Two structurally different paths to reducing concentration risk while protecting after-tax wealth For investors with concentrated equity portfolios, the desire to diversify often runs headlong into a frustrating reality: embedded capital gains. The larger the unrealized appreciation, the more painful any rebalancing becomes. Moving toward a more strategic allocation isn’t just an investment decision—it’s a…
Measuring Positive Impact in Responsible Investing Riverwater Partners’ Responsible Investing process creates value through its curation of small-cap equity portfolios of companies that have demonstrated superior returns on their responsibly deployed physical, human, and financial capital. Our Due Diligence process seeks to understand both: how a given company’s operations impact people and the planet –…
Why Quality Underperformed in 2025 (And Why We Think History Suggests a Reversal) It was a tough year for active managers who invest in quality companies. Not just for us at Riverwater, but across the board. According to Furey Research Partners, growth, core, and value managers all underperformed in 2025. Among core managers, only 16%…
Sustainability Disclosure in Small Caps: Another Dimension Where the Work Matters In late 2024, we published our first comprehensive analysis of sustainability reporting across the Russell 2000, finding that roughly half of small-cap companies disclosed Environmental, Social and Governance data—a striking gap compared to the near-universal reporting among S&P 500 constituents. We’ve now updated that research,…
The Four-Year Harvest Avocado trees take three to four years to bear first fruit and four to five years to reach full production. You can’t rush biology. A farmer who plants an orchard today is making a bet on conditions years into the future—conditions that are impossible to predict with certainty. The work happens anyway,…
Why We Diversify At a recent portfolio review, a client asked a question we hear in different forms all the time: “If the S&P 500 keeps dominating, why should I bother diversifying?” It’s a fair question. After over fifteen years in which U.S. mega-cap stocks drove most of the market’s returns, diversification can feel unnecessary—even…
Shareholder Engagement Strategies: Case Studies in Active Stewardship Active Stewardship – Engagement that Creates Value for Mindful Investors As contrarian investors, we’ve learned that the most meaningful conversations often happen away from the quarterly earnings spotlight. While markets focus on short-term metrics, we engage with management teams on the fundamental questions that drive long-term value…
Stewardship in Action: Bridging the Gap Between Faith and Investing At Riverwater Partners, we understand that faith-based investors are balancing two critical principles of stewardship. There is the financial stewardship required to preserve and grow assets to serve your needs, and there is the social and environmental stewardship required to ensure those returns aren’t earned…
Riverwater Partners Achieves Green Master Status: Leading the Way in Sustainable Business Practices We’re thrilled to announce that Riverwater Partners has been certified as a Green Master by the Sustainable Business Council’s Green Masters Program® – achieving the highest possible recognition in this prestigious sustainability certification framework. “This achievement represents more than just an award;…
Bottom of the Lineup, Top of the Charts Like our hometown team, the Milwaukee Brewers, small caps have spent the better part of fifteen years out of favor—grinding out singles and doubles while mega-caps launched moonshots. This season, both are reminding us that cycles turn, and that discipline can ultimately trump pure scale. Source: Furey…
Beyond the Basics: The Unmatched Power of Triple-Tax Exemption The HSA stands alone in the Internal Revenue Code. It is the only account that offers a true triple-tax advantage: Tax-Deductible Contributions: Contributions reduce your current-year adjusted gross income (AGI). Tax-Free Growth: All investment growth—dividends, interest, and capital gains—compounds entirely free from tax. Tax-Free Withdrawals: Distributions…
Navigating Politics, Policy & Portfolios (October 15, 2025). As we close another quarter, we wanted to share our perspective on the markets, the economy, and most importantly, how we’re positioning portfolios to thrive in the months ahead. Politics vs. Policy: What Actually Matters for Long-Term Investors The recent government shutdown reminds us that Washington doesn’t…
Applying Our Three-Pillar Investment Framework to an Emerging Gene Therapy Leader (October 15, 2025). By Nathan Fredrick and Devaj Mehta. At Riverwater Partners our investment process centers on a disciplined three-pillar approach: our approach: exceptional management teams, superior business, and attractive valuation. While Abeona Therapeutics (ABEO) might initially appear to challenge this framework as a…
Navigating Climate Risk: How We Use Scenario Analysis for Responsible Investing As Director of Responsible Investing, I’m proud of the unique approach we’ve crafted for integrating responsible investing into small cap equities. Today, I am pleased to present our climate change scenario analysis framework. We use this forward-looking tool to identify potential risks and uncover…
