Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy reported solid results for the quarter but did not keep pace with the sharp rally, thus lagging the benchmark. The market’s preference for lower-quality companies persisted in the quarter and contributed significantly to the benchmark’s outperformance. On the other hand, the strategy remains focused on higher-quality companies with enduring fundamentals, consistent revenue, and a transparent path to profitability. The firm strongly believes that the strategy is well-positioned in the challenging quarter. 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 Small Cap Strategy highlighted stocks such as Worthington Enterprises, Inc. (NYSE:WOR). Worthington Enterprises, Inc. (NYSE:WOR) is an industrial manufacturing company that operates through Consumer Products and Building Products segments. The one-month return for Worthington Enterprises, Inc. (NYSE:WOR) was 9.63%, and its shares gained 51.15% over the last 52 weeks. On December 15, 2025, Worthington Enterprises, Inc. (NYSE:WOR) stock closed at $57.74 per share, with a market capitalization of $2.875 billion.
Riverwater Partners Small Cap Strategy stated the following regarding Worthington Enterprises, Inc. (NYSE:WOR) in its third quarter 2025 investor letter:
Worthington Enterprises, Inc. (NYSE:WOR) is a diversified industrial manufacturer operating through two key segments. The Consumer Products segment produces propane cylinders, handheld torches, tools, outdoor living equipment, and celebration products under well-known brands such as Coleman®, Bernzomatic®, Garden Weasel®, and Halo®, selling primarily through mass retailers. The Building Products segment manufactures pressurized containment solutions like LPG cylinders, water tanks, and HVAC components, while also benefitting from highly profitable joint ventures in ceiling systems and light-gauge framing. Following its 2023 spin-off from Worthington Industries, WOR has repositioned itself as a more focused, asset-light growth platform with a three-pillar strategy of transformation, innovation, and strategic M&A.
