| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The Riverwater Micro Opportunities Strategy underperformed the Russell Microcap Index in Q2 2026 as the benchmark advanced sharply in one of the most speculative risk-on quarters microcap has seen in years. The quarter was defined by an accelerating AI buildout and a persistent geopolitical supply shock in the Strait of Hormuz. The strongest returns came from categories the manager avoids by design: pre-revenue biotechnology, crypto-adjacent names, and unproven AI narratives. The manager's quality discipline kept the portfolio well behind the index, though they posted a solidly positive absolute result. Industrials was the best-performing sector, with the portfolio carrying roughly a quarter of assets in the sector well above benchmark weight. Technology was the largest relative drag due to structural underweight exposure. The manager added Lifeway Foods, the dominant U.S. kefir producer benefitting from health and wellness trends, and Strattec Security, where a new management team is driving margin expansion. Looking forward, the manager anticipates a rotation into higher-quality businesses as speculative AI trades unwind, is less bearish on the consumer than three months ago, and intends to increase healthcare positioning. The stance is cautiously optimistic, emphasizing patience and discipline in owning superior businesses at attractive valuations.
The manager invests in profitable, durable, well-managed microcap businesses at sensible prices, maintaining quality discipline even when speculation is rewarded, with conviction that this process will deliver long-term results when speculative leadership inevitably narrows.
The manager characterizes their stance as cautiously optimistic. They anticipate a rotation into higher-quality, smaller businesses that lagged the broader market as speculative AI-related trades unwind, a dynamic they believe plays directly to the strength of their core investment philosophy. The manager is less bearish on the consumer than three months ago due to stronger tax refunds and consumer resilience. They see potential value emerging in energy as the group stabilizes, though prefer greater clarity before committing additional capital. The manager intends to increase positioning in healthcare to benefit from a broader sector rotation and is considering adding to technology exposure after the recent pullback. The tone is patient and disciplined, emphasizing their commitment to owning profitable, durable, well-managed small businesses at sensible prices rather than chasing speculative leadership.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 15 2026 | 2026 Q2 | ALLT, CELH, CRAI, FSBC, HTLD, IRMD, LMAT, LWAY, LXU, MAMA, MEC, PWP, RDVT, STRT, TILE, UROY, ZVIA | Consumer Staples, energy, healthcare, industrials, Microcap, Quality, Speculation, value |
MEC RDVT LXU LWAY |
Riverwater's microcap strategy lagged the Russell Microcap Index in Q2 2026 as speculation dominated, with pre-revenue biotech, crypto, and unproven AI narratives leading. Quality discipline kept the portfolio behind despite solid absolute returns. Industrials outperformed while technology underweight hurt. New positions include Lifeway Foods and Strattec Security. The manager anticipates rotation into higher-quality businesses as speculative trades unwind and is positioning for healthcare sector strength. |
| Apr 15 2026 | 2026 Q1 | AVD, CCB, LXU, NPKI, PLOW, RDVT, RNGR, TALK | AI, energy, Fertilizers, Geopolitical, healthcare, materials, Microcap, private credit |
NPKI PLOW RDVT CCB RNGR TALK LXU |
Riverwater Partners repositioned its microcap strategy in Q1 2026 toward energy and materials amid Middle East tensions while capitalizing on AI disruption selling. The fund added energy services and nitrogen chemical exposure through new positions in Ranger Energy and LSB Industries, expecting structural supply advantages for North American firms despite near-term macro uncertainty. |
| Jan 14 2026 | 2025 Q4 | AVD, AVID, CLMB, FSBC, IRMD, LEU, LMNR, MAMA, MEC, NCMI, NGS, PLOW, PWP, UROY | AI, Biotechnology, fundamentals, Microcap, nuclear, Quality, rates, value |
IRMD AVD LMNR NGS PLOW |
Riverwater's micro-cap strategy underperformed in 2025 by avoiding speculative AI and biotech themes while maintaining quality discipline. Top holding IRadimed gained 80% on FDA approval. Manager expects 2026 rotation back to fundamentals favoring quality micro-caps, supported by Fed rate cuts and improving real economy earnings. Portfolio positioned for cyclical outperformance at fundamental inflection points. |
| Oct 16 2025 | 2025 Q3 | ABEO, ALLT, ARIS, AVBC, AVD, BDC, CCB, DCTH, IRMD, MAMA, MEC, NPKI, TILE, UROY, UTL | AI, Banking, healthcare, Microcap, nuclear, Quality, uranium, value |
UROY DCTH AVBC ALLT AVD |
Micro-cap strategy delivered solid absolute returns but lagged benchmark's rally in lower-quality stocks. Strong performance from uranium theme and healthcare holdings offset consumer discretionary weakness. Manager maintains quality focus with new positions in undervalued community bank, cybersecurity, and agricultural chemicals. Optimistic on fundamentals-driven recovery ahead despite current momentum favoring speculation over quality. |
