Investment Pitches

Pitch Summary:
Primo Brands (PRMB) contributed to performance during the period. The company benefits from resilient consumer demand for convenient drinking water solutions and an expanding installed base of dispensers that supports recurring refill volume. Management has been focused on operational efficiency and disciplined capital allocation, which we believe can drive margin expansion and steady earnings growth over time.

BSD Analysis:
Primo’s moat is route density and brand presence in bottled water and beverage distribution. The business is operationally heavy, but recurring household demand stabilizes volumes. Pricing power exists, though it’s constrained by private-label and commodity input costs. Margins depend on logistics efficiency more than marketing brilliance. M&A adds scale but increases leverage and integration risk. Environmental scrutiny is a constant reputational overhang. The bull case is steady cash flow with incremental margin improvement. The bear case is cost inflation squeezing already thin margins. Primo compounds slowly when execution stays boring.

Pitch Summary:
Liberty Live Group (LLYVA) contributed to performance as Live Nation’s fundamentals continued to strengthen. Demand for live entertainment remains robust, supporting ticketing and sponsorship growth, while supply constraints for premium venues underpin pricing power. We believe Liberty Live offers attractive look-through exposure to a high-quality live events platform at a discount to the underlying asset value.

BSD Analysis:
Liberty Live is a tracking-stock structure whose real asset is exposure to Live Nation economics through a control lens. The moat isn’t operations—it’s ownership structure and capital allocation optionality. Live events benefit from scarcity and pricing power, but cyclicality is real if discretionary spend softens. Complexity and lack of pure-play clarity keep valuation discounts alive. Value realization depends on management actions, not operating performance alone. Buybacks and restructurings matter more than EBITDA growth. The bull case is continued live entertainment demand plus financial engineering. The bear case is sentiment turning against complex holding structures. Liberty Live rewards patience and tolerance for opacity.

Pitch Summary:
Varonis Systems, Inc. contributed to performance. Varonis provides data security software that helps enterprises discover, classify, and protect sensitive information. The company is in the midst of transitioning its business model toward SaaS subscriptions, which is driving improved predictability and expanding the long-term opportunity set. We believe accelerating cloud adoption and rising regulatory scrutiny around data governance should support durable demand, while the subscription transition positions the company for higher recurring revenue and margin expansion over time.

BSD Analysis:
Varonis’ moat is deep entrenchment in unstructured data security, where once it’s deployed, ripping it out is operationally risky. Data sprawl and compliance anxiety work in its favor, not against it. The shift toward subscription and cloud improves revenue quality but exposes usage sensitivity when IT budgets tighten. Pricing power exists, but customers scrutinize expansion spend more closely in downturns. Competition is credible, yet displacement is rare once policies and alerts are wired into workflows. Execution risk sits in sales efficiency and cloud transition timing. The bull case is rising data security urgency driving steady expansion. The bear case is prolonged IT optimization delaying upsell. Varonis compounds if fear keeps outpacing budget fatigue.

Pitch Summary:
indie Semiconductor, Inc. outperformed during the period. indie is a provider of semiconductors for the automotive market, with a focus on advanced driver assistance systems (ADAS), in-cabin connectivity, and user experience. We believe indie has meaningful content growth opportunities as vehicles become increasingly electronic and software-defined, and management continues to execute well against a large design-win pipeline that should translate into strong revenue growth as programs ramp. The stock’s performance was supported by improving investor sentiment toward auto semiconductors as the cycle stabilized.

BSD Analysis:
indie Semiconductor is a focused bet on automotive silicon where content per vehicle keeps rising. Its chips power ADAS, sensing, and vehicle connectivity — areas automakers can’t cut without sacrificing safety. Design wins matter more than quarterly revenue, and indie has been stacking them. Profitability lags because automotive ramps are slow and capital-intensive. Customer concentration is a risk, but qualification barriers are real. As volumes scale, operating leverage improves sharply. This is not consumer semiconductor hype. It’s long-cycle automotive infrastructure silicon. indie works if patience outlasts volatility.

