Investment Pitches

Pitch Summary:
Citigroup's shares have appreciated (along with other bank stocks) from a profoundly depressed level of less than 50% of tangible book value to a modestly depressed level of 70%. We expect the company to deliver significantly improved results and sizable capital returns over the next few years.

BSD Analysis:
The managers view Citigroup as a deep value opportunity trading at a significant discount to tangible book value despite recent appreciation. At 70% of tangible book value, the stock remains attractively valued compared to historical norms and peer banks. The fund expects meaningful operational improvements and enhanced capital returns as CEO Jane Fraser's restructuring initiatives gain traction. Citigroup's global franchise, particularly in institutional banking and emerging markets, provides competitive advantages that should drive improved returns on equity. The bank's excess capital position supports substantial shareholder returns through dividends and buybacks once regulatory constraints ease and operational metrics improve.

Pitch Summary:
Building materials (largely concrete, cement, and aggregates) company Holcim has performed well over the past year. In addition to strong operating performance, management has taken several steps to return value to shareholders and improve awareness of the company's underlying business strength, including repurchasing shares, increasing the dividend, and announcing plans to separate the company's North American business.

BSD Analysis:
The fund managers highlight Holcim's strong operational execution and proactive capital allocation strategy. Management has demonstrated shareholder-friendly initiatives through share buybacks, dividend increases, and strategic portfolio optimization via the planned North American business separation. This spin-off could unlock value by allowing investors to value the distinct regional operations separately and potentially at higher multiples. The building materials sector benefits from infrastructure spending and construction activity, positioning Holcim to capitalize on these secular trends. The company's diversified geographic footprint and integrated operations in cement, aggregates, and ready-mix concrete provide defensive characteristics and pricing power in local markets.

Pitch Summary:
80% of the company's sales are threatened by new regulations; the sole banking partner received a federal cease-and-desist order; payday lending practices contrary to its 0% credit ad; employs 'dark patterns' to manipulate users to tip; EWA providers will be prohibited from default tips;

BSD Analysis:
Repeat entry — Dave Inc. The duplicate reinforces that short interest is consistently high due to fragile unit economics and regulatory overhang. Even with new product launches (credit builder, side hustle marketplace), scaling remains elusive. Bears expect dilution and liquidity stress to persist, as the firm lacks durable differentiation against larger fintech peers. In a rising-rate environment, Dave’s cost of funds will weigh further on margin expansion.

Pitch Summary:
A predatory payday lender; reliant on 'tipping' from users, which is declining constantly yoy; dependent on a single bank partner related to fraudulent/shady businesses; regulatory trial rules were issued for the company; up to 100% downside;

BSD Analysis:
Dave Inc. is a digital banking app offering paycheck advances and overdraft alternatives. The short case emphasizes unit economics, regulatory risk, and reliance on interchange fees. Bears note that Dave’s business model is vulnerable to CFPB scrutiny over fee structures, while customer acquisition costs remain high relative to lifetime value. Scale disadvantages vs. Chime or Cash App limit competitive positioning. The company has leaned on SPAC-era funding and ongoing dilution to sustain operations. From a BSD lens, the equity is essentially a call option on achieving sustainable profitability before capital runs out. Investors should watch monthly active users, net take rate, and cash burn trajectory.

Pitch Summary:
Some shareholders may remember a former successful Bretton investment in the wallboard space, Continental Building Products, which we owned from 2016 until it was acquired by the materials conglomerate Saint-Gobain in early 2020. Wallboard—often known as drywall—is one of the key components in building a house, and given the structural shortage of homes in the US, we think there'll be a lot of wallboard sold for a long time. Eagle is one of the main producers of wallboard and is likely to be a beneficiary of this. While strong demand is great, it's only valuable if you also have a competitive advantage. Eagle has several. Wallboard is a commodity product; there's not much of a difference between Eagle's wallboard and someone else's. But it has its own low-cost source of gypsum, the main ingredient in wallboard, giving it a cost advantage. Wallboard is unwieldy to ship over long distances, so it's not economical for a builder in, say, Austin to buy wallboard made in Seattle. In each market it's in, Eagle only competes with maybe two or three competitors, which prevents pricing from getting cutthroat. And it doesn't hurt that its facilities are located in the fast-growing housing markets of the Sun Belt and Colorado. Eagle's other line of business is producing cement, the dry powder that's the main ingredient for concrete, and it shares many of the same market dynamics as wallboard. It's a commodity product with growing demand, but production is constrained by transportation costs as well as environmental factors. It's very difficult to build a new cement plant in the US today due to environmental regulations. Cement—as you may know—is also heavy. While some coastal markets can import cement, it's not an option for the vast majority of the country. With the 2021 passage of the federal infrastructure law, we are going to see years and years of spending on the construction and maintenance of bridges, highways, and public transportation. Cement is a critical component in all of these projects. We have found success investing in exceptional companies in unexceptional industries. Most of the companies in the aggregates sector have so-so financial returns. At the risk of sounding glib, they seem to care more about digging things up from the earth than they do about how much money their shareholders make. Eagle Materials reverses these priorities and evaluates each capital investment against return thresholds and whether they should instead return capital to investors. This shows up in their financials. Their margins are the best in the industry, and their return on equity is more than double their competitors'. In cyclical businesses, it can be hard to get the timing right, but we think the company is so well managed that buying in at the current attractive valuation will pay off in the long run.

