Investment Pitches

Pitch Summary:
Howmet is a precision-engineered aerospace and defense supplier that benefits from long product cycles and high switching costs. Its exposure to both commercial and military aircraft demand creates a durable earnings stream. We value HWM not just for its strong fundamentals, but for its discipline in capital allocation and margin expansion potential as the aviation cycle continues to recover post-COVID.

BSD Analysis:
The manager's thesis for Howmet centers on the company's defensive business characteristics, including long product cycles and high switching costs that create customer stickiness. The dual exposure to commercial and military aircraft provides earnings diversification and stability. The manager emphasizes both fundamental strength and management quality, specifically highlighting disciplined capital allocation as a key value driver. The post-COVID aviation recovery theme suggests the manager sees margin expansion opportunities as demand normalizes. At 5.75% portfolio weight, this position reflects confidence in the aerospace recovery cycle and Howmet's ability to capitalize on improving industry dynamics while maintaining operational discipline.

Pitch Summary:
Credo is a stealthy compounder in the high-performance connectivity and data infrastructure space. As AI workloads explode and data centers scale up, Credo's low-power, high-efficiency solutions are becoming increasingly mission-critical. We believe the company is still early in its growth arc and well positioned to benefit from secular trends in hyperscale data transmission and edge computing.

BSD Analysis:
The manager positions Credo as a beneficiary of the AI infrastructure buildout, emphasizing its role in high-performance connectivity solutions. The 'stealthy compounder' characterization suggests the manager believes the market hasn't fully recognized Credo's growth potential. The investment thesis is built around secular tailwinds from AI workload growth and data center expansion, with Credo's low-power, high-efficiency solutions becoming mission-critical infrastructure. The manager's confidence in the company being 'early in its growth arc' indicates expectations for sustained growth driven by hyperscale data transmission and edge computing trends. At 6.7% portfolio weight, this represents a significant conviction position in the AI infrastructure theme.

Pitch Summary:
Robinhood is not just a brokerage app—it's a disruptive financial platform rewriting the rules of consumer finance. With its $0 trading model, Robinhood forced incumbents to adapt, but now it's doing the same to banking. The newly launched Robinhood Gold credit card offers 3% cash back—confounding traditional banks. Why? Because Robinhood doesn't have the legacy cost structure of old-world financial institutions. This card is more than just a product; it's one of the most brilliant customer acquisition tools we've seen in fintech. We see Robinhood as a Trojan horse in retail finance—nimble, bold, and rapidly expanding its ecosystem.

BSD Analysis:
The manager presents a compelling bull case for Robinhood, viewing it as a transformative fintech platform rather than just a trading app. The thesis centers on Robinhood's structural cost advantages over traditional financial institutions, enabling innovative products like the 3% cash back credit card. The manager emphasizes the strategic value of this card as a customer acquisition tool, suggesting it will drive ecosystem expansion. The 'Trojan horse' metaphor indicates the manager believes Robinhood is positioned to disrupt multiple areas of retail finance beyond brokerage. At 8.0% portfolio weight, this represents a high-conviction position reflecting the manager's confidence in the company's disruptive potential and ability to leverage its cost structure for competitive advantage.

