Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported solid absolute returns in the quarter but lagged the benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as Coastal Financial Corporation (NASDAQ:CCB). Coastal Financial Corporation (NASDAQ:CCB) is a bank holding company for Coastal Community Bank. One-month return of Coastal Financial Corporation (NASDAQ:CCB) was 12.76%, and its shares gained 44.49% of their value over the last 52 weeks. On December 16, 2025, Coastal Financial Corporation (NASDAQ:CCB) stock closed at $114.93 per share, with a market capitalization of $1.738 billion.
Riverwater Partners Micro Opportunities Strategy stated the following regarding Coastal Financial Corporation (NASDAQ:CCB) in its third quarter 2025 investor letter:
“Within Financials, we maintained an overweight position, particularly in community banks that stand to benefit from an eventual steepening of the yield curve and improving net interest margins. Coastal Financial Corporation (NASDAQ:CCB) remained a top holding, though we trimmed our position during the quarter to harvest gains and manage exposure. We continue to see attractive risk-reward dynamics within the banking sector, especially for well-capitalized institutions with strong deposit franchises and disciplined lending practices.”
Coastal Financial Corporation (NASDAQ:CCB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Coastal Financial Corporation (NASDAQ:CCB) at the end of the third quarter, which was 16 in the previous quarter. While we acknowledge the potential of Coastal Financial Corporation (NASDAQ:CCB) 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.
In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
