Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. Both Q4 and the full year 2025 were challenging for the strategy, which struggled to match the benchmark performance in Q4 and FY2025. The underweight exposure in speculative areas of the market led to the underperformance in the second half of the year. Low-quality stocks with poor fundamentals outperformed the market in the year. The strategy’s emphasis on high-quality stocks lagged behind the broader market trends. Heading to 2026, the Strategy focuses on micro-cap companies with broader sales and growth trajectories and believes that the low-quality stock market rallies will be short-lived. In addition, you can check the fund’s top five holdings to determine its best picks for 2025.
In the fourth-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted IRADIMED CORPORATION (NASDAQ:IRMD) as its top performance contributor. Headquartered in Orlando, Florida, IRADIMED CORPORATION (NASDAQ:IRMD) is a magnetic resonance imaging (MRI) compatible medical device manufacturer. The one-month return for IRADIMED CORPORATION (NASDAQ:IRMD) was 5.01%, and its shares gained 72.38% over the last 52 weeks. On December 15, 2025, IRADIMED CORPORATION (NASDAQ:IRMD) stock closed at $102.00 per share, with a market capitalization of $1.244 billion.
Riverwater Partners Micro Opportunities Strategy stated the following regarding IRADIMED CORPORATION (NASDAQ:IRMD) in its fourth quarter 2025 investor letter:
“IRADIMED CORPORATION (NASDAQ:IRMD) was our top contributor for both the quarter and the full year. The MRI-compatible medical device company rallied nearly 38% in the fourth quarter and gained approximately 80% for the year.
IRADIMED CORPORATION (NASDAQ:IRMD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held IRADIMED CORPORATION (NASDAQ:IRMD) at the end of the third quarter, which was 13 in the previous quarter. In Q3 2025, IRADIMED CORPORATION (NASDAQ:IRMD) reported record revenue of $21.2 million, marking an increase of 16% from Q3 2024. While we acknowledge the potential of IRADIMED CORPORATION (NASDAQ:IRMD) 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.
