Investment Pitches

Pitch Summary:
Versant is currently experiencing a decline in stock price, down roughly 30%, primarily due to index selling as it is not part of the S&P 500. Despite being described as a 'melting ice-cube', Versant has a market cap of $4.7 billion, net debt of approximately $2 billion, and generates $1.0-1.5 billion in free cash flow annually. The investment thesis is that investors could potentially recoup their investment in 5-6 years if free cash flow stabilizes.

BSD Analysis:
Versant's portfolio includes well-known cable outlets, which, despite the 'melting ice-cube' narrative, continue to generate significant free cash flow. The company's exclusion from major indices like the S&P 500 has led to index-driven selling pressure, presenting a potential buying opportunity for long-term investors. The key risk remains the sustainability of its cash flow amidst a shifting media landscape. However, if Versant can maintain or stabilize its cash flow, the current valuation could prove attractive. Investors should monitor any strategic moves by the company to enhance shareholder value.

Pitch Summary:
Chubb is one of our core property & casualty insurance holdings. It is well-diversified across products and geographies. The company has consistently generated returns on equity comfortably ahead of the industry owing to a combination of running advantaged lines of business with a disciplined underwriting and operating culture. Pricing trends in the insurance markets have generally been strong in recent years, and consequently Chubb has been earning returns on tangible equity in the low 20s. While competitive forces may in time push that back toward a “normalized” level a few points lower, Chubb we believe would still be valued at 10–11x earnings looking out a few years.

BSD Analysis:
Chubb is insurance run with discipline in an industry that too often chases volume over math. Underwriting comes first, and growth only happens when pricing makes sense. Rising rates quietly boost investment income without forcing riskier underwriting. Investors fixate on catastrophe headlines and miss how diversified Chubb’s global book really is. Specialty lines and risk selection create durability across cycles. Capital strength allows Chubb to walk away from bad business when competitors can’t. Returns come from consistency, not hero years. This is insurance where the model actually works.

Pitch Summary:
Wells Fargo is the largest “traditional” bank in our portfolio. The company passed a milestone this year with the removal of the asset cap imposed by the Federal Reserve that has been a governor on its growth. Just as importantly, Wells Fargo has made progress over several years in right-sizing its cost structure. It has also seen positive momentum in the business lines it has recently been investing into (investment banking, credit cards and wealth management). The bank has a surplus of capital which it is working down through share repurchases, which will enhance earnings per share growth over the medium term. Despite the stock’s +36% return in 2025, Wells Fargo’s valuation at 2.1x tangible book value remains reasonable for a bank that ought to earn a high-teens return on tangible equity over time.

BSD Analysis:
Wells Fargo is still paying for sins it already confessed to — and that’s exactly why it’s interesting. The asset cap remains the single biggest overhang, artificially suppressing growth and efficiency. Underneath the penalties sits a massive, low-cost deposit franchise most banks would kill for. Expense discipline and risk controls have improved materially, even if headlines lag reality. Net interest income benefits from scale more than from rate heroics. Capital levels are strong, enabling buybacks once regulators loosen the leash. This is not a best-in-class bank today. It’s a repair story with asymmetric upside if the cap is lifted. Wells Fargo works when execution finally catches up to cleanup.

Pitch Summary:
Capital One continues to be the largest position in the fund. Its transformational acquisition of Discover Financial closed in May 2025. In addition to targeting annual cost synergies of $1.5 billion, management is anticipating so-called “network” synergies of $1.2 billion from transitioning certain Capital One debit and credit card volumes into Discover’s networks. Importantly, the latter synergy target is based on transitioning only a minority of Capital One’s credit card volume. Longer-term, we think the company has an opportunity to continue integrating its card-issuing activities with its card network. Looking out a few years we believe Capital One remains attractively priced at less than 10x earnings despite the potential, in our view, to earn +/−20% returns on tangible capital on average and over time.

