Riverwater Partners Small Cap Strategy’s Q1 2026 Investor Letter

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q1 2026 investor letter. In Q1 2026, the Riverwater Small Cap Strategy outperformed the Russell 2000 Index. The quarter rewarded patience and discipline. The first quarter of 2026 saw a significant shift in market leadership and risk perceptions, due to geopolitical tensions in the Middle East and concerns over sustainable growth in the software and AI sectors. Additionally, private credit markets are under stress. In this environment, the firm is concentrating on identifying market dislocations caused by what it perceives as indiscriminate selling, particularly in AI-related areas. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

A copy of Riverwater Partners Small Cap Strategy’s Q1 2026 investor letter can be downloaded here.