Investment Pitches

Pitch Summary:
Kaspi is a Kazakhstan-based tech titan listed on the London Stock Exchange. The company operates a super app that encompasses payments, a third-party marketplace, and fintech, reigning as the unequivocal leader in each category in Kazakhstan, with no close substitutes or competitors. Like most successful flywheel businesses, Kaspi is a highly profitable (44% net margin) cash flow gusher (9.4% FCF yield) with a net cash balance sheet. Kaspi's economic moat is formidable. Its super app has created a powerful flywheel and network effect as more consumers attract more merchants, and vice versa. For instance, the company leverages customer data from the marketplace to make more informed lending decisions to merchants, thereby improving the delinquency rate. Its marketplace utilizes proprietary data from fintech and payments to track customer buying patterns and deploy precise targeted ads, stimulating purchases. Additionally, its payment system is seamlessly integrated into the marketplace, simplifying transactions for consumers. To illustrate the company's dominance, it stands as one of the few enterprises globally that could displace Visa and Mastercard as a country's primary payment platform. It's also an app that is deeply embedded into users' lives. Consumers can fulfill all their essential needs, including obtaining their PCR results, receiving pensions, registering their cars, and paying taxes and state duties through the app. Consequently, the company maintains a near 100% consumer and merchant retention rate, coupled with a near 90 net promoter score, outclassing companies like Google and other world-class enterprises. The company also possesses substantial room for growth. The user overlap across its services stands at a mere 38%, leaving ample space for cross-selling. Given the company's existing technology infrastructure, replicating the model and expanding into adjacent services and other regions of Central Asia—where digital adoption is still in its infancy and the population is young and growing—would be relatively easy. We hold a strong belief in the company's ability to execute successful expansion and maintain a >30% growth rate for the foreseeable future, given the management team's impeccable track record of execution. The entire management team, which comprised of all Harvard graduates, orchestrated a remarkable transformation in 2008. They strategically divested 95% of the commercial banking businesses and redirected their focus to the remaining 5% retail banking businesses, recognizing retail is a tech-driven game where companies can breed a lasting competitive edge. This calculated long-term vision proved pivotal. Within just 11 years, the company secured commanding market shares of 41% in e-commerce, 35% in payments, and 31% in consumer finance. Importantly, the company seemed to have figured out the winning formula. When the company introduced its POS system in 2020, it secured over 51% of the market share in just a year. The same trend was observed in its P2P business; the company initially held a mere 2% market share in the space, but twelve months later, it dominated with a 66% market share. We believe the management team is highly incentivized to continue its flawless execution, as the team and its private equity backer, which also funded Yandex, the Google of Russia, have a combined ~80% interest in the company. Despite being one of the most impressive flywheel businesses I've encountered in my investing career and ranking as a top company on the London Stock Exchange in terms of net income, revenue growth, and net profit margin, Kaspi currently trades at a modest 8.5x forward earnings multiple. We believe the undervaluation is attributed to its classification as an emerging market business, a factor that often deters institutional investors. Moreover, concerns revolving around the ongoing Russia-Ukraine conflict have further widened this value disconnection. Contrary to the market, our extensive research has unveiled a promising outlook. Kazakhstan's Prime Minister has adeptly seized on the opportunity to position the country as a viable replacement for Russia, actively working to transform Kazakhstan into the central corridor of trade between Europe and China. Notably, trade has picked up in Kazakhstan since the conflict's onset, with China trade alone up by 22% in the first half of 2023. Additionally, Kazakhstani companies like Air Astana have announced ambitious plans to expand their fleet by almost 50% by 2025 due to their confidence in the country's growth trajectory. We believe once the disconnection reconciles, along with a potential U.S. uplisting, Kaspi's share price could appreciate 100%+ over the next 2-3 years.

BSD Analysis:
The manager presents Kaspi as a dominant Kazakhstan-based super app with exceptional fundamentals, trading at 8.5x forward earnings despite 44% net margins and 9.4% free cash flow yield. The investment thesis centers on powerful network effects across payments, marketplace, and fintech platforms, with near-monopolistic market positions (41% e-commerce, 35% payments, 31% consumer finance). The company demonstrates remarkable execution speed, capturing majority market share in new verticals within 12 months. Key growth drivers include low 38% cross-selling penetration and expansion opportunities across Central Asia's underpenetrated digital markets. The manager expects 30%+ growth rates supported by Harvard-educated management with proven track record and 80% insider ownership. Geopolitical concerns around Russia-Ukraine conflict create temporary valuation disconnect, but Kazakhstan's positioning as Europe-China trade corridor presents upside catalyst. The manager anticipates 100%+ appreciation over 2-3 years driven by multiple expansion and potential US listing.