| Jun 30 2025 | 2025 Q2 | ABEO, AEHR, ALRS, AMRK, ARIS, DCBO, LAKE, LEU, LMNR, NCMI, NPKI, PLOW, RDVT, SSSS, TILE, UROY, UTL | Defensive, energy, Gene Therapy, materials, Microcap, nuclear, Quality, Utilities |
LEU ARIS ABEO TILE LEU ABEO TILE |
Micro-cap strategy underperformed due to defensive positioning during low-quality rally. Nuclear theme drove outperformance with LEU returning 181%. Added gene therapy play ABEO and sustainable flooring company TILE. Maintaining defensive stance amid tariff uncertainty while seeking mispriced quality companies. Materials sector led by uranium holdings outperformed significantly. |
| Mar 31 2025 | 2025 Q1 | ALRS, ARIS, CCB, CLMB, IMXI, LMNR, NPKI, RDVT, TGLS, UROY, UTL | Defensive, energy, healthcare, Microcap, Quality, technology, Utilities |
ARIS LMNR CLMB RDVT |
Riverwater's microcap strategy outperformed in Q1 through quality stock selection, led by water infrastructure play Aris Water Solutions. Added cybersecurity distributor Climb Global and data analytics firm Red Violet while trimming winners. Maintaining defensive stance amid tariff uncertainty but viewing market dislocations as opportunities to acquire quality businesses at attractive valuations. |
| Dec 31 2024 | 2024 Q4 | AEHR, AMRK, CCB, LEU, MEC, SSSS, TTAN, UROY | AI, Banking, industrials, Microcaps, nuclear, Onshoring, technology, uranium |
CCB AMRK UROY SSSS |
Riverwater's Micro Opportunities Strategy targets undervalued microcaps positioned for domestic economic tailwinds. Key themes include nuclear power, AI infrastructure, reshoring trends, and banking recovery from Fed rate cuts. Despite Q4 benchmark underperformance, the manager sees opportunity in domestic-focused companies benefiting from tariff policies while avoiding geopolitical risks facing large-cap multinationals. |
| Jun 30 2024 | 2024 Q2 | AAPL, ARIS, ATOM, BWB, GOOGL, III, LLAP, LMNR, LMT, META, MSFT, NVDA, PERI, QNST, STM, VECO | Agriculture, AI, Banking, Microcap, semiconductors, small cap, value |
VECO LMNR |
Riverwater's microcap strategy rebounded in Q2 despite continued small-cap underperformance versus large-caps concentrated in AI stocks. Manager sees extreme relative underperformance creating attractive opportunities historically preceding outperformance cycles. Portfolio added banking, marketing, and water recycling names while exiting delayed semiconductor IP and struggling satellite plays. Featured agricultural holding Limoneira trades at significant discount to asset value. |
| Apr 15 2024 | 2024 Q1 | ASLE, CRAI, HBIO, HDSN, LEU, LMAT, LMNR, MEC, NYCB, PGY, PWP, TGLS, VECO | AI, Banking, healthcare, industrials, Microcap, SPACs, uranium, value |
PGY ASLE CRAI |
Riverwater's microcap strategy trails benchmarks due to market preference for unprofitable stocks, but maintains conviction in undervalued quality positions. Banking sector offers opportunities post-CRE selloff, while uranium benefits from domestic production initiatives. Healthcare and industrials remain core themes. Improving macro backdrop and historical patterns suggest microcaps poised to outperform large caps. |
| Jan 11 2024 | 2023 Q4 | - | AI, Bonds, Esg, Federal Reserve, rates | - | Riverwater expects positive 2024 markets driven by Federal Reserve accommodation and potential rate cuts. Despite 2023 challenges, late-year rally demonstrated market resilience. Declining oil prices, falling mortgage rates, and strong employment create favorable conditions. Fed's shift from restrictive to accommodative policy suggests soft landing probability over recession risk. |
| Oct 11 2023 | 2023 Q3 | - | Bonds, Economic Policy, Federal Reserve, inflation, interest rates, Market Commentary | - | Interest rates dominated Q3 markets, with sharp increases hurting both stocks and bonds as 10-year yields approach 5%. While inflation persists in some sectors, it's nearing the Fed's 2% target. The manager believes rate hikes are nearly finished and expects bond yields to reverse if soft landing odds continue declining, benefiting diversified portfolios. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIThe AI trade broadened during the quarter, with technology stocks surging to roughly 20% of the Russell Microcap Index. The manager notes the speculative character of AI-related trades and expects a rotation into higher-quality businesses as these trades unwind. The portfolio maintains structural underweight exposure to technology at mid-single digits versus benchmark weight approaching 20%. |
Technology Speculation Rotation Underweight |
EnergyThe Strait of Hormuz disruption kept crude and refined product markets dislocated for much of the quarter before peace negotiations in mid-June sent oil prices sharply lower. The manager believes the recent sell-off has overshot to the downside relative to underlying fundamentals in the Middle East and sees potential value emerging as the group stabilizes, though prefers greater clarity before committing additional capital. |
Oil Geopolitics Middle East Valuation | |
