Investment Pitches

Pitch Summary:
QuidelOrtho Corp. QuidelOrtho is a global leader in the diagnostics industry. The merger of Quidel and Ortho Clinical Diagnostics has resulted in a top 10 player in the in-vitro diagnostics industry, combining Quidel's strong point of care platform with Ortho's blood chemistry and transfusion platform. Quidel declined during the quarter on weaker Q4 earnings and a reduced 2024 outlook. The company's financial shortfall can be attributed to a dramatic slowdown in its higher-margin respiratory business and in particular Covid-19 testing volumes. The company now anticipates Covid testing revenue of ~$200 million, down from prior expectations of $200-$400 million. However, this should serve as the new base as current testing is associated with an endemic state and a normal respiratory season. Outside of its respiratory business, the company's clinical diagnostic division continues to demonstrate steady performance. While the respiratory revenue and margin impact were disappointing, we continue to hold a position in the company given steady performance out of its core business, solid profitability (EBITDA margins north of 20%), and an exciting new product launch in Savannah that could accelerate top-line growth.

BSD Analysis:
The manager maintains a bullish stance on QuidelOrtho despite near-term headwinds from declining COVID-19 testing volumes. The investment thesis centers on the company's leadership position in diagnostics following the merger of Quidel and Ortho Clinical Diagnostics, creating a top-10 player with complementary platforms. While COVID testing revenue has been cut to ~$200 million from prior expectations of $200-$400 million, the manager views this as establishing a new baseline in an endemic environment. The core clinical diagnostics business continues to perform steadily with strong profitability metrics, including EBITDA margins above 20%. The upcoming Savannah product launch represents a potential growth catalyst that could accelerate revenue expansion. The manager's conviction appears rooted in the company's diversified diagnostic capabilities and solid underlying fundamentals beyond the volatile respiratory testing segment.

Pitch Summary:
RB Global, Inc. operates an online auction marketplace for used industrial equipment, including earthmoving, agricultural, and transportation vehicles. Given its large global network and scale advantages, we believe the company is well positioned for additional growth from its single-digit market share position today. While market uncertainty lingered around its recent acquisition of IAA, Inc., we saw strong fundamentals within its core heavy equipment auctions business and expect strong pricing and volumes to drive incremental profitability. The company has also made progress on its auto salvage performance with continued improvements in asset turns which should position the company for incremental market share gains going forward. The stock rose during the quarter on continued strong results that were devoid of lingering distractions that had previously held back the stock. Underlying fundamentals continue to look strong as used equipment supply remains healthy and government-funded infrastructure projects come online. We are also monitoring progress on the IAA acquisition front, where we anticipate improved business momentum. During the period, we trimmed the position as the share price appreciated based on our position size and risk management discipline.

BSD Analysis:
The manager maintains a bullish view on RB Global while practicing disciplined position management through trimming on appreciation. The investment thesis centers on the company's dominant position in online industrial equipment auctions with significant runway for growth from its single-digit market share. Strong fundamentals in the core heavy equipment business are driving pricing power and volume growth, while improvements in auto salvage asset turns position the company for market share expansion. The IAA acquisition, while initially creating uncertainty, is expected to generate improved business momentum. Government infrastructure spending provides a favorable backdrop with healthy used equipment supply supporting auction volumes. The manager's decision to trim the position reflects risk management discipline rather than a change in fundamental outlook. The company's ability to deliver strong results without previous operational distractions demonstrates improved execution and focus on core business drivers.

Pitch Summary:
ACV Auctions, Inc. operates a digital wholesale auction marketplace to facilitate business-to-business used car sales between sellers and dealers. It has disrupted the traditional physical used-car auction marketplace by attracting thousands of dealers to its online platform. ACV's competitive advantage is its sizeable team of inspectors and the technology tools supporting this team. The depth and accuracy of ACV's inspection reports provide buyers the confidence to bid aggressively, knowing that they are unlikely to contend with negative post-purchase surprises. Sellers are drawn to ACV due to its lower auction fees and large buyer base. The stock appreciated during the quarter on strong results and 2024 guidance that came in well ahead of expectations. After a challenging 2-year period characterized by low dealer inventories and high car prices, new and used car markets are showing signs of normalization. We expect ACV to continue growing market share and to generate higher margins as volumes return closer to normal (volumes remain approximately 40% below pre-pandemic levels). The company is also well positioned as the market continues to migrate from legacy physical auctions toward ACV's more efficient digital platform. As fundamentals continued to improve during the quarter, we maintained a large position in the company.

