Buyback Announcement Makes Allot (ALLT) Attractive

Riverwater Partners, an investment management company, released its "Micro Opportunities Strategy" Q2 2026 investor letter. A copy of the letter is available to download here. In Q2 2026, the Micro Opportunities strategy underperformed the Russell Microcap Index, despite a positive absolute result.

The benchmark performed well during a speculative period for micro caps. Over the past twelve months, the strategy has lagged behind the index. Industrials was the best-performing sector while Information Technology lagged.

An accelerating artificial intelligence buildout and a persistent geopolitical supply shock drove the market in the quarter. While the micro-cap rally exhibited speculative traits with significant returns in areas avoided by design. The Fund's focus remains on owning profitable, well-managed small businesses at reasonable prices rather than pursuing fleeting market trends.

In addition, please check the Strategy's top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Riverwater Micro Opportunities Strategy highlighted Allot Ltd. (NASDAQ:ALLT).

Allot Ltd. (NASDAQ:ALLT) is a technology company that develops and markets network intelligence and security solutions. On July 24, 2026, Allot Ltd.

(NASDAQ:ALLT) closed at $7.65 per share, reflecting a market capitalization of $374.26 million.

Allot Ltd. (NASDAQ:ALLT) posted a one-month return of -11.76%, while its shares lost 4.

38% over the past 52 weeks. Riverwater Micro Opportunities Strategy stated the following regarding Allot Ltd. (NASDAQ:ALLT) in its Q2 2026 investor update: "We also increased Allot Ltd.

(NASDAQ:ALLT), the network intelligence and security software provider, following a substantial buyback announcement, an addition that also modestly raised our technology exposure, which this quarter demonstrated was too thin." Is Allot Ltd. (ALLT) the Best Cybersecurity Stock to Invest in Under $20?

Allot Ltd. (NASDAQ:ALLT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 17 hedge fund portfolios held Allot Ltd.

(NASDAQ:ALLT) at the end of the first quarter, compared to 19 in the previous quarter. While we acknowledge the potential of Allot Ltd. (NASDAQ:ALLT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.

If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Allot Ltd. (NASDAQ:ALLT) and shared the list of small cap software infrastructure stocks to buy.

In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None.

This article is originally published at Insider Monkey. Riverwater Partners, an investment management company, released its "Micro Opportunities Strategy" Q2 2026 investor letter. A copy of the letter is available to download here.

In Q2 2026, the Micro Opportunities strategy underperformed the Russell Microcap Index, despite a positive absolute result. The benchmark performed well during a speculative period for micro caps. Over the past twelve months, the strategy has lagged behind the index.

Industrials was the best-performing sector while Information Technology lagged. An accelerating artificial intelligence buildout and a persistent geopolitical supply shock drove the market in the quarter. While the micro-cap rally exhibited speculative traits with significant returns in areas avoided by design.

The Fund's focus remains on owning profitable, well-managed small businesses at reasonable prices rather than pursuing fleeting market trends. In addition, please check the Strategy's top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Riverwater Micro Opportunities Strategy highlighted Allot Ltd.

(NASDAQ:ALLT). Allot Ltd. (NASDAQ:ALLT) is a technology company that develops and markets network intelligence and security solutions.

On July 24, 2026, Allot Ltd. (NASDAQ:ALLT) closed at $7.65 per share, reflecting a market capitalization of $374.

26 million. Allot Ltd. (NASDAQ:ALLT) posted a one-month return of -11.

76%, while its shares lost 4.38% over the past 52 weeks. Riverwater Micro Opportunities Strategy stated the following regarding Allot Ltd.

(NASDAQ:ALLT) in its Q2 2026 investor update: "We also increased Allot Ltd. (NASDAQ:ALLT), the network intelligence and security software provider, following a substantial buyback announcement, an addition that also modestly raised our technology exposure, which this quarter demonstrated was too thin." Is Allot Ltd.

(ALLT) the Best Cybersecurity Stock to Invest in Under $20? Allot Ltd. (NASDAQ:ALLT) is not on our list of 40 Most Popular Stocks Among