NitrogenLSB Industries declined 28% as peace negotiations progressed and curtailed nitrogen supply began returning to the market. The manager views the move to the downside as an overreaction, believes LSB will benefit from the disruption, and thinks the market is missing the significant free cash flow the company will generate over the near and mid-term. |
Fertilizers Supply Free Cash Flow | |
UraniumUranium Royalty sold off with other material names despite no fundamental news that should have caused the decline. The company diversified their royalty base to include commodities outside of uranium, which should make the business model more stable over the long term. Uranium spot prices have been stable. |
Royalties Diversification Commodities | |
FoodLifeway Foods was added as a new position in April. The company is the dominant U.S. producer of kefir and is benefitting from durable consumer trends including increased awareness of gut health, high protein diets, and a shift to better-for-you food. The company reported record quarterly sales of $63 million, up 37% driven by volume, with gross margin expanding meaningfully. Management's 2027 EBITDA guidance highlights significant margin expansion opportunity. |
Consumer Staples Health Margin Expansion Growth | |
IndustrialsIndustrials was the best-performing sector and the portfolio's only meaningfully positive relative contributor. The portfolio carries roughly a quarter of assets in industrials, well above the benchmark's mid-teens weight. Holdings rose sharply, led by Mayville Engineering, Heartland Express, and Douglas Dynamics. Mayville Engineering gained 109% as investors rediscovered domestic manufacturing capacity as a scarce asset and management moved into data center rack fabrication. |
Manufacturing Data Centers Overweight Outperformance | |
QualityThe manager emphasizes their quality discipline kept them well behind the index during a speculative risk-on quarter. The strongest returns in the benchmark came from categories they avoid by design: pre-revenue biotechnology, crypto-adjacent names, and unproven artificial intelligence narratives. The manager states their job is to own profitable, durable, well-managed small businesses at sensible prices, not to chase whatever the market happens to reward in a given quarter. |
Discipline Profitability Valuation Process | |
HealthcareHealthcare represents an area of incremental portfolio activity. Biotech has been a persistent outperformer within the sector, while the manager's concentration in medical technology names has lagged. The manager is increasingly seeing signs of a broader rotation into the sector as a whole and intends to position the portfolio to benefit from that shift over the coming quarter. |
Medtech Biotech Rotation Positioning | |
| 2026 Q1 |
EnergyThe fund is expanding exposure to Energy sector due to structural shifts from Middle East geopolitical tensions. Rising energy prices from Iran conflict and supply disruptions create competitive advantages for North American firms. The manager initiated positions in Ranger Energy Services and expects sustained pricing strength through the energy cycle. |
Oil Natural Gas Geopolitical Supply Pricing |
FertilizersLSB Industries represents a concentrated play on nitrogen markets benefiting from global supply disruptions. Strait of Hormuz blockade and Russian export suspensions removed 27% of global ammonia supply, creating the tightest nitrogen inventory in years. The company benefits from domestic natural gas feedstock advantages and oligopolistic market structure. |
Nitrogen Ammonia Supply Chain Agriculture Commodities | |
AIAI disruption concerns led to indiscriminate selling across software and data analytics companies, creating attractive entry points. The manager views recent underperformance in holdings like Red Violet as sentiment-driven rather than fundamental. AI-driven data center expansion also benefits infrastructure plays like NPK International. |
Software Data Analytics Disruption Sentiment Infrastructure | |
Private CreditStress has emerged in select areas of private credit markets driven by tightening liquidity rather than credit quality deterioration. The manager views this as contained and comparable to 2023 regional banking episode. These conditions are fostering more disciplined risk pricing across capital markets. |
Liquidity Credit Banking Risk Pricing | |
| 2025 Q4 |
AIManager discusses AI monetization progress at Alphabet with strong third-quarter results and improving sentiment around digital advertising and AI. Google Cloud grew over 30% year-over-year supported by rapid adoption of AI training and inference services. Gemini platform enhancements were well received including lower-cost inference options. |
Cloud Monetization Infrastructure Training Inference |
GLP1Eli Lilly was a top performer driven by its GLP-1 franchises Mounjaro and Zepbound where sales more than doubled year-over-year. Manager believes demand for GLP-1 treatments continues to outpace supply with additional indications on the horizon. Views Lilly as positioned to deliver sustained revenue and cash-flow growth over the coming decade. |
Diabetes Obesity Pharmaceuticals Growth Pipeline | |
