Headwaters Capital Management, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The portfolio gained 7.2% (gross) in the fourth quarter compared to a 9.2% return for the Russell Mid Cap Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Headwaters Capital highlighted stocks like ICF International, Inc. (NASDAQ:ICFI) in the Q4 2022 investor letter. Headquartered in Fairfax, Virginia, ICF International, Inc. (NASDAQ:ICFI) is a management, marketing, technology, and policy consulting and implementation services provider. On February 21, 2023, ICF International, Inc. (NASDAQ:ICFI) stock closed at $103.69 per share. One-month return of ICF International, Inc. (NASDAQ:ICFI) was 4.37%, and its shares gained 17.99% of their value over the last 52 weeks. ICF International, Inc. (NASDAQ:ICFI) has a market capitalization of $1.954 billion.

Headwaters Capital made the following comment about ICF International, Inc. (NASDAQ:ICFI) in its Q4 2022 investor letter:

"Buys: ICF International, Inc. (NASDAQ:ICFI). See below.

ICF International (“ICFI”): Investing in the “-Ologists” for Government IT Modernization and Complex Program Implementation.

Thesis

1) Government advisory and service provider leveraged to secular growth areas of the civilian budget, civilian budget less cyclical than defense budget.

2) Civilian agency focus combined with decades of institutional knowledge serves as a competitive advantage relative to commercial consulting firms and defense focused government services firms.

3) Highly visible and recurring revenue given long-term nature of government contracts and high win-rate on re-compete bids. 4) M&A tailwind to organic growth: portfolio of services that are well suited for complementary acquisitions, strong cash flow to fund M&A. 5) Improved mix of durable, higher growth segments combined with stabilization of low growth businesses is under-appreciated by the market...” ( Click here to read the full text)

ICF International, Inc. (NASDAQ:ICFI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held ICF International, Inc. (NASDAQ:ICFI) at the end of the fourth quarter which was 12 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.