Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q2 2026 investor letter. A copy of the letter is available to download here. In Q2 2026, the Micro Opportunities strategy underperformed the Russell Microcap Index, despite a positive absolute result. The benchmark performed well during a speculative period for micro caps. Over the past twelve months, the strategy has lagged behind the index. Industrials was the best-performing sector while Information Technology lagged. An accelerating artificial intelligence buildout and a persistent geopolitical supply shock drove the market in the quarter. While the micro-cap rally exhibited speculative traits with significant returns in areas avoided by design. The Fund’s focus remains on owning profitable, well-managed small businesses at reasonable prices rather than pursuing fleeting market trends. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Riverwater Micro Opportunities Strategy highlighted CRA International, Inc. (NASDAQ:CRAI). CRA International, Inc. (NASDAQ:CRAI) is a consulting company that provides economic, financial, and management consulting services. On July 24, 2026, CRA International, Inc. (NASDAQ:CRAI) closed at $169.77 per share, reflecting a market capitalization of $1.09 billion. CRA International, Inc. (NASDAQ:CRAI) posted a one-month return of 17.87%, while its shares lost 4.09% over the past 52 weeks.
Riverwater Micro Opportunities Strategy stated the following regarding CRA International, Inc. (NASDAQ:CRAI) in its Q2 2026 investor update:
“Late in the quarter, we added to two existing positions. We increased CRA International, Inc. (NASDAQ:CRAI), the litigation and economic consulting firm, where results should improve as the company laps a first-quarter compensation reset and where we believe the stock has been unfairly lumped in with consulting names that will not benefit from artificial intelligence.”
CRA International, Inc. (NASDAQ:CRAI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 25 hedge fund portfolios held CRA International, Inc. (NASDAQ:CRAI) at the end of the first quarter, up from 23 in the previous quarter. While we acknowledge the risk and potential of CRA International, Inc. (NASDAQ:CRAI) 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 CRA International, Inc. (NASDAQ:CRAI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CRA International, Inc. (NASDAQ:CRAI) and shared the list of small cap stocks with the highest upside potential. In addition, please check out our hedge fund investor letters Q2 2026 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.
