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. Check the fund’s top 5 holdings for 2025 picks.

In its Q3 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted Palomar Holdings, Inc. (NASDAQ:PLMR) with a market cap of $3.362 billion. Palomar Holdings, Inc. (NASDAQ:PLMR) stock closed at $125.52 per share on December 15, 2025. The company’s performance was affected by various headwinds in the quarter.

Palomar Holdings, Inc. (NASDAQ:PLMR) faced challenges in Q3 2025 due to market headwinds, including weaker commercial market pricing and investor concerns about underwriting margin compression. Despite underperformance, the company has strong potential with multi-year rate plans and expansion into diversified lines.

30 hedge fund portfolios held Palomar Holdings, Inc. (NASDAQ:PLMR) at the end of Q3 2025, up from 28 in the previous quarter. The company reported adjusted net income of $55.2 million in Q3 2025 compared to $32.4 million in Q3 2024. Consider AI stocks for greater upside potential and less downside risk.

Read more at Yahoo Finance: A Confluence of Headwinds Affected Palomar (PLMR) in Q3