logo
#

Latest news with #RussellMidCapIndex

Headwaters Capital Management Sold Transmedics (TMDX) After a Strong Q1 Report
Headwaters Capital Management Sold Transmedics (TMDX) After a Strong Q1 Report

Yahoo

time15-07-2025

  • Business
  • Yahoo

Headwaters Capital Management Sold Transmedics (TMDX) After a Strong Q1 Report

Headwaters Capital Management, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio bounced back from the first quarter uncertainty and, like the rest of the market, experienced a strong rebound after the tariff-induced sell-off at the start of the quarter. The portfolio gained +7.5% (+7.3% net) in the quarter compared to a +8.5% gain for the Russell Mid Cap Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Headwaters Capital Management highlighted stocks such as TransMedics Group, Inc. (NASDAQ:TMDX). TransMedics Group, Inc. (NASDAQ:TMDX) is a medical technology company. The one-month return of TransMedics Group, Inc. (NASDAQ:TMDX) was -14.19%, and its shares lost 23.01% of their value over the last 52 weeks. On July 14, 2025, TransMedics Group, Inc. (NASDAQ:TMDX) stock closed at $116.88 per share, with a market capitalization of $3.954 billion. Headwaters Capital Management stated the following regarding TransMedics Group, Inc. (NASDAQ:TMDX) in its second quarter 2025 investor letter: "Top Contributor: TransMedics Group, Inc. (NASDAQ:TMDX) +98%. The top contributor for Q2 '25 was also the top detractor in Q4 '24. How quickly narratives can change despite actual results largely remaining the same. Concerns around TMDX approaching a market share ceiling were dismissed with Q1 '25 results. Market share gains for its OCS heart product resumed once a competitor's clinical trial reached completion, OCS liver continued to steadily gain share and seasonality in the transplant industry flipped from a headwind to a tailwind. Nonetheless, competitive dynamics are likely to change later in 2025 and into 2026, which led to the decision to sell TMDX following the strong share price performance (see details below). 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 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held TransMedics Group, Inc. (NASDAQ:TMDX) at the end of the first quarter, which was 29 in the previous quarter. TransMedics Group, Inc. (NASDAQ: TMDX) reported total revenue of $143.5 million for 1Q 2025, reflecting a year-over-year growth of about 48% and a sequential increase of around 18% from 4Q 2024. While we acknowledge the potential of TMDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered TransMedics Group, Inc. (NASDAQ:TMDX) and shared best mid cap growth stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.

Here's Headwaters Capital Management's Investment Thesis for Bio-Techne (TECH)
Here's Headwaters Capital Management's Investment Thesis for Bio-Techne (TECH)

Yahoo

time15-07-2025

  • Business
  • Yahoo

Here's Headwaters Capital Management's Investment Thesis for Bio-Techne (TECH)

Headwaters Capital Management, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio bounced back from the first quarter uncertainty and, like the rest of the market, experienced a strong rebound after the tariff-induced sell-off at the start of the quarter. The portfolio gained +7.5% (+7.3% net) in the quarter compared to a +8.5% gain for the Russell Mid Cap Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Headwaters Capital Management highlighted stocks such as Bio-Techne Corporation (NASDAQ:TECH). Bio-Techne Corporation (NASDAQ:TECH), with a market capitalization of $8.249 billion, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets. The one-month return of Bio-Techne Corporation (NASDAQ:TECH) was 6.30%, and its shares lost 34.08% of their value over the last 52 weeks. On July 14, 2025, Bio-Techne Corporation (NASDAQ:TECH) stock closed at $52.62 per share. Headwaters Capital Management stated the following regarding Bio-Techne Corporation (NASDAQ:TECH) in its second quarter 2025 investor letter: "Buy: Bio-Techne Corporation (NASDAQ:TECH): A new position was added early in July and will be detailed in the Q3 letter. Summary Thesis: 1) Market leading life sciences reagents and instrument company. Recurring consumable revenue, strong profit margins, healthy free cash flow and a net cash position. 2) Concern around US academic funding is weighing on shares of TECH, pressuring the stock to its lowest valuation since 2017. 3) Revenue growth rate inflecting higher in FY '27 (6/30 FYE) as Company laps one-time NIH budget reset and growth assets propel consolidated revenue. 4) Coveted asset as evidenced by recent M&A transactions, which supports a significantly higher valuation than implied by current share price. A cutting-edge laboratory with technicians in white coats studying a POC device. Bio-Techne Corporation (NASDAQ:TECH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Bio-Techne Corporation (NASDAQ:TECH) at the end of the first quarter, which was 24 in the previous quarter. In the fiscal second quarter of 2025, Bio-Techne Corporation (NASDAQ:TECH) generated $316.2 million in revenues, up 6% year-over-year on an organic basis and 4% on reported basis. While we acknowledge the potential of TECH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Bio-Techne Corporation (NASDAQ:TECH) and shared the list of best S&P 500 stocks with huge upside potential. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.

Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?
Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?

Yahoo

time13-06-2025

  • Business
  • Yahoo

Should iShares Russell Mid-Cap ETF (IWR) Be on Your Investing Radar?

The iShares Russell Mid-Cap ETF (IWR) was launched on 07/17/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market. The fund is sponsored by Blackrock. It has amassed assets over $41.15 billion, making it one of the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market. Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential. Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics. Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same. Annual operating expenses for this ETF are 0.19%, putting it on par with most peer products in the space. It has a 12-month trailing dividend yield of 1.06%. It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Industrials sector--about 17.10% of the portfolio. Financials and Information Technology round out the top three. Looking at individual holdings, Palantir Technologies Inc Class A (PLTR) accounts for about 1.99% of total assets, followed by Microstrategy Inc Class A (MSTR) and Arthur J Gallagher (AJG). The top 10 holdings account for about 7.46% of total assets under management. IWR seeks to match the performance of the Russell MidCap Index before fees and expenses. The Russell Midcap Index measures the performance of the mid-capitalization sector of the U.S. equity market. The ETF has gained about 2.61% so far this year and is up about 11.94% in the last one year (as of 06/13/2025). In the past 52-week period, it has traded between $74.88 and $95.52. The ETF has a beta of 1.04 and standard deviation of 18.64% for the trailing three-year period, making it a medium risk choice in the space. With about 814 holdings, it effectively diversifies company-specific risk. IShares Russell Mid-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWR is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $80.88 billion in assets, iShares Core S&P Mid-Cap ETF has $93.41 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%. Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Russell Mid-Cap ETF (IWR): ETF Research Reports Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research Reports Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Transcat (TRNS) Fell on Disappointing Results
Transcat (TRNS) Fell on Disappointing Results

Yahoo

time10-04-2025

  • Business
  • Yahoo

Transcat (TRNS) Fell on Disappointing Results

Headwaters Capital Management, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. 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. In its first quarter 2025 investor letter, Headwaters Capital Management emphasized stocks such as Transcat, Inc. (NASDAQ:TRNS). Transcat, Inc. (NASDAQ:TRNS) offers calibration and laboratory instrument services. The one-month return of Transcat, Inc. (NASDAQ:TRNS) was 7.68%, and its shares lost 30.33% of their value over the last 52 weeks. On April 9, 2025, Transcat, Inc. (NASDAQ:TRNS) stock closed at $76.54 per share with a market capitalization of $690.48 million. Headwaters Capital Management stated the following regarding Transcat, Inc. (NASDAQ:TRNS) in its Q1 2025 investor letter: "Top Detractor: Transcat, Inc. (NASDAQ:TRNS) – 30%. TRNS delivered a disappointing quarter as results from their 2021 Nexa acquisition materially missed expectations. As a reminder, TRNS provides inspection and calibration services for test and measurement instruments in the life sciences and industrial industries. These calibration and testing services are highly regulated by governing bodies (FDA, etc) and are required to be performed on a regular schedule. NEXA provides more project-based consulting services and this part of NEXA's business saw a material decline in performance. Management appears to have ring fenced the issue and more importantly, the core calibration business for TRNS continues to perform well. Given the critical nature of Transcat's services, the continued trend toward outsourcing these services and ample M&A opportunities, I continue to believe in the long-term thesis for TRNS." A technician inspecting a complex instrument, relics of advanced technology in the backdrop. Transcat, Inc. (NASDAQ:TRNS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Transcat, Inc. (NASDAQ:TRNS) at the end of the fourth quarter which was 10 in the previous quarter. In the fiscal third quarter of 2025, Transcat, Inc.'s (NASDAQ:TRNS) consolidated revenue was up 2% to $66.8 million however, organic revenue fell 4% from prior year quarter. While we acknowledge the potential of Transcat, Inc. (NASDAQ:TRNS) 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. We covered Transcat, Inc. (NASDAQ:TRNS) in another article, where we shared Conestoga Capital Advisors' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

