Investment Pitches

Pitch Summary:
Amplifon is well-positioned in a number of major Western markets where the company benefits from attractive demographics, rising life expectancy and increasing device penetration. Notably, manufacturers have limited brand awareness and retailers play a critical part in the value chain, providing consultative input to customers, which is difficult to disintermediate and enhances Amplifon's scale and buying power. A cyclical slowdown in Europe and overblown technological concerns have driven the company's valuation to its lowest level in over 10 years, providing an attractive entry point. We expect Amplifon to see meaningful organic growth, generate healthy returns and cash flow, and deploy capital in a value-accretive manner.

BSD Analysis:
Amplifon dominates global hearing care with a scale advantage and retail brand that competitors simply can’t replicate. Aging demographics are a structural tailwind, but the real win is rising device adoption as stigma around hearing aids evaporates. Amplifon’s acquisition machine keeps consolidating mom-and-pop clinics at attractive returns. Gross margins remain elite because customers value trust and service more than price. The bear case hinges on device commoditization, but the distribution layer is where the moat lives. As premium devices become more tech-forward, Amplifon’s relevance only increases. This is a classic secular compounder with a long runway.

Pitch Summary:
TeamViewer was the top detractor during the quarter. The Germany-headquartered application software company’s stock sold off after it delivered first-quarter 2025 results. In our view, the sell-off was more corrective in nature as the results were relatively in line with expectations and the stock had climbed in prior weeks. In addition, management reaffirmed full-year guidance, which is loaded towards the second half of 2025. In our view, TeamViewer is trading at an extremely attractive valuation and the market is not properly appreciating its improving resilience and quality due to its growing Enterprise business, which was recently enhanced by the acquisition of 1E.

BSD Analysis:
TeamViewer is clawing its way out of its pandemic shadow, rebuilding its reputation as mission-critical remote connectivity rather than a COVID one-hit wonder. Enterprise adoption is the next frontier, and early traction shows customers view TeamViewer as more than a simple remote desktop tool. Cost discipline has returned, improving margins and resetting expectations. The industrial AR tools remain underappreciated and could become a meaningful differentiator as automation accelerates. The stock still trades like a structurally declining utility app, but churn is improving and enterprise contracts expand wallet share. If management avoids past marketing excesses, profitability looks markedly better from here. This is a turnaround that doesn’t need heroics — just competence.

Pitch Summary:
Siemens Energy contributed 129bps to performance for the quarter. Siemens Energy is a German power equipment and electrical equipment company. The company provides power generation equipment for the gas, wind and nuclear markets, and grid equipment including transformers and storage for the electricity transmission and distribution sector. These products are becoming increasingly critical in the US and Western Europe where there is insufficient power generation supply, and aging sub-scale electrical infrastructure. This robust demand dynamic is increasingly showing up in Siemens Energy’s results with the company growing its orders at over 50% year on year at its latest earnings. Given the momentum in the end markets, we expect the company to formally lift its medium-term earnings growth guidance at its Capital Markets Day in November this year. We also note that with the financial health of the company improving (after difficulties with fixed priced contracts during Covid) it should be able to resume dividend payments in the medium term. In terms of the longer-term backdrop, we expect demand to remain robust. According to the International Energy Agency, less than 30% of global energy use is electrified. Yet we know that to decarbonise things like transport (via electric vehicles), and heating and cooling, we need to power them with low carbon electricity. So, the high voltage electrical equipment from companies like Siemens Energy has an increasingly important role, especially when the overall electricity demand has also increased through artificial intelligence usage. One issue the company needs to continue to work through is its wind segment, which has been challenged for many years. Despite ongoing global efforts to decarbonise electricity generation through adding renewables, equipment manufacturers have struggled to maintain profitability due to the unprecedented input cost inflation and supply chain issues absorbed throughout 2022-2023, which rendered many fixed price equipment and installation contracts unprofitable. Nonetheless, Siemens Energy (and peers) have since rationalised their pricing strategy and are targeting a return to profitability as this unprofitable component of the backlog is worked down. We are confident the industry has now consolidated and rationalised and that Siemens Energy and its major peers are through the worst of the problems.

