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 Hillman Solutions Corp. (NASDAQ:HLMN). Hillman Solutions Corp. (NASDAQ:HLMN) offers hardware-related products and related merchandising services. The one-month return Hillman Solutions Corp. (NASDAQ:HLMN) was 2.63%, and its shares gained 15.49% of their value over the last 52 weeks. On February 11, 2025, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $10.14 per share, with a market capitalization of $1.993 billion.
Conestoga Capital Advisors stated the following regarding Hillman Solutions Corp. (NASDAQ:HLMN) in its Q4 2024 investor letter:
“Hillman Solutions Corp. (NASDAQ:HLMN) is the leading distributor of hardware, home improvement products, and robotic kiosk technologies to a broad range of retailers. Hillman leverages its 1,100 person direct sales force to manage over 114,000 SKU’s for 42,000 retail locations. While HLMN has effectively navigated supply chain disruptions and inflationary pressure, the robotics division, which is accretive to both growth and margins, has underperformed. M&A, which contributes to growth, was also delayed with the supply chain issues. HLMN has executed well, but overall, the environment has left Conestoga less positive about its future success.”
Workers in protective clothing assembling hardware products on a production line.
Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of the third quarter which was 16 in the previous quarter. Hillman Solutions Corp.’s (NASDAQ:HLMN) third quarter sales were $393.3 million, a decrease of 1.4% compared to the same quarter last year.. While we acknowledge the potential of Hillman Solutions Corp. (NASDAQ:HLMN) 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 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.