BSD Analysis:
Capital One enters 2026 as a technologically superior leader in the consumer finance space, leveraging its early and total adoption of public cloud infrastructure to drive industry-leading efficiency. The investment case is currently defined by the massive potential of its pending acquisition of Discover Financial, which is expected to create a formidable competitor to Visa and Mastercard. For 2026, management is focusing on maintaining its robust net interest margins while navigating a cycle of credit normalization in its credit card and auto loan portfolios. The company’s proprietary data analytics and AI-driven underwriting provide a significant competitive advantage in identifying resilient consumer segments during periods of economic volatility. While higher capital requirements and regulatory scrutiny of the Discover merger remain risks, Capital One’s strong capital position and dividend yield provide a solid floor for valuation. The company’s shift toward more premium card offerings is successfully attracting a higher-credit-quality, stickier customer base. Ultimately, Capital One offers a unique blend of a traditional bank’s balance sheet with a fintech-like innovation engine.

Pitch Summary:
Karooooo (Cartrack) is a high-quality, recurring-revenue telematics platform with strong structural growth drivers and company-specific execution catalysts. Industry demand is supported by fleet digitalisation to manage rising fuel, labour and maintenance costs, alongside increasing regulatory adoption across regions. The company’s vertically integrated model underpins high customer stickiness of roughly 95% and attractive unit economics. Upside is driven by ARPU expansion through cross-sell of premium modules and contractual price escalators. Improved sales and installation capacity should support stronger subscriber growth over time.

BSD Analysis:
Karooooo is seeing robust performance in 2026, driven by an estimated 15% subscriber growth in its core Cartrack segment as demand for smart mobility solutions remains high globally. The company’s ability to maintain high customer retention through continuous innovation in its software-as-a-service platform is a key competitive advantage in the telematics space. For 2026, the investment thesis is centered on the firm’s expansion into Southeast Asia and Europe, leveraging its low-cost, vertically integrated business model to win market share from traditional providers. While pricing degradation in hardware remains a risk, Karooooo’s focus on high-value data analytics and fleet management tools provides a stable and recurring revenue stream. Financial results show significant revenue growth, reflecting the company’s success in penetrating new industries like logistics and asset monitoring. Investors are particularly attracted to the firm’s high operating margins and its ability to fund expansion through internal cash flow.

Pitch Summary:
Founded in 2000, MakeMyTrip is the dominant Indian online travel agency across Air, Hotels and Bus, with app download share more than twice its nearest competitor. India’s online travel market is expected to grow at a 22% CAGR from $12bn in 2022 to $60bn by 2030. MakeMyTrip enjoys high brand recall and organic traffic, with over 80% of visits unpaid, reducing reliance on advertising spend. This supports strong operating leverage as volumes scale. The company is positioned to benefit from rising disposable incomes and increased travel penetration in India.

BSD Analysis:
MakeMyTrip is navigating a period of high expectations in 2026, with the investment narrative focused on its ability to maintain dominance in the rapidly growing Indian travel market. While the stock has faced some recent pressure due to missed EPS estimates in previous quarters, the long-term thesis remains intact as middle-class Indian consumers increase their travel spending. For 2026, the company is prioritizing margin expansion through AI-driven personalization and a higher mix of high-margin hotel and holiday bookings compared to lower-margin air ticketing. The growth of India’s domestic infrastructure and the surge in international travel demand from the subcontinent act as massive tailwinds for the firm’s multi-brand ecosystem. Management is also exploring fintech integrations to provide travel financing, potentially unlocking new revenue streams and increasing booking conversion rates. For investors, MakeMyTrip offers a pure-play opportunity to capture the structural growth of one of the world's most dynamic emerging travel economies.

Pitch Summary:
After a challenging start to the year, Raia Drogasil returned to historical performance levels, restoring investor confidence and driving a valuation re-rating. Continued market share gains in Brazil’s fragmented pharmacy market are supported by strong site selection. GLP-1 drugs are driving higher-ticket sales, while private label, beauty, and digital initiatives provide incremental tailwinds. Operational execution improved meaningfully over the course of the year. The company’s scale advantages continue to strengthen its competitive position.

BSD Analysis:
Raia Drogasil continues to dominate the Brazilian pharmacy landscape, with its 2026 outlook supported by projected annual earnings and revenue growth of 20% and 13%, respectively. The company’s digital transformation is a primary driver, as its omnichannel platform successfully captures a larger share of the wellness and beauty categories alongside traditional prescriptions. For 2026, the investment case is bolstered by an expected return on equity of 24%, reflecting the high efficiency of its store-opening model and its superior supply chain logistics. Management is focused on expanding its footprint into underserved regions of Brazil while simultaneously deepening its service offerings through in-store clinics and telemedicine integrations. While the competitive environment remains intense, Raia Drogasil’s massive scale and brand loyalty provide a significant moat that smaller retailers struggle to breach. Investors are focused on the firm's ability to maintain high margins as it transitions into a more comprehensive "health hub" for the Brazilian consumer.

