Investment Pitches

Pitch Summary:
One of the best examples of this dynamic is SAP, a company several of our managers own. SAP is one of the leading global providers of enterprise resource planning (ERP) software and is also working to incorporate AI into its own offerings. Importantly, the company's fundamentals remain strong. Revenues and earnings are expected to grow at an accelerating pace over the next several years, with consensus estimates pointing to continued double-digit earnings growth. That is a very attractive earnings profile! With the stock today at $176, that is a PE of 21x 2026 and only 11.3x 2030 earnings estimates. The average PE over the last 10 years is 31x. Nevertheless, the stock price has declined by 28% YTD and is down 44% from its July 2025 high. This is not due to weakening near-term earnings, but rather a reassessment of the durability of the business. The market is increasingly pricing in potential AI-driven erosion of SAP's franchise and terminal value. As a result, earnings are rising while the stock is falling — a reminder that markets are forward-looking discounting mechanisms. At times, investors simply do not believe the future will look as strong as the past, regardless of current earnings estimates. Currently, it is hard for the SAP bulls to combat the AI believer's assertions. Only time will tell if AI will become another tool, assimilated in the same way the internet was, creating some of the greatest businesses ever – think Google and Amazon, or if in time AI will take over all aspects of what SAP (and many companies) currently does for its customers and slowly (but quickly when it comes) put them out of business. As we sit here today, the AI bulls appear to be winning, but several of our managers believe this is creating attractive opportunities for new investments.

BSD Analysis:
TIFF's managers present a compelling contrarian case for SAP amid AI-driven market pessimism. The fund highlights SAP's robust fundamentals with consensus estimates projecting accelerating revenue growth from $41.6B in 2025 to $72.6B by 2030, alongside double-digit EPS growth reaching $15.57 by 2030. At current levels of $176, SAP trades at attractive valuations of 21x 2026 earnings and just 11.3x 2030 estimates, well below its 10-year average PE of 31x. The 44% decline from July 2025 highs reflects market fears about AI disruption rather than fundamental deterioration. TIFF argues the market is overly pessimistic about AI's threat to enterprise software, believing SAP can successfully integrate AI capabilities while maintaining its ERP franchise. The managers view the current dislocation as creating an attractive entry point, betting that AI will enhance rather than replace SAP's core offerings. This represents a classic value opportunity where strong fundamentals meet temporary market sentiment challenges.

Pitch Summary:
We aren't technology neophytes; we believe AI is for real and is changing the way many of us work, and there will be winners and losers. However, we do believe the market has been too eager to declare victory and defeat. Where there is real threat of change, we lower our estimate of value by reflecting a higher risk of disruption. In the case of large, deeply embedded enterprise software companies such as SAP, we think the market has skewed too negative on the risks introduced by AI, when in fact, there is a real possibility that AI is additive.

BSD Analysis:
Harris Oakmark presents a contrarian bullish view on SAP, arguing that the market has overreacted negatively to AI disruption risks for large enterprise software companies. The manager believes SAP's deeply embedded position in enterprise systems provides defensive characteristics that the market is undervaluing. Rather than viewing AI as purely disruptive, the fund sees potential for AI to be additive to SAP's existing business model. This represents a classic value investing approach of buying when sentiment is overly pessimistic. The thesis relies on SAP's entrenched market position and the difficulty of displacing established enterprise software providers. The manager's confidence stems from their belief that the market's short-term AI fears are creating a buying opportunity in a fundamentally sound business. This contrarian positioning aligns with their broader investment philosophy of going against crowd sentiment when valuations become attractive.

Pitch Summary:
IMCD is a leading global distributor of specialty chemicals and ingredients, operating across more than 60 countries. The business benefits from a resilient foundation, with approximately 55% of sales – and an even greater share of profits – derived from life science end markets, including pharmaceuticals, beauty and personal care, food and nutrition, and home care. Specialty chemical distributors like IMCD also bring meaningful value-added capabilities to both suppliers and customers, fostering deep, sticky relationships that support attractive margins and strong returns on invested capital. While the industry enjoyed a robust period of growth in the years immediately following COVID, more recent results have been weighed down by soft end-market demand and customer destocking. We view this slowdown as cyclical rather than structural, and expect the business to return to more consistent, above-average organic growth as conditions normalize. The long-term drivers remain firmly intact: rising consumption of specialty chemicals, ongoing product innovation, and increasing outsourcing to distributors. Larger players with meaningful scale advantages are also well positioned to reinvest in their offerings and capture share from smaller competitors. This dynamic should further enhance IMCD's organic growth profile coupled with their consistent and disciplined approach to bolt-on M&A provides an additional avenue for compounding growth. Taken together, we believe IMCD has a long and visible growth runway, with the potential to compound earnings per share at a double-digit rate over the coming years. At a mid-teens forward earnings multiple, the shares are trading meaningfully below the company's long-term historical valuation averages. We believe that the combination of strong earnings growth and multiple expansion sets up a compelling return profile for investors over the next several years.