Pitch Summary:
We established a position in JFrog Ltd., a leading provider of software supply chain management tools. JFrog’s platform serves as the industry standard for managing and securing software binaries, with over 7,000 customers including 83% of the Fortune 100. The mission-critical nature of the platform has driven strong retention and expansion, while free cash flow margins have expanded to 28%. We believe the acceleration of Generative AI will increase demand for managing new binary types, supporting durable growth and shareholder value creation.

BSD Analysis:
JFrog sits inside the software development pipeline where code moves from build to deployment. Its platform manages binaries and artifacts that modern DevOps workflows can’t function without. Once teams adopt JFrog, ripping it out breaks pipelines, not just budgets. Growth slowed as enterprises scrutinized spend, forcing more focus on efficiency. Competition exists, but JFrog’s depth and neutrality still matter. Cloud transitions add near-term noise but improve durability long term. This is not flashy developer hype. It’s DevOps infrastructure with high switching costs. When software spending normalizes, JFrog’s leverage shows up fast.

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 is a regional waste operator benefiting from the same brutal economics that protect the industry’s giants. Landfills are nearly impossible to permit, making existing assets more valuable over time. Route density and vertical integration drive margin expansion as scale improves. Regional focus allows Casella to outmaneuver national players in local markets. Pricing power is real because trash doesn’t negotiate. Capital intensity is high, but returns are protected by regulation and scarcity. This is not a growth-at-any-cost waste story. It’s disciplined regional compounding. Casella wins by owning dirt no one wants but everyone needs.

Pitch Summary:
We initiated a position in Waystar Holding Corp., which provides a full spectrum of revenue cycle management software to health care providers. The company services 30,000 clients and processes 6 billion transactions per year, representing about half of all U.S. patients. Waystar’s software automates intake, clinical documentation, and post-care billing, increasingly using AI to reduce denied claims and manual processes. The acquisition of Iodine Software completed an end-to-end claims automation solution. We believe roughly 80% of the market remains manually managed, leaving a long runway for share gains, margin expansion, and free cash flow growth.

BSD Analysis:
Waystar operates in the most broken part of U.S. healthcare: getting paid. Its revenue cycle management software helps providers navigate billing codes, denials, and insurer bureaucracy. That pain point isn’t going away — it’s getting worse. Once installed, Waystar becomes mission-critical because cash flow literally depends on it. Growth is driven by provider consolidation and complexity, not discretionary IT spend. Margins expand as automation replaces manual labor. Regulatory noise is constant, but it favors incumbents with scale. This is not healthcare innovation. It’s payment survival infrastructure for providers under pressure.

Pitch Summary:
Clearwater Analytics Holdings, Inc., a provider of portfolio accounting and reporting software, contributed to performance. The company reported solid third quarter 2025 earnings and raised 2025 guidance. Clearwater also announced that a consortium of private equity investors intends to acquire the company, which drove a sharp positive market reaction. We retain conviction and believe Clearwater has meaningful competitive advantages and the potential to compound revenue at attractive rates for several years. The company has an efficient business model that should drive over 40% adjusted EBITDA margins over time.

BSD Analysis:
Clearwater Analytics sits in the plumbing layer of asset management where accuracy beats ambition every time. Its platform handles investment accounting and reporting for insurers and asset managers who can’t afford mistakes. Once embedded, switching is painful because data integrity and regulatory reporting are non-negotiable. Growth is steady rather than flashy, driven by client adds and wallet share expansion. Margins are still suppressed by reinvestment, but operating leverage is real as scale builds. Competition exists, but few want the complexity of this niche. This is not front-office fintech. It’s back-office infrastructure with long contracts and low churn. Clearwater compounds quietly by being boring and indispensable.

