Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Despite growing by 12.70% net of fees in the fourth quarter, the strategy was unable to match the 15.64% return of the Russell Micro Cap Growth Index. Underperformance was mostly caused by poor stock selection in the Health Care and Industrials. Micro Cap Composite declined -1.02% net-of-fees, trailing the Russell Micro Cap Growth Index’s gain of 9.11% for 2023. Positive effects on sector allocation and stock selection in the technology and basic materials sectors did help the portfolio. The majority of the underperformance was mostly centered in the consumer discretionary, health care, and industrial sectors, where choosing stocks proved to be difficult. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Capital Advisors Micro Cap Strategy featured stocks such as Phreesia, Inc. (NYSE:PHR) in the fourth quarter 2023 investor letter. Headquartered in Wilmington, Delaware, Phreesia, Inc. (NYSE:PHR) is an integrated SaaS-based software and payment platform provider for the healthcare sector. On February 16, 2024, Phreesia, Inc. (NYSE:PHR) stock closed at $27.53 per share. One-month return of Phreesia, Inc. (NYSE:PHR) was 11.68%, and its shares lost 25.13% of their value over the last 52 weeks. Phreesia, Inc. (NYSE:PHR) has a market capitalization of $1.532 billion.
Conestoga Capital Advisors Micro Cap Strategy stated the following regarding Phreesia, Inc. (NYSE:PHR) in its fourth quarter 2023 investor letter:
“Phreesia, Inc. (NYSE:PHR): PHR, a leader in patient intake software to the medical industry, had a strong rebound in the fourth quarter after being a laggard in the third quarter. PHR reported a strong third quarter, with margins and adjusted EBITDA significantly beating expectations. PHR’s management also pivoted their financial model with the introduction of their 2024 guidance, reflecting an increased focus on profitability, which came in materially ahead of expectations. Revenue growth guidance moderated but is still projected at greater than 20%.”
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Phreesia, Inc. (NYSE:PHR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Phreesia, Inc. (NYSE:PHR) was held by 20 hedge fund portfolios, up from 18 in the previous quarter, according to our database.
We discussed Phreesia, Inc. (NYSE:PHR) in another article and shared TimesSquare Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
