Speculative Rally Weighed on LeMaitre Vascular (LMAT)

In Riverwater Partners' Q2 2026 investor letter, the Small Cap Strategy underperformed the Russell 2000 due to a strong risk-on rally in the benchmark. The strategy remained ahead for the year-to-date period. The second quarter was marked by increased investment in AI, energy market fluctuations, and heightened interest in higher-beta stocks, which presented challenges for Riverwater Partners' quality-focused healthcare approach.

Despite the underperformance, stock selection in energy, materials, and financials proved beneficial. The firm remains cautiously optimistic about potential opportunities arising from market dislocations, focusing on AI infrastructure companies, select consumer firms, healthcare innovators, and energy businesses trading below their intrinsic value.

Riverwater Partners highlighted LeMaitre Vascular, Inc. (NASDAQ:LMAT), a medical device company, in its Q2 2026 letter. The company closed at $80.28 per share on August 31, 2026. LMAT has experienced a decline of 24.11% in the past month and 15.52% over the past 52 weeks. The company boasts a market capitalization of $1.84 billion and a 52-week trading range between $78.27 and $118.01.

Riverwater Partners attributed LMAT's decline to sentiment-driven factors, rather than fundamental issues, considering the company's pricing power and consistent execution. The firm does not consider LMAT among the 40 Most Popular Stocks Among Hedge Funds, and while the strategy recognizes the potential of LMAT, it believes AI stocks present greater upside potential with less downside risk.