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 IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. The one-month return IDEXX Laboratories, Inc. (NASDAQ:IDXX) was 9.65%, and its shares lost 17.27% of their value over the last 52 weeks. On February 11, 2025, IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock closed at $463.74 per share, with a market capitalization of $37.97 billion.
Conestoga Capital Advisors stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its Q4 2024 investor letter:
“IDEXX Laboratories, Inc. (NASDAQ:IDXX) is the industry leader in providing instruments (and consumables) used in diagnostics, detection, and information systems for veterinary, food, and water testing applications. Earnings for the quarter were mixed, and forward guidance was lowered. Shares were pressured as clinical visits across the industry remain weak, with an unprecedented 10 of 11 recent quarters seeing negative US same store vet visits. These recent trends should normalize over time as the secular demand remains robust.”
A veterinarian in a veterinary clinic examining a companion animal.
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) at the end of the third quarter which was 41 in the previous quarter. While we acknowledge the potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) 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 IDEXX Laboratories, Inc. (NASDAQ:IDXX) and shared the list of stocks that are rallying despite tariff worries according to Jim Cramer. 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.