Riverwater Micro Opportunities Strategy Increases Position in Allot (ALLT) Following Buyback Announcement
In its Q2 2026 investor letter, Riverwater Partners' Micro Opportunities strategy highlighted an increased position in Allot Ltd. (NASDAQ: ALLT), a network intelligence and security software provider. The decision followed the company's substantial buyback announcement, which modestly raised the fund’s technology exposure after it had been too thin during the quarter. The letter noted that while micro-cap stocks experienced strong performance due to AI buildout and geopolitical factors, Allot underperformed in recent months with a one-month return of -11.76% and a 52-week decline of 4.38%. Despite this, Riverwater emphasized its focus on owning profitable small businesses at reasonable prices rather than chasing market trends. Riverwater acknowledged the potential of Allot but suggested that certain AI stocks may offer better upside with less risk.
Tickers: $ALLT