BSD Analysis:
Bretton Fund presents a compelling bull case for Eagle Materials based on structural demand drivers and competitive advantages in commodity building materials. The managers highlight Eagle's dual exposure to wallboard and cement markets, both benefiting from the US housing shortage and federal infrastructure spending. Key competitive moats include proprietary low-cost gypsum sourcing, regional market oligopolies due to high transportation costs, and strategic facility locations in high-growth Sun Belt markets. The investment thesis emphasizes Eagle's superior capital allocation discipline compared to industry peers, evidenced by best-in-class margins and return on equity metrics exceeding 2x competitors. Management views the current valuation as attractive for a cyclical business with exceptional operational execution. The fund's previous success with Continental Building Products in the same sector provides additional conviction in the wallboard market dynamics. This appears to be a classic Bretton strategy of finding well-managed companies in mundane but essential industries with durable competitive advantages.

Pitch Summary:
We began accumulating shares of GE Aerospace in April of last year, with our current position established at an average cost of approximately $149 per share. Like Boeing, GE stands to benefit from powerful macro trends including reshoring, increased defense spending, and the global rebound in air travel. But unlike Boeing, GE is not a turnaround story. The company has already successfully repositioned itself as a focused aerospace leader. It's investing heavily in U.S. factories and suppliers to expand production capacity, improve supply chain resilience, and support reshoring initiatives. GE also plays a critical role in defense. On the commercial side, it powers the majority of widebody aircraft in North America and holds a dominant position in the narrow-body segment through its joint venture with Safran Aircraft Engines, CFM International. GE's high-margin engine MRO business is another bright spot, poised for growth as airlines extend the life of existing aircraft. In effect, GE benefits both from Boeing's recovery and from broader structural demand in aviation. We also see GE as an innovation leader—applying AI and digital tools to improve predictive maintenance, streamline inspections, and enhance manufacturing processes. Altogether, our investment in GE reflects confidence in a stable, future-focused company that's positioned at the center of global aerospace and industrial growth.

BSD Analysis:
WestEnd positions GE Aerospace as a high-quality aerospace leader with dominant market positions and multiple growth drivers. The fund established the position at $149 per share, emphasizing this is a focused, successfully repositioned company rather than a turnaround story. The investment thesis highlights GE's market dominance, powering the majority of North American widebody aircraft and holding strong narrow-body positions through the CFM International joint venture. Key value drivers include the high-margin MRO business benefiting from aircraft life extensions and structural aviation demand growth. The company's heavy investment in U.S. manufacturing capacity aligns with reshoring trends while providing supply chain resilience. Defense exposure adds diversification and growth potential. WestEnd particularly values GE's innovation leadership in AI and digital tools for predictive maintenance and manufacturing optimization, positioning it at the center of aerospace industry transformation.

Pitch Summary:
Rockwell Automation is another "picks and shovels" investment in the Industrials sector—an established company well-positioned to benefit from reshoring trends, increased defense spending, and the broader adoption of automation and AI in manufacturing. As the economy grows, we expect more industries to invest in faster, smarter, and more reliable production systems, which directly supports demand for Rockwell's offerings. Its portfolio of automation technologies—including sensors, software, and control systems—helps make domestic manufacturing more efficient and cost-effective. In the defense space, Rockwell also supplies critical systems used in military production facilities. Unlike Boeing, Rockwell is not a turnaround story. It is already a key enabler of advanced manufacturing and a leader in industrial AI, offering solutions for predictive maintenance, quality control, and digital twins that optimize factory operations with leaner workforces. We saw compelling demonstrations of Rockwell's technology at Nvidia's GTC conference in March, which reinforced our investment thesis. We began accumulating shares of Rockwell in early March at an average price of approximately $271 per share.

BSD Analysis:
WestEnd views Rockwell as a high-quality industrial automation leader positioned to benefit from multiple secular trends. The fund initiated the position at $271 per share, emphasizing this is not a turnaround but rather an established market leader. The investment thesis centers on Rockwell's exposure to reshoring trends, defense spending increases, and accelerating AI adoption in manufacturing. Key differentiators include the company's comprehensive automation portfolio spanning sensors, software, and control systems that enhance manufacturing efficiency. The fund highlights Rockwell's leadership in industrial AI applications including predictive maintenance, quality control, and digital twins. Defense exposure provides additional growth drivers through military production facility systems. Management's attendance at Nvidia's GTC conference reinforced their conviction in the company's technology leadership and AI capabilities.

Pitch Summary:
Given our conviction in Boeing's recovery, we also sought out complementary opportunities—"picks and shovels" plays—that could benefit from Boeing's resurgence. Howmet Aerospace stood out. Beyond its direct connection to Boeing, Howmet is well positioned to benefit from broader sector tailwinds, including rising demand in aerospace and defense and the growing emphasis on building resilient domestic supply chains. As a key supplier of critical components for both commercial and military aircraft, Howmet plays an essential role in supporting next-generation manufacturing. Its expertise in advanced materials and precision engineering makes it a go-to partner for aerospace companies raising quality standards and adopting new technologies. We began building a position in Howmet in early March at an average cost of $130 per share.

BSD Analysis:
WestEnd positions Howmet as a "picks and shovels" play to capitalize on aerospace recovery and Boeing's turnaround. The fund initiated the position at $130 per share, viewing Howmet as a critical supplier benefiting from multiple industry tailwinds. The investment thesis emphasizes Howmet's role in domestic supply chain resilience and next-generation manufacturing capabilities. Key value drivers include rising aerospace and defense demand, advanced materials expertise, and precision engineering capabilities that make it essential for quality-focused aerospace companies. The company's dual exposure to commercial and military aircraft provides diversified revenue streams. WestEnd sees Howmet as well-positioned for the broader reshoring trend and increased defense spending, while its advanced materials capabilities align with industry adoption of new technologies.