Pitch Summary:
Headquartered in Cambodia and listed on the Hong Kong Exchange, Nagacorp (3918.HK) operates a Vegas-style gaming and entertainment hub in the heart of Cambodia's capital, Phnom Penh. The company obtained a 70-year casino license from the government in 1995 and holds the exclusive right to run casinos within a 200-km radius of Phnom Penh until 2045. Nagacorp operates as a highly competitive monopoly and functions as a structural low-cost provider, leading to an impressive financial performance. The company achieved an industry-leading 24% return on investment and a 30% net margin over the five years leading up to the pandemic. Nagacorp's economic moat is solidified by its CEO and majority owner's close relationship with the government and the firm's significance as one of the most successful foreign direct investments in the country. The economically aligned interest has facilitated the company in securing advantageous tax deals and extending its monopoly license at bargain prices over the years. The Chinese government's crackdown on junket players and the slower-than-expected post-Covid Chinese tourism recovery, along with "scamdemic" in Southeast Asia, have created a compelling opportunity to invest in this undervalued, small-cap emerging market business with limited coverage. While there is no guarantee that the market would not further discount Nagacorp's stock price, especially as foreign capital continues to flee from Hong Kong, we believe the company's decade-low valuation has provided a sufficient margin of safety for our investment. The company currently trades at a forward price-to-earnings (P/E) ratio of 6.3x. The market values the firm at $2.0B, a figure lower than the market value of its real estate, which Collier International assessed at $5.1B+ back in 2017. We firmly believe that the firm's real estate value has appreciated since then, particularly given Cambodia's continued attraction of record levels of foreign investment from China due to the 'One Belt One Road' initiative. Even under the most conservative assumptions that overlook demographic, geopolitical, and infrastructural tailwinds that could further enhance the company's value over time, we anticipate the firm's share price to easily double by 2030 following the commencement of its new casino, Naga 3.

BSD Analysis:
The manager presents a compelling deep value thesis on Nagacorp, emphasizing the company's monopolistic position in Cambodia's gaming market with exclusive casino rights within 200km of Phnom Penh until 2045. The investment case centers on exceptional historical profitability (24% ROI, 30% net margins pre-pandemic) and current extreme undervaluation at 6.3x forward P/E. The manager highlights significant asset backing, with real estate valued at $5.1B+ in 2017 versus current market cap of $2.0B. Key catalysts include the upcoming Naga 3 casino opening and potential recovery in Chinese tourism post-COVID. The thesis acknowledges near-term headwinds from Chinese government crackdowns on junket operations and slower tourism recovery, but views these as temporary factors creating the investment opportunity. The manager expects shares to double by 2030, supported by Cambodia's strategic positioning in China's Belt and Road initiative.

Pitch Summary:
Tweet: Being investigated by government agencies due to its 'for profit' status; structurally challenged business; less than 50% graduation rate; unable to raise pricing;

BSD Analysis:
Grand Canyon provides outsourced services (curriculum, tech platform, marketing, support) primarily to Grand Canyon University (GCU). The short case revolves around customer concentration, regulatory scrutiny, and cash flow dependence on a single relationship. Nearly all revenue comes from GCU under a long-term service agreement—making LOPE effectively a mono-client service provider. This structure has drawn repeated regulatory questions around independence, non-profit status, and whether GCU is essentially an arm of LOPE. Growth is capped by GCU’s enrollment trajectory, which has matured. Diversification into new clients has been limited, raising long-term sustainability concerns. The stock has a strong cash profile, but critics argue that LOPE trades more like a diversified ed-tech platform than the concentrated service provider it actually is.

Pitch Summary:
Deere ($378.39 DE), the leading agriculture provider globally, is advancing autonomous tractors. The stock has not performed well this year after a strong 2022 as investors question if the current cycle for equipment sales has run its course, but the innovation and labor savings may be pushing to the current cycle a long-term trend. Also note, Nvidia is one of Deere's top suppliers.