Pitch Summary:
Despite the uncertainty, I feel quite good about our portfolio. Our real estate assets are trading at high yields and significant discounts to private market and historical prices. If/when rates decline, we should be very well positioned to benefit. We have a good deal of cash, and I have also taken out some hedges around the downside risk, specifically focused on what I view as one of the most over-valued stocks in the market, Palantir. Palantir is a software firm which originally focused on government clients and has since expanded into the private sector. As far as I can tell, Palantir offers more 'secure' versions of basic software to clients in government or regulated businesses such as healthcare or finance, and also has a large custom software creation & consulting business. The reason I hedge here is that Palantir itself is very broad and vague as to what it actually does, but the above is my understanding from ground level research. What is interesting about PLTR is the valuation. Palantir, trading at a wild ~nearly 90 times revenues and 400+ times earnings as of this writing, is by some measures the most expensive large cap stock ever to exist, and is still one of the most expensive ever when looking across any stock size. Many of the firms with similar eye-popping valuations historically had huge assets which were not yet generating cash flow (biotechs, LNG terminals, etc). If you strip those out, there are hardly any firms that have ever been this richly valued, and basically every other firm that was has done poorly to horribly over the next several years post peak. Another way to think about PLTR is, how much would it have to grow to justify the current stock price? A rough heuristic used in the tech world is good software companies trade for 10x revenues. Really good ones can be higher (or during frothy markets). One could argue (and I would argue this!), that this level itself would be much lower during a down market, but lets just assume it is fair for now. MSFT for example is ~13, Google is actually only ~5.5 for some context. Given PLTR trades at ~90 times sales, what this means PLTR has to literally ~9x their revenues to grow into the current valuation. Lets say PLTR can hold this value for 5 years – to grow into the valuation over 5 years means an annual revenue growth rate of 54%, per year. Over 7 years that number is 36%. Palantir's own 5 year measure here is a bit over 30%. Now – is it conceivable that Palantir eventually can grow its revenues from the current $3.6 billion to $32 billion in the next 5-7 years? Certainly. But it would rank among the fastest growth rates at that scale of nearly any firm, ever. And I believe it would be by far the fastest of any software firm of this size. The biggest revenue growers of all time are products that are consumer oriented, particularly with network effects (Meta, Google, Amazon). This is because the consumer market is the largest market, and network effects can power rapid growth. The other big bucket of really rapid growth at scale has been cloud services. This is a capital intensive business, but nonetheless is extremely broad in scope as it targets almost any firm. That field has only sped up as it bleeds into general consumer use via AI. Business software on the other hand, is typically limited to a given market and use, and often has long, difficult sales cycles. And the total value one can charge for the software is limited by the specific value provided and the use case. This means the scale of the software is inherently limited by the market it targets. Now one can always add new features (if you can find something users want), or even expand into entirely new markets and products, but fundamentally any given piece of business software is relatively limited in how big its sales can get. This means business software firms often grow quickly for awhile, as they pick up customers in their initial niche, but eventually slow down as they saturate their given market. To expand further, they need to build new software products. This is often difficult outside the initial target market. So fundamentally, business software has just never grown at the rate Palantir needs to growth to justify their valuation, at Palantir's scale. But I'm willing to take the other side of that bet, particularly as a hedge. If we have a recession I will bet that tech multiples are not 10x sales, but closer to 5x or even lower. That would of course compound with belt tightening and slower revenue growth… it wouldn't be crazy at all to see Palantir trade as low as $10/share in a rough downturn in my view. That would be ~6.6x current revenue, call it 5 with a bit of additional growth. You can buy puts $40 dollar puts 2.5 years out for ~$4. If we have a bad downturn these could be worth 5x if the stock goes to $20, and 7.5x at 10! The beauty of this particular hedge is that not only is the risk/reward skew huge in a downturn, there are a number of non downturn scenarios in which you can get paid as well (albeit likely for higher dollar strike prices, although very possible a $40 gets paid in a 22/23 style tech decline).

BSD Analysis:
The manager presents a comprehensive bear case against Palantir as a portfolio hedge, targeting what he considers one of the most overvalued large-cap stocks in history. Trading at approximately 90x revenues and 400x+ earnings, PLTR requires 54% annual revenue growth for five years to justify its current valuation at normalized 10x sales multiples. The manager argues this growth rate would be unprecedented for enterprise software at Palantir's scale, noting that business software typically faces market saturation and long sales cycles unlike consumer-oriented platforms with network effects. He questions the company's vague business description and limited technical acclaim from users. The hedge strategy involves purchasing $40 puts with 2.5-year expiration for $4, offering asymmetric upside if the stock declines to $10-20 during a recession. The manager views this as an effective portfolio hedge given the extreme valuation disconnect and potential for significant multiple compression in a downturn.