Pitch Summary:
Elite Material benefitted from a growing total addressable market as key GPU customers decided to utilise additional printed circuit boards instead of cable interconnects within the rack. After a challenging start to the year, demand improved as AI-related infrastructure build outs accelerated. The shift toward higher PCB content supports both volume growth and pricing power. Management execution restored investor confidence, contributing to improved earnings visibility. The company remains well positioned within the AI hardware supply chain.

BSD Analysis:
Elite Material Co (EMC) is a critical beneficiary of the global AI server boom, providing the high-end copper-clad laminates essential for next-generation data center infrastructure. For 2026, the company’s capital expenditure budget is heavily weighted toward expanding capacity for high-frequency and high-speed materials, reflecting insatiable demand from hyperscale cloud providers. The stock has maintained strong technical momentum as EMC secures more design wins for the newest AI GPU architectures that require superior thermal and signal integrity performance. Management’s presence at several major 2026 investment forums highlights a focus on communicating the firm's expanding role in the global semiconductor and server supply chain. While raw material costs for copper and resin are a potential variable, EMC’s dominant position in the "super-high-speed" laminate niche allows for effective price pass-throughs. As AI infrastructure spending is projected to grow through 2029, EMC offers a direct and high-margin way to play the physical hardware requirements of the AI era.

Pitch Summary:
After a challenging early-year period with tariff uncertainty impacting end demand, EPAM reported better than expected results and raised its initial guidance for 2025. Additionally, EPAM announced an extension to its share buyback program of approximately $1 billion, sending a positive signal on the strength of its business in the long term. The company continues to benefit from its exposure to complex, mission-critical software development projects for global clients. Management commentary suggested stabilization in client spending decisions as uncertainty begins to ease. The firm’s strong balance sheet and capital return discipline reinforce confidence in long-term compounding.

BSD Analysis:
EPAM Systems is regaining significant momentum in 2026, with its investment thesis now revolving around its leadership in generative AI and digital engineering services. The stock has seen a major re-rating following a significant price target increase from analysts, who cite a 2026 Investor Day focused on AI strategy as a key upcoming catalyst. For 2026, the company is leveraging its deep pool of technical talent to help global enterprises move AI pilots into full-scale production workloads, a transition that is driving higher-margin consulting revenue. A robust $1 billion stock repurchase program underscores management’s confidence in the firm’s organic constant currency revenue growth and underlying business strength. While the digital services market remains competitive, EPAM’s focus on complex, high-end engineering allows it to maintain a distinct competitive advantage over commodity outsourcing firms. Investors are particularly encouraged by the company's ability to drive sequential margin improvements as it optimizes its global delivery centers.

Pitch Summary:
Intuitive Surgical was among the top contributors during the year as procedure growth and adoption of robotic surgery continued to expand globally. The company benefits from a large installed base, recurring instrument revenue, and expanding indications for robotic-assisted surgery.

BSD Analysis:
Intuitive Surgical owns robotic surgery because it solved workflow, training, and trust — not just hardware. Hospitals don’t switch platforms lightly once surgeons are trained and procedures standardized. Procedure volume growth, not system sales, drives the real economics through recurring instruments and service revenue. Competition is coming, but inertia inside operating rooms is powerful. Innovation here is evolutionary, which favors the incumbent. Margins expand naturally as utilization rises across the installed base. Valuation always looks expensive until you understand the durability. This is not medtech hype. It’s surgical infrastructure with compounding economics. Intuitive wins by being embedded, not flashy.

Pitch Summary:
Taiwan Semiconductor was a top-five contributor to returns in 2025 as demand for advanced-node chips continued to accelerate. The company’s scale, technology leadership, and customer trust position it at the center of global semiconductor innovation. AI, high-performance computing, and advanced packaging continue to drive strong long-term demand.