BSD Analysis:
The manager maintains a bullish long-term view on Deere despite near-term cyclical concerns and weak 2023 stock performance. The investment thesis centers on Deere's leadership in autonomous tractor technology, which represents a transformational shift in agriculture equipment. While investors worry about the current equipment sales cycle reaching maturity, the manager believes innovation and labor savings from autonomous technology could extend the cycle into a long-term secular trend. The connection to NVIDIA as a top supplier reinforces Deere's commitment to AI and autonomous capabilities. At $378.39, the stock appears to be trading at cyclically depressed levels following strong 2022 performance. The manager's conviction suggests the market is undervaluing Deere's technological transformation and the potential for autonomous farming to drive sustained equipment replacement demand. Labor shortages in agriculture make autonomous solutions increasingly valuable to farmers.

Pitch Summary:
Following Nvidia, Microsoft ($3221.80) and Google ($132.51 GOOGL) purchase the high-end chips from Nvidia to run their new AI applications while Arista Networks ($187.80 ANET) transmits data over networks and Palo Alto Networks ($236.77 PANW) protects large technology infrastructure from hackers with new AI products to enhance security.

BSD Analysis:
The manager views Palo Alto Networks as a key beneficiary of AI-driven cybersecurity demand, protecting large technology infrastructure with new AI-enhanced security products. As organizations deploy AI applications and expand digital infrastructure, cybersecurity becomes increasingly critical and complex. Palo Alto's integration of AI into its security platform enables more sophisticated threat detection and response capabilities. At $236.77, the stock reflects investor confidence in the company's AI-powered security solutions and market leadership position. The growing attack surface from AI deployments creates sustained demand for advanced cybersecurity platforms. Palo Alto's comprehensive security platform and AI capabilities position it to capture market share in the expanding cybersecurity market. The manager's thesis suggests the company will benefit from both increased security spending and the competitive advantages of AI-enhanced security products over traditional solutions.

Pitch Summary:
Following Nvidia, Microsoft ($3221.80) and Google ($132.51 GOOGL) purchase the high-end chips from Nvidia to run their new AI applications while Arista Networks ($187.80 ANET) transmits data over networks and Palo Alto Networks ($236.77 PANW) protects large technology infrastructure from hackers with new AI products to enhance security.

BSD Analysis:
The manager positions Arista Networks as a critical infrastructure play in the AI ecosystem, providing the networking equipment necessary to transmit data for AI applications. As AI workloads require massive data movement between servers and data centers, Arista's high-performance networking solutions become essential infrastructure. The company's specialization in cloud networking and data center connectivity positions it to benefit from increased AI-related capital expenditures by hyperscale cloud providers. At $187.80, the stock reflects the premium valuation of a specialized technology provider with strong competitive positioning. Arista's customer base includes major cloud providers who are heavily investing in AI infrastructure, providing a direct revenue tailwind. The manager's thesis suggests Arista will capture significant value from the AI infrastructure buildout through its advanced networking platforms. The company's focus on software-defined networking and programmable switches aligns with AI infrastructure requirements.

Pitch Summary:
Following Nvidia, Microsoft ($3221.80) and Google ($132.51 GOOGL) purchase the high-end chips from Nvidia to run their new AI applications while Arista Networks ($187.80 ANET) transmits data over networks and Palo Alto Networks ($236.77 PANW) protects large technology infrastructure from hackers with new AI products to enhance security.

BSD Analysis:
The manager includes Google (Alphabet) as a core AI beneficiary, investing heavily in NVIDIA's high-end chips to power new AI applications across its ecosystem. Google's AI strategy encompasses search enhancement, cloud services, and autonomous driving through Waymo, requiring substantial computing infrastructure. The company's purchase of premium AI chips demonstrates commitment to maintaining technological leadership in machine learning and artificial intelligence. At $132.51, the stock appears attractively valued relative to its AI investment potential and existing cash-generating businesses. Google's vast data assets and user base provide competitive advantages in training AI models and deploying AI-powered services. The manager's thesis suggests Google is well-positioned to monetize AI investments through improved search capabilities, cloud services growth, and new AI-driven revenue streams. The company's strong balance sheet supports continued heavy capital allocation toward AI infrastructure development.

Pitch Summary:
Following Nvidia, Microsoft ($3221.80) and Google ($132.51 GOOGL) purchase the high-end chips from Nvidia to run their new AI applications while Arista Networks ($187.80 ANET) transmits data over networks and Palo Alto Networks ($236.77 PANW) protects large technology infrastructure from hackers with new AI products to enhance security.

