What Makes Mayville Engineering Company (MEC) a Good Long-Term Holding?

Core Insights - Riverwater Partners' Micro Opportunities Strategy reported solid absolute returns in Q3 2025 but lagged behind the benchmark due to not keeping pace with the market rally [1] - The strategy continues to focus on quality companies amid a volatile environment [1] Company Overview - Mayville Engineering Company, Inc. (NYSE:MEC) is a metal fabrication company involved in design, production, prototyping, tooling, aluminum extrusion, coating, and assembly of aftermarket components [2] - As of December 16, 2025, Mayville Engineering's stock closed at $18.25 per share, with a market capitalization of $370.81 million [2] Performance Metrics - Mayville Engineering's one-month return was 21.67%, and its shares gained 12.31% over the last 52 weeks [2] - In Q3 2025, Mayville Engineering's total sales increased by 6.6% year-over-year to $144.3 million [4] Market Position and Trends - The Industrials sector showed mixed results, with opportunities in reshoring trends and domestic manufacturing, although some companies faced near-term challenges [3] - Mayville Engineering experienced softened customer demand in certain end markets, impacting its performance [3] - Despite near-term weaknesses, there is confidence in Mayville Engineering's long-term positioning to benefit from the reshoring of manufacturing to the U.S. [3] Hedge Fund Interest - Mayville Engineering is not among the 30 most popular stocks among hedge funds, with 7 hedge fund portfolios holding the stock at the end of Q3 2025, down from 11 in the previous quarter [4]