Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Micro Cap Composite declined -1.53% net of fees in the second quarter, compared to the Russell Microcap Growth Index’s 6.35% return. Despite eight of the eleven sectors adding value to relative performance, negative stock selection effects in the Industrials, Health Care, and Technology sectors proved too much to overcome. The portfolio was also hindered by stylistic headwinds. Positive sector allocation effects contributed modestly to performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Micro Cap Strategy highlighted stocks like Olo Inc. (NYSE:OLO) in the second quarter 2023 investor letter. Headquartered in New York, New York, Olo Inc. (NYSE:OLO) offers a SaaS platform for restaurants. On August 9, 2023, Olo Inc. (NYSE:OLO) stock closed at $6.93 per share. One-month return of Olo Inc. (NYSE:OLO) was 7.44%, and its shares lost 46.65% of their value over the last 52 weeks. Olo Inc. (NYSE:OLO) has a market capitalization of $1.123 billion.
Conestoga Micro Cap Strategy made the following comment about Olo Inc. (NYSE:OLO) in its second quarter 2023 investor letter:
“Olo Inc. (NYSE:OLO) and our new position in Planet Labs, Inc. (PL) were the biggest laggards in the Technology sector. OLO was a first quarter leader and reported revenue and profits ahead of street expectations and raised full year guidance for both metrics. However, the stock fell as investors processed the impact of its consolidation of recent acquisitions and hiring of a new COO.
Olo, Inc. (OLO): OLO creates and sells software to the restaurant and food service industry, serving over 75,000 locations in the U.S. OLO was a first quarter portfolio leader before trading lower during the second quarter. OLO reported first quarter revenue and profits ahead of street expectations and raised full year guidance for both metrics. In June, OLO reduced their workforce by 11% after consolidating recent acquisitions and eliminating duplicate roles. The company also hired Joanna Lambert as COO. Joanna brings significant experience in the payment space (PYPL, AMEX), a key growth driver for OLO.”
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Olo Inc. (NYSE:OLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Olo Inc. (NYSE:OLO) at the end of first quarter 2023 which was 18 in the previous quarter.
We discussed Olo Inc. (NYSE:OLO) in another article and shared Conestoga Micro Cap Strategy’s views on the company in the previous quarter. 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.
