Is Waystar a Buy After Investment Company Capricorn Fund Managers Makes the Stock Its Top Holding?
Key Points
Capricorn Fund Managers initiated a position in Waystar with 505,122 shares acquired, estimated at ~$19.15 million based on the average price during Q3 2025.
The Waystar stake represents 6.4% of Capricorn Fund Managers' 13F reportable assets under management.
Capricorn Fund Managers' post-trade holding is 505,122 shares valued at $19.15 million.
Waystar is now the fund’s largest holding by reported market value.
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What happened
According to a filing with the Securities and Exchange Commission dated October 17, 2025, investment management company Capricorn Fund Managers Ltd established a new position in Waystar (NASDAQ:WAY), acquiring 505,122 shares. The estimated transaction value, based on the average closing price during the third quarter of 2025, was approximately $19.15 million. This addition brings the fund’s total reported positions to 59 at quarter-end.
What else to know
The new position in Waystar accounts for 6.4% of Capricorn Fund Managers' 13F reportable assets under management. The stock is now the fund’s largest holding by reported market value.
The fund's top holdings after the filing are:
- WAY: $19.15 million (6.4% of AUM)
- TARS: $14.26 million (4.8% of AUM)
- MSFT: $14.15 million (4.8% of AUM)
- VERA: $13.10 million (4.4% of AUM)
- REAL: $12.64 million (4.2% of AUM)
As of October 16, 2025, shares of Waystar were priced at $36.81, up 34% over the one-year period, outperforming the S&P 500 by 20 percentage points during the same timeframe.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close October 16, 2025) | $36.81 |
| Market capitalization | $7.06 billion |
| Revenue (TTM) | $1.01 billion |
| Net income (TTM) | $85.94 million |
Company snapshot
Waystar provides a cloud-based software platform for healthcare payments, including solutions for financial clearance, patient financial care, claims and payment management, denial prevention and recovery, revenue capture, and analytics.
IMAGE SOURCE: GETTY IMAGES.
The company serves healthcare organizations as its primary customers, targeting providers seeking to optimize revenue cycle management and payment processes.
Waystar was founded in 2017 and is headquartered in Lehi, Utah, working in the technology sector with approximately 1,500 employees. The company operates at scale in the healthcare technology industry, focusing on streamlining payment processes for healthcare providers through its cloud-based platform.
Foolish take
Capricorn Fund Managers' new position in Waystar stock merits attention for a few reasons. The investment management company not only deemed Waystar a valuable addition to its portfolio, but the purchase was so big, the stock catapulted to the top of its holdings.
Investing in Waystar makes sense. The business boasts some compelling qualities. It has grown revenue every quarter for the past two years, and the trend continues in 2025.
In Q2, Waystar's sales rose 15% year over year to $270.7 million. The company expects to hit $1 billion in revenue this year, up from $944 million in 2024.
Waystar also had a solid balance sheet exiting Q2. Total assets were $4.7 billion compared to total liabilities of $1.5 billion. It does have over $1 billion in debt, but the company is slowly paying this down.
The consistent sales growth Waystar is experiencing, and its forward price-to-earnings ratio of about 25, which is reasonable for a fast-growing tech company, explains Capricorn Fund Managers' big buy of Waystar stock. These factors make the stock a worthwhile investment for the long haul.
Glossary
13F reportable assets under management: The total value of securities a fund must disclose quarterly to the Securities and Exchange Commission (SEC) on Form 13F.
Stake: The ownership interest or investment a fund or individual holds in a company.
Initiated position: When an investor or fund purchases shares of a company for the first time.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Quarter-end: The last day of a fiscal quarter, used for financial reporting and portfolio snapshots.
Outperforming: Achieving a higher return or growth rate compared to a benchmark or index.
Cloud-based platform: Software and services delivered over the internet rather than installed locally on computers.
Revenue cycle management: The process healthcare providers use to track patient care revenue from appointment to final payment.
Denial prevention and recovery: Strategies to reduce and resolve rejected insurance claims in healthcare billing.
Market value: The current worth of an asset or holding based on the latest market price.
Healthcare payments: Financial transactions related to medical services, including billing, claims, and reimbursements.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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