BSD Analysis:
FMI presents a compelling bull case for IMCD, highlighting the company's leadership position in global specialty chemicals distribution across 60+ countries. The manager emphasizes the defensive nature of the business, with 55% of sales from resilient life science end markets including pharmaceuticals, beauty, food, and home care. IMCD's value-added capabilities create sticky customer relationships supporting attractive margins and strong ROIC. While acknowledging recent cyclical headwinds from soft demand and destocking, FMI views these as temporary rather than structural issues. The firm expects normalization to drive above-average organic growth, supported by long-term tailwinds including rising specialty chemical consumption, product innovation, and increased outsourcing. IMCD's scale advantages position it to gain market share from smaller competitors, while disciplined M&A provides additional growth avenues. Trading at a mid-teens forward P/E below historical averages, FMI sees potential for double-digit EPS growth and multiple expansion.

Pitch Summary:
Booking is the largest online travel agency in the world. This is a network effect business model, where Booking acts as an aggregator of supply (independent hotels) on one side and demand (leisure travelers) on the other. This aggregation of fragmented supply and demand allows them to charge a healthy commission when a user books a room, which in turn allows them to outspend all other players on customer acquisition while still earning good returns. Booking is best-in-class at digital marketing, earning the highest returns on acquired traffic of all the online travel agencies. Booking has tremendous scale and an asset-light business model, generating very high returns on capital and free cash flow. Most of their revenue is generated from independent hotels that depend on Booking not just to deliver incremental guests, but also for cross-currency payments, merchandising, and customer service. Recently, shares have come under pressure over fears that AI will displace online travel agencies. We believe these concerns are overblown. AI is unlikely to recreate Booking's global network of hotels given the extreme fragmentation of supply and Booking's on-the-ground sales force. Booking's payments and customer service capabilities are also difficult to replicate, further protecting the business against new entrants. In our view, new AI tools are more likely to integrate Booking's existing inventory and capabilities into their models, rather than recreating these features themselves. If travel research shifts from traditional search to LLMs, Booking's historical expertise in digital marketing makes them well-positioned to win this traffic. Furthermore, AI should boost Booking's margins through efficiencies in customer service and marketing. At a mid-teens forward earnings multiple, we believe Booking shares are attractive on both a relative and absolute basis.

BSD Analysis:
FMI presents a strong bull thesis for Booking Holdings, emphasizing the company's dominant position as the world's largest online travel agency with powerful network effects. The manager highlights Booking's ability to aggregate fragmented hotel supply and traveler demand, enabling superior customer acquisition economics and best-in-class digital marketing returns. The asset-light model generates exceptional returns on capital and free cash flow, while the platform provides essential services beyond booking including payments, merchandising, and customer service. FMI dismisses AI disruption concerns, arguing that recreating Booking's global hotel network and capabilities would be extremely difficult given supply fragmentation and the company's on-ground sales presence. Instead, the firm expects AI integration to enhance Booking's existing platform and improve margins through operational efficiencies. Trading at a mid-teens forward P/E, FMI views the valuation as attractive given the business quality and competitive moat.

Pitch Summary:
Huron is a leading consulting firm serving hospitals, health systems, and higher education institutions. Decades of successful engagements have earned the company deeply entrenched relationships within its core end markets. While these industries are not typically associated with rapid growth, Huron's value proposition is squarely aimed at helping organizations navigate an unrelenting stream of business model, regulatory, and technology challenges – pressures that have only intensified. Because these institutions tend to operate with lean internal resources, they consistently rely on outside expertise to work through complex issues, creating a durable and recurring source of demand for Huron's services. Management sees a substantial opportunity to deepen penetration within the existing customer base over the coming years, and the company's strategy of broadening its capabilities – both organically and through tuck-in acquisitions – should drive further wallet share gains. In aggregate, we believe Huron can grow its top line in the low double digits annually, comprised of mid-to-upper single-digit organic growth supplemented by a modest contribution from M&A. Combined with a commitment to margin expansion and a consistent track record of share repurchases, we see a credible path to low-to-mid teens earnings per share growth on an annualized basis. Concerns about AI disrupting the consulting model have pressured Huron's valuation and weighed on the shares. We believe this risk is largely misunderstood. Huron views AI as a revenue opportunity – one it is already pursuing by helping clients develop and implement AI roadmaps – while simultaneously leveraging the technology internally to reduce its own costs. Both efforts are underway. Further reinforcing the company's resilience, management noted that ~ 2/3rds of 2025 revenue was outcome-based, fixed-fee, or recurring in nature, and that its highly skilled consultants delivering mission-critical work for institutions facing disruption are considerably more insulated than other consulting models. At a low-teens forward earnings multiple, we believe the shares offer compelling value relative to the quality and durability of the underlying business.

