Headwaters Capital Management, an investment management company, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund increased by +18.1% (+17.1% net) in the fourth quarter compared to a +12.8% return for the Russell Mid Cap Index. For the full year, the fund returned +34.8% (+33.0% net) compared to a +17.2% return for the index. The extraordinary strength of the fourth quarter 2023 market returns was fueled by investor optimism that inflation is moderating and the Fed’s clear signal that rate cuts are expected to start in 2024. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Headwaters Capital Management featured stocks such as Inspire Medical Systems, Inc. (NYSE:INSP) in the fourth quarter 2023 investor letter. Headquartered in Golden Valley, Minnesota, Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company. On January 18, 2024, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $193.31 per share. One-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was -0.87%, and its shares lost 22.32% of their value over the last 52 weeks. Inspire Medical Systems, Inc. (NYSE:INSP) has a market capitalization of $5.707 billion.
Headwaters Capital Management stated the following regarding Inspire Medical Systems, Inc. (NYSE:INSP) in its fourth quarter 2023 investor letter:
“Top Detractor: Inspire Medical Systems, Inc. (NYSE:INSP): Technically there were no detractors during the quarter as every position increased in value. However, INSP’s stock only increased +2.5% during the quarter, significantly underperforming the broader market. INSP Q3 results were disappointing as revenue only modestly exceeded expectations due to sales disruptions caused by a change in the way INSP’s doctors pursue insurance approvals. The sales disappointment inflamed fears that INSP’s treatment for sleep apnea will be disrupted by GLP-1 weight loss drugs, which will result in lower prevalence of sleep apnea (see Q3 letter). Despite the disappointing quarter, I continue to believe in the long-term potential for INSP’s therapy and, encouragingly, the Company pre-released fourth quarter results in early January, which exceeded expectations.”
A medical professional performing a minimally invasive procedure while using the company’s technology.
Inspire Medical Systems, Inc. (NYSE:INSP) is not our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP)at the end of third quarter which was 47 in the previous quarter.
We discussed Inspire Medical Systems, Inc. (NYSE:INSP) in another article and shared the list of best mid-cap growth stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