Riverwater Partners Earns Elite PSN Top Guns Recognition for Sustainable Value Strategy in Q2 2025 Milwaukee (May 19, 2025). Riverwater Partners’ Sustainable Value Strategy achieved outstanding recognition with multiple awards on Zephyr’s prestigious PSN Top Guns List for Q2 2025. The strategy ranked among the top performers across several key investment categories, reinforcing Riverwater’s leadership…
US Consumers and Valuation Gaps: Can the US Consumer Keep Carrying the Market? (July 15, 2025). The second quarter reminded us why staying grounded matters in investing. While markets celebrated new highs—with the S&P 500 breaking through 6,200—the foundations supporting this rally deserve closer examination. The quarter’s volatility, from April’s sharp selloff on tariff fears…
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…
How Trustees Can Fulfill Their Duty of Care While Protecting Themselves Being named a trustee is an honor—but it also places you in a complex role, especially if you are not experienced in this area. As a trustee, you are responsible for stewarding someone’s financial legacy while balancing family dynamics, legal obligations, and investment decisions.…
Riverwater’s Approach to Integrating Catholic Values Faith-based universities, foundations, and individuals seek to align their investments with their values while earning a market rate of return. This pursuit of performance with purpose aligns well with Riverwater Partners’ mission: “To make the world a better place by growing wealth through responsible investing.” Catholic institutions often follow…
At Riverwater Partners, we believe that smart investments can drive meaningful change—not just in the world, but in the lives of our clients. To bring that philosophy to life, we sat down with Brian Gigl, Director of Wealth Management, to hear about his journey, his approach to financial advising, and his perspective on guiding families…
Riverwater Partners Earns Elite PSN Top Guns Recognition for Sustainable Value Strategy in Q1 2025 Milwaukee (May 19, 2025). Riverwater Partners’ Sustainable Value Strategy achieved outstanding recognition with multiple awards on Zephyr’s prestigious PSN Top Guns List for Q1 2025. The strategy ranked among the top performers across several key investment categories, reinforcing Riverwater’s leadership…
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…
When a friend or family member names you as trustee, it feels like an honor—a profound sign of trust and respect. But along with that honor comes something they rarely mention upfront: the keys to somebody’s financial legacy, a 100-page legal document written in dense legalese, anxious beneficiaries with competing needs, and the constant shadow…
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…
Faith and Finance: The Proven Success of Catholic Mandate Investing The question that many faith-based investors ask is straightforward yet profound: “Can I achieve competitive returns while remaining faithful to my Catholic values?” For years, conventional wisdom suggested a trade-off between values-aligned investing and financial performance. However, mounting evidence now challenges this assumption, demonstrating that…
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…
The Art of the Tariff (April 4, 2025). As we close the books on the first quarter of 2025, markets find themselves adjusting to a wave of policy-driven uncertainty—most notably, a broad and aggressive shift in U.S. tariff and trade policy. While economic data through March remained relatively stable, the early-April announcement of sweeping tariffs…
Tax-Efficient Investment Strategies for the 2025 Landscape In today’s complex financial environment, investing wisely isn’t just about selecting the right assets—it’s also about understanding how taxation affects your returns. As we navigate 2025, several key tax-efficient considerations and strategies can help investors maximize their after-tax returns while staying compliant with current regulations. How Tax Efficiency…
We’re proud to announce that Riverwater Partners rank third among emerging firms globally in the Nasdaq eVestment Q4 2024 Brand Awareness Rankings. This places us among the top asset management firms with under $2.5 billion in Assets Under Management (AUM). Understanding the Nasdaq eVestment Rankings Brand awareness in investment management means more than just being…
Milwaukee (Feb 27, 2024). Riverwater Partners’ Sustainable Value Strategy earned 6-stars and a Bull & Bear Master recognition on the celebrated PSN Top Guns List for Q4 2024 performance. The strategy outperformed peers across PSN’s Small-Mid Cap Universe, Mid-Cap Universe, and US Equity Socially Responsible Universe, placing it among the top performers in each category.…
Strategy and Market Impact Analysis In recent months, tariffs have reemerged as a significant economic policy tool with potential implications for investors. At Riverwater, we’ve conducted a thorough analysis of the current landscape and its potential impact on our portfolios. Here’s our perspective on navigating these uncertain waters. Historical Context Matters Tariffs, while historically a…
Aligning Portfolios with Christian and Other Religious Values We understand the challenges of finding investments that align with the religious values of faith-based investors. These challenges become even more profound when organizations seek to create balanced portfolios and find investors that understand and can adhere to religious guidelines. At Riverwater, we’re on a mission to…