BSD Analysis:
The manager positions Microsoft as a key beneficiary in the AI ecosystem, purchasing high-end NVIDIA chips to power new AI applications. This represents Microsoft's strategic investment in AI infrastructure to maintain competitive advantage in cloud computing and software services. The company's substantial capital allocation toward AI hardware demonstrates commitment to leading the AI transformation across enterprise and consumer markets. Microsoft's integration of AI capabilities into existing products like Office 365 and Azure cloud services should drive revenue growth and market share expansion. At the quoted price, the stock reflects investor confidence in Microsoft's AI strategy execution. The manager views Microsoft as well-positioned to monetize AI investments through its established customer base and distribution channels. The company's financial strength enables continued heavy investment in AI infrastructure while maintaining dividend payments and share buybacks.

Pitch Summary:
In the technology sector, our theme remains AI leaders. Nvidia ($447.82 NVDA) is the leader of semiconductor chips needed for the highest level of AI. Nvidia's financial performance has been beyond outstanding. We expect Nvidia's stock performance to lead tech stocks once the current malaise subsides.

BSD Analysis:
The manager maintains a strong bullish conviction on NVIDIA as the dominant leader in AI semiconductor technology. The investment thesis is anchored on NVIDIA's market-leading position in providing chips essential for high-level artificial intelligence applications. The manager emphasizes that NVIDIA's financial performance has been "beyond outstanding," indicating exceptional revenue and earnings growth driven by AI demand. Despite current market weakness affecting tech stocks broadly, the manager expects NVIDIA to lead the sector's recovery once sentiment improves. At $447.82, the stock reflects the premium valuation typical of market leaders, but the manager's confidence suggests the AI revolution is still in early stages. NVIDIA's technological moat and first-mover advantage in AI chips position it to capture disproportionate value from the ongoing AI transformation across industries.

Pitch Summary:
For clients who eye a growing dividend, Garmin quietly continues to innovate with new product introductions across their 5 divisions. Only of analysts have "buy" recommendations on Garmin shares, probably because the analysts who research the company don't fish and can't afford an airplane where their products for navigation are industry leaders.

BSD Analysis:
The manager presents a contrarian bullish thesis on Garmin, highlighting the company as an underappreciated dividend growth opportunity. The investment case centers on consistent innovation across Garmin's five business divisions, suggesting a diversified revenue stream and ongoing product development capabilities. The manager notes limited analyst coverage with few "buy" recommendations, which could indicate the stock is overlooked by Wall Street. The humorous observation about analysts not understanding Garmin's aviation and marine navigation leadership suggests the company has strong competitive moats in specialized markets that analysts may not fully appreciate. For dividend-focused investors, Garmin offers the combination of growing distributions and technological innovation. The lack of analyst enthusiasm could present an opportunity for patient investors who understand the company's niche market leadership and product innovation cycle.

Pitch Summary:
Similarly, EQT ($39.09 EQT) made two property acquisitions to expand their natural gas reserves. Weak natural gas prices have hurt earnings recently, but drilling efficiency helped to lower costs.

BSD Analysis:
The manager presents a cautiously bullish view on EQT Corporation despite current headwinds from weak natural gas prices. The investment thesis is built on strategic reserve expansion through two property acquisitions, which should enhance the company's long-term production profile and resource base. While near-term earnings are pressured by depressed natural gas prices, the manager highlights operational improvements through enhanced drilling efficiency that has helped lower costs. This cost reduction capability is crucial for maintaining profitability during commodity price downturns. At $39.09, the stock appears to be trading at cyclically depressed levels. The combination of expanded reserves and improved operational efficiency positions EQT to benefit significantly when natural gas prices recover. The manager's thesis relies on the cyclical nature of commodity markets and EQT's improved cost structure.

Pitch Summary:
Energy holding have been busy making acquisitions that hurt their stock prices in the short-term but positioned them for enhanced growth long term. Oneok, ($61.85 OKE) acquired Magellan to create the nation's largest pipeline network transporting natural gas, refined products including jet fuel and crude oil.

