Riverwater Micro Opportunities Strategy Exits Zevia (ZVIA) Due to Leadership Change
In its Q2 2026 investor letter, Riverwater Partners' Micro Opportunities strategy highlighted the case of Zevia PBC (NYSE:ZVIA), a beverage company. The fund briefly held shares in early May after improved fundamentals but exited the position following an unexpected leadership change when the CEO resigned mid-June. This exit demonstrated the firm's disciplined approach to selling based on predefined criteria tied to management stability. The strategy underperformed the Russell Microcap Index over both one quarter and twelve months, despite a positive absolute return during a speculative period for micro-cap stocks. The fund emphasized its focus on owning profitable small businesses at reasonable prices rather than chasing market trends like AI or geopolitical-driven sectors such as industrials. Zevia's stock closed at $1.50 per share with a market cap of $107.66 million, having declined 3.85% in one month and over 54% year-to-date.
Topics: investor letter micro-cap sell discipline Zevia (ZVIA)