BSD Analysis:
The manager maintains strong conviction in ACV Auctions as a digital disruptor in the used car auction marketplace. The investment thesis is built on ACV's competitive moat through its inspector network and technology platform, which provides superior inspection accuracy that enables aggressive bidding and reduces post-purchase surprises. The company benefits from a dual value proposition of lower fees for sellers and a large buyer base, creating network effects. Strong quarterly results and 2024 guidance exceeding expectations validate the recovery thesis as automotive markets normalize after a challenging two-year period. With volumes still 40% below pre-pandemic levels, significant operating leverage exists as the business scales. The secular shift from physical to digital auctions provides a long-term tailwind for market share gains. The manager's decision to maintain a large position reflects confidence in ACV's ability to capitalize on market normalization and continued digital adoption.

Pitch Summary:
Trimble, Inc. is a leading industrial technology company that provides hardware, software, and services primarily to the construction, geospatial, transportation, and agricultural industries. Over the last several years, Trimble has been transitioning toward a subscription-based, recurring revenue model. The stock responded positively in the quarter when it announced the completion of a joint venture allowing Trimble to divest the hardware side of its agricultural business, an important vertical, while retaining partial ownership. With a cleaner, recurring-revenue business model now in focus, we expect the company to realize better gross margins, free cash flow, and profitability over the long term. Today, our investment thesis is underpinned by a business that has gone through a heavy lift on the transformation side, has vastly improved gross margins, and is growing annual recurring revenue at a solid rate. With a valuation at roughly half of its peer group, we see strong upside potential. During the period, we held our position steady as the share price appreciated.

BSD Analysis:
The manager maintains a bullish outlook on Trimble following the successful completion of its business model transformation to recurring revenue. The investment thesis centers on the company's strategic shift away from hardware toward subscription-based services across construction, geospatial, transportation, and agricultural markets. The agricultural joint venture represents a key milestone, allowing Trimble to monetize hardware assets while retaining exposure through partial ownership and focusing on higher-margin recurring revenue streams. The manager emphasizes the transformation's impact on gross margins and free cash flow generation, with annual recurring revenue growing at a solid pace. A compelling valuation at roughly half the peer group multiple provides significant upside potential. The decision to hold the position steady during share price appreciation reflects confidence in the long-term value creation from the business model transformation while maintaining disciplined position sizing.

Pitch Summary:
Sotera Health Company offers mission-critical sterilization and lab-testing services to the healthcare industry and counts 40 of the top 50 medical device companies and eight of the top 10 pharmaceutical companies as customers. As part of its sterilization service portfolio, the company offers ethylene oxide sterilization as a critical modality. In fact, approximately 50% of all medical devices are sterilized with ethylene oxide, and in most cases, it is required by the FDA for effective sterilization and market commercialization. The stock came under pressure during the quarter following a new lawsuit related to its Sterigenics facility located in California which conducts ethylene oxide sterilization. The company had settled a previous lawsuit in Illinois and we believe the company can defend its position and the merits of its operations in this case as well. Sterigenics has a strong track record of performance, emissions control, and compliance with regulatory standards. Given the company's strong competitive position, attractive margins, and consistent growth profile, we added to our position in the company during the quarter.

BSD Analysis:
The manager demonstrates strong conviction in Sotera Health despite legal headwinds, adding to the position during the quarter. The investment thesis is anchored on the company's mission-critical role in healthcare sterilization, serving 40 of the top 50 medical device companies and 8 of the top 10 pharmaceutical companies. The manager emphasizes that ethylene oxide sterilization is FDA-required for approximately 50% of all medical devices, creating a defensible moat around the business. While acknowledging the California lawsuit as a near-term pressure point, the manager draws confidence from the company's successful defense in a previous Illinois case and Sterigenics' strong compliance track record. The decision to increase the position reflects belief in the company's competitive positioning, margin profile, and growth consistency, viewing the legal issues as manageable risks rather than fundamental threats to the business model.

Pitch Summary:
Iridium Communications, Inc. is a global satellite communications company that provides mobile voice and data communications services to businesses, governments, non-governmental organizations, and consumers worldwide. We invested in Iridium following the build-out of its next-generation satellite constellation, which was completed in 2018. With significant capital investment behind it, the company is poised to return capital to shareholders via meaningful share buybacks funded by strong and predictable free cash flow. We are also excited by the company's efforts to monetize its network through expanded use cases for its global coverage, including applications for marine operators and consumer devices such as global Wi-Fi hot spots and Garmin devices. Unfortunately, the company's plans were delayed when Qualcomm, Iridium's partner in the mobile phone market, canceled their partnership after failing to generate enough demand from smartphone manufacturers. We maintained our position in the company during the quarter.

