The Resilient Bull Case for Red Violet (RDVT): From Dip to Violent Snapback Soumya Eswaran Tue, August 11, 2026 at 3:49 PM GMT+2 4 min read RDVT ^RUT Immersion Investment Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Immersion Investment Partners returned 39.1% in the second quarter, surpassing the Russell 2000 Index's 21.5% gain.
The market started valuing their non-AI investments more rationally in the quarter, focusing on strong management, revenue growth, and improving cash flow. The firm capitalized on market selloffs due to macroeconomic factors unrelated to company fundamentals, increasing positions at lower prices, which led to gains in several holdings as they rebounded in the second quarter. In addition, please check the firm's top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Immersion Investment Partners highlighted Red Violet, Inc. (NASDAQ:RDVT). Red Violet, Inc. (NASDAQ:RDVT) is a software and services company that provides analytics and information solutions focusing on identity intelligence and risk management. On August 10, 2026, Red Violet, Inc. (NASDAQ:RDVT) closed at $65.65 per share.
The one-month return of Red Violet, Inc. (NASDAQ:RDVT) was -4.05%, and its shares gained 53.78% over the past 52 weeks. Red Violet, Inc. (NASDAQ:RDVT) has a market capitalization of $1.05 billion. Immersion Investment Partners stated the following regarding Red Violet, Inc. (NASDAQ:RDVT) in its Q2 2026 investor letter: "Red Violet, Inc. (NASDAQ:RDVT) (RDVT – Underdog) merits some discussion, given the violent contraction in the first quarter and the subsequent snapback.
To reiterate our previously stated views from our Annual Meeting presentation, the company's core identity offering is not exposed to AI threats. If anything, Red Violet has always been a beneficiary of AI trends and is itself powered by its custom-built AI driven CORE platform, which can efficiently build profiles on every American from billions of data points in a secure environment with continuous monitoring and live profile updates. Aside from the technological advantages of Red Violet's CORE platform, the company benefits from reputational intangibles on the supplier and buyer sides of the equation.
Data providers selling sensitive personal information require significant security infrastructure from credible buyers like Red Violet, and, on the other side, Red Violet's customers (banks, debt collectors, government agencies, etc.) need the data to be accurate. For example, a debt collector that contacts a person who has declared bankruptcy is liable to significant fines and penalties. Those customers cannot rely on a cobbled-together AI-built solution.
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