StreamingNetflix was the portfolio's largest detractor following investor concerns around near-term subscriber growth and rising content spending. Manager notes slower net subscriber additions guidance and margin pressure from elevated investment in live sports and international content. Despite headwinds, views Netflix as dominant global streaming platform with durable competitive advantages. |
Content Subscribers Sports Competition Monetization | |
CloudCoreWeave shares declined despite revenue growing more than 40% year-over-year due to elongated GPU delivery lead times and slower enterprise AI workload ramp. Manager believes CoreWeave's purpose-built infrastructure is uniquely positioned within high-performance cloud compute market with differentiated architecture and strategic partnerships. |
GPU Infrastructure Enterprise Computing Partnerships | |
| 2025 Q3 |
NuclearNuclear power gained momentum as a clean energy solution for AI data centers, with uranium prices strengthening into the high $70s low $80s per pound range. The manager maintains long-standing conviction that nuclear energy will play a critical role in meeting exponential growth in power demands from artificial intelligence infrastructure. |
Uranium Nuclear AI Data Centers Clean Energy |
AIArtificial intelligence emerged as a transformative growth potential theme driving market attention. The manager specifically highlighted nuclear power's role in meeting exponential growth in power demands from AI infrastructure, particularly data centers requiring clean, reliable baseload generation. |
AI Data Centers Infrastructure Power Growth | |
OnshoringThe manager continues to see opportunities in companies exposed to reshoring trends and domestic manufacturing. Despite near-term headwinds for some holdings like Mayville Engineering Company, confidence remains in long-term positioning to benefit from ongoing reshoring of manufacturing to the United States. |
Reshoring Manufacturing Domestic Industrial Supply Chain | |
Community BanksMaintained overweight position in community banks that stand to benefit from eventual steepening of the yield curve and improving net interest margins. The manager sees attractive risk-reward dynamics within the banking sector, especially for well-capitalized institutions with strong deposit franchises and disciplined lending practices. |
Banks Yield Curve Interest Margins Deposits Lending | |
CybersecurityInitiated position in Allot, which offers network security as a service and can disrupt the security market for individuals and small businesses via communications service providers. The company's security-as-a-service business is growing above 50% and represents 20% of revenue. |
Security SaaS Network Cybersecurity Growth | |
| 2025 Q2 |
NuclearNuclear power is positioned as critical infrastructure for AI data centers and decarbonization goals. Big tech firms are securing long-term nuclear power deals and investing in small modular reactors. Policy environment supports quadrupling nuclear electricity by 2050 through reformed licensing and federal backing. |
Nuclear SMR HALEU Uranium Energy |
Gene TherapyFirst-mover opportunity in curative gene therapies for rare dermatological diseases. Single-treatment model with high efficacy and durable results differentiates from chronic re-application alternatives. Vertically integrated manufacturing enhances supply chain control and scalability. |
Gene Therapy Rare Diseases Biotechnology Manufacturing Pricing | |
| 2025 Q1 |
WaterAris Water Solutions provides infrastructure and water recycling solutions to energy producers in Texas. The company benefits from growing regulatory focus on water reuse and rising demand for sustainable infrastructure, positioning it well for secular ESG trends. |
Water recycling Infrastructure ESG Sustainability Energy |
CybersecurityClimb Global Solutions specializes in cloud-based and data center software distribution, with focus on cybersecurity and networking solutions. Red Violet provides advanced data analytics and identity intelligence solutions with applications in fraud prevention and compliance. |
Cloud Data analytics Identity Fraud prevention Software distribution | |
AgricultureLimoneira Company is converting lemon acreage to avocados which are 5 times more profitable per acre, while monetizing land and water rights and optimizing existing lemon acreage to improve cash flow stability. |
Avocados Land rights Water rights Cash flow Optimization | |
| 2024 Q4 |
NuclearThe Materials sector was a standout performer driven by investments in nuclear power and uranium, which continues to present significant long-term opportunities. The strategy initiated a position in Uranium Royalty Corp. (UROY) to align with this long-standing focus on the nuclear power and uranium theme. |
Nuclear Uranium Power Energy Materials |
AIThe strategy is investing in picks and shovels for AI, with Aehr Test Systems positioned to benefit from increased investment in AI chips. SuRo Capital Corp. provides exposure to high-growth AI themes through holdings in companies such as OpenAI and CoreWeave. |
AI Semiconductors Technology Growth Infrastructure | |
OnshoringThe strategy focuses on the reshoring of industrial production due to tariff risks from the new administration. Companies with primarily domestic operations like Mayville Engineering Company are well-positioned to capitalize on reshoring trends and avoid potential tariff impacts. |
