TSLA - Conestoga Capital Advisors Q1 2024 Commentary
2024-05-26 12:20:00 ET
Summary
- Conestoga Capital Advisors LLC is a boutique, independent investment advisory firm specializing in the management of Micro, Small, SMid and Mid Cap Growth equities. Conestoga Capital Advisors utilizes a fundamental, bottom-up research process and employs a fully invested, long-term investment approach.
- Major asset classes, including large cap stocks, small cap stocks, international and emerging markets equities, and commodities, moved higher in Q1 2024.
- Investor optimism is driven by the underlying U.S. economy, which is headed for a softer landing and moderating inflation.
- Conestoga's investment strategies in small cap, SMID cap, micro cap, and mid cap stocks had mixed performance, with some sectors and stocks outperforming while others lagged.
Market Review
It was a great quarter to be an investor as many major asset classes continued to move higher during the first quarter of 2024. Large cap stocks as measured by the S&P 500 Index ( SP500 , SPX ) reached an all-time high on March 28th, while small cap stocks as measured by the Russell 2000 Index ( RTY ) moved to within 10% of their peak levels. International and emerging markets equities also moved higher. Investors' enthusiasm was not limited to equities, as many commodities moved higher, and Bitcoin also reached an all-time high. In such an ebullient environment, it is not surprising that bonds traded modestly lower and yields moved higher.
Investor optimism is grounded on the underlying U.S. economy, which appears to be headed for a softer landing, and moderating inflation. The labor market has remained strong and higher interest rates have not over cooled economic output. Inflation is still running above the Federal Reserve's 2% target and Fed officials have cautioned that interest rates may stay higher for longer. Despite this, investors appear willing to take an optimistic outlook.
Performance (total net returns as of 3/31/24)
| 1Q24 |
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
| Since Inception 12/31/1998 |
| Conestoga Small Cap Composite ('Net') |
| 3.69% |
| 12.63% |
| 1.17% |
| 9.31% |
| 10.89% |
| 11.42% |
| Russell 2000 Growth Index |
| 7.58% |
| 20.35% |
| -2.68% |
| 7.38% |
| 7.89% |
| 6.99% |
| 1Q24 |
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
| Since 1/31/2017 |
| Conestoga SMID Cap Composite ('Net') |
| 4.29% |
| 20.04% |
| 2.07% |
| 10.52% |
| 14.16% |
| Russell 2500 Growth Index |
| 8.51% |
| 21.12% |
| -0.81% |
| 9.39% |
| 10.89% |
| 1Q24 |
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
| Since Inception 12/31/2019 |
| Conestoga Micro Cap Composite ('Net') |
| 4.93% |
| 0.92% |
| -9.76% |
| 8.12% |
| Russell Microcap Growth Index |
| 6.60% |
| 15.43% |
| -10.99% |
| 3.45% |
| 1Q24 |
| 1 Year |
| 3 Years |
| 5 Years |
| 10 Years |
| Since Inception 3/31/2010 |
| Conestoga Mid Cap Composite ('Net') |
| 5.44% |
| 17.49% |
| 3.14% |
| 9.52% |
| 10.67% |
| 12.02% |
| Russell Mid Cap Growth Index |
| 9.50% |
| 26.28% |
| 4.62% |
| 11.82% |
| 11.35% |
| 12.84% |
| *Periods longer than One Year are Annualized. Please see additional important disclosures in the fully compliant GIPS presentations at the end of this commentary. Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Russell 2500 Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. Russell Micro Cap Growth Index measures the performance of those Russell Micro Cap companies with higher price-to-book ratios and higher forecasted growth values. Russell Mid Cap Growth Index measures the performance of those Russell Mid Cap companies with higher price-to-book ratios and higher forecasted growth values. |