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 Alpha Teknova, Inc. (NASDAQ:TKNO) in the third quarter 2024 investor letter. Alpha Teknova, Inc. (NASDAQ:TKNO) produces critical reagents for the life science market for the research, discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics. The one-month return of Alpha Teknova, Inc. (NASDAQ:TKNO) was 50.00%, and its shares gained 251.61% of their value over the last 52 weeks. On October 22, 2024, Alpha Teknova, Inc. (NASDAQ:TKNO) stock closed at $6.54 per share with a market capitalization of $348.602 million.
Conestoga Capital Advisors stated the following regarding Alpha Teknova, Inc. (NASDAQ:TKNO) in its Q3 2024 investor letter:
“Alpha Teknova, Inc. (NASDAQ:TKNO) is a leading provider of critical reagents that enable the discovery, development, and production of biopharmaceutical products such as drug therapies, novel vaccines, and molecular diagnostics. The company reported a solid quarter and called out an improving biotech funding environment and better customer order activity. Combined with improving investor sentiment, shares rallied considerably to reach 52-week highs. As market conditions improve, TKNO appears poised to capture outsized market share with the recent opening of their GMP facility.”
A Biopharma Scientist at a laboratory bench examining a sample under a microscope.
Alpha Teknova, Inc. (NASDAQ:TKNO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Alpha Teknova, Inc. (NASDAQ:TKNO) at the end of the second quarter which was 8 in the previous quarter. In the second quarter, Alpha Teknova, Inc. (NASDAQ:TKNO) delivered $9.6 million in total revenues, a 17% decrease from Q2 2023. While we acknowledge the potential of Alpha Teknova, Inc. (NASDAQ:TKNO) 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.
Conestoga Capital Advisors shared in its Q2 2024 investor letter that Alpha Teknova, Inc. (NASDAQ:TKNO) is witnessing a positive trend in biotech funding and expecting a stronger second half of 2024.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.