Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Despite growing by 12.70% net of fees in the fourth quarter, the strategy was unable to match the 15.64% return of the Russell Micro Cap Growth Index. Underperformance was mostly caused by poor stock selection in the Health Care and Industrials. Micro Cap Composite declined -1.02% net-of-fees, trailing the Russell Micro Cap Growth Index’s gain of 9.11% for 2023. Positive effects on sector allocation and stock selection in the technology and basic materials sectors did help the portfolio. The majority of the underperformance was mostly centered in the consumer discretionary, health care, and industrial sectors, where choosing stocks proved to be difficult. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Capital Advisors Micro Cap Strategy featured stocks such as Olo Inc. (NYSE:OLO) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Olo Inc. (NYSE:OLO) offers a SaaS platform for restaurants. On February 16, 2024, Olo Inc. (NYSE:OLO) stock closed at $5.92 per share. One-month return of Olo Inc. (NYSE:OLO) was 17.00%, and its shares lost 27.27% of their value over the last 52 weeks. Olo Inc. (NYSE:OLO) has a market capitalization of $971.94 million.
Conestoga Capital Advisors Micro Cap Strategy stated the following regarding Olo Inc. (NYSE:OLO) in its fourth quarter 2023 investor letter:
“Olo Inc. (NYSE:OLO): OLO is a SaaS technology platform that enables its greater than 600 restaurant brand customers to reach their customers across over 77,000 locations. OLO reported third quarter results ahead of expectations and nudged full year guidance higher, however, they also announced Wingstop would no longer be a customer. Wingstop had 1,800 locations on the OLO platform and contributed nearly 2-3% of revenue. OLO recovered later in the quarter as the company announced Waffle House, operator of 2,000 restaurants, would join the OLO platform and adopt multiple products.”
An executive in a suit presenting a digital commerce platform to a group of financial advisors.
Olo Inc. (NYSE:OLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Olo Inc. (NYSE:OLO) was held by 23 hedge fund portfolios, up from 20 in the previous quarter, according to our database.
We discussed Olo Inc. (NYSE:OLO) in another article and shared Polen Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
