Aris Water Solutions (ARIS) Slid on Company-Specific and Macroeconomic Concerns

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed the benchmark in the second quarter due to the portfolio’s defensive positioning and the market’s preference for low-quality companies. 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, Riverwater Micro Opportunities Strategy highlighted stocks such as Aris Water Solutions, Inc. (NYSE:ARIS). Aris Water Solutions, Inc. (NYSE:ARIS) is an environmental infrastructure and solutions company. The one-month return of Aris Water Solutions, Inc. (NYSE:ARIS) was 1.89%, and its shares gained 58.96% of their value over the last 52 weeks. On September 05, 2025, Aris Water Solutions, Inc. (NYSE:ARIS) stock closed at $23.78 per share, with a market capitalization of $1.407 billion.

Riverwater Micro Opportunities Strategy stated the following regarding Aris Water Solutions, Inc. (NYSE:ARIS) in its second quarter 2025 investor letter:

“Aris Water Solutions, Inc. (NYSE:ARIS) underperformed during the second quarter of 2025 due to a combination of company-specific and macroeconomic headwinds. Although the company beat earnings and revenue estimates in Q1, the stock sold off sharply, falling around 20%, as investors reacted negatively to softer forward guidance and increased operational expenses. Management highlighted lower expected EBITDA for Q2, citing reduced skim oil recovery revenues and deferred maintenance costs. Additionally, ARIS’s exposure to oil price volatility and broader concerns about tariffs and capital markets uncertainty further pressured the stock throughout the quarter. We continue to believe that Aris Water Solutions (ARIS) owns critical infrastructure in the Permian Basin that its major customers rely on. While the stock’s performance last quarter fell short of expectations, we view ARIS as a relatively safer way to maintain energy exposure given its essential role in the region.”

Is Aris Water Solutions, Inc. (ARIS) the Best Performing Utilities Stock So Far in 2025?

Aris Water Solutions, Inc. (NYSE:ARIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Aris Water Solutions, Inc. (NYSE:ARIS) at the end of the second quarter, which was 28 in the previous quarter. While we acknowledge the risk and potential Aris Water Solutions, Inc. (NYSE:ARIS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Aris Water Solutions, Inc. (NYSE:ARIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Aris Water Solutions, Inc. (NYSE:ARIS) and shared Carillon Eagle Small Cap Growth Fund’s views on the company. 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.