ROIC businesses. With mid-teens EPS growth potential and valuation at ~16x NTM earnings, MOD trades below peers benefiting from similar structural themes. Margin expansion in Performance Tech plus Climate Solutions growth offer multiple levers for value creation. A $100M buyback provides downside support and capital allocation discipline.

Pitch Summary:
MGNI – Market volatility and economic concerns were the primary forces pushing MGNI to trade in such a wide range during the first half of the year, as markets briefly priced severe cuts to ad budgets into the stock. As economic storm clouds lifted, evidence began to emerge that ad budgets largely remain intact relative to prior expectations, and though the company suspended its guidance for the second half of the year, it seems its prior views will likely be sustained. Aside from positive channel checks, encouraging peer reports and general news of resilient ad spending, perhaps more interestingly, these checks suggest that advertiser television ad budgets now favor CTV (i.e., streaming) over traditional linear TV, a shift in advertiser TV budgets long underway that has reached the critical equilibrium mark. Netflix is of course some part of this, as their advertising efforts continue to gain scale, but the tide is also turning more broadly. The company’s recent earnings call also produced some noteworthy data points, as management highlighted the benefits of potential market share gains should the DOJ force any remedies on Google as a result of the ad tech trial ruling issued in April. The remedies trial remains set for September 22nd. Developments there will likely be contested and remain somewhat unpredictable. A second ad tech trial will soon start in August in Texas, which is also likely to have some ramifications on potential outcomes. Suffice it say, court filings and testimony transcripts make for interesting reading, and we are tracking developments closely. For now, and until further news breaks, it is encouraging to see the company continuing to announce a steady stream of new customer wins, recently adding Amazon, Pinterest, Redfin and Paramount Australia to a customer list that has been growing impressively lately.

BSD Analysis:
Choice Equities argues MGNI is positioned to benefit from resilient ad spending and a major structural shift toward CTV, which now surpasses linear TV in budget allocation. Despite suspended guidance, channel checks indicate stable demand, and MGNI could gain share if DOJ rulings constrain Google’s ad-tech dominance. Valuation remains depressed relative to strategic value given MGNI’s CTV exposure and expanding customer list (Amazon, Pinterest, Redfin). The upcoming DOJ and Texas trials represent potential catalysts, while continued customer additions highlight competitive momentum. Given CTV’s double-digit growth and MGNI’s scaled SSP position, revenue acceleration could support multiple expansion.