Onshoring Tariffs Manufacturing Domestic Trade | |
Regional BanksThe strategy remains overweight in banks, particularly benefiting from the Federal Reserve's rate-cutting cycle. The lowering of short-term rates and rise in 10-year Treasury yield has provided benefits through lower funding costs and steepened yield curves, enabling banks to expand net interest margins. |
Banks Interest Rates Margins Regional | |
| 2024 Q2 |
AIAI has contributed to large-cap outperformance but also presents opportunities for microcaps as picks and shovels plays. Veeco Instruments exemplifies this opportunity as a key supplier to companies producing AI chips and servers. |
Semiconductors Equipment Chips Servers Technology |
SemiconductorsSemiconductor equipment companies like Veeco are benefiting from AI demand and diversifying into laser annealing technology for leading-edge chip manufacturing. The sector offers opportunities in companies making equipment for memory, storage, and advanced processors. |
Equipment Memory Processing Manufacturing Foundries | |
Small CapsSmall-cap stocks continued to lag large-caps this quarter, with much of S&P 500 gains concentrated in AI-driven stocks. The manager believes extreme relative underperformance often precedes sustained outperformance for the underperforming asset class. |
Underperformance Cyclicality Valuation Opportunity Relative | |
AgricultureLimoneira represents an agricultural investment with significant land and water rights valued between $450-550 million. The company is pivoting toward avocado production, a more profitable segment with growing US demand. |
Land Water Rights Avocados Lemons Sustainability | |
| 2024 Q1 |
Commercial Real EstateManager views CRE challenges as largely manageable, confined to major cities with lower-grade office spaces or multifamily units. The NYCB situation is assessed as unique to New York's CRE market and rent-controlled multifamily units. This presents an opportunity to potentially add banks that have been unjustly discounted in the market turmoil. |
Banking NYCB Multifamily Office Recovery |
UraniumLEU is positioned favorably for securing funding from approximately $2 billion in new Congressional expenditures for expanding low enriched uranium production capabilities to reduce dependency on Russian uranium supplies. The company awaits a decision on HALEU production program funding and stands to benefit from the strategic advantage in the evolving uranium market landscape. |
HALEU Nuclear Energy Security Russia Defense | |
SPACsManager is scouring opportunities among neglected stocks, including failed IPOs and defunct SPACs with potential residual value. Initially identified Pagaya Technologies through screening for undervalued SPACs, though this position was ultimately sold due to strategic concerns. |
Failed IPOs Undervalued Screening Opportunity | |
AIManager is keenly observing opportunities within information technology sectors, particularly those linked to advancements in artificial intelligence. Pagaya Technologies was noted for utilizing advanced data science and AI to enhance loan origination for financial institutions. |
Data Science Technology Innovation Fintech | |
| 2023 Q4 |
AIMuch of the S&P 500's growth in 2023 was fueled by prospects and advancements in artificial intelligence, particularly driving performance of the Magnificent 7 stocks. |
Artificial Intelligence Technology Growth |
RatesFederal Reserve's strategic messaging hinting at potential rate cuts in 2024 fostered market confidence. The Fed's accommodative stance and expectations of rate cuts drove bond yields from 5% to 3.84% and rescued the bond market from another negative year. |
Federal Reserve Interest Rates Monetary Policy | |
| 2023 Q3 |
RatesInterest rates are the most crucial factor in valuing stocks and bonds. During Q3, rates rose sharply, negatively impacting returns. The 10-year yield is approaching 5% and 30-year mortgages near 8%. Higher rates make bonds more attractive for savers but challenging for borrowers. |
Interest Rates Federal Reserve Bond Yields Treasury Mortgage |
InflationWhile inflation remains persistent in certain sectors, it is getting closer to the Fed's 2% target. With a potentially weakened economy and lower future inflation levels, the manager believes the Fed is done or nearly done raising rates. |
Inflation Federal Reserve Economic Policy Price Stability |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | MEC | Mayville Engineering Company | Metal Fabrication | Industrial Machinery & Supplies & Components | Bull | New York Stock Exchange | agriculture, Data center infrastructure, Domestic Manufacturing, Industrials, manufacturing, Metal Fabrication, Military, Trucking | Login |
| Jul 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | RDVT | Red Violet | Software - Application | Application Software | Bull | NASDAQ | AI integration, Data Analytics, Founder-Driven, Fraud prevention, Identity Intelligence, market share gains, Profitable Software, SaaS | Login |