Pitch Summary:
Long-time clients may recall our liquidation of Boeing in early January 2024 following the Alaska Airlines door plug incident. We exited at around $227.62. Following a management shakeup, however, with new leadership under former engineer Kelly Ortberg, we noticed the firm was working to bounce back from safety issues, production problems, and financial losses. The company focus had decisively shifted to quality, stabilizing aircraft output, and rebuilding trust. We viewed Boeing's commercial side as a turnaround story, accommodated by the steady income provided by the firm's defense business. WestEnd began accumulating shares in December 2024 at an average price of $175.47. With strong demand for air travel and a huge backlog of plane orders, delivering aircraft on time is crucial, in which Boeing has demonstrated significant improvement this year. While the latest tragic Air India crash slightly hit the stock, it has recovered as it became apparent that pilot error was the most likely cause. We remain confident that Boeing can further improve execution and take advantage of industry trends like reshoring and increased defense spending, while capitalizing on high demand from China after the country lifted its ban Boeing deliveries due to the temporary tariff truce.

BSD Analysis:
WestEnd presents Boeing as a turnaround story following significant operational and safety challenges. The fund re-entered the position at $175.47 after previously exiting at $227.62 following the Alaska Airlines incident, suggesting they see substantial value at current levels. The investment thesis centers on new leadership under Kelly Ortberg driving operational improvements and quality focus. Key catalysts include strong air travel demand, a substantial order backlog, and improved on-time delivery performance. The fund views Boeing's defense business as providing steady income while the commercial side recovers. Macro tailwinds include reshoring trends, increased defense spending, and renewed Chinese demand following the lifting of delivery bans. The position represents a contrarian bet on operational execution improvement in a structurally growing industry.

Pitch Summary:
We began accumulating shares of GE Aerospace in April of last year, with our current position established at an average cost of approximately $149 per share. Like Boeing, GE stands to benefit from powerful macro trends including reshoring, increased defense spending, and the global rebound in air travel. But unlike Boeing, GE is not a turnaround story. The company has already successfully repositioned itself as a focused aerospace leader. It's investing heavily in U.S. factories and suppliers to expand production capacity, improve supply chain resilience, and support reshoring initiatives. GE also plays a critical role in defense. On the commercial side, it powers the majority of widebody aircraft in North America and holds a dominant position in the narrow-body segment through its joint venture with Safran Aircraft Engines, CFM International. GE's high-margin engine MRO business is another bright spot, poised for growth as airlines extend the life of existing aircraft. In effect, GE benefits both from Boeing's recovery and from broader structural demand in aviation. We also see GE as an innovation leader—applying AI and digital tools to improve predictive maintenance, streamline inspections, and enhance manufacturing processes. Altogether, our investment in GE reflects confidence in a stable, future-focused company that's positioned at the center of global aerospace and industrial growth.

BSD Analysis:
WestEnd positions GE Aerospace as a high-quality aerospace leader with dominant market positions, acquired at $149 per share beginning in April 2024. The manager distinguishes GE from Boeing as an established leader rather than a turnaround, emphasizing the company's successful transformation into a focused aerospace pure-play. The investment thesis centers on GE's market-leading positions in both widebody and narrow-body engine markets, with particular strength through the CFM International joint venture with Safran. Key value drivers include the high-margin MRO business benefiting from fleet age extension, substantial investments in U.S. manufacturing capacity supporting reshoring trends, and strong exposure to defense spending growth. The manager highlights GE's innovation leadership in applying AI and digital technologies to enhance predictive maintenance and manufacturing efficiency. This represents a quality growth investment with multiple revenue streams, dominant market positions, and strong exposure to structural aerospace industry tailwinds including commercial aviation recovery and defense modernization.

Pitch Summary:
Rockwell Automation is another "picks and shovels" investment in the Industrials sector—an established company well-positioned to benefit from reshoring trends, increased defense spending, and the broader adoption of automation and AI in manufacturing. As the economy grows, we expect more industries to invest in faster, smarter, and more reliable production systems, which directly supports demand for Rockwell's offerings. Its portfolio of automation technologies—including sensors, software, and control systems—helps make domestic manufacturing more efficient and cost-effective. In the defense space, Rockwell also supplies critical systems used in military production facilities. Unlike Boeing, Rockwell is not a turnaround story. It is already a key enabler of advanced manufacturing and a leader in industrial AI, offering solutions for predictive maintenance, quality control, and digital twins that optimize factory operations with leaner workforces. We saw compelling demonstrations of Rockwell's technology at Nvidia's GTC conference in March, which reinforced our investment thesis. We began accumulating shares of Rockwell in early March at an average price of approximately $271 per share.

BSD Analysis:
WestEnd presents Rockwell Automation as a high-quality industrial automation leader positioned to capitalize on multiple structural trends, acquired at $271 per share in March. The manager emphasizes Rockwell's established market position rather than a turnaround story, highlighting the company's comprehensive automation portfolio including sensors, software, and control systems. The investment thesis centers on Rockwell's ability to benefit from reshoring trends, increased defense spending, and the accelerating adoption of AI in manufacturing. Key differentiators include the company's leadership in industrial AI applications such as predictive maintenance, quality control, and digital twin technologies that enable more efficient operations with reduced workforce requirements. The manager's conviction was reinforced by technology demonstrations at Nvidia's GTC conference, suggesting strong validation of Rockwell's AI capabilities. This represents a quality growth play on the digitization and automation of domestic manufacturing with multiple tailwinds supporting long-term demand growth.