Pitch Summary:
Shares of Establishment Labs Holdings Inc. contributed to performance. Establishment Labs sells next-generation Motiva breast implants that have meaningfully lower safety risks and aesthetic benefits compared to competitors. In particular, Motiva implants cause significantly less capsular contracture and no known cancer risks, and come in a more natural ergonomic shape. The company has captured significant share in many international markets, and the U.S. launch is now underway and progressing well, having already captured about 20% of the U.S. aesthetic breast augmentation market. Reconstruction approval for cancer survivors should occur in 2026 as well. We believe Establishment will capture substantial plurality share in the U.S. over the next few years, driving significant revenue growth, profitability, and value creation.

BSD Analysis:
Establishment Labs is quietly reshaping the breast implant market by competing on safety, outcomes, and regulatory credibility rather than marketing muscle. Its Motiva implants benefit from surgeon adoption driven by lower complication rates and better patient experience. Investors dismiss the company as niche medtech and miss the global replacement cycle embedded in aesthetics. Regulatory approvals are a moat, not a hurdle, once cleared. Margin expansion comes with scale as manufacturing leverage kicks in. Demand is driven by procedure volume and product differentiation, not price discounting. This is premium medtech compounding under the radar, not a fad-driven cosmetic play.

Pitch Summary:
Shares of Exact Sciences Corporation contributed to performance. Exact is a molecular diagnostics company focused on the early detection of colorectal cancer. It is best known for its non-invasive colorectal cancer screening stool test called Cologuard. The big picture is that half of the 106 million adults in the U.S. recommended for colorectal cancer screening are not up to date, and we think the Cologuard test presents the best combination of non-invasiveness and accurate sensitivity/specificity as compared to more invasive colonoscopies and less accurate blood tests. Exact shares outperformed in 2025 as the restructuring of the commercial team drove Cologuard volume growth reacceleration, and shares further outperformed as Abbott Laboratories announced an agreement to acquire Exact Sciences for $23 billion in November. The deal represents a greater than 50% premium over the prior closing price.

BSD Analysis:
Exact Sciences is diagnostics infrastructure built around early cancer detection, not a one-product story. Cologuard established the beachhead, but the real value is in expanding screening into blood-based and multi-cancer assays. Investors fixate on reimbursement debates and margin pressure and miss how sticky guideline-driven diagnostics become once adopted. Primary care workflow integration matters more than flashy sensitivity stats. Cash burn dominates sentiment, but scale changes the unit economics fast in diagnostics. Competition is real, yet switching tests at the population level is slow and political. This is a long-cycle healthcare platform obscured by quarterly noise.

Pitch Summary:
Zoetis underperformed this year amid intensifying competition and continued headwinds from its pain product, Librela. Aggressive promotional activity in key categories further pressured growth, and near-term prospects remain muted until new product launches materialize. Given these challenges, we exited the position to fund an investment in Danaher Corporation.

BSD Analysis:
Zoetis’ moat is scientific depth and brand trust in animal health where outcomes matter more than price. Companion animal care provides resilient demand and strong pricing power. Livestock exposure adds cyclicality but diversifies revenue streams. Innovation cadence sustains growth, though patent cliffs still arrive on schedule. Competition exists, but switching is cautious when veterinarians trust protocols. Margins are strong, yet R&D intensity must remain high. The bull case is continued premiumization in companion animals. The bear case is spending sensitivity during broader consumer stress. Zoetis compounds by being the standard of care.

Pitch Summary:
Marvell Technology (MRVL) was a bottom performer during the year following heightened investor concerns around AI-related capital spending and competitive dynamics. Shares came under pressure after reports suggested potential share loss in next-generation AI chips at Amazon Web Services, despite management reaffirming its long-term outlook. The company announced a $1 billion share repurchase program during the year. We believe Marvell remains well positioned to benefit from accelerating demand for custom silicon and optical networking solutions.

