| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 1.8% |
River Oaks Capital targets small, underfollowed public companies in overlooked market corners where wonderful businesses trade at significant discounts to fair value. The fund's investment philosophy has evolved over six years to emphasize not just finding undervalued gems, but investing alongside management teams with clear long-term shareholder value creation strategies. The manager identifies four key strategies: growing out of small/underfollowed territory, dominating niche markets to become acquisition targets, divesting businesses to unlock trapped value, and operating like private companies with minimal public costs. Key positions include Ascent Industries, a specialty chemicals manufacturer transforming into a 'Chemicals-as-a-Service' model, and BuildDirect, consolidating the professional flooring industry. The approach centers on aggressive share buybacks using free cash flow when companies trade at 50 cents on the dollar, providing 8-15% annual returns until proper valuation is achieved. The manager emphasizes rigorous due diligence, active engagement with management on capital allocation, and patience for long-term value creation in an increasingly inefficient small-cap market.
River Oaks Capital invests in small, underfollowed public companies trading at significant discounts to fair value, focusing on wonderful businesses with management teams that have clear long-term shareholder value creation strategies.
The manager expects continued opportunities in small, underfollowed public companies as they become increasingly ignored and undervalued. Success will depend on companies that stop waiting to be found and start building something impossible to ignore through proactive value creation strategies.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Mar 1 2026 | 2025 Q4 | ACNT, BFCC, BILD.TO, BOC, CRMT, CZBS, DR.TO, FTLF, GFP, HAYPP, IVFH, OMCC, RRR.UN, RWAY, SRBK, TRUX | Banking, Buybacks, Consolidation, Flooring, small cap, Specialty Chemicals, undervalued, value | - | River Oaks Capital invests in small, underfollowed public companies trading at steep discounts, emphasizing wonderful businesses with management teams executing clear long-term value creation strategies. The fund focuses on share buybacks as a key return driver while companies remain undervalued, targeting 8-15% annual returns through patient capital deployment in an increasingly inefficient small-cap market. |
| Aug 28 2025 | 2025 Q2 | BCIC, BFCC, BILD.V, BOC, CRMT, CZBS, DR.TO, FTLF, GFP, HAYPP, IVFH, OMCC, RRR.UN, SRBK, TRUX | Buybacks, Capital Allocation, management, Niche, Quality, small caps, value |
BILD CN IVFH |
River Oaks Capital targets small, underfollowed public companies combining A+ management, niche businesses, and significant valuation discounts. Recent additions include BuildDirect (professional flooring expansion) and Innovative Food Holdings (asset-light food distribution). The manager emphasizes in-person due diligence to identify exceptional CEOs and encourages share buyback programs to protect against inefficient pricing in neglected small-cap markets. |
| Feb 10 2025 | 2024 Q4 | BFCC, BOC, CRMT, CZBS, DR.TO, FTLF, GFP, HAYPP, IVFH, LRFC, MFBP, MSVB, OMCC, RRR.UN, SKYH, TRUX | Broadband, Buybacks, Capital Allocation, Community Banks, Micro Cap, small caps, underfollowed, value | IVFH | River Oaks Capital targets underfollowed small cap companies with A+ management teams in fragmented industries or trading at excessive discounts. The fund emphasizes owner-operator mindset, extensive due diligence, and active engagement for capital returns. Portfolio companies are executing significant buyback programs while navigating industry-specific challenges, with the manager confident in long-term value creation through superior capital allocation. |
| Aug 20 2024 | 2024 Q2 | BEBE, BFCC, BOC, CRMT, CZBS, DR.TO, FTLF, GFP, GLXZ, HAYPP, LEGH, LRFC, MFBP, NICK, PRKA, RRR.UN, TRUX | Buybacks, Community Banks, Micro Cap, small caps, underfollowed, value | - | River Oaks Capital invests in 10-15 underfollowed micro and small cap companies trading at excessive discounts. The fund capitalizes on institutional neglect of small public companies, finding businesses at 5-10 P/E ratios with 15-25% free cash flow yields. Key themes include community banks with ECIP capital and aggressive share buyback programs by undervalued management teams. |
| Dec 31 2023 | 2023 Q4 | ALV.DE, CS.PA, GEN.MI, MC.PA | insurance, private equity, SME, software, Switzerland | - | MPD Partners operates a SME-focused private equity fund with holdings in Swiss insurance brokerage La Centrale de Prévoyance and proprietary lead generation software development. LCP faces broker retention challenges but shows positive cash flow trends. The fund emphasizes technology-driven value creation and maintains lean operations while building track record for future fund raising. |