BSD Analysis:
The manager maintains a bullish stance on Iridium despite recent setbacks with the Qualcomm partnership cancellation. The investment thesis is built on the completion of Iridium's next-generation satellite constellation in 2018, which positions the company for capital returns through share buybacks supported by strong free cash flow generation. The manager sees significant monetization opportunities through expanded use cases including marine operations and consumer devices like Wi-Fi hotspots and Garmin integration. While the Qualcomm mobile partnership failure represents a near-term disappointment, the manager views this as a temporary setback rather than a fundamental challenge to the investment thesis. The decision to maintain the position suggests confidence in Iridium's ability to find alternative pathways to growth and capitalize on its global satellite network infrastructure.

Pitch Summary:
QuidelOrtho Corporation is a global leader in the diagnostics industry. The merger of Quidel and Ortho Clinical Diagnostics has resulted in a top 10 player in the in-vitro diagnostics industry, combining Quidel's strong point of care platform with Ortho's blood chemistry and transfusion platform. Quidel declined during the quarter on weaker Q4 earnings and a reduced 2024 outlook. The company's financial shortfall can be attributed to a dramatic slowdown in its higher-margin respiratory business and in particular Covid-19 testing volumes. The company now anticipates Covid testing revenue of ~$200 million, down from prior expectations of $200-$400 million. However, this should serve as the new base as current testing is associated with an endemic state and a normal respiratory season. Outside of its respiratory business, the company's clinical diagnostic division continues to demonstrate steady performance. While the respiratory revenue and margin impact were disappointing, we continue to hold a position in the company given steady performance out of its core business, solid profitability (EBITDA margins north of 20%), and an exciting new product launch in Savannah that could accelerate top-line growth.

BSD Analysis:
The manager maintains a cautious but constructive view on QuidelOrtho following the merger of Quidel and Ortho Clinical Diagnostics. The investment thesis centers on the company's position as a top 10 player in the in-vitro diagnostics industry with complementary platforms. However, the company faces significant headwinds from the normalization of COVID-19 testing demand, with revenue expectations dropping to $200 million from a prior range of $200-$400 million. The manager emphasizes the company's core clinical diagnostics business remains stable, with EBITDA margins exceeding 20%. A key catalyst is the Savannah product launch, which could drive accelerated growth. The position reflects a balanced approach, acknowledging near-term challenges while maintaining exposure to the company's fundamental strengths and long-term potential in the diagnostics market.

Pitch Summary:
Amazon.com, Inc. reported a strong quarter. Its focus on streamlining its fulfillment network through regionalization efforts has yielded significant cost savings and efficiency gains. These improvements, coupled with strategic investments in automation and robotics, are expected to further enhance margins and profitability in the coming quarters. We believe the set-up for margin expansion over the coming years is compelling. Driven both by efficiency gains and growth in more profitable businesses like advertising, Amazon continues to invest strategically in innovation and expansion initiatives. These include advancements in artificial intelligence and machine learning, the development of new fulfillment centers and delivery stations, and the expansion of Prime services and digital content offerings. We believe these strategic investments are laying the groundwork for sustained growth and market leadership in the years to come and continue to hold shares in Amazon as an unhedged position.

BSD Analysis:
The manager presents a strong bull case for Amazon focused on operational efficiency improvements and margin expansion potential. The regionalization of the fulfillment network has delivered meaningful cost savings and efficiency gains, while automation and robotics investments should drive further margin enhancement. The combination of operational improvements and growth in higher-margin businesses like advertising creates a compelling setup for sustained profitability expansion. Strategic investments in AI and machine learning, along with continued fulfillment infrastructure development, position Amazon for long-term competitive advantages. The expansion of Prime services and digital content offerings supports customer retention and lifetime value growth. The decision to hold Amazon as an unhedged position reflects high conviction in the company's execution capabilities and long-term growth trajectory. The manager appears confident that current investments will drive sustained market leadership across multiple business segments. This represents a quality growth investment with improving operational leverage and diversified revenue streams supporting margin expansion.

