Riverwater Partners released its fourth-quarter 2025 investor letter for the Micro Opportunities Strategy. The strategy faced challenges in both the fourth quarter and the full year of 2025, failing to match benchmark performance.
Underweight exposure in speculative market areas contributed to underperformance in the second half of the year. Low-quality stocks with poor fundamentals outperformed the market, while the strategy's focus on high-quality stocks lagged behind broader trends.
Looking ahead to 2026, the strategy plans to concentrate on micro-cap companies with broader sales and growth trajectories. It believes rallies in low-quality stocks will be short-lived.
In the letter, Riverwater Partners identified Limoneira Company as one of the top performance detractors. Limoneira Company is an agribusiness operator.
On January 16, 2026, Limoneira Company stock closed at $14.24 per share. The stock showed a one-month return of -3.06% and lost 38.22% of its value over the last 52 weeks. Its market capitalization stands at $258.016 million.
Regarding Limoneira Company, Riverwater Partners stated: "Limoneira Company 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."