Investment Pitches

Pitch Summary:
FirstCash is one of the largest pawn operators in the world with around 3,000 total stores. We like the pawn business because it's a defensive, needs-based business. Pawn demand typically strengthens as economic activity declines, which is an attribute not shared by many businesses. Pawn loans are also small in size, have short maturities, and are fully collateralized at attractive loan-to-values, making them very low-risk loans. Many states have adopted regulations that make it difficult to open new pawn stores, which insulates incumbent players from new competition. This leads to attractive returns on invested capital for industry participants. FirstCash has been a consolidator within the fragmented pawn industry in both the U.S. and Mexico. We expect this to continue. Therefore, even though it's been a favorable microeconomic environment for pawn operators, we believe the company should be able to generate strong growth over the mid-to-long term. The shares are trading at relatively undemanding mid-teens earnings multiple.

BSD Analysis:
FMI presents a compelling defensive value play in FirstCash, emphasizing the counter-cyclical nature of the pawn business model. The manager highlights the company's defensive characteristics, noting that pawn demand typically increases during economic downturns, providing natural recession protection. The investment thesis centers on FirstCash's market-leading position with 3,000 stores globally and its role as a consolidator in a fragmented industry across the U.S. and Mexico. FMI values the low-risk loan structure with small sizes, short maturities, and full collateralization at attractive loan-to-value ratios. Regulatory barriers to entry create competitive moats that protect incumbent operators and support attractive returns on invested capital. The manager expects continued consolidation opportunities to drive mid-to-long-term growth despite current favorable operating conditions. At a mid-teens earnings multiple, the valuation appears reasonable for a defensive growth story with structural advantages.

Pitch Summary:
Redox reported a weaker result than was expected as expense growth of 12% outstripped revenue growth of 9% resulting in profits that were down 13% on the prior year. The company said it was facing subdued demand and so I was a little surprised their pricing power in this type of environment wasn't stronger. The company has made two recent acquisitions and still has $138m of cash on its Balance Sheet to undertake further opportunities as they arise. The shares were down 38% during the quarter as a result of the relatively poor result but this business has a successful and lengthy history, remains founder-led, and is well capitalised.

BSD Analysis:
The manager maintains a bullish long-term view on Redox despite disappointing near-term results that drove shares down 38% during the quarter. The company faced margin compression as expense growth of 12% exceeded revenue growth of 9%, resulting in a 13% profit decline amid subdued demand conditions. The manager expressed surprise at the company's limited pricing power in the current environment, suggesting expectations for stronger competitive positioning. However, the investment thesis remains anchored on Redox's strong balance sheet with $138 million in cash, providing significant acquisition capacity following two recent deals. The manager emphasizes the company's successful track record, founder-led management structure, and strong capitalization as enduring competitive advantages. The significant share price decline appears to have created an attractive entry point for a quality business with proven execution capability.

Pitch Summary:
Reece Australia reported a result that reflected the challenging conditions it predicted last year were on the way in both its Australian and USA markets. Revenues were only down 3% but cost pressures saw profits fall 19% from $224m to $181m and similarly the dividend was cut by 19% as well. The Australian business managed to add a further 14 branches to its network, while the USA added 18 branches across the southern sunbelt states bringing its total count to 261. Unfortunately both markets continue to face challenging conditions due to lower mortgage affordability and weaker housing construction numbers. And in addition to this management said that competition in the USA has increased which only adds to pressure on profit margins.

BSD Analysis:
The manager acknowledges the challenging operating environment facing Reece, with the company experiencing the difficult conditions management had previously forecasted. Despite only a modest 3% revenue decline, significant cost pressures drove profits down 19% from $224 million to $181 million, with the dividend cut proportionally. The company continued its expansion strategy, adding 14 branches in Australia and 18 in the US sunbelt states, bringing the US total to 261 locations. However, structural headwinds persist across both markets, including reduced mortgage affordability and weakening housing construction activity. The competitive landscape has intensified in the US market, creating additional margin pressure. While the manager doesn't explicitly state their stance, the detailed discussion of operational challenges and margin compression suggests concern about near-term prospects despite the company's market position.

