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 Crane NXT, Co. (NYSE:CXT). Crane NXT, Co. (NYSE:CXT) is an industrial technology company. The one-month return Crane NXT, Co. (NYSE:CXT) was -3.24%, and its shares gained 4.79% of their value over the last 52 weeks. On February 10, 2025, Crane NXT, Co. (NYSE:CXT) stock closed at $61.51 per share, with a market capitalization of $3.517 billion.
Conestoga Capital Advisors stated the following regarding Crane NXT, Co. (NYSE:CXT) in its Q4 2024 investor letter:
“Crane NXT, Co. (NYSE:CXT) is a leading provider of trusted technology solutions to secure, detect, and authenticate its customers assets. Crane NXT’s roots go back to 1801 when Zenas Crane founded the Crane Paper Company in Dalton, MA. CXT has numerous technologies and segments that revolve around security and detection. CXT works with over 50 central banks to provide security for their currency and has been the US’s sole supplier of currency paper since 1879. CXT also secures and authenticates consumer goods, passports, and digital content. CXT provides technology and hardware solutions to authenticate payment transactions. Altogether, we believe CXT is a 5- 7% organic revenue growth company with margin expansion that yields double-digit EBTIDA growth.”
Aerial view of automated industrial machines at a modern factory floor, showcasing the company’s innovative machinery.
Crane NXT, Co. (NYSE:CXT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Crane NXT, Co. (NYSE:CXT) at the end of the third quarter which was 23 in the previous quarter. In the third quarter, Crane NXT, Co.’s (NYSE:CXT) total sales increased 14% year-over-year to $400 million. While we acknowledge the potential of Crane NXT, Co. (NYSE:CXT) 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 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.