Here’s Why Riverwater Partners Micro Opportunities Strategy Exited National CineMedia (NCMI)

2 weeks ago 16

Soumya Eswaran

Mon, January 19, 2026 astatine 8:01 AM CST 3 min read

Riverwater Partners, an concern absorption company, released its “Micro Opportunities Strategy” Q4 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Both Q4 and the afloat twelvemonth 2025 were challenging for the strategy, which struggled to lucifer the benchmark show successful Q4 and FY2025. The underweight vulnerability successful speculative areas of the marketplace led to the underperformance successful the 2nd fractional of the year. Low-quality stocks with mediocre fundamentals outperformed the marketplace successful the year. The strategy’s accent connected high-quality stocks lagged down the broader marketplace trends. Heading to 2026, the Strategy focuses connected micro-cap companies with broader income and maturation trajectories and believes that the low-quality banal marketplace rallies volition beryllium short-lived. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks specified arsenic National CineMedia, Inc. (NASDAQ:NCMI). National CineMedia, Inc. (NASDAQ:NCMI) is simply a North American-based cinema advertizing web operator. On January 16, 2026, National CineMedia, Inc. (NASDAQ:NCMI) banal closed astatine $3.84 per share. One-month instrumentality of National CineMedia, Inc. (NASDAQ:NCMI) was -0.26%, and its shares mislaid 43.53% of their worth implicit the past 52 weeks. National CineMedia, Inc. (NASDAQ:NCMI) has a marketplace capitalization of $360.312 million.

Riverwater Partners Micro Opportunities Strategy stated the pursuing regarding National CineMedia, Inc. (NASDAQ:NCMI) successful its 4th fourth 2025 capitalist letter:

"National CineMedia, Inc. (NASDAQ:NCMI) was held connected the thesis that a normalization successful container bureau attendance would thrust a betterment successful cinema advertizing volumes, operating leverage, and escaped currency travel pursuing the company’s restructuring. We exited the presumption arsenic fourth-quarter container bureau trends proved materially weaker than expected, limiting advertiser request and delaying the anticipated rebound successful nationalist and section advertisement spend. Similar to theatre operators, marketplace speculation astir accrued vertical integration—such arsenic Netflix reportedly exploring the acquisition of Warner Bros.—introduced a longer-term structural overhang by raising concerns astir theatrical relevance and selling budgets tied to cinemas. While NCMI remains the ascendant cinema advertizing level with improved equilibrium expanse flexibility post-bankruptcy, these factors reduced our assurance successful the timing and durability of net recovery."

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