BSD Analysis:
Marvell’s moat is deep customer collaboration in custom silicon for data infrastructure. Design wins are sticky once qualified, but revenue visibility depends on customers’ capex cycles. AI networking and custom accelerators are real tailwinds, yet concentration risk is high. Gross margins can expand with mix, then compress quickly if volumes wobble. Competition is intense, but switching costs buy time. Execution on complex programs matters more than roadmap hype. The bull case is sustained AI-driven buildouts with expanding content per system. The bear case is customer digestion pauses exposing operating leverage. Marvell is leverage to customer ambition—great when they spend, unforgiving when they pause.

Pitch Summary:
Veeva Systems (VEEV) traded lower during the quarter despite posting strong results and raising full-year guidance. The company delivered solid revenue growth and continued to demonstrate strong profitability, reinforcing its long-term financial targets. Investor concerns centered on increased competitive pressure in CRM from Salesforce, which weighed on sentiment despite Veeva’s progress in expanding its product portfolio and deepening customer relationships. We believe Veeva remains well positioned as a leader in life sciences software, supported by durable growth drivers.

BSD Analysis:
Veeva owns regulated life sciences software the way Bloomberg owns financial data — through necessity, not preference. Its CRM, quality, and regulatory platforms are embedded deep inside pharma workflows. Switching costs are enormous because compliance risk dwarfs licensing cost. Growth has slowed as large pharma matures, but wallet share continues to expand. Independence from hyperscalers remains a strategic advantage. Margins are elite because Veeva doesn’t overspend to win deals. AI improves efficiency without undermining the moat. This is not flashy SaaS. It’s regulated software infrastructure with brutal durability.

Pitch Summary:
ServiceNow traded lower during the quarter despite delivering strong results and raising full-year guidance. The company posted solid revenue growth, margin expansion, and highlighted accelerating adoption of its AI offerings. Large deal momentum was robust across industries and geographies. However, negative sentiment toward application software vendors and the announcement of a planned $8 billion acquisition of Armis weighed on shares.

BSD Analysis:
ServiceNow is becoming the operating system for enterprise workflows, not just an IT service desk. Once workflows run through ServiceNow, ripping it out is organizationally painful. Automation and AI enhance the platform rather than threatening it. Budget scrutiny slows growth, but ServiceNow remains a cost-savings lever for enterprises. Pricing power shows up through expansion, not sticker shock. Margins expand naturally as customers consolidate processes. Competition exists, but fragmentation works in ServiceNow’s favor. This is not hype SaaS. It’s enterprise plumbing with compounding economics.

Pitch Summary:
Netflix (NFLX) traded lower during the quarter despite solid results and raised full-year guidance. Advertising growth remains a key driver, with commitments accelerating and new formats expected in late 2025. Late in the year, Netflix announced plans to acquire Warner Bros Discovery in a transaction valued at $83 billion, which would significantly expand its content library and strengthen its competitive position. The deal faces regulatory review and is unlikely to close before late 2026, creating near-term uncertainty. We believe Netflix remains well positioned for long-term growth, supported by strong execution and strategic investments.

BSD Analysis:
Netflix has crossed from disruptive upstart to global entertainment infrastructure. Scale is now the moat — no competitor can match its content spend, data feedback loop, and worldwide distribution. The ad-supported tier unlocks monetization without sacrificing engagement. Password-sharing enforcement proved pricing power exists where skeptics said it didn’t. Content costs remain high, but they’re amortized across a massive subscriber base. Free cash flow has inflected, changing how the business should be valued. Competition hasn’t disappeared, but Netflix is consolidating power, not losing it. This is not a streaming war story anymore. It’s a dominant media utility with improving economics.

Pitch Summary:
Danaher was added as the company showed signs of renewed momentum across its businesses. Nearly 80% of revenue comes from recurring sources, supporting stability. Danaher maintains strong competitive advantages and industry-leading margins. Improving end-market conditions are accelerating demand for life sciences tools. The company’s execution track record remains best-in-class.

