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Conestoga Capital Advisors Small Cap Strategy’s Q2 2026 Investor Letter

Conestoga Capital Advisors, an asset management company, released its second-quarter 2026 investor letter. The letter reports a positive market shift towards Small Caps, with the Russell 2000 Index achieving its best first half since 1991 and the Russell 2000 Growth Index up 25.7% in Q2, fueled by AI enthusiasm and semiconductor stocks. However, market leadership was uneven, mirroring the Tech Bubble, as high-beta stocks outperformed while high-quality companies lagged, impacting Conestoga’s quality-focused strategies. Management expressed confidence in long-term outcomes, noting that...