<div id="readability-page-1">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 Brown &amp; Brown, Inc. (NYSE:BRO). Headquartered in Daytona Beach, Florida, Brown &amp; Brown, Inc. (NYSE:BRO) provides insurance products and services. The one-month return of Brown &amp; Brown, Inc. (NYSE:BRO) was -1.04%, and its shares gained 41.13% of their value over the last 52 weeks. On April 9, 2025, Brown &amp; Brown, Inc. (NYSE:BRO) stock closed at $116.64 per share with a market capitalization of $33.432 billion. Headwaters Capital Management stated the following regarding Brown &amp; Brown, Inc. (NYSE:BRO) in its Q1 2025 investor letter: <blockquote> “Top Contributor: Brown &amp; Brown, Inc. (NYSE:BRO) +22%. BRO was a stand-out performer during the quarter and is a perfect example of the market rotation that occurred in Q1. Fundamental results remained strong, but were largely in line with expectations. However, the stock was a beneficiary of multiple expansion as investors viewed BRO’s P&amp;C brokerage business as a safe haven in a tumultuous market. BRO’s multiple expanded from 18x EBITDA at the beginning of the quarter to 21x by the end of the quarter. While I continue to expect BRO to post strong results from a combination of pricing, volume and M&amp;A, the stock is trading at a peak multiple on what is likely near peak P&amp;C rates given the prolonged strong pricing environment over the last 4 years. Given the significant outperformance during the quarter and elevated valuation, I significantly reduced the position size as I saw better opportunities in other parts of the market. 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. BRO has been a core holding in the HCM portfolio since launch and has been a meaningful outperformer (+170% gain, or a 26% IRR) thanks to a hard market in P&amp;C pricing and disciplined capital deployment through accretive M&amp;A. BRO’s multiple has expanded in conjunction with these strong results, which has also contributed to stock price performance. Today, BRO is trading at an all-time high multiple and it’s hard for me to envision a stronger P&amp;C pricing market than what we just experienced. Additionally, given BRO’s current size, tuck-in acquisitions no longer contribute as significantly to earnings growth. Larger M&amp;A transactions are more competitive and carry higher multiples, which mutes EPS accretion and comes with increased execution risk. Given that BRO was also the beneficiary of a “risk-off” trade during Q1, it was an opportunistic time to reallocate proceeds into CBZ, which was temporarily caught up in the small cap sell-off.” </blockquote> <div id="attachment_1228770"><img src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/11/26014748/CIA-insidermonkey-1700981266392-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc3NTc3OTIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="830" height="465" original-src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/11/26014748/CIA-insidermonkey-1700981266392-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc3NTc3OTIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA"/>A close-up of a life insurance policy with a middle-and lower-income family in the background.</div> Brown &amp; Brown, Inc. (NYSE:BRO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Brown &amp; Brown, Inc. (NYSE:BRO) at the end of the fourth quarter compared to 35 in the third quarter. In the fourth quarter of 2024, Brown &amp; Brown, Inc. (NYSE:BRO) reported revenues of $1.2 billion, representing an increase of 15% in total and 14% organically over Q4 of 2023. While we acknowledge the potential of Brown &amp; Brown, Inc. (NYSE:BRO) 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 Brown &amp; Brown, Inc. (NYSE:BRO) in another article, where we shared the list of pro-life companies to invest in. 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.Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! My #1 AI stock pick delivered solid gains since the beginning of 2025 while popular AI stocks like NVDA and AVGO lost around 25%. The numbers speak for themselves: while giants of the AI world bleed, our AI pick delivers, showcasing the power of our research and the immense opportunity waiting to be seized. The whispers are turning into roars. Artificial intelligence isn’t science fiction anymore. It’s the revolution reshaping every industry on the planet. From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards. Here’s why this is the prime moment to jump on the AI bandwagon: Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory. Imagine every sector, from healthcare to finance, infused with superhuman intelligence. We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything. This isn’t a maybe – it’s an inevitability. Early investors will be the ones positioned to ride the wave of this technological tsunami. Ground Floor Opportunity: Remember the early days of the internet? Those who saw the potential of tech giants back then are sitting pretty today. AI is at a similar inflection point. We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon. This is your chance to get in before the rockets take off! Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation. AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries. The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust. As an investor, you want to be on the side of the winners, and AI is the winning ticket. The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI. From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field. This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements. By investing in AI, you’re essentially backing the future. The future is powered by artificial intelligence, and the time to invest is NOW. Don’t be a spectator in this technological revolution. Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation. This isn’t just about making money – it’s about being part of the future. So, buckle up and get ready for the ride of your investment life! Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!) The AI revolution is upon us, and savvy investors stand to make a fortune. But with so many choices, how do you find the hidden gem – the company poised for explosive growth? That’s where our expertise comes in. We’ve got the answer, but there’s a twist… Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap. That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade! Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity. This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors. It’s like having a race car on a go-kart track. They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field. Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel. We want to make sure none of our valued readers miss out on this groundbreaking opportunity! That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%. For a ridiculously low price of just $29.99, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal! Here’s why this is a deal you can’t afford to pass up: • Access to our Detailed Report on this Game-Changing AI Stock:Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential. • 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan. • One free upcoming issue of our 70+ page Quarterly Newsletter:A value of $149 • Bonus Reports:Premium access to members-only fund manager video interviews • Ad-Free Browsing:Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity. • 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked. Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment. Here’s what to do next: 1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.99. 2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months. 3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee. Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future! Subscribe Now! No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later! I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries. We’re independently funding today’s broadcast to address something on the mind of every investor in America right now… Should I put my money in Artificial Intelligence? Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin. Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance… But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down. That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet… And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day. He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance. Click to continue reading… </div>

英偉達財報，一站看懂！

Headwaters Capital Management 2025 年第一季度投資者信函強調了 Brown & Brown, Inc. (NYSE:BRO) 作為主要貢獻者，股票價值增長了 22%。儘管經濟環境嚴峻，BRO 的表現得益於其財產與意外保險經紀業務，EBITDA 的倍數從 18 倍擴展至 21 倍。該基金在第一季度回報為 -9.0%，表現不及羅素中型股指數。信函雖然承認 BRO 的強勁基本面，但指出戰略性減少持倉規模，以尋求市場中更好的機會

Headwaters Capital Management 第一季度的最大貢獻者：Brown & Brown (BRO)