Pitch Summary:
Given our conviction in Boeing's recovery, we also sought out complementary opportunities—"picks and shovels" plays—that could benefit from Boeing's resurgence. Howmet Aerospace stood out. Beyond its direct connection to Boeing, Howmet is well positioned to benefit from broader sector tailwinds, including rising demand in aerospace and defense and the growing emphasis on building resilient domestic supply chains. As a key supplier of critical components for both commercial and military aircraft, Howmet plays an essential role in supporting next-generation manufacturing. Its expertise in advanced materials and precision engineering makes it a go-to partner for aerospace companies raising quality standards and adopting new technologies. We began building a position in Howmet in early March at an average cost of $130 per share.

BSD Analysis:
WestEnd positions Howmet Aerospace as a strategic "picks and shovels" play to complement their Boeing investment, acquired at $130 per share in March. The manager highlights Howmet's critical role as a supplier of advanced components for both commercial and military aircraft, emphasizing the company's expertise in advanced materials and precision engineering. The investment thesis centers on Howmet's positioning to benefit from multiple industry tailwinds including rising aerospace and defense demand, supply chain reshoring initiatives, and the broader recovery in commercial aviation. The company's dual exposure to commercial and military markets provides diversification while its advanced manufacturing capabilities position it as an essential partner for aerospace OEMs focused on quality improvements and technological advancement. This represents a leveraged play on aerospace recovery with strong fundamentals in advanced materials and precision manufacturing. The manager views Howmet as well-positioned to capitalize on the structural trends driving the aerospace sector.

Pitch Summary:
Long-time clients may recall our liquidation of Boeing in early January 2024 following the Alaska Airlines door plug incident. We exited at around $227.62. Following a management shakeup, however, with new leadership under former engineer Kelly Ortberg, we noticed the firm was working to bounce back from safety issues, production problems, and financial losses. The company focus had decisively shifted to quality, stabilizing aircraft output, and rebuilding trust. We viewed Boeing's commercial side as a turnaround story, accommodated by the steady income provided by the firm's defense business. WestEnd began accumulating shares in December 2024 at an average price of $175.47. With strong demand for air travel and a huge backlog of plane orders, delivering aircraft on time is crucial, in which Boeing has demonstrated significant improvement this year. While the latest tragic Air India crash slightly hit the stock, it has recovered as it became apparent that pilot error was the most likely cause. We remain confident that Boeing can further improve execution and take advantage of industry trends like reshoring and increased defense spending, while capitalizing on high demand from China after the country lifted its ban Boeing deliveries due to the temporary tariff truce.

BSD Analysis:
WestEnd presents Boeing as a compelling turnaround opportunity under new leadership, having re-entered the position at $175.47 after previously exiting at $227.62 following safety incidents. The manager emphasizes Boeing's strategic pivot toward quality and operational stability under CEO Kelly Ortberg, positioning the company to benefit from robust commercial aviation demand and a substantial order backlog. The investment thesis centers on Boeing's dual revenue streams from commercial aircraft and defense contracts, providing stability during the turnaround phase. Key catalysts include improved on-time delivery performance, the resumption of Chinese deliveries following tariff de-escalation, and broader industry tailwinds from reshoring initiatives and increased defense spending. The manager demonstrates confidence in Boeing's execution capabilities and views current valuation as attractive given the company's market position and recovery trajectory. This represents a classic turnaround play with multiple operational and macro catalysts supporting the bull case.

Pitch Summary:
We began accumulating shares of GE Aerospace in April of last year, with our current position established at an average cost of approximately $149 per share. Like Boeing, GE stands to benefit from powerful macro trends including reshoring, increased defense spending, and the global rebound in air travel. But unlike Boeing, GE is not a turnaround story. The company has already successfully repositioned itself as a focused aerospace leader. It's investing heavily in U.S. factories and suppliers to expand production capacity, improve supply chain resilience, and support reshoring initiatives. GE also plays a critical role in defense. On the commercial side, it powers the majority of widebody aircraft in North America and holds a dominant position in the narrow-body segment through its joint venture with Safran Aircraft Engines, CFM International. GE's high-margin engine MRO business is another bright spot, poised for growth as airlines extend the life of existing aircraft. In effect, GE benefits both from Boeing's recovery and from broader structural demand in aviation. We also see GE as an innovation leader—applying AI and digital tools to improve predictive maintenance, streamline inspections, and enhance manufacturing processes. Altogether, our investment in GE reflects confidence in a stable, future-focused company that's positioned at the center of global aerospace and industrial growth.

BSD Analysis:
WestEnd positions GE Aerospace as a high-quality aerospace leader with dominant market positions, acquired at approximately $149 per share starting in April 2024. The manager distinguishes GE from turnaround stories, emphasizing its successful transformation into a focused aerospace company with strong competitive moats. The investment thesis highlights GE's market dominance in both widebody aircraft engines in North America and narrow-body engines through the CFM International joint venture with Safran. Key value drivers include the high-margin MRO business positioned for growth as airlines extend aircraft lifecycles, substantial investments in U.S. manufacturing capacity supporting reshoring initiatives, and critical defense applications. The manager emphasizes GE's innovation leadership in applying AI and digital tools for predictive maintenance and manufacturing optimization. Multiple tailwinds support the investment including reshoring trends, increased defense spending, global aviation recovery, and Boeing's resurgence, positioning GE at the center of aerospace industry growth with both cyclical and structural demand drivers.

