Riverwater Partners, an investment management firm, released its fourth-quarter 2025 investor letter for the Micro Opportunities Strategy. The document details performance results for both the quarter and the full year.
Both Q4 and the full year 2025 presented challenges for the strategy. It struggled to match benchmark performance during these periods. An underweight position in speculative market areas contributed to underperformance in the second half of the year.
Throughout 2025, low-quality stocks with poor fundamentals outperformed the broader market. The strategy's focus on high-quality stocks lagged behind these market trends.
Looking ahead to 2026, the strategy plans to concentrate on micro-cap companies exhibiting broader sales and growth trajectories. It maintains a belief that rallies in low-quality stocks will be short-lived.
The letter specifically highlighted IRADIMED CORPORATION (NASDAQ:IRMD) as the top performance contributor for both the fourth quarter and the full year. IRADIMED CORPORATION is a magnetic resonance imaging compatible medical device manufacturer based in Orlando, Florida.
"IRADIMED CORPORATION (NASDAQ:IRMD) was our top contributor for both the quarter and the full year," the letter stated. "The MRI-compatible medical device company rallied nearly 38% in the fourth quarter and gained approximately 80% for the year."
On December 15, 2025, IRADIMED CORPORATION stock closed at $102.00 per share. This gave the company a market capitalization of $1.244 billion. The stock's one-month return was 5.01%, and it gained 72.38% over the preceding 52 weeks.
According to database records, 14 hedge fund portfolios held IRADIMED CORPORATION at the end of the third quarter of 2025. This represented an increase from 13 funds in the previous quarter. In Q3 2025, the company reported record revenue of $21.2 million, a 16% increase from the same quarter in 2024.