Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 4.93% net-of-fees in the second quarter, compared to the Russell 2000 Growth Index’s 7.05% return. The key source of underperformance was poor stock selection, with allocation effects providing little benefit. The underperformance was mostly concentrated in the Industrials sector with minor declines in the Technology and Basic Materials sectors. Gains in the Consumer Discretionary and Utilities sectors partially offset these losses. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like Simpson Manufacturing Co., Inc. (NYSE:SSD) in the second quarter 2023 investor letter. Headquartered in Pleasanton, California, Simpson Manufacturing Co., Inc. (NYSE:SSD) is a wood and concrete construction products manufacturer. On August 8, 2023, Simpson Manufacturing Co., Inc. (NYSE:SSD) stock closed at $155.59 per share. One-month return of Simpson Manufacturing Co., Inc. (NYSE:SSD) was 10.37%, and its shares gained 53.31% of their value over the last 52 weeks. Simpson Manufacturing Co., Inc. (NYSE:SSD) has a market capitalization of $6.639 billion.
Conestoga Small Cap Strategy made the following comment about Simpson Manufacturing Co., Inc. (NYSE:SSD) in its second 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 reported quarterly revenue and earnings that were both well above consensus estimates. Sales were much better than expected, registering a -7% decline versus expectations of down -15%. These results were particularly strong given that US housing starts were down -18% in 1Q23. While revenues were strong, profit margins were even more impressive. Gross margins were 47.4% in 1Q23, up sequentially from 42.2% in 4Q22. As a result of this strong performance, revenues and earnings estimates were raised substantially and the stock responded positively.”
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Simpson Manufacturing Co., Inc. (NYSE:SSD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Simpson Manufacturing Co., Inc. (NYSE:SSD) at the end of first quarter which was 20 in the previous quarter.
We discussed Simpson Manufacturing Co., Inc. (NYSE:SSD) in another article and shared the list of best land and timber stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
