Conestoga Capital Advisors, an asset management company, released its “Mid-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 may be regarded as a time of moderation. Economic indicators largely reflected slowing growth and easing inflation. The moderation theme also drives equity markets. Large-cap stocks, as measured by the S&P 500, rose 3.9% in the second quarter, however, small-cap stocks lagged again, with the Russell 2000 Index declining -3.3% and the Russell 2000 Growth Index declining -2.9%. The Mid Cap Strategy declined -4.22% net-of-fees in the quarter compared to a -3.21% return for the Russell Mid Cap Growth Index. Sector allocation effects were slightly positive, while stock selection effects detracted from relative returns. Higher-quality companies benefited from stylistic factors, which helped to boost relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like Lightspeed Commerce Inc. (NYSE:LSPD), in the second quarter 2024 investor letter. Lightspeed Commerce Inc. (NYSE:LSPD), provides cloud-based software subscriptions and payment solutions. The one-month return of Lightspeed Commerce Inc. (NYSE:LSPD) was -3.19%, and its shares lost 14.36% of their value over the last 52 weeks. On August 16, 2024, Lightspeed Commerce Inc. (NYSE:LSPD) stock closed at $13.36 per share with a market capitalization of $2.024 billion.
Conestoga Capital Advisors stated the following regarding Lightspeed Commerce Inc. (NYSE:LSPD) in its Q2 2024 investor letter:
“Lightspeed Commerce Inc. (NYSE:LSPD): LSPD is a leading cloud-based software and payment solutions provider to the retail and hospitality industries. Following last quarter’s weak earnings and CEO change, we arrived at the conclusion that there had been fundamental deterioration leading to significant changes in corporate strategy and management. We redeployed funds to holdings with better fundamental outlooks.”
A customer using a mobile device to purchase goods through an omni-channel experience.
Lightspeed Commerce Inc. (NYSE:LSPD) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Lightspeed Commerce Inc. (NYSE:LSPD) at the end of the second quarter which was 15 in the previous quarter. In the Fiscal Q1 2025, Lightspeed Commerce Inc. (NYSE:LSPD) delivered revenue of $266.1 million, up 27% year-over-year. While we acknowledge the potential of Lightspeed Commerce Inc. (NYSE:LSPD) 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 Lightspeed Commerce Inc. (NYSE:LSPD) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