Pitch Summary:
In fact one of these other investments, Sportsman's Warehouse, was a strong driver of our performance in the quarter. We invested in SPWH in Q1 and early Q2, at an average basis of $1.68/share - now it trades at ~$3.5 due to strong Q1 results (although very volatile!). The investment here was fairly simple - Sportman's is a sporting goods & hunting retailer with a large focus on firearms, which has suffered from a covid demand pull forward hangover, over expansion, & mismanagement. Same store sales had been negative for several years now, but a new CEO was brought in and seemed to be making progress turning it around. At our investment price, the stock was dirt cheap if the turnaround was successful - a mere 3x stabilized ebitda (which would itself be well below pre-covid margin and store level sales). The turnaround is certainly not done, but they posted positive same store sales in Q1 for the first time in a long time, and continue to reduce costs and improve margins, triggering a big rally. Critically for me, the category feels like it has real legs, as competitors Dicks and Bass Pro were doing fairly well, and the store base is actually quite new and nice. The main downside here (thus far) is this was a relatively smaller position, so the overall fund impact isn't enormous. Still - if we have a recession Sportsman's may be put into a difficult position of seeing sales fall again before their turnaround is complete, so there is real macro risk here beyond the execution risk.

BSD Analysis:
The manager presents a compelling turnaround thesis for Sportsman's Warehouse, purchasing shares at $1.68 and seeing them appreciate to $3.50 following strong Q1 results. The investment was predicated on a new CEO's turnaround efforts after the company suffered from COVID demand normalization, overexpansion, and poor management. At the entry price, the stock traded at just 3x stabilized EBITDA, representing significant value if the turnaround succeeded. The thesis gained validation with the company's first positive same-store sales growth in years, accompanied by cost reduction and margin improvement. The manager notes competitive strength in the category, with Dick's and Bass Pro performing well, and highlights the relatively new store base as an asset. However, he acknowledges execution risk and macro sensitivity, particularly if a recession interrupts the turnaround before completion.

Pitch Summary:
The author states that Finseta (#FIN) continues to demonstrate strong customer momentum despite macro uncertainty, with client numbers up 15.6% YoY in H1’25 to 1,101. Revenue grew 16% YoY to £5.9m, reflecting robust onboarding across high-net-worth individuals and corporate clients. Short-term gross margin and EBITDA softness stemmed from FX volatility, delayed overseas property transactions, and deliberate reinvestment in proprietary software, compliance infrastructure, and international expansion (notably Dubai and Canada). Management expects a materially stronger H2’25 as deferred transactions complete, new clients begin transacting, and overseas growth ramps. Broker expectations point to FY’25 revenue of £9.2m and EBITDA of £1.4m, with margins recovering as conditions normalize. The company remains net cash and positions recent initiatives—such as its corporate card scheme—as contributors to future growth.

BSD Analysis:
The cross-border payments industry rewards platforms that combine regulatory credibility, client trust, and service quality rather than pure price competition. Finseta’s competitive position is strengthened by its focus on HNWIs and corporates, segments with higher ticket sizes, repeat usage, and switching costs driven by compliance and relationship depth. Secular globalization of wealth, property ownership, and international corporate activity supports long-term transaction growth, even if near-term volumes are volatile. Margin compression in H1 appears cyclical and investment-driven rather than structural, suggesting operating leverage as volumes recover. The main risks are prolonged FX volatility dampening client activity and execution risk in new geographies with higher regulatory complexity. However, accelerating client acquisition during a weak macro period is a leading indicator of future revenue inflection. Valuation typically lags transaction normalization in payments businesses, particularly when EBITDA is temporarily suppressed by growth spend. If H2 conversion materializes as guided, Finseta’s earnings power and margin profile should improve meaningfully, supporting re-rating potential.