BSD Analysis:
FMI presents a compelling bull case for Huron Consulting Group, emphasizing the company's entrenched market position in healthcare and higher education consulting. The manager highlights Huron's defensive characteristics, noting that client institutions operate with lean resources and consistently require external expertise for complex regulatory and technology challenges. FMI projects low double-digit revenue growth driven by mid-to-upper single-digit organic expansion plus M&A contributions, translating to low-to-mid teens EPS growth through margin expansion and share buybacks. The firm views AI disruption concerns as overblown, arguing that Huron is positioned to benefit from AI as both a revenue opportunity and cost reduction tool. With approximately two-thirds of 2025 revenue being outcome-based, fixed-fee, or recurring, the business model appears resilient. Trading at a low-teens forward P/E multiple, FMI sees attractive valuation relative to business quality and durability.

Pitch Summary:
IMCD is a leading global distributor of specialty chemicals and ingredients, operating across more than 60 countries. The business benefits from a resilient foundation, with approximately 55% of sales – and an even greater share of profits – derived from life science end markets, including pharmaceuticals, beauty and personal care, food and nutrition, and home care. Specialty chemical distributors like IMCD also bring meaningful value-added capabilities to both suppliers and customers, fostering deep, sticky relationships that support attractive margins and strong returns on invested capital. While the industry enjoyed a robust period of growth in the years immediately following COVID, more recent results have been weighed down by soft end-market demand and customer destocking. We view this slowdown as cyclical rather than structural, and expect the business to return to more consistent, above-average organic growth as conditions normalize. The long-term drivers remain firmly intact: rising consumption of specialty chemicals, ongoing product innovation, and increasing outsourcing to distributors. Larger players with meaningful scale advantages are also well positioned to reinvest in their offerings and capture share from smaller competitors. This dynamic should further enhance IMCD's organic growth profile coupled with their consistent and disciplined approach to bolt-on M&A provides an additional avenue for compounding growth. Taken together, we believe IMCD has a long and visible growth runway, with the potential to compound earnings per share at a double-digit rate over the coming years. At a mid-teens forward earnings multiple, the shares are trading meaningfully below the company's long-term historical valuation averages. We believe that the combination of strong earnings growth and multiple expansion sets up a compelling return profile for investors over the next several years.

BSD Analysis:
FMI presents a compelling bull case for IMCD, highlighting the company's leadership position in specialty chemical distribution across 60+ countries with strong exposure to defensive life sciences markets. The manager emphasizes IMCD's value-added capabilities that create sticky customer relationships and support attractive margins and returns on capital. FMI views the current weakness as cyclical destocking rather than structural decline, expecting a return to above-average organic growth as conditions normalize. The thesis centers on intact long-term drivers including rising specialty chemical consumption, product innovation, and increasing outsourcing trends. The manager believes IMCD's scale advantages position it to gain market share from smaller competitors while disciplined M&A provides additional growth avenues. FMI targets double-digit EPS compounding with shares trading below historical valuation averages, setting up potential multiple expansion alongside earnings growth.

Pitch Summary:
Booking is the largest online travel agency in the world. This is a network effect business model, where Booking acts as an aggregator of supply (independent hotels) on one side and demand (leisure travelers) on the other. This aggregation of fragmented supply and demand allows them to charge a healthy commission when a user books a room, which in turn allows them to outspend all other players on customer acquisition while still earning good returns. Booking is best-in-class at digital marketing, earning the highest returns on acquired traffic of all the online travel agencies. Booking has tremendous scale and an asset-light business model, generating very high returns on capital and free cash flow. Most of their revenue is generated from independent hotels that depend on Booking not just to deliver incremental guests, but also for cross-currency payments, merchandising, and customer service. Recently, shares have come under pressure over fears that AI will displace online travel agencies. We believe these concerns are overblown. AI is unlikely to recreate Booking's global network of hotels given the extreme fragmentation of supply and Booking's on-the-ground sales force. Booking's payments and customer service capabilities are also difficult to replicate, further protecting the business against new entrants. In our view, new AI tools are more likely to integrate Booking's existing inventory and capabilities into their models, rather than recreating these features themselves. If travel research shifts from traditional search to LLMs, Booking's historical expertise in digital marketing makes them well-positioned to win this traffic. Furthermore, AI should boost Booking's margins through efficiencies in customer service and marketing. At a mid-teens forward earnings multiple, we believe Booking shares are attractive on both a relative and absolute basis.

BSD Analysis:
FMI presents a strong bull case for Booking Holdings, emphasizing the company's dominant position as the world's largest online travel agency with powerful network effects. The manager highlights Booking's superior digital marketing capabilities and asset-light model that generates exceptional returns on capital and free cash flow. The thesis focuses on Booking's entrenched relationships with independent hotels, who rely on the platform for multiple services beyond bookings, including payments and customer service. FMI dismisses AI disruption concerns, arguing that Booking's global hotel network and on-ground sales force create insurmountable barriers for new entrants. The manager believes AI will actually benefit Booking through operational efficiencies and that the company's digital marketing expertise positions it well for evolving search behaviors. At a mid-teens forward P/E, FMI sees attractive valuation relative to the business quality and competitive moat.

