ASSET MANAGEMENT | STRATEGIES

Sustainable Value
Strategy

The Riverwater Sustainable Value Strategy seeks to provide attractive risk-adjusted returns versus its benchmark through a concentrated portfolio of small- and mid-sized companies. The strategy combines disciplined fundamental research with Riverwater’s Three Pillar Approach® to identify businesses we believe can create long-term value.

Small- and mid-cap stocks can be more volatile and less liquid than larger companies, and a concentrated portfolio may experience larger swings in value than a more diversified one.

30–45
Typical Holdings
$500M–<$15B
Market Cap at Purchase
Russell 2500 Value
Benchmark
Sept. 30, 2016
Inception Date
Portfolio & Performance
Strategy Returns
Data current as of June 30, 2026
3 Mo YTD 1 Yr 3 Yr 5 Yr Since Inception
Composite (Gross) 14.47% 16.11% 21.39% 18.98% 12.88% 13.08%
Composite (Net) 14.19% 15.53% 20.19% 17.81% 11.76% 11.96%
Russell 2500 Value 18.50% 24.16% 38.54% 19.40% 10.28% 10.91%
Russell 2000 Value 17.19% 23.00% 43.01% 18.73% 8.23% 10.23%
Net returns reflect a retail fee of 1%. Past performance is not indicative of future results.
Top 5 Holdings
AZZ Inc.
4.1%
Adeia Inc.
4.1%
Plexus Corp.
3.9%
Quest Diagnostics Incorporated
3.8%
NetScout Systems, Inc.
3.5%
Total
19.3% of net assets
Portfolio Characteristics
Strategy Statistics
Data current as of June 30, 2026
Statistic Sustainable Value Russell 2500 Value
Price to Earnings 21.7x 17.7x
Avg. Weighted Market Cap $8.0B $9.3B
Dividend Yield 1.0% 1.7%
Return on Equity 16.8% 8.8%
LT Debt to Capital 31.6% 38.5%
Number of Holdings 37 1,869
Portfolio Allocation
Sector Weightings
Data current as of June 30, 2026
Sector Sustainable Value Russell 2500 Value Active Weight
Consumer Discretionary 7.69% 10.78% -3.09%
Consumer Staples 5.55% 4.05% +1.50%
Energy 4.60% 4.02% +0.58%
Financials 13.91% 20.07% -6.16%
Health Care 13.00% 9.15% +3.85%
Industrials 19.06% 19.17% -0.11%
Information Technology 17.66% 10.26% +7.40%
Materials 3.73% 6.07% -2.34%
Real Estate 5.98% 9.83% -3.85%
Communication Services 0.00% 2.57% -2.57%
Utilities 5.75% 3.88% +1.87%
Risk & Capture
Data current as of June 30, 2026
Statistic Sustainable Value Russell 2500 Value
Beta* 0.78 1.00
Sharpe Ratio* 0.62 0.42
Upside Capture* 82.12% 100.00%
Downside Capture* 75.76% 100.00%
*Since inception.
Strategy Materials

Insights to keep you informed.

Factsheet

Sustainable Value Factsheet

PDF  |  Q2 2026 →
Commentary

Quarterly Strategy Commentary

PDF  |  Q2 2026 →
Video

Quarterly Small Cap Strategies Webinar

Video  |  Q2 2026 →
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Let’s build a more sustainable future together.

Small- and mid-cap stocks can be more volatile and less liquid than larger companies, and a concentrated portfolio may experience larger swings in value than a more diversified one.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Advisor), will be profitable or equal any historical performance level(s).