Architectural Cases

Riverwater Partners' Micro Opportunities Strategy has spotlighted Mayville Engineering Company (MEC) as a significant long-term investment, despite the broader market's recent volatility. The strategy's third-quarter 2025 investor letter noted that while the overall market saw strong rallies, their focus on quality companies like MEC underscores a commitment to enduring value. MEC, a metal fabrication leader involved in design, production, and assembly of aftermarket components, has demonstrated notable financial resilience, with its shares gaining 12.31% over the past 52 weeks and a one-month return of 21.67%, closing at $18.25 per share with a market capitalization of $370.81 million.

Despite some short-term hurdles, including reduced customer demand in certain sectors, Riverwater Partners remains optimistic about MEC's future, particularly its strategic alignment with the increasing trend of manufacturing reshoring to the United States. This trend positions MEC favorably for sustained growth, emphasizing its importance in domestic industrial resurgence. In Q3 2025, MEC's total sales rose by 6.6% year-over-year to $144.3 million, showcasing its operational strength even amidst challenging market conditions. However, it's worth noting that MEC is not among the top 30 most popular stocks favored by hedge funds, with only seven hedge funds holding its shares in the third quarter, down from eleven in the previous quarter.

Ultimately, while Mayville Engineering Company presents a solid investment case based on its fundamental strengths and strategic market positioning, investors are encouraged to explore diverse options. For those seeking ventures with potentially higher upside and lower risk, particularly within the booming AI sector, it might be beneficial to consider other opportunities. This strategic diversification ensures a well-rounded portfolio capable of capitalizing on various market dynamics and emerging industry trends, aligning with a forward-thinking investment approach that seeks both stability and significant growth.

In the dynamic landscape of global markets, identifying companies with intrinsic value and strategic foresight is crucial. Mayville Engineering Company's robust performance and its pivotal role in the reshoring movement exemplify how businesses can thrive by adapting to economic shifts and contributing to national industrial growth. Such investments not only promise financial returns but also support broader economic resilience and innovation, fostering a positive outlook for the future.

Citadel CEO Ken Griffin recently offered a critical perspective on the current economic landscape, asserting that persistent inflation is largely a consequence of former President Donald Trump's trade protectionism and stringent immigration measures. While recognizing that deregulation could provide a long-term remedy by boosting productivity, Griffin emphasized the immediate inflationary impact of tariffs and the tightening labor market due to immigration policies. This analysis arrives as Democrats reframe the inflation debate around 'affordability,' a move that appears to resonate with the public and pressure Republican strategists to find viable solutions.

Griffin's remarks, delivered at the prestigious Conference de Paris, underscore a significant divergence of opinion regarding the causes and cures for economic instability. He suggested that while the benefits of deregulation might eventually materialize, their delayed effect creates a 'timing issue' that complicates immediate economic relief. The intricate relationship between presidential policies and economic indicators continues to be a central theme in political discourse, with both parties grappling to control the narrative and present effective strategies.

This isn't the first instance of Griffin publicly clashing with Trump over economic matters. Previously, Griffin voiced concerns about Trump's attempts to influence the Federal Reserve, arguing that such interference could compromise the institution's autonomy and erode confidence in the U.S. economy. Trump, however, has consistently dismissed these criticisms, prioritizing his efforts to address what he perceives as inefficiencies over maintaining the Fed's traditional independence.

The broader economic context further illuminates the complexities at play. Recent data indicates a narrowing U.S. trade deficit and a rise in job openings, despite a slowdown in overall hiring. Simultaneously, core inflation metrics, as monitored by the Federal Reserve, show a slight cooling. These mixed signals contribute to the ongoing debate about the most effective economic policies, particularly as figures like ARK Invest CEO Cathie Wood predict a future where AI-driven productivity gains could lead to near-zero inflation and robust GDP growth, regardless of specific political administrations.

Griffin's insights highlight the intricate interplay between political decisions, global trade, and domestic economic health. His observations on the inflationary pressures stemming from past policies and the potential, albeit delayed, relief from deregulation provide a nuanced understanding of the challenges facing policymakers. As the nation approaches future elections, these economic discussions will undoubtedly remain at the forefront, influencing both public perception and political strategies.