Alluvial Capital Management’s Comment on Seneca Foods Corporation’s (SENEA) Strategic Position

Wed, Aug 13, 2025, 6:25 AM 3 min read

Alluvial Capital Management, an investment advisory firm, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. The fund rose 8.5% in the quarter, bringing the year-to-date returns to 15.6%. As of June 30, the comparable US benchmarks continued to be in negative territory for the year. 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, Alluvial Capital Management highlighted stocks such as Seneca Foods Corporation (NASDAQ:SENEA). Seneca Foods Corporation (NASDAQ:SENEA) offers packaged fruits and vegetables. The one-month return of Seneca Foods Corporation (NASDAQ:SENEA) was 2.41%, and its shares gained 71.11% of their value over the last 52 weeks. On August 12, 2025, Seneca Foods Corporation (NASDAQ:SENEA) stock closed at $104.82 per share, with a market capitalization of $718.955 million.

Alluvial Capital Management stated the following regarding Seneca Foods Corporation (NASDAQ:SENEA) in its second quarter 2025 investor letter:

"Rounding out this quarter’s winners is Seneca Foods. Seneca Foods Corporation (NASDAQ:SENEA) is emblematic of Alluvial’s efforts to buy boring and little-known, yet highly profitable and undervalued companies. When we first began buying Seneca Foods, the company was coming off a bumper vegetable harvest. This meant a lot of corn and green beans to pack, resulting in high inventory and big borrowings on Seneca’s working capital line of credit. This scared off a lot of investors, but an occasional big pack year is just how it goes for Seneca. When the beans grow, can them. They know that for every bumper crop, there will be a year with more meager yields. Sure enough, this past year saw a modest harvest, and Seneca reduced its borrowings by $259 million, or a whopping $37 per share. Seneca’s balance sheet has normalized, to the benefit of shareholders. Intriguingly, a Seneca competitor, Del Monte, has entered bankruptcy after years of financial struggles. The bankruptcy may present Seneca with the opportunity to pick up some attractive assets at good prices."

An industrial factory complex, with conveyor belts producing packaged fruits and vegetables.

Seneca Foods Corporation (NASDAQ:SENEA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Seneca Foods Corporation (NASDAQ:SENEA) at the end of the first quarter, which was 10 in the previous quarter. While we acknowledge the potential of Seneca Foods Corporation (NASDAQ:SENEA) 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.