Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. For the second consecutive year, U.S. equity indices ended the year with double-digit returns after generating modest returns in the fourth quarter of 2024. Conestoga’s investment plans were hindered by the enthusiasm for everything artificial intelligence (AI) related, which the firm believes led to a more speculative investing climate. The Conestoga Small Cap Composite surged 1.67% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s 1.70% return. The Conestoga SMid Cap Composite returned -0.68% (net) trailing the Russell 2500 Growth Index’s 2.43% return. The Conestoga Micro Cap Composite advanced 9.91% (net) vs the Russell Microcap Growth Index’s return of 11.55%. Finally, the Conestoga Mid Cap Composite returned -4.63% (net) underperforming the Russell Midcap Growth Index’s 8.14% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
In its fourth quarter 2024 investor letter, Conestoga Capital Advisors emphasized stocks such as Teleflex Incorporated (NYSE:TFX). Teleflex Incorporated (NYSE:TFX) engages in the development and manufacturing of single-use medical devices. The one-month return Teleflex Incorporated (NYSE:TFX) was -4.50%, and its shares lost 30.99% of their value over the last 52 weeks. On February 10, 2025, Teleflex Incorporated (NYSE:TFX) stock closed at $171.46 per share, with a market capitalization of $7.945 billion.
Conestoga Capital Advisors stated the following regarding Teleflex Incorporated (NYSE:TFX) in its Q4 2024 investor letter:
“Based in Wayne, PA, Teleflex Incorporated (NYSE:TFX) reported a mixed quarter with its quarterly results. 3Q24 revenue slightly missed estimates but profitability was slightly better than expected. The company also lowered 2024 sales guidance due to the loss of a customer that is insourcing the manufacture of a component, as well as lower interventional urology (aka UroLift) sales. Over the last several years, TFX has struggled to achieve its long-term growth aspirations. Investors have not seen the benefits of a more diversified medical products company.”
A doctor in their office, consulting with a patient about the benefits of the company’s interventional urology products.
Teleflex Incorporated (NYSE:TFX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Teleflex Incorporated (NYSE:TFX) at the end of the third quarter which was 36 in the previous quarter. Teleflex Incorporated (NYSE:TFX) generated 764.4 million in revenues in the third quarter, up 2.4% year-over-year on a GAAP basis. While we acknowledge the potential of Teleflex Incorporated (NYSE:TFX) 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 Teleflex Incorporated (NYSE:TFX) and shared Piper Sandler’s top technical stock picks and the top stocks. In addition, please check out our hedge fund investor letters Q3 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.