Riverwater Partners faced challenges in Q4 and FY2025, struggling to match benchmark performance due to underweight exposure in speculative areas. Low-quality stocks outperformed, impacting the emphasis on high-quality stocks. The strategy shifts focus to micro-cap companies with broader sales and growth trajectories for 2026.

One of the highlighted stocks in Riverwater Partners’ Q4 2025 investor letter is Douglas Dynamics, Inc. (NYSE:PLOW), a manufacturer of commercial work truck attachments. With a market cap of $841.683 million, the stock saw a 8.14% one-month return and gained 47.72% over the past year, closing at $36.53 per share on January 16, 2026.

Douglas Dynamics, Inc. (NYSE:PLOW) operates in commercial snow and ice control equipment, with a unique cyclical profile. In Q3 2025, net sales increased by 25% to $162.1 million, and gross profit grew by 23% to $38.1 million. The stock is held by 20 hedge fund portfolios, showing potential for investment but with some downside risk.

For more investor letters from hedge funds and leading investors, visit the hedge fund investor letters Q4 2025 page. Check out the best and worst Dow stocks for the next 12 months and 10 unstoppable stocks that could double your money. Disclosure: None.

Read more at Yahoo Finance: Riverwater Micro Opportunities Strategy’s Overview on Douglas Dynamics (PLOW)