Managing a trust is about more than financial oversight—it’s about honoring the grantor’s intent, supporting beneficiaries, and ensuring that the trust document is being followed. For trustees, this responsibility often comes alongside busy careers, family obligations, and other personal commitments. At Riverwater Partners, we understand the challenges trustees face and the importance of providing thoughtful…
Market Insights from 2024 As we close out another dynamic year in the financial markets, one theme that investors may have overlooked is the power of diversification. While U.S. equity markets dominated headlines with exceptionally strong back-to-back annual returns, a wide array of asset classes also contributed positively to portfolios. From the S&P 500 achieving…
We are excited to announce that the Riverwater Small Cap Strategy has been featured in Emerging Manager Monthly. This recognition comes as part of a significant achievement: Maryland State Retirement and Pension System has included us in their $265.5 million domestic small-cap equity portfolio, with Riverwater Partners receiving a $61.5 million allocation. Acuitas Investments manages…
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…
Milwaukee (November 20, 2024). Riverwater Partners’ Sustainable Value Strategy has been awarded 6-stars and a Bull & Bear Master, according to the celebrated PSN Top Guns List of best performing separate accounts, managed accounts, and managed ETF strategies for Q3 2024. Riverwater’s Sustainable Value Strategy was recognized for being among the top performers in PSN’s Small-Mid…
At Riverwater Partners, we’re proud to announce our recent recertification as a Certified B Corp! This achievement marks another chapter in our mission to make the world a better place by growing wealth through sustainable investing. A Shared Vision for a Better World Riverwater became Milwaukee’s first registered B Corporation in 2018, and since then,…
Market Rally Amid Election Season Investors have plenty to cheer for as we enter the final stretches of election season. The S&P 500 has rallied 22.1% over the first nine months of the year, and the Bloomberg US Aggregate Bond Index posted a tremendous third quarter rallying 5.2% to bring the year-to-date return back into…
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 …
Steady Through Uncertainty Market Review Despite a looming election and divided government, market performance has been above average during the first nine months of 2024, with occasional volatility spikes around macroeconomic releases and Federal Reserve uncertainty. The mega-cap ‘Magnificent 7’ (NVIDIA, Apple, Microsoft, Meta, Amazon, Tesla, and Alphabet) primarily led the S&P 500, though their…
As the largest living adult generation, Millennials are not only reshaping industries but are also changing the way we invest. Born between 1981 and 1996, this generation is poised to inherit a significant portion of the $84 trillion wealth transfer from Baby Boomers and Generation X by 2045. Their investment preferences and values-driven approach are…
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…
After the 4th of July, my family begins the dreaded countdown to the first day of school. While it may be a bit early to begin panicking, it’s a good time to think about maximizing the time left between now and that eventual first day of school. My daughter is not entering her first semester…
This quarter, we are honored to present a special reflection letter penned by Greg Wait, as he marks his retirement after a distinguished investing career. His unwavering commitment to our clients and his passion for responsible investment have left a mark on our firm and the broader investment community. As Greg shares some of the…
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…
For Immediate Release. Riverwater Partners Welcomes New Director of Wealth Management (May 1, 2024). Riverwater Partners, a Milwaukee wealth management firm known for its client-centered approach and sustainable investment strategies, is excited to announce the appointment of Brian Gigl as its new Co-Director of Wealth Management and Investment Advisory Services. With a career spanning over…
2023 Sustainability Report: Value Creation Through Sustainable Investing By Cindy Bohlen, CFA A Strong Commitment to Sustainability This Earth Day, Riverwater Partners is proud to share our 2023 Sustainability Report. The theme of this year’s report is Value Creation Through Responsible Investing. At the core of this is our belief that the purpose of every…
Q1 2024 Market and Strategies Update Houston, the Eagle has Landed Nearly 55 years have passed since the historic Apollo 11 mission culminated with Neil Armstrong’s iconic declaration from the lunar surface: “Houston, Tranquility Base here…the Eagle has landed.” This momentous achievement teetered on the brink of failure as the lunar module, Eagle, initially bypassed…
Competitive Strategy “Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value.” – Michael Porter At Riverwater Partners, we believe that incorporating a responsible investment lens enhances traditional value investing. This approach promotes resilience, captures inefficiencies, and improves return potential. As it relates…