| Jun 30 2023 | 2023 Q2 | BRK-B | AI, diversification, emerging markets, global, rates, technology, value | - | Fortress delivered strong Q3 returns through global diversification, avoiding expensive U.S. tech in favor of emerging markets and non-U.S. opportunities. AI momentum continued driving valuations higher, but the firm sees better value internationally. Fed rate cuts and Chinese policy support boosted markets. Management maintains conviction in their globally diversified approach despite recent outperformance. |
| Dec 31 2022 | 2022 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been the defining theme of market leadership in 2025, driving data center capex and benefiting semis, electrical equipment, and tech hardware. The theme reasserted dominance after NVIDIA's strong earnings in late November, though concerns about durability caused temporary rotation. |
Data Centers Semiconductors Infrastructure Capex Hardware |
ElectrificationPortfolio maintains largest absolute and relative exposure to Industrials sector representing conviction in the Electrification theme. Bloom Energy benefited from AI data center power demands, with fuel cells providing reliable onsite power for AI workloads. |
Power Grid Energy Storage Infrastructure Industrial | |
AerospacePortfolio retains conviction in the Aerospace theme alongside Electrification within the Industrials sector. Rocket Lab operates in Launch Services and Space Systems, providing rides to orbit for small satellites and manufacturing spacecraft components. |
Space Defense Launch Satellites Components | |
BiotechnologyBiotech was a standout performer during the quarter, delivering its best quarter in five years driven by improving rate environment, easing regulation enabling more M&A, and excitement around AI's promise in drug discovery efficiency. |
Drug Discovery M&A Regulation Innovation Healthcare | |
SolarFirst Solar differentiates with thin-film CdTe technology offering better performance in hot/humid/low light conditions. Trump Administration's 'One Big Beautiful Bill' has driven US demand for non-China solar products, providing additional tailwinds. |
Manufacturing Technology Policy Trade Energy | |
| 2025 Q2 |
Small CapsRiver Oaks Capital focuses exclusively on small, underfollowed public companies with market caps ranging from $40m to $460m. The fund seeks wonderful businesses in small, niche industries that are remote islands too time-consuming for major players to conquer, allowing dominant companies to generate above average returns for decades. |
Small Cap Underfollowed Niche Value Quality |
ValueThe fund emphasizes buying ownership at significant discounts to fair value, seeking companies trading at $0.50 or less on the dollar. Even wonderful companies require a margin of safety, especially in small public companies where mistakes are made at higher frequency and liquidity can be limited. |
Margin of Safety Discount Undervalued Fair Value Valuation | |
Food DistributionInnovative Food Holdings operates as a nationwide specialty food distributor using drop shipping to connect small food vendors to national broadline distributors. The asset-light business model requires virtually no working capital or inventory, making it highly scalable as the drop shipping business grows. |
Drop Shipping Specialty Food Distribution Asset Light Scalable | |
Building Materials RetailBuildDirect operates as a physical and online professional flooring company, targeting the fragmented professional buyer market. The company plans to expand from 7 to 75 professional flooring centers over the next decade, leveraging synergies between e-commerce and physical locations. |
Flooring Professional E-commerce Expansion Consolidation | |
BuybacksThe manager has taken a suggestivist approach, visiting portfolio companies to pitch implementing share buyback programs. Management teams being attentive to share price and prepared to buy back shares creates a floor for the share price and prevents dilutive situations when shares are needed as currency. |
Share Buybacks Capital Allocation Share Price Management Suggestivist | |
| 2024 Q4 |
Small CapsRiver Oaks Capital focuses exclusively on investing in underfollowed micro cap and small cap companies with market capitalizations under $1 billion. The manager emphasizes that small public companies are inefficiently priced and remain undiscovered for many years due to the shift towards passive investing. The fund's strategy involves finding wonderful businesses trading at significant discounts to fair value in this neglected market segment. |
Micro Cap Underfollowed Inefficient Passive Investing Undervalued |
