Here’s What Lifted Helios Technologies (HLIO) in Q3

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index’s gains come from low-quality stock leadership, where unprofitable, high-beta names have considerably outperformed. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Helios Technologies, Inc. (NYSE:HLIO). Headquartered in Sarasota, Florida, Helios Technologies, Inc. (NYSE:HLIO) is an industrial technology company that operates in the Hydraulics and Electronics segments. The one-month return of Helios Technologies, Inc. (NYSE:HLIO) was -2.52%, and its shares gained 9.58% of their value over the last 52 weeks. On October 17, 2025, Helios Technologies, Inc. (NYSE:HLIO) stock closed at $52.98 per share, with a market capitalization of $1.756 billion.

Conestoga Capital Advisors stated the following regarding Helios Technologies, Inc. (NYSE:HLIO) in its third quarter 2025 investor letter:

“Helios Technologies, Inc. (NYSE:HLIO) designs and manufactures motion and electronic control solutions for hydraulics and it’s one of the more cyclical names in the portfolio. The company reported 2Q25 results that significantly exceeded “Street” sales and EBITDA estimates. The company also raised EPS guidance from a range of $2.00-$2.40 to $2.30-$2.50. After a difficult multi-year period for HLIO, new CEO Sean Bagan, has improved its go-to market strategy and operational efficiency over the last several quarters. The management team has also started to review its portfolio of businesses and started to sell those assets which do not fit with its long-term strategy. The portfolio optimization review and the improved operational performance have been positively received by the markets.”

Helios Technologies, Inc. (NYSE:HLIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 23 hedge fund portfolios held Helios Technologies, Inc. (NYSE:HLIO) at the end of the second quarter, compared to 15 in the previous quarter.  Helios Technologies, Inc. (NYSE:HLIO) reported sales of $212 million in Q2 2025, surpassing the upper limit of its guidance range. While we acknowledge the risk and potential of Helios Technologies, Inc. (NYSE:HLIO) 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 Helios Technologies, Inc. (NYSE:HLIO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Helios Technologies, Inc. (NYSE:HLIO) and shared The Brown Capital Management Small Company Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.