Riverwater Partners released its Q2 2025 investor letter, showing underperformance due to defensive holdings and market preference for low-quality companies. Check the top 5 holdings to determine best picks for 2025. Vestis Corporation (NYSE:VSTS) reported a one-month return of -2.29% and closed at $4.26 per share on September 08, 2025.

Riverwater Small Cap Strategy noted Vestis Corporation (NYSE:VSTS) underperformed in Q2 2025, citing revenue decline and net loss. The company eliminated dividends and amended credit agreement to boost liquidity, but financial stress and diminished investor confidence remain. They hold a small position, considering selling if situation doesn’t improve.

Vestis Corporation (NYSE:VSTS) is not among the 30 Most Popular Stocks Among Hedge Funds. 34 hedge fund portfolios held VSTS at the end of Q2, down from 48 in the previous quarter. Q3 revenue decreased 3.5% year-over-year to $674 million. While VSTS has potential, AI stocks offer greater upside with less risk.

Vestis Corporation (NYSE:VSTS) was covered in another article listing best single digit stocks to buy according to hedge funds. For more investor letters, check out the hedge fund investor letters Q2 2025 page for insights from leading investors.

Read more at Yahoo Finance: Here’s Why Vestis Corporation’s (VSTS) Revenue Dropped in Q2