Pitch Summary:
AUB Group reported another solid result with revenues up 12% to $712m and underlying profits rose 13% to $79m from a mix of organic growth and acquisitions over the prior year. In addition, the company increased the dividend by 25% to 25cents for the half. While Australian insurance broking remains the engine of the business, its international broking business in the United Kingdom continues to grow as does its local Bizcover offering for small businesses. Not only is insurance broking a predictable business and essential part of business life, the company still has scope to make further acquisitions and employ technology to bring costs down and improve margins. As a result management have indicated that profits will increase by at least another 12% this year.

BSD Analysis:
The manager expresses strong confidence in AUB Group following another solid performance with 12% revenue growth to $712 million and 13% underlying profit growth to $79 million. The company's shareholder-friendly approach is evident in the 25% dividend increase to 25 cents per half. The investment thesis centers on the predictable, essential nature of insurance broking combined with multiple growth vectors. While Australian broking remains the core engine, international expansion in the UK and the Bizcover small business platform provide additional growth avenues. The manager appreciates the combination of organic growth and strategic acquisitions, supported by technology initiatives to drive operational efficiency and margin expansion. Management's guidance for at least 12% profit growth this year reinforces the positive momentum and execution capability.

Pitch Summary:
PWR Holdings reported revenues were down slightly as OEM high performance car contracts were either finalised or cancelled. However, wages were $5m higher than the previous period leading to a 58% fall in net profit for the half and profit margins falling to 8.6%, the lowest since becoming a public company nearly 10 years ago. The dividend was also cut by 58% in line with profits. The market has been harsh in response to the results and the shares are down more than 40% over the past year and are a large part of our recent poor performance. On a brighter note, during the quarter the company announced its largest contract win to date in the aerospace and defence market with an $8.9million contract to supply the US government which is scheduled for delivery this year. Importantly, this will be produced by their American factory and therefore should largely avoid the tariffs that are the focus of current attention.

BSD Analysis:
The manager remains bullish on PWR Holdings despite significant near-term challenges that have driven shares down over 40% in the past year. The company faced a difficult period with revenues declining as OEM high-performance car contracts concluded, while wage costs increased by $5 million, resulting in a 58% profit decline and margins compressing to 8.6% - the lowest since going public. The dividend was cut proportionally with earnings, reflecting management's disciplined capital allocation. However, the manager sees a positive inflection point with PWR's largest aerospace and defense contract win to date - an $8.9 million US government contract. Crucially, this contract will be fulfilled through their American manufacturing facility, providing natural hedge against potential tariff impacts. The diversification into aerospace and defense markets represents a strategic evolution beyond automotive cooling solutions.

Pitch Summary:
Lovisa reported a solid result with revenue up 9% and a 6.5% increase in net profit to $57million. However, same store sales were flat with the sales growth coming from the additional stores, and profit was actually down slightly when adjusted for the reduction in the CEO incentive bonus for the period. The company opened a net 43 new stores during the half year bringing the store count to 943 stores. The company indicated that store rollout would improve in this half year and they appear to be well on track to have 1,000 stores by June. Management reiterated they want Lovisa to be global brand, and while the company now has stores in 50 markets, it believes to be called a truly global business they need to have a big presence in China where they currently only have the one store. If the current trade wars escalate then this may provide the opportunity to source the store sites they have been patiently waiting for.

BSD Analysis:
The manager maintains a bullish stance on Lovisa despite recent underperformance, viewing the 20% quarterly decline as a temporary setback. The company delivered solid fundamentals with 9% revenue growth and 6.5% net profit increase to $57 million, though same-store sales remained flat. The growth story centers on aggressive store expansion, with 43 net new stores added in the half bringing the total to 943, targeting 1,000 stores by June. Management's global ambitions focus particularly on China expansion, where they currently have only one store across 50 markets. The manager sees potential opportunity in current trade tensions to secure previously unavailable Chinese retail locations. Despite near-term headwinds, the long-term international expansion thesis remains intact with strong execution on store rollout targets.

