Conestoga Capital Advisors, an asset management company, released its “SMid 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. Equity markets are also driven by moderation theme. 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 strategy declined -4.82% net-of-fees in the quarter compared to -4.22% return for the Russell 2500 Growth Index. Stock selection effects in the Health Care and Consumer Discretionary sectors were the primary drivers of underperformance and were partially offset by positive contributions in the Technology and Industrials sectors. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like Tyler Technologies, Inc. (NYSE:TYL), in the second quarter 2024 investor letter. Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was 11.00%, and its shares gained 56.38% of their value over the last 52 weeks. On August 15, 2024, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $582.01 per share with a market capitalization of $24.836 billion.
Conestoga Capital Advisors stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q2 2024 investor letter:
“Tyler Technologies, Inc. (NYSE:TYL): In late April, TYL reported another strong quarter which continued to demonstrate its strong competitive position and business model. As a leading provider of software to the public safety as well as the local municipal and state governments, TYL reported revenue and earnings well above Street expectations, and also raised guidance for 2024. TYL’s 1Q24 bookings and recurring revenues increased. Recurring revenues are now 84% of revenue.”
A close-up of a businessman in corporate attire discussing financial management solutions with a client.
Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the first quarter which was 29 in the previous quarter. In the second quarter Tyler Technologies, Inc. (NYSE:TYL) generated $541 million in revenues, up 7.3% and organically grew 6.5%. While we acknowledge the potential of Tyler Technologies, Inc. (NYSE:TYL) 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 Tyler Technologies, Inc. (NYSE:TYL) and shared Artisan Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