Pitch Summary:
Huron is a leading consulting firm serving hospitals, health systems, and higher education institutions. Decades of successful engagements have earned the company deeply entrenched relationships within its core end markets. While these industries are not typically associated with rapid growth, Huron's value proposition is squarely aimed at helping organizations navigate an unrelenting stream of business model, regulatory, and technology challenges – pressures that have only intensified. Because these institutions tend to operate with lean internal resources, they consistently rely on outside expertise to work through complex issues, creating a durable and recurring source of demand for Huron's services. Management sees a substantial opportunity to deepen penetration within the existing customer base over the coming years, and the company's strategy of broadening its capabilities – both organically and through tuck-in acquisitions – should drive further wallet share gains. In aggregate, we believe Huron can grow its top line in the low double digits annually, comprised of mid-to-upper single-digit organic growth supplemented by a modest contribution from M&A. Combined with a commitment to margin expansion and a consistent track record of share repurchases, we see a credible path to low-to-mid teens earnings per share growth on an annualized basis. Concerns about AI disrupting the consulting model have pressured Huron's valuation and weighed on the shares. We believe this risk is largely misunderstood. Huron views AI as a revenue opportunity – one it is already pursuing by helping clients develop and implement AI roadmaps – while simultaneously leveraging the technology internally to reduce its own costs. Both efforts are underway. Further reinforcing the company's resilience, management noted that ~ 2/3rds of 2025 revenue was outcome-based, fixed-fee, or recurring in nature, and that its highly skilled consultants delivering mission-critical work for institutions facing disruption are considerably more insulated than other consulting models. At a low-teens forward earnings multiple, we believe the shares offer compelling value relative to the quality and durability of the underlying business.

BSD Analysis:
FMI presents a compelling bull case for Huron Consulting Group, emphasizing the firm's entrenched relationships in healthcare and higher education sectors. The manager highlights Huron's defensive positioning in industries that consistently require external expertise due to lean internal resources and ongoing regulatory/technology challenges. The thesis centers on sustainable double-digit revenue growth through organic expansion and strategic acquisitions, with management targeting low-to-mid teens EPS growth through margin expansion and share repurchases. FMI views AI disruption concerns as overblown, noting that Huron is actively monetizing AI as a revenue opportunity while using it internally for cost reduction. The manager emphasizes that two-thirds of 2025 revenue is recurring or outcome-based, providing revenue stability. At a low-teens forward P/E multiple, FMI sees significant valuation upside relative to the business quality and growth prospects.

Pitch Summary:
IMCD is a leading global distributor of specialty chemicals and ingredients, operating across more than 60 countries. The business benefits from a resilient foundation, with approximately 55% of sales – and an even greater share of profits – derived from life science end markets, including pharmaceuticals, beauty and personal care, food and nutrition, and home care. Specialty chemical distributors like IMCD also bring meaningful value-added capabilities to both suppliers and customers, fostering deep, sticky relationships that support attractive margins and strong returns on invested capital. While the industry enjoyed a robust period of growth in the years immediately following COVID, more recent results have been weighed down by soft end-market demand and customer destocking. We view this slowdown as cyclical rather than structural, and expect the business to return to more consistent, above-average organic growth as conditions normalize. The long-term drivers remain firmly intact: rising consumption of specialty chemicals, ongoing product innovation, and increasing outsourcing to distributors. Larger players with meaningful scale advantages are also well positioned to reinvest in their offerings and capture share from smaller competitors. This dynamic should further enhance IMCD's organic growth profile coupled with their consistent and disciplined approach to bolt-on M&A provides an additional avenue for compounding growth. Taken together, we believe IMCD has a long and visible growth runway, with the potential to compound earnings per share at a double-digit rate over the coming years. At a mid-teens forward earnings multiple, the shares are trading meaningfully below the company's long-term historical valuation averages. We believe that the combination of strong earnings growth and multiple expansion sets up a compelling return profile for investors over the next several years.

BSD Analysis:
FMI presents a compelling bull case for IMCD, highlighting the company's leading position in specialty chemicals distribution across 60+ countries with defensive life sciences exposure comprising 55% of sales. The manager emphasizes IMCD's value-added capabilities that create sticky supplier and customer relationships, supporting attractive margins and strong ROIC. FMI views the recent slowdown from soft demand and destocking as cyclical rather than structural, expecting normalization to drive above-average organic growth. The investment thesis centers on intact long-term drivers including rising specialty chemical consumption, product innovation, and increased outsourcing to distributors. The manager highlights IMCD's scale advantages for market share gains and disciplined M&A approach as additional growth drivers. FMI projects double-digit EPS compounding potential with the stock trading at mid-teens forward P/E, meaningfully below historical averages, setting up attractive returns through both earnings growth and multiple expansion.