Pitch Summary:
Amazon.com is a global technology company renowned for its expansive e-commerce platform, offering a vast array of products and services to consumers worldwide. Beyond online retail, Amazon generates revenue through its cloud computing division, Amazon Web Services (AWS), which provides scalable computing solutions to businesses and governments; subscription services like Amazon Prime, offering members benefits such as streaming content and expedited shipping; and advertising services that enable brands to reach targeted audiences on its platform. During the quarter, shares detracted from performance due to concerns surrounding U.S. President Donald Trump's impending tariffs on imported goods, raising fears about increased operational costs and weaker consumer spending. Additionally, management's lower-than-expected fiscal first-quarter sales forecast and substantial planned investments—including a $100 billion commitment to AWS and AI infrastructure in 2025—further pressured sentiment regarding near-term profitability. Despite the near-term share price weakness, we believe Amazon's fundamentals remain strong given its diversified business model, continuous innovation, and dominant positions in high-growth areas like e-commerce and cloud computing.

BSD Analysis:
Alger maintains conviction in Amazon despite near-term headwinds from tariff concerns and heavy AI infrastructure investments. The manager emphasizes Amazon's diversified revenue streams across e-commerce, cloud computing, subscriptions, and advertising as providing resilience and multiple growth vectors. The $100 billion AWS and AI infrastructure commitment, while pressuring near-term margins, positions Amazon for long-term competitive advantages in cloud services and artificial intelligence. Amazon's dominant market positions in e-commerce and cloud computing create sustainable moats through scale economies and network effects. The Prime ecosystem drives customer loyalty and recurring revenue while supporting the advertising business growth. Management's willingness to invest heavily in future capabilities demonstrates long-term strategic thinking despite short-term profitability concerns. Alger views current market concerns about tariffs and investment spending as temporary factors that don't alter Amazon's fundamental competitive position or long-term value creation potential in high-growth digital markets.

Pitch Summary:
Microsoft is a beneficiary of corporate America's transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, shares detracted from performance as Azure revenue growth missed analyst estimates, marking the third consecutive quarter of modest disappointment in this segment. However, AI-related sales growth exceeded expectations, accounting for 13% of Azure's quarterly growth. Management also maintained their fiscal third-quarter earnings guidance while highlighting improved operating profitability and lower tax rates. Despite the disappointing quarter, we remain confident in Microsoft's ability to sustain its leadership position in AI.

BSD Analysis:
Alger maintains a bullish stance on Microsoft despite recent Azure growth deceleration, focusing on the company's strategic positioning in enterprise digitization and AI leadership. While Azure revenue growth has disappointed for three consecutive quarters, the manager emphasizes that AI-related sales exceeded expectations and contributed meaningfully to segment growth. Microsoft's diversified business model across productivity software, cloud infrastructure, and personal computing provides multiple growth vectors and revenue stability. The company's maintained earnings guidance and improved operating leverage demonstrate strong execution despite top-line headwinds. Alger views Microsoft's AI capabilities and enterprise relationships as sustainable competitive advantages that will drive long-term value creation. The integration of AI across the product portfolio, from Office 365 to Azure services, positions Microsoft to monetize the AI transformation across its customer base. Management's focus on profitability improvement and operational efficiency supports margin expansion even amid growth normalization.

Pitch Summary:
Nvidia Corporation is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia's computational power is a critical enabler of AI and therefore essential to AI adoption. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia's market dominance. Additionally, U.S. President Donald Trump's announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, "The more computation, the more the model thinks, the smarter the answer," and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia's leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high-performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.

BSD Analysis:
Despite near-term headwinds, Alger maintains conviction in NVIDIA's dominant position in the AI infrastructure ecosystem. The manager acknowledges competitive threats from Chinese AI models and tariff concerns but emphasizes NVIDIA's technological leadership and expanding total addressable market. CEO Jensen Huang's commentary on increasing computational requirements for advanced AI reasoning models supports the long-term demand thesis. NVIDIA's data center segment continues delivering robust growth, validating the AI infrastructure buildout cycle. The company's integrated hardware-software approach creates switching costs and competitive moats beyond pure chip performance. Alger views current market concerns as temporary while the secular AI adoption trend remains intact. NVIDIA's ability to scale inference capabilities and support enterprise AI deployments positions it to capture value across the AI stack. The ongoing refresh cycles and new cluster deployments provide multiple growth vectors as AI workloads become more sophisticated and computationally intensive.

