Investment Pitches

Pitch Summary:
We bought our position in the Texas-focused oil & gas logistics company that fabricates, rents and maintains gas compression equipment while shares were trading at discounts of up to 45 percent of tangible book value, reportedly due to a large shareholder exiting its position. While rising debt loads, executive turnover and declining natural gas prices were negatively impacting sentiment toward the small company, we believed investors were misreading the fundamentals. We concluded that the company was in experienced hands, and realized that debt was being incurred to support significantly increased levels of profitably contracted compression business, which would soon begin to impact the income statement as the newly fabricated compression equipment was placed into service. Shares increased by approximately 55 percent in the second half of the year as investor sentiment brightened amid substantial improvements in reported financial results. Despite the recent gains, we believe shares remain undervalued, and currently intend to maintain our holdings. At year-end, NGS shares represented 3.65 percent of Fund assets.

BSD Analysis:
Natural Gas Services Group is currently seeing a sustainble upward trend in 2026, with a bullish analyst consensus and price targets implying double-digit upside from current levels. The company's investment case is anchored by its strong cash flow momentum and a strategic focus on high-horsepower compression equipment, which is in high demand for Permian Basin production. Recent financial results highlight expanding operating margins and a healthy return on equity, supported by a 24% year-over-year growth in net income. Analysts at major firms have maintained buy ratings, citing the firm's ability to maintain high utilization rates and pass through inflationary costs to a blue-chip customer base. As a low-beta energy services play, the company offers a defensive way to capitalize on the sustained volume growth of North American natural gas. With its 52-week highs frequently tested, Natural Gas Services Group is well-positioned for continued market outperformance throughout the year.

Pitch Summary:
Among these, our investments in steel manufacturers were among the most positively impactful to performance in 2023. Two Canadian blast-furnace hot-rolled coil producers, Stelco (STLC-CA) and Algoma Steel (ASTL-CA), bolstered 2023 Fund performance in 2023 by 0.79 and 1.65 percentage points, respectively. Both companies have emerged from financial restructurings in recent years, and have successfully cleaned-up their balance sheets, an act made much easier with strong steel market conditions in 2021 and 2022 that enabled the generation of significant operating cash flow. While steel market conditions have now descended off peak levels, hot rolled coil prices generally exhibited stable pricing dynamics in 2023, despite the demand hiccup caused by the big-three automaker strike. Stelco and Algoma are still managing to generate strong operating cash flows relative to their market capitalizations, although Algoma is engaged in a significant capital project to expand capacity and convert its steel-making process over to electric arc furnace smelting, which is requiring heavy capital investment in 2024. Both companies continue to trade at inexpensive valuations that remain well beneath the replacement cost of the assets.

BSD Analysis:
Algoma Steel Group is a high-conviction value play in 2026, currently trading at a significant discount to its intrinsic value as it nears the completion of its transformational electric arc furnace (EAF) project. The company recently gained further market attention following a strategic agreement with Hanwha Ocean for the Canadian Patrol Submarine Project, which includes a potential $250 million package for mill investments. While the firm has faced short-term net losses, technical indicators have inflected positively, with volume and price momentum signaling a potential breakout as the market anticipates a return to profitability. Analysts highlight the massive valuation gap, with the stock’s current price representing a steep discount to future cash flow estimates once the cleaner, more efficient EAF operations are fully online. Algoma’s pivot toward sustainable steelmaking and its strategic role in national defense projects position it as a unique industrial compounder. The stock offers substantial upside for investors willing to look past near-term volatility toward a more efficient and profitable future.

Pitch Summary:
Equinox shares were up 48.5 percent over the year, adding 1.53 percentage points to Fund returns as construction on the company’s Greenstone project progressed almost to the point of full completion. Fortunately for Equinox, mine construction has proceeded both on-schedule and on-budget, relieving investors previously concerned over potentially costly project overruns and delays. Over the year, our Fund’s precious metals mining positions were respectable contributors to overall Fund performance, adding 1.84 percentage points in aggregate returns. This group of holdings was anchored by positions in four large precious metals producers: Minera Alamos (MAI-V), Orezone Gold (ORE-TO), Centerra Gold (CG-TO) and Equinox (EQX). Together, these four holdings comprised 13.7 percent of Fund assets at the start of 2023.

BSD Analysis:
Equinox Gold is entering 2026 in a transformed financial and operational state, having successfully ramped up its cornerstone Canadian assets, Greenstone and Valentine. The company's 2026 guidance anticipates substantial production growth, with Greenstone alone expected to contribute between 250,000 and 300,000 ounces at competitive sustaining costs. This production surge has allowed the firm to significantly reduce net debt while initiating its inaugural quarterly cash dividend and a share buyback program. Management’s clear focus on cost control and disciplined capital allocation is driving a re-rating of the stock toward top-quartile valuation levels. With nearly 80% of its asset value now concentrated in tier-one North American jurisdictions, the company offers a much lower risk profile than in previous years. Equinox is now firmly established as a premier mid-tier producer with a visible path to exceeding one million ounces of annual gold production.

Pitch Summary:
Centerra Gold shares were also up, climbing 15.3 percent over the year, adding 0.68 percentage points to Fund returns as the company received regulatory approvals from the Turkish government to allow its Oksut mine to resume gold processing operations. The Turkish mine had suffered a costly shutdown and a difficult re-permitting process after arsenic was found leaking in the gold-room, requiring a refurbishment of the processing equipment. With the resumed Turkish operations in 2023, company cash flows and market sentiment towards Centerra markedly improved. Over the year, our Fund’s precious metals mining positions were respectable contributors to overall Fund performance, adding 1.84 percentage points in aggregate returns. This group of holdings was anchored by positions in four large precious metals producers: Minera Alamos (MAI-V), Orezone Gold (ORE-TO), Centerra Gold (CG-TO) and Equinox (EQX).

