Investment management company Headwaters Capital recently released its second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund declined by -20.5% compared to a -16.9% decline for the Russell Mid Cap index. High energy prices as a result of the Russian invasion affected the performance of the portfolio. You can check the top 5 holdings of the fund to know its best picks in 2022.
Headwaters Capital discussed stocks like SPS Commerce, Inc. (NASDAQ:SPSC) in the second quarter investor letter. Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) is a cloud-based supply chain management software provider. On August 22, 2022, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $126.93 per share. One-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was 12.28% and its shares lost 1.03% of their value over the last 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a market capitalization of $4.571 billion.
Here is what Headwaters Capital specifically said about SPS Commerce, Inc. (NASDAQ:SPSC):
“SPS Commerce, Inc. (NASDAQ:SPSC). After beginning to trim the SPS position in Q1 following the Q4 ’21 earnings release, I fully exited the position in early Q2. New customer additions for the company showed early signs of deceleration in Q4 ’21 and I am concerned that broader weakness in retail spending will ultimately lead to slower growth than the company has forecast. Commentary from adjacent peers in the supply chain management industry also suggest that competition in SPS’ core EDI business may be increasing. Additionally, part of the original thesis centered around the company’s shares trading at a discount to other high quality software peers. Given broader weakness in the software universe combined with share price appreciation for SPSC, that valuation discount is no longer present. The combination of slowing growth, increased competition and the potential for multiple compression drove the sell decision.”
Thanapun/Shutterstock.com
SPS Commerce, Inc. (NASDAQ:SPSC) is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, SPS Commerce, Inc. (NASDAQ:SPSC) was held by 14 hedge fund portfolios at the end of the first quarter, which was 17 in the previous quarter.
We discussed SPS Commerce, Inc. (NASDAQ:SPSC) in another article and shared the list of best mid cap stocks to buy in 2022. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.
Disclosure: None. This article is originally published at Insider Monkey.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.
And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.
What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.
In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…
This prediction might not be bold at all:
A few years from now, you’ll wish you’d owned this stock.
The best part? You can discover everything about this company and its groundbreaking technology right now.
I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.
Trust me — you’ll want to read this report before putting another dollar into any tech stock.
For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!
Here’s why this is a deal you can’t afford to pass up:
• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
• Bonus Reports: Premium access to members-only fund manager video interviews
• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.
If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.
Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.
Here’s what to do next:
1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.
2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.
Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!
