Overview
- Riverwater reported that its Sustainable Value Strategy trailed the Russell 2500 Value Index in the first quarter, and it said the gap came entirely from individual stock picks.
- The firm said small caps rose about 11% through February, then late‑quarter geopolitical shocks increased volatility and left the strategy more than 5% behind.
- Plexus was the top contributor, lifted by strong industrial demand, brisk orders for semiconductor equipment, a new robotics customer, and solid healthcare device orders.
- Riverwater said Plexus also improved results by using AI to speed factory processes, which pushed returns on invested capital near record levels.
- The team sold its Lazard stake, arguing the shares assumed a stronger deal market even as mergers slowed and two record IPOs drew fee revenue away.