By Jan Grimm, CFP®, Senior Wealth Advisor. As tax season approaches, it’s important to remember that you still have time to contribute to your Individual Retirement Account (IRA) for the 2023 tax year. Here are considerations you should be aware of: 1. Contribution Limits For the 2023 tax year, the maximum contribution you can make…
Q4 2023 Market and Strategies Update 2023 Review The past year presented a series of challenges for the financial markets, yet it concluded on a note of resilience and growth. Throughout 2023, we witnessed a complex landscape, marked by a gridlocked Congress in January, a banking crisis in March, concerns over a government shutdown during…
[MILWAUKEE, WI (Nov, 2023)] – Riverwater Partners Attains Maturing Status The Wisconsin Sustainable Business Council has recognized Riverwater Partners (“Riverwater”) at the Maturing level within its Green Masters Program®. Recognizing Wisconsin businesses that are prioritizing sustainability, the Green Masters Program® categorizes participants into four status levels that reflect the degree to which sustainability has been…
Cindy Bohlen Named Sustainable Leadership Champion Finalist for Wisconsin Sustainable Business Awards . Milwaukee (October 5, 2023). Riverwater Partners congratulates our Director of Responsible Investing and Chief Mindfulness Officer Cindy Bohlen for being named a finalist for the 2023 Sustainable Business Award from the Wisconsin Sustainable Business Council (WSBC). Cindy has been named a Sustainable…
Q3 2023 Market and Strategies Update Rates, Rates, Rates Location, location, location – that’s a popular saying in the real estate world, emphasizing the significance of a prime location in determining a property’s maximum value. When it comes to valuing both stocks and bonds, interest rates take center stage as the most crucial factor. The…
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 to to Adam discuss Riverwater’s investing methodology, what he sees as looking good right…
October is Cybersecurity Awareness Month By Laura Peck, COO October is Cybersecurity Awareness Month and in today’s digital age, our financial lives are increasingly intertwined with the online world. While the convenience of online banking, shopping, and investment can’t be denied, it also exposes us to various online threats, including check fraud, wire scams and…
For Immediate Release. Riverwater Partners Appoints Tito Pombra as Chief Compliance Officer Milwaukee (October 3, 2023). Riverwater Partners, a Milwaukee-based investment advisory firm dedicated to responsible investing, announced it has appointed Tito Pombra as its Chief Compliance Officer (CCO). Pombra, who is the founder and president of Adviser Compliance Consulting (ACC), brings extensive experience in…
Cindy Bohlen Named Notable Leader in Sustainability by BizTimes. Milwaukee (September, 13 2023). Riverwater Partners congratulates our Director of Responsible Investing and Chief Mindfulness Officer Cindy Bohlen for being named to the inaugural BizTimes Media Notable Leaders in Sustainability list. Cindy Bohlen is the driving force for sustainability and responsibility at Riverwater Partners, leading our…
For Immediate Release. Quarterly PSN Top Guns List published by Zephyr identifies best-in-class separate accounts, managed accounts, and managed ETF strategies Milwaukee (August 24, 2023). Riverwater Partners has been named to the celebrated PSN Top Guns List of best performing separate accounts, managed accounts, and managed ETF strategies for Q2 2023. Riverwater’s Sustainable Value Strategy…
Q2 2023 Market and Strategies Update Macro Economic Update The second quarter of 2023 saw continued gains for equity markets driven by a pause in interest rate increases and stabilization in the banking industry. Bonds were down slightly in the quarter but still have positive returns year-to-date after their drubbing in 2022. Inflation continued its…
Riverwater 2022 Engagement Efforts By Cindy Bohlen, CFA Engagement is the second pillar of Riverwater’s Three-Pillar Approach to Sustainable Investing. As active investors, we seek cooperative engagement with company leadership and board members about improving their sustainability efforts. It is not a one sized fits all approach. Each engagement is unique and encourages each company…
For Immediate Release. Quarterly PSN Top Guns List published by Zephyr identifies best-in-class separate accounts, managed accounts, and managed ETF strategies Milwaukee (May 23, 2023). Riverwater Partners has been named to the celebrated PSN Top Guns List of best performing separate accounts, managed accounts, and managed ETF strategies for Q1 2023. Riverwater’s Sustainable Value Strategy…
2022 Sustainability Report: Responsible Investing Through Sustainable Investing By Cindy Bohlen, CFA In honor of Earth Day 2023, Riverwater Partners is proud to present our fourth annual Sustainability Report: Responsible Investing through Sustainable Investing. The report highlights our Sustainable Investing framework’s role toward fulfilling our responsibility as a fiduciary. The Sustainability Report emphasizes the importance…
Q1 2023 Market and Strategies Update The first quarter of 2023 saw a reversal of fortunes in the stock and bond markets, with solid gains across the board. While Nasdaq and growth stocks led the way, all major indices, including bonds, saw increases. However, the gains were not without some intra-quarter volatility, driven by textbook…
