Conestoga Capital Advisors, an asset management company, released its “Micro-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. The moderation theme also drives equity markets. 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%. The Micro Cap Strategy declined -8.52% net-of-fees in the quarter compared to a -5.57% return for the Russell Microcap Growth Index. Underperformance was mostly caused by negative stock selection effects in the Telecommunications and industrial sectors, with Health Care being the most addictive. Sector allocation effects influenced relative returns. Also, low-beta companies with cheap multiples, the quarter’s biggest winners, were a drag on the portfolio. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like Cryoport, Inc. (NASDAQ:CYRX) in the second quarter 2024 investor letter. Cryoport, Inc. (NASDAQ:CYRX) is a temperature-controlled supply chain solutions provider. The one-month return of Cryoport, Inc. (NASDAQ:CYRX) was -5.75%, and its shares lost 36.95% of their value over the last 52 weeks. On August 16, 2024, Cryoport, Inc. (NASDAQ:CYRX) stock closed at $9.01 per share with a market capitalization of $445.205 million.
Conestoga Capital Advisors stated the following regarding Cryoport, Inc. (NASDAQ:CYRX) in its Q2 2024 investor letter:
“Cryoport, Inc. (NASDAQ:CYRX): CYRX is a leading provider of cold chain logistics solutions to the life sciences industry. CYRX’s 1Q24 revenue and adjusted EBITDA missed consensus, although management reaffirmed Fiscal year 2024 guidance. CYRX continues to face multiple headwinds, including softness in capital equipment spending and weakness in China. Other areas of the business management remain upbeat on improvement in the second half of 2024 due to healthy forecasts from commercial clients, new approvals ramping, and improved biotech funding. CYRX is now supporting over 640 clinical trials. As these trials progress to the commercial stage, revenue growth should follow.”
A busy freight train Traversing a vast expanse of land, carrying the company’s cargo.
Cryoport, Inc. (NASDAQ:CYRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Cryoport, Inc. (NASDAQ:CYRX) at the end of the second quarter which was 10 in the previous quarter. While we acknowledge the potential of Cryoport, Inc. (NASDAQ:CYRX) 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 Cryoport, Inc. (NASDAQ:CYRX) and shared Conestoga Capital Advisors’ views on the company in Q2 2023. 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.
