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 its fourth-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted Natural Gas Services Group, Inc. (NYSE:NGS) as a recent addition. Natural Gas Services Group, Inc. (NYSE:NGS) is a US-based compression equipment provider. On January 16, 2026, Natural Gas Services Group, Inc. (NYSE:NGS) stock closed at $33.64 per share. One-month return of Natural Gas Services Group, Inc. (NYSE:NGS) was 2.94%, and its shares gained 20.19% of their value over the last 52 weeks. Natural Gas Services Group, Inc. (NYSE:NGS) has a market capitalization of $422.818 million.
Riverwater Partners Micro Opportunities Strategy stated the following regarding Natural Gas Services Group, Inc. (NYSE:NGS) in its fourth quarter 2025 investor letter:
“During the 4th quarter we purchased Natural Gas Services Group, Inc. (NYSE:NGS), an energy services company located in Texas, primarily in the Permian region. NGS rents and maintains natural gas compression units used in oil and gas transportation, production and processing facilities. NGS is a unique energy play because they are largely price and commodity agnostic as their focus is on volumes rather than being reliant on the economics of a given commodity. A large percent of their revenue is under long term contracts. Additionally, NGS is in the process of optimizing their portfolio to large horsepower (greater than 1,000HP) while reducing their exposure to small and medium horsepower, about 25% of current revenue. Importantly, NGS has access to large horsepower compressors which is a vital asset in a very tight market. A larger horsepower fleet will be better utilized and have a better margin profile. We are optimistic about volume growth, the optimization of their portfolio evolution and how this could better allow them to compete with the larger players.”
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