FICO - Headwaters Capital's First Quarterly Letter - Q4 2020

• Headwaters Capital Management is an actively managed, concentrated investment strategy focused on small and mid capitalization stocks. The strategy seeks to invest in a small number of industry leading companies with sustainable competitive advantages and the opportunity to generate durable, long-term revenue growth.
• The portfolio of 25 stocks went live on 1/4/2020, so there is no investment performance to discuss in this initial letter.
• In summary, semiconductors are the picks and shovels for technology innovation and may represent one of the most attractive secular growth opportunities in the market today.
• I believe 2021 will be the inflection year for INSP given the recent positive coverage decisions by commercial insurance and Medicare combined with improved surgeon reimbursement.

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