Riverwater Partners Invests in Middleby Ahead of Business Separation
In its Q2 2026 investor letter, Riverwater Partners' Small Cap Strategy highlighted The Middleby Corporation (NASDAQ:MIDD) as a key investment. The firm established the position in May 2026 ahead of Middleby's planned spin-off of its food processing business on July 6, 2026. Riverwater cited strong organic growth and share repurchases by Middleby as factors supporting their decision to invest before this structural change. The strategy underperformed the Russell 2000 in Q2 due to a broader market rally favoring high-beta stocks but remained ahead year-to-date. Despite challenges from AI-driven sectors, energy disruptions, and speculative consumer plays, Riverwater's focus on quality companies with strong management teams helped it perform well in materials and financials. Middleby closed at $112.75 per share as of August 28, 2026, with a market cap of $5.14 billion. The stock had declined by nearly 18% over the past month but gained slightly over the last year.
Tickers: $MIDD
Topics: business separation Middleby Riverwater Partners stock buying activity