Conestoga Capital Advisors Mid Cap Strategy’s Q2 2025 Investor Letter

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index’s 18.20% return. After a strong first quarter in 2025, investor enthusiasm shifted towards high-beta and AI stocks following the “Liberation Day” announcements, creating a narrow leadership group that posed challenges for the Mid Cap Strategy in the second quarter. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

A copy of Conestoga Capital Advisors’ Q2 2025 investor letter can be downloaded here.