Modine Manufacturing Company (MOD) Benefited From AI Spending

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy reported solid results for the quarter but did not keep pace with the sharp rally, thus lagging the benchmark. The market’s preference for lower-quality companies persisted in the quarter and contributed significantly to the benchmark’s outperformance. On the other hand, the strategy remains focused on higher-quality companies with enduring fundamentals, consistent revenue, and a transparent path to profitability. The firm strongly believes that the strategy is well-positioned in the challenging quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted stocks such as Modine Manufacturing Company (NYSE:MOD). Modine Manufacturing Company (NYSE:MOD) offers thermal management products and solutions. The one-month return of Modine Manufacturing Company (NYSE:MOD) was 8.96%, and its shares gained 11.44% of their value over the last 52 weeks. On December 15, 2025, Modine Manufacturing Company (NYSE:MOD) stock closed at $142.27 per share, with a market capitalization of $7.49 billion.

Riverwater Partners Small Cap Strategy stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its third quarter 2025 investor letter:

“Modine Manufacturing Company (NYSE:MOD) was our second-best performer. Modine’s thermal management solutions for data centers continued to benefit from exponential growth in AI-related infrastructure spending. The company’s liquid cooling systems are essential for managing heat in high-density computing environments required for AI applications. While valuations have expanded significantly from our initial purchase, we maintain our position given Modine’s strong market position, proven execution, and the long runway for data center infrastructure buildout to support AI workloads.”

Is Modine Manufacturing Company (MOD) the Best GARP Stock to Buy Now?

Modine Manufacturing Company (NYSE:MOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Modine Manufacturing Company (NYSE:MOD) at the end of the third quarter, the same as in the previous quarter. Modine Manufacturing Company’s (NYSE:MOD) sales for the second quarter of fiscal 2026 increased by 12%, primarily due to revenue growth in Climate Solutions. While we acknowledge the risk and potential of Modine Manufacturing Company (NYSE:MOD) 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 Modine Manufacturing Company (NYSE:MOD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Modine Manufacturing Company (NYSE:MOD) and shared the list of data center cooling companies to invest in. Modine Manufacturing Company (NYSE:MOD) contributed to Artisan Small Cap Fund’s performance in Q3 2025. In addition, please check out our hedge fund investor letters Q3 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.