Headwaters Capital Management’s Q1 2025 Investor Letter

Headwaters Capital Management, an investment management company, released its first-quarter 2025 investor letter. Smaller businesses, which are thought to be more susceptible to economic downturns, faced a challenging combination of economic and policy uncertainties in the quarter. It was not unexpected that small-cap equities led the market lower given the economic conditions that prevailed in Q1. In this environment, the fund returned -9.0% (-9.2% net) in the quarter compared to a -3.4% return for the Russell Mid Cap Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

A copy of Headwaters Capital Management’s Q1 2025 investor letter can be downloaded here.