BSD Analysis:
Centerra Gold has emerged as a consensus favorite in early 2026, receiving a moderate buy rating from analysts who point to its diversified production base across North America and Türkiye. The company’s 2026 outlook is bolstered by the reliable performance of the Mount Milligan and Öksüt mines, which serve as primary engines for strong free cash flow. With a healthy net cash position and a disciplined capital allocation strategy, Centerra is well-positioned to fund its organic growth pipeline, including the Goldfield District and Kemess projects. Analysts have recently raised price targets, citing the firm's resilience in a volatile commodity environment and its successful integration of ESG-focused mining technologies. The stock is increasingly viewed as a barometer for investor sentiment in the mid-tier gold sector, offering both defensive stability and growth potential. As gold remains a preferred safe-haven asset, Centerra’s operational flexibility and strong balance sheet make it a standout investment choice.

Pitch Summary:
Orezone Gold most negatively impacted the Fund’s performance in 2023, with the position costing the Fund 1.30 percentage points. Shares of the Canadian mining company, with a single producing mine in central Burkina Faso, dropped 31.1 percent in 2023 as investor sentiment towards the West African country rapidly soured. Burkina’s geopolitical environment has been deteriorating following a series of coup d’etas that initially overthrew the country’s President and later resulted in the expulsion of French military units from the country amid widespread anger and frustration over the inability of Burkina’s armed forces to deal effectively with ISIS related terrorist groups that have wreaked havoc across large swaths of the Country’s northern and eastern provinces. While the civil unrest in the country is disconcerting, Orezone’s Bombore mine lies in close proximity to the country’s capital city and appears to be located well within a zone comfortably controlled by the country’s military. Indeed, the company appears to enjoy strong governmental backing and is contemplating a high-return, $170 million brownfields expansion of its operations, which has the potential to grow production by more than 50 percent and generate at current gold prices close to $200 million per year in operating cash flow starting in 2026. Considering Orezone trades at a $215 million market cap and envisions the expansion to be largely self-funded, we consider the risk/reward prospects quite appealing. Management is heavily invested in the company and has a strong historic record of shareholder value creation. Furthermore, the company’s land concession appears to hold strong near-mine prospects for reserve growth that could be substantially additive to mine economics. We currently intend to ride-out the difficult political conditions in Burkina and maintain our position in Orezone, which represented 2.74 percent of Fund assets at year-end.

BSD Analysis:
Orezone Gold is demonstrating strong technical and operational momentum in early 2026, with the stock recently showing a consistent upward trend and strong buy signals from major moving averages. Analysts highlight the company’s flagship Bomboré mine as a cornerstone asset that continues to benefit from the prevailing bullish gold market, with short-term price forecasts suggesting significant upside potential. While the stock is categorized as high-risk due to inherent mining volatility, its increasing trading volume and higher liquidity are reducing general investment risks. Management is focused on maintaining steady production while exploring expansion opportunities to further enhance the net present value of its core West African holdings. Support levels at $1.69 provide a technical floor for investors looking to capitalize on corrections in a broader rising trend. For those seeking leveraged exposure to gold, Orezone offers a disciplined operational track record and a clear path toward sustained cash flow generation.

Pitch Summary:
Minera Alamos shares declined 25.7 percent, costing the Fund 0.90 percentage points. Shares in the Mexican mining concern, which has one small heap leach project in operation and another highly economic project at the permitting stage, came under selling pressure amid a difficult seasonal draught as well as a number of government permit processing delays, which impacted gold production volumes and resulted in production ramp-up delays. While the draught has reportedly now ended, allowing its operating mine to re-start, the required regulatory permits necessary to effectively further build-out each mine remain unissued. While we are concerned with the growing difficulties and delays mining companies are facing doing business under the increasingly bureaucratic Mexican administration, we currently intend to maintain our position in Minera Alamos as the well-experienced, Mexico-focused management team is hoping and expecting to see permits approved within the short-term. Minera Alamos’ President also appears to be backing his expectations with his pocketbook, purchasing Minera shares in the open market.

BSD Analysis:
Minera Alamos has entered 2026 with a significantly strengthened operational profile following the early integration of the Pan Operating Complex in Nevada. The company’s 2026 guidance for the Pan mine targets gold production between 32,000 and 38,000 ounces, supported by a strategic shift to a new mining contractor to enhance fleet productivity. While all-in sustaining costs (AISC) are projected in the range of $1,850 to $2,000 per ounce due to increased waste stripping and higher royalties, these investments are designed to unlock future expansion and extend mine life. A substantial non-sustaining capital budget of $13.5 million for capitalized stripping at the South pit underscores management's commitment to long-term scalability. With a robust cash balance and ongoing optimizations to capitalize on the current high gold price environment, Minera Alamos is successfully transitioning into a multi-mine producer. The stock remains a compelling growth play as the company leverages its low-capital intensity model to build a diversified mid-tier mining platform.