BSD Analysis:
The manager maintains a bullish long-term view on ONEOK despite near-term stock price weakness following the Magellan acquisition. The strategic rationale centers on creating the nation's largest pipeline network for natural gas, refined products, jet fuel, and crude oil transportation. While acquisitions typically pressure stock prices short-term due to integration costs and execution risks, the manager views this as positioning ONEOK for enhanced growth over the long term. The expanded pipeline network should provide increased fee-based cash flows and strategic positioning in critical energy infrastructure. At $61.85, the stock appears to be trading at a discount due to acquisition-related concerns. The manager's conviction suggests the market is undervaluing the long-term strategic benefits of the enlarged pipeline footprint.

Pitch Summary:
Carrier Corp ($54.56 CARR) is reshaping their business to focus on New Era air conditioning technology while spinning off their fire security division. Their pending acquisition of Weissman, a private European company and leading provider of heat pumps, could be a major source of revenue growth.

BSD Analysis:
The manager presents a bullish thesis on Carrier Corporation based on strategic business transformation and growth catalysts. The company is executing a focused strategy by divesting non-core assets (fire security division) while concentrating on high-growth HVAC technologies. The pending acquisition of Weissman, a European heat pump leader, positions Carrier to capitalize on the energy efficiency and electrification trends. Heat pumps represent a significant growth opportunity as governments push for decarbonization and energy-efficient heating solutions. The manager views this strategic repositioning as a catalyst for enhanced revenue growth. At $54.56, the stock appears positioned to benefit from secular infrastructure and energy efficiency themes. The business transformation should drive improved margins and returns on invested capital over time.

Pitch Summary:
PWR is a leader in infrastructure and energy. The company’s vast array of services encompasses everything from design and installation to repair and maintenance, and they are responsible for constructing and preserving the vital infrastructure that energizes homes, drives industries, and bridges communications. As the energy landscape transforms, emphasizing renewable sources and advanced grid systems, Quanta will be the key player, in our view, in modernizing grid systems to accommodate these emerging energy sources. It would not be a stretch to characterize Quanta as a cornerstone in supporting the infrastructure prerequisites of our modern society. Bolton and Elliman came away from their meeting convinced that Quanta Services Inc. is well-positioned to continue its growth trajectory and see growing earnings for several reasons: As renewable energy technologies are integrated into the energy mix, there’s a need for infrastructure development and upgrades. Quanta’s expertise in electrical power infrastructure positions them to capitalize on these projects. Much of the existing energy and communication infrastructure in developed countries is aging. There’s a pressing need for repair, replacement, and modernization. As a leading provider of infrastructure solutions, Quanta is poised to benefit from these renewal and upgrade initiatives. The company’s wide range of services, spanning from design and installation to maintenance and repair across various sectors, ensures a consistent demand for its offerings. Their diversified portfolio mitigates risks associated with downturns in any single sector. Quanta’s presence in North America and its expansions into select international markets present opportunities for growth in regions that are investing heavily in infrastructure. The push towards smart grids, 5G communication networks, and other technological advancements necessitate upgrades to current infrastructure. Quanta’s services will be pivotal in these transitions, and the recently passed Infrastructure bill provides billions in funding for these projects. The company sports a robust financial position, characterized by steady cash flows and a strong balance sheet, providing them the flexibility to invest in growth opportunities, make strategic acquisitions, and weather industry downturns. Quanta has a reputation for safety, quality, and reliability, combined with a strong track record of successfully executed projects.

BSD Analysis:
Quanta Services enters 2026 as a premier "picks-and-shovels" play for the electrical transition, recently reporting a record-high contract pipeline driven by grid hardening and renewable infrastructure demand. Analysts maintain a "Buy" consensus with a median price target of $444.78, reflecting the firm's critical role in meeting surging U.S. power demand. Key catalysts for 2026 include the ramp-up of the substantial NiSource contract for a 3-gigawatt power generation project and continued leadership in high-voltage transmission. With over 80% self-performance, Quanta is successfully mitigating industry-wide labor shortages, though investors remain focused on project execution timelines and margin preservation amid fluctuating supply chain costs.