Pitch Summary:
NVIDIA Corporation is a leading designer of graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-a-chip units for the mobile computing and automotive markets. The company has experienced strong performance recently due to booming demand for its data center products, particularly those related to artificial intelligence. A major driver of Nvidia's recent success has been the growing adoption of its GPU accelerators for AI training and inference across various end markets. The company's GPUs have become an industry standard for training large language models (LLMs), and its networking solutions, such as NVLink and InfiniBand, are critical to maximizing the performance of AI systems. Nvidia's latest Blackwell GPU platform is expected to further extend its lead in the AI accelerator market, with significant performance and total cost of ownership benefits over its predecessors. As the AI market continues to expand with growing adoption across enterprises and sovereign nations, we expect Nvidia to maintain its dominance and experience sustained growth in its data center business. Beyond data centers, Nvidia has also benefited from strong demand in its gaming business, which has recovered after a period of inventory digestion in 2022. The company's gaming GPUs have been well-received, and its focus on the high-end market has supported growth in average selling prices. Looking ahead, we expect the gaming market to remain healthy with ongoing growth potential. Nvidia also sees opportunities to diversify its business and foray into new markets, such as automotive and robotics. We continued to hold our position in Nvidia.

BSD Analysis:
The manager presents a comprehensive bull case for NVIDIA centered on its dominant position in the rapidly expanding AI accelerator market. The thesis emphasizes NVIDIA's industry-standard GPUs for large language model training and critical networking solutions like NVLink and InfiniBand that maximize AI system performance. The upcoming Blackwell platform represents a significant technological advancement with superior performance and cost benefits, likely extending NVIDIA's competitive moat. The manager expects sustained data center growth driven by enterprise and sovereign AI adoption, positioning NVIDIA to maintain market leadership. Beyond AI, the gaming business recovery following 2022 inventory normalization provides additional growth support, with high-end focus driving average selling price expansion. The diversification opportunities in automotive and robotics offer longer-term growth vectors. The decision to maintain the position reflects confidence in NVIDIA's technological leadership and market positioning across multiple high-growth end markets. This represents a classic growth investment thesis supported by strong competitive advantages and expanding addressable markets.

Pitch Summary:
Vistra Corp. is an integrated retail electricity and power generation company based in Irving, Texas. It operates in 12 states and six of the seven competitive markets in the U.S. Vistra's retail brands serve approximately 2.9 million customers and its power generation fleet totals approximately 41,000 megawatts of natural gas, nuclear, coal, and solar facilities. Vistra was a top performer in the strategy over the past quarter, with its shares rallying over 80%. A key driver has been the thesis that the projected growth of power-hungry data centers, spurred by the rise of generative AI, will increase electricity demand and power prices. This is expected to significantly benefit incumbent power generators like Vistra. The company's efficient generation portfolio, especially its nuclear and natural gas plants, is well-positioned to capitalize on rising demand, scarcity pricing, and ancillary services in the Texas power market. Vistra is also pursuing opportunities to potentially sign high-margin power offtake agreements directly with data center customers for its nuclear plants, similar to a recent deal by peer Talen Energy and Amazon. We continue to like Vistra's strong free cash flow generation supporting continued share buybacks and debt reduction, synergies from the recent Energy Harbor acquisition, and a favorable power market backdrop with rising spark spreads. We trimmed the stock following its strong performance during the period.

BSD Analysis:
The manager presents a compelling thesis on Vistra Corp centered on the structural demand shift from AI-driven data center growth. The 80% quarterly rally reflects market recognition of the company's advantaged position to benefit from increased electricity demand and higher power prices driven by generative AI adoption. Vistra's diversified generation portfolio, particularly nuclear and natural gas assets, provides optimal positioning to capture scarcity pricing and ancillary services in competitive markets like Texas. The potential for direct power purchase agreements with data center customers represents a high-margin growth opportunity, as evidenced by peer transactions. Strong free cash flow generation enables continued capital returns through buybacks and debt reduction, while the Energy Harbor acquisition provides additional synergies. Rising spark spreads create a favorable operating environment for the company's gas-fired generation. The decision to trim following strong performance demonstrates disciplined portfolio management while maintaining conviction in the long-term AI-driven power demand thesis.

Pitch Summary:
Rivian Automotive, Inc. is a US-based manufacturer of electric vehicles, namely the R1T pickup truck and R1S SUV. They also have exposure to the commercial vehicle market with their electric delivery vans (EDVs) that are sold to companies like Amazon. The company has faced challenges amid the broader slowdown in electric vehicle demand and rising interest rates. This has contributed to Rivian underperforming expectations over the past few quarters. Rivian has also incurred losses as it continues to invest in the development of its products and manufacturing capabilities. We own Rivian in a hedged structure, which provides a significant margin of safety. Despite the near-term challenges, several factors provide optimism that Rivian can emerge as a long-term winner in the EV market. Rivian's balance sheet is strong, with a substantial cash position that enables the company to continue investing in its growth and navigate through the current economic headwinds. Rivian is also unveiling the R2, which is a smaller and more affordable EV platform that will open the company's products to a wider customer base. Lastly, Rivian's investment in the enhancement of its production capabilities should improve the company's manufacturing efficiency and drive a path to profitability. We continue to hold the company in a hedged structure.

