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 Olo Inc. (NYSE:OLO) . Headquartered in New York, New York, Olo Inc. (NYSE:OLO) offers a SaaS platform for restaurants. The one-month return Olo Inc. (NYSE:OLO) was -4.95%, and its shares gained 27.19% of their value over the last 52 weeks. On February 11, 2025, Olo Inc. (NYSE:OLO) stock closed at $7.11 per share, with a market capitalization of $1.164 billion.
Conestoga Capital Advisors stated the following regarding Olo Inc. (NYSE:OLO) in its Q4 2024 investor letter:
“OLO is a software-as-a-service (SaaS) technology platform that enables its restaurant brand customers (over 700 total) to reach their customers across over 85,000 locations. OLO reported third quarter results ahead of expectations and raised guidance for the third time this year. Revenue for the quarter grew 24% and operating margins continued to expand. OLO continued to drive impressive cross-sell, driving up revenue per customer, which complimented their 9% growth by location.”
A business executive showcasing a mobile ordering app to a busy restaurant staff.
Olo Inc. (NYSE:OLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Olo Inc. (NYSE:OLO) at the end of the third quarter which was 21 in the previous quarter. Olo Inc.’s (NYSE:OLO) total revenue was $71.9 million in the third quarter of 2024, an increase of 24% year-over-year. While we acknowledge the potential of Olo Inc. (NYSE:OLO) 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 Olo Inc. (NYSE:OLO) and shared the list of most undervalued penny stocks to buy according to analysts. 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.