BSD Analysis:
Taiwan Semiconductor Manufacturing Company is the single most important choke point in the global technology stack, and the market still treats it like a cyclical supplier. Every serious AI, high-performance computing, and advanced smartphone roadmap runs through TSMC’s fabs whether customers admit it or not. Yield, scale, and execution discipline are the moat — not patents, not branding, and not subsidies. Capital intensity scares investors, but it also makes the business nearly impossible to replicate at the leading edge. Geopolitical risk dominates headlines, yet that same risk guarantees strategic dependence from customers and governments alike. Margins swing with cycles, but technological leadership does not. Competitors talk about catching up while designing around TSMC’s process nodes. This is monopoly-like manufacturing hiding behind a foundry label. The digital economy quite literally bottlenecks here.

Pitch Summary:
Lam Research was among the top-five contributors to returns for the full year of 2025. The company benefited from improving semiconductor capital spending expectations and its strong positioning across advanced logic and memory process steps. As AI-related demand drives more complex chip architectures, Lam’s equipment intensity per wafer continues to increase.

BSD Analysis:
Lam Research sells the tools that make advanced chips possible as physics keeps getting harder. Etch and deposition steps increase with complexity, and Lam gets paid per layer. AI, advanced packaging, and leading-edge nodes all raise process intensity. Cyclicality is unavoidable, but the secular demand curve keeps rising. Installed-base services smooth downturns and protect margins. Customer concentration exists, but switching costs are brutal once fabs are configured. Capital intensity is high, but returns justify it. This is not gadget exposure. It’s semiconductor infrastructure with torque when capex returns.

Pitch Summary:
In a surprise move, Fiserv’s new management reset their operating model and communicated systematic over-earning under prior management, who prioritized near-term revenue streams and cost-cutting initiatives rather than long-term, durable growth. The previous team had been sacrificing duration and longevity for near-term efficiency, which is the opposite of what we look for in investments. While we appreciate the new CEO “coming clean” with investors, we exited the position as it became clear that we had evaluated the company incorrectly and that it was neither resilient nor optional.

BSD Analysis:
Fiserv is fintech infrastructure that works precisely because it doesn’t break. Its platforms sit underneath banks, merchants, and payment flows that cannot afford downtime. Clover gives Fiserv real SMB leverage, not just legacy processing fees. Switching costs are enormous once institutions are integrated. Growth is steady, margins are improving, and cash flow is real. Competition is intense, but scale and breadth still matter. Capital allocation favors returns over hype. This is not a disruptor story. It’s financial plumbing with compounding durability.

Pitch Summary:
Danaher rallied to close the year as business fundamentals regained their long-term trajectory after a prolonged downturn in the industry. After adding to IT names earlier in the year, we added to Danaher as valuations became more attractive and end markets began to stabilize. We believe Danaher’s recurring revenue base, operational discipline, and innovation-driven culture position it well for renewed growth.

BSD Analysis:
Danaher is what disciplined capital allocation looks like at industrial scale. Its operating system turns ordinary businesses into margin machines through relentless process improvement. Life sciences, diagnostics, and environmental testing provide durable demand drivers. Portfolio pruning and spin-offs are features, not distractions. Cash flow is massive and consistently redeployed at high returns. Growth isn’t linear, but value creation is. Management doesn’t chase trends — it engineers outcomes. This is not cyclical optimism. It’s one of the cleanest compounding engines ever built.

Pitch Summary:
Alphabet, which was among the portfolio’s largest positions for much of 2025, continued its strong run in the fourth quarter with accelerating fundamentals augmented by further re-rating in the stock. It has a portfolio of businesses that are performing well: Internet search and its Gemini AI model, YouTube, Waymo, Google Cloud and others. Alphabet obviously benefits from AI enthusiasm, but its earnings also rose about 30% in 2025 and have compounded in the high teens since 2021. This is an exceptional collection of assets.

BSD Analysis:
Alphabet remains one of the most dominant cash-flow engines ever built, even as investors obsess over disruption stories. Search is still default behavior, and AI enhances monetization rather than replacing it. YouTube continues evolving into a global media platform with ads, subscriptions, and creator economics. Google Cloud profitability resets the earnings profile from optionality to substance. Regulatory pressure is constant, but user behavior hasn’t meaningfully changed. Capital discipline has improved through buybacks and cost control. The balance sheet provides unmatched AI investment flexibility. This is not a melting ice cube. It’s a tollbooth adapting in real time.