BSD Analysis:
The manager maintains a constructive long-term view on Rivian despite acknowledging significant near-term challenges in the electric vehicle sector. While recognizing headwinds from broader EV demand slowdown, rising interest rates, and current losses from ongoing product and manufacturing investments, the fund emphasizes several key competitive advantages. The strong balance sheet with substantial cash reserves provides crucial runway to navigate current market volatility and continue growth investments. The upcoming R2 platform represents a strategic expansion into the mass market with more affordable pricing, potentially significantly expanding Rivian's addressable market beyond the premium truck/SUV segments. Manufacturing efficiency improvements should drive margin expansion and a clearer path to profitability. The hedged structure demonstrates prudent risk management while maintaining upside exposure to the long-term EV opportunity. The manager appears confident in Rivian's differentiated position in electric trucks and commercial vehicles, particularly given the Amazon partnership, while appropriately managing execution risk through options hedging.

Pitch Summary:
Liberty Broadband Corporation is a holding company. The largest asset at Liberty Broadband is a 26% ownership stake in Charter Communications, which is a cable company. This ownership exposes Liberty Broadband to trends in the cable industry and the equity value of Charter shares. The underperformance of Liberty Broadband shares over the past quarter was largely driven by the underperformance of Charter. Charter shares have been under pressure since its recent earnings report when management raised the near-term capital expenditures (capex) outlook for network upgrades and line extensions. Higher capex, the looming defunding of the Affordable Connectivity Program (ACP), continued competitive pressure on broadband net adds, and some incremental free cash flow pressure from higher cash taxes have also represented recent/current headwinds for the stock. Despite these near-term challenges, we remain optimistic about the long-term prospects for both Charter and the cable industry. Cable companies are well-positioned to benefit from the growing demand for high-speed internet access, as more and more people work from home and consume streaming video content. Additionally, cable companies have been investing heavily in network upgrades and new technologies, such as DOCSIS 4.0, that will allow them to offer even faster speeds and more reliable service. We also see an opportunity for cable companies to bundle their broadband services with other products, such as mobile phone service and home security, which could help to drive further growth. Given this favorable outlook, we continue to hold shares of the company.

BSD Analysis:
The manager maintains a constructive long-term view on Liberty Broadband despite near-term headwinds affecting Charter Communications, the holding company's primary asset. While acknowledging current pressures including elevated capex for network upgrades, ACP defunding, competitive broadband dynamics, and cash flow headwinds, the fund emphasizes the structural growth drivers supporting the cable industry. The thesis centers on increasing demand for high-speed internet driven by remote work trends and streaming consumption, positioning cable companies favorably. The manager highlights significant infrastructure investments in DOCSIS 4.0 technology that should enable faster speeds and improved service quality. Additionally, the bundling opportunity across broadband, mobile, and home security services represents a compelling revenue diversification strategy. The decision to maintain the position reflects confidence in the long-term secular trends despite current operational challenges. This represents a classic value-oriented approach, maintaining conviction through temporary headwinds while focusing on fundamental industry dynamics.

Pitch Summary:
Sally Beauty Holdings, Inc. is an international specialty retailer and distributor of professional beauty products, with a focus on hair color and hair care. The company has two segments: Sally Beauty Supply ("SBS"), which serves retail customers and salon professionals, and Beauty Systems Group ("BSG"), which serves professional stylists and salons. The company has faced several challenges in recent quarters, impacting both the top and bottom lines. The lower- to middle-income consumer who shops at SBS has felt pressure from inflation and has been more cautious with their spending. This has led to softer traffic at SBS as customers have been extending the time between hair treatments and buying fewer discretionary items. Unfavorable weather conditions in the early part of the second quarter of fiscal 2024 further pressured traffic. This is especially impactful to SBS, as it is the larger and higher-margin segment for the company. Despite near-term headwinds, Sally Beauty is implementing several initiatives that should benefit the company over time. The company has launched several programs, including the "Studio by Sally" store concept and the "Licensed Colorist on Demand" online platform, that should drive customer engagement and retention. Sally Beauty has also launched a new store concept called "Happy Beauty Co.," a value-focused beauty store with all items priced under $10. The company is also focused on increasing the penetration of its owned brands across its segments, which carry higher margins than national brands. We expect these initiatives will aid in a return to positive comparable sales growth over time and help drive margin expansion. Given the uncertainty of the timing of these turnaround initiatives, we re-hedged our exposure to the stock during the period.