BSD Analysis:
Siemens Energy is a turnaround story sitting at the heart of the global energy transition, with exposure to turbines, grid tech, and renewables. The wind division’s issues — especially at Gamesa — have overshadowed the stronger transmission and gas-turbine businesses. But solving wind reliability, refocusing contracts, and scaling service revenues can dramatically change earnings trajectory. Grid infrastructure demand is booming globally as electrification outpaces existing networks. The balance sheet is improving with government support and internal restructuring. Siemens Energy isn’t out of the woods, but the strategic positioning is excellent. High-risk, high-reward in one of the most vital industrial sectors.

Pitch Summary:
Microsoft contributed 138bps to fund performance for the quarter. Microsoft is a global technology leader with a diversified suite of products spanning across enterprise software, cloud computing, personal computing, and gaming. The company is uniquely positioned to benefit from a strong presence across the infrastructure, platform and application layers of the AI stack (most notably through Azure AI and Copilot). Just two years into the AI era, its AI business has already surpassed an annual revenue run rate of US$13 billion. We believe Microsoft will play a pivotal role in enterprises moving decisively from experimenting with AI to wide-scale implementation of AI through providing leading AI infrastructure and transforming the way consumers and businesses use software to improve productivity. Despite its clear moat in AI, the company’s share price came under pressure earlier in the year due to concerns about near-term customer demand, data centre lease cancellations, and uncertainties surrounding its evolving partnership with OpenAI. However, Microsoft shares soon rebounded to record highs after the company delivered better-than-expected earnings, with Azure growth reaccelerating to the mid-30% range. Investor sentiment reversed dramatically as management attributed the reacceleration to structural tailwinds including surging AI demand, expanded AI capacity, accelerating enterprise cloud migration, and large commitments from OpenAI for both AI and non-AI Azure services. With agentic AI adoption still in its early innings, M365 Copilot stands out as another growth driver, as enterprises look to expand usage and boost operational efficiency. Management’s disciplined approach to cost control have also provided further upside, as evidenced in their ability to keep operating expense growth flat while revenue growth reaccelerated in the recent quarter. We believe Microsoft remains a highly compelling investment, underpinned by significant opportunities in AI-powered cloud computing and enterprise software, as well as its proven commitment to operational cost discipline. Ultimately, we can see a pathway for Microsoft’s earnings to potentially double over the next 5 years.

BSD Analysis:
Microsoft’s dominance stems from owning the foundational layers of enterprise computing: cloud, productivity, security, and developer tools. Azure’s AI workload momentum remains massive, and partnerships with OpenAI deepen that moat. Copilot’s monetization model is simple and powerful — improve productivity and charge a premium. The company’s product breadth keeps customers inside its ecosystem, making churn nearly nonexistent. Margins remain superb because software economics crush incremental costs. Even in regulatory turbulence, Microsoft tends to emerge stronger. This is the default “core position” in global tech.

Pitch Summary:
Mettler Toledo’s (MTD) stock declined 1% in the face of continued China weakness and broader concerns about the impact of new healthcare regulations and tariffs. Despite weak unit demand, Mettler continues to flex its pricing power and operating leverage to drive shareholder value growth. We continue to view the stock as materially undervalued as the business returns to more durable double-digit annual intrinsic value growth.

BSD Analysis:
A third-party analyst would view Mettler-Toledo as a high-quality oligopolistic lab-instrument franchise temporarily pressured by China exposure and regulatory sentiment. Its ability to sustain pricing power and high gross margins through cycles speaks to the stickiness of its installed base and mission-critical products. As demand normalizes and mix shifts back toward higher-growth life-science and pharma customers, incremental revenue should translate into outsized profit growth. Strong free-cash-flow generation and disciplined capital allocation, including buybacks, support intrinsic value compounding. With the stock trading below its long-term valuation range despite resilient fundamentals, the risk-reward skews favorable for patient shareholders.

