Investment Pitches

Pitch Summary:
Advanced Micro Devices (AMD) designs a broad range of digital semiconductors serving PCs, gaming consoles, and data centers, including the rapidly expanding AI market. Under CEO Lisa Su, the company was pulled back from the brink of bankruptcy and reshaped into a high-performance computing leader. Over the past decade, AMD has steadily taken market share from Intel and emerged as a credible No. 2 in GPUs behind Nvidia. Given AMD’s volatility, we initiated a position in November 2022 and added to it again in April 2025. Management has guided to approximately $10 in earnings per share for FY2027E and more than $20 in EPS by 2030E. If the company delivers on these targets, then it should be a $400+ stock in a few years, roughly 75% higher than current levels.

BSD Analysis:
AMD is no longer the underdog story — it’s a legitimate computing powerhouse fighting at the top end of the market. Its CPU franchise is solid, but the real debate is whether it can translate AI momentum into durable GPU and accelerator share. Competition with NVIDIA is brutal, but AMD doesn’t need to win outright to succeed. Data center penetration alone moves the earnings needle meaningfully. Execution and software ecosystem maturity are the gating factors. Margins expand if mix shifts as planned, but expectations are already high. This is not a cheap stock — it’s a capability bet. If AMD executes, it earns its valuation. If not, the market will be unforgiving.

Pitch Summary:
We initiated a position in Merck, a global biopharmaceutical company with strengthening product visibility and sustained leadership in oncology. Its flagship immuno-oncology therapy remains a key growth driver, with continued label expansion and a more robust late-stage pipeline enhancing future growth prospects. Merck maintains strong execution across oncology, vaccines, and animal health, with steady research investment and focused dealmaking supporting durable innovation and long-term value creation.

BSD Analysis:
Merck is anchored by one of the most successful oncology franchises in history, which continues to throw off enormous cash flow. Investors obsess over the patent cliff and underappreciate how much reinvestment that cash funds. The pipeline is broad enough to matter, not just optional. Pricing pressure is real, but outcomes still drive adoption. Capital allocation has balanced R&D and shareholder returns effectively. Execution risk is lower than most large pharma peers. This is pharma dominance transitioning into a reinvestment phase. The cliff is visible, but the bridge is being built.

Pitch Summary:
During the quarter, we initiated a position in Amphenol, a global leader in high-speed connectors and interconnect systems. Its products are critical for meeting demand for AI infrastructure and advanced semiconductors, particularly in data centers. Amphenol’s strength in AI enablement and custom solutions positions it to benefit from the need for rising connectivity speeds across next-generation technologies.

BSD Analysis:
Amphenol is a silent compounder embedded in nearly every growth theme without chasing narratives. Its connectors are small-ticket but mission-critical, creating real pricing power and brutal switching costs. Content per system keeps rising as electronics grow more complex across aerospace, defense, data centers, and industrial automation. Investors still misclassify Amphenol as a generic components supplier. Margins reflect engineering depth and customization, not commodity volume. Bolt-on acquisitions extend reach without diluting returns. When complexity increases, Amphenol collects tolls. This is infrastructure hidden inside hardware.

Pitch Summary:
We trimmed our position in Amkor Technology in the Information Technology sector. Amkor has done well in recent years, benefiting from the surging demand in AI and as a result has become less attractive from a valuation standpoint. While the stock still generates good cash flow, both earnings and cash flow have not kept up with the increase in stock price. Stock price momentum has been very strong but the decline in fundamentals (valuation) led us to sell the position.

BSD Analysis:
Amkor sits at the center of advanced semiconductor packaging, a segment growing more critical as chip complexity increases. Outsourced assembly and test isn’t glamorous, but it’s essential to performance and yield. AI, advanced packaging, and heterogeneous integration increase content per device. Investors treat Amkor like a commodity outsourcer and miss the technology upgrade cycle. Margins expand as mix shifts toward high-end packaging. Capital intensity is real, but customer dependence is growing. This is semiconductor infrastructure paid by physics, not hype.

