This Fund Dumped a $16 Million Waystar Stake as Shares Lagged the Market by Nearly 30 Points

Company Overview - Waystar provides a cloud-based software platform focused on healthcare payments, including financial clearance, patient financial care, claims and payment management, denial prevention, revenue capture, and analytics solutions [5][8] - The company generates revenue through subscription and transaction-based fees, primarily serving hospitals, physician groups, and other healthcare organizations [12] Financial Performance - As of Thursday, Waystar's stock was priced at $33.08, with a market capitalization of $6 billion [5] - The company reported a total revenue of $1.04 billion and a net income of $111.18 million for the trailing twelve months (TTM) [5] - In the third quarter, Waystar achieved revenue of $268.7 million, reflecting a year-over-year growth of 12%, alongside an adjusted EBITDA margin of 42% and a net revenue retention rate of 113% [9] Recent Developments - Westwind Capital sold its entire position in Waystar, liquidating 420,897 shares for an estimated $15.96 million, reducing its stake to zero [2][3][6] - This position had previously represented 3.3% of Westwind Capital's assets under management (AUM) [4][6] - Despite Waystar's recent growth, Westwind Capital's decision to exit indicates concerns over the stock's performance, which has declined nearly 12% over the past year, underperforming the S&P 500 by nearly 30 percentage points [4][10] Market Position and Strategy - Waystar is positioned in the healthcare payments sector, benefiting from structural tailwinds in healthcare payments automation [11] - The company is scaling profitably, generating $82 million in operating cash flow in the quarter, but faces leverage and integration risks following recent acquisitions [11]