Pitch Summary:
Rockwell Automation is another "picks and shovels" investment in the Industrials sector—an established company well-positioned to benefit from reshoring trends, increased defense spending, and the broader adoption of automation and AI in manufacturing. As the economy grows, we expect more industries to invest in faster, smarter, and more reliable production systems, which directly supports demand for Rockwell's offerings. Its portfolio of automation technologies—including sensors, software, and control systems—helps make domestic manufacturing more efficient and cost-effective. In the defense space, Rockwell also supplies critical systems used in military production facilities. Unlike Boeing, Rockwell is not a turnaround story. It is already a key enabler of advanced manufacturing and a leader in industrial AI, offering solutions for predictive maintenance, quality control, and digital twins that optimize factory operations with leaner workforces. We saw compelling demonstrations of Rockwell's technology at Nvidia's GTC conference in March, which reinforced our investment thesis. We began accumulating shares of Rockwell in early March at an average price of approximately $271 per share.

BSD Analysis:
WestEnd presents Rockwell Automation as a high-quality industrial automation leader positioned to capitalize on multiple secular trends, acquired at approximately $271 per share in March. Unlike their turnaround plays, the manager emphasizes Rockwell's established market position and current leadership in industrial AI and advanced manufacturing solutions. The investment thesis centers on the company's comprehensive automation portfolio including sensors, software, and control systems that enable more efficient domestic manufacturing. Key growth drivers include reshoring trends, increased defense spending, and broader AI adoption in manufacturing environments. The manager highlights Rockwell's advanced capabilities in predictive maintenance, quality control, and digital twin technologies that optimize factory operations with reduced workforce requirements. The validation of their technology at Nvidia's GTC conference reinforces the company's position at the intersection of industrial automation and artificial intelligence, positioning it as a critical enabler of next-generation manufacturing.

Pitch Summary:
Given our conviction in Boeing's recovery, we also sought out complementary opportunities—"picks and shovels" plays—that could benefit from Boeing's resurgence. Howmet Aerospace stood out. Beyond its direct connection to Boeing, Howmet is well positioned to benefit from broader sector tailwinds, including rising demand in aerospace and defense and the growing emphasis on building resilient domestic supply chains. As a key supplier of critical components for both commercial and military aircraft, Howmet plays an essential role in supporting next-generation manufacturing. Its expertise in advanced materials and precision engineering makes it a go-to partner for aerospace companies raising quality standards and adopting new technologies. We began building a position in Howmet in early March at an average cost of $130 per share.

BSD Analysis:
WestEnd positions Howmet Aerospace as a strategic "picks and shovels" play to complement their Boeing investment, acquired at $130 per share in March. The manager highlights Howmet's critical role as a supplier of advanced components for both commercial and military aircraft, emphasizing the company's expertise in advanced materials and precision engineering. The investment thesis centers on Howmet's positioning to benefit from multiple industry tailwinds including Boeing's recovery, rising aerospace and defense demand, and the strategic shift toward resilient domestic supply chains. The company's dual exposure to commercial and military markets provides diversification while its advanced manufacturing capabilities position it as an essential partner for aerospace companies upgrading quality standards and adopting new technologies. This represents a leveraged play on the broader aerospace recovery with strong fundamentals in advanced materials and precision manufacturing.

Pitch Summary:
Long-time clients may recall our liquidation of Boeing in early January 2024 following the Alaska Airlines door plug incident. We exited at around $227.62. Following a management shakeup, however, with new leadership under former engineer Kelly Ortberg, we noticed the firm was working to bounce back from safety issues, production problems, and financial losses. The company focus had decisively shifted to quality, stabilizing aircraft output, and rebuilding trust. We viewed Boeing's commercial side as a turnaround story, accommodated by the steady income provided by the firm's defense business. WestEnd began accumulating shares in December 2024 at an average price of $175.47. With strong demand for air travel and a huge backlog of plane orders, delivering aircraft on time is crucial, in which Boeing has demonstrated significant improvement this year. While the latest tragic Air India crash slightly hit the stock, it has recovered as it became apparent that pilot error was the most likely cause. We remain confident that Boeing can further improve execution and take advantage of industry trends like reshoring and increased defense spending, while capitalizing on high demand from China after the country lifted its ban Boeing deliveries due to the temporary tariff truce.

BSD Analysis:
WestEnd presents Boeing as a compelling turnaround opportunity under new leadership, having re-entered the position at $175.47 after previously exiting at $227.62 following safety concerns. The manager emphasizes Boeing's strategic pivot toward quality and operational stability under CEO Kelly Ortberg, positioning the company to benefit from robust commercial aviation demand and a substantial order backlog. The investment thesis centers on Boeing's dual revenue streams from commercial aircraft and defense contracts, providing stability during the turnaround phase. Key catalysts include improved on-time delivery performance, the resumption of Chinese deliveries following tariff de-escalation, and broader industry tailwinds from reshoring initiatives and increased defense spending. The manager demonstrates confidence in Boeing's execution capabilities and views current valuation as attractive given the company's market position and recovery trajectory. This represents a classic turnaround play with multiple operational and macro catalysts supporting the bull case.

