Riverwater Partners Sustainable Value Strategy's Views on Its New Position Adeia, Inc. (ADEA)

Riverwater Partners, an investment management company, released its “Sustainable Value Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed the Russell 2500 Index during the fourth quarter as well as for the full year. Stock selection drove the underperformance of the Strategy in the quarter. The Strategy’s emphasis on high-quality stocks lagged behind broader market trends. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Riverwater Partners Sustainable Value Strategy highlighted stocks like Adeia Inc. (NASDAQ:ADEA). Headquartered in San Jose, California, Adeia Inc. (NASDAQ:ADEA) is a media and semiconductor intellectual property licensing company. Adeia Inc. (NASDAQ:ADEA) shares traded between $10.59 and $20.33 over the past 52 weeks. On January 22, 2026, Adeia Inc. (NASDAQ:ADEA) stock closed at $19.91 per share. One-month return of Adeia Inc. (NASDAQ:ADEA) was 17.53%, and its shares gained 16.43% of their value over the last three months. Adeia Inc. (NASDAQ:ADEA) has a market capitalization of $2.18 billion.

Riverwater Partners Sustainable Value Strategy stated the following regarding Adeia Inc. (NASDAQ:ADEA) in its fourth quarter 2025 investor letter:

"During the quarter, we initiated two positions: Adeia Inc. (NASDAQ:ADEA) and Synovus Financial Corp. (SNV). We initiated a position in Adeia, Inc. (ADEA) in the fourth quarter. ADEA licenses intellectual property (IP) to its customers for use in their media and semiconductor products and services. Spun out of Xperi Inc. (XPER) in 2022, ADEA has a broad range of media customers as licensees. Additionally, hybrid bonding is becoming a key technology used by semiconductor manufacturers as complexity increases. ADEA’s IP is currently licensed by the major memory players, with several logic players also interested.

ADEA is a "practicing" or research-based licensing entity that invests in innovations and advanced research and development (R&D) to create market-leading technologies in its key areas of focus (media and semiconductors). ADEA has 138 employees, 60% of which are PhDs with 50–100 patents on average; the top engineer has 650 patents, approaching Edison-level prolificacy. The company has developed over $500M of R&D since 2010…” (Click here to read the full text)

Adeia Inc. (NASDAQ:ADEA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Adeia Inc. (NASDAQ:ADEA) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of Adeia Inc. (NASDAQ:ADEA) 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 addition, please check out our hedge fund investor letters Q4 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.