Riverwater Partners
Riverwater small cap
US Small-cap
Dec 2024 → Jun 2026
Our archive holds 6 letters from this strategy, behind 19 investment theses and positions in 31 companies. Every quote below is copied verbatim from the letter it came from.
6 letters in 3 years — follow all of Riverwater Partners for every strategy.
What it bought and sold
In addition, we initiated positions in Stevanato Group (STVN), a leading global provider of drug containment, drug delivery, and diagnostic solutions to the pharmaceutical, biotechnology, and life sciences industries.
We also sold Warby Parker (WRBY) and Canada Goose (GOOS) during the quarter as we redeployed capital into the new positions described above.
We exited Perella Weinberg (PWP) after the boutique advisory firm announced a workforce reduction of roughly 10%, a signal that the M&A drought for smaller independent advisors is likely to persist while activity remains concentrated among the largest banks.
we pared StoneX, Digi International, Modine, Kodiak Gas Services, and Atmus for the sizing and funding reasons described earlier in this letter.
we respected the change in tone and trimmed the position back to a standard weight during the quarter.
Late in the quarter we trimmed a portion of the position after the sharp run, consistent with our practice of harvesting gains in extended semiconductor names.
With shares having roughly doubled from their lows and valuation approaching the high end of historical ranges, we trimmed the position into strength while keeping it among our largest holdings.
We reduced Veeco in stages throughout the quarter, both to fund the PDFS addition and to systematically harvest gains into semiconductor strength; the pending Axcelis combination will also lift the combined company beyond our core market cap range.
We also sold Warby Parker (WRBY) and Canada Goose (GOOS) during the quarter as we redeployed capital into the new positions described above.
we pared StoneX, Digi International, Modine, Kodiak Gas Services, and Atmus for the sizing and funding reasons described earlier in this letter.
the position was funded in part by our exit of natural gas producer CNX Resources (CNX).
We trimmed Adeia (ADEA) repeatedly as the shares rerated, with 2026 estimates now largely reflecting the benefits of its AMD license agreement, and we pared StoneX, Digi International, Modine, Kodiak Gas Services, and Atmus for the sizing and funding reasons described earlier in this letter.
We sold Talkspace (TALK) following shareholder approval of its pending cash acquisition, which effectively capped the remaining upside.
Late in the quarter we initiated Werner Enterprises (WERN), one of the largest truckload carriers.
We also purchased Kaiser Aluminum (KALU) as roughly two and a half million tons of global aluminum capacity remains offline following the Middle East smelter disruptions, a supply shock we believe supports elevated pricing for well-positioned domestic producers through at least 2027.
In May we established a position in Middleby (MIDD), the commercial foodservice and food processing equipment leader, funded by trims of Modine (MOD) and Kodiak Gas Services (KGS).
We also added Lifeway Foods (LWAY), the dominant U.S. producer of kefir, giving the portfolio a true consumer staple.
Given its expansion into one of our largest holdings, we trimmed modestly during the quarter to fund new ideas and maintain sizing discipline.
We initiated a position in NetScout Systems (NTCT) in April.
We exited BioHarvest Sciences (BHST), a small residual position, as we consolidated the portfolio's consumer staples exposure around Lifeway.
We initiated Oceaneering International (OII), a leader in subsea robotics and offshore services, as offshore and subsea capital spending emerges from a seven-year drought and the U.S. rig count climbs; the position was funded in part by our exit of natural gas producer CNX Resources (CNX).
Also held
Its investment theses
- PDF Solutions, Inc.Jun 2026PDF Solutions, Inc. enables semiconductor manufacturing efficiency with recurring software revenue, founder-led management, and attractive growth and valuation.
- NetScout Systems, Inc.Jun 2026NetScout Systems, Inc. provides service assurance and cybersecurity software with deep packet inspection technology and an attractive valuation.
- Stevanato Group S.p.A.Jun 2026Stevanato Group S.p.A. is a leading drug containment and delivery provider, with growth supported by injectables demand and an attractive valuation.
- Werner Enterprises, Inc.Jun 2026Werner Enterprises, Inc. should benefit from industry consolidation, pricing power, and share gains after a liability ruling.
- Lifeway Foods, Inc.Jun 2026Lifeway Foods, Inc. is the dominant U.S. kefir producer, supported by durable gut-health demand, high category share, and strong margins.
- Kaiser Aluminum CorporationJun 2026Kaiser Aluminum Corporation benefits from offline global capacity, supply shock-driven pricing support, and tariffs.
- Cushman & Wakefield plcMar 2026Cushman & Wakefield is a global CRE services firm with a durable, recurring-revenue moat and attractive valuation where AI disintermediation fears appear overstated.
- CNX Resources CorporationDec 2025CNX Resources is a natural gas producer executing well with strong free cash flow and buybacks amid supportive structural demand.
- Kodiak Gas Services, Inc.Dec 2025Kodiak Gas Services provides contract compression with long-term contracts and favorable volume tailwinds from LNG, data centers, and electrification.
- NPK International Inc.Dec 2025NPK International provides composite matting for utilities and energy with advantages over timber, poised for margin and FCF improvement amid infrastructure buildout.