Soumya Eswaran
3 min read
In This Article:
Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q1 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated positive relative results in the first quarter, outperforming the benchmark. The results were driven by owning higher-quality companies compared to those in the microcap benchmark. Both stock selection and sector allocation contributed to the outperformance of the strategy in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as Red Violet, Inc. (NASDAQ:RDVT). Red Violet, Inc. (NASDAQ:RDVT) is an analytics and information solutions company. The one-month return of Red Violet, Inc. (NASDAQ:RDVT) was 2.59%, and its shares gained 93.24% of their value over the last 52 weeks. On June 30, 2025, Red Violet, Inc. (NASDAQ:RDVT) stock closed at $49.20 per share, with a market capitalization of $686.63 million.
Riverwater Partners Micro Opportunities Strategy stated the following regarding Red Violet, Inc. (NASDAQ:RDVT) in its Q1 2025 investor letter:
"Red Violet, Inc. (NASDAQ:RDVT) provides advanced data analytics and identity intelligence solutions through its two main platforms: FOREWARN, a safety tool for real estate professionals, and Interactive Data Inc. (IDI), an analytics platform serving multiple industries with applications in identity verification, fraud prevention, compliance, and due diligence.
A technician inserting a credit card into a point-of-sale machine for identity authentication.
Red Violet, Inc. (NASDAQ:RDVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Red Violet, Inc. (NASDAQ:RDVT) at the end of the first quarter, which was 14 in the previous quarter. Red Violet, Inc.’s (NASDAQ:RDVT) first quarter revenue increased 26% to a record $22 million. While we acknowledge the potential of Red Violet, Inc. (NASDAQ:RDVT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
