Conestoga Capital Advisors
Conestoga Capital Advisors Small Cap, SMid Cap & Micro Cap Strategies
Sep 2026 → Sep 2026
Our archive holds 1 letter from this strategy, behind 17 investment theses and positions in 37 companies. Every quote below is copied verbatim from the letter it came from.
1 letter in a year · follow all of Conestoga Capital Advisors for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · Small Cap Composite (Net)
- YTD−3.6%index +10.7%
- 1Y−5.4%index +12.1%
- 3Y · /yr+1.8%index +17.6%
- 5Y · /yr−2.5%index +4.7%
- 10Y · /yr+8.3%index +9.9%
- Inception · /yr+10.0%index +7.5%
Index: Russell 2000 Growth Index
| YTD | 1Y | 3Yper year | 5Yper year | 10Yper year | Since inceptionper year | |
|---|---|---|---|---|---|---|
| Conestoga Capital Advisors Small Cap, SMid Cap & Micro Cap Strategies | −3.6% | −5.4% | +1.8% | −2.5% | +8.3% | +10.0% |
| Russell 2000 Growth Index | +10.7% | +12.1% | +17.6% | +4.7% | +9.9% | +7.5% |
Since inception: Since Inception 12/31/1998
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We sold the stock to reduce the portfolio’s exposure to software, which has been a battleground for investors as it’s deemed a potential area of disruption for AI.
We initiated a position because vehicle electrification, driver- assistance systems and other electronic features are increasing chip content per vehicle.
We exited the position after a period of rapid, acquisition driven expansion as the company continued to extend its buy and build strategy.
We were attracted to the company’s increasing exposure to faster-growing markets, including grid infrastructure, electrification and data centers, as well as its growing pipeline of new products.
We believe the company is well positioned to benefit from the persistent need for affordable housing, with manufactured homes offering a compelling alternative to traditional site-built housing.
We exited the position as the company’s growth became increasingly dependent on acquisitions and new business wins, while underlying core growth remained modest.
We initiated a position because its scale and experience help it win complex, mission-critical projects.
This former holding has a new CEO, and the business maintains its high-quality characteristics, including its leading market position, proprietary technology, high barriers to entry, attractive margins, and strong balance sheet.
We exited the position following the company’s agreement to be acquired by Merck KGaA for $73 per share in cash, representing an enterprise value of approximately $11.3 billion.
We exited the position because of persistent enrollment growth challenges at its full-service centers since the Covid pandemic.
We initiated a position because demand is growing for faster data center connections and more advanced defense electronics.
We initiated a position in SEIC, a provider of investment processing, administration, and asset-management solutions.
We initiated a position based on the company’s strong competitive position, durable demand for pawn services and significant opportunity to expand its store base.
Also held
- Rollins, Inc.
- MSA Safety, Inc.
- Merit Medical Systems, Inc.
- AAON, Inc.
- SPX Technologies, Inc.
- Repligen Corp.
- CSW Industrials, Inc.
- Jack Henry & Associates, Inc.
- Q2 Holdings, Inc.
- RBC Bearings, Inc.
- Climb Global Solutions, Inc.
- Graham Corp.
- Twist Bioscience Corp.
- SiteOne Landscape Supply, Inc.
- Descartes Systems Group, Inc.
- Mercury Systems, Inc.
- Stevanato Group SpA
- Universal Technical Institute, Inc.
- Alpha Teknova, Inc.
- Onterris, Inc.
- UL Solutions, Inc.
Its investment theses
- AAON, Inc.Sep 2026AAON, Inc. manufactures highly engineered HVAC equipment and is supported by robust data center demand, market share gains, and margin improvement potential.
- RBC Bearings, Inc.Sep 2026RBC Bearings, Inc. supplies mission-critical components and benefits from record backlog, margin expansion, and strong aerospace and defense demand.
- SPX Technologies, Inc.Sep 2026SPX Technologies, Inc. provides commercial HVAC and detection solutions and is viewed as a long-term earnings compounder.
- UL Solutions, Inc.Sep 2026UL Solutions, Inc. provides testing and certification services and is supported by strong demand, margin expansion, and secular growth drivers.
- Repligen Corp.Sep 2026Repligen Corp. provides biologic drug manufacturing technologies and benefits from improving bioprocessing demand and a higher outlook.
- Stevanato Group SpASep 2026Stevanato Group SpA provides drug containment and delivery solutions and benefits from higher-value products, margin expansion, and capacity growth.
- Guidewire Software, Inc.Sep 2026Guidewire Software, Inc. provides cloud software for insurers and is supported by recurring revenue growth, margin gains, and cloud migration wins.
- Allegro Microsystems, Inc.Sep 2026Allegro Microsystems, Inc. makes sensing and power semiconductors and benefits from rising vehicle chip content and data center demand.
- MACOM Technology Solutions Holdings, Inc.Sep 2026MACOM Technology Solutions Holdings, Inc. designs specialized semiconductors and is supported by strong data center demand and margin upside.
- Sterling Infrastructure, Inc.Sep 2026Sterling Infrastructure, Inc. provides data center construction and electrical services and benefits from scale, backlog, and repeat work.