Pitch Summary:
One representative purchase in the quarter was The Cooper Companies (COO). Cooper Companies is a medical device company, deriving ~65% of revenues from contact lenses and the balance from women’s health products. A favorable aspect of Cooper’s lenses business is that the average contact wearer is brand loyal for seven years, which gives the company a predictable cadence of revenues. Sales have slowed in recent quarters due to capacity constraints of Cooper’s MyDay disposable lenses. The expansion in capacity (now complete) also hampered free cashflow. Our investment thesis is primarily based on the anticipated reacceleration of growth in the lens business, which should provide a catalyst for an upward re-rating in valuation. An additional positive (although not necessary) would be a potential split of the company’s vision and women’s health businesses.

BSD Analysis:
Cooper’s moat is niche dominance in medical devices where switching costs are clinical, not contractual. CooperVision benefits from practitioner trust and patient habituation—once a lens works, nobody experiments casually. Recurring consumables drive predictable revenue, even if growth optics look unexciting. Pricing power exists, but it’s incremental and disciplined rather than aggressive. The women’s health business adds diversification, though returns there are lumpier and more execution-dependent. Innovation cadence matters because eye care quietly commoditizes if you stand still. Currency and emerging-market exposure add noise without changing the thesis. The bull case is steady global vision correction demand with operating leverage. Cooper compounds by being boring, trusted, and very hard to replace.

Pitch Summary:
The investment case for Smurfit Westrock is largely a self-help story, following the merger of the two companies (Smurfit Kappa and WestRock). We believe the best practices in place at Smurfit can be successfully deployed within WestRock, providing an uplift to aggregate margins and profits. We also anticipate a healthier demand environment for the corrugated markets in which the company operates. The combination of improving industry dynamics, high asset quality, and strong internal performance culture results in what we view to be an attractive return opportunity for Smurfit Westrock.

BSD Analysis:
Smurfit Westrock is a global packaging heavyweight benefiting from scale, integration, and the slow death of plastic. Corrugated packaging is boring, capital-intensive, and incredibly hard to disrupt. Pricing power exists because logistics costs make markets local and competition rational. Synergies from the merger matter more than top-line growth optics. Demand tracks consumption, not consumer confidence headlines. Input cost swings create noise, but integration dampens volatility. This is not an ESG vanity play. It’s industrial packaging infrastructure with cash-flow gravity. Smurfit Westrock compounds when management stays disciplined and boring.

Pitch Summary:
We recently initiated a position in Casella Waste Systems, Inc., the fifth largest waste management and recycling company in North America. The company has strong pricing power with a focus on less competitive rural markets and high-margin landfill revenue. Casella has driven organic growth while completing more than 80 bolt-on acquisitions over the last seven years. After underperforming in 2025 due to integration issues, we believe margins are set to recover in 2026, supporting renewed earnings growth and valuation expansion.

BSD Analysis:
Casella’s moat is local density and regulatory barriers in waste collection and disposal markets. Landfills and transfer stations are nearly impossible to permit, locking in incumbents. Pricing power is steady because customers prioritize reliability over shopping rates. Volume growth is modest, but margin expansion comes from route density and scale. M&A drives consolidation, raising leverage and execution risk. Capital intensity is real, yet returns are durable when assets are well-run. The bull case is continued regional consolidation with disciplined pricing. The bear case is cost inflation or overpaying for acquisitions. Casella compounds by owning infrastructure nobody else wants.

Pitch Summary:
Liberty Broadband Corp. (GLIBA) contributed to performance. The company provides leveraged exposure to U.S. broadband through its stake in Charter, and we believe the structure can trade at a discount to the value of its underlying holdings. Over time, corporate actions and improving broadband fundamentals can drive a narrowing of this discount, creating attractive upside for shareholders.

BSD Analysis:
Liberty Broadband is essentially a leveraged bet on Charter’s broadband economics wrapped in a holding-company shell. The moat is cable infrastructure’s high fixed-cost barrier to entry. Capital allocation and leverage amplify both upside and downside. Discounts to NAV persist because control and liquidity are optional, not guaranteed. Broadband demand is stable, but pricing power faces regulatory and fiber competition pressure. Buybacks can be value-creative if timed well. The bull case is steady cash flow with multiple expansion at Charter. The bear case is structural broadband competition compressing returns. Liberty Broadband rewards conviction, not clarity.