Q4 2022 Market and Strategies Update There is a saying in the financial markets that the Fed will raise rates until it breaks something. This seems especially relevant today when the entire global economy moves trillions of dollars on the words of one-man, Federal Reserve Chairman Jerome Powell. Coal for Christmas The S&P 500 was…
Our Focus on Water Stewardship By Cindy Bohlen, CFA Milwaukee, Wisconsin is located at the confluence of three rivers and Lake Michigan – part of the largest freshwater system in the world. Milwaukee is also gaining recognition as a global hub for expertise on water challenges and solutions. Our location amidst these important bodies of…
David v. Goliath: Why Small Caps Will Slay Market Giants in 2023 By Adam Peck. After more than a decade of being out of favor, we (and our friends at Furey Research Partners) believe that small-caps are poised to become stock market leaders over the next decade. Timing is everything they say. Three reasons why…
Listen, as Riverwater’s head of Investment Advisory, Greg Wait, shares his perspectives on ESG (responsible investing) and data for positive social and environmental impacts and competitive returns on the podcast Person and Planet by Purevant Living. 3 reasons why you should listen to the full episode: Discover how sustainability is incorporated into investments. Learn how…
Greg Wait featured in Purevant Living’s Person & Planet Fall 2022 magazine. Sustainable investing has become a widely accepted approach to generating competitive investment returns while having a positive global impact on people and planet. According to the US SIF Foundation, $17.1 trillion are in sustainable investment strategies as of the beginning of 2020, a…
Listen as Riverwater’s Chief Mindfulness Officer, Cindy Bohlen, shares her journey into sustainable investing on the podcast Her CEO Journey: The Business Finance Podcast for Mission-Driven Women Entrepreneurs. 3 reasons why you should listen to the full episode: Discover how sustainability drives profitability. Learn how you can collaborate with your stakeholders to improve your sustainability.…
Q3 2022 Market and Riverwater Strategies Update Stock and bond market volatility persisted in the third quarter as the Federal Reserve continued to respond to high inflation by raising the Fed Funds rate. So far in 2022, the Fed has increased rates by 300 basis points, from effectively 0% to 3%. The last time the…
Cindy Bohlen, Riverwater’s resident ESG expert, spoke with students at the business school and in sustainability programs at the University of Wisconsin – Madison. UW-Madison Office of Sustainability. In case you missed it: “People, Planet, Profit: Careers in Corporate Sustainability.” Sept. 23, 2023. On Tuesday, September 13th, the Wisconsin School of Business and the Nelson…
Greg Wait, Riverwater’s resident 401(k) expert, spoke with PLANSPONSOR and had some great suggestions how Defined Contribution or DC plans can respond to increasing demand by participants for ESG funds. PLANSPONSOR. Sept. 22, 2022. PLAN PARTICIPANTS CLAIM to want environmental, social and governance investment options in their defined contribution plan lineups. The Schroders 2022 U.S. Retirement Survey…
Riverwater Partners is a Future 50 company! Riverwater Partners is honored to be named a 2022 Future 50 company by BizTimes Media in partnership with the Metropolitan Milwaukee Association of Commerce. The Future 50 program, now in its 33rd year, recognizes privately-owned companies in the Milwaukee region that have been in business for at least…
Advisor Perspectives. Sept. 5, 2022. By Connor Doak, CFA. Mahatma Gandhi once said, “First they ignore you, then they laugh at you, then they fight you, and then you win.” The environmental, social, and governance (ESG) investment community is deep within the third stage. ESG investing has been subjected to brutal headlines, politically motivated attacks…
The Truth About Trying to Time the Stock Market Many investors convince themselves that they know the stock market is going to move one way or the other. They have a “feeling” – a “hunch” – that drives their investment timing. Here’s the deal: the markets* are full of surprises and “feelings” have little to…
The Evolving Use of Collective Investment Trust Funds in 401(k) Plans By Greg Wait, CEBS. Originally posted in 401(k) Wire (subscription required) Aug. 22, 2022. Advisors and consultants are fielding questions from plan sponsors about potential liability for excessive fees. For example, recently a plan sponsor’s CFO told us their fiduciary insurance carrier included a…
Riverwater Partners has been named a 2022 Best for the World™ B Corp™ in recognition of its exceptional positive impact on its customers. B Lab grants the Best for the World distinction to Certified B Corporations (B Corps) whose verified B Impact Scores in the five impact areas evaluated in the B Impact Assessment —…
Q2 2022 Market and Riverwater Strategies Update The volatility experienced in the first quarter of 2022 continued in the second quarter, with all major markets down for the first half of Q2 2022. The S&P 500 officially entered a bear market (defined by a decline of 20% from its all-time-high) as stocks had their worst first half…
Adam Peck was a featured guest on the 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 to the interview.
