Riverwater Partners Small Cap Strategy Sold Its Stake in Haemonetics Corporation (HAE) in Q3

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 Haemonetics Corporation (NYSE:HAE). Headquartered in Boston, Massachusetts, Haemonetics Corporation (NYSE:HAE) is a medical technology company. The one-month return of Haemonetics Corporation (NYSE:HAE) was 8.06%, and its shares lost 2.03% of their value over the last 52 weeks. On December 15, 2025, Haemonetics Corporation (NYSE:HAE) stock closed at $80.40 per share, with a market capitalization of $3.873 billion.

Riverwater Partners Small Cap Strategy stated the following regarding Haemonetics Corporation (NYSE:HAE) in its third quarter 2025 investor letter:

“Haemonetics Corporation (NYSE:HAE) detracted as the blood management and hospital supply company experienced challenges related to softer-than-expected demand in certain product lines. While these near-term headwinds pressured the stock, we believe Haemonetics’ essential role in hospital blood management, coupled with new product launches and operational improvements, support a recovery in performance. We exited the position during the quarter to redeploy capital into opportunities with clearer near-term catalysts.”

Is Haemonetics Corporation (HAE) the Best Russell 2000 Stock to Buy According to Wall Street Analysts?

Haemonetics Corporation (NYSE:HAE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Haemonetics Corporation (NYSE:HAE) at the end of the third quarter, which was 29 in the previous quarter. In the second quarter of fiscal 2026, Haemonetics Corporation (NYSE:HAE) reported revenue of $327 million, marking a 5% reported revenue decline. While we acknowledge the risk and potential of Haemonetics Corporation (NYSE:HAE) 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 Haemonetics Corporation (NYSE:HAE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Haemonetics Corporation (NYSE:HAE) and shared The London Company Small Cap Strategy’s views on the company. 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.