Pitch Summary:
Booking is the largest online travel agency in the world. This is a network effect business model, where Booking acts as an aggregator of supply (independent hotels) on one side and demand (leisure travelers) on the other. This aggregation of fragmented supply and demand allows them to charge a healthy commission when a user books a room, which in turn allows them to outspend all other players on customer acquisition while still earning good returns. Booking is best-in-class at digital marketing, earning the highest returns on acquired traffic of all the online travel agencies. Booking has tremendous scale and an asset-light business model, generating very high returns on capital and free cash flow. Most of their revenue is generated from independent hotels that depend on Booking not just to deliver incremental guests, but also for cross-currency payments, merchandising, and customer service. Recently, shares have come under pressure over fears that AI will displace online travel agencies. We believe these concerns are overblown. AI is unlikely to recreate Booking's global network of hotels given the extreme fragmentation of supply and Booking's on-the-ground sales force. Booking's payments and customer service capabilities are also difficult to replicate, further protecting the business against new entrants. In our view, new AI tools are more likely to integrate Booking's existing inventory and capabilities into their models, rather than recreating these features themselves. If travel research shifts from traditional search to LLMs, Booking's historical expertise in digital marketing makes them well-positioned to win this traffic. Furthermore, AI should boost Booking's margins through efficiencies in customer service and marketing. At a mid-teens forward earnings multiple, we believe Booking shares are attractive on both a relative and absolute basis.

BSD Analysis:
FMI presents a strong bull case for Booking Holdings, emphasizing the company's dominant position as the world's largest online travel agency with powerful network effects. The manager highlights Booking's two-sided marketplace model that aggregates fragmented hotel supply with traveler demand, enabling healthy commission rates and superior digital marketing ROI versus competitors. FMI emphasizes the asset-light, high-return business model generating strong free cash flow, with revenue diversification beyond room bookings into payments, merchandising, and customer service. The investment thesis directly addresses AI disruption fears, arguing that Booking's global hotel network, on-ground sales force, and payment/service capabilities create difficult-to-replicate moats. The manager views AI as more likely to integrate with rather than replace Booking's platform, while potentially boosting margins through operational efficiencies. FMI sees the mid-teens forward P/E as attractive given the business quality and defensive characteristics.

Pitch Summary:
Huron is a leading consulting firm serving hospitals, health systems, and higher education institutions. Decades of successful engagements have earned the company deeply entrenched relationships within its core end markets. While these industries are not typically associated with rapid growth, Huron's value proposition is squarely aimed at helping organizations navigate an unrelenting stream of business model, regulatory, and technology challenges – pressures that have only intensified. Because these institutions tend to operate with lean internal resources, they consistently rely on outside expertise to work through complex issues, creating a durable and recurring source of demand for Huron's services. Management sees a substantial opportunity to deepen penetration within the existing customer base over the coming years, and the company's strategy of broadening its capabilities – both organically and through tuck-in acquisitions – should drive further wallet share gains. In aggregate, we believe Huron can grow its top line in the low double digits annually, comprised of mid-to-upper single-digit organic growth supplemented by a modest contribution from M&A. Combined with a commitment to margin expansion and a consistent track record of share repurchases, we see a credible path to low-to-mid teens earnings per share growth on an annualized basis. Concerns about AI disrupting the consulting model have pressured Huron's valuation and weighed on the shares. We believe this risk is largely misunderstood. Huron views AI as a revenue opportunity – one it is already pursuing by helping clients develop and implement AI roadmaps – while simultaneously leveraging the technology internally to reduce its own costs. Both efforts are underway. Further reinforcing the company's resilience, management noted that ~ 2/3rds of 2025 revenue was outcome-based, fixed-fee, or recurring in nature, and that its highly skilled consultants delivering mission-critical work for institutions facing disruption are considerably more insulated than other consulting models. At a low-teens forward earnings multiple, we believe the shares offer compelling value relative to the quality and durability of the underlying business.

BSD Analysis:
FMI presents a compelling bull case for Huron Consulting Group, emphasizing the firm's entrenched relationships in healthcare and higher education markets. The manager highlights Huron's defensive positioning, noting that these institutions consistently require external expertise due to lean internal resources and ongoing regulatory/technology challenges. FMI projects low double-digit revenue growth driven by mid-to-upper single-digit organic growth plus M&A contributions, translating to low-to-mid teens EPS growth through margin expansion and share repurchases. The investment thesis directly addresses AI disruption concerns, positioning Huron as benefiting from AI both as a revenue opportunity (helping clients implement AI strategies) and cost reduction tool. The manager emphasizes the recurring nature of two-thirds of 2025 revenue and the mission-critical nature of Huron's services as defensive moats. At a low-teens forward P/E multiple, FMI views the valuation as attractive relative to business quality and durability.

