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 Pool Corporation (NASDAQ:POOL), in the third quarter 2024 investor letter. Pool Corporation (NASDAQ:POOL) is a distributor of swimming pool supplies, equipment, and related leisure products. The one-month return of Pool Corporation (NASDAQ:POOL) was -4.18%, and its shares gained 9.94% of their value over the last 52 weeks. On October 22, 2024, Pool Corporation (NASDAQ:POOL) stock closed at $350.78 per share with a market capitalization of $13.42 billion.
Conestoga Capital Advisors stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q3 2024 investor letter:
“As its name implies, Pool Corporation (NASDAQ:POOL) distributes supplies and equipment for pools and the related hardscaping products. Based in Covington, LA, POOL’s shares benefited from increased home improvement spending during the COVID era. Shares cooled in 2022 and we believe the company’s growth trajectory has normalized. POOL’s revenues and earnings modestly exceeded analyst expectations in the second quarter.”
Aerial view of a swimming pool with outdoor furniture surrounding it.
Pool Corporation (NASDAQ:POOL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the second quarter which was 40 in the previous quarter. Pool Corporation (NASDAQ:POOL) recorded $1.8 billion in net sales in the second quarter, 5% less than the previous year. While we acknowledge the potential of Pool Corporation (NASDAQ:POOL) 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 Pool Corporation (NASDAQ:POOL) and shared the list of best industrial distribution stocks to buy. Pool Corporation (NASDAQ:POOL) detracted from the performance of Conestoga Capital Advisors in the previous quarter. 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.