Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q1 2026 investor letter. A copy of the letter can be downloaded here. In Q1 2026, the Riverwater Sustainable Value Strategy underperformed the Russell 2500 Value Index. The underperformance was driven entirely by stock selection, while sector allocation contributed positively. The quarter demonstrated a strong small-cap market with an 11.1% return until February, but later the strategy lagged by over 5%, following geopolitical events. Despite this, relative performance improved, indicating strong downside protection. Looking ahead, the firm anticipates a shift back to fundamentals expected to favor high-quality small-cap stocks over lower-quality peers and large-cap equities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Riverwater Sustainable Value Strategy highlighted Plexus Corp. (NASDAQ:PLXS) as a notable contributor. Headquartered in Neenah, Wisconsin, Plexus Corp. (NASDAQ:PLXS) is a leading electronic manufacturing services provider. On April 20, 2026, Plexus Corp. (NASDAQ:PLXS) closed at $237.93 per share. One-month return of Plexus Corp. (NASDAQ:PLXS) was 11.11%, and its shares gained 91.71% over the past 52 weeks. Plexus Corp. (NASDAQ:PLXS) has a market capitalization of $6.37 billion.
Riverwater Sustainable Value Strategy stated the following regarding Plexus Corp. (NASDAQ:PLXS) in its Q1 2026 investor letter:
“Plexus Corp. (NASDAQ:PLXS) was the top contributor in the first quarter. The company reported a very solid fiscal Q2, with strength coming in all segments. PLXS has experienced significant momentum in its Industrial segment, with continued robust semiconductor capital equipment orders and new wins with a robotics customer. Health care also performed well, with new orders in surgical and monitoring devices. PLXS continues to be an exceptional operator, leveraging AI for process improvement, driving returns on invested capital to near record levels.”
Plexus Corp. (NASDAQ:PLXS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 20 hedge fund portfolios held Plexus Corp. (NASDAQ:PLXS) at the end of the fourth quarter, up from 18 in the previous quarter. While we acknowledge the risk and potential of Plexus Corp. (NASDAQ:PLXS) 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 Plexus Corp. (NASDAQ:PLXS) 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 Q1 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
