Q2 2025 Market Paradox: Trade Chaos (Check ✔), Market Rally (Check ✔) The quarter brought the paradoxical combination of unprecedented global trade volatility with surprisingly resilient market performance. From the United States’ military engagement with Iran—which counterintuitively drove oil prices below pre-war levels—to the dramatic “TACO trade” saga where Liberation Day tariffs sparked violent market…
Non-Correlated Growth: Finding Companies That March to Their Own Beat In today’s highly correlated markets, finding companies that dance to their own rhythm is becoming increasingly valuable for investors seeking resilience through market cycles. At Riverwater Partners, we’ve built our investment approach around identifying businesses with truly idiosyncratic growth drivers – companies whose success hinges…
Let Your Winners Run: Why SMID-Cap Investing May Be the All-Star Strategy Your Portfolio Needs – Picture a baseball team forced to trade their all-stars just as they hit their stride. Each season, rising stars who drove the team’s success are replaced with rookies or aging veterans – a strategy that would cripple any franchise’s…
Limoneira: Turning Lemons into Guacamole – At Riverwater Partners, we focus on idiosyncratic investment opportunities—overlooked or misunderstood cases where hidden catalysts can unlock asymmetric returns. Our research process favors fundamental analysis, contrarian perspectives, and a disciplined search for companies where hidden catalysts are poised to drive outsized long-term value. An Idiosyncratic Value Opportunity Overlooked by the…
Creating Value Through Responsible Investing At Riverwater Partners, our mission is to make the world a better place by growing wealth through responsible investing. We’re proud to share our 2024 Sustainability Report, titled “Creating Value,” which demonstrates how we generate positive impact for our clients, employees, communities, and planet. Highlights of this year’s report include…
Small-Cap Stocks Q1 2025 Update: Pinching Pennies Amid Tariff and Fiscal Headwinds Small-cap stocks took a step back in this quarter. This followed strong momentum after the November election. Tariff announcements created significant business uncertainty as they flipped between on again off again tariff announcements with two of our largest trading partners, Canada and Mexico. The…
Small-Cap Returns in 2024: Breaking a 46-Year Pattern Small caps logged respectable returns in 2024, but like a broken record, took another turn and lagged behind their large cap brethren. That is neither awe inspiring nor shocking given small caps’ 14-year relative underperformance run. What is truly shocking is that the Russell 2000’s 11.5% return…
Small-cap stocks outperformed most major asset classes this quarter—such a rare event we can hardly remember the last time it happened! Interestingly, the majority of this performance occurred during a brief five-day trading window in early July, when small-caps surged 12%. That spike is significant, because it highlights how far small-caps had fallen behind and …
As a boutique small-cap manager focused on responsible investing, we’ve seen firsthand the challenges small-cap companies face in publishing sustainability data. But, since our inception in 2016, the tide has been shifting. The rapid growth of small-cap companies reporting on sustainability is evident. Yet, a critical gap remains: there’s still a lack of transparency on…
Adam Peck was a featured guest on the Market Call portion of Money Life Podcast with Chuck Jaffe. Money Life is a daily financial talk show focusing on investing, handling, managing, planning for and protecting your money. Click here to listen as Adam discusses Riverwater’s sell methodology, our approach to sustainable investing and how our…
