Conestoga Capital Advisors, an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.
In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Alpha Teknova, Inc. (NASDAQ:TKNO). 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 Alpha Teknova, Inc. (NASDAQ:TKNO) was 22.16%, and its shares gained 249.21% of their value over the last 52 weeks. On April 29, 2025, Alpha Teknova, Inc. (NASDAQ:TKNO) stock closed at $6.67 per share, with a market capitalization of $356.423 million.
Conestoga Capital Advisors stated the following regarding Alpha Teknova, Inc. (NASDAQ:TKNO) in its Q1 2025 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 strong quarter and provided solid 2025 guidance. That said, shares came under pressure due to increased uncertainty around the U.S. regulatory and funding environment. TKNO is exposed to smaller biopharma customers that are still facing liquidity challenges, but demand is growing from customers who are well capitalized.”
A Biopharma Scientist at a laboratory bench examining a sample under a microscope.
Alpha Teknova, Inc. (NASDAQ:TKNO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Alpha Teknova, Inc. (NASDAQ:TKNO) at the end of the fourth quarter, compared to 12 in the third quarter. Alpha Teknova, Inc. (NASDAQ:TKNO) generated $9.3 million in total revenue, an 18% increase from Q4 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.
In another article, we covered Alpha Teknova, Inc. (NASDAQ:TKNO) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.