Headwaters Capital Management’s third-quarter 2025 investor letter focused on AI. The portfolio returned -2.7% in the quarter compared to a +5.3% gain for the Russell Mid Cap Index. Bentley Systems, Incorporated (NASDAQ: BSY) was highlighted, with a one-month return of -2.62% and a market capitalization of $15.44 billion.

In the third quarter, Headwaters Capital Management sold Bentley Systems, Incorporated (NASDAQ: BSY) due to price appreciation on M&A rumors. The stock reached a price/sales multiple of 13x, capturing the rumored premium. This decision was detailed in their investor letter.

Bentley Systems, Incorporated (NASDAQ: BSY) is not among the 30 most popular stocks among hedge funds, with 28 portfolios holding it in the second quarter of 2025. In Q2, Bentley Systems reported revenues of $364 million, up 10% year-over-year. While it has potential, AI stocks with greater upside potential and less downside risk are preferred by some investors.

For more insights on Bentley Systems, Incorporated (NASDAQ: BSY) and investor perspectives, check out additional articles and hedge fund investor letters from Q3 2025. Stay informed on industry trends and expert opinions for a comprehensive view of the market.

Read more at Yahoo Finance: Headwaters Capital Management Sold Bentley Systems (BSY) by Capturing the M&A Premium