Headwaters Capital Management, an investment management company, released its first-quarter 2024 investor letter. A copy of the investor letter can be downloaded here. The fund increased by +10.6% (+10.4% net) in the first quarter compared to a +8.6% return for the Russell Mid Cap Index. During Q1, large caps, led by the S&P 500 with a 10.4% gain, outperformed small caps, represented by the Russell 2000 with a 5% gain. Headwaters portfolio exceeded the Russell Mid Cap benchmark due to favorable stock selection. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Headwaters Capital Management featured stocks Qualys, Inc. (NASDAQ:QLYS) in the fourth quarter 2023 investor letter. Headquartered in Foster City, California, Qualys, Inc. (NASDAQ:QLYS) is a cloud-based information technology (IT), security, and compliance solutions provider. On April 9, 2024, Qualys, Inc. (NASDAQ:QLYS) stock closed at $167.39 per share. One-month return of Qualys, Inc. (NASDAQ:QLYS) was -2.48%, and its shares gained 31.12% of their value over the last 52 weeks. Qualys, Inc. (NASDAQ:QLYS) has a market capitalization of $6.19 billion.
Headwaters Capital Management stated the following regarding Qualys, Inc. (NASDAQ:QLYS) in its first quarter 2024 investor letter:
“Top Detractor: Qualys, Inc. (NASDAQ:QLYS) -13%: QLYS underperformed during Q1 as Microsoft announced that it will be sunsetting its partnership with Qualys effective May 1st . While a clear negative headline, the ultimate financial impact is likely to be modest with only a 1% headwind to revenue growth in 2024. More importantly, cybersecurity threats continue to proliferate and QLYS’ vulnerability management tool remains a critical solution within the cybersecurity ecosystem. In addition to healthy end market demand and an industry leading product, QLYS continues to release new products and functionality that should support ~10% revenue growth for many years. The company currently has 8% of its market cap in cash (and no debt) and, after adjusting for this cash balance, is trading at a 4.5% free cash flow yield.”
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Qualys, Inc. (NASDAQ:QLYS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Qualys, Inc. (NASDAQ:QLYS) was held by 31 hedge fund portfolios, up from 25 in the previous quarter, according to our database.
We discussed Qualys, Inc. (NASDAQ:QLYS) in another article and shared the list of best Russell 2000 stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
