Here’s Why the Fund Trimmed Mama’s Creations (MAMA)

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 Mama's Creations, Inc. (NASDAQ:MAMA).

Mama's Creations, Inc. (NASDAQ:MAMA) is a food company that manufactures and markets fresh deli-prepared foods. On July 24, 2026, Mama's Creations, Inc.

(NASDAQ:MAMA) closed at $17.74 per share. One-month return of Mama's Creations, Inc.

(NASDAQ:MAMA) was -14.09%, and its shares gained 100.91% over the past 52 weeks.

Mama's Creations, Inc. (NASDAQ:MAMA) has a market capitalization of $824.86 million.

Riverwater Micro Opportunities Strategy stated the following regarding Mama's Creations, Inc. (NASDAQ:MAMA) in its Q2 2026 investor update: "We trimmed Mama's Creations, Inc. (NASDAQ:MAMA) in May for similar reasons: after a strong run the stock carried a premium multiple for a food company facing tougher comparisons, even as distribution wins at Walmart and Target continue to expand its footprint."

Chipotle Mexican Grill, Inc. (CMG): The $5 Meal Line Was 'Abhorrent," Says Jim Cramer Mama's Creations, Inc. (NASDAQ:MAMA) 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 Mama's Creations, Inc. (NASDAQ:MAMA) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the potential of Mama's Creations, Inc.

(NASDAQ:MAMA) 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. Story Continues In another article, we covered Mama's Creations, Inc.

(NASDAQ:MAMA) and shared Long Cast Advisors' views on the company. 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 Mama's Creations, Inc. (NASDAQ:MAMA). Mama's Creations, Inc.

(NASDAQ:MAMA) is a food company that manufactures and markets fresh deli-prepared foods. On July 24, 2026, Mama's Creations, Inc. (NASDAQ:MAMA) closed at $17.

74 per share. One-month return of Mama's Creations, Inc. (NASDAQ:MAMA) was -14.

09%, and its shares gained 100.91% over the past 52 weeks. Mama's Creations, Inc.

(NASDAQ:MAMA) has a market capitalization of $824.86 million. Riverwater Micro Opportunities Strategy stated the following regarding Mama's Creations, Inc.

(NASDAQ:MAMA) in its Q2 2026 investor update: "We trimmed Mama's Creations, Inc. (NASDAQ:MAMA) in May for similar reasons: after a strong run the stock carried a premium multiple for a food company facing tougher comparisons, even as distribution wins at Wal