Pitch Summary:
Axsome Therapeutics Inc. (AXSM) was a new addition to investor portfolios in January and has been a positive contributor since. Axsome is a biopharmaceutical company focused on central nervous system conditions such as Alzheimer's Disease Agitation, Major Depressive Disorder, Migraines, and Fibromyalgia. Their products target a broad range of serious conditions that impact over 150 million people in the United States. Axsome has 3 products commercially available today with 3 others in late stages of approval. These products have the potential to provide over $16 billion in peak sales in comparison to Asxome's $385 million of revenue in 2024. Auvelity is an oral drug used for the treatment of major depressive disorder (MDD). It was approved by the FDA in August of 2022 and has quickly ramped to over $290 million in sales in 2024. Sunosi, another one of Axsome's products, is an oral drug for the treatment of excessive daytime sleepiness also known as EDS in patients with sleep apnea and narcolepsy. The drug was approved by the FDA in 2022 and has ramped to $94 million in 2024. Symbravo, a drug used for acute treatment of Migraine was approved by the FDA in January 2025. The 3 drugs in late stages of approval include the treatment of Alzheimer's Disease Agitation which has data readouts later in Q1 2025, one for the treatment of Fibromyalgia, and another for Attention Deficit Disorder. We believe the company is an attractive acquisition candidate for a larger pharmaceutical company and we continue to hold AXSM stock in investor portfolios.

BSD Analysis:
The manager presents Axsome as an attractive CNS-focused biotech with significant commercial traction and pipeline upside potential. The investment thesis centers on the company's rapid commercialization success with Auvelity reaching $290 million in sales just two years post-approval, demonstrating strong market adoption for depression treatment. The broad CNS portfolio targeting 150 million affected Americans provides substantial market opportunity across multiple therapeutic areas. With three commercial products generating $385 million revenue and three late-stage candidates, the company has achieved meaningful scale while maintaining significant growth potential. The $16 billion peak sales estimate for the full portfolio suggests substantial upside from current revenue levels. Recent FDA approval of Symbravo for migraines adds another commercial driver, while upcoming Alzheimer's agitation data in Q1 2025 represents a major catalyst. The manager's acquisition thesis appears well-founded given the company's commercial success, diversified CNS pipeline, and attractive scale for larger pharmaceutical acquirers. The combination of proven commercial execution and multiple near-term catalysts supports the new position.

Pitch Summary:
Zeta Global Holdings Corp. (ZETA), which we identified in early 2022, has been a top performer, up over 165%. We trimmed the Zeta position in August and September as it reached an overly larger portion of investor portfolios. We continue to hold Zeta as a large weighting as we believe they can continue to take market share in the advertising industry. Zeta is a marketing technology software company which benefits from multiple market tailwinds in the advertising industry. Zeta's software platform combined with artificial intelligence helps companies' market more efficiently by targeting ads based on specific demographics. The Zeta marketing platform helps customers deliver advertisements through all channels such as email, social media, web, chat, connected TV and video. Zeta is unique in that their platform doesn't use cookies. This reduces risk from a regulatory and customer standpoint as they are not impacted by these issues. Consequently, they can take market share from competitors like Adobe, Salesforce, and Oracle who have all made legacy acquisitions to enter the space (valuations of 8-20x EV/Revenues). Oracle announced they would be exiting the advertising business on their Q4 2024 earnings call, creating an incremental revenue opportunity for Zeta. Despite broader softness in software spending, Zeta remains unaffected, citing a healthy demand environment. The company was founded by former Apple CEO, John Scully, and the management team has a strong track record of performance (the company has beat their revenue guidance for 11 consecutive quarters since their IPO in 2021). In early September, the company increased their 3rd quarter 2024 guidance to at least $255 million in revenue, representing year-over-year growth of at least 35%. This accelerated from Q2 growth of 33% and Q1 growth of 24%. We went into detail on the factors influencing their growth in our previous two quarterly letters, and since then the thesis has begun to play out. In mid-November, a short report by Culper Research was published on Zeta, causing the stock to drop 50% in a few days. There were multiple inaccuracies discovered in the report including the wrong auditor named as "E&Y" who has never audited Zeta (Deloitte has been their auditor since the 2021 IPO). We believe the management did a good job in refuting the claims made in the report and have since commented they have not lost a single customer because of it. In fact, they mentioned that 20+ customer upsells occurred during the quarter. Management remains confined they will report record revenues and profitability on their 4th quarter earnings call, upcoming on February 25th. Zeta management and board members personally purchased $3 million worth of stock in the days following the report in addition to the company initiating a $100 million stock repurchase program to buy their own shares on the open market. We remain confident in the trajectory of the business despite the noise and continue to hold Zeta stock in investor portfolios.

BSD Analysis:
The manager maintains conviction in Zeta despite recent volatility, viewing the short attack as a buying opportunity rather than fundamental concern. The investment thesis centers on Zeta's cookieless advertising platform providing competitive advantages as privacy regulations tighten and competitors struggle with legacy systems. Accelerating revenue growth from 24% to 35% demonstrates strong execution while competitors like Oracle exit the market, creating market share opportunities. The company's 11-quarter streak of beating guidance under former Apple CEO John Scully's leadership provides credibility to management's execution capabilities. Zeta's multi-channel platform spanning email, social, connected TV, and web provides comprehensive marketing solutions that competitors achieve only through expensive acquisitions. The short report's factual errors, including misidentifying the auditor, suggest poor research quality rather than legitimate concerns. Management's $3 million insider buying and $100 million buyback program demonstrates strong confidence in business fundamentals. The combination of accelerating growth, market share gains, and defensive positioning against privacy headwinds supports the manager's continued large weighting.

