Soumya Eswaran
3 min read
In This Article:
Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q1 2025 investor letter. A copy of the letter can be downloaded here. The strategy outperformed its benchmark, the Russell 2500 Value Index, in the first quarter. The relative outperformance was primarily driven by positive stock selection, while the allocation effect also contributed positively. 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 Sustainable Value Strategy highlighted stocks such as Mr. Cooper Group Inc. (NASDAQ:COOP). Mr. Cooper Group Inc. (NASDAQ:COOP) is a residential loan servicing company. The one-month return of Mr. Cooper Group Inc. (NASDAQ:COOP) was 13.39%, and its shares gained 85.40% of their value over the last 52 weeks. On June 30, 2025, Mr. Cooper Group Inc. (NASDAQ:COOP) stock closed at $149.21 per share, with a market capitalization of $9.547 billion.
Riverwater Partners Sustainable Value Strategy stated the following regarding Mr. Cooper Group Inc. (NASDAQ:COOP) in its Q1 2025 investor letter:
"Our top-performing position was Mr. Cooper Group Inc. (NASDAQ:COOP), a relatively recent addition from last year. As one of the nation's largest mortgage servicing companies, Mr. Cooper announced a merger with Rocket Mortgage late in the quarter at a substantial premium to its market valuation. This transaction is expected to close later this year, and since the combined entity will become a large-cap company, we plan to redeploy these proceeds into a new position aligned with our small and mid-cap mandate."
A direct-to-consumer channel customer checking their mortgage account online.
Mr. Cooper Group Inc. (NASDAQ:COOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Mr. Cooper Group Inc. (NASDAQ:COOP) at the end of the first quarter, which was 38 in the previous quarter. While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP) 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.
In another article, we covered Mr. Cooper Group Inc. (NASDAQ:COOP) and shared the list of cheap mid-cap stocks to add to your portfolio. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of COOP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
