Conestoga Capital Advisors
Conestoga Capital Advisors Small Cap, SMid Cap & Micro Cap Growth Composites
US Micro-cap Growth
Jun 2026 → Jun 2026
Our archive holds 1 letter from this strategy, behind 12 investment theses and positions in 36 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 Jun 30, 2026 · net of fees · USD · Conestoga SMid Cap Equity Composite
Calendar years
- 2025−4.7%index +10.3%
- 2024+11.4%index +13.9%
- 2023+26.6%index +18.9%
- 2022−29.4%index −26.2%
- 2021+16.6%index +5.0%
- 2020+30.9%index +40.5%
- 2019+36.0%index +32.6%
- 2018+0.7%index −7.5%
Disclaimer
These figures are copied from the manager’s latest letter, as of Jun 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 initiated a position based on the company's durable earnings profile, disciplined capital allocation, and strong competitive position in niche markets.
We exited the position after the company reported a decline in 1Q revenue and low visibility for a meaningful recovery.
We initiated a position based on the company's disciplined operating model, attractive free cash flow generation, and consistent track record of capital allocation.
We sold the position after execution challenges, weaker life sciences funding, and continued softness in capital equipment demand led management to lower its full- year outlook.
We exited the position as we became more selective within the software sector, favoring businesses with greater upside potential and fewer structural headwinds (reduced auto claims frequency).
We sold the position as labor cost pressures, reimbursement uncertainty, and slower margin expansion tempered our long-term return expectations despite continued solid demand for rehabilitation services.
We exited the position after the company completed several strategic acquisitions that expanded its addressable market but also increased integration and execution risk.
We sold the position following a period of exceptional share price appreciation as the company continued to execute well and investor enthusiasm surrounding its defense, AI, and satellite services opportunities drove a significant expansion in valuation.
We were attracted to the company's accelerating market share gains, expanding margins, and exposure to long-term electrification and AI-driven infrastructure investment.
We initiated a position based on the company's low-cost operating model, disciplined capital allocation, and ability to consistently grow free cash flow across commodity cycles.
We exited the position as increasing geopolitical uncertainty in the Middle East, project timing delays, and the withdrawal of full-year guidance reduced near-term earnings visibility.
We sold the position following the company's acquisition by Thoma Bravo, which successfully monetized our investment thesis and provided an attractive exit.
We exited the position as we became more selective within the software sector, despite the company's continued operational execution.
We believe the company is well positioned to benefit from increasing natural gas demand driven by LNG exports, electric power generation, and data center development.
Also held
Its investment theses
- Tyler Technologies, Inc.Jun 2026Tyler Technologies, Inc. provides mission-critical government software, and the thesis is supported by deep domain expertise, recurring revenue, and strong competitive advantages.
- Forgent Power Solutions, Inc.Jun 2026Forgent Power Solutions, Inc. designs electrical equipment and power solutions, and the thesis is driven by AI/electrification tailwinds, margin expansion, and market share gains.
- DT Midstream, Inc.Jun 2026DT Midstream, Inc. owns natural gas pipelines and storage assets, and the thesis is built on LNG, power, and data-center demand plus contracted growth visibility.
- Park Aerospace Corp.Jun 2026Park Aerospace Corp. makes advanced composite materials for aerospace and defense, and the thesis is supported by missile-defense exposure and durable earnings growth.
- Perimeter Solutions, Inc.Jun 2026Perimeter Solutions, Inc. provides mission-critical fire safety and specialty chemical solutions, and the thesis is built on durable earnings, niche-market strength, and predictable cash flow.
- NPK International, Inc.Jun 2026NPK International, Inc. provides composite matting and infrastructure solutions, and the thesis is based on consistent execution, rental growth, and infrastructure tailwinds.
- nCino, Inc.Jun 2026nCino, Inc. provides cloud-based banking software, and the thesis is driven by AI-enabled adoption, mission-critical workflows, and long-term growth potential.
- Kodiak Gas Services, Inc.Jun 2026Kodiak Gas Services, Inc. provides natural gas compression and distributed power solutions, and the thesis is supported by LNG/data-center tailwinds, long-term contracts, and cash flow growth.
- Matador Resources Co.Jun 2026Matador Resources Co. is an oil and gas producer, and the thesis relies on disciplined capital allocation, production growth, and balance-sheet strength across commodity cycles.
- Permian Resources Corp.Jun 2026Permian Resources Corp. is an oil and gas producer, and the thesis is supported by a low-cost model, disciplined capital allocation, and free cash flow growth.