Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 12.26% net of fees in the first quarter, compared to the Russell 2000 Growth Index’s 6.07% return. In addition to positive stock selection, rebound by many of the higher-growth stocks, which detracted in 2022, and an underweight exposure to the weakest performing sectors of the Index benefitted the strategy in Q1. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like Q2 Holdings, Inc. (NYSE:QTWO) in the first quarter 2023 investor letter. Headquartered in Austin, Texas, Q2 Holdings, Inc. (NYSE:QTWO) is a cloud-based digital solutions provider for financial institutions. On May 24, 2023, Q2 Holdings, Inc. (NYSE:QTWO) stock closed at $27.70 per share. One-month return of Q2 Holdings, Inc. (NYSE:QTWO) was 11.83%, and its shares lost 46.92% of their value over the last 52 weeks. Q2 Holdings, Inc. (NYSE:QTWO) has a market capitalization of $1.612 billion.
Conestoga Small Cap Strategy made the following comment about Q2 Holdings, Inc. (NYSE:QTWO) in its Q1 2023 investor letter:
“Q2 Holdings, Inc. (NYSE:QTWO): QTWO, a provider of cloud-based digital banking solutions, reported quarterly results that missed expectations. The less-than-expected results were primarily a function of the termination of a customer relationship which adversely impacted revenue by $3.1 million and EBITDA by $3.9 million. On a positive note, QTWO’s ARR grew 14% driven by subscription demand. QTWO’s stock was also weak with the collapse of SVB Financial Group and Signature Bank. While QTWO did not have any direct exposure to either bank, investors’ concerns that the collapse of these two banks could cause a significant reduction or pause in spending in the banking industry, dragged QTWO’s share price lower.”
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Q2 Holdings, Inc. (NYSE:QTWO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Q2 Holdings, Inc. (NYSE:QTWO) at the end of the first quarter 2023 which was 21 in the previous quarter.
We discussed Q2 Holdings, Inc. (NYSE:QTWO) in another article and shared Wasatch Small Cap Core Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