Actual Post Content:
#FIN Constantly delighting customers is an essential part of the DNA of successful businesses. It’s no different in the foreign exchange world. Where despite the ongoing macro uncertainty, @_finseta - a cross border payments platform for high net worth individuals (HNWIs, 42%) and corporates (58%) – again secured a host of new clients in H1’25 (up +15.6% YoY to 1,101, +4.0% vs Dec’24). This impressive growth translated into a 16% YoY jump in revenues to £5.9m. Albeit due largely to the market volatility, there were fewer overseas property transactions completed by HNWIs in Q2, which impacted mix and gross margins (H1'25 62% vs 65.7% LY). Here nudging down adjusted EBITDA to c. £0.3m (£0.8m), as strategic investments were also made in #FIN's proprietary software, regulatory/compliance systems, international expansion (eg Dubai & Canada) and introducer network. That said, much stronger performance is anticipated in H2’25 (@ShoreCapital : Est sales £9.2m, EBITDA £1.4m). As forex rates normalise, confidence returns, overseas sales climb (re Canada and Dubai) and deferred property transactions are completed, alongside those newly onboarded clients starting to transact. So putting all this together, the Board expects “FY’25 results to be in line with its expectations” delivering improved gross margins too vs H1’25. CEO James Hickman commenting: 'This has been a milestone period for Finseta as we launched our corporate card scheme and significantly expanded our international capabilities with full-service offerings in Dubai and Canada. While the global economic conditions resulted in customers delaying transactions, our strong levels of customer acquisition means we are well-positioned as markets normalise in H2. As a result, and with our new strategic initiatives set to ramp-up in H2, we remain on track to deliver significant revenue growth for FY’25 and look to the future with great confidence.' Lastly net cash closed June at £0.4m vs £0.6m Dec’24. Interims are scheduled for Sept’25.

URL: https://x.com/CapitalPmh/status/1942856023632478644

Pitch Summary:
TripAdvisor was down in Q1 despite a solid earnings report. It was one of the few stocks we bought near the bottom. It spiked in early Q3 after activist firm Starboard Value disclosed a 9% stake. TripAdvisor has turned away takeover offers and recently cleaned up its ownership structure. Viator’s growth is strong enough to carry the overall business, and activist pressure may push management to reconsider strategic alternatives.

BSD Analysis:
TripAdvisor is a tourism data giant trapped in the body of a fading review site, and the market keeps missing the pivot. Experiences and Viator are where the real growth lives, tapping into a massive global shift from goods to experiences. The core ad business is stabilizing, which removes the biggest bear narrative. Competition is intense, but TripAdvisor still owns consumer intent at the top of the funnel — and intent is monetizable even when traffic flatlines. Management finally appears willing to restructure the bloated cost base, giving EBITDA real torque. With global travel still booming, the setup looks better than the sentiment suggests. If TripAdvisor ever actually executes like a modern platform, this stock isn’t priced for it.

Pitch Summary:
ABM Industries is seeing its microgrid business grow to the point where it may start pushing the needle on overall growth—up 34% in Q1 and now 10% of the business. The rest of the business—janitorial and maintenance services for offices, schools, and airports—is growing closer to 4%. It’s not as cheap as Steelcase, but this is a company that doesn’t worry me, and we bought more shares after an earnings sell-off.

BSD Analysis:
ABM is the kind of facilities-services compounder nobody pays attention to until margins quietly grind higher and the stock rerates out of nowhere. Its diversified client base gives it insulation from any single sector downturn, and outsourcing demand only grows when corporate budgets tighten. ABM’s move into higher-value verticals like data centers and aviation gives the business a stickier, more premium mix than its legacy janitorial roots suggest. Labor inflation is a challenge, but ABM has shown it can pass through pricing without losing customers. The company executes best when macro is messy, because clients lean harder into operational simplification. Investors treat ABM like a sleepy roll-up, but the operating leverage inside the model is real. This is a slow-burn quality story hiding behind a generic name.

Pitch Summary:
Deckers sells shoes under the Uggs, Hoka, and Teva brands. Uggs is 51% of its sales; Hoka is 45%. Goods are produced predominately in Vietnam. Uggs is more fashion-oriented and volatile, while Hoka is a newer running shoe brand with strong growth. Uggs sales grew 8.4% over the last 3 years; Hoka grew 35%. With tariff uncertainty and fears of slowing growth, Deckers shares fell over 50% this year. We bought shares at $105. At that price, valuation is reasonable: 11x EV/EBITDA vs. 9.2 for Lululemon and 24.7 for Nike, and 17.3x forward earnings vs. 16.1 for Lulu and 45.2 for Nike. If Hoka momentum continues, the company should perform well.

