Ace River Capital Partners Increased its Position in MarineMax (HZO) in Q2

Ace River Capital, an investment management company, released its second-quarter 2025 investor letter. The fund returned -5.33% in the second quarter. A copy of the letter can be downloaded here. The fund underperformed this quarter, primarily due to difficulties in several key holdings, despite no significant changes to the fundamental value of the businesses. The firm’s focus continues to be on a select group of high-quality small-cap companies that have sustainable economics, strong management, and the capacity to reinvest profitably.  In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Ace River Capital highlighted stocks such as MarineMax, Inc. (NYSE:HZO). MarineMax, Inc. (NYSE:HZO) is a recreational boat and yacht retailer and superyacht services company. The one-month return of MarineMax, Inc. (NYSE:HZO) was -13.51%, and its shares lost 19.38% of their value over the last 52 weeks. On August 8, 2025, MarineMax, Inc. (NYSE:HZO) stock closed at $22.47 per share, with a market capitalization of $482.287 million.

Ace River Capital stated the following regarding MarineMax, Inc. (NYSE:HZO) in its second quarter 2025 investor letter:

"MarineMax, Inc. (NYSE:HZO): HZO faced pressure this quarter as retail boat sales continue to normalize post-COVID, compounded by higher interest rates. That said, the company is quietly transforming its business model by increasing its mix of service, storage, and marina operations—higher-margin, recurring revenue streams that improve business quality and reduce cyclicality. The market seems focused on the next quarter. We're focused on the next few years. We added slightly to our position at what we believe are attractive long-term prices."

MarineMax, Inc. (NYSE:HZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held MarineMax, Inc. (NYSE:HZO) at the end of the first quarter, which was 21 in the previous quarter. While we acknowledge the potential of MarineMax, Inc. (NYSE:HZO) 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.

In another article, we covered MarineMax, Inc. (NYSE:HZO) and shared Ace River Capital's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.