Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the Small Cap Composite outperformed the Russell 2000 Growth Index benchmark and returned 21.93% versus the benchmark’s return of 18.66%. The strategy rose 10.97% net-of-fees in the fourth quarter compared to the 12.75% return for the index. As anticipated, the strategy produced the majority of its outperformance during the down-market times. In general, 2023 had mixed results for better-caliber businesses. Sector allocations contributed more to Conestoga’s relative performance in the Small Cap Composite than stock selection effects did. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Capital Advisors Small Cap Strategy featured stocks such as Altair Engineering Inc. (NASDAQ:ALTR) in the fourth quarter 2023 investor letter. Altair Engineering Inc. (NASDAQ:ALTR) offers software and cloud solutions for simulation, high-performance computing, data analytics, and artificial intelligence headquartered in Troy, Michigan. On February 16, 2024, Altair Engineering Inc. (NASDAQ:ALTR) stock closed at $90.47 per share. One-month return of Altair Engineering Inc. (NASDAQ:ALTR) was 5.54%, and its shares gained 62.83% of their value over the last 52 weeks. Altair Engineering Inc. (NASDAQ:ALTR) has a market capitalization of $7.388 billion.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Altair Engineering Inc. (NASDAQ:ALTR) in its fourth quarter 2023 investor letter:
“Altair Engineering Inc. (NASDAQ:ALTR): ALTR, a leader in design and simulation software, reported strong earnings during the quarter, beating across all metrics. Adjusted EBITDA margins jumped almost 600 basis points year-over-year, leading to significantly higher profitability. ALTR is not seeing pressure from a softer macroeconomic environment domestically or in China, a dynamic some of their peers mentioned during their earnings calls. ALTR called out particular strength in the aerospace, auto and technology verticals.”
A computer programmer developing a software application for high-performance computing.
Altair Engineering Inc. (NASDAQ:ALTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Altair Engineering Inc. (NASDAQ:ALTR) was held by 17 hedge fund portfolios, up from 14 in the previous quarter, according to our database.
We discussed Altair Engineering Inc. (NASDAQ:ALTR) in another article and shared Mairs & Power Small Cap Fund’s views on the company. 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.
