50 new pitches found in hedge fund reports this week
Thanks for reading Stock Analysis Compilation! Subscribe for free to receive new posts and support my work. 🆕 New on the site: every chart fund managers publish, on one page The best charts in fund letters and research are usually buried deep inside a PDF. We pull them out and put them side by side by subject (macro, rates, earnings, valuations), each one credited to the firm that made it, with the original one click away. Free, and you don’t need an account. 👉 Browse the charts → 🔹 10x Genomics, Inc. (TXG US) by Artisan Partners U.S. Small-Cap Growth Strategy 🔹 Alnylam Pharmaceuticals, Inc. (ALNY US) by Brown Advisory Large-Cap Sustainable Growth Strategy 🔹 AnaptysBio, Inc. (ANAB US) by Riverwater Partners Micro Opportunities Strategy 🔹 Appian Corporation (APPN US) by Argent Capital Management Focused Small Cap Strategy 🔹 ASML (ASML US) by Baillie Gifford Positive Change 🔹 Atom Computing Inc. by Third Point Offshore Fund, Ltd. 🔹 B3 SA - Brasil, Bolsa, Balcao (B3SA3 BZ) by Brown Advisory Global Leaders Sustainable Fund 🔹 Balchem Corp (BCPC US) by Brown Advisory Small-Cap Growth Strategy 🔹 Bio-Rad Laboratories, Inc. (BIO US) by AVI Global Trust 🔹 BioGaia (BIOG B SS) by TIN Småbolag 🔹 Blackstone Digital Infrastructure Trust Inc. (BIDT US) by Baron Real Estate Income Fund 🔹 ByteTravel (BYTE SM) by Eiffel Investment Group FCPI 🔹 Cal-Maine Foods, Inc. (CALM US) by Nuance Investments Concentrated Value Strategy 🔹 Codexis (CDXS US) by White Brook Capital Ethical Strategies 🔹 Commonwealth Bank of Australia (CBA AU) by L1 Capital Long Short Fund 🔹 Craneware (CRW LN) by Liontrust UK Listed Smaller Companies Fund 🔹 Downer Group (DOW AU) by L1 Capital Catalyst Fund 🔹 Dynatrace, Inc. (DT US) by TimesSquare U.S. Mid Cap Growth 🔹 Engie (ENGI FP) by Clearbridge Investments Global Infrastructure Income Strategy 🔹 Equifax Inc. (EFX US) by Brown Advisory Large-Cap Sustainable Growth Strategy 🔹 Fortune Brands Innovations (FBIN US) by Longleaf Partners Global Fund 🔹 Foster Electric (6794 JP) by AVI Japanese Special Situations 🔹 Fuso Chemical by Hotchkis & Wiley Value Opportunities 🔹 GE Aerospace (GE US) by Brown Advisory Large-Cap Sustainable Growth Strategy 🔹 GE Aerospace (GE US) by Mar Vista U.S. Quality Premier 🔹 GFL Environmental, Inc. (GFL US) by Ave Maria Funds Multi-Fund 🔹 Intel Corporation (INTC US) by Liontrust Global Technology Fund 🔹 Ion Beam Applications SA (IBAB BB) by Paladin ONE 🔹 Materion (MTRN US) by Granahan Investment Management Small Cap Discoveries 🔹 Midera Food Processing by Cooke & Bieler SMID Cap Value Equity 🔹 Mizuho Financial Group, Inc. (8411 JP) by Alger International Opportunities Fund 🔹 Neste Oyj (NESTE FH) by Baron International Growth Fund 🔹 Netskope (NTSK US) by Granahan Investment Management Small Cap Discoveries 🔹 NGK Insulators (5333 JP) by TAMIM Fund: Global High Conviction 🔹 PNC Financial Services Group, Inc. (PNC US) by Argent Capital Management Dividend Select Strategy 🔹 Preezie by Touch Ventures Limited 🔹 Prysmian (PRY IM) by Liontrust Balanced Fund 🔹 SandboxAQ by Horizon Kinetics Equity Opportunities Fund, LP 🔹 SanDisk (SNDK US) by Malborough US Focus Fund 🔹 SK Hynix (000660 KS) by Castañar IF, FI 🔹 Sprouts Farmers Market, Inc. (SFM US) by Spheria Global Smaller Companies Fund 🔹 Stanmore Resources (SMR AU) by PM Capital Global Companies Fund, Australian Companies Fund & Enhanced Yield Fund 🔹 Sterling Infrastructure, Inc. (STRL US) by Conestoga Capital Advisors Small Cap, SMid Cap & Micro Cap Strategies 🔹 Tenet Healthcare Corporation (THC US) by Brown Advisory U.S. Value Fund 🔹 Thermo Fisher Scientific (TMO US) by Kavaljer Investmentbolagsfond 🔹 UnitedHealth Group Incorporated (UNH US) by Baron Health Care Fund 🔹 Valvoline (VVV US) by Cooke & Bieler All Cap Value Equity Strategy 🔹 Veeva Systems Inc. (VEEV US) by Vulcan Value Partners Multi-Strategy Equity Portfolios 🔹 Victrex (VCT LN) by Jupiter UK Dynamic Equity Fund 🔹 WuXi Biologics (2269 HK) by Artisan Emerging Markets Fund 10x Genomics, Inc. ($TXG US) Fund: Artisan Partners U.S. Small-Cap Growth Strategy Thesis: 10x Genomics has a leading single-cell analysis position and benefits from the upcoming Atera spatial biology platform. Source: Read the original letter ↗ Analysis: 10x Genomics is a life sciences tools company with a market-leading position in single-cell analysis and a strong reputation for its technology among scientific researchers. We initiated a GardenSM position during the quarter as our interest grew ahead of the second-half 2026 launch of Atera, the company’s next- generation spatial biology platform. We believe spatial biology will be an important component of the next generation of biological research, particularly as artificial intelligence enables researchers to analyze increasingly complex biological data and deepen their understanding of disease. Access our full research database on 10x Genomics, Inc. Alnylam