Here's Why Headwaters Capital Management Added CBIZ (CBZ) to its Portfolio
Here's Why Headwaters Capital Management Added CBIZ (CBZ) to its Portfolio

Yahoo

time10-04-2025

  • Business
  • Yahoo

Here's Why Headwaters Capital Management Added CBIZ (CBZ) to its Portfolio

Headwaters Capital Management, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. 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. In its first quarter 2025 investor letter, Headwaters Capital Management emphasized stocks such as CBIZ, Inc. (NYSE:CBZ). CBIZ, Inc. (NYSE:CBZ) offers financial, insurance, and advisory services. The one-month return of CBIZ, Inc. (NYSE:CBZ) was 11.19%, and its shares gained 2.41% of their value over the last 52 weeks. On April 9, 2025, CBIZ, Inc. (NYSE:CBZ) stock closed at $76.12 per share with a market capitalization of $4.115 billion. Headwaters Capital Management stated the following regarding CBIZ, Inc. (NYSE:CBZ) in its Q1 2025 investor letter: "During the quarter, two new positions were added. The fist new company added was CBIZ, Inc. (NYSE:CBZ), a provider of accounting, tax and advisory services to small and midsize businesses. The addition of CBIZ was funded with proceeds from the partial sale of BRO, which had grown to be the largest position in the portfolio. When looking at CBZ, I see a lot of similarities to BRO 4 years ago. Similar to BRO's P&C brokerage services, accounting and tax services are essential and required in any economic environment. High customer retention, ongoing new business wins and moderate pricing increases provide visibility into future revenue growth. CBZ also generates strong free cash flow, which will be utilized for M&A that can contribute more materially to results than for BRO. Valuation was also attractive with the stock trading down to a level not seen since July of 2019. CBZ's multiple compression was driven by a soft earnings report at the end of February when the company forecast lower revenue than expected from Marcum, its most recent acquisition. The sell-off was exacerbated by broader equity market weakness the following week, creating a temporary dislocation that HCM capitalized on. Speaking with management after the earnings call, I gained comfort in the outlook for the acquired Marcum business and increased conviction that the expense synergies associated with the deal are likely to exceed street expectations. Assuming the stock recovers back to its 14x EBITDA multiple, my price target of $114 on 2027 estimates represents +72% upside from our purchase price, or a +22% IRR. For a business that shares many of the same characteristics as BRO (CBZ even has a small P&C brokerage business), this significant upside warranted a re-allocation of funds." A close-up of an accountant in a suit, examining a financial report. CBIZ, Inc. (NYSE:CBZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held CBIZ, Inc. (NYSE:CBZ) at the end of the fourth quarter compared to 19 in the third quarter. CBIZ, Inc.'s (NYSE:CBZ) fourth quarter revenue increased 40.5% from Q4 2023 (see the details here). While we acknowledge the potential of CBIZ, Inc. (NYSE:CBZ) 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 addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store