Conestoga Capital Advisors, an asset management company, released its “Small 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 the 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%. Conestoga Small Cap Composite fell -5.59% in the second quarter compared to -2.92% for the Russell 2000 Growth Index. Stock selection was the major reason for the underperformance of the portfolio relative to the index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like Merit Medical Systems, Inc. (NASDAQ:MMSI) in the second quarter 2024 investor letter. Merit Medical Systems, Inc. (NASDAQ:MMSI) designs, develops, manufactures, and markets single-use medical products. The one-month return of Merit Medical Systems, Inc. (NASDAQ:MMSI) was 6.04%, and its shares gained 33.87% of their value over the last 52 weeks. On August 15, 2024, Merit Medical Systems, Inc. (NASDAQ:MMSI) stock closed at $90.56 per share with a market capitalization of $5.271 billion.
Conestoga Capital Advisors stated the following regarding Merit Medical Systems, Inc. (NASDAQ:MMSI) in its Q2 2024 investor letter:
“Merit Medical Systems, Inc. (NASDAQ:MMSI): MMSI delivered quarterly results which surpassed expectations for earnings and sales growth. The company’s international performance was particularly robust, driven by 22% growth in China. Operational improvements contributed to expanding gross margins. MMSI continues to execute its Continued Growth Initiatives targets, maintaining an attractive outlook due to its steady performance and diversified portfolio. We believe recent acquisitions and anticipated product approvals set the stage for future growth tailwinds in 2025 and beyond.”
A surgeon using endoscopy products to perform a medical procedure.
Merit Medical Systems, Inc. (NASDAQ:MMSI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Merit Medical Systems, Inc. (NASDAQ:MMSI) at the end of the first quarter which was 22 in the previous quarter. Merit Medical Systems, Inc.’s (NASDAQ:MMSI) second quarter results exceeded expectations and generated $338 million in total revenues, up 5.6% year over year. While we acknowledge the potential of Merit Medical Systems, Inc. (NASDAQ:MMSI) 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 addition, please check out our hedge fund investor letters Q2 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.
