Headwaters Capital Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter results were mainly focused on AI. The portfolio returned -2.7% (-2.9% net) in the quarter compared to a +5.3% 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 third-quarter 2025 investor letter, Headwaters Capital Management highlighted stocks such as Driven Brands Holdings Inc. (NASDAQ:DRVN). Headquartered in Charlotte, North Carolina, Driven Brands Holdings Inc. (NASDAQ:DRVN) provides automotive services to retail and commercial customers. The one-month return of Driven Brands Holdings Inc. (NASDAQ:DRVN) was -12.49%, and its shares gained 4.42% of their value over the last 52 weeks. On October 13, 2025, Driven Brands Holdings Inc. (NASDAQ:DRVN) stock closed at $15.13 per share, with a market capitalization of $2.486 billion.
Headwaters Capital Management stated the following regarding Driven Brands Holdings Inc. (NASDAQ:DRVN) in its third quarter 2025 investor letter:
“Buy: Driven Brands Holdings Inc. (NASDAQ:DRVN): A starter position in another holding was also added during the quarter.