Pitch Summary:
Graham Corp. (GHM), a company we identified in 2023 at $13 per share, has been a top performer in investor portfolios. Historically, Graham has supplied industrial equipment like vacuum and heat transfer products for the global refining and petrochemical markets. With new management and an acquisition in 2021, Graham has diversified the business serving the defense, space, and new energy markets. The strategic focus has been on growing the defense business over the past 2 years. Graham sells critical propulsion equipment to the U.S. Navy for their nuclear submarines. They are the only supplier of the equipment they produce, giving them pricing power and margin enhancement as more subs are built. The U.S. has created the Pacific Deterrence Initiative (PDI) specifically aimed at deterring potential aggression from China in the Pacific Ocean, by bolstering U.S. military presence, and infrastructure. One of the ways the U.S. is accomplishing this is by growing and upgrading its fleet of Columbia and Virginia Class Nuclear Submarines. The U.S. has committed to building 11 more Columbia Class subs and 32 Virginia Class subs equating to $1.2-1.4 billion in projected revenue for Graham. These buildouts are expected to last through 2050. Graham carries a backlog of $385 million, of which 80% is for the defense industry. Their annual revenues are expected to be $200 million this year, giving them multi-year visibility. Graham has transformed from being highly cyclical to highly predictable over the last few years. We trimmed Graham stock in January and continue to hold a smaller weighting in investor portfolios.

BSD Analysis:
The manager identifies Graham as a successful transformation story from cyclical industrial supplier to predictable defense contractor with monopolistic characteristics. The investment thesis hinges on Graham's exclusive supplier status for nuclear submarine propulsion equipment, providing significant pricing power and margin expansion opportunities. The Pacific Deterrence Initiative creates a multi-decade revenue runway with $1.2-1.4 billion in committed submarine contracts extending through 2050. The company's $385 million backlog, 80% defense-related, provides exceptional revenue visibility compared to traditional cyclical industrials. At $200 million expected annual revenue, the committed submarine program represents 6-7 years of current revenue, demonstrating the scale of this opportunity. The strategic pivot under new management has successfully repositioned the company from volatile petrochemical markets to stable defense spending. The manager's decision to trim positions after strong performance while maintaining exposure shows confidence in the long-term defense spending cycle.

Pitch Summary:
Argan Inc. (AGX) was a top performer throughout 2024. Argan operates in the industrial construction industry building natural gas powerplants. The retirement of coal-fired power plants is driving a multi-year cycle of new natural gas fired power plant construction. Tightening environmental regulation, favorable economics, and the rise of artificial intelligence (AI) have propelled Argan stock to all-time highs. Argan builds these power plants for utility companies like Vistra and Duke Energy. There are shortages of power across the country where companies like Microsoft and Meta are building new AI data centers. These data centers consume extreme amounts of power which the current grid capacity is not suited for. We estimate the company is on a path to reach $1 billion in revenue and $100 million in EBITDA as this buildout happens. The company has a current project backlog of $800 million with visibility of growth to $2 billion. Argan holds $430 million in cash, no debt and is highly profitable. Additionally, they recently increased their quarterly dividend to $0.375 for an annual dividend yield of 1.5%. We sold Argan for investor portfolios in January as the stock rallied to $175 per share and our long-term price target was achieved.

BSD Analysis:
The manager presents a compelling bull case for Argan based on the structural shift from coal to natural gas power generation and the emerging AI data center power demand. The thesis centers on a multi-year construction cycle driven by environmental regulations and AI infrastructure needs, with major tech companies like Microsoft and Meta creating unprecedented power demand. The company's strong financial position with $430 million cash, zero debt, and $800 million backlog provides excellent visibility into future growth. Management's revenue projection of $1 billion and $100 million EBITDA suggests significant scaling potential from current levels. The recent dividend increase to 1.5% yield demonstrates management confidence in cash generation. The manager's decision to sell at $175 after achieving price targets shows disciplined profit-taking. The combination of secular tailwinds, strong balance sheet, and predictable project pipeline makes this an attractive infrastructure play.

Pitch Summary:
Axsome Therapeutics Inc. (AXSM) was a new addition to investor portfolios in January and has been a positive contributor since. Axsome is a biopharmaceutical company focused on central nervous system conditions such as Alzheimer's Disease Agitation, Major Depressive Disorder, Migraines, and Fibromyalgia. Their products target a broad range of serious conditions that impact over 150 million people in the United States. Axsome has 3 products commercially available today with 3 others in late stages of approval. These products have the potential to provide over $16 billion in peak sales in comparison to Asxome's $385 million of revenue in 2024. Auvelity is an oral drug used for the treatment of major depressive disorder (MDD). It was approved by the FDA in August of 2022 and has quickly ramped to over $290 million in sales in 2024. Sunosi, another one of Axsome's products, is an oral drug for the treatment of excessive daytime sleepiness also known as EDS in patients with sleep apnea and narcolepsy. The drug was approved by the FDA in 2022 and has ramped to $94 million in 2024. Symbravo, a drug used for acute treatment of Migraine was approved by the FDA in January 2025. The 3 drugs in late stages of approval include the treatment of Alzheimer's Disease Agitation which has data readouts later in Q1 2025, one for the treatment of Fibromyalgia, and another for Attention Deficit Disorder. We believe the company is an attractive acquisition candidate for a larger pharmaceutical company and we continue to hold AXSM stock in investor portfolios.

BSD Analysis:
The manager presents Axsome as a compelling growth story with significant revenue scaling potential from its CNS-focused drug portfolio. The investment thesis centers on the massive market opportunity of 150 million affected patients and the company's ability to capture meaningful market share. Current commercial products demonstrate strong execution with Auvelity reaching $290 million in sales within two years of approval. The pipeline's $16 billion peak sales potential versus current $385 million revenue suggests substantial upside if development programs succeed. Three late-stage programs provide multiple near-term catalysts, particularly the Alzheimer's Disease Agitation data readout in Q1 2025. The company's focus on underserved CNS conditions creates differentiated positioning in large addressable markets. Management's successful commercial execution with existing products de-risks the pipeline development strategy. The acquisition candidate thesis provides additional upside optionality given the company's specialized CNS expertise and commercial infrastructure.