Pitch Summary:
GFL is a waste and environmental services company undergoing a significant transformation of its balance sheet. Over recent years, the company pursued extensive mergers and acquisitions, resulting in substantial debt. GFL has since committed to reducing this leverage by the end of 2025 through divesting non-core assets and emphasizing strong free cash flow generation. We believe this deleveraging will attract increased investor attention as the company continues to strengthen its balance sheet and sharpen its focus on its core solid waste operations. During the quarter, shares contributed positively to performance after the company reported strong fiscal fourth-quarter operating results and successfully divested its environmental services segment to private equity buyers. This sale generated higher-than-expected proceeds, enabling management to reduce debt to levels comparable with industry peers. Additionally, at its analyst day, management outlined a clear strategy for sustained growth and margin expansion, supporting its industry-leading earnings trajectory. We believe GFL remains undervalued as a pure-play solid waste business with superior growth potential yet trading at a discount relative to peers.

BSD Analysis:
Alger's investment thesis on GFL centers on a compelling balance sheet transformation story with significant value creation potential. The manager views the company's aggressive deleveraging strategy as a catalyst for multiple expansion, as reduced debt levels should attract institutional investors who previously avoided the highly leveraged structure. The successful divestiture of non-core environmental services at premium valuations demonstrates management's execution capability and commitment to focus. GFL's transition to a pure-play solid waste operator positions it for improved operational efficiency and clearer investment narrative. Strong free cash flow generation supports the debt reduction timeline while funding organic growth initiatives. Management's analyst day presentation provided visibility into margin expansion opportunities and growth strategies. The current valuation discount to waste management peers creates an attractive risk-reward profile as the balance sheet normalization progresses and operational improvements materialize.

Pitch Summary:
Spotify is a leading global streaming platform providing users access to an extensive library of music, podcasts, and other audio and video content. The company primarily generates revenue through its Premium subscription service, offering ad-free listening, offline access, and enhanced audio quality, and also from its ad-supported free tier, where advertisers reach Spotify's large user base. By recently integrating AI, Spotify enriches user experiences with personalized features such as AI Playlist and AI DJ, tailoring content specifically to individual preferences. We believe this strategic use of AI, combined with its expansion into various audio formats, positions Spotify for sustained growth in the evolving digital audio market. During the quarter, shares contributed positively after the company reported better-than-expected fiscal fourth-quarter results driven by strong user growth and margin improvement due to favorable trends in audiobooks and music content costs.

BSD Analysis:
Alger's bull thesis on Spotify emphasizes the company's strategic AI integration as a key differentiator in the competitive streaming landscape. The manager highlights how AI-powered features like AI Playlist and AI DJ create personalized user experiences that drive engagement and retention. Spotify's dual revenue model combining premium subscriptions and ad-supported tiers provides multiple monetization pathways and market reach. Recent strong quarterly results demonstrate operational execution, with user growth acceleration and margin expansion from favorable content cost trends. The expansion into audiobooks and podcasts diversifies the platform beyond music, capturing a larger share of audio consumption. AI capabilities position Spotify to maintain its competitive edge through superior content discovery and user experience. The company's scale advantages in data and user base create network effects that strengthen its market position in the growing digital audio ecosystem.

Pitch Summary:
Heico is a leading manufacturer of Federal Aviation Administration (FAA) approved jet engine and aircraft component replacement parts. Its Flight Support Group (FSG) provides FAA-approved aircraft and engine replacement parts, while the Electronics Technologies Group (ETG) serves industries such as aerospace, defense, homeland security, space, and medical with specialized electronic components. We believe the company is well-positioned to benefit from the steady aging of the global commercial aerospace fleet, resulting in increased consumption of aftermarket parts. Additionally, ongoing production issues from two major aircraft manufacturers have reduced the projected new plane deliveries, further supporting our view that the average age of the global fleet is likely to remain elevated over the next few years. During the quarter, shares contributed positively to performance after the company reported strong fiscal first-quarter results, driven by continued strength in the FSG segment as commercial flight hours remained robust. Furthermore, management highlighted a recovery within the ETG segment, supported by increased demand from the U.S. Department of Defense.