Pharmaceuticals, Inc. ($ALNY US) Fund: Brown Advisory Large-Cap Sustainable Growth Strategy Thesis: Alnylam is the leader in RNAi therapeutics, with a significant moat and the potential to become a diversified, multi-product biopharma compounder. Source: Read the original letter ↗ Analysis: Alnylam Pharmaceuticals, Inc. was founded in 2002 with the goal of harnessing RNA interference (RNAi), creating a new class of medicines to treat genetic diseases and chronic illnesses. The company has emerged as the leader in RNAi therapeutics, which inhibit the production of specific disease-causing proteins and importantly without permanently altering the human genome. More than two decades of investment in RNAi biology, drug delivery, intellectual property, manufacturing and clinical development have created a significant competitive moat, with the success of Alnylam’s flagship AMVUTTRA therapy, which helps prevent harmful proteins from building up in the heart and nerves, demonstrating the commercial potential of the platform. Our investment is grounded in our belief that Alnylam Pharmaceuticals, Inc. can evolve into a diversified, multi-product biopharmaceutical company, capable of delivering long-term revenue growth and scaled profitability, with the failure of a competitor’s trial creating an intriguing entry point in the stock. Access our full research database on Alnylam Pharmaceuticals, Inc. AnaptysBio, Inc. ($ANAB US) Fund: Riverwater Partners Micro Opportunities Strategy Thesis: AnaptysBio is now a royalty company with a growing Jemperli royalty stream and asymmetric litigation outcomes that we view as undervalued. Source: Read the original letter ↗ Analysis: We initiated a position in AnaptysBio (ANAB), which, following the April separation of its drug development pipeline into First Tracks Biotherapeutics, is now essentially a royalty company rather than a traditional biotech. Its core asset is a tiered 8% to 25% royalty on worldwide sales of GSK’s cancer immunotherapy Jemperli, whose sales grew 34% year over year in the first half of 2026. GSK expects peak monotherapy sales above $2.7 billion, which AnaptysBio estimates could translate into more than $390 million in annual royalties as early as 2029, once a royalty monetization agreement is paid down in 2027. Near-term catalysts include an FDA decision on Jemperli in rectal cancer expected by February 2027 and a December 2026 decision on Quimilza, a second royalty-bearing drug partnered with Vanda. AnaptysBio is also in litigation with GSK over alleged breaches of their collaboration agreement, with a ruling expected in late 2026 or early 2027. We view the potential outcomes as asymmetric: the status quo leaves a growing royalty stream we believe is undervalued, while a settlement or a reversion of Jemperli rights could add meaningful value. GSK’s past attempts to acquire the royalty also underscore its value. Access our full research database on AnaptysBio, Inc. Search every pitch and letter we have This week’s ideas are a sample of the full searchable archive . The Associate ($19/mo) gives you every pitch we’ve indexed (3,000+ across 300+ funds), searchable by fund, sector or ticker, plus the entire quarterly-letter archive, so you never have to hunt for a PDF again. The Rainmaker ($29/mo) adds Warren AI to ask questions across the whole corpus in plain English. Start your 7-day free trial → Appian Corporation ($APPN US) Fund: Argent Capital Management Focused Small Cap Strategy Thesis: Appian Corporation provides AI-enabled workflow automation software, with reaccelerating cloud growth and rising AI usage strengthening the case. Source: Read the original letter ↗ Analysis: In software, we initiated a position in Appian, which provides AI enabled process automation, workflow orchestration and application development to large enterprises and government organizations, with a particular focus on regulated and process intensive industries. The investment case has strengthened as cloud subscription growth has reaccelerated, with revenue up more than 20% in each of the first two quarters of 2026, cloud net annual recurring revenue expansion has improved to 115%, and adjusted EBITDA has increased materially as management raised its full year revenue and profitability outlook. Customer AI usage has increased sharply, and management positions the platform as an orchestration layer that governs how AI models, enterprise data, automated workers and people interact within critical business processes, encouraging early evidence that AI may expand rather than diminish the opportunity. Access our full research database on Appian Corporation ASML ($ASML US) Fund: Baillie Gifford Positive Change Thesis: ASML benefits from AI-driven semiconductor investment and has a unique EUV lithography position that should support long-term earnings growth and returns. Source: Read the original letter ↗ Analysis: ASML and KLA , which contributed strongly earlier in the year as beneficiaries of AI investment, have weakened this quarter as investors question the sustainability and prospective returns of rising spending. We take these questions seriously, but the fundamental picture remains robust: investment continues apace and compute (ie, semiconductors) remains a key bottleneck for AI adoption. Our conviction also rests on the companies’ competitive advantages: ASML’s unique position in EUV lithography and KLA’s leadership in process control. Share prices can move quickly as market narratives shift, even when there is little evidence that the fundamentals have weakened, but enduring edge should underpin long-term earnings growth and shareholder returns. Access our full research database on ASML Atom Computing Inc. Fund: Third Point Offshore Fund, Ltd. Thesis: Atom Computing is a private neutral-atom quantum computing company whose scalable, high-quality qubit technology and strong technical/commercial milestones underpin Third Point’s conviction. Source: Read the original letter ↗ Analysis: Atom Computing was our top winner during the Third Quarter. We first invested in late 2021, when we led the Series B financing and joined Atom’s Board of Directors. Based on Atom’s technical progress and commercial traction, we subsequently led the Series C which closed in early 2026. Atom Computing is led by its CEO Benjamin Bloom who founded the company in 2018 to pursue the Neutral Atom Modality for Quantum Computing. Ben holds a bachelor’s degree from MIT and PhD in physics from the University of Colorado-Boulder where he helped develop one of the most accurate atomic clocks ever constructed. Of the seven primary approaches being pursued to build practical, scalable, fault tolerant Quantum Computers, Atom employs the Neutral Atom modality. Our research led us to Atom Computing as we determined that the Neutral Atom approach’s combination of practical scalable design, high quality qubits, noise immunity, and qubit longevity made it one of the most likely to achieve the goals desired by governments, enterprises, and research facilities. Since our initial investment in 2021, we have partnered very closely with the company, been supportive of their organizational development, and have been pleased with their achievements of milestones (from 100’s of qubits in 2021, to 1200 qubits, to their expected announcement of the 10,000 qubit system shortly). Atom Computing raised a Series D-1 financing (at a stepped-up valuation) in July 2026 based on their technical and commercial progress as well as the announcement (May 2026) of Atom being selected to receive a $100 million investment by the US Department of Commerce under the CHIPS Act. Last month, Atom Computing was selected as one of four companies announced for DARPA’s QBI (Quantum Business Initiative) Stage C awards. The four were Atom (private), Diraq (private), IBM (public), and IonQ (public). Note that while Atom was one of four to receive DARPA-C, it is one of the two that are private companies, and the only company based on the Neutral Atom Modality thus far awarded. DARPA-C awarded Atom Computing potential non-dilutive funding up to $300 million (contingent on hitting specific development milestones over the next 36 months). The QBI program is designed to rigorously verify and validate whether any quantum computing approach can achieve utility-scale operation by the year 2033 (with near-term deliverables sooner). The recent markup was primarily driven by news of a major sector investor for its new Series D- 2 financing, which will close in the coming weeks at a meaningfully higher valuation than the Series D-1 round (and over 28x the valuation where we originally entered the investment in 2021). Access our full research database on Atom Computing Inc. B3 SA - Brasil, Bolsa, Balcao ($B3SA3 BZ) Fund: Brown Advisory Global Leaders Sustainable Fund Thesis: B3 SA - Brasil, Bolsa, Balcao benefits from a dominant market infrastructure position, recurring revenue growth, and long-term opportunities in fixed income, data and new initiatives. Source: Read the original letter ↗ Analysis: B3 continues to benefit from its dominant position across Brazil’s financial market infrastructure, with a growing contribution from recurring revenues providing greater resilience alongside improving activity in cash equities. We continue to see attractive long-term growth opportunities across areas such as fixed income, data and newer initiatives including Trademate and trade receivables. We have also been encouraged by the new CEO’s focus on technology, regulatory engagement and capital allocation. Access our full research database on B3 SA - Brasil, Bolsa, Balcao Balchem Corp ($BCPC US) Fund: Brown Advisory Small-Cap Growth Strategy Thesis: Balchem Corp has dominant niche positions and a multi-year growth runway in human health supplements. Source: Read the