Pitch Summary:
IMCD is a leading global distributor of specialty chemicals and ingredients, operating across more than 60 countries. The business benefits from a resilient foundation, with approximately 55% of sales – and an even greater share of profits – derived from life science end markets, including pharmaceuticals, beauty and personal care, food and nutrition, and home care. Specialty chemical distributors like IMCD also bring meaningful value-added capabilities to both suppliers and customers, fostering deep, sticky relationships that support attractive margins and strong returns on invested capital. While the industry enjoyed a robust period of growth in the years immediately following COVID, more recent results have been weighed down by soft end-market demand and customer destocking. We view this slowdown as cyclical rather than structural, and expect the business to return to more consistent, above-average organic growth as conditions normalize. The long-term drivers remain firmly intact: rising consumption of specialty chemicals, ongoing product innovation, and increasing outsourcing to distributors. Larger players with meaningful scale advantages are also well positioned to reinvest in their offerings and capture share from smaller competitors. This dynamic should further enhance IMCD's organic growth profile coupled with their consistent and disciplined approach to bolt-on M&A provides an additional avenue for compounding growth. Taken together, we believe IMCD has a long and visible growth runway, with the potential to compound earnings per share at a double-digit rate over the coming years. At a mid-teens forward earnings multiple, the shares are trading meaningfully below the company's long-term historical valuation averages. We believe that the combination of strong earnings growth and multiple expansion sets up a compelling return profile for investors over the next several years.

BSD Analysis:
FMI presents a compelling bull case for IMCD, highlighting the company's leadership position in specialty chemical distribution across 60+ countries with defensive life sciences exposure comprising 55% of sales. The manager emphasizes IMCD's value-added capabilities that create sticky customer relationships, supporting attractive margins and strong ROIC. FMI views current weakness as cyclical destocking rather than structural decline, expecting normalization to drive above-average organic growth. The investment thesis centers on intact long-term drivers including rising specialty chemical consumption, product innovation, and increased outsourcing to distributors. The manager sees IMCD's scale advantages enabling market share gains from smaller competitors, while disciplined M&A provides additional growth avenues. FMI projects double-digit EPS compounding potential with shares trading at mid-teens forward P/E, meaningfully below historical averages, setting up attractive returns through earnings growth and multiple expansion.

Pitch Summary:
Booking is the largest online travel agency in the world. This is a network effect business model, where Booking acts as an aggregator of supply (independent hotels) on one side and demand (leisure travelers) on the other. This aggregation of fragmented supply and demand allows them to charge a healthy commission when a user books a room, which in turn allows them to outspend all other players on customer acquisition while still earning good returns. Booking is best-in-class at digital marketing, earning the highest returns on acquired traffic of all the online travel agencies. Booking has tremendous scale and an asset-light business model, generating very high returns on capital and free cash flow. Most of their revenue is generated from independent hotels that depend on Booking not just to deliver incremental guests, but also for cross-currency payments, merchandising, and customer service. Recently, shares have come under pressure over fears that AI will displace online travel agencies. We believe these concerns are overblown. AI is unlikely to recreate Booking's global network of hotels given the extreme fragmentation of supply and Booking's on-the-ground sales force. Booking's payments and customer service capabilities are also difficult to replicate, further protecting the business against new entrants. In our view, new AI tools are more likely to integrate Booking's existing inventory and capabilities into their models, rather than recreating these features themselves. If travel research shifts from traditional search to LLMs, Booking's historical expertise in digital marketing makes them well-positioned to win this traffic. Furthermore, AI should boost Booking's margins through efficiencies in customer service and marketing. At a mid-teens forward earnings multiple, we believe Booking shares are attractive on both a relative and absolute basis.

BSD Analysis:
FMI presents a strong bull case for Booking Holdings, emphasizing the company's dominant position as the world's largest online travel agency with powerful network effects. The manager highlights Booking's ability to aggregate fragmented hotel supply and traveler demand, enabling superior customer acquisition economics and best-in-class digital marketing returns. FMI views the asset-light model as generating exceptional returns on capital and free cash flow, with revenue diversification beyond booking commissions into payments and customer service. The investment thesis directly addresses AI disruption concerns, arguing that Booking's global hotel network, on-ground sales force, and payment capabilities create insurmountable barriers for new entrants. The manager believes AI will more likely integrate with Booking's existing platform rather than replace it, while potentially improving margins through operational efficiencies. At a mid-teens forward P/E, FMI sees attractive valuation for this high-quality network effect business.

Pitch Summary:
Huron is a leading consulting firm serving hospitals, health systems, and higher education institutions. Decades of successful engagements have earned the company deeply entrenched relationships within its core end markets. While these industries are not typically associated with rapid growth, Huron's value proposition is squarely aimed at helping organizations navigate an unrelenting stream of business model, regulatory, and technology challenges – pressures that have only intensified. Because these institutions tend to operate with lean internal resources, they consistently rely on outside expertise to work through complex issues, creating a durable and recurring source of demand for Huron's services. Management sees a substantial opportunity to deepen penetration within the existing customer base over the coming years, and the company's strategy of broadening its capabilities – both organically and through tuck-in acquisitions – should drive further wallet share gains. In aggregate, we believe Huron can grow its top line in the low double digits annually, comprised of mid-to-upper single-digit organic growth supplemented by a modest contribution from M&A. Combined with a commitment to margin expansion and a consistent track record of share repurchases, we see a credible path to low-to-mid teens earnings per share growth on an annualized basis. Concerns about AI disrupting the consulting model have pressured Huron's valuation and weighed on the shares. We believe this risk is largely misunderstood. Huron views AI as a revenue opportunity – one it is already pursuing by helping clients develop and implement AI roadmaps – while simultaneously leveraging the technology internally to reduce its own costs. Both efforts are underway. Further reinforcing the company's resilience, management noted that ~ 2/3rds of 2025 revenue was outcome-based, fixed-fee, or recurring in nature, and that its highly skilled consultants delivering mission-critical work for institutions facing disruption are considerably more insulated than other consulting models. At a low-teens forward earnings multiple, we believe the shares offer compelling value relative to the quality and durability of the underlying business.