BSD Analysis:
Alger presents a compelling bull case for HEICO based on structural tailwinds in the aerospace aftermarket. The manager's thesis centers on the aging global commercial fleet driving increased demand for replacement parts, a trend amplified by production delays from major aircraft manufacturers that extend fleet replacement cycles. HEICO's dual-segment model provides diversification, with the Flight Support Group benefiting from robust commercial flight activity and the Electronics Technologies Group recovering through increased defense spending. The company's FAA-approved parts position it as a critical supplier in a market with high barriers to entry. Recent strong fiscal results validate the investment thesis, with both segments showing momentum. The secular nature of fleet aging and defense modernization provides a multi-year growth runway. HEICO's specialized manufacturing capabilities and regulatory approvals create sustainable competitive advantages in the aerospace supply chain.

Pitch Summary:
FTAI Aviation is a global aviation company specializing in the acquisition, leasing, and sales of aircraft and aircraft engines, particularly focused on CFM56 and V2500 engines. The company operates through two main segments: Aviation Leasing, which manages and leases aviation assets generating rental income, and Aerospace Products, which develops, manufactures, repairs, and sells aircraft engines and aftermarket components. FTAI primarily earns revenue from leasing fees, equipment sales, and maintenance services. We believe FTAI has established a differentiated business model that maximizes profits from a highly attractive niche within the aerospace aftermarket—used CFM56 jet engines, which dominate short- to medium haul flights globally. During the quarter, shares detracted from performance following a short-seller report alleging that actual maintenance revenue and individual engine module sales were materially lower than reported, claiming FTAI inflated Aerospace Products revenues by categorizing one-time engine sales as Maintenance, Repair, and Overhaul (MRO) revenue, and suggesting profitability was driven more by asset sales than genuine value-added services. In response, FTAI's board commissioned an independent audit, which cleared the company of all allegations, allowing FTAI to file its annual report on time. Aside from the short-seller impact, shares were also pressured by broader market trends as investors rotated away from last year's strong performers. Despite these near-term challenges, we remain confident in FTAI's fundamentals and believe it represents one of the best investment opportunities to capitalize on the multi-year commercial aerospace cycle.

BSD Analysis:
FTAI Aviation operates a differentiated business model focused on the highly attractive niche of used CFM56 jet engines, which dominate short- to medium-haul flights globally. The company's dual-segment approach combines Aviation Leasing for steady rental income with Aerospace Products for higher-margin aftermarket services. Despite facing a short-seller attack alleging revenue inflation and misclassification of MRO revenues, an independent board-commissioned audit cleared FTAI of all allegations. The company successfully filed its annual report on time, demonstrating operational continuity despite the controversy. The fund managers maintain confidence in FTAI's fundamentals, viewing it as positioned to capitalize on the multi-year commercial aerospace cycle. The CFM56 engine focus provides exposure to a large installed base with ongoing maintenance and replacement needs. While near-term performance was impacted by the short-seller report and broader market rotation away from 2024 winners, the long-term aerospace aftermarket opportunity remains compelling.

Pitch Summary:
Xometry is a leading two-sided marketplace for on-demand manufacturing services. The company provides real-time access to global manufacturing demand and capacity, with sourcing and pricing available across a network of buyers and sellers. In our view, this marketplace enables buyers (e.g., engineers and product designers) to efficiently source manufacturing processes and sellers of manufacturing services to grow their businesses. Xometry's AI-enabled technology platform is powered by proprietary machine learning algorithms, resulting in a sophisticated marketplace for manufacturing. Although the company reported strong fiscal fourth-quarter results that exceeded analyst estimates, shares fell after management guided to a modest loss for fiscal 2025 on an earnings-before-interest-taxes-depreciation-and-amortization (EBITDA) basis. Additionally, we believe shares detracted from performance amid a broader sell-off affecting high-growth, unprofitable companies, as investors rotated away from stocks that performed strongly in 2024.

BSD Analysis:
Xometry operates a sophisticated two-sided marketplace connecting manufacturing buyers and sellers through AI-enabled technology and proprietary machine learning algorithms. Despite reporting strong fiscal fourth-quarter results that exceeded analyst estimates, the stock declined due to management's guidance for a modest EBITDA loss in fiscal 2025. The company's marketplace model enables efficient sourcing for engineers and product designers while helping manufacturing service providers grow their businesses. However, the path to profitability remains uncertain, with management projecting continued losses despite revenue growth. The broader market rotation away from high-growth, unprofitable companies particularly impacted Xometry, as investors moved away from 2024's strong performers. The AI-powered platform represents a competitive advantage, but execution challenges around achieving profitability weigh on investor sentiment. The stock's underperformance reflects concerns about the timeline to sustainable profitability in the on-demand manufacturing space.