| Jul 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | LXU | LSB Industries | Chemicals | Fertilizers & Agricultural Chemicals | Bull | New York Stock Exchange | agricultural chemicals, Cyclical, Fertilizers, Free Cash Flow, materials, Middle East, Nitrogen Products, Supply Disruption | Login |
| Jul 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | LWAY | Lifeway Foods | Packaged Foods | Packaged Foods & Meats | Bull | NASDAQ | capacity expansion, consumer staples, Distribution growth, gut health, health and wellness, Kefir, margin expansion, Packaged Foods, Probiotics | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | NPKI | NPK International Inc. | Oil & Gas Equipment & Services | Construction & Engineering | Bull | NASDAQ | AI, Composite Materials, data centers, energy, Grid expansion, infrastructure, pipeline development, Rental Fleet | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | PLOW | Douglas Dynamics, Inc. | Auto Parts | Machinery | Bull | New York Stock Exchange | Commercial Equipment, Municipal, North America, Seasonal, Snow Equipment, Weather Cyclical | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | RDVT | Red Violet, Inc. | Software - Application | Application Software | Bull | NASDAQ | AI disruption, Data Analytics, Government, Identity Intelligence, law enforcement, proprietary data, Software | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | CCB | Coastal Financial Corporation | Banks - Regional | Regional Banks | Neutral | NASDAQ | AI disruption, Banking As A Service, Credit Conditions, fee income, Fintech, Partner Deposits, regional bank | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | RNGR | Ranger Energy Services | Oil & Gas Equipment & Services | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | Energy Services, geopolitical, Oil & Gas Services, Permian Basin, Well Maintenance, Well Service Rigs, Workover Activity | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | TALK | Talkspace | Health Information Services | Health Care Technology | Bull | NASDAQ | acquisition target, digital health, Healthcare Technology, Mental health, telemedicine, Unit economics | Login |
| Apr 15, 2026 | Fund Letters | Riverwater Micro Opportunities Strategy | LXU | LSB Industries | Chemicals | Fertilizers & Agricultural Chemicals | Bull | New York Stock Exchange | Ammonia, Blue Ammonia, clean energy, Fertilizer, geopolitical, Mining Explosives, natural gas, Nitrogen Chemicals, Supply Disruption | Login |
| Jan 14, 2026 | Fund Letters | Adam Peck | IRMD | IRadimed Corporation | Health Care | Health Care Equipment | Bull | NASDAQ | FDA, growth, Medtech, Mri, ROIC | Login |
| Jan 14, 2026 | Fund Letters | Adam Peck | AVD | American Vanguard Corporation | Materials | Agricultural Chemicals | Bull | New York Stock Exchange | agriculture, EBITDA, Inventory, Margins, turnaround | Login |
| Jan 14, 2026 | Fund Letters | Adam Peck | LMNR | Limoneira Company | Consumer Staples | Agricultural Products | Bull | NASDAQ | agriculture, Assetvalue, Avocados, Longcycle, Supply | Login |
| Jan 14, 2026 | Fund Letters | Adam Peck | NGS | Natural Gas Services Group, Inc. | Energy | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | Compression, Contracts, Energyservices, Margins, Naturalgas | Login |
| Jan 14, 2026 | Fund Letters | Adam Peck | PLOW | Douglas Dynamics, Inc. | Industrials | Commercial Services & Supplies | Bull | New York Stock Exchange | Cyclicality, Industrials, Margins, Replacement, Weather | Login |
| Oct 16, 2025 | Fund Letters | Adam Peck | UROY | Uranium Royalty Corp. | Materials | Uranium & Nuclear Energy | Bull | NASDAQ | AI, clean energy, Commodities, nuclear energy, royalties, uranium | Login |
| Oct 16, 2025 | Fund Letters | Adam Peck | DCTH | Delcath Systems Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Catalysts, Clinical trials, Medical devices, Oncology | Login |
| Oct 16, 2025 | Fund Letters | Adam Peck | AVBC | Avidia Bancorp Inc. | Financials | Banks | Bull | - | Banks, Fintech, growth, IPO, Payments, Value | Login |
| Oct 16, 2025 | Fund Letters | Adam Peck | ALLT | Allot Ltd. | Information Technology | Cybersecurity & Networking | Bull | NASDAQ | cybersecurity, growth, SaaS, Telecom, turnaround | Login |
| Oct 16, 2025 | Fund Letters | Adam Peck | AVD | American Vanguard Corp. | Materials | Agricultural Chemicals | Bull | NYSE | — | Login |
| Jun 30, 2025 | Fund Letters | Adam Peck | LEU | Centrus Energy Corp. | Energy | Uranium | Bull | New York Stock Exchange | HALEU, Nuclear, Reactors, uranium, utilities | Login |
| Jun 30, 2025 | Fund Letters | Adam Peck | ARIS | Aris Water Solutions, Inc. | Industrials | Environmental & Facilities Services | Bull | New York Stock Exchange | infrastructure, midstream, Permian, Recycling, Water | Login |
| Jun 30, 2025 | Fund Letters | Adam Peck | ABEO | Abeona Therapeutics Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, dermatology, Gene, Raredisease, Therapy | Login |
| Jun 30, 2025 | Fund Letters | Adam Peck | TILE | Interface, Inc. | Industrials | Building Products | Bull | NASDAQ | Building, Commercial, ESG, Flooring, Sustainability | Login |
| Jun 30, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | LEU | Centrus Energy Corp. | Energy | Oil, Gas & Consumable Fuels | Bull | NYSE American | domestic production, Energy independence, government contracts, HALEU, LEU, national security, Nuclear Fuel, Nuclear Renaissance, uranium | Login |
