Here’s Why Riverwater Partners Small Cap Strategy Sold Vestis Corporation (VSTS)

8 hours ago 1

Soumya Eswaran

Tue, December 16, 2025 astatine 6:55 AM CST 2 min read

Riverwater Partners, an concern absorption company, released its “Small Cap Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Small Cap Core Strategy reported coagulated results for the 4th but did not support gait with the crisp rally, frankincense lagging the benchmark. The market’s penchant for lower-quality companies persisted successful the 4th and contributed importantly to the benchmark’s outperformance. On the different hand, the strategy remains focused connected higher-quality companies with enduring fundamentals, accordant revenue, and a transparent way to profitability. The steadfast powerfully believes that the strategy is well-positioned successful the challenging quarter. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Riverwater Partners Small Cap Strategy highlighted stocks specified arsenic Vestis Corporation (NYSE:VSTS). Vestis Corporation (NYSE:VSTS) is simply a azygous rental and workplace supplies provider. The one-month instrumentality of Vestis Corporation (NYSE:VSTS) was 38.46%, and its shares mislaid 53.07% of their worth implicit the past 52 weeks. On December 15, 2025, Vestis Corporation (NYSE:VSTS) banal closed astatine $7.56 per share, with a marketplace capitalization of $996.913 million.

Riverwater Partners Small Cap Strategy stated the pursuing regarding Vestis Corporation (NYSE:VSTS) successful its 3rd 4th 2025 capitalist letter:

"We exited Vestis Corporation (NYSE:VSTS) arsenic the institution is presently successful the process of turning astir the concern and we judge it could instrumentality overmuch longer than primitively anticipated. Coupled with this is simply a indebtedness overhang that could perchance marque it hard to reinvest successful the concern arsenic funds are allocated to paying down debt."

Vestis Corporation (NYSE:VSTS) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge money portfolios held Vestis Corporation (NYSE:VSTS) astatine the extremity of the 3rd quarter, which was 34 successful the erstwhile quarter. While we admit the imaginable of Vestis Corporation (NYSE:VSTS) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

In another article, we covered Vestis Corporation (NYSE:VSTS) and shared Riverwater Small Cap Strategy's views connected the institution successful the erstwhile quarter. In addition, delight cheque retired our hedge money capitalist letters Q3 2025 page for much capitalist letters from hedge funds and different starring investors.