Pitch Summary:
This quarter I will discuss an investment we made in Talen Energy (NASDAQ:TLN). Talen is the only stock we own across both our Event-Driven and Growth Portfolios. Talen Energy is an unregulated power generator whose primary asset is a 2.2 gigawatt nuclear power plant located outside of Berwick, PA. The Company also owns an additional 8.4 gigawatts of mostly natural gas powered plants in the Mid-Atlantic region. The investment story for Talen begins with the Company's 2022 bankruptcy. Talen was a debt-strapped private-equity backed company with a sprawling power generation portfolio. In addition to managing a complex capital structure, the company maintained a hedging strategy to protect itself from a sudden drop in energy prices. Ironically, Talen wasn't protected from a sudden rise in energy prices. When the war in Ukraine broke out in Spring 2022, natural gas prices soared. Talen was short natural gas futures, as a hedge, and was stuck with a large short-term financial loss requiring it to post collateral at the exchange. Talen was unable to post collateral and instead filed for bankruptcy protection. Post-bankruptcy restructuring situations tend to be good hunting grounds for investments because you can often find otherwise good companies married to bad balance sheets. After shedding liabilities that made a company insolvent, opportunistic investors are often able to buy restructured assets at attractive prices. To take this idea further, I believe Talen is a better business today than it was pre-bankruptcy. The bankruptcy process allowed Talen to clean up its balance sheet by converting debt liabilities to equity capital. Talen also restructured its hedging program so that it no longer would need to provide collateral in the case of energy market volatility. In a stroke of luck, Talen no longer needs to hedge its nuclear power generation at all because the Inflation Reduction Act introduced a tax credit scheme that protects nuclear power plants when electricity prices fall. The combination of the new hedge program and the nuclear power tax credits has fundamentally transformed the asset/liability profile of the company. Talen's new management team resolved a pragmatic strategy for Talen 2.0. First, divest non-core assets including the Texas energy portfolio, a data center shell, and a bitcoin mining project. Second, regain a mainstream equity listing by uplisting from the illiquid over-the-counter market to the Nasdaq. Finally, return excess capital to shareholders while maintaining a conservative leverage ratio. The event-driven investment thesis was quite attractive. Talen traded at a discounted valuation to more established nuclear peers such as Constellation Energy (NASDAQ:CEG) and had a number of catalysts to unlock value for investors. I learned about the situation in February 2024 and made our initial investment at ~$69 per share. Approximately two-thirds of Talen's revenue is generated from its massive dual unit nuclear power plant. The more I learned about the prospects for nuclear power, the more bullish I became. There are strong trends in both energy supply and demand that support the fundamentals for existing nuclear power producers. Beginning with the supply argument: nuclear power plants are a highly valuable and scarce asset. Nuclear power plants are valuable because nuclear is the only source of carbon-free energy that is reliable enough to be considered "base load energy". Other sources of reliable energy are either dirty (fossil fuels), are not yet reliable (solar, wind), or are not abundant (hydro, geothermal). The US has agreed to phase out coal and other dirty power sources over time. Coal used to account for one-third of power generation but now accounts for roughly 10%. This supply gap has largely been filled by natural gas and crude oil. Nuclear was previously vilified as a dangerous source of electricity; however, politicians on both sides have become much more pro-nuclear in recent years as an increasingly attractive alternative. This has led to a number of nuclear plant extensions, talks of restarts, and new tax incentives. Nuclear power is scarce because it is extremely costly and timely to build. Almost all US nuclear reactors were built between 1967 and 1990. Regulatory costs skyrocketed after the Three Mile Island accident in 1979. The Vogtle electric plant in Georgia was the only new nuclear plant added in the last 30 years. Vogtle took 15 years and $30 billion to build (after coming in over 2x budget). Nuclear power plants just aren't economically viable relative to the cost of building new natural gas plants. However, this makes existing plants, like the one Talen owns, more valuable. Moving on to the demand argument: electricity demand growth is accelerating as the US adopts electric cars and builds more data centers. Electricity demand has historically grown in-line with population growth; however, recent technology shifts have accelerated the demand on the grid. Artificial intelligence applications are more compute intensive and therefore require more electricity. For example, ChatGPT uses as much as 30x more electricity per query than Google search. Research from the Boston Consulting Group projects data center energy use in the US will 3x from 130 terawatt hours in 2022 to 390 terawatt hours by 2030. Regional power regulators have sharply increased their demand growth forecasts. PJM, the regulator for 13 states in the Northeast and Midwest, projected 5 year demand growth of 2.6% in 2022 and nearly doubled its forecast one year later to 4.7% growth. The strong demand growth for electricity bodes well for Talen's non-nuclear plants as well. All electric utilities stand to benefit from greater utilization and higher electricity prices in the coming years. The Growth Portfolio has fundamentally different underwriting criteria than the Event-Driven Portfolio. For Event-Driven, I am primarily looking for hard catalysts to unlock value combined with strong downside protection. On the other hand, the Growth Portfolio invests in high-quality assets with long-term earnings growth potential. The Venn diagram typically doesn't overlap because the types of companies with transformational catalysts are usually challenged or under-managed which is why they need to be restructured or sold. Talen is an exception for several reasons. First, there is a wide moat around the business simply because a new nuclear power plant of Susquehanna's scale cannot be replicated at a cost anywhere near the current enterprise value of Talen. Furthermore, nuclear power plants operate with high margins and limited operational complexity. These are the attributes of a very high-quality asset. Second, we view the management team as high quality. Since we have invested, Talen has under-promised and over-delivered on every key aspect of the story. The company has reduced leverage, monetized virtually all of its non-core assets, repurchased a substantial portion of the stock, and successfully uplisted to the Nasdaq exchange. Operational results have also been excellent. It is rare to find an asset as well-run as Talen appears to be. Third, we have identified a tangible growth catalyst playing out over the next 10 years. Talen agreed to sell a data center co-located with the nuclear plant to Amazon Web Services for $650 million in March 2024. Over the next 10 years, AWS has contracted to purchase as much as 1 gigawatt of power per year for a price nearly double the rate of the wholesale power price. This contract alone has the potential to generate an incremental $255 million in EBITDA for Talen per year by 2034 vs. Talen's current $700 million EBITDA run rate. Amazon is willing to pay a premium to source reliable carbon-free energy for a large data center and it will also benefit from certain tax credits associated with the project. Finally, we see additional opportunities for per share value growth above and beyond the AWS deal. I am bullish on the supply/demand story for electricity playing out in the coming years. In addition, Talen believes there are additional opportunities to co-locate data centers next to its other power plants. Talen's capital allocation strategy of creatively monetizing existing assets while returning capital to shareholders should continue to work. After gaining more confidence in Talen's execution and long-term growth potential, I added Talen to the Growth Portfolio at ~$99 per share in April.

