Riverwater Partners
Riverwater Sustainable Value
US Mid-cap Value
Dec 2024 → Jun 2026
Our archive holds 6 letters from this strategy, behind 15 investment theses and positions in 27 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
We added Knight Swift last quarter on the strength of two structural catalysts converging with a cyclical trough.
We exited Leggett & Platt following the announcement of its acquisition by Somnigroup International in a stock- for-stock deal.
Consistent with our discipline, we trimmed the position repeatedly throughout the quarter as the position size grew.
We sold Charles River Laboratories to fund our buy of Stevanato Group.
While we initiated a partial position and continue to evaluate its long-term merit, we remain attracted to its strong free cash flow margin and double-digit free cash flow yield.
Also held
Its investment theses
- Stevanato GroupJun 2026Stevanato Group is a vertically integrated drug containment and delivery supplier with switching costs, family alignment, and an attractive valuation.
- NetScout SystemsJun 2026NetScout Systems sells service assurance and cybersecurity software with proprietary technology and attractive valuation.
- Knight-SwiftJun 2026Knight-Swift benefits from broker-liability rules and a cyclical trough that offers depressed through-cycle earnings power.
- Jack Henry & Associates, Inc.Mar 2026Jack Henry & Associates, Inc. is a mission-critical bank technology provider with durable moats and resilient recurring revenue, offering market share upside at a discounted valuation post AI-related selloff.
- Leggett & Platt, Inc.Mar 2026Leggett & Platt, Inc. is a market leader undergoing restructuring with strong free cash flow and an attractive valuation, with potential upside from industry recovery and takeover interest.
- Dick's Sporting Goods, Inc.Mar 2026Dick's Sporting Goods, Inc. stands to gain from consumer and event-driven tailwinds, improving vendor dynamics, and strong merchandising, supporting margins and long-term growth at a reasonable valuation.
- Adeia, Inc.Dec 2025Adeia, Inc. is an IP licensing company with extensive media patents and leading hybrid bonding technology, offering recurring growth, strong cash flow, and attractive valuation upside.
- Synovus Financial Corp.Dec 2025Synovus Financial Corp. is poised to re-rate as its merger-of-equals creates a scaled, well-capitalized regional bank with best-in-class management, solid accretion, and a discounted valuation.
- Everus Construction GroupJun 2025Everus Construction Group (ECG) is a promising investment opportunity, trading at a significant discount due to temporary market conditions, with a strong backlog and favorable growth outlook driven by rising power demand and infrastructure needs.
- Griffon CorporationJun 2025Griffon Corp is a company that specializes in consumer and professional products, as well as home and building products, and is poised for growth through innovative design while trading at a discount to its intrinsic value.