Pitch Summary:
We sold our position in Electronic Arts in the Communication Services sector. Electronic Arts did well in 2025, advancing approximately 40% for the year. In late September, the company announced an agreement to be acquired by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners for $55 billion. The Fund often benefits from takeovers, as the companies we hold tend to be attractively priced, solid businesses that are undervalued, as was the case with Electronic Arts.

BSD Analysis:
EA owns some of the most durable franchises in gaming, where engagement extends far beyond initial releases. Live services and recurring monetization smooth the volatility of hit-driven economics. Sports titles function more like annual subscriptions than games. Investors fixate on release calendars and miss lifetime value dynamics. Development costs are high, but scale amortizes them effectively. New IP is optional, not existential. This is digital entertainment with infrastructure-like cash flow. When engagement persists, margins follow.

Pitch Summary:
We also initiated a position in EnerSys in the Industrials sector. EnerSys designs, manufactures, and distributes energy systems and batteries to customers worldwide. The stock ranks high on multiple cash flow and forecast earnings measure — our two most important blocks of valuation. The company typically pays a dividend and has been aggressively buying back stock, which we view positively. Price momentum over the past 12 months has been strong. In addition, several indicators of operating momentum are also attractive, with improving operating margins and growth in sales. Overall, the stock ranks in the top 5% in our stock-ranking universe, which led to the fourth quarter purchase.

BSD Analysis:
EnerSys is a critical supplier of industrial batteries and energy storage systems where uptime matters more than brand recognition. Its products support data centers, telecom networks, warehouses, and defense applications that can’t afford power interruptions. Demand is driven by infrastructure growth and replacement cycles, not consumer sentiment. Investors often overlook EnerSys because the technology isn’t flashy. Yet electrification, automation, and backup power needs quietly expand its addressable market. Margin improvement comes from mix shift toward higher-value solutions and services. Capital discipline matters more than volume growth here. This is energy storage infrastructure hiding inside an industrial ticker.

Pitch Summary:
We initiated a position in Garrett Motion, an automotive parts and equipment company in the Consumer Discretionary sector. The company designs, manufactures, and sells turbocharger and electric boosting technologies for commercial vehicles. Garrett ranks high on multiple cash flow and forecast earnings measures on our model. The company typically pays a dividend and has been aggressively buying back stock, which we view positively. Price momentum during the past 12 months has been strong as has operating momentum, placing its momentum scores near the top decile. Overall, the stock ranks in the top 5% in our stock-ranking universe, which led to the fourth quarter purchase.

BSD Analysis:
Garrett is a turbocharger and electrification components supplier benefiting from emissions regulation rather than engine nostalgia. Internal combustion isn’t disappearing overnight, and efficiency upgrades drive ongoing demand. Hybrid platforms extend the life of turbo technology. Investors fixate on EV disruption and miss cash flow durability. Capital discipline has improved post-restructuring. Electrified boosting adds optionality beyond legacy turbos. Cyclicality remains, but margins are better than pre-restructuring. This is auto supplier math, not an extinction event.

Pitch Summary:
Zenas BioPharma, Inc. is developing transformative therapies for patients with autoimmune diseases. Its lead drug, Obexelimab, is currently in Phase III clinical trials and appears on track for potential approval and launch in 2027. During the quarter, the stock performed strongly following encouraging Phase II trial data. While near-term price movements are data-driven, management remains focused on long-term value creation. Multiple indications could support annual revenues exceeding $1 billion if development is successful.

BSD Analysis:
Zenas is an early-stage biotech focused on immunology and inflammatory diseases, where clinical differentiation drives everything. The science targets high-value pathways, but proof-of-efficacy remains the gating factor. Investors appropriately treat the equity as binary at this stage. Capital needs will persist until late-stage clarity emerges. Partnerships and trial design matter as much as underlying biology. If data is clean and differentiated, valuation can reset quickly. If not, downside is severe. This is biotech optionality, not a compounder.