Pitch Summary:
Jet2 is a UK based package holiday business that operates its own airline. The company is run by CEO Steve Heapy and CFO Gary Brown, both of whom have high integrity, exceptional customer focus, and concentrate on long term value creation when allocating capital. They have done an outstanding job, with Jet2's excellent customer service and retention driving profitable market share growth from 2% to 21% over the last decade. We initially invested in the business at around £5/shr, the stock trades at £11/shr today, and we think is worth £25/shr. The stock ended Q3 down 22% from its high earlier this year. We added significantly to our position in the quarter. Jet2 reported record profits for the summer which imply EPS of around £1.8/shr for this fiscal year, double the pre-Covid peak of £0.9/shr. When we first started highlighting Jet2 in our quarterly letters during the Covid pandemic three years ago, we estimated that the company would generate £1.5-£2.5/shr in earnings in three years' time and that the stock would be valued at £25/shr as a result. That appeared to be an aggressive estimate during a period when travel had largely halted, yet while we turned out to be correct in our earnings estimate we were wrong on the multiple investors would pay. We had assumed what we thought was a conservative 12.5x P/E multiple – in line with pre-Covid levels – for a business with the industry leading balance sheet, competitive position, and management, all of which have been further demonstrated in recent years. Instead, Jet2 trades on 6x P/E. That is by some distance its lowest multiple in the last decade, excluding the pandemic. As a result, the stock trades at £11/shr rather than £25/shr, which is disappointing and the only number that matters. A record low valuation would typically suggest investors believes earnings are about to decline significantly. However, that appears not to be the case despite the difficult macro backdrop. Sell-side estimates are for earnings next year to hit another record. The company appears to be on course for double-digit growth for some time, with orders and pricing still tracking at new record levels, recent ATOL registrations showing another 1ppt in market share growth, and the general travel outlook continuing to be strong. We have seen macro headwinds impact the stock many times over the last decade, including this time last year in similar circumstances. Over the longer term the company's competitive advantages and earnings growth tend to punch through that noise. Jet2's market share has increased from 2% to 21% in the last decade and the stock has largely followed from £0.7/shr to £11/shr despite its current valuation. We believe that this time will be no different. A more important setback in the quarter was the retirement of Founder & Chairman Philip Meeson, although the stock still traded at £12.6/shr prior to the announcement – at a then record low 7x P/E. Meeson has been a truly outstanding Founder. He launched the company in 1983 with two aircraft and through a rare combination of both customer focus and cost control grew the business to a roughly £100mm valuation by 2009. Meeson – a former RAF fighter pilot – hired Steve Heapy in 2009 to build a package holiday business to compliment Jet2's airline. That has been an enormous success, with Heapy growing Jet2Holiday's market share from 2% to 21% and the package holiday business accounting for the vast majority of the company's value today in our view. Despite Meeson being an undoubted loss to the leadership team, we believe the transition will be close to seamless. Heapy has run the package holiday business since its inception and been group CEO since 2020. He is supported by an excellent CFO in Gary Brown, who has been with the company since 2013. Meeson's replacement as Non-Executive Chairman will also be internal, with board member Robin Terrell taking up the position. Terrell has been Chairman of several companies and worked in several senior customer centric roles, including as Chief Customer Officer of Tesco and MD at Amazon. He knows the company well having been a board member for 3.5 years and we were impressed when we met with him. One potential overhang to the stock is that Meeson continues to own 20% of the company and some investors may be concerned that a large sale of shares is coming at some point. We view that as very unlikely anywhere near today's prices. In fact, Meeson made a point of buying more shares – the first time he has ever done so – after his retirement was announced. We have also found that management are receptive to buying back shares. Perhaps the only pushback against Meeson we could offer is that similar to many founders he did not like the company to buy back shares, instead preferring to use cash to accelerate the growth of the business even on occasions when the stock dipped to very cheap multiples. However, we estimate that Jet2 generates enough cash that it can take advantage of the current 6x P/E multiple to buy back shares while continuing to invest in the business. We believe that a buy back would be an excellent use of cash and act as a catalyst for the stock. Our thesis continues to be based on Jet'2 long-term intrinsic value as it expands upon its position as the UK's leading package holiday provider. We estimate the company will continue to grow earnings at a double-digit rate over the next 3-5 years and trade for a double-digit multiple at some point.

BSD Analysis:
Plural Investing maintains conviction in Jet2 despite significant multiple compression, viewing the 6x P/E as an extreme valuation disconnect. The manager emphasizes Jet2's exceptional competitive position, having grown market share from 2% to 21% over the past decade through superior customer service and operational execution. Record summer profits generating £1.8 per share EPS demonstrate the business model's resilience and earnings power recovery post-COVID. The founder transition risk appears well-managed with experienced CEO Steve Heapy leading operations since 2009 and strong succession planning in place. Forward earnings estimates suggest continued double-digit growth with strong travel demand fundamentals intact. The current 6x multiple represents the lowest valuation in a decade outside the pandemic, creating an asymmetric risk-reward profile. Management's newfound receptiveness to share buybacks could serve as a near-term catalyst while the business continues executing on long-term market share gains.