| Jun 30, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | ABEO | Abeona Therapeutics | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, dermatology, FDA-approved, gene therapy, High Pricing, manufacturing, operating leverage, rare disease, Single Treatment | Login |
| Jun 30, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | TILE | Interface Inc | Materials | Building Products | Bull | NASDAQ | Building Products, Carbon Negative, Commercial Flooring, ESG Leadership, Modular Carpet, recurring revenue, Replacement Cycle, Sustainability | Login |
| Mar 31, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | ARIS | Aris Water Solutions | Utilities | Water Utilities | Bull | NASDAQ | Dividend Growth, Energy Services, ESG, Sustainable Infrastructure, Texas, utilities, Water infrastructure, Water Recycling | Login |
| Mar 31, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | LMNR | Limoneira Company | Consumer Staples | Agricultural Products | Bull | NASDAQ | agriculture, asset value, Avocados, Cash Flow Optimization, Land Rights, Real Estate, Value, Water Rights | Login |
| Mar 31, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | CLMB | Climb Global Solutions | Information Technology | Technology Distributors | Bull | NASDAQ | Acquisitions, Cloud software, cybersecurity, data center, Europe, growth, North America, technology distribution | Login |
| Mar 31, 2025 | Fund Letters | Riverwater Micro Opportunities Strategy | RDVT | Red Violet Inc. | Information Technology | Application Software | Bull | NASDAQ | cloud-native, cybersecurity, Data Analytics, Fraud prevention, Identity Intelligence, machine learning, Real Estate, SaaS | Login |
| Dec 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | CCB | Coastal Financial Corporation | Financials | Regional Banks | Bull | NASDAQ | BaaS, Banking As A Service, Embedded finance, Fintech Partnerships, growth, regional banks, SMB Banking, Washington | Login |
| Dec 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | AMRK | A-Mark Precious Metals | Financials | Diversified Financial Services | Bull | NASDAQ | Bullion Dealer, Commodities, contrarian, Gold Trading, Margin recovery, Precious Metals, Trading Spreads | Login |
| Dec 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | UROY | Uranium Royalty Corp. | Energy | Oil, Gas & Consumable Fuels | Bull | NASDAQ | clean energy, Commodities, Mining Royalties, North America, Nuclear Power, royalties, Streaming, uranium | Login |
| Dec 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | SSSS | SuRo Capital Corp. | Financials | Asset Management & Custody Banks | Bull | NASDAQ | AI, growth, IPO pipeline, NAV discount, private equity, Public Markets, technology, Venture Capital | Login |
| Jun 30, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | VECO | Veeco Instruments Inc | Information Technology | Semiconductor Equipment | Bull | NASDAQ | AI infrastructure, Cyclical, Laser Annealing, Leading-edge Semiconductors, Memory, semiconductor equipment, Technology Transition | Login |
| Jun 30, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | LMNR | Limoneira | Consumer Staples | Agricultural Products | Bull | NASDAQ | Agricultural Products, Asset Play, Avocado, Land Rights, Lemon, real estate development, strategic review, Sustainability, Value, Water Rights | Login |
| Mar 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | PGY | Pagaya Technologies Ltd | Information Technology | Application Software | Bear | NASDAQ | AI, Asset-backed securities, Credit Technology, Fintech, lending platform, machine learning, SPAC | Login |
| Mar 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | ASLE | AerSale Corporation | Industrials | Aerospace & Defense | Bear | NASDAQ | Aerospace, aftermarket services, Aircraft Parts, Aviation, Cargo Conversion, MRO services | Login |
| Mar 31, 2024 | Fund Letters | Riverwater Micro Opportunities Strategy | CRAI | CRA International Inc | Industrials | Research & Consulting Services | Bull | NASDAQ | antitrust, Consulting, Economic Consulting, M&A Advisory, professional services, Regulatory, Utilization Rate | Login |
| TICKER | COMMENTARY |
|---|---|
| MEC | Mayville Engineering, the Wisconsin-based metal fabrication and manufacturing solutions provider, was the portfolio's largest contributor as shares gained approximately 109% during the quarter. The company's trucking, agriculture, and military end markets began to inflect at the same time as investors rediscovered domestic manufacturing capacity as a scarce asset and management moved into data center rack fabrication. With the stock more than doubling, we trimmed the position in stages during the quarter, consistent with our sizing discipline in names that have run sharply. |
| RDVT | Red Violet, a data analytics and identity intelligence provider, gained approximately 84%. The company's proprietary identity graph continues to take share in fraud prevention and investigative workflows, and it is one of the rare profitable, founder-driven software businesses available at the micro-cap end of the market. It remains a top-five holding. Red Violet continues to onboard customers at record levels which is a good leading indicator of future sales growth. Management is also integrating AI in product development. In contrast to most other software companies, the market sees AI as a tailwind rather than a headwind for them. |
