Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the Small Cap Composite outperformed the Russell 2000 Growth Index benchmark and returned 21.93% versus the benchmark’s return of 18.66%. The strategy rose 10.97% net-of-fees in the fourth quarter compared to the 12.75% return for the index. As anticipated, the strategy produced the majority of its outperformance during the down-market times. In general, 2023 had mixed results for better-caliber businesses. Sector allocations contributed more to Conestoga’s relative performance in the Small Cap Composite than stock selection effects did. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Capital Advisors Small Cap Strategy featured stocks such as The Descartes Systems Group Inc. (NASDAQ:DSGX) in the fourth quarter 2023 investor letter. Headquartered in Waterloo, Canada, The Descartes Systems Group Inc. (NASDAQ:DSGX) provides cloud-based logistics and supply chain solutions. On February 16, 2024, The Descartes Systems Group Inc. (NASDAQ:DSGX) stock closed at $86.66 per share. One-month return of The Descartes Systems Group Inc. (NASDAQ:DSGX) was -0.31%, and its shares gained 15.33% of their value over the last 52 weeks. The Descartes Systems Group Inc. (NASDAQ:DSGX) has a market capitalization of $7.398 billion.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding The Descartes Systems Group Inc. (NASDAQ:DSGX) in its fourth quarter 2023 investor letter:
“The Descartes Systems Group Inc. (NASDAQ:DSGX): DSGX is a leading provider of cloud-based logistics and supply chain solutions with over 24,000 customers worldwide. DSGX reported strong 3Q results, which have been bolstered by enterprises navigating a constantly evolving supply chain landscape. Wars in Ukraine and Israel, tariffs as part of trade wars, and countries restricting goods sold to nations deemed as bad actors, all necessitates using technology to be able to dynamically and efficiently transport goods. DSGX reported 19% revenue growth and 44% EBITDA margins while converting over 88% of Adjusted EBITDA to cash from operations during the third quarter.”
A supply chain employee using the company’s secure supply chain management software to update their customer’s records.
The Descartes Systems Group Inc. (NASDAQ:DSGX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The Descartes Systems Group Inc. (NASDAQ:DSGX) was held by 15 hedge fund portfolios, up from 12 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q4 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.
