Ace River Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, the Fund returned -4.55% compared to the S&P 500’s (SPX) +2.7% return and the Russell 2000’s (RTY) +2.2% return. The Fund has delivered -21.95% for the full year compared to +18.0% and +12.8% returns for the indexes, respectively. The firm attributed the unfavorable outcomes in the year to valuation pressures and unique events. Ace River Capital is a highly concentrated portfolio of small- and micro-cap businesses with resilient fundamentals, a solid asset base, and significant reinvestment potential. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Ace River Capital highlighted stocks such as MarineMax, Inc. (NYSE:HZO). MarineMax, Inc. (NYSE:HZO) is a recreational boat and yacht retailer and superyacht services company. On February 9, 2026, MarineMax, Inc. (NYSE:HZO) stock closed at $29.71 per share. One-month return of MarineMax, Inc. (NYSE:HZO) was 8.83%, and its shares are down 2.84% over the past twelve months. MarineMax, Inc. (NYSE:HZO) has a market capitalization of $654.434 million.
Ace River Capital stated the following regarding MarineMax, Inc. (NYSE:HZO) in its fourth quarter 2025 investor letter:
“MarineMax, Inc. (NYSE:HZO) remains an attractive long-term asset owner with a valuable portfolio of marinas and waterfront real estate. However, absent near-term catalysts and given the cyclical nature of the retail boating business, I elected to sell in-the-money covered calls during the quarter. The shares were called away, and the position was reduced by roughly half.
While I like management’s stated shift toward higher-margin service, storage, and marina revenue, it remains unclear how much of this mix shift reflects structural improvement versus cyclical weakness in retail sales. I continue to monitor the position but will remain selective in deploying additional capital.”
MarineMax, Inc. (NYSE:HZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 19 hedge fund portfolios held MarineMax, Inc. (NYSE:HZO) at the end of the third quarter, up from 17 in the previous quarter. While we acknowledge the risk and potential of MARINEMAX, INC. (NYSE:HZO) 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 MARINEMAX, INC. (NYSE:HZO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MARINEMAX, INC. (NYSE:HZO) and shared Ace River Capital’s views on the company in the previous quarter. 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.