Pitch Summary:
Axogen, Inc. is a leader in technologies focused on peripheral nerve regeneration and repair. The company’s biologically active nerve graft platform reduces procedural risk by eliminating the need for secondary surgical sites. Shares advanced during the quarter following accelerated revenue growth of 20% and gross margins approaching 77%, exceeding investor expectations. Favorable reimbursement terms were secured, supporting broader hospital adoption. Additionally, FDA approval of a BLA submission without restrictive labeling granted 12 years of market exclusivity.

BSD Analysis:
Axogen operates in nerve repair, a niche medtech category with real unmet clinical need and limited direct competition. Clinical outcomes and surgeon training matter more than marketing spend, which slows adoption but strengthens long-term stickiness. Revenue growth has been uneven, testing investor patience and credibility. Cash burn and capital access remain real overhangs. That said, first-mover advantage and expanding clinical data support relevance. If utilization scales across trauma and surgical repair, operating leverage is substantial. This is not a gadget story — it’s procedural adoption risk. Execution, not science, decides the outcome.

Pitch Summary:
Structure Therapeutics, Inc. is focused on developing oral therapies targeting obesity and metabolic diseases. Its lead oral candidate demonstrated promising efficacy and a lower-than-anticipated discontinuation rate in Phase II trials, positioning it as a viable alternative to injectable GLP-1 drugs. Following the release of favorable clinical data, the stock advanced significantly during the quarter. A successful capital raise is expected to fund operations through Phase III trials. The oral delivery format and safety profile enhance its appeal as a potential acquisition target.

BSD Analysis:
Structure is a clinical-stage biotech targeting GPCRs with oral small molecules in massive metabolic disease markets. The opportunity is real, but so is the execution and clinical risk. Investors price the stock as a binary outcome because, at this stage, it is. Differentiation versus injectables is compelling if efficacy holds. Capital needs remain front and center until late-stage data provides clarity. Partnerships and trial design matter as much as science here. If data hits, re-rating is violent; if it misses, downside is obvious. This is high-conviction biotech optionality, not diversification.

Pitch Summary:
Remitly Global, Inc. is a digitally native money transfer firm gaining share in the cross-border remittance market, competing against established players such as Western Union and MoneyGram. The company has reached a scale that positions it for meaningful profitability improvement over time. Despite reporting robust quarterly earnings, the stock underperformed during the quarter. Management guidance pointed to a deceleration in revenue growth driven by difficult year-over-year comparisons and immigration-related headwinds. Nevertheless, Remitly continues to expand its market presence even amid a temporarily subdued demand environment.

BSD Analysis:
Remitly is building cross-border payments infrastructure focused on speed, trust, and transparency where banks consistently fail. Remittance flows are necessity-driven, making demand resilient even in weak macro conditions. Cohort economics improve meaningfully with scale as funding, fraud, and compliance costs fall. Investors fixate on marketing spend and miss customer lifetime value dynamics. Switching costs rise once users rely on the platform for recurring family transfers. Expansion into adjacent financial services increases monetization without rebuilding trust from scratch. FX volatility creates headline noise, not demand risk. This is fintech infrastructure quietly taking share from legacy rails.

Pitch Summary:
Certara, Inc. develops software and services that support drug development through biosimulation, modeling how investigational compounds interact at varied dosing levels with organs and other drugs. A large majority of recent FDA-approved drugs used a Certara solution during development. During the quarter, the stock underperformed due to weaker-than-expected service bookings, which led management to slightly lower guidance. The appointment of a new CEO has shifted the company toward a more commercially focused strategy. Additionally, the potential divestiture of a non-core, lower-moat business could simplify the story and improve growth focus.

BSD Analysis:
Certara sells decision-critical software embedded in drug development workflows where mistakes are expensive and reputations are permanent. Regulators increasingly expect quantitative modeling, which quietly entrenches Certara as infrastructure rather than optional tooling. Biotech funding cycles pressure growth optics, not customer dependence. Switching costs are intellectual and regulatory, not contractual, which is stronger than it looks on paper. Investors confuse slower bookings with competitive loss. Software margins scale as services become a smaller mix over time. Expansion comes from deeper penetration into existing accounts, not logo chasing. This is life sciences infrastructure compounding behind the scenes while sentiment chases shinier biotech stories.

