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 Simpson Manufacturing Co., Inc. (NYSE:SSD) in the fourth quarter 2023 investor letter. Headquartered in Pleasanton, California, Simpson Manufacturing Co., Inc. (NYSE:SSD) designs, engineers, manufactures, and sells wood and concrete construction products. On February 16, 2024, Simpson Manufacturing Co., Inc. (NYSE:SSD) stock closed at $193.79 per share. One-month return of Simpson Manufacturing Co., Inc. (NYSE:SSD) was 6.29%, and its shares gained 74.41% of their value over the last 52 weeks. Simpson Manufacturing Co., Inc. (NYSE:SSD) has a market capitalization of $8.27 billion.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Simpson Manufacturing Co., Inc. (NYSE:SSD) in its fourth quarter 2023 investor letter:
“Simpson Manufacturing Co., Inc. (NYSE:SSD): SSD designs and manufactures connectors, fasteners, and anchors used in residential and commercial construction. The company’s 3Q results continued to demonstrate its very strong business model. The company slightly exceeded revenue and earnings expectations for 3Q. It also modestly raised operating margin guidance. In addition to the strong fundamental results, the stock certainly benefited from lower interest rates during the quarter, which improved market sentiment for housing-related stocks.”
A worker on a construction site using specialized tools to connect concrete blocks.
Simpson Manufacturing Co., Inc. (NYSE:SSD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Simpson Manufacturing Co., Inc. (NYSE:SSD) was held by 19 hedge fund portfolios, down from 22 in the previous quarter, according to our database.
We discussed Simpson Manufacturing Co., Inc. (NYSE:SSD) in another article and shared the list of lumber stocks to invest in 2023. 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.