BSD Analysis:
The manager presents a balanced view of Sally Beauty Holdings during a challenging period for the specialty beauty retailer. The fund acknowledges significant headwinds including inflation-pressured consumers reducing discretionary spending, extended treatment cycles, and weather-related traffic declines particularly impacting the higher-margin SBS segment. However, the manager identifies several strategic initiatives that could drive long-term value creation, including the "Studio by Sally" concept, "Licensed Colorist on Demand" platform, and the new "Happy Beauty Co." value-focused stores. The focus on increasing owned brand penetration represents a clear margin expansion opportunity given the higher profitability versus national brands. The decision to re-hedge the position reflects prudent risk management given execution uncertainty around the turnaround timeline. The manager appears cautiously optimistic about the company's strategic direction while appropriately managing downside risk through options hedging during this transitional period.

Pitch Summary:
Sweetgreen, Inc. operates restaurants serving fresh and healthy foods in the United States. The salad-focused restaurant concept has invested heavily to develop a captive network of growers that help ensure the freshness of its produce, a distinct competitive advantage. Additionally, management's investment in automation technology, known as the "Infinite Kitchen," has shown strong promise of significant labor cost savings, a reduction of order fulfillment errors, and increased restaurant throughput. While Infinite Kitchen has only been tested in a handful of stores to date, initial data supports the potential for automation technology to significantly improve both margins and average unit volumes. The stock rose in the quarter on accelerating same-store sales growth and better than expected guidance from management. In addition, investors took notice that material margin improvements could quickly reduce Sweetgreen's cash burn, a prior source of concern. Sweetgreen was a new position for the Fund in the quarter.

BSD Analysis:
The manager initiated a new position in Sweetgreen based on the company's differentiated approach to fast-casual dining and promising automation technology. The investment thesis centers on two key competitive advantages: a captive grower network ensuring produce freshness and the innovative "Infinite Kitchen" automation platform. The grower network provides supply chain control and quality differentiation in the competitive restaurant space, while the automation technology addresses the industry's persistent labor cost and operational efficiency challenges. Early data from Infinite Kitchen testing shows significant potential for labor savings, error reduction, and throughput improvements, which could drive substantial margin expansion across the restaurant base. Accelerating same-store sales growth and improved guidance demonstrate strong underlying business momentum, while the prospect of material margin improvements addresses previous concerns about cash burn sustainability. The combination of differentiated positioning in healthy fast-casual dining, operational innovation through automation, and improving unit economics supports the bullish investment case. Key catalysts include broader rollout of Infinite Kitchen technology and continued same-store sales acceleration driving path to profitability.

Pitch Summary:
Neurogene, Inc. is a gene therapy company with a focus on rare neurological diseases. The company's novel and proprietary EXACT transgene regulation platform technology allows for the delivery of therapeutic gene expression levels while limiting transgene toxicity associated with conventional gene therapy. The company currently has two early-stage clinical programs focusing on Rett syndrome and Batten disease. During the quarter, the stock responded positively to the finalization of the company's strategic reverse merger and additional private financing that provided a nearly $200 million cash infusion to its balance sheet. The transaction puts Neurogene in a well-funded position to advance its clinical programs. We trimmed our position as the share price appreciated during the period.

BSD Analysis:
The manager maintains a positive outlook on Neurogene's gene therapy platform targeting rare neurological diseases, with the investment thesis centered on the company's proprietary EXACT technology that addresses key limitations of conventional gene therapy. The platform's ability to deliver therapeutic gene expression while minimizing toxicity represents a significant competitive advantage in the gene therapy space. The focus on Rett syndrome and Batten disease targets high unmet medical need areas with limited treatment options, potentially supporting premium pricing and accelerated regulatory pathways. The recent reverse merger and $200 million financing round provides substantial runway to advance clinical programs through key value-inflection points. The manager's decision to trim the position following share price appreciation demonstrates disciplined profit-taking while maintaining exposure to the long-term opportunity. The well-funded balance sheet reduces execution risk and provides multiple shots on goal across the clinical pipeline. Key catalysts include clinical trial readouts for both Rett syndrome and Batten disease programs, with potential for significant value creation upon demonstration of safety and efficacy.

Pitch Summary:
Byrna Technologies, Inc. is a leading at-home self-defense company that designs, manufactures, and sells non-lethal alternative defense solutions for consumers and law enforcement. Primarily sold through Byrna's e-commerce store and Amazon storefront, Byrna's non-lethal handheld and shoulder-fired personal security devices do not require a background check or firearm license. We believe the company's innovative solutions have an expansive opportunity for growth. During 2023, the stock experienced a significant pullback when restrictions imposed on its online advertising cut nearly half of its website traffic overnight, impacting sales. However, the company's recent pivot to an alternative advertising strategy appears to have successfully restored revenue momentum and the stock responded positively in the quarter. During the period, we trimmed our position in the company as the share price appreciated based on our risk-management discipline.

