Riverwater Partners, an investment management company, recently published its Q3 2025 investor letter for its Small Cap Strategy. The letter can be downloaded here. While the Small Cap Core Strategy reported solid results for the quarter, it did not keep up with the sharp rally in the market, leading to it lagging behind the benchmark. The market’s continued preference for lower-quality companies played a significant role in the benchmark’s outperformance. However, Riverwater Partners remains committed to investing in higher-quality companies with strong fundamentals, consistent revenue streams, and clear paths to profitability. Despite the challenging quarter, the firm believes that its strategy is well-positioned for success.
One of the highlighted stocks in the investor letter is Worthington Enterprises, Inc. (NYSE:WOR). Worthington Enterprises is an industrial manufacturing company with operations in Consumer Products and Building Products segments. The stock saw a one-month return of 9.63% and has gained 51.15% over the past 52 weeks. As of December 15, 2025, Worthington Enterprises’ stock closed at $57.74 per share, with a market capitalization of $2.875 billion.
Riverwater Partners shared insights on Worthington Enterprises in its investor letter, describing it as a diversified industrial manufacturer with operations in two key segments. The Consumer Products segment produces a variety of products under well-known brands such as Coleman®, Bernzomatic®, Garden Weasel®, and Halo®, selling primarily through mass retailers. The Building Products segment focuses on pressurized containment solutions like LPG cylinders, water tanks, and HVAC components, as well as profitable joint ventures in ceiling systems and light-gauge framing. Since its spin-off from Worthington Industries in 2023, Worthington Enterprises has repositioned itself as a more focused, asset-light growth platform with a three-pillar strategy of transformation, innovation, and strategic M&A.
Riverwater Partners’ Small Cap Strategy remains committed to investing in companies like Worthington Enterprises that demonstrate strong growth potential and resilient business models. By focusing on quality over short-term gains, the firm aims to deliver sustainable returns for its investors.
For more information on Riverwater Partners’ top holdings and investment strategies for 2025, investors can refer to the Q3 2025 investor letter and explore the firm’s approach to navigating the current market landscape.