ValueThe fund employs a deep value approach, seeking companies trading at excessive discounts to fair value - often $0.50 or less on the dollar. The manager emphasizes the importance of margin of safety and only invests in companies that can generate adequate returns of 10-15% per year just from free cash flow, assuming share prices never increase. This approach protects against business mistakes that are common in small public companies. |
Margin of Safety Excessive Discount Fair Value Free Cash Flow Undervalued | |
BuybacksShare buybacks are a central theme throughout the portfolio, with the manager actively engaging in 'suggestivist' investing to encourage management teams to repurchase shares. Multiple portfolio companies including Medical Facilities, Citizens Bank, and Truxton Trust have implemented significant buyback programs. The manager views buybacks as the simplest capital allocation decision for inefficiently priced small public companies. |
Share Repurchase Capital Allocation Suggestivist Accretive Management Engagement | |
Community BanksThe portfolio includes significant exposure to community banks including Citizens Bank, BankFirst, M&F Bank, and Mid-Southern Bank. These banks benefit from the ECIP program which provided favorable 2% interest rate loans that can be redeemed at 28% of face value. The manager sees these banks as generating strong returns on equity while maintaining conservative lending standards and returning capital to shareholders. |
ECIP Conservative Lending Return on Equity Capital Return Rural Banking | |
BroadbandThe fund has exposure to rural broadband through Boston Omaha Broadband and Amplex Internet (owned by Old Market Capital). These companies focus on building fiber internet to underserved rural areas where first mover advantage is critical. The manager emphasizes how small, nimble companies can execute fiber buildouts much faster than large providers in rural markets. |
Rural Fiber First Mover Infrastructure Underserved Markets Fiber Buildout | |
| 2024 Q2 |
Community BanksRiver Oaks owns multiple community banks including Citizens Bank, Truxton Bank, and Bankfirst. These banks benefit from ECIP capital and are executing strategic acquisitions and share buybacks. Citizens Bank has $90m+ cash for acquisitions while trading at 5 P/E ratio. |
ECIP Acquisitions Buybacks Deposits Lending |
ValueThe fund focuses on buying companies at excessive discounts to fair value, often at 50% or less on the dollar. Many holdings trade at 5-10 P/E ratios with strong free cash flow yields of 15-25%. |
Discount P/E Undervalued Free Cash Flow Fair Value | |
BuybacksMultiple portfolio companies are aggressively buying back shares at undervalued prices. Medical Facilities has bought back 35% of shares since 2022. Management teams are using excess cash to repurchase stock rather than make acquisitions. |
Share Repurchase Capital Allocation Undervalued Management Cash | |
Small CapsThe fund invests exclusively in micro cap and small cap companies with market caps ranging from $28m to $535m. These companies are underfollowed and ignored by institutional investors, creating opportunities for active research. |
Micro Cap Underfollowed Illiquid Research Opportunity | |
| 2023 Q4 |
InsuranceThe fund's primary holding La Centrale de Prévoyance is a Swiss insurance broker working in social security and healthcare insurance. The company maintains partnerships with major insurance companies including Groupe Mutuel, Generali, Allianz, and Axa. |
Insurance Brokers Healthcare Switzerland |
SoftwareMSCO is developing proprietary lead generation software using Big Data Analytics and machine learning algorithms to enhance marketing and sales outcomes for portfolio companies. The software is being tested with LCP and will be implemented across other investments. |
Lead Generation Machine Learning Analytics | |
| 2023 Q2 |
AIArtificial intelligence remained the dominant theme supporting global stocks this quarter. AI buildout brought excitement and higher valuations in an already expensive part of the equity market. Technology developments have played an enormous role in markets, fuelling momentum in shares of companies linked to AI. |
Technology Valuations Momentum Growth Innovation |
Emerging marketsEmerging markets stocks posted the strongest returns this quarter. Constructive trade talks, good valuations and the government's shift to supporting private enterprise lifted Chinese stocks, adding to returns in an already strong year. The Fund's core allocation to emerging equities via the Fortress Emerging Markets Fund returned 15%. |
China Trade Valuations Government Policy Returns | |
RatesA much-anticipated cut in interest rates from the U.S. Federal Reserve supported stock and bond markets. In September, the Fed lowered its target rate by 0.25%, a move widely anticipated and positively received by the market. Expectations for rate cuts were tailwinds for markets. |