Pitch Summary:
Zeta Global Holdings Corp. (ZETA), which we identified in early 2022, has been a top performer, up over 165%. We trimmed the Zeta position in August and September as it reached an overly larger portion of investor portfolios. We continue to hold Zeta as a large weighting as we believe they can continue to take market share in the advertising industry. Zeta is a marketing technology software company which benefits from multiple market tailwinds in the advertising industry. Zeta's software platform combined with artificial intelligence helps companies' market more efficiently by targeting ads based on specific demographics. The Zeta marketing platform helps customers deliver advertisements through all channels such as email, social media, web, chat, connected TV and video. Zeta is unique in that their platform doesn't use cookies. This reduces risk from a regulatory and customer standpoint as they are not impacted by these issues. Consequently, they can take market share from competitors like Adobe, Salesforce, and Oracle who have all made legacy acquisitions to enter the space (valuations of 8-20x EV/Revenues). Oracle announced they would be exiting the advertising business on their Q4 2024 earnings call, creating an incremental revenue opportunity for Zeta. Despite broader softness in software spending, Zeta remains unaffected, citing a healthy demand environment. The company was founded by former Apple CEO, John Scully, and the management team has a strong track record of performance (the company has beat their revenue guidance for 11 consecutive quarters since their IPO in 2021). In early September, the company increased their 3rd quarter 2024 guidance to at least $255 million in revenue, representing year-over-year growth of at least 35%. This accelerated from Q2 growth of 33% and Q1 growth of 24%. We went into detail on the factors influencing their growth in our previous two quarterly letters, and since then the thesis has begun to play out. In mid-November, a short report by Culper Research was published on Zeta, causing the stock to drop 50% in a few days. There were multiple inaccuracies discovered in the report including the wrong auditor named as "E&Y" who has never audited Zeta (Deloitte has been their auditor since the 2021 IPO). We believe the management did a good job in refuting the claims made in the report and have since commented they have not lost a single customer because of it. In fact, they mentioned that 20+ customer upsells occurred during the quarter. Management remains confined they will report record revenues and profitability on their 4th quarter earnings call, upcoming on February 25th. Zeta management and board members personally purchased $3 million worth of stock in the days following the report in addition to the company initiating a $100 million stock repurchase program to buy their own shares on the open market. We remain confident in the trajectory of the business despite the noise and continue to hold Zeta stock in investor portfolios.

BSD Analysis:
The manager maintains strong conviction in Zeta despite recent volatility, viewing the short attack as a buying opportunity rather than fundamental concern. The investment thesis centers on Zeta's cookieless advertising platform providing competitive advantages in an increasingly regulated environment. The company's accelerating revenue growth from 24% to 35% year-over-year demonstrates strong execution and market share gains. Oracle's exit from advertising creates additional market opportunity for Zeta to capture. Management's consistent guidance beats (11 consecutive quarters) and insider buying following the short report signal confidence in business fundamentals. The $100 million share repurchase program and $3 million insider purchases provide strong management alignment signals. Zeta's omnichannel platform and AI capabilities position it well against legacy competitors like Adobe and Salesforce who rely on acquisitions. The company's resilience during broader software spending weakness indicates strong competitive positioning and customer value proposition.

Pitch Summary:
Graham Corp. (GHM), a company we identified in 2023 at $13 per share, has been a top performer in investor portfolios. Historically, Graham has supplied industrial equipment like vacuum and heat transfer products for the global refining and petrochemical markets. With new management and an acquisition in 2021, Graham has diversified the business serving the defense, space, and new energy markets. The strategic focus has been on growing the defense business over the past 2 years. Graham sells critical propulsion equipment to the U.S. Navy for their nuclear submarines. They are the only supplier of the equipment they produce, giving them pricing power and margin enhancement as more subs are built. The U.S. has created the Pacific Deterrence Initiative (PDI) specifically aimed at deterring potential aggression from China in the Pacific Ocean, by bolstering U.S. military presence, and infrastructure. One of the ways the U.S. is accomplishing this is by growing and upgrading its fleet of Columbia and Virginia Class Nuclear Submarines. The U.S. has committed to building 11 more Columbia Class subs and 32 Virginia Class subs equating to $1.2-1.4 billion in projected revenue for Graham. These buildouts are expected to last through 2050. Graham carries a backlog of $385 million, of which 80% is for the defense industry. Their annual revenues are expected to be $200 million this year, giving them multi-year visibility. Graham has transformed from being highly cyclical to highly predictable over the last few years. We trimmed Graham stock in January and continue to hold a smaller weighting in investor portfolios.

BSD Analysis:
The manager identifies Graham as a successful transformation story from cyclical industrial supplier to predictable defense contractor with monopolistic positioning. The investment thesis hinges on Graham's exclusive supplier status for nuclear submarine propulsion equipment, creating significant pricing power and margin expansion opportunities. The Pacific Deterrence Initiative provides a compelling long-term growth catalyst with $1.2-1.4 billion in projected revenue visibility through 2050. The company's strategic pivot to defense (80% of $385 million backlog) has fundamentally altered the business model from cyclical to predictable cash flows. Management's acquisition strategy and business diversification have successfully repositioned the company for sustained growth. The substantial revenue opportunity from 43 new submarines represents multiple years of revenue growth from current $200 million annual run rate. The manager's position trimming after strong performance demonstrates prudent portfolio management while maintaining conviction in the long-term thesis.