BSD Analysis:
Deckers offers asymmetric upside due to Hoka’s explosive growth trajectory and the market’s overreaction to tariff overhangs. Hoka’s global adoption curve and margin accretion remain underappreciated relative to peers. Shares trade at discounted multiples despite premium brand assets and strong balance sheet. Catalysts: easing tariff fears, Hoka outperformance, normalized consumer demand.

Pitch Summary:
Lyft is a ride-hailing company, though it also provides bikes and scooters and other transportation. It has been a loss-maker and a bad investment since coming public. It priced its initial public offering at $72/share. We bought shares 6 years later at $14.5, 80% lower. Its operating losses in 2022 and 2023 were nearly $2B, vs. a market capitalization of $6.1B at where we bought it. Uber is the dominant player, competing at a much different level than Lyft. Lyft has a new management team as of April 2023. Lyft is still growing very fast – 31% revenue growth last year, 13.5% to start 2025. It has a very strong balance sheet, with over $1B in net cash available. Its operating loss has narrowed to the point where the interest it earns on its cash holdings makes it profitable in 2024 and Q1 2025. We bought it for less than 10x free cash flow adjusting for net cash. Lyft has settled into a clear #2 in a U.S./Canada duopoly with Uber, with room to grow both domestically and abroad.

BSD Analysis:
Lyft’s improving unit economics, substantial net cash, and stabilizing competitive landscape support a credible profitability trajectory. At <10x adjusted FCF, valuation reflects excessive pessimism despite accelerating revenue growth and improving insurance cost trends. Optionality from FreeNow acquisition and international expansion provide further upside. Key catalysts: margin expansion, normalized insurance reserves, stronger ride volumes.

Pitch Summary:
We have held this company for over a year now and are still waiting for our thesis to play out. We continue to believe that the company will unlock shareholder value moving forward, and its valuation is highly attractive. The company we are discussing is Verizon Communications, one of the three largest telecommunications companies (by revenue) in the U.S. Verizon, along with AT&T and T-Mobile, dominates the U.S. telecommunications industry... Earnings-per-share came in at $1.22, a 6.1% year-over-year increase... Verizon increased its 2025 free cash flow guidance quite substantially. This is important as free cash flow support Verizon's substantial dividend.

BSD Analysis:
Verizon is the U.S. wireless incumbent built for stability, not glamour. Its network reliability keeps churn low, and premium postpaid subs anchor cash flow. The downside: wireless growth is slow, and capital intensity is permanently high. The upside: predictable cash generation and a hefty dividend. 5G monetization has been slower than hoped, but fixed wireless is a real bright spot. Verizon won’t surprise, but it rarely disappoints. A defensive income machine in telecom.

Pitch Summary:
LAKE's sales in high-margin Latin American and Canadian markets fell significantly short of expectations due to tariff announcements that affected timing of orders. The company also has a substantial order that was manufactured and is prepared for shipment but has been delayed. We anticipate these challenges largely will be resolved in the third quarter.

BSD Analysis:
Lakeland Industries is a high-risk, high-reward safety apparel pure-play whose stock is an asymmetric recovery bet on its ability to repair its historically volatile margins. The core thesis is driven by the consensus view that earnings must pivot from multi-year declines to substantial profitability (15.0% margin target by 2028) to justify the current stock price. The company's unassailable market moat is its specialized protective clothing (chemical, fire service) for non-cyclical industrial and emergency response sectors. The stock is a leveraged play on successful execution of efficiency programs and a shift to higher-margin specialty products.

Pitch Summary:
SKY reported lower-than-expected margins due to higher-than-expected raw material costs, lower utilization at its factories caused by weather, and consumers opting for lower priced options. We think the sell-off is overdone, and we remain bullish on long-term demand for affordable housing.

