Riverwater Small Cap Strategy Sold Magnite (MGNI) Due to Tariff Uncertainty

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy underperformed the Russell 2000 in Q2 2025, primarily due to the portfolio’s more defensive holdings 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 Small Cap Strategy highlighted stocks such as Magnite, Inc. (NASDAQ:MGNI). Headquartered in New York, New York, Magnite, Inc. (NASDAQ:MGNI) is an independent omni-channel sell-side advertising platform. The one-month return of Magnite, Inc. (NASDAQ:MGNI) was 12.49%, and its shares gained 92.19% of their value over the last 52 weeks.  On September 05, 2025, Magnite, Inc. (NASDAQ:MGNI) stock closed at $24.85 per share, with a market capitalization of $3.539 billion.

Riverwater Small Cap Strategy stated the following regarding Magnite, Inc. (NASDAQ:MGNI) in its second quarter 2025 investor letter:

“Magnite, Inc. (NASDAQ:MGNI), was the only sale in the quarter. MGNI operates an independent omni-channel sell-side advertising platform in the United States and internationally. Post Liberation Day we saw a large pull back in advertising due to tariff uncertainty that would also hurt MGNI’s business. We decided to sell as we had no visibility into when advertising would come back.”

Magnite Inc. (MGNI) Jumps 14.31% on Higher Price Target, Buy Reco

Magnite, Inc. (NASDAQ:MGNI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Magnite, Inc. (NASDAQ:MGNI) at the end of the second quarter, which was 28 in the previous quarter. Magnite, Inc.’s (NASDAQ:MGNI) total revenue for Q2 rose 6% year-over-year to $173 million. While we acknowledge the risk and potential Magnite, Inc. (NASDAQ:MGNI) 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 Magnite, Inc. (NASDAQ:MGNI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Magnite, Inc. (NASDAQ:MGNI) and shared Prosper Stars & Stripes’ views on the company. 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.