Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 4.93% net-of-fees in the second quarter, compared to the Russell 2000 Growth Index’s 7.05% return. The key source of underperformance was poor stock selection, with allocation effects providing little benefit. The underperformance was mostly concentrated in the Industrials sector with minor declines in the Technology and Basic Materials sectors. Gains in the Consumer Discretionary and Utilities sectors partially offset these losses. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like Axon Enterprise, Inc. (NASDAQ:AXON) in the second quarter 2023 investor letter. Headquartered in Scottsdale, Arizona, Axon Enterprise, Inc. (NASDAQ:AXON) is a conducted energy devices manufacturer that operates through Software and Sensors, and TASER. On August 8, 2023, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $175.73 per share. One-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -10.29%, and its shares gained 39.39% of their value over the last 52 weeks. Axon Enterprise, Inc. (NASDAQ:AXON) has a market capitalization of $12.984 billion.
Conestoga Small Cap Strategy made the following comment about Axon Enterprise, Inc. (NASDAQ:AXON) in its second quarter 2023 investor letter:
“Axon Enterprise, Inc. (NASDAQ:AXON)’s fundamentals remain robust but suffered from profit taking in the second quarter after strong performance from the stock over the last year. AXON is a public safety technology company and has been a portfolio leader in each of the three prior quarters. AXON’s fundamentals remain robust, with revenue growth of 34% in their most recently reported quarter. AXON is seeing robust growth internationally and in their Fleet product line, and the new Taser 10 is seeing the strongest initial demand in their history.”
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of first quarter which was 38 in the previous quarter.
We discussed Axon Enterprise, Inc. (NASDAQ:AXON) in another article and shared Conestoga Small Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
