Headwaters Capital Management Sold Bentley Systems (BSY) by Capturing the M&A Premium

Core Insights - Headwaters Capital Management's third-quarter 2025 investor letter focused on AI investments, reporting a portfolio return of -2.7% compared to a +5.3% gain for the Russell Mid Cap Index [1] Company Overview - Bentley Systems, Incorporated (NASDAQ:BSY) is highlighted as an infrastructure engineering software solutions provider, with a one-month return of -2.62% and a 52-week gain of 1.72%. As of October 13, 2025, its stock closed at $50.85, with a market capitalization of $15.44 billion [2] Investment Actions - Headwaters Capital Management sold its position in Bentley Systems during the quarter due to significant stock appreciation driven by M&A rumors, with the stock reaching a price/sales multiple of 13x, effectively capturing the rumored M&A premium [3] - Bentley Systems reported total revenues of $364 million for the second quarter of 2025, reflecting a 10% year-over-year increase on a reported basis and a 9% increase on a constant currency basis [3] Hedge Fund Interest - Bentley Systems was held by 28 hedge fund portfolios at the end of the second quarter of 2025, a decrease from 38 in the previous quarter, indicating a decline in hedge fund interest [3]