Core Thesis - Borr Drilling Limited is positioned as a strong player in the offshore drilling market due to its young fleet and favorable market conditions, presenting a compelling investment opportunity [2][3][6]. Company Overview - Borr Drilling is headquartered in Bermuda and operates from Norway, maintaining a fleet of 24 modern premium jack-up rigs with an average age of just three years, which is among the youngest globally [3][5]. - The company reported Q2 2025 revenue of $267.7 million, a 24% increase quarter-over-quarter, with EBITDA of $133 million (+39% QoQ) and a net profit of $35 million [4]. Market Position and Financials - Borr Drilling has a market capitalization of approximately $600 million and is expected to achieve 2025 EBITDA of $460–470 million, trading at less than 2× EV/EBITDA ex-debt, indicating significant upside potential [4]. - The offshore drilling market has experienced a decade of underinvestment, leading to rising oil demand and renewed project sanctions, which have tightened supply and created a favorable environment for Borr [3][5]. Competitive Advantages - The company benefits from a young, standardized fleet that reduces operating costs and attracts major clients for multi-year contracts, with high entry barriers due to the cost of new rigs estimated at $250–300 million [5]. - Key catalysts for Borr include contract repricing as older rigs reset to higher dayrates, deleveraging with cash flow reducing over $2 billion in gross debt, and scarcity-driven pricing power in the current tight market [5][6]. Investment Potential - Borr Drilling is viewed as an overlooked, high-torque equity with high utilization and premium positioning, despite the inherent volatility of the offshore cycle and ESG pressures [6]. - In a bullish scenario, continued strong dayrates and deleveraging could lead to a two- to threefold upside in equity value, making it a compelling asymmetric investment opportunity [6].

Core Insights - Optimist Fund reported its strongest investment performance in Q2 2025, achieving a return of 39.2%, significantly outperforming its benchmark which returned 11.3% [1] Company Overview: ThredUp Inc. (NASDAQ:TDUP) - ThredUp Inc. is an online resale platform focused on secondhand apparel, shoes, and accessories, with a market capitalization of $1.33 billion as of September 15, 2025 [2] - The stock experienced a remarkable one-year return of 1,062.54% and a one-month return of 1.98% [2] Financial Performance - ThredUp Inc. reported a revenue growth of 16.4% year-over-year, reaching $77.7 million in Q2 2025 [4] - The company exceeded expectations in Q1 2025 and raised its guidance for Q2 and the full year, indicating a positive outlook for future performance [3] Investment Sentiment - ThredUp Inc. was held by 25 hedge fund portfolios at the end of Q2 2025, an increase from 13 in the previous quarter, reflecting growing interest among institutional investors [4] - Despite its strong performance, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk compared to ThredUp Inc. [4]