Donny DBM/iStock via Getty Images Strategy Overview / Performance Summary The Riverwater Partners Small Cap Core Strategy meaningfully outperformed the Russell 2000 Index in the first quarter of 2026. It was the kind of quarter that rewards patience and discipline — and the sort of outcome that feels overdue after extended periods where what we consider quality takes a backseat to speculation. The first quarter of 2026 was defined by a meaningful shift in market leadership and risk perception, driven primarily by escalating geopolitical tensions in the Middle East and evolving concerns around the durability of certain growth narratives. The outbreak of conflict involving Iran introduced a significant exogenous shock, most visibly through higher energy prices and increased volatility across global markets.…