Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. For the second consecutive year, U.S. equity indices ended the year with double-digit returns after generating modest returns in the fourth quarter of 2024. Conestoga’s investment plans were hindered by the enthusiasm for everything artificial intelligence (AI) related, which the firm believes led to a more speculative investing climate. The Conestoga Small Cap Composite surged 1.67% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s 1.70% return. The Conestoga SMid Cap Composite returned -0.68% (net) trailing the Russell 2500 Growth Index’s 2.43% return. The Conestoga Micro Cap Composite advanced 9.91% (net) vs the Russell Microcap Growth Index’s return of 11.55%. Finally, the Conestoga Mid Cap Composite returned -4.63% (net) underperforming the Russell Midcap Growth Index’s 8.14% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
In its fourth quarter 2024 investor letter, Conestoga Capital Advisors emphasized stocks such as Vail Resorts, Inc. (NYSE:MTN). Headquartered in Broomfield, Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resorts and ski areas operator. The one-month return Vail Resorts, Inc. (NYSE:MTN) was -9.75%, and its shares lost 25.64% of their value over the last 52 weeks. On February 11, 2025, Vail Resorts, Inc. (NYSE:MTN) stock closed at $166.33 per share, with a market capitalization of $6.227 billion.
Conestoga Capital Advisors stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q4 2024 investor letter:
“Vail Resorts, Inc. (NYSE:MTN) is the leading ski mountain resort operator in the world. MTN’s organic earnings growth profile has slowed over the last several years after a one-time 20% reduction in pass prices during the pandemic, followed by significant wage increases to address labor shortages. While we anticipate a modest acceleration in the coming years, we sold MTN to add to higher conviction existing portfolio holdings with better visibility into earnings growth.”
An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory.
Vail Resorts, Inc. (NYSE:MTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Vail Resorts, Inc. (NYSE:MTN) at the end of the third quarter which was 29 in the previous quarter. The fiscal first quarter of 2025, Vail Resorts, Inc. (NYSE:MTN) recorded a net loss of $172.8 million, down from $175.5 million net loss during the same period the previous year. While we acknowledge the potential of Vail Resorts, Inc. (NYSE:MTN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article we discussed Vail Resorts, Inc. (NYSE:MTN) and shared the list of best seasonal stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2024 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.