Headwaters Capital Management, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. It was a calm period for the market compared to the last three years. The fund returned +1.3% (+1.1% net) in the second quarter compared to a -3.4% fall for the Russell Mid Cap Index. The company focuses on investing in companies with a competitive edge, strong cash flow, and extended growth prospects. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Headwaters Capital Management highlighted stocks like TransMedics Group, Inc. (NASDAQ:TMDX) in the Q2 2024 investor letter. TransMedics Group, Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company. The one-month return of TransMedics Group, Inc. (NASDAQ:TMDX) was 0.13%, and its shares gained 55.38% of their value over the last 52 weeks. On July 12, 2024, TransMedics Group, Inc. (NASDAQ:TMDX) stock closed at $142.19 per share with a market capitalization of $4.683 billion.
Headwaters Capital Management stated the following regarding TransMedics Group, Inc. (NASDAQ:TMDX) in its Q2 2024 investor letter:
“Top Contributor: TransMedics Group, Inc. (NASDAQ:TMDX) +104%: TransMedics posted strong first quarter results and raised full year revenue guidance. The results were validation of the Company’s strategy to own and operate an internal logistics fleet to drive increased adoption of their revolutionary organ care system. Market penetration in each organ (liver, heart and lung) remains low and when combined with the potential to grow the overall market should support strong revenue growth for the company for many years.”
A surgeon in a modern operating theatre performing a transplant surgery with medical technology.
TransMedics Group, Inc. (NASDAQ:TMDX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held TransMedics Group, Inc. (NASDAQ:TMDX) at the end of the first quarter which was 25 in the previous quarter. Total revenue of TransMedics Group, Inc. (NASDAQ:TMDX) for the first quarter 2024 increased to $96.9 million, a 133% increase over Q1 2023 and a 19% increase over Q4 2023. While we acknowledge the potential of TransMedics Group, Inc. (NASDAQ:TMDX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed TransMedics Group, Inc. (NASDAQ:TMDX) and shared Jim Cramer’s stock recommendations. In addition, please check out our hedge fund investor letters Q2 2024 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.