Pitch Summary:
Apple (AAPL) shares came under pressure in the first half of calendar 2025 amid concerns over softening iPhone demand, rising competition from Huawei in China, challenges related to the rollout of Apple Intelligence, its new on-device AI offering, and potential tariff-related headwinds. Despite these near-term pressures, we continue to view Apple as a competitively advantaged business, anchored by the strength of its ecosystem. With over 2 billion active devices and more than 1 billion paying subscribers, Apple benefits from a loyal customer base and a growing stream of high-margin, recurring services revenue. This stable cash flow enables continued investment in innovation, even during periods of cyclical softness. We believe the current headwinds are transitory, and Apple remains well-positioned to lead in the emerging category of AI-enabled edge devices.

BSD Analysis:
An independent analyst would note that Apple’s short-term demand and China issues are cyclical against a backdrop of extraordinary ecosystem stickiness and services monetization. High-margin Services and Wearables now meaningfully diversify earnings away from pure iPhone unit growth. Massive installed base data and on-device AI capabilities should support premium pricing and user retention as edge AI proliferates. Apple’s net cash balance sheet and robust buyback program provide ongoing support to EPS growth and downside protection. While regulatory and geopolitical risks warrant a valuation discount versus historic peaks, the current multiple appears undemanding relative to its cash-flow durability and innovation pipeline.

Pitch Summary:
Meta Platforms (META) significantly outperformed investor expectations last quarter, showcasing robust operational and financial health. The company's strength in advertising propelled revenue up 16% year-over-year, while earnings per share surged by a remarkable 37%. Even with ongoing macroeconomic uncertainties and aggressive investments, Meta Platforms maintains a clear competitive edge in digital advertising. Its impressive fundamentals stem from ad market network effects, consistent user and engagement growth, improved monetization, and effective execution. Plus, we believe substantial growth opportunities still lie within Threads, Meta AI, WhatsApp, and Facebook Marketplace. Given its strong core metrics, AI advancements, and promising growth trajectory, Meta remains a compelling investment at an attractive valuation.

BSD Analysis:
From a third-party lens, Meta is executing a powerful earnings recovery driven by AI-optimized ad tools, higher engagement across Reels and core feeds, and disciplined expense management. Operating margins are inflecting higher even as the company continues to fund long-dated Reality Labs initiatives. Monetization of WhatsApp business messaging and newer surfaces like Threads and Marketplace create additional optionality not fully reflected in current estimates. Despite regulatory overhang and periodic ad-cycle volatility, Meta’s user scale and data advantage remain formidable moats. On a cash-flow basis, shares still trade at a discount to many mega-cap peers given comparable or better growth, leaving room for multiple expansion alongside continued buybacks.

Pitch Summary:
Microsoft (MSFT) shares rebounded in calendar Q2 following a strong fiscal Q3 2025 (March quarter), driven by accelerating demand for AI-related Azure services. Robust second-half momentum, coupled with strong bookings as reflected in the Remaining Performance Obligation exceeding $300 billion (+33% year over year), helped ease investor concerns around enterprise IT spending and the long-term return potential of Microsoft’s substantial AI infrastructure investments. We continue to believe Microsoft is well-positioned to gain market share as organizations increasingly embrace a digital-first strategy and adopt generative AI solutions. With deep enterprise penetration and a comprehensive portfolio spanning Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), Microsoft remains the preeminent mission-critical IT provider across industries. The company is executing effectively against a large and growing market opportunity by enabling digital transformation and delivering cutting-edge AI tools like ChatGPT that enhance productivity and lower costs. As a result, we expect Microsoft’s offerings to remain resilient, even in a chall

BSD Analysis:
An outside analyst would emphasize that Microsoft’s AI-driven Azure acceleration and massive $300B+ RPO underpin multi-year visibility into double-digit cloud growth. Copilot and broader generative AI monetization provide incremental high-margin revenue streams on top of entrenched Office and Dynamics franchises. Operating leverage from scale and disciplined expense control continues to expand margins and free cash flow. The balance sheet is exceptionally strong, enabling sustained capital returns and strategic investment without stressing credit metrics. While antitrust scrutiny and cloud competition are ongoing risks, Microsoft’s integrated stack and switching costs justify its premium valuation.