BSD Analysis:
The manager presents a compelling turnaround story centered on Talen Energy's emergence from bankruptcy as a cleaner, more focused nuclear power generator. The thesis rests on three key pillars: the scarcity value of existing nuclear assets in a carbon-conscious world, accelerating electricity demand driven by AI and data centers, and a transformative AWS partnership that could boost EBITDA by 36% over the next decade. The bankruptcy restructuring eliminated problematic hedging exposures and debt burdens while new tax credits from the Inflation Reduction Act provide downside protection for nuclear generation. Management has executed flawlessly on asset monetization, debt reduction, and the Nasdaq uplisting, demonstrating operational competence. The AWS deal represents a paradigm shift where tech giants pay premium rates for reliable, carbon-free power co-located with data centers. With electricity demand forecasts doubling and nuclear being the only scalable baseload clean energy source, Talen appears positioned to benefit from both supply scarcity and demand acceleration. The manager's dual investment across event-driven and growth strategies reflects confidence in both near-term catalysts and long-term structural advantages.

Pitch Summary:
Talen Energy is an unregulated power generator whose primary asset is a 2.2 gigawatt nuclear power plant located outside of Berwick, PA. The Company also owns an additional 8.4 gigawatts of mostly natural gas powered plants in the Mid-Atlantic region. The investment story for Talen begins with the Company's 2022 bankruptcy. Talen was a debt-strapped private-equity backed company with a sprawling power generation portfolio. In addition to managing a complex capital structure, the company maintained a hedging strategy to protect itself from a sudden drop in energy prices. Ironically, Talen wasn't protected from a sudden rise in energy prices. When the war in Ukraine broke out in Spring 2022, natural gas prices soared. Talen was short natural gas futures, as a hedge, and was stuck with a large short-term financial loss requiring it to post collateral at the exchange. Talen was unable to post collateral and instead filed for bankruptcy protection. Post-bankruptcy restructuring situations tend to be good hunting grounds for investments because you can often find otherwise good companies married to bad balance sheets. After shedding liabilities that made a company insolvent, opportunistic investors are often able to buy restructured assets at attractive prices. To take this idea further, I believe Talen is a better business today than it was pre-bankruptcy. The bankruptcy process allowed Talen to clean up its balance sheet by converting debt liabilities to equity capital. Talen also restructured its hedging program so that it no longer would need to provide collateral in the case of energy market volatility. In a stroke of luck, Talen no longer needs to hedge its nuclear power generation at all because the Inflation Reduction Act introduced a tax credit scheme that protects nuclear power plants when electricity prices fall. The combination of the new hedge program and the nuclear power tax credits has fundamentally transformed the asset/liability profile of the company. Talen's new management team resolved a pragmatic strategy for Talen 2.0. First, divest non-core assets including the Texas energy portfolio, a data center shell, and a bitcoin mining project. Second, regain a mainstream equity listing by uplisting from the illiquid over-the-counter market to the Nasdaq. Finally, return excess capital to shareholders while maintaining a conservative leverage ratio. The event-driven investment thesis was quite attractive. Talen traded at a discounted valuation to more established nuclear peers such as Constellation Energy (NASDAQ:CEG) and had a number of catalysts to unlock value for investors. I learned about the situation in February 2024 and made our initial investment at ~$69 per share. Approximately two-thirds of Talen's revenue is generated from its massive dual unit nuclear power plant. The more I learned about the prospects for nuclear power, the more bullish I became. There are strong trends in both energy supply and demand that support the fundamentals for existing nuclear power producers. Beginning with the supply argument: nuclear power plants are a highly valuable and scarce asset. Nuclear power plants are valuable because nuclear is the only source of carbon-free energy that is reliable enough to be considered "base load energy". Other sources of reliable energy are either dirty (fossil fuels), are not yet reliable (solar, wind), or are not abundant (hydro, geothermal). The US has agreed to phase out coal and other dirty power sources over time. Coal used to account for one-third of power generation but now accounts for roughly 10%. This supply gap has largely been filled by natural gas and crude oil. Nuclear was previously vilified as a dangerous source of electricity; however, politicians on both sides have become much more pro-nuclear in recent years as an increasingly attractive alternative. This has led to a number of nuclear plant extensions, talks of restarts, and new tax incentives. Nuclear power is scarce because it is extremely costly and timely to build. Almost all US nuclear reactors were built between 1967 and 1990. Regulatory costs skyrocketed after the Three Mile Island accident in 1979. The Vogtle electric plant in Georgia was the only new nuclear plant added in the last 30 years. Vogtle took 15 years and $30 billion to build (after coming in over 2x budget). Nuclear power plants just aren't economically viable relative to the cost of building new natural gas plants. However, this makes existing plants, like the one Talen owns, more valuable. Moving on to the demand argument: electricity demand growth is accelerating as the US adopts electric cars and builds more data centers. Electricity demand has historically grown in-line with population growth; however, recent technology shifts have accelerated the demand on the grid. Artificial intelligence applications are more compute intensive and therefore require more electricity. For example, ChatGPT uses as much as 30x more electricity per query than Google search. Research from the Boston Consulting Group projects data center energy use in the US will 3x from 130 terawatt hours in 2022 to 390 terawatt hours by 2030. Regional power regulators have sharply increased their demand growth forecasts. PJM, the regulator for 13 states in the Northeast and Midwest, projected 5 year demand growth of 2.6% in 2022 and nearly doubled its forecast one year later to 4.7% growth. The strong demand growth for electricity bodes well for Talen's non-nuclear plants as well. All electric utilities stand to benefit from greater utilization and higher electricity prices in the coming years. First, there is a wide moat around the business simply because a new nuclear power plant of Susquehanna's scale cannot be replicated at a cost anywhere near the current enterprise value of Talen. Furthermore, nuclear power plants operate with high margins and limited operational complexity. These are the attributes of a very high-quality asset. Second, we view the management team as high quality. Since we have invested, Talen has under-promised and over-delivered on every key aspect of the story. The company has reduced leverage, monetized virtually all of its non-core assets, repurchased a substantial portion of the stock, and successfully uplisted to the Nasdaq exchange. Operational results have also been excellent. It is rare to find an asset as well-run as Talen appears to be. Third, we have identified a tangible growth catalyst playing out over the next 10 years. Talen agreed to sell a data center co-located with the nuclear plant to Amazon Web Services for $650 million in March 2024. Over the next 10 years, AWS has contracted to purchase as much as 1 gigawatt of power per year for a price nearly double the rate of the wholesale power price. This contract alone has the potential to generate an incremental $255 million in EBITDA for Talen per year by 2034 vs. Talen's current $700 million EBITDA run rate. Amazon is willing to pay a premium to source reliable carbon-free energy for a large data center and it will also benefit from certain tax credits associated with the project. Finally, we see additional opportunities for per share value growth above and beyond the AWS deal. I am bullish on the supply/demand story for electricity playing out in the coming years. In addition, Talen believes there are additional opportunities to co-locate data centers next to its other power plants. Talen's capital allocation strategy of creatively monetizing existing assets while returning capital to shareholders should continue to work. After gaining more confidence in Talen's execution and long-term growth potential, I added Talen to the Growth Portfolio at ~$99 per share in April.

