Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 4.93% net-of-fees in the second quarter, compared to the Russell 2000 Growth Index’s 7.05% return. The key source of underperformance was poor stock selection, with allocation effects providing little benefit. The underperformance was mostly concentrated in the Industrials sector with minor declines in the Technology and Basic Materials sectors. Gains in the Consumer Discretionary and Utilities sectors partially offset these losses. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like Mesa Laboratories, Inc. (NASDAQ:MLAB) in the second quarter 2023 investor letter. Headquartered in Lakewood, Colorado, Mesa Laboratories, Inc. (NASDAQ:MLAB) is a manufacturer and distributor of life sciences tools and quality control products and services. On August 9, 2023, Mesa Laboratories, Inc. (NASDAQ:MLAB) stock closed at $137.80 per share. One-month return of Mesa Laboratories, Inc. (NASDAQ:MLAB) was 13.17%, and its shares lost 27.72% of their value over the last 52 weeks. Mesa Laboratories, Inc. (NASDAQ:MLAB) has a market capitalization of $741.954 million.
Conestoga Small Cap Strategy made the following comment about Mesa Laboratories, Inc. (NASDAQ:MLAB) in its second quarter 2023 investor letter:
“Shares of Mesa Laboratories, Inc. (NASDAQ:MLAB) were down 26% after missing quarterly revenue and earnings estimates and concerns over limited growth expectations in the near future. MLAB reported fiscal 4Q23 results that were below expectations. Revenue was impacted by Covid headwinds and the loss of a significant Clinical Genomics customer. The company’s calibrations solutions division is still being impacted by supply chain issues which we believe have now been largely resolved. MLAB did initiate a cost reduction program which is expected to produce $4 million in annual savings. The company showed very solid operating profit with an adjusted EBITDA margin of 25.9%. We expect MLAB’s revenue growth to return to a more normalized 6%-8% growth rate and adjusted EBITDA margins to improve with the implementation of cost reduction plans and easing of supply chain constraints.”
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Mesa Laboratories, Inc. (NASDAQ:MLAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Mesa Laboratories, Inc. (NASDAQ:MLAB) at the end of first quarter which was 8 in the previous quarter.
We discussed Mesa Laboratories, Inc. (NASDAQ:MLAB) in another article and shared Andvari Associates’ 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.