Federal Reserve Monetary Policy Bond Markets Central Banks |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 28, 2025 | Fund Letters | Whit Huguley | BILD CN | BuildDirect.com Technologies Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | Toronto Stock Exchange | ecommerce, Margins, mispricing, restructuring, turnaround | Login |
| Aug 28, 2025 | Fund Letters | Whit Huguley | IVFH | Innovative Food Holdings, Inc. | Consumer Staples | Food Distributors | Bull | OTCQB | Distribution, efficiency, microcap, Specialty-Foods, turnaround | Login |
| - | Fund Letters | River Oaks Capital | IVFH | Innovative Food Holdings | Consumer Staples Distribution & Retail | Food Distributors | Bull | NASDAQ | asset-light, Broadline Distributors, Drop Shipping, Equity, Food service, niche market, Specialty food distribution, Tuck-in Acquisitions, turnaround | Login |
| TICKER | COMMENTARY |
|---|---|
| ACNT | Ascent Industries is specialty chemical manufacturer. It is the seventh largest position in our fund and has a $150m market cap. Founded in 1945, Ascent Industries began as a special chemical manufacturing business but spent decades diversifying into stainless steel, fiberglass tanks, and pipe & tubing. Years of mismanagement under an operationally inexperienced team left the stock flat for nearly two decades, burdened by rising debt, declining earnings, and bloated corporate costs. Brian Kitchen was brought in to lead the specialty chemicals division, becoming CEO of the entire company by 2024. Brian and his team are transforming the business into what he calls a 'Chemicals-as-a-Service' model – further carving out their niche as a one-stop solution for small and mid-size businesses neglected by the larger players. |
| BILD.TO | BuildDirect is a physical and online professional flooring company with locations throughout the U.S and one in Canada. It is the third largest position in our fund and has a $90m market cap. CEO Shawn Wilson continues executing on his plan to consolidate the professional flooring industry through acquiring/building 75+ professional flooring centers. BuildDirect recently acquired Greyne Custom Wood, an established online flooring marketplace with a strong presence in major retailers' (Home Depot, Lowe's, Menards, etc.) e-commerce channels alongside a professional center in South Carolina, for $450k – approximately 1.25x EBITDA on $6m in revenue and ~$320k in EBITDA. |
| DR.TO | Around three years ago, activist investors stepped in at Medical Facilities, as the prior management's acquisition strategy wasn't working. Jason Redman was appointed CEO with a mandate to divest non-core assets and then the four core surgical hospitals – two of which are best-in-class facilities whose value was buried within a broader hospital conglomerate. Jason and his team have now divested of all their non-core assets and sold two of their four surgical hospitals – with the sale of the final two most likely to happen in the near term. |
| FTLF | Since taking over as CEO in 2018, Dayton has been deliberate in executing multiple of the strategies listed above at various stages of his long-term plan to maximize shareholder value, growing the market cap from ~$5m to now ~$150m. He began by slashing 60% of costs – including public company costs – and running FitLife like a private company with all his time allocated towards fixing and growing the business. He then grew the company out of underfollowed territory by acquiring multiple complementary nutrition brands purchased at distressed multiples of 3–5x earnings and cutting their bloated costs alongside layering in synergies at each step. |
| HAYPP | Haypp is the largest ecommerce platform for Nicotine Pouches. The company faced some regulatory setbacks in 2024, but those issues were largely resolved during 2025. They continued to execute strongly. In September they also reintroduced Zyn on their websites, which they can now source at a lower cost than they did historically. This sets them up for an acceleration of growth at high margins in 2026. |
| TRUX | CEO Tom Stumb and his team have kept public company costs to well below $500k per year – they have been extremely cost discipline since they went public more than 20 years ago. They are listed on the lowest cost tier of the OTC Markets and don't allocate their time towards quarterly calls, investor conferences, or roadshows. Instead focusing all their attention on operating and growing their wonderful business. Tom and his team have been growing free cash flow at 15%+ per year – positioning us to make above average returns just from the yearly cash distributions from the company. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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