original letter ↗ Analysis: We believe Balchem Corp (BCPC) is well positioned with dominant positions in some health and medical end market niches that lend themselves to consistent growth and cash conversion. After some post-pandemic end market and input cost volatility, we think Balchem Corp is poised for a 3-5 year period of higher growth than they have delivered historically, driven by the rise in human health supplements, where they are embedded in the process technology and some key ingredients where you do not have to take a bet on one brand. Access our full research database on Balchem Corp Bio-Rad Laboratories, Inc. ($BIO US) Fund: AVI Global Trust Thesis: Bio-Rad Laboratories combines a discounted sum-of-the-parts, a valuable Sartorius stake, and catalysts from restructuring and activism. Source: Read the original letter ↗ Analysis: Bio-Rad Labs: Earlier in 2026 we established a position in Bio-Rad Labs (“Bio- Rad”). The company exhibits many of the traits we look for: 1) attractive growing assets, 2) a discounted valuation, 3) catalysts for change. The company was founded by husband and wife David and Alice Schwartz in Berkeley, California in 1952 – with the Schwartz family continuing to control the company today (72% of the votes on 32% of the capital). Today the value lies in roughly equal halves between 1) its wholly-owned science tools & equipment business; and 2) a 32% stake in listed Sartorius AG (“SRT”) – the German- listed bio-processing equipment company – in which Bio-Rad started building a stake during the early 2000s. At AVI, we love situations where what you see is not what you get, and where the economics and the accounting diverge. Bio-Rad fits firmly in this camp: the stake in SRT is non-consolidated and as such a simple screen misses significant value. When we started building a position in the spring, the stake in SRT accounted for two thirds of Bio-Rad’s market cap. Stripping this (plus net cash & a loan convertible into SRT stock) out, one was paying an implied <$2bn for the core operating business that should produce c.$430m of EBITDA this year. Peers – both listed comps and M&A transactions – are valued at many times this derisory multiple. Taking the two halves in turn, SRT began in the 1870s as a maker of precision laboratory balances and moved into biopharma through the acquisition of BBI in 2000 and a controlling stake in French-listed Stedim SA in 2007. The company is controlled (55% of the ordinary shares) by the Estate of Horst Sartorius, which was set up in 1998 upon his death to maintain control of the company. The Estate is divided between his three daughters and managed by an executor until it dissolves in 2028. Looking at SRT the vast bulk of profit and value comes from Bio Process Solutions (“BPS”), which supplies the equipment and consumables used to manufacture biologic drugs (medicines grown in living cells rather than synthesised). The (brief!) history of the pharmaceutical industry over the last 50 years is one of biology usurping chemistry and a move from vertical integration to specialisation. In this process, significant value now accrues to the companies – such as SRT – that provide the infrastructure for production, as (biologic) process has been inseparable from the product – from both a scientific and regulatory perspective. This is a highly attractive business with long-term compounding potential: robust underlying market growth underpinned by biologics; teens returns on capital. As one of the few scaled, listed bioprocessing specialists globally, SRT is a scarce and highly desirable asset. That said, it has not been a smooth ride. COVID led to a historic pull-forward in demand which took far longer than anticipated to unwind as the book-to-bill ratio shunted down. The shares fell close to -70% peak to trough which was enough to see the CEO and CFO replaced. With that said, over the last year the corner has been turned, and we are now firmly in recovery. At the recent Capital Markets Day, management set out targets for mid-term growth of 8-11% underpinned by BPS growth of 9-12% and margins expected to expand between 50-75bps p.a. The market is well aware of these highly attractive characteristics and has historically capitalised the business at a premium multiple. As things stand the company trades at c.20x 2026 EV/EBITDA (valuing minority interest at market value not accounting book value – a mistake made by some). Valuation risk is certainly something we considered but in the round trip of the investment case we believe it to be manageable and are encouraged by the continued high near-term multiples the sector achieves in M&A transactions. Moreover, Bio-Rad are geared toward a narrowing of the spread between the Ords and the Prefs, which stands at a near-record wide level. Bio-Rad’s own business splits 40:60 between Life Science and Clinical Diagnostics. Life Science supplies instruments and consumables