SEC Seeks Public Commentary on Climate Rule This spring the SEC voted to advance a set of proposed rules requiring climate disclosure statements for all SEC-registered companies. The rule would mandate public companies to disclose standardized information about their greenhouse gas pollution. Additonally, it would require companies be more transparent with investors about climate-related risks.…
The Journey of Sustainable Investing Our 2021 Sustainability Report celebrates the journey of sustainable investing. The evolution of Sustainable Investing has been and will continue to be a journey. Sustainable Investing originally focused on excluding companies doing harm; today it also incorporates positive screening for environmental, social, and governance (ESG) metrics that reveal companies doing…
Working Part-Time in Retirement In today’s retiree landscape, many folks decide to phase into full retirement by working part-time. It could be reducing the number of hours with your current employer, finding a “job of passion” or even becoming a consultant. Before considering this transition, it’s smart to know about the financial and tax impact…
Q1 2022 Market and Strategies Update This year and Q1 2022 began with hopes that the pandemic would recede and that the global economy could begin the process of getting back to normality. Vladimir Putin had other ideas. Both stock and bond markets were down in the first quarter driven by the war in Europe…
Tax Time Frequently Asked Questions This time of year, we are asked a lot of tax-related questions. As we close out the 2021 tax year, here are answers to our four most “Frequently Asked Questions.” Why am I paying capital gains taxes when I didn't sell anything this year? Where did these gains come…
Tips for Managing Sudden Wealth after Death Death of a loved one is always difficult. Sudden death is devastating and upending. Many of us have either unfortunately experienced it or know someone who has been through it. The overwhelming emotional toll of loss is often magnified by the logistical wake of decisions and paperwork. Grieving…
No more forced arbitration for allegations of sexual harassment or assault In 2019, Riverwater Partners initiated engagements with several of our portfolio companies regarding the use of mandatory arbitration for allegations of sexual harassment or assault. We consider this topic essential to good corporate governance—the “G” in “ESG.” Now, in a remarkable bipartisan effort, both…
by Jan S. Grimm, CFP®, Senior Wealth Advisor The past couple of years has taught us that life’s uncertainties can happen quickly, and often before we have had a chance to plan for them. While the idea of an estate plan may seem daunting, it’s always better to have a plan in place. A…
2021 Year End Markets and Strategies Update Having circled the sun one more time, we are reflecting on the markets and ESG in 2021 and looking ahead to what we can expect in 2022. COVID’s Continued Impact. In 2021, the global pandemic dominated economies for a second year and brought with it seemingly lasting changes…
Five Reasons Your Nonprofit Should Invest Sustainably Leaders of nonprofit organizations spend exhaustive amounts of energy ensuring that the mission of their organization is fulfilled, and that their donor mandates are met. What many have not yet considered is how investing their endowments in socially responsible investments, also known as ESG (Environmental, Social and Governance)…
Riverwater’s CIO Adam Peck was quoted in Barron’s this month. Adam chatted with Barron’s reporter Daren Fonda about Gentherm, a holding in our SMID strategy. To Daren’s great introduction we’d add that Gentherm–a Michigan company that’s reinvented itself for the EV age–is a solid performer in our ESG evaluations. It’s always good to see sustainability reports coming from small caps–not to…
Corning views sustainability as an opportunity, to increase efficiency while practicing good environmental stewardship.
Greg Wait featured in Marketwatch. Sustainable investing is hot, and when Wall Street sees a trend, it wants a piece of the action. How hot? In 2020, US SIF Foundation, which measures this type of investing, said 33% of U.S. assets under professional management use environmental, social and governance criteria when investing. That’s $17 trillion, or one…
Q3 2021 Markets and Strategies Update Q3 2021 U.S. economic growth is estimated to be slower than it was in Q2 2021, driven by a confluence of events – labor shortages, supply chain issues, spikes in COVID cases and rising energy costs. While COVID cases appear to be declining, we are still waiting longer for…
Research team looks ahead as Riverwater Partners’ SMID Value Strategy reaches five-year milestone Chief Investment Officer Adam Peck says industry’s lack of ESG focus in small-cap value is inconsistent with value-investing mindset Milwaukee, October 13, 2021 – Riverwater Partners’ flagship ESG Small & Mid Cap (SMID) Value Strategy marked its five-year anniversary at the end…
For Immediate Release. Milwaukee (Sept 8, 2021). Riverwater Partners, one of the country’s leading ESG investment firms is pleased to announce the addition of Jan Grimm, as a Senior Wealth Advisor on our Wealth Management Team. Jan is a CERTIFIED FINANCIAL PLANNER™ Professional who has been providing clients with her planning expertise for over 20…
As socially responsible or ESG (Environmental, Social, Governance) advisors, Riverwater Partners understands that corporate social responsibility is a journey and not a destination. Individuals, businesses, and government entities all must continually adapt to new normals as the world changes. Climate change is a concept that first emerged, and then only in theory, roughly 50 years…
Marketwatch. August 24, 2021 The Intergovernmental Panel on Climate Change issued a stark warning this month that human-led warming from burning of fossil fuels is causing climate change and removing carbon emissions will cause warming to cease. That makes transitioning to renewable energy like solar power even more urgent. However, reports that China forced Uyghurs to work…
Q2 2021 Market Update Inflation is real. If you have experienced sticker shock this year purchasing food, renting cars, or simply getting your haircut, you are not alone. Used car prices are up over 34% in the last year and rental car rates are now commonly $150 to $400 per day depending on location, compared…
