StoneX (SNEX) Doubled From Its Lows as Trading Activity Surged — Can the Growth Continue?

StoneX (SNEX) Doubled From Its Lows as Trading Activity Surged — Can the Growth Continue?

Tue, September 1, 2026 at 4:11 PM GMT+3 3 min read

• SNEX -0.93%
• ^RUT -0.54%

Riverwater Partners, an investment management company, released its 'Small Cap Strategy' Q2 2026 investor letter. The letter can be downloaded here. The Small Cap Strategy underperformed the Russell 2000 in the second quarter as the benchmark experienced one of its strongest risk-on rallies in recent memory, although the strategy remained ahead year-to-date. The quarter was defined by accelerating AI investment, energy market disruptions, and renewed investor appetite for higher-beta stocks, creating headwinds for the firm's quality-focused approach and healthcare positioning. Despite this, stock selection contributed positively in energy, materials, and financials, while healthcare and consumer discretionary detracted due to the fund's disciplined avoidance of speculative businesses. Looking ahead, the firm remains cautiously optimistic, focusing on opportunities created by market dislocations, including AI infrastructure enablers, select consumer companies, healthcare innovators, and energy businesses trading below intrinsic value. The strategy continues to emphasize high-quality companies with strong management teams and attractive valuations, positioning the portfolio for a potential rotation away from speculative market leadership. In addition, please check the Strategy's top five holdings to know its best picks in 2026.

In its second-quarter 2026 investor letter, Riverwater Partners Small Cap Strategy highlighted StoneX Group Inc. (NASDAQ:SNEX) as a notable contributor. StoneX Group Inc. (NASDAQ:SNEX) operates as a US-based global financial services network that connects companies, organizations, traders, and investors to a market ecosystem. On August 31, 2026, StoneX Group Inc. (NASDAQ:SNEX) closed at $68.48 per share. StoneX Group Inc. (NASDAQ:SNEX) fell 8.97% over the past month while its shares gained 50.63% over the past 52 weeks. StoneX Group Inc. (NASDAQ:SNEX) has a market capitalization of $8.26 billion with a 52-week trading range between $36.45 - $94.66.

Riverwater Partners Small Cap Strategy stated the following regarding StoneX Group Inc. (NASDAQ:SNEX) in its Q2 2026 investor letter:

"StoneX Group Inc. (NASDAQ:SNEX), our financial services and clearing holding, was the portfolio's largest contributor as shares gained approximately 47% during the quarter. Elevated market volatility stemming from the Middle East conflict drove exceptional trading and clearing activity, and the stock ground steadily higher after quarterly earnings results. With shares having roughly doubled from their lows and valuation approaching the high end of historical ranges, we trimmed the position into strength while keeping it among our largest holdings. We continue to view it as an unusually durable compounder across market environments."

StoneX Group Inc. (NASDAQ:SNEX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held StoneX Group Inc. (NASDAQ:SNEX) at the end of the second quarter which was 32 in the previous quarter. While we acknowledge the potential of StoneX Group Inc. (NASDAQ:SNEX) 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 Q2 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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