Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Micro Cap Composite declined -1.53% net of fees in the second quarter, compared to the Russell Microcap Growth Index’s 6.35% return. Despite eight of the eleven sectors adding value to relative performance, negative stock selection effects in the Industrials, Health Care, and Technology sectors proved too much to overcome. The portfolio was also hindered by stylistic headwinds. Positive sector allocation effects contributed modestly to performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Micro Cap Strategy highlighted stocks like Construction Partners, Inc. (NASDAQ:ROAD) in the second quarter 2023 investor letter. Headquartered in Dothan, Alabama, Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that engages in the construction and maintenance of roadways. On August 9, 2023, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $33.47 per share. One-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 16.13%, and its shares gained 14.58% of their value over the last 52 weeks. Construction Partners, Inc. (NASDAQ:ROAD) has a market capitalization of $1.766 billion.
Conestoga Micro Cap Strategy made the following comment about Construction Partners, Inc. (NASDAQ:ROAD) in its second quarter 2023 investor letter:
“Construction Partners, Inc. (NASDAQ:ROAD): ROAD provides infrastructure construction services across the Southeastern United States. ROAD is benefiting from broad-based demand for road maintenance while also starting to see demand from the Infrastructure Investment and Jobs Act (IIJA). At the same time, ROAD is benefitting from lower diesel and liquid asphalt costs, two key inputs. Labor inflation and turnover have normalized, and ROAD posted 34% revenue growth in their most recent quarter, half of which is organic. ROAD should see healthy margin expansion as their backlog of projects with inflation protections flows through their income statement. “
Photo by Scott Blake on Unsplash
Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of first quarter which was 5 in the previous quarter.
We discussed Construction Partners, Inc. (NASDAQ:ROAD) in another article and shared Wasatch Micro Cap Growth—U.S. Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.
