Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Small Cap Strategy returned -1.89% net of fees, trailing the Russell 2000 Growth Index’s 1.22% return. The returns were volatile in the quarter. The “low quality” stocks rally persisted in the quarter, but at a slower pace compared to earlier quarters. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks like AAON, Inc. (NASDAQ:AAON). AAON, Inc. (NASDAQ:AAON) designs and manufactures high-efficiency air conditioning and heating equipment. On February 18, 2026, AAON, Inc. (NASDAQ:AAON) stock closed at $102.28 per share. One-month return of AAON, Inc. (NASDAQ:AAON) was 5.90%, and its shares are down 7.51% over the past twelve months. AAON, Inc. (NASDAQ:AAON) has a market capitalization of $8.35 billion.
Conestoga Capital Advisors stated the following regarding AAON, Inc. (NASDAQ:AAON) in its fourth quarter 2025 investor letter:
“AAON, Inc. (NASDAQ:AAON) designs and manufactures high-efficiency HVAC systems for commercial and industrial applications. Despite solid 3Q25 results, shares retreated as backward looking industry channel checks highlighted ERP-related delivery delays and extended lead times. With a relatively new CEO still establishing credibility with the Street, execution concerns—even if transitory—weighed on sentiment given the rapid pace of innovation in the data center cooling market. We believe operational improvements are underway and AAON’s strong hyperscaler relationships position the company well for renewed growth.”
AAON, Inc. (NASDAQ:AAON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held AAON, Inc. (NASDAQ:AAON) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the risk and potential of AAON, Inc. (NASDAQ:AAON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAON, Inc. (NASDAQ:AAON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered AAON, Inc. (NASDAQ:AAON) and shared best industrial stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q4 2025 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.