Advisor Perspectives. May 26, 2021. What if a baseball team trades away its all-stars year after year and replaces them with rookies or aging veterans? That’s the problem with using the Russell 2000 as a small-cap benchmark. Better to let your winners run—and benchmark to the Russell 2500 instead. Don’t miss Riverwater co-founder & CIO…
Article featured in Valuewalk. May 24, 2021. For most Americans, 401(k) plan accounts have become the predominant retirement savings vehicle. Currently, more than $6.4 trillion is invested in 401(k) plans across the country, a 73% increase in the past ten years.1 An additional $2.7 trillion is invested in other defined-contribution plans, such as 403(b) plans for educational…
Our 2020 Sustainability Report celebrates the power of resilience. Resilience not only allows people and the planet to respond to crisis, recover and thrive, it allows businesses to do so as well. We witnessed this in 2020 as many businesses that had a clear focus on environmental, social, and governance factors – keys to their resilience –…
It’s tax time! Investors may be thinking of ways to reduce their tax payments. For investors with realized capital gains, investing in Qualified Opportunity Zones (“QOZ”) may be an approach to consider for the deferral or reduction of capital gains tax. Origin & purpose of Qualified Opportunity Zones First, a brief history of the…
Q1 2021 Market Update The first quarter of 2021 saw individual investors participate in the market at levels not seen in over 20 years. Their collective buying helped propel equity markets to new highs. It’s important to remember that markets are auction markets, with fixed supply. Therefore, when there are more buyers than sellers, prices…
Marketwatch. March 24, 2021. By Debbie Carlson 7 ways for ESG investors to profit from sustainable agriculture The original green sector — agriculture — hasn’t been on the radar for environmental, social and governance investors, given industrial agriculture’s heavy dependence on pesticides, fertilizers and genetically modified seeds. But ESG investors are turning their interest to…
March is B Corp Month. At Riverwater, we celebrate our B Corp status every day of every month. Riverwater Partners was founded in 2016 and, as soon as we became eligible in 2018, became a B Corp. We are proud to have been the first registered B Corp in Milwaukee, and the only investment advisor…
WealthManagement.com, March 11, 2021 By Cindy Bohlen Encouraging news arrived late last year about the fast growth of investments managed with attention to environmental, social and governance (ESG) factors. Seventeen trillion was the headline dollar figure in the latest biannual report from trade association US SIF, which tracks the responsible investing industry. Seventeen trillion represents…
In the wake of last month’s inauguration, we have reason to be optimistic that the incoming administration will enact positive environmental, social and governance measures. And we are already seeing movement in this regard. Riverwater was founded with the mission to make the world a better place by growing wealth through sustainable investing. Guided by…
Advisor Perspectives, February 1, 2021 Burton Malkiel, esteemed author of the classic investing book A Random Walk Down Wall Street is one of the more prominent critics of environmental-, sustainable- and governance-based (ESG) investing. He called ESG investing a “self-defeating” strategy in a recent Wall Street Journal column. But Malkiel and other detractors who claim ESG is a fad…
Marketwatch. January 4, 2021 Environmental, social and governance investing resonates with people who want their investments to align with their values, and the boom in this investing style has fund companies launching more ESG investment vehicles. But these funds may not be as green as investors think they are. ESG investing considers both financial return…
An Unimaginable Year in Review and 2021 Outlook An Unimaginable Year As we review 2020 and position for the future, it goes without saying that the past year was exceptional and unpredictable. Who in their right mind could have imagined a global pandemic, racial injustice protests, the worst economic decline in history and a contentious…
In 2011, only 20% of S&P 500 Index companies issued a sustainability report. By 2019, that figure had quadrupled to 90%. One driver of this change is investor demand. As more people seek to invest in alignment with their values, companies have responded by providing more information. Another driver is recognition by company management teams…
Marketwatch. November 13, 2020 Even as the Trump administration actively discourages environmental, social and governance investing in employer-sponsored retirement plans — a rule the Biden administration may overturn — it’s not like investors had a lot of ESG choices to begin with. When Morningstar looked at lineups for defined-contribution plans like 401(k)s or 403(b)s , the research firm…
[This] response to the COVID-19 health crisis is one example of how ESG efforts undertaken by public companies can benefit not only societies in which they operate, but the corporate shareholders as well. — As COVID-19 continues to spread and severely impact the economy of the United States and other countries around the world, Quest…
Riverwater Partners believes that sustainable companies perform better. Our highly integrative process can enable our clients to invest according to their values while also opening up the possibility of not only no performance disadvantage but, as is our goal over the long term, a performance advantage. For many years, the primary approach taken by “responsible”…
Survival of the Fittest The market rally that began in March continues its historic run. In stark contrast with what is happening on Main Street, Wall Street has performed exceptionally well, with the S&P 500 posting its best two consecutive quarters in the last 20 years! That incredible performance has not been uniform across all…