Pitch Summary:
Consensus Cloud Solutions, Inc. is a leading supplier of secure data delivery for enterprise healthcare customers and cloud fax solutions to small office and home office users. The company has historically enjoyed a high percentage of recurring revenues, low churn in its enterprise segment, and high margins. During the quarter, however, the stock underperformed following a mixed earnings report and full-year guidance that disrupted the positive momentum established earlier in the year. Currently trading at less than four times earnings and with a free cash flow yield of approximately 22%, the company remains financially attractive. EBITDA margins exceed 50%, and a return to sustainable growth could materially enhance shareholder value.

BSD Analysis:
Consensus Cloud operates unglamorous but mission-critical communication infrastructure in regulated industries. Fax isn’t dead where compliance and security matter. Subscription revenue is sticky because workflows are embedded and regulated. Growth is slow, but cash flow is real. Investors dismiss the business as legacy tech. That misses the moat created by regulation and switching risk. Cloud transition improves margin durability. This is boring infrastructure that quietly prints cash.

Pitch Summary:
Exact Sciences Corp. is a cancer diagnostics company best known for Cologuard, its at-home screening test for colorectal cancer. The stock initially rose during the quarter on signs of reinvigorated growth and the introduction of a new test that drove revenue higher. Performance was further boosted when Abbott announced plans to acquire Exact Sciences at a significant premium.

BSD Analysis:
Exact Sciences sits at the intersection of diagnostics, screening compliance, and payer economics. Non-invasive cancer screening expands the funnel rather than cannibalizing procedures. Adoption depends on guideline support and physician workflows, not consumer marketing. Investors worry about losses and long commercialization timelines. Yet scale improves gross margins meaningfully over time. Pipeline extensions broaden relevance beyond colorectal cancer. Regulatory and reimbursement moats matter more than brand. This is diagnostics infrastructure playing the long game.

Pitch Summary:
Tandem Diabetes Care, Inc. develops advanced insulin delivery technologies for patients with diabetes. Its automated insulin delivery systems are positioned to gain share in a large and expanding market where many Type 1 diabetes patients still manage insulin manually. The stock appreciated during the quarter, supported by revenue that exceeded expectations and an encouraging growth outlook. Performance was bolstered by a higher proportion of sales through the pharmacy channel, which offers more favorable economics, and several pipeline products nearing commercialization.

BSD Analysis:
Tandem sells insulin pump systems in a category defined by outcomes and user experience. Its interface-first approach resonates with patients managing daily disease burden. Competition is intense, but switching devices is disruptive and slow. Reimbursement stability underpins demand visibility. Investors focus on growth deceleration and pricing pressure. Yet installed base expansion drives recurring consumables revenue. Pipeline improvements matter more than headline unit sales. This is chronic-care tech where loyalty compounds quietly.

Pitch Summary:
Globus Medical, Inc. is a medical technology company focused on spine implants and motion preservation solutions. The stock outperformed during the quarter, driven by management’s report of a re-acceleration in the core spine business to double-digit growth and evidence of renewed market share gains. Integration and profitability metrics from prior acquisitions are tracking ahead of expectations. With most integration initiatives substantially complete, the company appears well-positioned to benefit from improved operating leverage in 2026.

BSD Analysis:
Globus is a spine-focused medtech company that wins through surgeon alignment and procedural efficiency. Its product portfolio emphasizes ease-of-use and reproducibility, which drives adoption in operating rooms. Spine procedures are elective, but deferrals don’t cancel demand — they stack it. Investors worry about competitive pressure and pricing, but workflow integration matters more than device specs. Margin expansion follows scale and mix rather than price hikes. Innovation cadence has been consistent, not flashy. This is medtech execution over marketing. Surgeons stick with what works.

