Modine Manufacturing Company (MOD) Benefited From AI Spending

Core Insights - Riverwater Partners' Small Cap Strategy reported solid results in Q3 2025 but lagged behind the benchmark due to market 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 Performance - Modine Manufacturing Company (NYSE:MOD) was highlighted as a strong performer, with a one-month return of 8.96% and a 52-week gain of 11.44% [2] - As of December 15, 2025, Modine's stock closed at $142.27, with a market capitalization of $7.49 billion [2] - Modine's thermal management solutions are benefiting from increased spending on AI-related infrastructure, particularly in data centers [3] Market Position and Valuation - Despite significant valuation expansion, Riverwater Partners maintains its position in Modine due to its strong market position and the ongoing demand for data center infrastructure to support AI workloads [3] - Modine's sales for Q2 of fiscal 2026 increased by 12%, driven by growth in Climate Solutions [4] - Modine is not among the top 30 most popular stocks among hedge funds, with 49 hedge fund portfolios holding its shares at the end of Q3, unchanged from the previous quarter [4]