Pitch Summary:
Agilysys provides innovative software solutions for the hospitality industry, including point-of-sale (POS) systems, payment gateways, reservation and table management, guest offers management, property management, inventory and procurement, analytics, document management, and mobile and wireless services. During the quarter, shares detracted from performance after the company reported lower-than-expected fiscal third quarter revenues. The revenue shortfall was primarily due to weaker-than-expected POS software sales, particularly within the Managed Food Service segment, and softer international sales. As a result, management lowered their full-year revenue guidance, citing near-term challenges associated with transitioning their POS product to a new version.

BSD Analysis:
Agilysys faced significant headwinds during the quarter with fiscal third-quarter revenues falling short of expectations, primarily driven by weakness in POS software sales. The Managed Food Service segment underperformed, while international sales also disappointed, indicating broader demand challenges across key markets. Management's decision to lower full-year revenue guidance reflects near-term execution challenges, particularly around the transition to a new POS product version. This product transition risk suggests potential customer disruption and competitive vulnerability during the migration period. The hospitality software market remains competitive, and Agilysys appears to be losing momentum in key segments. The combination of revenue shortfalls and reduced guidance created negative sentiment that detracted from the fund's quarterly performance. The company needs to successfully execute its product transition to regain growth momentum.

Pitch Summary:
Guidewire is the market leader in providing SaaS and software solutions for the property and casualty (PnC) insurance segment, serving major customers throughout the industry. The company offers a comprehensive suite of solutions covering policy, billing, and claims, and is recognized as the most advanced cloud technology provider among its competitors. We believe that new customer adoption of cloud solutions, combined with the ongoing migration of existing clients to the cloud, represents a key long-term growth driver, positioning the company for continued cross-selling and upselling opportunities. During the quarter, Guidewire reported strong fiscal second-quarter results, driven by better-than-expected growth in annual recurring revenue (ARR). Additionally, the company secured several new cloud contracts, including five with major insurers, underscoring strong market demand for its offerings. Given the strong operating results, shares contributed to performance during the quarter.

BSD Analysis:
Guidewire maintains market leadership in property and casualty insurance software, with a comprehensive suite covering policy, billing, and claims management. The company's cloud migration strategy is driving strong annual recurring revenue growth, exceeding expectations in the fiscal second quarter. New customer adoption combined with existing client migrations to cloud solutions creates multiple expansion opportunities through cross-selling and upselling. The securing of five new cloud contracts with major insurers during the quarter demonstrates robust market demand for Guidewire's advanced technology platform. The company's recognized position as the most advanced cloud provider in the P&C insurance space provides competitive advantages. The ongoing digital transformation in insurance creates a multi-year growth runway for cloud-based solutions. Strong operating results and contract wins contributed positively to the fund's quarterly performance.

Pitch Summary:
GeneDx is a specialty laboratory focused on genetic testing for the diagnosis of rare diseases, primarily targeting pediatric patients in neonatal intensive care units and those with developmental disorders. Currently, GeneDx offers three primary categories of testing: (1) whole exome/genome sequencing, (2) hereditary cancer screening, and (3) individual gene tests and smaller genetic panels. Shares contributed positively to performance during the quarter after the company reported strong fiscal fourth-quarter results, driven by robust customer demand. Additionally, management raised their fiscal 2025 revenue guidance, exceeding analyst estimates.

BSD Analysis:
GeneDx delivered strong fiscal fourth-quarter results that exceeded expectations, driven by robust demand for genetic testing services in rare disease diagnosis. The company's focus on pediatric patients in NICUs and developmental disorders represents a specialized niche with significant medical need. Their comprehensive testing portfolio spans whole exome/genome sequencing, hereditary cancer screening, and targeted gene panels, providing multiple revenue streams. Management's decision to raise fiscal 2025 revenue guidance above analyst estimates signals confidence in continued growth momentum. The rare disease genetic testing market benefits from increasing awareness and adoption of precision medicine approaches. GeneDx's specialty laboratory model positions it well to capture market share in this growing segment. The positive quarterly performance and raised guidance contributed to strong stock performance during the period.

