Conestoga Capital Advisors, an asset management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. At its September meeting, the Federal Reserve lowered the Federal Funds rate by 50 basis points due to weaker employment growth and moderate inflation. Equity markets welcomed the news, raising optimism for a soft landing in the U.S. economy. On September 26th, the S&P 500 Index achieved a record high, the Russell 2000 Index also moved higher over the quarter but remains roughly 10% below its all-time high. The Conestoga Small Cap Composite surged 10.09% (net) in the third quarter outperforming the Russell 2000 Growth Index’s 8.41% return. The Conestoga SMid Cap Composite returned 12.94% (net) versus the Russell 2500 Growth Index’s 6.99% return. The Conestoga Micro Cap Composite advanced 7.60% (net) but trailed the Russell Microcap Growth Index’s return of 8.57%. Finally, the Conestoga Mid Cap Composite returned 8.36% (net) outperforming the Russell Midcap Growth Index’s 6.54%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like Fox Factory Holding Corp. (NASDAQ:FOXF), in the third quarter 2024 investor letter. Fox Factory Holding Corp. (NASDAQ:FOXF) designs, engineers, manufactures, and markets performance-defining products and systems. The one-month return of Fox Factory Holding Corp. (NASDAQ:FOXF) was -11.24%, and its shares lost 54.73% of their value over the last 52 weeks. On October 21, 2024, Fox Factory Holding Corp. (NASDAQ:FOXF) stock closed at $38.79 per share with a market capitalization of $1.617 billion.
Conestoga Capital Advisors stated the following regarding Fox Factory Holding Corp. (NASDAQ:FOXF) in its Q3 2024 investor letter:
“Fox Factory Holding Corp. (NASDAQ:FOXF) designs and manufacturers suspension products for high-end bicycles and a variety of powered vehicles, selling to both OEMs and the aftermarket. Both the biking and powered vehicles segments have been under pressure as consumer demand has softened and excess inventory among manufacturers is reduced. In the third quarter, FOXF reported earnings that were below expectations and lowered their guidance for full-year earnings.”
A cyclist in full gear on their mountain bike, the Performance Cycling Components visible.
Fox Factory Holding Corp. (NASDAQ:FOXF) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Fox Factory Holding Corp. (NASDAQ:FOXF) at the end of the second quarter which was 23 in the previous quarter. In the second quarter, Fox Factory Holding Corp. (NASDAQ:FOXF) delivered $348.5 million of revenue, a sequential increase of 4.5%. While we acknowledge the potential of Fox Factory Holding Corp. (NASDAQ:FOXF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Fox Factory Holding Corp. (NASDAQ:FOXF) and shared Baron Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 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.