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 FirstService Corporation (NASDAQ:FSV), in the third quarter 2024 investor letter. FirstService Corporation (NASDAQ:FSV) offers residential property management and other essential property services to residential and commercial customers. The one-month return of FirstService Corporation (NASDAQ:FSV) was 0.38%, and its shares gained 31.32% of their value over the last 52 weeks. On October 21, 2024, FirstService Corporation (NASDAQ:FSV) stock closed at $185.09 per share with a market capitalization of $8.3 billion.
Conestoga Capital Advisors stated the following regarding FirstService Corporation (NASDAQ:FSV) in its Q3 2024 investor letter:
“FirstService Corporation (NASDAQ:FSV) is a North American leader in essential property services. FirstService Residential is the largest manager of residential properties in North America, and the company has been winning market share in this segment through its scale and market density. FirstService Brands is diversified across roofing, restoration, and home brands such as California Closets. While higher interest rates have hurt this segment, FSV has invested both organically and through M&A to consolidate market share. In the second quarter, FSV saw increased revenue and raised full year EBITDA guidance.”
Aerial view of a residential property with visible building maintenance efforts.
FirstService Corporation (NASDAQ:FSV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the second quarter which was 18 in the previous quarter. While we acknowledge the potential of FirstService Corporation (NASDAQ:FSV) 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 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.