Pitch Summary:
Broadcom (AVGO) shares rebounded from their calendar Q1 decline as investor concerns surrounding Trump-era trade tensions and the risk of suboptimal returns on large-scale AI capex by hyperscalers proved to be overstated. The company delivered a solid fiscal Q2 2025 (April quarter) and guided for accelerating AI semiconductor revenue growth through FY2026. Broadcom remains the leading provider of custom AI ASICs and continues to diversify its customer base beyond its initial anchor client, Alphabet. It now has three hyperscaler customers in volume production and disclosed that four additional customers are currently designing custom ASICs based on Broadcom’s technology. Management is optimistic that these new design wins will transition to volume production in the coming years. Interest in custom ASICs remains high among hyperscalers, as these chips offer compelling cost and performance advantages over general-purpose GPUs from providers like Nvidia, particularly for specialized compute workloads.

BSD Analysis:
From a third-party perspective, Broadcom is a prime beneficiary of the AI infrastructure boom, with custom ASIC leadership giving it a durable edge versus merchant GPU vendors. Its growing roster of hyperscaler customers reduces dependence on any single relationship and broadens the revenue base. Strong AI guidance through FY2026 suggests sustained double-digit growth layered on top of a profitable, diversified semiconductor and software portfolio. Balance sheet strength and high free-cash-flow conversion support ongoing dividends, buybacks, and strategic M&A. While regulatory and trade risks persist, current valuation still appears reasonable relative to Broadcom’s earnings growth and cash generation trajectory.

Pitch Summary:
TotalEnergies now calls itself a “multi-energy” company, spanning oil, natural gas, biofuels and a rapidly expanding renewables arm. It is already one of the world’s top three LNG suppliers and remains a top ten oil producer. This change in mix is visible in its segmental profit figures, with its Integrated gas, renewables and power division having risen from about 14 percent of profits in 2019 to roughly 30 percent today. Among the European majors, TotalEnergies stands out given their long-term track record of project execution. Alone among the European majors, it kept its dividend intact during COVID-19 and over twenty years has grown revenue, book value and profits per share faster than either Shell or BP. Management expects LNG production output to jump 40 percent by 2030, while oil production edges up a modest 1.5% per year. Underpinning those plans is a deep well of resources with more than 12 years of proved and probable oil reserves and over 50 years of gas reserves, figures that trail only Exxon in oil reserves. Even if crude prices soften, TotalEnergies is built to last with cash breakeven prices of around USD25 a barrel. Even at current spot prices, the company is highly cash generative with management committing to returning 40% of operating cash flow to shareholders through a combination of dividends and share buybacks.

BSD Analysis:
TotalEnergies offers a rare combination of low-cost hydrocarbon reserves, world-class LNG infrastructure, and a scaled renewables portfolio—all supporting durable cash flow visibility. Shares trade at a discount to U.S. supermajors despite comparable returns on capital, more diversified revenue, and a superior long-term growth mix. LNG demand growth (AI-driven data center power use, Asian coal-to-gas switching) provides a multi-year tailwind, while its USD25/bbl breakeven cost base ensures resilience in downturns. Aggressive shareholder returns (40% of OCF) and disciplined capex allocation should drive superior FCF yields relative to peers. Key catalysts include LNG project ramp-ups, renewables EBITDA expansion, and potential multiple convergence with U.S. majors.

