Alluvial Capital Management’s Comment on Seneca Foods Corporation’s (SENEA) Strategic Position

Alluvial Capital Management, an investment advisory firm, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. The fund rose 8.5% in the quarter, bringing the year-to-date returns to 15.6%. As of June 30, the comparable US benchmarks continued to be in negative territory for the year. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Alluvial Capital Management highlighted stocks such as Seneca Foods Corporation (NASDAQ:SENEA). Seneca Foods Corporation (NASDAQ:SENEA) offers packaged fruits and vegetables. The one-month return of Seneca Foods Corporation (NASDAQ:SENEA) was 2.41%, and its shares gained 71.11% of their value over the last 52 weeks. On August 12, 2025, Seneca Foods Corporation (NASDAQ:SENEA) stock closed at $104.82 per share, with a market capitalization of $718.955 million.

Alluvial Capital Management stated the following regarding Seneca Foods Corporation (NASDAQ:SENEA) in its second quarter 2025 investor letter:

“Rounding out this quarter’s winners is Seneca Foods. Seneca Foods Corporation (NASDAQ:SENEA) is emblematic of Alluvial’s efforts to buy boring and little-known, yet highly profitable and undervalued companies. When we first began buying Seneca Foods, the company was coming off a bumper vegetable harvest. This meant a lot of corn and green beans to pack, resulting in high inventory and big borrowings on Seneca’s working capital line of credit. This scared off a lot of investors, but an occasional big pack year is just how it goes for Seneca. When the beans grow, can them. They know that for every bumper crop, there will be a year with more meager yields. Sure enough, this past year saw a modest harvest, and Seneca reduced its borrowings by $259 million, or a whopping $37 per share. Seneca’s balance sheet has normalized, to the benefit of shareholders. Intriguingly, a Seneca competitor, Del Monte, has entered bankruptcy after years of financial struggles. The bankruptcy may present Seneca with the opportunity to pick up some attractive assets at good prices.”

In its Q2 2024, investor letter, Alluvial Capital Management shared its confidence that  Seneca Foods Corporation (NASDAQ:SENEA) is set to generate strong free cash flow in fiscal 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.