Riverwater Sustainable Value Strategy is Holding Limoneira (LMNR). Here’s Why

Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell 2500 Value Index, in the second quarter. The underperformance was primarily driven by stock selection, while the allocation effect had a small positive impact. 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 Sustainable Value Strategy highlighted stocks such as Limoneira Company (NASDAQ:LMNR). Limoneira Company (NASDAQ:LMNR) is an agribusiness and real estate development company. The one-month return of Limoneira Company (NASDAQ:LMNR) was 0.51%, and its shares lost 36.92% of their value over the last 52 weeks. On September 05, 2025, Limoneira Company (NASDAQ:LMNR) stock closed at $15.77 per share, with a market capitalization of $284.948 million.

Riverwater Sustainable Value Strategy stated the following regarding Limoneira Company (NASDAQ:LMNR) in its second quarter 2025 investor letter:

“Our long-term holding, Limoneira Company (NASDAQ:LMNR) continued to sell off after announcing the conclusion of its strategic review without an outright sale of the company. Limoneira represented the strategy’s worst performer for a second quarter in a row. While disappointing for the second consecutive quarter, we remain confident in our investment thesis. We recently published a deep dive report on Limoneira which can be read here.

Our thesis on its undervaluation has only gotten stronger since our reports as the company’s assets continue to trade at roughly half their private market value, and management’s strategy to improve profitability through crop conversion and land monetization remains sound.”

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Limoneira Company (NASDAQ:LMNR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Limoneira Company (NASDAQ:LMNR) at the end of the second quarter, which was 6 in the previous quarter. While we acknowledge the risk and potential Limoneira Company (NASDAQ:LMNR) 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 Limoneira Company (NASDAQ:LMNR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Limoneira Company (NASDAQ:LMNR) and shared Riverwater Partners Small Cap Strategy’s views on the company in the previous quarter. 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.