Pitch Summary:
Apple (AAPL) shares came under pressure in the first half of calendar 2025 amid concerns over softening iPhone demand, rising competition from Huawei in China, challenges related to the rollout of Apple Intelligence, its new on-device AI offering, and potential tariff-related headwinds. Despite these near-term pressures, we continue to view Apple as a competitively advantaged business, anchored by the strength of its ecosystem. With over 2 billion active devices and more than 1 billion paying subscribers, Apple benefits from a loyal customer base and a growing stream of high-margin, recurring services revenue. This stable cash flow enables continued investment in innovation, even during periods of cyclical softness. We believe the current headwinds are transitory, and Apple remains well-positioned to lead in the emerging category of AI-enabled edge devices.

BSD Analysis:
Apple’s ecosystem strength and expanding services revenue mix support resilient cash flow even during product cycle volatility. Shares trade below historical premiums given macro and China-related concerns, offering asymmetric upside as AI-enabled devices refresh demand. The company’s substantial buyback program, strong balance sheet, and pricing power reinforce long-term shareholder value compounding. Growth catalysts include new AI edge features, services penetration, and potential margin expansion as hardware mix shifts.

Pitch Summary:
Oracle (ORCL) shares rebounded from the pressure experienced in calendar Q1 2025, as concerns about tariffs impacting IT budgets proved to be overstated. The company reported a strong fiscal Q4 2025 (May quarter), driven by robust demand for its hyperscale cloud offering, OCI Gen 2, which supports large language models. Oracle issued a confident outlook, projecting accelerating revenue and operating income growth over the intermediate term as it continues its strategic transition to cloud-based solutions. The OCI Gen 2 platform is particularly well-suited for generative AI workloads, where Oracle is gaining both mindshare and market share within the hyperscaler cloud market. Notably, Oracle reported strong bookings, highlighted by a 41% year-over-year increase in remaining performance obligations, reaching nearly $138 billion.

BSD Analysis:
Oracle’s turnaround is driven by accelerating cloud adoption, with OCI gaining traction in AI training and inference workloads—a high-growth segment. The company’s valuation remains discounted relative to other cloud providers despite strengthening fundamentals and improving operating leverage. Its large RPO base provides multi-year visibility, while the transition to SaaS and IaaS expands margins. ORCL’s balance sheet discipline, share repurchases, and steady cash generation support long-term compounding. Key catalysts include hyperscaler partnerships, increased AI cloud demand, and execution on large enterprise migrations.

Pitch Summary:
Broadcom (AVGO) shares rebounded from their calendar Q1 decline as investor concerns surrounding Trump-era trade tensions and the risk of suboptimal returns on large-scale AI capex by hyperscalers proved to be overstated. The company delivered a solid fiscal Q2 2025 (April quarter) and guided for accelerating AI semiconductor revenue growth through FY2026. Broadcom remains the leading provider of custom AI ASICs and continues to diversify its customer base beyond its initial anchor client, Alphabet. It now has three hyperscaler customers in volume production and disclosed that four additional customers are currently designing custom ASICs based on Broadcom’s technology. Management is optimistic that these new design wins will transition to volume production in the coming years, reflecting continued high demand for cost-efficient AI acceleration solutions.

BSD Analysis:
Broadcom’s leadership in custom ASICs gives it a defensible moat as hyperscalers seek efficiency advantages over GPU-based alternatives. With AI revenues projected to accelerate through FY26, AVGO’s growth outlook remains well-supported, and the stock trades at a reasonable EV/EBITDA multiple relative to its AI peers. Expanding customer diversification reduces concentration risk, while recurring infrastructure software revenues stabilize cash flow. Capital returns via dividends and buybacks add further shareholder value. Key catalysts include new ASIC design wins entering production, AI workload proliferation, and improved clarity on trade-related risks.

