Riverwater Partners released its Q3 2025 investor letter for the Small Cap Strategy, reporting solid results but lagging behind the benchmark due to the market’s preference for lower-quality companies. The strategy remains focused on higher-quality companies with enduring fundamentals and transparency. Check the fund’s top 5 holdings for 2025 picks.

In Q3 2025, Riverwater Partners Small Cap Strategy highlighted Vestis Corporation (NYSE:VSTS) as a uniform rental and workplace supplies provider. Vestis Corporation (NYSE:VSTS) saw a one-month return of 38.46% and closed at $7.56 per share on December 15, 2025, with a market capitalization of $996.913 million.

Riverwater Partners Small Cap Strategy exited Vestis Corporation (NYSE:VSTS) due to the company’s turnaround process taking longer than expected, coupled with a debt overhang that could hinder reinvestment. Vestis Corporation (NYSE:VSTS) is not among the 30 Most Popular Stocks Among Hedge Funds, with 27 hedge fund portfolios holding the stock at the end of Q3.

Vestis Corporation (NYSE:VSTS) was covered in a previous article regarding a drop in revenue in Q2. Check out Riverwater Small Cap Strategy’s views on the company in the previous quarter. Visit the hedge fund investor letters Q3 2025 page for more insights from leading investors.

Read more at Yahoo Finance: Here’s Why Riverwater Partners Small Cap Strategy Sold Vestis Corporation (VSTS)