Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite returned -6.72% net-of-fees in the third quarter, compared to the Russell 2000 Growth Index’s -7.32% return. The strategy’s outperformance was driven by positive stock selection effects, while sector allocation effects were modestly negative. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Composite highlighted stocks like Digi International Inc. (NASDAQ:DGII) in the third quarter 2023 investor letter. Headquartered in Hopkins, Minnesota, Digi International Inc. (NASDAQ:DGII) is a business and Internet of Things products and services provider. On November 14, 2023, Digi International Inc. (NASDAQ:DGII) stock closed at $23.74 per share. One-month return of Digi International Inc. (NASDAQ:DGII) was -4.43%, and its shares lost 42.60% of their value over the last 52 weeks. Digi International Inc. (NASDAQ:DGII) has a market capitalization of $853.914 million.
Conestoga Small Cap Composite made the following comment about Digi International Inc. (NASDAQ:DGII) in its Q3 2023 investor letter:
“Digi International Inc. (NASDAQ:DGII): DGII provides mission-critical Internet of Things connectivity products, services, and solutions. After reporting their quarterly results, the stock sold off about 15% as comments about lagging deal closures worried investors. DGII announced revenues above consensus estimates and its annual recurring revenue now is over $100 million, a milestone that the company has been targeting for successful completion. We remain optimistic about future growth as management incorporates software into its existing hardware base, which transforms the hardware sales to recurring software revenues.”
A technician in a telecom facility installing wireless routers and operating on a computer.
Digi International Inc. (NASDAQ:DGII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Digi International Inc. (NASDAQ:DGII) at the end of second quarter which was 19 in the previous quarter.
We discussed Digi International Inc. (NASDAQ:DGII) in another article and shared the list of top undervalued technology stocks according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q3 2023 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.