Pitch Summary:
Microsoft (MSFT) shares rebounded in calendar Q2 following a strong fiscal Q3 2025 (March quarter), driven by accelerating demand for AI-related Azure services. Robust second-half momentum, coupled with strong bookings as reflected in the Remaining Performance Obligation exceeding $300 billion (+33% year over year), helped ease investor concerns around enterprise IT spending and the long-term return potential of Microsoft’s substantial AI infrastructure investments. We continue to believe Microsoft is well-positioned to gain market share as organizations increasingly embrace a digital-first strategy and adopt generative AI solutions. With deep enterprise penetration and a comprehensive portfolio spanning Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), Microsoft remains the preeminent mission-critical IT provider across industries. The company is executing effectively against a large and growing market opportunity by enabling digital transformation and delivering cutting-edge AI tools like ChatGPT that enhance productivity and lower costs. As a result, we expect Microsoft’s offerings to remain resilient, even in a challenging macroeconomic environment, supporting low double-digit intrinsic value growth over our investment horizon.

BSD Analysis:
Microsoft’s thesis centers on accelerating AI-driven cloud adoption and robust enterprise demand, which supports durable double-digit earnings growth. MSFT trades at a premium P/E multiple justified by strong Azure momentum and a multiyear runway for AI infrastructure monetization. Remaining performance obligations topping $300B underscore forward revenue visibility, while continued share gains in cloud and productivity software reinforce competitive moats. Microsoft’s balance sheet strength, ongoing buybacks, and expanding high-margin cloud revenue support sustained value creation. Key catalysts include AI-related workload expansion, enterprise software renewals, and margin leverage from scale efficiencies.

Pitch Summary:
The world is undergoing a series of major technological transformations. From next-generation mobility and automation to cloud and AI-driven computing, the number of use cases underpinned by semiconductors continues to grow. As these technologies become more widespread and sophisticated, so too does our collective demand for these chips. Semiconductors are the enablers of modern technology. They are embedded in virtually every device and system that permeates the modern economy, powering everything from smartphones and laptops to electric vehicles and data centres. Global chip demand is expected to double over the decade to 2030, with industry forecasts predicting worldwide semiconductor spend to reach US$1 trillion by 2030. But not all semiconductor companies are made alike. This is a vast ecosystem spanning intellectual property, design software, specialty materials, fabrication equipment and manufacturing. Within that ecosystem, Taiwan Semiconductor Manufacturing Company (TSMC) plays a unique and indispensable role as the world’s leading dedicated foundry, manufacturing chips on behalf of other companies. What makes its business so defensible is the extreme complexity and capital intensity of advanced chip manufacturing. Building just a single, advanced fab with a moderate output capacity can cost US$20 billion today. That cost will continue to rise as the industry maintains its relentless pursuit of computing performance and efficiency. TSMC’s ability to make these investments and keep its expensive fabs utilised by manufacturing thousands of different products while pushing the frontiers of semiconductor technology is unmatched. This has created a powerful industry dynamic. While many companies are designing chips, very few can manufacture them. The economics almost always favour outsourcing, and TSMC has emerged as the foundry partner of choice. The company commands a 67% share of the foundry market – more than five times its nearest competitor. In advanced manufacturing, used in applications such as data centres and smartphones, TSMC dominates with 90% market share. TSMC’s dominance is not just a function of cost and scale. It is also about customer trust, operational excellence, and long-term commitment to R&D, which has made it a critical enabler of global innovation. To support its customers’ supply chain resilience, TSMC has increasingly diversified its manufacturing footprint outside Taiwan. The most significant of these efforts is in the United States, where it is building advanced fabs in Arizona and recently committed an additional US$100 billion investment over the next several years. These moves reduce geographic concentration risk and signal TSMC’s role as a critical strategic supplier. With a strong long-term demand outlook, widening technological lead, expanding scale, and a near-monopoly on the most advanced chipmaking capabilities, TSMC is uniquely positioned in the semiconductor landscape. An investment in TSMC offers a highly attractive exposure to the future of technology.

BSD Analysis:
TSMC is the irreplaceable foundry for the world’s most advanced chips, a position that gives it both geopolitical stress and unmatched pricing power. AI accelerators, high-end CPUs, and smartphone SoCs all increasingly depend on TSMC’s leading-edge nodes. The capex bill is massive, but so are the barriers to entry—no one else is realistically catching up in the next several years. Geopolitical risk around Taiwan is the tax you pay to own the single most strategic manufacturing asset in tech. The company is diversifying fabs into Japan and the U.S., which helps but doesn’t erase that overhang. Margins remain elite because leading-edge wafers command premium pricing and capacity is structurally constrained. For investors willing to live with the macro noise, this is as “core to global silicon” as it gets.

Pitch Summary:
Texas Instruments is a fairly new holding in the fund, added in January of 2024. We view TI as a great example of the type of business we can own for many years despite participating in what is probably one of the most cyclical and volatile industries in the world. We believe TI's market power comes from its focus combined with operational excellence. All the above decisions TI made, but its peers diverged away from, tie into TI's decision to focus on catalog analog products. Catalog products are high-volume, off the shelf and generally applicable. Manufacturing those products internally at scale is very sensible due to high investment requirements and a large fixed-cost base. TI is expanding its domestic capacity ahead of the upcoming semiconductor upcycle, even if that means underutilisation in the short term. Unlike its peers, TI is deferring short-term profits for long-term benefit. Insourcing manufacturing also allows TI to reinvest all of its generated cash flows at attractive marginal returns, while peers outsourcing manufacturing to foundries are distributing generated cash to shareholders at lower returns. We think that TI will be an exceptional business that can generate earnings growth of more than 12% per year while returning most of its free cash flow to shareholders. Looking through cycles and market volatility, we can expect low to mid-teens real IRR after assuming a fair amount of multiple compression.

BSD Analysis:
Texas Instruments (TXN) is an undisputed, high-quality analog and embedded processing giant whose premium valuation is justified by its long-term strategic investments and superior profitability. The core thesis is driven by its aggressive, multi-year capacity expansion to meet the future demands of industrial and automotive electronics. The company is nearly 70% through a six-year elevated CapEx cycle to own and operate 300mm wafer fabrication facilities—a deeper vertical integration push than competitors—which will deliver dependable, low-cost capacity at scale. TXN is surgically focused on the industrial and automotive end markets, which provide non-cyclical, high-margin revenue and benefit from long-term electrification and automation trends. TXN is a high-quality compounder whose disciplined capital allocation and focus on essential, high-margin analog chips secure its long-term growth.

Pitch Summary:
ISS A/S is a provider of workplace experience and facility services. The company’s stock rebounded during the quarter as the market gained confidence that ISS can grow its operating margin over time. Several years ago, ISS was a low-quality business with an unstable shareholder base, poor operations, and a weak balance sheet. The company’s new management team improved operations and executed well. We believe ISS is in the early stages of benefiting from a return to organic revenue growth. The company has attractive opportunities to improve its operating margin, and it can use that increased cash flow to reduce its leverage over time. We believe ISS is well-positioned for long-term value creation.

BSD Analysis:
ISS A/S is a deep-value, high-quality global facility management giant whose stock is an asymmetric recovery bet on its successful "OneISS" transformation strategy. The core thesis is driven by the company's disciplined focus on key accounts and operational efficiency, which is dramatically improving margins and free cash flow. The company is converting its massive scale and global network into high-margin, integrated facility management services, which are non-cyclical and high-retention. The stock is a conviction bet on the successful completion of the turnaround, which will unlock significant value by increasing the share of higher-margin, IFM (Integrated Facility Management) contracts.