BSD Analysis:
The manager expresses confidence in Byrna Technologies' position in the growing non-lethal personal defense market, highlighting the company's innovative product portfolio and expansive growth opportunity. The investment thesis is built on the unique regulatory advantage of Byrna's devices, which don't require background checks or firearm licenses, potentially expanding the addressable market beyond traditional firearms customers. The direct-to-consumer model through e-commerce and Amazon provides scalable distribution with strong margins. While 2023 advertising restrictions created significant headwinds by cutting website traffic in half, management's successful pivot to alternative marketing strategies demonstrates operational adaptability and restored revenue growth momentum. The manager's decision to trim the position following share price appreciation reflects disciplined risk management rather than diminished conviction in the long-term opportunity. The combination of innovative products, regulatory advantages, scalable distribution, and proven management execution supports the bullish thesis despite temporary advertising challenges. Key catalysts include continued market share gains in personal defense and potential expansion into law enforcement applications.

Pitch Summary:
Forrester Research, Inc. is an independent market research and consulting firm widely known for its publications and insights on topics such as cloud migration, AI, cybersecurity, and customer experience. We like the business for its potential to generate high margins through a sticky, subscription-based revenue model. The company acquired SiriusDecisions in 2019, expanding its expertise beyond its customer base. Over the last few years, however, the company implemented several changes that negatively impacted results. First, they migrated the product away from their legacy strengths and pushed customers to switch to a combined offering. These changes had the unintended consequence of forcing customers to reconsider their overall research spend and, in some cases, consolidate and reduce spending, causing a negative impact on revenue. Second, the company underwent a salesforce transition to target decision-makers higher up in the organization with its expanded offering. The stock declined during the quarter as new sales and revenue weakened through the transition. We believe that the market has been short-sighted and overly punitive. The company currently trades at an attractive valuation and, with an upgraded salesforce aligned with broadened capabilities, is well-positioned to improve results into 2025. We maintained our position in the company during the quarter.

BSD Analysis:
The manager maintains a bullish stance on Forrester Research despite execution challenges from strategic transitions over recent years. The core investment thesis centers on the company's subscription-based research model with high margins and sticky customer relationships in high-demand areas like AI, cybersecurity, and digital transformation. While the SiriusDecisions acquisition and subsequent product integration created near-term disruption by forcing customers to reconsider spending, the manager views this as temporary execution issues rather than fundamental business deterioration. The salesforce restructuring to target higher-level decision makers aligns with the expanded capabilities from the acquisition, positioning for larger deal sizes and deeper client relationships. Current valuation appears attractive given the market's punitive reaction to the transition period, creating an opportunity for patient investors. The manager expects the upgraded salesforce and broadened service offerings to drive improved results in 2025 as integration challenges subside. The decision to maintain the position reflects confidence in the underlying research franchise and belief that current weakness represents a compelling entry point for a quality recurring revenue business.

Pitch Summary:
QuidelOrtho Corporation. QuidelOrtho is a global leader in the diagnostics industry. The merger of Quidel and Ortho Clinical Diagnostics has resulted in a top 10 player in the in-vitro diagnostics industry, combining Quidel's strong point of care platform with Ortho's blood chemistry and transfusion platform. Quidel declined during the quarter on weaker Q4 earnings and a reduced 2024 outlook. The company's financial shortfall can be attributed to a dramatic slowdown in its higher-margin respiratory business and in particular Covid-19 testing volumes. The company now anticipates Covid testing revenue of ~$200 million, down from prior expectations of $200-$400 million. However, this should serve as the new base as current testing is associated with an endemic state and a normal respiratory season. Outside of its respiratory business, the company's clinical diagnostic division continues to demonstrate steady performance. While the respiratory revenue and margin impact were disappointing, we continue to hold a position in the company given steady performance out of its core business, solid profitability (EBITDA margins north of 20%), and an exciting new product launch in Savannah that could accelerate top-line growth.

BSD Analysis:
The manager maintains a constructive view on QuidelOrtho despite near-term headwinds from declining COVID-19 testing volumes. The investment thesis is built on the strategic value of the Quidel-Ortho merger, which created a top-10 diagnostics player combining complementary platforms in point-of-care and clinical diagnostics. While COVID testing revenue has normalized to ~$200 million from peak expectations of $200-$400 million, this establishes a more sustainable baseline for endemic testing patterns. The core clinical diagnostics business continues to perform steadily with EBITDA margins exceeding 20%, demonstrating the underlying profitability of the franchise. The upcoming Savannah product launch represents a potential growth catalyst that could accelerate revenue expansion beyond the current COVID headwinds. The manager's decision to maintain the position reflects confidence in the diversified diagnostics platform and belief that current weakness is primarily cyclical rather than structural. The combination of steady core performance, strong margins, and new product innovation supports the long-term investment case despite temporary respiratory testing volatility.