BSD Analysis:
Danaher is life sciences infrastructure optimized for long-cycle compounding, not quarter-to-quarter growth optics. Its tools are embedded in regulated workflows where downtime and switching risk are unacceptable. Funding cycles create noise, but installed base demand never disappears. Investors fixate on near-term deceleration and miss the durability of consumables and service revenue. The Danaher Business System keeps margins structurally high. Capital recycling steadily upgrades portfolio quality. This is scientific productivity monetized with discipline and patience.

Pitch Summary:
Broadcom was added as management believes the company is well positioned as demand for AI-related infrastructure accelerates. Broadcom sits at the center of the AI build cycle, supported by strong relationships with major cloud providers. Demand for custom compute and networking solutions continues to grow. Management sees meaningful upside as AI adoption accelerates globally. Broadcom is not just participating in the trend but helping drive it.

BSD Analysis:
Broadcom monetizes the hardest, least glamorous problems in semiconductors and enterprise software. Its chips sit at performance bottlenecks where reliability matters more than price, creating real pricing power. Custom silicon exposure ties Broadcom directly to hyperscaler capex without consumer volatility. Investors worry about cyclicality and acquisitions and miss ruthless margin discipline. The software portfolio adds recurring cash flow that stabilizes earnings. Capital allocation is brutally pragmatic. This is focus and execution across assets competitors can’t easily replace.

Pitch Summary:
Microsoft delivered strong performance supported by accelerating Azure growth and rising demand for AI workloads. Productivity software maintained healthy momentum, while early adoption of Copilot underscored AI leadership. Despite investor focus on elevated capital expenditures, disciplined execution drove nearly 20% EBIT growth year-over-year. Microsoft reinforced its ability to sustain attractive top- and bottom-line growth. The company remains central to enterprise AI adoption.

BSD Analysis:
Microsoft is enterprise gravity disguised as a software company. Office, Windows, and Azure sit so deep inside corporate workflows that switching is organizationally traumatic, not just technical. AI spend looks aggressive, but Microsoft owns the distribution, data, and trust to monetize it faster than anyone else. Azure margins quietly expand as scale compounds and workloads normalize. Investors fixate on capex headlines and miss free cash flow durability. Multiple engines—cloud, productivity, security, gaming—fund reinvestment without balance-sheet strain. This is incumbency turned into a competitive weapon, not a tech cycle bet.

Pitch Summary:
Uber delivered one of its strongest growth years, with mobility trips up 21% year-over-year and engagement reaching record highs. Bookings accelerated across both Mobility and Delivery segments. Uber One membership surpassed 36 million, accounting for more than 40% of gross bookings. Grocery and retail delivery reached a $12 billion annualized run rate. Progress in its partnership with Waymo exceeded expectations, reinforcing long-term innovation.

BSD Analysis:
Uber has quietly become urban mobility infrastructure rather than a cash-burning app. Ride-sharing economics improve with scale, and pricing discipline has returned. Delivery volatility obscures how profitable the core mobility segment has become. Investors focus on regulation and competition while free cash flow ramps. Network effects still matter in dense markets. Optionality remains in ads and logistics. This is a platform finally harvesting what it built.

Pitch Summary:
NVIDIA delivered strong returns in 2025 despite early-year volatility tied to margin concerns. The company beat earnings expectations and raised guidance throughout the year, supported by robust demand for its data center chips. Momentum accelerated following its October conference, where management outlined an ambitious roadmap for data center growth. Management projected $500 billion in combined Blackwell and Rubin revenue. NVIDIA remains widely viewed as the primary beneficiary of the AI trade.

BSD Analysis:
NVIDIA controls the picks and shovels of the AI buildout, not just the hype layer. CUDA and ecosystem lock-in matter more than silicon specs alone. Investors debate peak demand while hyperscalers race to secure supply. Margins reflect monopoly-like positioning at the frontier. Competition exists, but switching costs are measured in years, not quarters. Capital-light economics amplify cash generation. This is platform dominance disguised as a chip company.