Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. Both Q4 and the full year 2025 were challenging for the strategy, which struggled to match the benchmark performance in Q4 and FY2025. The underweight exposure in speculative areas of the market led to the underperformance in the second half of the year. Low-quality stocks with poor fundamentals outperformed the market in the year. The strategy’s emphasis on high-quality stocks lagged behind the broader market trends. Heading to 2026, the Strategy focuses on micro-cap companies with broader sales and growth trajectories and believes that the low-quality stock market rallies will be short-lived. In addition, you can check the fund’s top five holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted Limoneira Company (NASDAQ:LMNR) as one of the top performance detractors. Limoneira Company (NASDAQ:LMNR) is an agribusiness operator. On January 16, 2026, Limoneira Company (NASDAQ:LMNR) stock closed at $14.24 per share. One-month return of Limoneira Company (NASDAQ:LMNR) was -3.06%, and its shares lost 38.22% of their value over the last 52 weeks. Limoneira Company (NASDAQ:LMNR) has a market capitalization of $258.016 million.
Riverwater Partners Micro Opportunities Strategy stated the following regarding Limoneira Company (NASDAQ:LMNR) in its fourth quarter 2025 investor letter:
“Limoneira Company (NASDAQ:LMNR) was our top underperformer in 2025 as near-term results failed to reflect the value of long-cycle investments the company has been making for several years, testing investor patience despite a sound strategic foundation. As a 132-year-old California agribusiness and the largest avocado grower in the United States, Limoneira has methodically expanded its avocado acreage, planting roughly 1,500 acres, with approximately 700 acres still progressing toward full production—a process that inherently takes four to five years and cannot be accelerated.
