Headwaters Capital’s Top Contributor: Inspire Medical Systems (INSP)

Headwaters Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The Headwaters Capital portfolio declined by -10.9% for the first quarter of 2022 compared to the -5.7% decline of the Russell Mid Cap index for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Headwaters Capital mentioned  Inspire Medical Systems, Inc. (NYSE:INSP) and explained its insights for the company. Founded in 2007, Inspire Medical Systems, Inc. (NYSE:INSP)  is a Minnesota-based medical technology company with a $5.6 billion market capitalization. Inspire Medical Systems, Inc. (NYSE:INSP)  delivered a -10.56% return since the beginning of the year, while its 12-month returns are down by -13.12%. The stock closed at $205.76 per share on April 29, 2022.

Here is what Headwaters Capital has to say about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q1 2022 investor letter:

“Inspire Medical (“INSP”) +12%. Inspire Medical sells an implantable neurostimulation device to treat sleep apnea (detailed discussion in Q4 ’20 letter). Inspire outperformed during the quarter as the company continues to add new implant centers at a faster pace than management initially expected. Additionally, given that Inspire’s devices are an alternative to CPAP treatment, the company is expected to benefit from a recall of Phillips Respironics’ CPAP devices, which is driving increased interest in the Inspire device.”

national-cancer-institute–Ln-tYivJM4-unsplash

Our calculations show that Inspire Medical Systems, Inc. (NYSE:INSP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Inspire Medical Systems, Inc. (NYSE:INSP) was in 31 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 29 funds in the previous quarter. Inspire Medical Systems, Inc. (NYSE:INSP) delivered a -1.08% return in the past 3 months.

In June 2021, we also shared Headwater Capital’s second quarter 2021 views on Inspire Medical Systems, Inc. (NYSE:INSP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.