Pitch Summary:
CXI is one of only three major suppliers of foreign banknotes in the United States and of US dollar banknotes internationally. Banknotes are typically used for travel and the Covid induced downturn masked major market share gains made by the company after its key competitor Travelex exited. CXI is run by Founder Randolph Pinna, who owns 21% of the company and has high integrity, delights customers, and a 35-year track record of building two banknotes businesses that have delivered strong shareholder returns. The company trades on 8x P/E today and we expect earnings to nearly double over the next three years. That puts the stock on just 4x our estimate of profits in three years' time, net of cash generated in the interim. We started buying shares at US$14/shr in mid-2022, it trades at US$15/shr today, and we believe intrinsic value will be US$55/shr in three years. The stock ended Q3 down 24% from its peak earlier in the quarter. We think CXI's first opportunity is to grow outside the United States. The company is one of only three licensed to supply dollar banknotes from the Federal Reserve to banks across the world, which is a market that we think is worth around $380mm in revenues. We expect CXI will take substantial share in this market, which is material versus the company's total revenues of $77mm today. Building out the international business has proved frustrating. While the company has signed on several major banks as potential customers, the US banking crisis earlier this year made these customers reluctant to rely directly on supply from a small company like CXI, even though CXI does not take deposits and does not carry traditional banking risk. The company has only $130mm in assets, which means that if a customer like the Bank of Singapore makes a payment for $100mm of banknotes CXI's assets would temporarily almost double until it shipped those banknotes. CXI and its customers have found a solution, which is to use a major bank with hundreds of billions of assets to act as a middleman and guarantee transactions for a small fee. We see this as a frustrating delay for a couple quarters and so while we were wrong in our timing, we have not changed our value of the company. We think CXI's second large opportunity is to use its cash. The company holds $98mm in cash and $6mm in debt, a huge amount of net cash compared to its $95mm market cap. We estimate that $80mm of this cash needs to be held as physical banknotes so should be thought of as inventories, meaning excess cash that could be deployed is closer to $20mm. Still, investors are increasingly skeptical that this cash will ever be deployed as it appears to grow every quarter and management's capital allocation plans could be clearer. We have a different view. On the recent earnings call management stated that their most likely use of cash is to make acquisitions and that some incumbents in the banknotes market may want to exit. We see this as a potentially excellent use of cash if the company remains disciplined in the price it pays. Virtually any merger of banknotes businesses would result in large synergies as much of the cost base - such as vaults, IT, and staff - does not have to be duplicated. While management provided no further details on potential acquisition targets, there are only three other major companies in the industry: Bank of America, Wells Fargo, and Moneycorp. We view a deal with Moneycorp as unlikely as much of its business is in regions that CXI views as high risk. On the other hand, both Bank of America and Wells Fargo have downsized their business over time, which suggests they are willing sellers of some or all of those operations. We believe that CXI's roughly $80mm in banknote inventories could be financed with credit facilities at a conservative 0.5x loan-to-value. That financing would free up an additional $34mm beyond the $6mm in credit facilities that are already used. Combined with the company's nearly $20mm in excess cash brings deployable cash for an acquisition above $50mm while still leaving a strong balance sheet with no debt beyond modest inventory financing. A $50mm acquisition at CXI's valuation of 8x P/E would (i) increase earnings by roughly 50% before synergies, (ii) demonstrate that the company's cash is not 'trapped', and (iii) likely lead to a much higher multiple as investors start pricing in future cashflow being deployed in further high return acquisitions. The company has yet to make acquisitions of this size and so some investors have concluded that it will never meaningfully use its cash. On the other hand, we believe that while having to wait is frustrating management fully intends to use its cash but that deals like this take time and they are keen to not overpay – an attitude that we support. Founder & CEO Randolph Pinna has been involved in several large M&A transactions in his career. We expect that investors will greatly reappraise CXI's intrinsic value over time as the business grows outside the US and management deploys cash. We also believe that the potential downside over a 3-5 year horizon is low if we are wrong given the company's fortress balance sheet, 8x P/E valuation, and double-digit growth rate.