Pitch Summary:
Argan Inc. (AGX) was a top performer throughout 2024. Argan operates in the industrial construction industry building natural gas powerplants. The retirement of coal-fired power plants is driving a multi-year cycle of new natural gas fired power plant construction. Tightening environmental regulation, favorable economics, and the rise of artificial intelligence (AI) have propelled Argan stock to all-time highs. Argan builds these power plants for utility companies like Vistra and Duke Energy. There are shortages of power across the country where companies like Microsoft and Meta are building new AI data centers. These data centers consume extreme amounts of power which the current grid capacity is not suited for. We estimate the company is on a path to reach $1 billion in revenue and $100 million in EBITDA as this buildout happens. The company has a current project backlog of $800 million with visibility of growth to $2 billion. Argan holds $430 million in cash, no debt and is highly profitable. Additionally, they recently increased their quarterly dividend to $0.375 for an annual dividend yield of 1.5%. We sold Argan for investor portfolios in January as the stock rallied to $175 per share and our long-term price target was achieved.

BSD Analysis:
The manager presents a compelling bull case for Argan based on the structural shift from coal to natural gas power generation and the emerging AI data center power demand. The thesis centers on a multi-year construction cycle driven by environmental regulations and AI infrastructure buildout. The company's strong financial position with $430 million cash, zero debt, and $800 million backlog provides excellent visibility into future revenue growth. Management's revenue projection of $1 billion and EBITDA target of $100 million suggests significant scaling potential from current levels. The monopolistic positioning as a specialized natural gas power plant constructor for major utilities creates pricing power. The dividend increase to 1.5% yield demonstrates management confidence in cash generation. The manager's decision to sell at $175 after achieving price targets shows disciplined profit-taking execution.

Pitch Summary:
Axsome Therapeutics Inc. (AXSM) was a new addition to investor portfolios in January and has been a positive contributor since. Axsome is a biopharmaceutical company focused on central nervous system conditions such as Alzheimer's Disease Agitation, Major Depressive Disorder, Migraines, and Fibromyalgia. Their products target a broad range of serious conditions that impact over 150 million people in the United States. Axsome has 3 products commercially available today with 3 others in late stages of approval. These products have the potential to provide over $16 billion in peak sales in comparison to Asxome's $385 million of revenue in 2024. Auvelity is an oral drug used for the treatment of major depressive disorder (MDD). It was approved by the FDA in August of 2022 and has quickly ramped to over $290 million in sales in 2024. Sunosi, another one of Axsome's products, is an oral drug for the treatment of excessive daytime sleepiness also known as EDS in patients with sleep apnea and narcolepsy. The drug was approved by the FDA in 2022 and has ramped to $94 million in 2024. Symbravo, a drug used for acute treatment of Migraine was approved by the FDA in January 2025. The 3 drugs in late stages of approval include the treatment of Alzheimer's Disease Agitation which has data readouts later in Q1 2025, one for the treatment of Fibromyalgia, and another for Attention Deficit Disorder. We believe the company is an attractive acquisition candidate for a larger pharmaceutical company and we continue to hold AXSM stock in investor portfolios.

BSD Analysis:
The manager presents Axsome as a compelling growth story with significant revenue scaling potential from its CNS-focused drug portfolio. The investment thesis centers on the massive market opportunity of 150 million affected patients and the company's ability to capture meaningful market share. Current commercial products demonstrate strong execution with Auvelity reaching $290 million in sales within two years of approval. The pipeline's $16 billion peak sales potential versus current $385 million revenue suggests substantial upside if development programs succeed. Three late-stage programs provide multiple near-term catalysts, particularly the Alzheimer's Disease Agitation data readout in Q1 2025. The company's focus on underserved CNS conditions creates differentiated positioning in large addressable markets. Management's successful commercial execution with existing products de-risks the pipeline development strategy. The acquisition candidate thesis provides additional upside optionality given the company's specialized CNS expertise and commercial infrastructure.

Pitch Summary:
Zeta Global Holdings Corp. (ZETA), which we identified in early 2022, has been a top performer, up over 165%. We trimmed the Zeta position in August and September as it reached an overly larger portion of investor portfolios. We continue to hold Zeta as a large weighting as we believe they can continue to take market share in the advertising industry. Zeta is a marketing technology software company which benefits from multiple market tailwinds in the advertising industry. Zeta's software platform combined with artificial intelligence helps companies' market more efficiently by targeting ads based on specific demographics. The Zeta marketing platform helps customers deliver advertisements through all channels such as email, social media, web, chat, connected TV and video. Zeta is unique in that their platform doesn't use cookies. This reduces risk from a regulatory and customer standpoint as they are not impacted by these issues. Consequently, they can take market share from competitors like Adobe, Salesforce, and Oracle who have all made legacy acquisitions to enter the space (valuations of 8-20x EV/Revenues). Oracle announced they would be exiting the advertising business on their Q4 2024 earnings call, creating an incremental revenue opportunity for Zeta. Despite broader softness in software spending, Zeta remains unaffected, citing a healthy demand environment. The company was founded by former Apple CEO, John Scully, and the management team has a strong track record of performance (the company has beat their revenue guidance for 11 consecutive quarters since their IPO in 2021). In early September, the company increased their 3rd quarter 2024 guidance to at least $255 million in revenue, representing year-over-year growth of at least 35%. This accelerated from Q2 growth of 33% and Q1 growth of 24%. We went into detail on the factors influencing their growth in our previous two quarterly letters, and since then the thesis has begun to play out. In mid-November, a short report by Culper Research was published on Zeta, causing the stock to drop 50% in a few days. There were multiple inaccuracies discovered in the report including the wrong auditor named as "E&Y" who has never audited Zeta (Deloitte has been their auditor since the 2021 IPO). We believe the management did a good job in refuting the claims made in the report and have since commented they have not lost a single customer because of it. In fact, they mentioned that 20+ customer upsells occurred during the quarter. Management remains confined they will report record revenues and profitability on their 4th quarter earnings call, upcoming on February 25th. Zeta management and board members personally purchased $3 million worth of stock in the days following the report in addition to the company initiating a $100 million stock repurchase program to buy their own shares on the open market. We remain confident in the trajectory of the business despite the noise and continue to hold Zeta stock in investor portfolios.

