Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q1 2026 investor letter. A copy of the letter can be downloaded here. In Q1 2026, the Riverwater Sustainable Value Strategy underperformed the Russell 2500 Value Index. The underperformance was driven entirely by stock selection, while sector allocation contributed positively. The quarter demonstrated a strong small-cap market with an 11.1% return until February, but later the strategy lagged by over 5%, following geopolitical events. Despite this, relative performance improved, indicating strong downside protection. Looking ahead, the firm anticipates a shift back to fundamentals expected to favor high-quality small-cap stocks over lower-quality peers and large-cap equities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Riverwater Sustainable Value Strategy highlighted Methanex Corporation (NASDAQ:MEOH) as a newly added position. Headquartered in Vancouver, Canada, Methanex Corporation (NASDAQ:MEOH) is a leading producer and distributor of methanol and owns and leases in-region storage and terminal facilities. On April 21, 2026, Methanex Corporation (NASDAQ:MEOH) closed at $58.37 per share. One-month return of Methanex Corporation (NASDAQ:MEOH) was -0.24%, and its shares gained 91.31% over the past 52 weeks. Methanex Corporation (NASDAQ:MEOH) has a market capitalization of $4.51 billion.
Riverwater Sustainable Value Strategy stated the following regarding Methanex Corporation (NASDAQ:MEOH) in its Q1 2026 investor letter:
“Methanex Corporation (NASDAQ:MEOH) is the world’s largest producer and distributor of methanol. We believe the stock is well positioned to benefit from a tightening global supply-demand backdrop, particularly in light of escalating conflict in the Middle East. The company’s global production footprint and integrated logistics network provide a structural advantage in supplying customers during periods of disruption.
Recent geopolitical developments—specifically reduced Iranian supply and broader regional instability—are already contributing to higher methanol pricing. Importantly, this dynamic is occurring against a backdrop of structurally constrained supply and steady demand growth across industrial and energy-related applications, suggesting pricing strength may be more durable than typical cyclical spikes. It trades at 10.7x estimated 2026 earnings.
From a responsible business perspective, we believe that Methanex stands out within the chemicals sector. It has industry-leading safety performance, no major environmental incidents in recent years, and meaningful progress on emissions intensity reduction ahead of stated targets. The company is also actively investing in lower-carbon methanol pathways, including biomethanol and carbon capture initiatives, positioning it to participate in longer-term decarbonization trends such as marine fuel transition.”
Methanex Corporation (NASDAQ:MEOH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 18 hedge fund portfolios held Methanex Corporation (NASDAQ:MEOH) at the end of the fourth quarter, compared to 27 in the previous quarter. While we acknowledge the risk and potential of Methanex Corporation (NASDAQ:MEOH) 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 Methanex Corporation (NASDAQ:MEOH) 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 Q1 2026 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.
