Here’s What Hit Grand Canyon Education (LOPE) in Q4

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed the Russell 2000 Index during the fourth quarter as well as in FY2025. The stock selection drove the underperformance of the Strategy in the quarter. The strategy’s emphasis on high-quality stocks lagged behind broader market trends. However, the firm expects the environment to be more favorable for high-quality businesses in 2026. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted stocks like Grand Canyon Education, Inc. (NASDAQ:LOPE). Grand Canyon Education, Inc. (NASDAQ:LOPE) is a US-based education service company. On January 22, 2026, Grand Canyon Education, Inc. (NASDAQ:LOPE) stock closed at $179.70 per share. One-month return of Grand Canyon Education, Inc. (NASDAQ:LOPE) was 6.75%, and its shares gained 4.73% of their value over the last 52 weeks. Grand Canyon Education, Inc. (NASDAQ:LOPE) has a market capitalization of $5.047 billion.

Riverwater Partners Small Cap Strategy stated the following regarding Grand Canyon Education, Inc. (NASDAQ:LOPE) in its fourth quarter 2025 investor letter:

“Grand Canyon Education, Inc. (NASDAQ:LOPE) was our largest detractor during the quarter despite reporting solid operating results that were largely in line with expectations. The stock’s weakness was driven less by company-specific fundamentals and more by negative read-throughs from peers and competitors that reported weaker-than-expected enrollment trends, which weighed on sentiment across the for-profit education space. In addition, the potential government shutdown during the quarter created an external overhang, raising concerns around Title IV funding flows and broader regulatory uncertainty, even though LOPE’s direct exposure remains limited. These factors contributed to multiple compression and overshadowed the company’s strong execution and resilient demand profile. Notwithstanding the recent selloff, we continue to view LOPE as a high-quality compounder with a compelling long-term growth runway and consistently high returns on invested capital.”

In another article, we covered Grand Canyon Education, Inc. (NASDAQ:LOPE) and shared the list of best EdTech stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.