BSD Analysis:
Skyline Champion is a high-growth, factory-built housing specialist whose stock is a conviction bet on the structural shift toward affordable housing solutions. The core thesis is driven by the massive affordability crisis in the U.S., which makes its manufactured, modular, and park model homes an increasingly non-discretionary alternative to site-built homes. The company's superior scale and efficient factory model allow it to deliver high-quality, energy-efficient housing at a 20%–50% lower cost than traditional builders. The stock is a high-conviction play on the long-term, non-cyclical demand for affordable single-family housing.

Pitch Summary:
NSSC rebounded after management communicated that it is in a better position than competitors regarding tariffs and that the inventory drawdown at its distributors has largely run its course. Growth in the services segment remains resilient and should accelerate as hardware segment sales improve.

BSD Analysis:
Napco is a high-growth, specialized security pure-play whose stock is a conviction bet on the accelerating transition to a high-margin SaaS-driven recurring revenue model. The core moat is its dominance in providing security hardware (access control, intrusion, fire alarms) combined with its rapidly expanding StarLink mathbfCommercial} SaaS platform. This SaaS segment is the key catalyst, driving superior valuation multiples and high customer stickiness. The stock is a high-quality compounder leveraging its technological advantage to capture increasing recurring revenue from the non-cyclical public safety market.

Pitch Summary:
XMTR rebounded from a drawdown caused by tariff uncertainty. The company continues to report rapid growth with its largest accounts and demonstrate operating leverage. We expect that XMTR will ultimately benefit from the increased uncertainty around tariffs and supply chains.

BSD Analysis:
Xometry is a high-growth, AI-powered industrial marketplace whose value is locked in its ability to digitize the fragmented, multi-trillion-dollar manufacturing supply chain. The core thesis is driven by the company's AI-driven Instant Quoting Engine and its massive network of 10,000+ suppliers. This technological edge allows Xometry to instantly match complex manufacturing jobs (3D printing, CNC machining, fabrication) with the optimal supplier globally. The stock is a high-conviction play on the structural digital transformation of the global manufacturing sector, creating a powerful, scalable network effect.

Pitch Summary:
A particularly vivid example of capital discipline in action is Xavier Niel’s transformation of Millicom, the Latin American telecom operator, in which we acquired a position after he began to effect change. Upon building his stake, Niel replaced Millicom’s senior management and pushed through cost reductions of a third or more across both operating and capital expenditures, dramatically improving cash generation. He has also led a flurry of disposals, acquisitions, and partnerships that have sharpened the company’s strategic positioning. Although consensus expects revenue in 2025 to be marginally lower than in 2023, operating income is expected to rise 60%, margins by almost 10 points, and free cash flow from 0% to approximately 15% of revenue. This example demonstrates the potential when a high-agency owner applies rigorous capital discipline and insists on operational efficiency.

BSD Analysis:
Millicom is undergoing a clear owner-driven turnaround, with aggressive cost restructuring and asset optimization materially lifting profitability. A projected 60% rise in operating income and a jump to 15% FCF margins imply a dramatic shift in quality. The company trades at depressed emerging-market telecom multiples despite stabilizing revenue, improving balance-sheet strength, and structurally higher cash generation. Catalysts include continued portfolio rationalization, debt reduction, and expanding margins under Niel’s stewardship.

Pitch Summary:
Karnov Group, the information services provider, which we believe stands to be a major beneficiary of AI related workflows and Hemnet, the real-estate portal. Karnov is a high-quality, subscription-led business operating in a niche of legal and regulatory information services where customer retention is high, pricing power is strong, and barriers to entry are meaningful. In its core Nordic markets, it commands dominant market positions and 40%+ operating margins. The recent adoption of Karnov’s AI tools – priced at a 30% premium to standard licences – is accelerating revenue growth, as legal professionals see clear ROI from improved efficiency; the cost of a licence is a fraction of a junior associate’s salary. This makes Karnov one of the most compelling, tangible AI beneficiaries we have seen in public markets today. The company is also mid-way through integrating acquisitions in southern Europe that came with lower margins and slower growth. However, with clear synergy targets and group-wide cost savings, Karnov is on track to lift margins materially from 22% to 30%+. Product innovation, which had lagged in the new markets during integration, is set to accelerate over the next 12 months – supporting a recovery in revenue growth. Despite its stable cash flows and enjoying similar structural tailwinds, the shares trade at a steep discount to peers like Thomson Reuters – both on earnings and sales multiples – offering valuation upside as the benefits of AI monetisation and margin expansion become more visible.