Pitch Summary:
Consensus Cloud Solutions, Inc., a leading supplier of both secure data delivery for enterprise healthcare interoperability and cloud fax solutions to small office home office (SoHo) customers, was spun out of longtime holding J2 Global (now Ziff Davis) in the fourth quarter of 2022. Consensus has historically enjoyed a high percentage of recurring revenues, low churn in the enterprise segment, and high margins. Much of the company's current strategic focus is to build upon its legacy digital cloud fax service for the enterprise healthcare sector where data security and interoperability are key concerns. Despite an earnings report in line with expectations, the stock declined during the quarter on lower-than-expected guidance. The healthcare business continues to be under macro pressure, largely driven by IT staffing issues that are slowing enterprise-level adoptions of Consensus' solutions. The company has rightly downshifted to a lower revenue reality and management is proactively shifting marketing spend from inefficient top-line growth efforts in its SoHo segment toward higher revenue generating customers in healthcare. We expect healthcare's macro issues to eventually ease, resulting in revenue growth accelerating from the low single-digit growth today towards low double digits. The stock was recently trading at an attractive three times earning multiple with more than a 20% free cash flow yield. We believe that even modest growth from here and continued deleveraging could result in a materially higher share price. We maintained our position in the company during the quarter.

BSD Analysis:
The manager maintains a bullish stance on Consensus Cloud Solutions despite near-term headwinds in the healthcare IT sector. The investment thesis centers on the company's strong fundamentals including high recurring revenue, low enterprise churn, and robust margins from its cloud fax and secure data delivery services. Management is strategically pivoting marketing spend from lower-value SoHo customers to higher-revenue healthcare clients, positioning for accelerated growth as IT staffing constraints ease. The valuation appears compelling at 3x earnings with a 20%+ free cash flow yield, suggesting significant upside potential even with modest revenue growth. The manager's confidence in maintaining the position reflects belief in the company's market position in healthcare data security and interoperability solutions. Key catalysts include resolution of macro healthcare pressures and successful execution of the strategic shift toward enterprise customers. The risk-reward profile appears favorable given the defensive characteristics of the recurring revenue model and attractive entry valuation.

Pitch Summary:
FIVN was a top detractor in 1Q24 despite better-than-expected 4Q earnings and guidance. FIVN reported $239 million of revenue, 15% year-over-year revenue growth and $1 million higher than estimates, and $0.61 of EPS, 13% growth and $0.13 better than estimates. Management guided 1Q24 and full year 2024 in line with investor expectations, but some investors had expected guidance to be raised. Five9 is a leader in providing cloud-based software to contact centers. The company's suite of applications provides contact center agents with a unified communication platform (voice, email, text, chat, web, social) and a desktop of tools to help agents engage customers more quickly and effectively. FIVN is well-positioned as contact centers transition to the cloud and has high customer retention (112% net revenue retention last quarter). The company doubled its strategic sales team over the past year and signed new partnerships with AT&T, CDW and Microsoft. We believe the company can grow its top line in the high teens, while improving on its 4Q 60% gross margin and 16% operating income margin, leading to 20%+ EPS growth for the foreseeable future.

BSD Analysis:
RiverPark presents a bullish thesis for Five9 based on its leadership position in cloud-based contact center software and strong secular growth trends. The fund highlights solid Q4 2023 results with revenue of $239 million growing 15% year-over-year and EPS of $0.61 exceeding estimates by $0.13, demonstrating consistent execution despite stock underperformance. Five9's unified communication platform integrating voice, email, text, chat, web, and social channels positions the company as a comprehensive solution provider for contact center modernization. The fund emphasizes the structural shift from on-premise to cloud-based contact center infrastructure as a key growth driver. Strong customer retention metrics with 112% net revenue retention indicate high customer satisfaction and expansion opportunities within the existing base. Strategic partnerships with AT&T, CDW, and Microsoft, combined with a doubled sales team, should accelerate market penetration and revenue growth. RiverPark projects high-teens revenue growth with margin expansion from the current 60% gross margin and 16% operating margin profile. The fund expects 20%+ EPS growth driven by operating leverage as the company scales its cloud platform and captures market share in the growing contact center-as-a-service market.