to separate, purify and quantify biological materials such as cells, proteins and DNA, selling to academic and government labs and, increasingly, biopharma. It is the familiar razor blade model: an installed base of instruments generating a recurring stream of consumables. Clinical Diagnostics sells test systems and kits to hospital and reference labs, covering more than 300 tests including diabetes A1C blood tests, packaged as an instrument, reagent and software bundle which becomes quite sticky once a lab standardises on it. It is a less glamorous market, growing at a GDP+ish in line with patient volumes. In total the group sells >12k products, no customer accounts for more than 2% of sales, and >70% of revenues are recurring in nature. That said, Bio-Rad’s own business has been undermanaged – leading to subpar topline growth and a bloated cost structure. SG&A has grown in line with revenue (both 3.1x since 2001) and now absorbs 32% of sales. Gross margins are in line with peers in the 50s, yet operating margins are c.12% against peers in the high teens and 20s. That is nearly a quarter of a century without any operating leverage. The same story shows up in the products. Bio-Rad pioneered digital PCR (the more granular cousin of the PCR test familiar from COVID) and has c.75% of the market, but former employees describe weak go-to-market execution and a lack of commercial planning, which has let competitor Qiagen take c.20% share. Investors are also frustrated with capital allocation, particularly around the SRT stake, where the value is masked to the unobservant and the more observant have (rightly) queried if value will ever be harvested. Taken together these factors have resulted in the market applying a heavy discount to Bio-Rad’s sum-of-the-parts and implicitly valuing the stub at next to nothing. We believe a number of factors are now aligning that should prompt a reassessment. Having followed the company for a number of years we have observed a shift in tone – both on the core operations and the stake in SRT. Earlier in 2026 the company announced a new restructuring program, and in recent conversations with the (relatively) new CFO we are encouraged by the shift in tone and dynamism. Notably when it comes to SRT, Bio-Rad described it as a “monetizable asset” for the first time in 2024. Elliott Management – the activist hedge fund – recently announced a position in the company and we suspect this is sharpening the minds of the family even if they are somewhat protected by the dual-voting stock. The other pertinent catalyst relates to SRT and dissolution of the Sartorius family Trust. As we look toward 2028, we believe this will effectively put SRT in-play as a highly desirable asset in an industry that has trended toward consolidation. As we see it there are three principal risks to the investment case. Arguably the largest is that Bio-Rad uses the SRT shares, or the proceeds of a sale, to do something silly, and with the family in control and succession unclear, minority shareholders have little recourse. Beyond that, continued underperformance of the core Bio-Rad business both in terms of topline growth and cost improvement could impede a re-rating in the stub; and SRT remains a high-multiple business that carries the expectations that come with one. Returns so far have been strong (with an ROI of +25% in a handful of months) as the stub has started to re-rate. We believe this has further to run and see the ingredients in place for attractive returns as we look out over the coming years. Access our full research database on Bio-Rad Laboratories, Inc. BioGaia ($BIOG B SS) Fund: TIN Småbolag Thesis: BioGaia grew sales 23 percent in Q3 and is testing whether its brand can carry new patented probiotic strains at higher prices as its key infant drops patent expires. Source: Read the original letter ↗ Analysis: BioGaia, which sells probiotics, reported strongly for the third quarter. Sales grew 23 percent adjusted for currency, the highest rate since the end of last year. Part of the sales was, however, brought forward from the current quarter. The most important question in the longer term, however, is how the company handles the fact that the patent on the bacterium in its largest product, stomach drops for infants, is about to expire. In May, a new version of the drops was launched in the UK, which combines the original bacterium with a new, patented bacterium and is sold at a 15 percent higher price. In September, another new product followed with its own bacterium, whose effect is supported by two independent clinical studies. BioGaia has long claimed that the brand and market position weigh at least as heavily as the patents. If the company succeeds in establishing the new products at higher prices, it would truly lend support to that thesis. Access our full research database on BioGaia
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