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 Mayville Engineering Company, Inc. (NYSE:MEC). Mayville Engineering Company, Inc. (NYSE:MEC) is a US based industrial company that engages in the production, design, prototyping and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components. On July 23, 2026, Mayville Engineering Company, Inc. (NYSE:MEC) closed at $30.41 per share, reflecting a market capitalization of $775.27 million. Mayville Engineering Company, Inc. (NYSE:MEC) posted a one-month return of -17.81%, while its shares gained 88.88% over the past 52 weeks.
Riverwater Micro Opportunities Strategy stated the following regarding Mayville Engineering Company, Inc. (NYSE:MEC) in its Q2 2026 investor update:
“Mayville Engineering Company, Inc. (NYSE:MEC), the Wisconsin-based metal fabrication and manufacturing solutions provider, was the portfolio’s largest contributor as shares gained approximately 109% during the quarter. The company’s trucking, agriculture, and military end markets began to inflect at the same time as investors rediscovered domestic manufacturing capacity as a scarce asset and management moved into data center rack fabrication. With the stock more than doubling, we trimmed the position in stages during the quarter, consistent with our sizing discipline in names that have run sharply.”
Mayville Engineering Company, Inc. (NYSE:MEC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 14 hedge fund portfolios held Mayville Engineering Company, Inc. (NYSE:MEC) at the end of the first quarter, up from 13 in the previous quarter. In Q1 2026, total sales of Mayville Engineering Company, Inc. (NYSE:MEC) increased 6.8% year over year to $144.8 million. While we acknowledge the risk and potential of Mayville Engineering Company, Inc. (NYSE:MEC) 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 Mayville Engineering Company, Inc. (NYSE:MEC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
