Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Conestoga Small Cap Composite returned 3.69% in the first quarter compared to 7.58% for the Russell 2000 Growth Index. The market continued to rise in the first quarter as many major asset classes delivered positive returns. Lack of holdings in Super Micro Computer Inc. (SMCI) and MicroStrategy Inc. (MSTR), the largest names in the benchmark, was the major reason for the underperformance of the portfolio relative to the index. In addition, stock selection in the technology sector, especially within the software industry proved challenging. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors Small Cap Strategy highlighted stocks like Construction Partners, Inc. (NASDAQ:ROAD), in the first quarter 2024 investor letter. Construction Partners, Inc. (NASDAQ:ROAD), with a market capitalization of $3.025 billion, is a civil infrastructure company that constructs and maintains roadways. One-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 10.82%, and its shares gained 92.99% of their value over the last 52 weeks. On May 20, 2024, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $57.26 per share.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its first quarter 2024 investor letter:
“Construction Partners, Inc. (NASDAQ:ROAD): ROAD is a top 5 leader for the second time in three quarters as the Infrastructure Investment and Jobs Act (IIJA) is creating significant demand for the construction, repair, and maintenance of America’s surface infrastructure. ROAD’s backlog has grown for 13 consecutive quarters as the strong demand offsets any seasonal weakness. In addition, moderating input costs have led to strengthening margins, profitability, and free cash flow. ROAD also remains the acquirer of choice in their seven southeastern states, leading to further consolidation and market density.”
An aerial view of a bridge under construction with workers continuing their work despite the early morning light.
Construction Partners, Inc.’s (NASDAQ:ROAD) trailing 12 months revenue is $1.66 billion and year over year quarterly revenue growth rate is 14.30%. In the recent quarter Construction Partners, Inc. (NASDAQ:ROAD) generated $371.4 million revenue as per the latest earnings call.
Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the fourth quarter which was 14 in the previous quarter.
In another article, we discussed Construction Partners, Inc. (NASDAQ:ROAD) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.