BSD Analysis:
The manager maintains strong conviction in Zeta despite recent volatility, viewing the short attack as a buying opportunity rather than fundamental concern. The investment thesis centers on Zeta's cookieless advertising platform providing competitive advantages in an increasingly regulated environment. The company's accelerating revenue growth from 24% to 35% year-over-year demonstrates strong execution and market share gains. Oracle's exit from advertising creates additional market opportunity for Zeta to capture. Management's consistent guidance beats (11 consecutive quarters) and insider buying following the short report signal confidence in business fundamentals. The $100 million share repurchase program and $3 million insider purchases provide strong management alignment signals. Zeta's omnichannel platform and AI capabilities position it well against legacy competitors like Adobe and Salesforce who rely on acquisitions. The company's resilience during broader software spending weakness indicates strong competitive positioning and customer value proposition.

Pitch Summary:
Graham Corp. (GHM), a company we identified in 2023 at $13 per share, has been a top performer in investor portfolios. Historically, Graham has supplied industrial equipment like vacuum and heat transfer products for the global refining and petrochemical markets. With new management and an acquisition in 2021, Graham has diversified the business serving the defense, space, and new energy markets. The strategic focus has been on growing the defense business over the past 2 years. Graham sells critical propulsion equipment to the U.S. Navy for their nuclear submarines. They are the only supplier of the equipment they produce, giving them pricing power and margin enhancement as more subs are built. The U.S. has created the Pacific Deterrence Initiative (PDI) specifically aimed at deterring potential aggression from China in the Pacific Ocean, by bolstering U.S. military presence, and infrastructure. One of the ways the U.S. is accomplishing this is by growing and upgrading its fleet of Columbia and Virginia Class Nuclear Submarines. The U.S. has committed to building 11 more Columbia Class subs and 32 Virginia Class subs equating to $1.2-1.4 billion in projected revenue for Graham. These buildouts are expected to last through 2050. Graham carries a backlog of $385 million, of which 80% is for the defense industry. Their annual revenues are expected to be $200 million this year, giving them multi-year visibility. Graham has transformed from being highly cyclical to highly predictable over the last few years. We trimmed Graham stock in January and continue to hold a smaller weighting in investor portfolios.

BSD Analysis:
The manager identifies Graham as a successful transformation story from cyclical industrial supplier to predictable defense contractor with monopolistic positioning. The investment thesis hinges on Graham's exclusive supplier status for nuclear submarine propulsion equipment, creating significant pricing power and margin expansion opportunities. The Pacific Deterrence Initiative provides a compelling long-term growth catalyst with $1.2-1.4 billion in projected revenue visibility through 2050. The company's strategic pivot to defense (80% of $385 million backlog) has fundamentally altered the business model from cyclical to predictable cash flows. Management's acquisition strategy and business diversification have successfully repositioned the company for sustained growth. The substantial revenue opportunity from 43 new submarines represents multiple years of revenue growth from current $200 million annual run rate. The manager's position trimming after strong performance demonstrates prudent portfolio management while maintaining conviction in the long-term thesis.

Pitch Summary:
Argan Inc. (AGX) was a top performer throughout 2024. Argan operates in the industrial construction industry building natural gas powerplants. The retirement of coal-fired power plants is driving a multi-year cycle of new natural gas fired power plant construction. Tightening environmental regulation, favorable economics, and the rise of artificial intelligence (AI) have propelled Argan stock to all-time highs. Argan builds these power plants for utility companies like Vistra and Duke Energy. There are shortages of power across the country where companies like Microsoft and Meta are building new AI data centers. These data centers consume extreme amounts of power which the current grid capacity is not suited for. We estimate the company is on a path to reach $1 billion in revenue and $100 million in EBITDA as this buildout happens. The company has a current project backlog of $800 million with visibility of growth to $2 billion. Argan holds $430 million in cash, no debt and is highly profitable. Additionally, they recently increased their quarterly dividend to $0.375 for an annual dividend yield of 1.5%. We sold Argan for investor portfolios in January as the stock rallied to $175 per share and our long-term price target was achieved.

BSD Analysis:
The manager presents a compelling bull case for Argan based on the structural shift from coal to natural gas power generation and the emerging AI data center power demand. The thesis centers on a multi-year construction cycle driven by environmental regulations and AI infrastructure buildout. The company's strong financial position with $430 million cash, zero debt, and $800 million backlog provides excellent visibility into future revenue growth. Management's revenue projection of $1 billion and EBITDA target of $100 million suggests significant scaling potential from current levels. The monopolistic positioning as a specialized natural gas power plant constructor for major utilities creates pricing power. The dividend increase to 1.5% yield demonstrates management confidence in cash generation. The manager's decision to sell at $175 after achieving price targets shows disciplined profit-taking execution.