BSD Analysis:
Karnov’s business model—mission-critical legal software with high switching costs—positions it to compound steadily, while AI-driven upgrades create incremental pricing power. Margin expansion toward 30%+ implies substantial operating leverage, and integration of Southern European acquisitions provides a clear structural improvement path. The company trades at a discount to global information-services peers despite similar defensibility and higher growth optionality. The adoption curve for its AI tools boosts ARPU and long-term retention, supporting mid-teens EPS growth. Catalysts include synergy delivery, accelerating innovation, and re-rating toward Thomson Reuters-like multiples.

Pitch Summary:
Flutter (+29%) reported solid results driven by its US FanDuel business. The company's North American segment posted robust expansion—with quarterly revenue up around +39% year-over-year and adjusted EBITDA growth of approximately +51%. FanDuel further solidified its dominance in the US market, capturing roughly 59% of net gaming revenue in newer states and expanding its lead in iGaming, thanks in part to successful new product offerings and platform improvements.

BSD Analysis:
Despite only a brief update, Flutter’s fundamentals show accelerating U.S. profitability, with FanDuel’s scale advantage cementing long-term dominance. The business benefits from structural tailwinds as more U.S. states legalize online betting, while its 39% revenue growth and 51% EBITDA expansion imply strong operating leverage. Industry data shows FanDuel as the clear market leader, supporting premium valuation multiples. Near-term catalysts include state launches, margin expansion, and increased cross-sell into iGaming. Higher interest in regulated markets and improving unit economics further de-risk the growth outlook.

Pitch Summary:
We recently met with the new CEO of GoEasy and came away with confidence that the long-term growth trajectory is still intact. In June they reached their $5B loan book target, which was 6 months ahead of schedule. They have now shifted discussions to attaining a $10B loan book. Demand for their products is exceptional. They keep diversifying their product set and will be launching a card product later this year. Their late-stage delinquencies are coming down month over month and their revenue yield should continue to improve through the year.

BSD Analysis:
GoEasy is a Canadian non-prime lender focused on installment loans and leasing, serving customers the banks don’t want. That makes it controversial, but also very profitable when done with discipline. The company has built out credit models, collections capabilities, and branch networks that give it a defensible edge in its niche. Credit risk is the main swing factor, especially in a downturn, but GoEasy has shown it can manage losses within a targeted range while still growing. Regulators and public opinion are permanent overhangs, and funding costs matter. Yet the demand for non-prime credit does not disappear. For investors comfortable with the business model, GoEasy offers a high-growth, high-ROE story with obvious risks attached.

Pitch Summary:
We have had a small investment in Tantalus since they reached commercialization of their TruSense Gateway technology, which is used by utilities to monitor their electrical grid. The recent news from Tantalus is that they have their first large order for their TruSense product which supports a fairly significant growth outlook and comes with recurring revenue. We will add to our position as their TruSense offering gains more momentum.

BSD Analysis:
Tantalus provides smart-grid and smart-meter solutions to public power and electric utilities, particularly smaller ones that need modern capabilities without massive custom builds. Its platform helps utilities monitor usage, detect outages, and integrate distributed energy resources. Regulatory and decarbonization pressures mean utilities have to modernize, and Tantalus gives them an approachable path to do that. Recurring software and service revenue is a growing piece of the mix. Sales cycles are long because utilities move slowly, but contracts can be sticky once signed. The name is small and not widely followed, but the theme—grid intelligence—is real. Execution and capital discipline will determine whether it scales into a more widely owned asset.