PDFS - Headwaters Capital Q2 2024 Investor Letter
2024-07-12 11:30:00 ET
Summary
- The Headwaters Capital Management portfolio returned +1.3% (+1.1% net) during Q2 2024 compared to a -3.4% decline for the Russell Mid Cap Index over the same period.
- Outside of the macro narratives that impacted the market, the AI theme continues to dominate individual company performance.
- My conviction in the opportunity for small caps has only grown given the ongoing outperformance of large caps while small caps continue to lag.
Dear Investors,
The Headwaters Capital Management, LLC ("Headwaters Capital," "Headwaters," or the "Firm") portfolio returned +1.3% (+1.1% net) during Q2 2024 compared to a -3.4% decline for the Russell Mid Cap Index over the same period. A brief discussion of the performance and trading activity during the quarter is presented below.
| Q1 24 |
| Q2 24 |
| YTD '24 |
| LTM (6/30/24) |
| Cumulative Since Inception (1/4/2021) |
| Headwaters Capital (Gross) |
| 10.6% |
| 1.3% |
| 12.0% |
| 22.2% |
| 37.5% |
| Headwaters Capital ('net') |
| 10.4% |
| 1.1% |
| 11.6% |
| 20.5% |
| 33.1% |
| Russell Mid Cap Index |
| 8.6% |
| -3.4% |
| 5.0% |
| 12.9% |
| 24.7% |