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 Centrus Energy Corp. (NYSEAMERICAN:LEU). Headquartered in Bethesda, Maryland, Centrus Energy Corp. (NYSEAMERICAN:LEU) is a nuclear fuel supplying company. The one-month return of Centrus Energy Corp. (NYSEAMERICAN:LEU) was -6.26%, and its shares gained 472.91% of their value over the last 52 weeks. On September 05, 2025, Centrus Energy Corp. (NYSEAMERICAN:LEU) stock closed at $205.39 per share, with a market capitalization of $3.74 billion.
Riverwater Micro Opportunities Strategy stated the following regarding Centrus Energy Corp. (NYSEAMERICAN:LEU) in its second quarter 2025 investor letter:
“Centrus Energy Corp. (NYSEAMERICAN:LEU) was our top contributor for Q2 and a new addition to the portfolio in the quarter. LEU supplies nuclear fuel components for the nuclear power industry. The stock returned roughly 181% in Q2, driven by a strong earnings report, positive news flow on the nuclear industry from the US administration, large investment bank buy initiations with large price targets, and likely some short covering. LEU surged from the $60s—where we initiated our position—to over $200 per share by quarter-end.
While we did not establish a full position initially, we continue to believe there are meaningful catalysts ahead that could drive further upside. Given the rapid price appreciation, we took the opportunity to trim a small portion of the position in the $200s, maintaining a core stake in anticipation of continued momentum.
Centrus Energy Corp. (LEU): Centrus represents a unique investment opportunity at the intersection of national security, nuclear energy independence, and next-generation reactor technology. As the only U.S.-owned and licensed producer of both Low-Enriched Uranium (LEU) and High-Assay Low-Enriched Uranium (HALEU), Centrus is poised to fill a critical supply gap in a market historically dependent on Russian imports. The company’s strategic transformation from a broker of foreign-sourced nuclear fuel to a domestic producer is underpinned by strong government support, demonstrated by multi-billion-dollar DOE contracts worth up to $3.4 billion and a growing backlog of $3.8 billion.
With an unmatched regulatory position and commercial partnerships with major players like TerraPower and Oklo, Centrus stands to benefit from both near-term LEU demand and long-term HALEU-driven growth. However, execution risks around scale-up, funding, and geopolitical volatility remain key factors to monitor as the U.S. nuclear renaissance unfolds.”
Centrus Energy Corp. (NYSEAMERICAN:LEU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Centrus Energy Corp. (NYSEAMERICAN:LEU) at the end of the second quarter, which was 23 in the previous quarter. While we acknowledge the risk and potential Centrus Energy Corp. (NYSEAMERICAN:LEU) 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 Centrus Energy Corp. (NYSEAMERICAN:LEU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Centrus Energy Corp. (NYSEAMERICAN:LEU) and shared Jim Cramer’s bold predictions about quantum computing and nuclear power stocks. 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.
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