BSD Analysis:
FMI presents a compelling bull case for Huron Consulting Group, emphasizing the firm's entrenched relationships in healthcare and higher education markets. The manager highlights Huron's defensive positioning in sectors that consistently require external expertise due to lean internal resources and ongoing regulatory/technology challenges. FMI projects low double-digit revenue growth driven by mid-to-upper single-digit organic growth plus M&A contributions, translating to low-to-mid teens EPS growth through margin expansion and share buybacks. The investment thesis centers on AI concerns being overblown, with management viewing AI as a revenue opportunity rather than a threat. The manager notes that two-thirds of 2025 revenue is outcome-based, fixed-fee, or recurring, providing revenue stability. At a low-teens forward P/E multiple, FMI sees compelling value in this quality consulting franchise with durable competitive advantages.

Pitch Summary:
DSV is a transportation and logistics company that offers supply chain solutions to customers across the globe. The company is an exceptionally well-managed freight forwarder with a team that has continuously delivered industry-leading profit margins. The company recently acquired D.B. Schenker, the fourth largest freight forwarder in the world, which we think will further expand DSV's capabilities and offer attractive synergies. DSV has created and grown shareholder value over the past decade by successfully acquiring and integrating companies in this fragmented market, which we expect to continue. It has also maintained its strategy of increasing volumes, while maintaining best-in-class profitability.

BSD Analysis:
The manager views DSV as an exceptionally well-managed logistics company with a proven track record of value creation through strategic acquisitions. DSV's management team consistently delivers industry-leading profit margins, demonstrating superior operational efficiency in the competitive freight forwarding industry. The recent acquisition of D.B. Schenker, the world's fourth-largest freight forwarder, significantly expands DSV's global capabilities and provides attractive synergy opportunities. DSV's successful acquisition and integration strategy over the past decade has created substantial shareholder value in the fragmented logistics market. The company's ability to increase volumes while maintaining best-in-class profitability showcases disciplined growth and operational excellence. The fragmented nature of the logistics industry provides continued consolidation opportunities for DSV's proven acquisition strategy. Strong management execution, industry-leading margins, and strategic positioning in global supply chains create a compelling long-term investment thesis. The combination of organic growth and accretive acquisitions positions DSV for continued outperformance in the logistics sector.

Pitch Summary:
BNP Paribas is one of the world's largest banks with operations in more than 60 countries and the largest in Europe. We like that BNP is a highly diversified business with a best-in-class deposit franchise. In our view, the bank is well positioned for profitable growth as it focuses on optimizing high-potential business segments, executing value-accretive acquisitions, and driving operating leverage via continued cost control. Despite strong fundamental results, the stock trades at a discount to our estimate of intrinsic value due to French macro concerns, manageable regulatory uncertainty, and a lower interest rate environment. This created the opportunity to purchase shares in a well-managed company with strong underlying profitability and meaningful upside potential that should be a relative beneficiary in a falling rate environment.

BSD Analysis:
The manager views BNP Paribas as an attractively valued European banking leader with strong fundamentals trading at a discount. As Europe's largest bank with global operations across 60+ countries, BNP offers significant scale advantages and geographic diversification. The best-in-class deposit franchise provides stable funding and competitive positioning in retail banking. Management's focus on optimizing high-potential business segments, value-accretive acquisitions, and operating leverage through cost control demonstrates strategic discipline. Despite strong fundamental performance, the stock trades below intrinsic value due to French macro concerns and regulatory uncertainty, which the manager views as manageable. The lower interest rate environment creates near-term headwinds but positions BNP as a relative beneficiary when rates fall further. Strong underlying profitability and experienced management provide confidence in the bank's ability to navigate challenging conditions. The combination of quality franchise, strategic execution, and attractive valuation creates meaningful upside potential for patient investors.

Pitch Summary:
BMW is a leading global manufacturer of premium automobiles and motorcycles. BMW commands excellent brand equity within the premium automotive segment, which tends to grow faster and enjoy better pricing dynamics than the broader automotive market. In our view, BMW's management team is strong both operationally and strategically, basing key decisions on long-term value creation. They have positioned themselves well for success as electric vehicle demand grows, since they have a higher share globally in EVs than in ICE cars. Their position here will be further supported by the launch of their first electric-first platform, the Neue Klasse, later this year. Due to a high degree of localization, they are also better positioned to deal with tariffs than peers, in our view. Concerns over trade policy - and both demand and competition in China - presented the opportunity to initiate a position in BMW, an iconic brand with the strong balance sheet, cash flow generation, and technological savvy necessary to potentially deliver strong long-term results for shareholders.

