What Makes Mayville Engineering Company (MEC) a Good Long-Term Holding?

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported solid absolute returns in the quarter but lagged the benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. 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 Micro Opportunities Strategy highlighted stocks such as Mayville Engineering Company, Inc. (NYSE:MEC). Mayville Engineering Company, Inc. (NYSE:MEC) is a metal fabrication company that engages in the design, production, prototyping, and tooling, fabrication, aluminum extrusion, coating, and assembling of aftermarket components. The one-month return for Mayville Engineering Company, Inc. (NYSE:MEC) was 21.67%, and its shares gained 12.31% over the last 52 weeks. On December 16, 2025, Mayville Engineering Company, Inc. (NYSE:MEC) stock closed at $18.25 per share, with a market capitalization of $370.81 million.

Riverwater Partners Micro Opportunities Strategy stated the following regarding Mayville Engineering Company, Inc. (NYSE:MEC) in its third quarter 2025 investor letter:

“The Industrials sector delivered mixed results. While we continue to see opportunities in companies exposed to reshoring trends and domestic manufacturing, some holdings faced near-term headwinds. Mayville Engineering Company, Inc. (NYSE:MEC) was among our detractors, as customer demand softened in certain end markets. Despite this near-term weakness, we remain confident in MEC’s long-term positioning to benefit from the ongoing reshoring of manufacturing to the United States.”

Mayville Engineering Company, Inc. (NYSE:MEC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Mayville Engineering Company, Inc. (NYSE:MEC) at the end of the third quarter, which was 11 in the previous quarter. In the third quarter of 2025, Mayville Engineering Company, Inc.’s (NYSE:MEC) total sales increased 6.6% on a year-over-year basis to $144.3 million. While we acknowledge the risk and potential of Mayville Engineering Company, Inc. (NYSE:MEC) 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 Mayville Engineering Company, Inc. (NYSE:MEC) 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 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.