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 Federal Signal Corporation (NYSE:FSS) in the second quarter 2023 investor letter. Headquartered in Redmond, Washington, Federal Signal Corporation (NYSE:FSS) designs and manufactures products and integrated solutions for municipal, governmental, industrial, and commercial customers. On August 8, 2023, Federal Signal Corporation (NYSE:FSS) stock closed at $59.87 per share. One-month return of Federal Signal Corporation (NYSE:FSS) was -6.20%, and its shares gained 46.13% of their value over the last 52 weeks. Federal Signal Corporation (NYSE:FSS) has a market capitalization of $3.645 billion.
Conestoga Small Cap Strategy made the following comment about Federal Signal Corporation (NYSE:FSS) in its second quarter 2023 investor letter:
“Federal Signal Corporation (NYSE:FSS): Founded in 1901, FSS is a leading manufacturer of specialized vehicles for maintenance and infrastructure markets (street sweeping, sewer cleaning, hydro-excavation, dump trucks, etc.) as well as safety and security systems (outdoor warning sirens, emergency vehicle lighting, etc.) We are attracted to FSS’s leading market share in attractive and diversified end markets (municipal, publicly funded industrial, etc.) In the nearly eight years since Jennifer Sherman took over as CEO, the company has restructured the product portfolio for higher growth, margins, and cash flow. We believe these strategic initiatives position FSS for robust long-term shareholder returns.”
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Federal Signal Corporation (NYSE:FSS) holds the first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Federal Signal Corporation (NYSE:FSS) at the end of first quarter which was 14 in the previous quarter.
We discussed Federal Signal Corporation (NYSE:FSS) in another article and shared the list of best strong buy stocks to invest in. 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.