BSD Analysis:
Plural Investing presents a compelling value thesis on Currency Exchange International, a dominant player in the foreign banknote supply market. The manager highlights CXI's oligopolistic position as one of only three major US suppliers and Federal Reserve licensees for international dollar distribution, providing significant competitive moats. Trading at 8x P/E with expected earnings to nearly double over three years, the valuation appears deeply discounted relative to the $55 target price. The international expansion opportunity into a $380mm addressable market represents substantial upside versus current $77mm revenues. Management's $98mm cash position, while currently underutilized, offers optionality for accretive acquisitions in a consolidating industry with potential synergies from shared infrastructure costs. The 21% founder ownership and strong balance sheet provide downside protection. Despite near-term execution challenges in international rollout, the structural growth opportunity and attractive valuation multiple suggest significant long-term value creation potential.

Pitch Summary:
During the month of September, the Fund initiated a position in West Edmonton Mall 7.8% First Mortgage Bonds due 2027 at a price of par (100). West Edmonton Mall is the second largest shopping centre in North America, and the bonds have a first lien mortgage position at roughly 50% loan to value (LTV). The commercial real estate shopping mall space in North America has had secular decline issues for the past decade. However, those properties characterized as A‑malls with high sales per square foot, as opposed to B‑ and C‑malls with less scale, have had stable earnings, excluding the effect of the Global Pandemic. While real estate valuation has been in transition due to higher interest rates, we believe A‑mall earnings and the maturity of the online/physical store business model provide an underpinning for asset value.

BSD Analysis:
The fund manager initiated a position in West Edmonton Mall's 7.8% first mortgage bonds, viewing the investment as attractive despite broader commercial real estate headwinds. The thesis centers on West Edmonton Mall's classification as an A-mall with high sales per square foot, distinguishing it from lower-quality B and C-malls that have struggled more significantly. The manager acknowledges the secular decline in North American shopping mall real estate but believes A-malls have demonstrated earnings stability outside of pandemic disruptions. The 50% loan-to-value ratio provides meaningful downside protection through the first lien mortgage structure. The investment reflects confidence that the maturation of the online/physical retail model has stabilized, creating a foundation for asset values. The 7.8% yield at par provides attractive income in the current rate environment. This represents a contrarian bet on quality retail real estate during a period of sector distress.

Pitch Summary:
Years away from generating any revenue; any economic profit is not expected; the battery-powered electric plane is highly unlikely in reality; the plan to manufacture thousands of aircraft is laughable; very early to obtain any certificate; major safety concerns;

BSD Analysis:
Joby is developing electric vertical takeoff and landing (eVTOL) aircraft aimed at urban air mobility. The short thesis stresses commercialization risk, regulatory hurdles, and capital intensity. FAA certification remains the critical gating item, with timelines repeatedly extended across the sector. Even with certification, scaling production and building out vertiport infrastructure will require billions in capital—far beyond current liquidity. The revenue opportunity is distant, as most of today’s valuation reflects optionality on mass adoption of eVTOL, a market with no proven demand curve. Partnerships with Toyota and the U.S. military provide credibility but do not offset execution risk. Critics argue the stock trades more like a call option on future mobility than a going concern.

Pitch Summary:
Early this year, Advanced Holdings, a Singaporean producer of petrochemical testing equipment, sold most of its operating subsidiaries, leaving it with a net-cash position of 3x its market cap. In my opinion, management acted unscrupulously in the past and others likely agreed. After the disposal they expressed some desire to invest in an animal feed facility, which I (and I assume everyone else) was opposed to, but they slyly noted the potential of a distribution in a public response to shareholder questions. Given this uncertainty and the fact that the company was too small for many others to buy in, the stock didn't move. For a few months, we soaked up most of the available shares at that price, until the board decided to pay out the cash in August, leaving us with a quick 200% gain.

BSD Analysis:
Saunders executed a successful special situation play in Advanced Holdings, capitalizing on a significant asset disposal that left the company trading at one-third of its net cash position. The manager identified a classic orphaned security where poor management reputation and small market cap created an opportunity for patient capital. Despite management's questionable track record and unclear capital allocation plans, Saunders accumulated shares while the market remained indifferent. The thesis proved correct when the board ultimately distributed the cash to shareholders rather than pursuing value-destructive investments. This 200% return exemplifies the manager's ability to identify and profit from corporate actions in overlooked small-cap situations. The investment highlights the importance of buying below intrinsic value when catalysts for value realization exist. Such opportunities typically arise in micro-cap markets where institutional constraints limit competition for shares.