Pitch Summary:
Microsoft Corp. is the world’s largest software company with a broad range of offerings including operating systems, infrastructure-as-a-service cloud computing, business productivity applications, video games, and other consumer-oriented software and services. The company has demonstrated an unrivaled ability to expand into adjacent markets over the years. Microsoft is currently viewed as a big artificial intelligence winner due to its position as the largest datacenter and cloud operator, coupled with a close partnership with OpenAI. In addition, the company offers a suite of applications that should see meaningful productivity improvements from AI, such as Copilot. The company’s chief financial officer, Amy Hood, recently alluded to strong demand for Copilot during a prior earnings call, and management pointed to a robust pipeline of deals. Like many AI-related companies, Microsoft is at the early stages of capitalizing on the opportunity. We believe the company has attractive long-term prospects even without AI, as it has demonstrated durability and growth in a variety of business environments. Microsoft’s enterprise customer base should be sticky, and its breadth of offerings should help maintain high incremental margins. We believe the market will continue to reward Microsoft with a premium valuation based on these durable growth characteristics.

BSD Analysis:
Microsoft has become the default operating system for modern enterprise IT, with Azure, Office, and security products deeply embedded in customer workflows. The AI push through Copilot is not a side project—it’s a monetization layer that turns generative AI into recurring, seat-based revenue. Azure benefits from both cloud migration and AI workloads, while integration across Teams, GitHub, and Dynamics increases switching costs. Security has quietly become a core growth engine as customers consolidate vendors and raise cyber budgets. Heavy AI-related capex is a real expense, but Microsoft’s cash flow easily supports it. Regulatory scrutiny is constant, yet the company has a long track record of adapting without damaging economics. This is a mega-cap compounder that keeps finding new ways to charge rent on enterprise productivity.

Pitch Summary:
IQVIA Holdings Inc. is a healthcare data and services company commonly known as a contract research organization. IQVIA was formed in 2016 through the merger of Quintiles and IMS Health, which already had leading positions in clinical services and healthcare data, respectively. The company generates recurring revenue through its large and comprehensive data set. It uses that dataset to provide valuable insights to customers, and it earns high incremental returns on these services. IQVIA’s largest revenue stream comes from its clinical services, which are supported by a large and growing backlog. We believe IQVIA has attractive long-term opportunities as pharma continues to increase its R&D spending, outsourcing and use of analytics.

BSD Analysis:
IQVIA is an unassailable, high-growth life sciences technology oligopolist whose stock is a conviction bet on the non-cyclical, data-driven modernization of pharmaceutical R&D. The core moat is its massive, proprietary **HIPAA-**compliant human data set (>1.2 billion non-identified patient records) combined with its leading Contract Research Organization (CRO) services. This unique integration of Data Science and Clinical Research is indispensable for every major pharmaceutical company, ensuring high switching costs and accelerating revenue growth. IQVIA is a high-quality compounder leveraging its data supremacy to dominate the entire biopharma lifecycle.

Pitch Summary:
During the quarter, UnitedHealth Group Inc. (UNH) experienced a significant decline after the company had to withdraw its revised 2025 guidance. We believe much of the company’s operational challenges are within their own control. In addition, the company is navigating a period of heightened public scrutiny and regulatory oversight following the tragic event at the company’s annual investor conference. Shortly after, CEO Andrew Witty resigned, and former CEO Stephen Hemsley returned as CEO. We believe his return will restore operational rigor to the company. At its core, health insurance is a short-tail business that can be repriced annually. Therefore, we believe despite the recent challenges, the value of the business remains stable, and long-term prospects remain attractive. While there are still important risks to consider, including exposure to government policy, we believe the company’s strong history of executing well and its short-tail business should allow it to navigate through this difficult period.

BSD Analysis:
UnitedHealth Group is a high-quality healthcare titan whose unique, integrated model provides an unbreakable moat and delivers predictable, above-market growth. The core thesis is centered on the Optum segment—the company's tech, pharmacy, and care delivery arm—which is the true compounding engine. Optum’s ability to use proprietary data and technology to optimize costs and improve outcomes is the structural driver of margin expansion and superior efficiency. The stock offers a defensive, double-digit growth profile, combining the stability of a payer with the high-growth optionality of a tech-enabled health services provider.