ASSET MANAGEMENT | STRATEGIES
Small Cap
Strategy
The Riverwater Small Cap Strategy seeks to provide attractive risk-adjusted returns versus its benchmark, the Russell 2000 Index. The Small Cap Strategy holds 30-45 small-cap companies generally greater than $250 million and less than $5 billion in market capitalization at initial purchase.
Small-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
$250M–<$5B
Market Cap at Purchase
Russell 2000
Benchmark
July 31, 2022
Inception Date
Portfolio & Performance
Strategy Returns
Data current as of September 30, 2026
| 3 Mo | YTD | 1 Yr | 3 Yr | 5 Yr | Since Inception | |
|---|---|---|---|---|---|---|
| Composite (Gross) | -7.92% | 17.09% | 12.50% | 16.22% | — | 15.30% |
| Composite (Net) | -8.15% | 16.22% | 11.39% | 15.07% | — | 14.16% |
| Russell 2000 | -7.23% | 13.71% | 16.20% | 17.72% | — | 11.50% |
Net returns reflect a retail fee of 1%. Past performance is not indicative of future results.
Top 5 Holdings
Palomar Holdings, Inc.
3.9%
InterDigital, Inc.
3.8%
AtriCure, Inc.
3.7%
Digi International Inc.
3.7%
StoneX Group Inc.
3.7%
Total
18.7% of net assets
Portfolio Characteristics
Strategy Statistics
Data current as of September 30, 2026
| Statistic | Small Cap | Russell 2000 |
|---|---|---|
| Price to Earnings | 22.1x | 16.6x |
| Avg. Weighted Market Cap | $3.5B | $3.9B |
| Dividend Yield | 0.8% | 1.3% |
| Return on Equity | 15.0% | 2.0% |
| LT Debt to Capital | 29.0% | 36.3% |
| Number of Holdings | 40 | 1,974 |
Portfolio Allocation
Sector Weightings
Data current as of September 30, 2026
| Sector | Small Cap | Russell 2000 | Active Weight |
|---|---|---|---|
| Consumer Discretionary | 2.66% | 8.98% | -6.32% |
| Consumer Staples | 4.36% | 1.87% | +2.49% |
| Energy | 7.43% | 5.60% | +1.83% |
| Financials | 11.42% | 17.93% | -6.51% |
| Health Care | 16.82% | 20.35% | -3.53% |
| Industrials | 19.10% | 14.26% | +4.84% |
| Information Technology | 21.61% | 15.54% | +6.07% |
| Materials | 5.17% | 4.43% | +0.74% |
| Real Estate | 2.78% | 6.04% | -3.26% |
| Communication Services | 0.00% | 2.01% | -2.01% |
| Utilities | 6.50% | 2.98% | +3.52% |
Risk & Capture
Data current as of September 30, 2026
| Statistic | Small Cap | Russell 2000 |
|---|---|---|
| Beta* | 0.79 | 1.00 |
| Sharpe Ratio* | 0.60 | 0.34 |
| Upside Capture* | 83.79% | 100.00% |
| Downside Capture* | 73.22% | 100.00% |
*Since inception.
Strategy Materials
Insights to keep you informed.
Investment Team
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Small-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).