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 SiteOne Landscape Supply, Inc. (NYSE:SITE) in its Q2 2024 investor letter. SiteOne Landscape Supply, Inc. (NYSE:SITE) is a wholesale distributor of landscape supplies. The one-month return of SiteOne Landscape Supply, Inc. (NYSE:SITE) was -3.03%, and its shares lost 14.88% of their value over the last 52 weeks. On August 13, 2024, SiteOne Landscape Supply, Inc. (NYSE:SITE) stock closed at $135.98 per share with a market capitalization of $6.136 billion.
Conestoga Capital Advisors stated the following regarding SiteOne Landscape Supply, Inc. (NYSE:SITE) in its Q2 2024 investor letter:
“SiteOne Landscape Supply, Inc. (NYSE:SITE): SITE is the largest distributor of supplies for residential and commercial landscape professionals. The stock sold off after weaker than expected pricing and margins in its seasonally soft first quarter. This was followed, however, with a negative business update in early June with slower residential repair and remodel spending.”
SiteOne Landscape Supply, Inc. (NYSE:SITE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held SiteOne Landscape Supply, Inc. (NYSE:SITE) at the end of the first quarter which was 21 in the previous quarter. In the second quarter of 2024, SiteOne Landscape Supply, Inc. (NYSE:SITE) reported a net sales increase of 4% to $1.41 billion (see the details here). While we acknowledge the potential of SiteOne Landscape Supply, Inc. (NYSE:SITE) 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 SiteOne Landscape Supply, Inc. (NYSE:SITE) and shared Baron Small Cap Fund’s views on the company. SiteOne Landscape Supply, Inc. (NYSE:SITE) was in the bottom laggard list of Conestoga Capital Advisors in Q1 2024.In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.