BSD Analysis:
The manager presents a compelling post-bankruptcy restructuring thesis for Talen Energy, emphasizing the company's transformation from a debt-laden entity to a clean balance sheet nuclear power generator. The investment case centers on nuclear power's scarcity value as the only reliable carbon-free baseload energy source, positioned to benefit from accelerating electricity demand driven by AI data centers and electric vehicle adoption. The manager highlights Talen's strategic AWS partnership, which provides a 10-year power purchase agreement at premium pricing that could nearly double current EBITDA by 2034. The thesis is strengthened by management's successful execution of asset monetization, debt reduction, and capital returns since emerging from bankruptcy. Nuclear power's regulatory barriers to new construction create a protective moat around existing assets like Talen's 2.2 GW Susquehanna plant. The manager's dual investment approach across both event-driven and growth portfolios reflects confidence in both near-term catalysts and long-term structural demand trends. With electricity demand forecasts rising sharply and limited nuclear capacity additions possible, Talen appears well-positioned to capitalize on the energy transition's baseload power requirements.

Pitch Summary:
VusionGroup reaffirmed its 2024 target of achieving €1 billion in sales and improving its adjusted EBITDA margin by 50-100 basis points. Additionally, the company implied room for an upward revision to the 2025 guidance as Walmart accelerates its ESL implementation. We continue to see strong revenue upside and margin expansion opportunities, as the company hinted at onboarding another large U.S. client by year-end and broadened its VAS offering. Although competitors like Hanshow are aggressively building their U.S. operations, we believe VU still has an edge in U.S. penetration due to its early mover advantage and the ongoing geopolitical tensions between China and the U.S., which may intensify if Trump takes office. Despite initially categorizing VusionGroup as a special situation investment, we now view it more as a quality compounder that can outgrow the economic cycle and benefit from inflation as retailers look to hedge inflationary pressures. We will continue to monitor the development as we head to Taiwan to conduct further due diligence on the company's upstream suppliers.

BSD Analysis:
The manager has evolved their view of VusionGroup from a special situation to a quality compounder, highlighting the company's strong execution toward €1 billion sales target and margin expansion of 50-100 basis points. The investment case is strengthened by Walmart's accelerated ESL implementation and potential upward revision to 2025 guidance, with another large US client expected by year-end. VusionGroup maintains competitive advantages through early mover positioning in the US market and benefits from US-China geopolitical tensions that may disadvantage Chinese competitor Hanshow, particularly under a potential Trump administration. The manager sees the business as inflation-resilient, as retailers use ESL technology to hedge inflationary pressures through dynamic pricing capabilities. The expansion of value-added services (VAS) offerings provides additional revenue diversification and margin enhancement opportunities. The manager's planned due diligence trip to Taiwan to assess upstream suppliers demonstrates thorough fundamental research approach to validate the investment thesis.