ETFs & Funds
Home›ETFs & Funds›Fund Industry›Riverwater Partners adds Kaiser Aluminum to its Small…
Riverwater Partners adds Kaiser Aluminum to its Small Cap Strategy
Kaiser Aluminum closed at $158.78 on Aug. 31, 2026, as the firm cited supply tightness from Middle East smelter disruptions and continued aluminum tariffs.
Riverwater Partners’ Small Cap Strategy investor letter for Q2 2026 said the fund underperformed the Russell 2000 in the quarter, even as it stayed ahead year to date. The firm pointed to a strong risk-on rally, alongside headwinds from accelerating AI investment, energy market disruptions, and renewed investor appetite for higher-beta stocks.
In the letter, Riverwater Partners said stock selection helped in areas including energy, materials, and financials, while it credited detractors such as healthcare and consumer discretionary to the strategy’s disciplined avoidance of speculative businesses. Looking ahead, the firm said it remains cautiously optimistic and expects opportunities from market dislocations, including AI infrastructure enablers, select consumer and healthcare innovators, and energy businesses trading below intrinsic value.
The fund highlighted Kaiser Aluminum Corporation as a portfolio addition, describing the company’s role producing and selling semi-fabricated specialty aluminum mill products. On Aug. 31, 2026, Kaiser Aluminum closed at $158.78 per share, and the stock has a market capitalization of $2.59 billion.
Riverwater Partners said it purchased Kaiser Aluminum after roughly two and a half million tons of global aluminum capacity remained offline following Middle East smelter disruptions. The firm also referenced continued tariffs on aluminum, arguing the combination of supply shock and policy support could keep pricing elevated for domestic producers through at least 2027.
Latest closeRussell 2000 2,953.17 ▲1.1%