| LXU | LSB Industries, the nitrogen products producer, declined approximately 28% and was the portfolio's largest detractor. We originally owned LSB for its leverage to the disrupted global nitrogen supply, a thesis that worked well while the Middle East conflict kept capacity offline. When peace negotiations progressed in mid-June, curtailed supply began returning to the market, and the shares sold off. We think the move to the downside is an overreaction and LXU will benefit from the disruption. We also think the market is missing the significant free cash flow they will generate over the near and mid-term. |
| UROY | Uranium Royalty sold off with the other material names. There was no fundamental news that should have caused the decline. They diversified their royalty base to include commodities outside of uranium, which should make the business model more stable over the long term. Other uranium stocks have also done poorly even though uranium spot prices have been stable. |
| LWAY | We added Lifeway Foods (LWAY) in April, the dominant U.S. producer of kefir. Lifeway reported record quarterly sales of $63 million, up 37% and driven by volume rather than price, with gross margin expanding meaningfully on favorable milk costs, and a major plant expansion remains on track for completion by year end. Lifeway Foods is the largest producer and marketer of kefir in the United States. Kefir is a tart, tangy cultured milk rich in probiotics, protein, calcium, and vitamin D, with roots in Eastern Europe dating back generations. Lifeway was the first company to introduce kefir to U.S. consumers on a commercial scale and dominates the market. The kefir category today is benefitting from durable consumer trends including increased awareness of gut health, high protein diets, and a widespread shift to better-for-you food. The company distributes through more than 25,000 retail locations across 48 states, with strong relationships with many of the top mass retailers in the country. The primary overhang on the stock, a multi-year governance dispute and multiple bids from Danone, were recently resolved. Lifeway is currently undergoing an approximately $50 million expansion of its Waukesha, WI manufacturing facility which will roughly double the plant's capacity. Management's 2027 EBITDA guidance of $47–$50 million highlights a significant margin expansion opportunity as the Waukesha facility ramps up and sustained sales growth drives operating leverage. Lifeway has mid- to high-teens sales growth and an improving free cash flow trajectory, reaching breakeven in 2026 and inflecting to positive the following year. |
| STRT | We also initiated Strattec Security (STRT) in April. Strattec makes vehicle access and security hardware, and a new management team is driving margin expansion and customer diversification from a depressed base. During the quarter the chief executive and chief financial officers each purchased meaningful amounts of stock in the open market, the kind of cluster insider buying we view as a strong signal at an undemanding valuation. |
| ZVIA | We owned Zevia (ZVIA) briefly during the quarter, and the episode is worth describing because it illustrates our sell discipline. We purchased the position in early May as fundamentals inflected, with the company moving from roughly $20 million of annual losses toward positive EBITDA under a chief executive whose leadership was central to our thesis. When she resigned unexpectedly in mid-June, we stayed true to our thesis, which stated plainly that we would sell if she left. We honored that commitment and exited the position at a modest gain. |
| CRAI | Late in the quarter, we added to two existing positions. We increased CRA International (CRAI), the litigation and economic consulting firm, where results should improve as the company laps a first-quarter compensation reset and where we believe the stock has been unfairly lumped in with consulting names that will not benefit from artificial intelligence. |
| ALLT | We also increased Allot (ALLT), the network intelligence and security software provider, following a substantial buyback announcement, an addition that also modestly raised our technology exposure, which this quarter demonstrated was too thin. |
| IRMD | We trimmed iRadimed (IRMD) in early May: the position had grown beyond 5% of the portfolio, near-term earnings comparisons are demanding, and the valuation was extended, though the fundamental story remains intact as the company's new IV pump configurations carry list prices more than double the prior generation. |
| MAMA | We trimmed Mama's Creations (MAMA) in May for similar reasons: after a strong run the stock carried a premium multiple for a food company facing tougher comparisons, even as distribution wins at Walmart and Target continue to expand its footprint. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
