Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Conestoga Small Cap Composite returned 3.69% in the first quarter compared to 7.58% for the Russell 2000 Growth Index. The market continued to rise in the first quarter as many major asset classes delivered positive returns. Lack of holdings in Super Micro Computer Inc. (SMCI) and MicroStrategy Inc. (MSTR), the largest names in the benchmark, was the major reason for the underperformance of the portfolio relative to the index. In addition, stock selection in the technology sector, especially within the software industry proved challenging. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors Small Cap Strategy highlighted stocks like Fox Factory Holding Corp. (NASDAQ:FOXF), in the first quarter 2024 investor letter. Fox Factory Holding Corp. (NASDAQ:FOXF), with a market capitalization of $1.92 billion, designs, engineers, manufactures, and markets performance-defining products and systems. One-month return of Fox Factory Holding Corp. (NASDAQ:FOXF) was 13.53%, and its shares lost 51.68% of their value over the last 52 weeks. On May 20, 2024, Fox Factory Holding Corp. (NASDAQ:FOXF) stock closed at $46.14 per share.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Fox Factory Holding Corp. (NASDAQ:FOXF) in its first quarter 2024 investor letter:
“Fox Factory Holding Corp. (NASDAQ:FOXF): FOXF designs and manufacturers suspension products for high-end bicycles and a variety of powered vehicles selling to OEMs and the aftermarket. The stock declined after the company reported earnings with 2024 guidance significantly below expectations. The biking segment continues to be under pressure as excess inventory among manufacturers is worked down, and there are lingering concerns about FOXF’s acquisition of Marucci Sports in late 2023.”
A cyclist in full gear on their mountain bike, the Performance Cycling Components visible.
Fox Factory Holding Corp.’s (NASDAQ:FOXF) trailing 12 months revenue is $1.4 billion and year over year quarterly revenue growth rate is -16.60%. The recent earnings call stated that Fox Factory Holding Corp.’s (NASDAQ:FOXF) delivered $333.5 million of revenue in the first quarter, which is consistent with the expectations.
Fox Factory Holding Corp. (NASDAQ:FOXF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Fox Factory Holding Corp. (NASDAQ:FOXF) at the end of the fourth quarter which was 14 in the previous quarter.
In another article, we discussed Fox Factory Holding Corp. (NASDAQ:FOXF) and shared Meridian Funds’ views on the company. In addition, please check out our hedge fund investor letters Q1 2024 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.