Pitch Summary:
Axsome Therapeutics Inc. (AXSM) was a new addition to investor portfolios in January and has been a positive contributor since. Axsome is a biopharmaceutical company focused on central nervous system conditions such as Alzheimer's Disease Agitation, Major Depressive Disorder, Migraines, and Fibromyalgia. Their products target a broad range of serious conditions that impact over 150 million people in the United States. Axsome has 3 products commercially available today with 3 others in late stages of approval. These products have the potential to provide over $16 billion in peak sales in comparison to Asxome's $385 million of revenue in 2024. Auvelity is an oral drug used for the treatment of major depressive disorder (MDD). It was approved by the FDA in August of 2022 and has quickly ramped to over $290 million in sales in 2024. Sunosi, another one of Axsome's products, is an oral drug for the treatment of excessive daytime sleepiness also known as EDS in patients with sleep apnea and narcolepsy. The drug was approved by the FDA in 2022 and has ramped to $94 million in 2024. Symbravo, a drug used for acute treatment of Migraine was approved by the FDA in January 2025. The 3 drugs in late stages of approval include the treatment of Alzheimer's Disease Agitation which has data readouts later in Q1 2025, one for the treatment of Fibromyalgia, and another for Attention Deficit Disorder. We believe the company is an attractive acquisition candidate for a larger pharmaceutical company and we continue to hold AXSM stock in investor portfolios.

BSD Analysis:
The manager presents Axsome as a compelling growth story with significant revenue scaling potential from its CNS-focused drug portfolio. The investment thesis centers on the massive market opportunity of 150 million affected patients and the company's ability to capture meaningful market share. Current commercial products demonstrate strong execution with Auvelity reaching $290 million in sales within two years of approval. The pipeline's $16 billion peak sales potential versus current $385 million revenue suggests substantial upside if development programs succeed. Three late-stage programs provide multiple near-term catalysts, particularly the Alzheimer's Disease Agitation data readout in Q1 2025. The company's focus on underserved CNS conditions creates differentiated positioning in large addressable markets. Management's successful commercial execution with existing products de-risks the pipeline development strategy. The acquisition candidate thesis provides additional upside optionality given the company's specialized CNS expertise and commercial infrastructure.

Pitch Summary:
Zeta Global Holdings Corp. (ZETA), which we identified in early 2022, has been a top performer, up over 165%. We trimmed the Zeta position in August and September as it reached an overly larger portion of investor portfolios. We continue to hold Zeta as a large weighting as we believe they can continue to take market share in the advertising industry. Zeta is a marketing technology software company which benefits from multiple market tailwinds in the advertising industry. Zeta's software platform combined with artificial intelligence helps companies' market more efficiently by targeting ads based on specific demographics. The Zeta marketing platform helps customers deliver advertisements through all channels such as email, social media, web, chat, connected TV and video. Zeta is unique in that their platform doesn't use cookies. This reduces risk from a regulatory and customer standpoint as they are not impacted by these issues. Consequently, they can take market share from competitors like Adobe, Salesforce, and Oracle who have all made legacy acquisitions to enter the space (valuations of 8-20x EV/Revenues). Oracle announced they would be exiting the advertising business on their Q4 2024 earnings call, creating an incremental revenue opportunity for Zeta. Despite broader softness in software spending, Zeta remains unaffected, citing a healthy demand environment. The company was founded by former Apple CEO, John Scully, and the management team has a strong track record of performance (the company has beat their revenue guidance for 11 consecutive quarters since their IPO in 2021). In early September, the company increased their 3rd quarter 2024 guidance to at least $255 million in revenue, representing year-over-year growth of at least 35%. This accelerated from Q2 growth of 33% and Q1 growth of 24%. We went into detail on the factors influencing their growth in our previous two quarterly letters, and since then the thesis has begun to play out. In mid-November, a short report by Culper Research was published on Zeta, causing the stock to drop 50% in a few days. There were multiple inaccuracies discovered in the report including the wrong auditor named as "E&Y" who has never audited Zeta (Deloitte has been their auditor since the 2021 IPO). We believe the management did a good job in refuting the claims made in the report and have since commented they have not lost a single customer because of it. In fact, they mentioned that 20+ customer upsells occurred during the quarter. Management remains confined they will report record revenues and profitability on their 4th quarter earnings call, upcoming on February 25th. Zeta management and board members personally purchased $3 million worth of stock in the days following the report in addition to the company initiating a $100 million stock repurchase program to buy their own shares on the open market. We remain confident in the trajectory of the business despite the noise and continue to hold Zeta stock in investor portfolios.

BSD Analysis:
The manager maintains strong conviction in Zeta despite recent volatility, viewing the short attack as a buying opportunity rather than fundamental concern. The investment thesis centers on Zeta's cookieless advertising platform providing competitive advantages in an increasingly regulated environment. The company's accelerating revenue growth from 24% to 35% year-over-year demonstrates strong execution and market share gains. Oracle's exit from advertising creates additional market opportunity for Zeta to capture. Management's consistent guidance beats (11 consecutive quarters) and insider buying following the short report signal confidence in business fundamentals. The $100 million share repurchase program and $3 million insider purchases provide strong management alignment signals. Zeta's omnichannel platform and AI capabilities position it well against legacy competitors like Adobe and Salesforce who rely on acquisitions. The company's resilience during broader software spending weakness indicates strong competitive positioning and customer value proposition.