BSD Analysis:
The manager views BMW as well-positioned in the premium automotive segment with superior EV positioning and tariff resilience. BMW's excellent brand equity in the premium segment provides pricing power and faster growth potential compared to mass market competitors. Strong management focuses on long-term value creation with strategic positioning for the EV transition. BMW's higher global EV market share versus ICE cars demonstrates successful electrification strategy, with the upcoming Neue Klasse electric-first platform providing additional competitive advantage. High localization levels offer better tariff protection than peers, addressing trade policy concerns. Recent market concerns over China demand and competition created an attractive entry point for this iconic brand. BMW's strong balance sheet, consistent cash flow generation, and technological capabilities support long-term shareholder value creation. The combination of premium positioning, EV leadership, and financial strength creates a compelling investment thesis despite near-term China headwinds.

Pitch Summary:
Becton, Dickinson and Company (BD) is a global medical technology company that markets a broad range of essential medical supplies, devices, laboratory equipment and diagnostic products. BD has achieved leading share positions in nearly all of its product categories by combining continuous innovation, low-cost manufacturing and consistently high reliability. The combination of an out-of-favor healthcare sector, temporary macro headwinds that have weighed on growth, and backward-looking concerns over free cash conversion have pressured the stock. These short-term concerns have provided us with the opportunity to purchase shares in what we view as a high-quality business with improving margins and an attractive long-term growth outlook at a significant discount to historical valuation levels.

BSD Analysis:
The manager views BD as a high-quality medical technology company trading at an attractive discount due to temporary headwinds. BD maintains leading market positions across nearly all product categories through continuous innovation, low-cost manufacturing, and high reliability standards. The company's essential medical supplies and devices provide defensive characteristics and recurring revenue streams. Current stock pressure stems from healthcare sector headwinds, macro growth concerns, and free cash flow conversion issues, which the manager views as temporary. Improving margins signal operational efficiency gains, while the long-term growth outlook remains attractive given aging demographics and healthcare innovation trends. The significant discount to historical valuations presents a compelling entry point for a market-leading franchise. BD's diversified product portfolio across medical devices, laboratory equipment, and diagnostics provides multiple growth vectors and defensive positioning. The combination of quality business fundamentals and attractive valuation creates an asymmetric investment opportunity.

Pitch Summary:
IQVIA Holdings (IQV) was the top detractor during the quarter. The U.S.-headquartered provider of biopharma services saw its stock price decline amidst uncertainty related to possible price controls on drugs, concerns about potential pharma tariffs and government agency budget cuts. IQV's first-quarter results in its Contract Research Organization segment held up better than peers and its Technology and Analytic Solutions segment is performing well, but the overall outlook for the near-term is weak due to a slowdown in biopharma R&D spending. This pressure notwithstanding, we believe the company's intermediate and long-term prospects remain solid. With the shares trading close to an all-time low multiple and management stepping up the level of repurchases, we believe that IQV is an attractive investment today.

BSD Analysis:
Despite being a top detractor, the manager maintains a bullish stance on IQVIA based on attractive valuation and strong competitive positioning. The stock declined due to macro headwinds including potential drug price controls, pharma tariffs, and government budget cuts affecting biopharma R&D spending. However, IQV's Contract Research Organization segment outperformed peers in Q1, and the Technology and Analytic Solutions segment continues performing well. The manager views current pressures as temporary, with solid intermediate and long-term prospects intact. Trading near all-time low multiples presents a compelling entry point, while increased share repurchases demonstrate management's confidence in the business. The combination of defensive market positioning, operational resilience, and attractive valuation creates an asymmetric risk-reward opportunity. IQVIA's essential role in drug development and data analytics positions it well for long-term growth as biopharma R&D spending normalizes.

Pitch Summary:
Bayer was the top contributor during the quarter. The German-headquartered pharmaceutical and agricultural company delivered a solid first-quarter 2025 that outperformed expectations, driven primarily by Pharma segment performance. This was an encouraging sign of organizational restructuring translating to results. In addition, expectations built throughout the quarter for the Supreme Court decision on whether to hear Bayer's appeal in its RoundUp litigation. The court requested the Solicitor General's input, which we believe implies good odds for Supreme Court review which could put an end to RoundUp litigation.

BSD Analysis:
The manager views Bayer positively based on strong Q1 2025 performance that exceeded expectations, particularly in the Pharma segment. The outperformance signals that the company's organizational restructuring efforts are beginning to translate into tangible results. A key catalyst is the potential Supreme Court review of Bayer's RoundUp litigation appeal, with the Solicitor General's input request suggesting favorable odds for review. Resolution of the RoundUp litigation overhang could remove a significant legal liability and unlock shareholder value. The manager sees the restructuring progress and potential litigation resolution as compelling reasons to maintain exposure to this diversified pharmaceutical and agricultural giant. The combination of operational improvements and legal catalyst resolution presents an attractive risk-reward profile. Bayer's diversified business model across pharmaceuticals and agriculture provides multiple avenues for growth and value creation.