We recently wrote to the U.S. Department of Labor regarding the rights of shareholders and their ability to proxy vote. You can read what was sent below: — Attention: Proxy Voting and Shareholder Rights NPRM Office of Regulations and Interpretations Employee Benefits Security Administration Room N-5655 U.S. Department of Labor 200 Constitution Avenue NW Washington,…
At Riverwater, our work as “active owners” is intended to help bring to bear our clients’ values. In this way, active ownership is a natural extension of our efforts to make investment selections consistent with those values. At times, active ownership can also be a natural extension of our efforts to achieve a strong return…
Re: Financial Factors in Selecting Plan Investments Proposed Regulation (RIN 1210-AB95) Dear Director Canary: Riverwater Partners LLC is an independent, employee-owned, registered investment advisory firm based in Milwaukee, Wisconsin, serving families, nonprofits, and institutions. We invest in superior businesses with exceptional management teams, attractive valuations, and a focus on social responsibility and sustainability. As fiduciaries…
THE “NEW” NEW NORMAL There are many superlatives to choose from to describe last quarter’s rally. This winter saw the quickest pivot to a bear market in history, followed by an equally rapid rebound in the spring. In fact, we just experienced the strongest 100-day rally since 1933.[1] After the market bottomed on March 23rd,…
Some investing styles, such as value investing, have proven themselves useful over the course of many decades. By contrast, investing fads are short-lived. They look promising in a particular market context but fade away as the world changes. Examples of such fads include day trading, house flipping, and, in our view, Bitcoin and liquid alternative…
The Arrival of COVID-19 We hope that you, your family, and loved ones are holding up and doing well in these unprecedented times. There is no need to explain in detail what happened to the markets during the first quarter; we are all too familiar with the declines. That said, it was the worst quarter…
Benefits Magazine. February 2020 Greg Wait of Riverwater authored an article for the February 2020 edition of Benefits Magazine that looks into the limited availability of SRI Investments in 401(k) plans and offers solutions to plan sponsors wanting to respond to the increasing demand for SRI investment from participants. Read more
STRAIGHT A’S & SUSTAINABILITY When you bring straight A’s home from school you don’t have much explaining to do. That was 2019 for financial markets. Most major indices were up more than 20% and bonds rallied in concert with stocks. The decade exited with a bang as the S&P 500 closed with a plus 13%…
WINDSHIELDS, BUMPS IN THE ROAD & THE RIGHT TO WATER We were happy to announce the acquisition of Falcons Rock last month and are thrilled to add Greg Wait and Liz Kiefer to the Riverwater team. Riverwater and Falcons Rock share similar philosophies around responsible investing and we believe the combined entities are both stronger…
Record Highs and a Record Win Equity markets notched another fine quarter to close out the first half of the year with gains across the board. The first six months of the year marks the strongest stock market since 1997. There are many reasons markets are hitting all-time highs: employment is strong, the economy just…
Fossil Fuels: Should ESG Investors Seek Divestment or Engagement? Engage vs. divest? The question of whether fossil fuel divestment or engagement encourages energy companies (e.g. Chevron and Exxon Mobil) to move their business models away from fossil fuels and toward cleaner energy is one that is top of mind to many responsible investors. At Riverwater…
Nice Market Lyft! From a performance standpoint, the first quarter of 2019 was essentially the inverse of the previous quarter; in Q4 2018 it was hard to find a winner whereas this quarter it was hard to find a loser. The market experienced the best first quarter in over 20 years, a sharp 180 from…
Coined in 2005 in a landmark study entitled “Who Cares Wins,” which made the case that embedding environmental, social, and governance factors in capital markets makes good business sense and leads to better outcomes for society, ‘ESG’ is getting a lot of attention. Individuals, particularly young ones, are liking what they hear. Companies are paying…
The Santa Claus Rout The market’s year end was both interesting and historically quite rare. Going back to 1950, December has been historically the best performing month, with an average monthly return of 1.53% compared to a 0.50% return for the other 11. The Santa Claus Rally failed to materialize in 2018 with broad markets…
B the Change™ – inspired by Gandhi’s famous invocation that we must be the change we seek in the world. As a socially responsible investment advisory firm, Riverwater Partners is proud to have officially become the first Milwaukee company and the only investment advisor in Wisconsin (as of September 2018) to achieve B Corp™…
After the school shooting in Parkland, this past February, Bloomberg reported that the Florida Teachers’ Pension Fund was invested in the maker of the same gun used in the massacre at Marjorie Stoneman Douglas High School.[1] The shooting in Parkland and the countless gun-related tragedies in the last few years have divided the nation in…
It Just Keeps Going and Going. The best way to describe the end of the third quarter is to steal the Energizer Bunny’s tagline, “it just keeps going and going…”[1] The end of September marked the longest running bull market since World War II and the longest most investors have seen in their lifetimes. Equity…
Tariffs and World Cup Football The second quarter equity markets were dominated by headlines surrounding the Trump administration’s proposed tariffs. The tariff talk subsequently turned into action with new tariffs enacted by the US, China, Mexico, Canada, the European Union, India and Turkey. The net effect on US GDP is, at worst, estimated to be…
The first quarter could very well turn out to be a memorable inflection point in this 10-year bull market. The broad indices ended their nine-quarter streak of positive returns, volatility returned with markets moving up or down with much greater magnitude, and the bull market leaders Facebook, Apple, Amazon, Netflix and Google are not looking…