Pitch Summary:
Inari Medical is a medical device company that develops and sells innovative solutions for venous diseases, such as venous thromboembolism. The company generates revenue primarily through sales of its minimally invasive clot-removal devices, including the ClotTriever and FlowTriever systems. On January 6, 2025, Stryker Corporation announced a definitive agreement to acquire Inari Medical for $80 per share in cash, representing a total transaction value of approximately $4.7 billion. The acquisition was successfully completed on February 19, 2025, after the expiration of the tender offer and fulfillment of standard closing conditions. As a result, shares contributed positively to performance during the quarter.

BSD Analysis:
The fund benefited from Stryker's acquisition of Inari Medical at $80 per share, representing a $4.7 billion transaction that closed in February 2025. Inari's focus on minimally invasive clot-removal devices for venous thromboembolism positioned it as an attractive acquisition target in the medical device space. The ClotTriever and FlowTriever systems represent innovative solutions in the venous disease treatment market. The successful completion of the tender offer and fulfillment of closing conditions demonstrates the strategic value Stryker saw in Inari's technology platform. The acquisition premium provided significant returns for the fund during the quarter. This transaction highlights the consolidation trend in medical devices as larger players seek innovative technologies. The fund's position was fully monetized through the cash acquisition, contributing positively to quarterly performance.

Pitch Summary:
Agilysys provides innovative software solutions for the hospitality industry, including point-of-sale (POS) systems, payment gateways, reservation and table management, guest offers management, property management, inventory and procurement, analytics, document management, and mobile and wireless services. During the quarter, shares detracted from performance after the company reported lower-than-expected fiscal third quarter revenues. The revenue shortfall was primarily due to weaker-than-expected POS software sales, particularly within the Managed Food Service segment, and softer international sales. As a result, management lowered their full-year revenue guidance, citing near-term challenges associated with transitioning their POS product to a new version.

BSD Analysis:
The manager takes a neutral stance on Agilysys following the company's disappointing fiscal third-quarter results and reduced full-year guidance. While Agilysys maintains a comprehensive suite of hospitality software solutions spanning POS systems, property management, and analytics, near-term execution challenges have emerged. The revenue shortfall was primarily driven by weaker-than-expected POS software sales in the Managed Food Service segment and softer international performance. Management's decision to lower full-year revenue guidance reflects challenges associated with transitioning their POS product to a new version, suggesting temporary disruption during the upgrade cycle. The manager appears to view this as an execution issue rather than a fundamental market problem, given the company's broad hospitality software platform. However, the transition challenges and international softness indicate near-term headwinds that may persist until the new POS version is successfully deployed and adopted by customers.

Pitch Summary:
Upstart is a leading AI-powered lending platform that partners with banks and credit unions to improve access to affordable credit. By leveraging machine learning algorithms, the company evaluates non-traditional risk factors to provide more accurate credit assessments, enabling better loan approvals and pricing. Upstart aims to make the lending process more inclusive and efficient while helping its financial institution partners drive growth and manage risk effectively. After delivering impressive share price performance throughout 2024, shares detracted from performance this quarter. While the company reported solid fiscal fourth-quarter operating results with all three major product lines showing considerable growth, we believe shares were under pressure due in large part to macroeconomic concerns. Specifically, escalating trade tensions and potential recession fears pressured financial technology stocks, making investors wary of the company's consumer credit exposure.

BSD Analysis:
The manager maintains a neutral stance on Upstart Holdings despite the company's strong operational performance and innovative AI-powered lending platform. Upstart's differentiated approach using machine learning algorithms to evaluate non-traditional risk factors enables more accurate credit assessments and inclusive lending practices. The company reported solid fiscal fourth-quarter results with considerable growth across all three major product lines, indicating strong execution of its business model. However, the manager attributes the stock's underperformance to broader macroeconomic headwinds rather than company-specific issues. Escalating trade tensions and recession fears have pressured fintech stocks, with investors particularly concerned about consumer credit exposure in a potentially weakening economic environment. The manager appears to view the current weakness as macro-driven rather than fundamental, suggesting the underlying AI-powered lending platform remains compelling despite near-term market sentiment challenges.