Riverwater Partners Small Cap Strategy Sold Iridium Communications (IRDM) as Growth Slows

Core Insights - Riverwater Partners' Small Cap Strategy reported solid results for Q3 2025 but lagged behind the benchmark due to the market's preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with strong fundamentals and a clear path to profitability, positioning itself well in a challenging market [1] Company-Specific Insights - Iridium Communications Inc. (NASDAQ:IRDM) had a one-month return of 8.98% but experienced a significant decline of 40.07% over the past 52 weeks, closing at $17.60 per share with a market capitalization of $1.868 billion on December 15, 2025 [2] - Concerns regarding Iridium's growth trajectory and competitive dynamics led to its sale by Riverwater Partners, alongside an increase in the company's leverage ratio, which adds risk as growth slows [3] - Iridium Communications Inc. was held by 34 hedge fund portfolios at the end of Q3 2025, an increase from 33 in the previous quarter, but it is not considered among the 30 most popular stocks among hedge funds [4]