Conestoga Capital Advisors, an asset management company, released its “Small 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. Equity markets are also driven by the moderation theme. 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%. Conestoga Small Cap Composite fell -5.59% in the second quarter compared to -2.92% for the Russell 2000 Growth Index. Stock selection was the major reason for the underperformance of the portfolio relative to the index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like Agilysys, Inc. (NASDAQ:AGYS) in the second quarter 2024 investor letter. Agilysys, Inc. (NASDAQ:AGYS) develops and markets software-enabled solutions and services to the hospitality industry. The one-month return of Agilysys, Inc. (NASDAQ:AGYS) was -0.12%, and its shares gained 58.33% of their value over the last 52 weeks. On August 15, 2024, Agilysys, Inc. (NASDAQ:AGYS) stock closed at $109.80 per share with a market capitalization of $3.061 billion.
Conestoga Capital Advisors stated the following regarding Agilysys, Inc. (NASDAQ:AGYS) in its Q2 2024 investor letter:
“Agilysys, Inc. (NASDAQ:AGYS): Based in Alpharetta, GA, Agilysys is a leading provider of software to the hospitality industry. The company offers approximately 30 products including point-of-sale, property management, inventory management to the hotel, casino, resort and gaming industries. Key clients include Hilton, Marriott, and Caesars Entertainment. Its recent win with Marriott with its property management product should provide accelerated revenue growth and increased profitability starting in mid-2025. The company’s business model has solid visibility with subscription revenues accounting for 55% of total recurring revenue. We expect the company to grow its revenues and earnings at levels consistent with our buy criteria.”
An expert IT engineer demonstrating a new software solution to hotel managers in a boardroom.
Agilysys, Inc. (NASDAQ:AGYS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Agilysys, Inc. (NASDAQ:AGYS) at the end of the first quarter which was 21 in the previous quarter. Agilysys, Inc.’s (NASDAQ: AGYS) revenue for the fiscal first quarter 0f 2025 was $63.5 million, marking a 13.3% increase over the prior year period. While we acknowledge the potential of Agilysys, Inc. (NASDAQ:AGYS) 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 Agilysys, Inc. (NASDAQ:AGYS) and shared The Brown Capital Management Small Company Fund’s views on the company in the previous quarter. 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.
