Core Insights - Riverwater Partners' "Micro Opportunities Strategy" faced challenges in Q4 and FY2025, underperforming against benchmarks due to underweight exposure in speculative market areas [1] - The strategy's focus on high-quality stocks lagged behind the performance of low-quality stocks, which outperformed the market [1] - Looking ahead to 2026, the strategy aims to concentrate on micro-cap companies with broader sales and growth trajectories, anticipating that the rallies in low-quality stocks will be short-lived [1] Company-Specific Insights - American Vanguard Corporation (NYSE:AVD) was highlighted as a performance detractor in Q4 2025, with a one-month return of 10.82% but a 52-week loss of 15.35% [2] - Despite operational improvements under new management, American Vanguard's stock price declined, illustrating inefficiencies in micro-cap equities [3] - Key operational metrics for American Vanguard include a 20% year-over-year reduction in inventory levels and an increase in gross margins from 15% to 29%, with adjusted EBITDA rising from $2 million to $8 million [3]