Conestoga Small Cap Composite Q2 2025 Commentary

2025-07-23 11:00:00 ET

Performance & Attribution

The Conestoga Small Cap Composite returned 4.76% net-of-fees in the second quarter, underperforming the Russell 2000 Growth Index's return of 11.97%. The strategy began the quarter by building a significant advantage relative to the benchmark during the tariff-induced decline that began in mid-March. In the market rally that began April 8th following the announcement of delayed implementation of tariffs, lower-quality and higher beta stocks drove the market's return, and the Small Cap Composite was unable to keep pace. Over the full quarter, loss-making stocks in the Russell 2000 Growth rose 13.1% while profitable companies rose 6.8%. While frustrating, we have experienced periods like this in the past, and we continue to emphasize profitable companies in our clients' portfolios....

Read the full article on Seeking Alpha

For further details see: