Optimist LP Fund and Optimist Trust Fund, managed by BloombergSen Inc. on Affirm Holdings, Inc.

Optimist believes Affirm has built a structurally superior buy-now-pay-later model by underwriting every transaction individually with known merchant, basket, and repayment terms, while avoiding compounding interest and late fees. Over six years that included a pandemic and a historic rate shock, credit performance stayed within management’s target range while gross merchandise value compounded above 35% annually. The fund argues Affirm’s longer-duration loans require underwriting capabilities that are harder to replicate and support higher merchant economics, allowing it to combine U.S. category leadership, fast growth, and strong profitability. Founder Max Levchin remains heavily aligned through more than $2 billion of stock ownership, while low U.S. BNPL penetration and expansion into services create a long runway. Optimist’s five-year target of $310 assumes roughly 30% annual GMV growth, operating margins scaling above 30%, and a 35 times earnings multiple.