Investment Pitches

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.

Pitch Summary:
We met with VHI management in June, and the focus of the discussion was on growth, margins, and outlook. They just announced the acquisition of Novari Health for $44M which matches their stated focus of growing their patient referral software. 90% of patient referrals are still done by fax/phone. Novari and VitalHub’s Strata software are seeing strong growth as this part of the healthcare system digitizes. They will be able to cross-sell Novari, as well as quickly improve their profitability. They have three AI products in R&D due to client demand. It will probably be in 2027 when these products are being rolled out in scale. Management noted they can fund meaningful acquisitions with current cash flow. Based on the above, they should get to $200M in revenue within 2-3 years and streamline acquired companies’ profit margins to ~35% EBITDA margins. This equates to ~$70M of EBITDA and a market cap of ~$1.6B, or about $28/share.

BSD Analysis:
VitalHub is a Canadian health IT company focused on software for mental health, community care, and hospital workflow management. Its products help providers manage patient flow, waitlists, and resources—pain points that only get worse as systems are stretched. The company has grown via acquisitions, rolling up niche vendors into a broader platform. The key is integration and cross-selling, turning a collection of tools into a cohesive suite. Healthcare software tends to be sticky once embedded, but sales cycles are slow and procurement can be political. If VitalHub keeps tightening its product stack and expanding internationally, it can quietly compound. It’s a classic small-cap roll-up in a structurally messy but growing niche.

Pitch Summary:
Enterprise closed their acquisition of Flex Energy Canada on May 8th. Their next quarter will include roughly 2/3rd of Flex’s quarter, which will give investors a glimpse into the profitability of the ~60 service contracts and 17 turbines in operation. Now Coastal GasLink and the LNG Canada export facility in Kitimat are operational, and the first ever shipment of Canadian LNG was sent to Asia at the end of June. Canada LNG is the lowest cost natural gas in the world, which supports significant demand during a time of constrained power supply. During our recent meeting with Enterprise most of the discussion was around expanding their power solutions in permanent installations. They plan on targeting the design & build companies like Stantec, where they’ll be involved early in the construction process. We expect the business to show significant strength in the second half of this year with strong Q3 and Q4 earnings in 2025.

BSD Analysis:
Enterprise Group is a small Canadian energy services and equipment company, providing rental and infrastructure services to resource projects. Its revenue is closely tied to upstream and midstream capex in Western Canada. When activity is strong, utilization and pricing improve quickly; when it slows, the business feels it fast. The company has been pushing more into specialized equipment and efficiency solutions, trying to differentiate from generic gear rental. Balance sheet and capital discipline are key in a cyclical, small-cap name like this. It’s the kind of stock that can look optically cheap at the top and distressed at the bottom. Definitely not one for investors who need smooth lines on a chart.

Pitch Summary:
Luxury goods is a meaningful weight in our growth benchmarks within the consumer discretionary sector. Here we exited longtime holding LVMH to fund the purchase of Switzerland’s Richemont. We believe LVMH’s restructuring efforts will take some time, while Richemont’s are recently completed and should lead to improving performance. Additionally Richemont, known for its Cartier, Van Cleef, Buccellati and ultra luxury watch brands, has been an outlier in the luxury industry by not yet aggressively raising prices.

BSD Analysis:
Target is a compelling contrarian value play in the retail sector, trading at a deep discount despite a best-in-class operational moat that is still accelerating. The stock's current low valuation, at roughly 10.8x forward P/E, is a gross mispricing compared to peers and its own historical multiple, driven by short-term pressures in discretionary sales. However, Target's unique competitive advantage—the "stores-as-hubs" omnichannel model—is structurally sound, fulfilling over 80% of online orders within one day via Drive Up and Order Pickup services. This hybrid model converts its physical footprint into a high-margin logistics asset. The company's owned brands (generating over $30 billion in annual sales) provide a superior, high-margin buffer against raw price competition from Amazon and Walmart. Management is actively fortifying this moat by investing in sortation centers and aggressively utilizing a large $8.3 billion share repurchase authorization. This combination of operational efficiency, high-margin mix, and disciplined capital return positions Target for a significant multiple re-rating as consumer discretionary spending normalizes and the market recognizes its durable competitive edge.

Pitch Summary:
Canada’s Agnico Eagle Mines is a best-in-class gold miner that gives provides direct exposure to appreciating gold prices. The company operates only in stable jurisdictions, has industry-best cost inflation management, long-lived assets and balanced production growth financed with internal cash flows. Structural names like Agnico Eagle provide a unique growth exposure as gold is an attractive store of value that protects against uncertainty and inflation and that we believe can serve as a hedge against a weak dollar and geopolitical tensions.

BSD Analysis:
Agnico offers leveraged upside to gold in a high-uncertainty, inflationary macro regime while maintaining conservative balance sheet and jurisdictional risk. Its high-quality resource base and disciplined capital allocation support strong free cash flow even at mid-cycle gold prices. Ongoing optimization and brownfield expansions should sustain moderate production growth without stretching the balance sheet. The stock trades at a reasonable NAV multiple relative to peers given its superior cost curve position and asset quality. As investors seek inflation hedges and safe-haven exposure, Agnico’s premium could widen.

Pitch Summary:
New purchase E.On, a diversified German utility, should benefit from the government’s political consensus for higher investment in grid infrastructure. This commitment should also drive an improved regulatory environment for electricity networks with higher allowed returns to attract capital. In addition to higher returns, E.On should see accelerating asset growth as capex is increasing at a robust pace. We believe a strong balance sheet should further transform the company into a credible structural growth story in utilities underappreciated by investors.

BSD Analysis:
E.On offers a rare growth profile within European utilities, where rising grid capex and supportive regulation expand its regulated asset base and earnings power. Higher allowed returns, coupled with multi-year visibility on investment plans, should drive steady EBITDA and dividend growth. The balance sheet provides ample capacity to fund capex without dilutive equity issuance, enhancing equity holders’ leverage to the capex cycle. Despite this, the stock trades at only a modest premium to slower-growing peers. As investors re-rate structural grid stories, E.On’s valuation multiple has room to expand.

Pitch Summary:
U.K. supermarket chain Tesco, in the secular growth bucket, is a good example of a company focused on its home markets of the U.K. and Ireland. Shares sold off in March following widespread price cuts by a U.K. competitor, providing an attractive entry point into a company we believe is best positioned in an industry facing accelerating food inflation. While U.K. discounters have increased competition, Tesco can expand margins through investments in loyalty programs, scale-driven efficiencies and optionality from its wholesale distribution business.

BSD Analysis:
Tesco combines dominant scale with improving economics in a structurally attractive food retail market characterized by rising nominal spend from inflation. Its Clubcard ecosystem and data analytics should support mix upgrade and targeted promotions, underpinning gross margin resilience even as competition from discounters persists. Operating leverage from cost efficiencies and logistics optimization can drive steady EBIT growth and free cash flow. Valuation remains undemanding on a cash-flow and EV/EBITDA basis relative to defensive staples peers. With disciplined capex and a growing dividend, Tesco offers a compelling total return profile.