Conestoga Capital Advisors, an asset management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. At its September meeting, the Federal Reserve lowered the Federal Funds rate by 50 basis points due to weaker employment growth and moderate inflation. Equity markets welcomed the news, raising optimism for a soft landing in the U.S. economy. On September 26th, the S&P 500 Index achieved a record high, the Russell 2000 Index also moved higher over the quarter but remains roughly 10% below its all-time high. The Conestoga Small Cap Composite surged 10.09% (net) in the third quarter outperforming the Russell 2000 Growth Index’s 8.41% return. The Conestoga SMid Cap Composite returned 12.94% (net) versus the Russell 2500 Growth Index’s 6.99% return. The Conestoga Micro Cap Composite advanced 7.60% (net) but trailed the Russell Microcap Growth Index’s return of 8.57%. Finally, the Conestoga Mid Cap Composite returned 8.36% (net) outperforming the Russell Midcap Growth Index’s 6.54%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like CSW Industrials, Inc. (NASDAQ:CSWI), in the third quarter 2024 investor letter. CSW Industrials, Inc. (NASDAQ:CSWI) is a diversified industrial company. The one-month return of CSW Industrials, Inc. (NASDAQ:CSWI) was 7.04%, and its shares gained 126.77% of their value over the last 52 weeks. On October 21, 2024, CSW Industrials, Inc. (NASDAQ:CSWI) stock closed at $392.79 per share with a market capitalization of $6.531 billion.
Conestoga Capital Advisors stated the following regarding CSW Industrials, Inc. (NASDAQ:CSWI) in its Q3 2024 investor letter:
“CSW Industrials, Inc. (NASDAQ:CSWI) is diversified industrial company focused on niche, value added products heavily tied to residential heating ventilation and air conditioning (HVAC) maintenance and repair. The stock reacted favorably to its calendar second quarter report which included 8% organic growth and 20% EBITDA growth.”
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CSW Industrials, Inc. (NASDAQ:CSWI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held CSW Industrials, Inc. (NASDAQ:CSWI) at the end of the second quarter which was 20 in the previous quarter. Consolidated revenue of CSW Industrials, Inc. (NASDAQ:CSWI) in the first fiscal quarter of 2025, was $226 million, up 11% year-over-year. While we acknowledge the potential of CSW Industrials, Inc. (NASDAQ:CSWI) 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.
Conestoga Capital Advisors added CSW Industrials, Inc. (NASDAQ:CSWI) to its portfolio during Q3 2023. 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.