Pitch Summary:
Remitly Global, Inc. is a digitally native money transfer firm capturing market share in the cross-border remittance space, competing effectively against established players such as Western Union and MoneyGram. The company has reached a scale that positions it for potentially substantial improvements in profitability going forward. Despite reporting robust quarterly earnings, the stock underperformed during the quarter due to guidance indicating a deceleration in revenue growth from challenging year-over-year comparisons and immigration-related headwinds.

BSD Analysis:
Remitly is building cross-border payments infrastructure focused on speed, transparency, and trust rather than bank legacy systems. Migrant remittance flows are resilient even in weak macro environments because they’re necessity-driven. Unit economics improve materially as scale reduces funding and compliance costs. Investors fixate on near-term marketing spend and miss cohort-level profitability. Switching costs rise once users trust a platform with recurring transfers. Expansion into adjacent financial services extends lifetime value. FX volatility creates noise, not demand risk. This is payments infrastructure quietly taking share from banks.

Pitch Summary:
Doximity, Inc. operates a cloud-based digital platform for medical professionals, often described as the “LinkedIn for healthcare.” Its suite of tools supports patient care, telemedicine, clinical news, research, and career development, reaching approximately 80% of U.S. physicians. Despite reporting solid quarterly results, shares declined following guidance that fell short of consensus expectations, reflecting moderation in projected revenue growth and uncertainty around healthcare and pharmaceutical spending.

BSD Analysis:
Doximity owns a rare asset: a verified, engaged physician network with minimal churn. Advertising budgets fluctuate, but physician attention does not. Hospitals and pharma value access to trusted clinical audiences more than raw reach. The platform is asset-light, throwing off cash even in softer ad markets. Investors fixate on growth deceleration and ignore margin durability. Product expansion deepens engagement without bloating costs. Network effects strengthen as usage compounds. This is professional attention monetization, not social media noise.

Pitch Summary:
Certara, Inc. develops software and services that support drug development through biosimulation, modeling how investigational compounds interact at varied dosing levels with organs and other drugs. While the technology remains relatively early in adoption, a large majority of recent FDA-approved drugs used a Certara solution at some point in the development process. During the quarter, the company underperformed due to weaker-than-expected service bookings, which prompted management to slightly lower guidance. However, with the recent appointment of a new CEO who is adopting a more commercially focused strategy, as well as the potential divestiture of a non-core, lower-moat business segment, Certara is positioned to transform into a more focused, pure-play growth company.

BSD Analysis:
Certara sells decision-critical software and services embedded in drug development workflows where mistakes are expensive. Regulatory complexity and modeling requirements create real switching costs. Biotech funding cycles pressure growth optics, not relevance. The platform benefits as regulators increasingly expect quantitative modeling. Investors confuse slower bookings with competitive loss. High-margin software offsets lower-margin services over time. Expansion comes from deeper customer penetration, not logo chasing. This is life sciences infrastructure quietly compounding behind the scenes.

Pitch Summary:
Advanced Micro Devices, Inc. is a global semiconductor company that designs central processing units (CPUs) and graphics processing units (GPUs). We invested in AMD in 2018 when the company was emerging from a prolonged period of underperformance resulting from lagging technology and market share losses to Intel and Nvidia. Our research indicated that investments under CEO Lisa Su had resulted in compelling technology and competitive products. During the quarter, the stock reacted positively to continued progress by AMD to establish its GPU servers as a viable alternative to Nvidia’s offerings. We reduced our exposure into strength during the period as part of our risk-management practice.

BSD Analysis:
AMD is no longer just a challenger chip company; it’s a credible compute platform competing across CPUs, GPUs, and accelerators. Data center and AI workloads expand its addressable market even if timing remains volatile. Execution discipline has improved dramatically, which the market still underprices relative to legacy perceptions. PC cyclicality creates earnings noise but doesn’t undo share gains. Investors obsess over Nvidia comparisons and miss AMD’s positioning across broader compute stacks. Margins improve as mix shifts toward higher-value products. Roadmaps matter more than quarters here. This is silicon execution, not storytelling.