Globus Medical (GMED) Fell 19% in Q2

Headwaters Capital Management, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio bounced back from the first quarter uncertainty and, like the rest of the market, experienced a strong rebound after the tariff-induced sell-off at the start of the quarter. The portfolio gained +7.5% (+7.3% net) in the quarter compared to a +8.5% 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 second quarter 2025 investor letter, Headwaters Capital Management highlighted stocks such as Globus Medical, Inc. (NYSE:GMED). Globus Medical, Inc. (NYSE:GMED) is a bank holding company for Flagstar Bank, N.A. The one-month return of Globus Medical, Inc. (NYSE:GMED) was 2.53%, and its shares lost 20.32% of their value over the last 52 weeks. On July 14, 2025, Globus Medical, Inc. (NYSE:GMED) stock closed at $57.37 per share with a market capitalization of $7.767 billion.

Headwaters Capital Management stated the following regarding Globus Medical, Inc. (NYSE:GMED) in its second quarter 2025 investor letter:

"Top Detractor: Globus Medical, Inc. (NYSE:GMED) -19%. The Globus decline was discussed in detail as part of the May edition of Navigating the Currents. Q1 results were disappointing, although I believe they will prove transitory once the Nuvasive integration is completed later this year."

Globus Medical, Inc. (NYSE:GMED) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Globus Medical, Inc. (NYSE:GMED) at the end of the first quarter, which was 45 in the previous quarter. Globus Medical, Inc. (NYSE:GMED) reported revenue of $598.1 million. down 1.4% year-over-year on a reported basis. While we acknowledge the potential of GMED as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 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.