Westwind Capital Exits Waystar Stake Amid Market Mistrust

On a day when the markets hummed with the usual cacophony of hope and hubris, Westwind Capital, that New Mexico-based institution with a penchant for calculated retreats, chose to liquidate its entire holding in Waystar (WAY +4.29%) for a tidy $15.96 million. One might call it a polite exit, though the stock’s performance over the past year suggests it was a rather one-sided conversation.

What Happened

In a filing as unassuming as a poorly timed yawn, Westwind disclosed the sale of 420,897 shares of Waystar, reducing its stake to zero. A gesture of indifference, perhaps, or a sigh of relief from a portfolio that had grown weary of the stock’s persistent lack of pizzazz.

What Else to Know

The fund’s previous 3.3% allocation to Waystar had been a modest bet, but one that now appears to have been abandoned in favor of safer, more predictable companions. Its new portfolio, a gallery of mega-cap stalwarts-Visa, Mastercard, Alphabet, Amazon, and Intuitive Surgical-speaks to a preference for the familiar over the ambitious. After all, who needs disruptive innovation when one can simply coast on the goodwill of the market’s old guard?

NYSE:V: $39.51 million (8.1% of AUM)
NYSE:MA: $38.89 million (8.0% of AUM)
NASDAQ:GOOGL: $37.89 million (7.7% of AUM)
NASDAQ:AMZN: $32.10 million (6.6% of AUM)
NASDAQ:ISRG: $30.95 million (6.3% of AUM)

Waystar’s shares, priced at $33.08 as of Thursday, have stumbled through the past year, trailing the S&P 500 by a margin that would make even the most stoic investor raise an eyebrow. A 12% decline is not merely a stumble-it’s a full-fledged waltz with gravity, and one that leaves little room for applause.

Company Overview

Metric	Value
Price (as of Thursday)	$33.08
Market Capitalization	$6 billion
Revenue (TTM)	$1.04 billion
Net Income (TTM)	$111.18 million

Company Snapshot

Waystar, in its self-assured manner, offers cloud-based payment solutions for healthcare providers. A noble endeavor, one might say, though the industry’s bureaucratic tangles are not easily unraveled by even the slickest of algorithms.
Its SaaS model, while profitable, is a game of patience. Hospitals and physicians, after all, are not known for their haste in adopting new technologies-or their enthusiasm for paying for them.
The company’s recent acquisitions, while promising, may yet prove to be the kind of “strategic moves” that sound brilliant in boardrooms but falter in execution.

Waystar’s claim to streamline healthcare payments is as appealing as a well-tailored suit-but the fabric of the industry is often stubborn and ill-fitting.

What this transaction means for investors

Let us not mince words: this exit is less a rejection of Waystar’s fundamentals and more a retreat to safer shores. The company’s third-quarter results-$268.7 million in revenue, a 42% adjusted EBITDA margin, and a net revenue retention rate of 113%-are the kind of numbers that should inspire confidence, not trepidation. Yet here we are, watching a fund divest itself of a position amid a stock price that has done little to charm its shareholders.

Is this a vote of no confidence? Perhaps. Or perhaps it is a simple acknowledgment that, in the theater of investing, even the brightest stars can be eclipsed by the constellations of inertia. Waystar’s operating cash flow of $82 million is commendable, but the specter of integration risk and acquisition debt looms like an uninvited guest at a dinner party.

For the long-term observer, the lesson is clear: momentum is a fickle friend, and patience is a virtue often mistaken for naivety. Westwind’s move is not a condemnation of Waystar’s potential, but a reminder that in the grand ballroom of finance, partners change with the music.

Glossary

13F reportable AUM: A disclosure requirement so tedious it could rival a tax audit, yet essential for those who wish to play the game with both hands visible.

Quarterly average pricing: A mathematical convenience that allows one to estimate value without the bother of precision.

Liquidation: The art of saying goodbye to a holding with the grace of a departing guest who has no intention of returning.

Stake: A metaphorical flag planted in the soil of a company’s equity, though sometimes the ground proves too soft for such bold gestures.

Allocation: The percentage of one’s portfolio dedicated to a particular asset, a figure that can shift as dramatically as the tides if the market deems it so.

Denial prevention: A valiant effort to avoid the unpleasantness of rejected claims, though the insurance industry seems determined to make it a perpetual challenge.

Revenue capture: The delicate act of ensuring every penny earned is collected, a pursuit as fraught with obstacles as a game of chess with an uncooperative opponent.

Cloud-based software platform: A term so ubiquitous it has become synonymous with buzzword bingo, though its practical applications remain undeniably useful.

TTM: A period so frequently invoked in financial discourse that it might as well be a holiday. The 12 months ending with the most recent quarter, for those who prefer clarity to jargon.

After all, what is a market if not a stage for the eternal dance of hope and despair? A winking emoji, perhaps, to acknowledge the absurdity of it all. 😉

2026-01-10 20:28