Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Small Cap Strategy returned -1.89% net-of-fees, trailing the Russell 2000 Growth Index’s 1.22% return. The returns were volatile in the quarter. The “low quality” stocks rally persisted in the quarter, but at a slower pace compared to earlier quarters. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks like RBC Bearings Incorporated (NYSE:RBC). RBC Bearings Incorporated (NYSE:RBC) is an industrial company that focuses on manufacturing and marketing engineered precision bearings, components, and systems. On February 18, 2026, RBC Bearings Incorporated (NYSE:RBC) stock closed at $551.65 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was 9.24%, and its shares are up 49.55% over the past twelve months. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $17.44 billion.
Conestoga Capital Advisors stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its fourth quarter 2025 investor letter:
“RBC Bearings Incorporated (NYSE:RBC) designs and manufactures precision bearings and engineered components for aerospace, defense, and industrial markets. The stock outperformed in 4Q25 as aerospace demand remained resilient, defense orders accelerated, and operating leverage drove margin expansion. Investors reacted positively to strong free-cash flow conversion and continued successful integration of prior acquisitions. RBC’s exposure to long-cycle aerospace programs and mission-critical components supported earnings durability.”
RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the third quarter, up from 26 in the previous quarter. While we acknowledge the risk and potential of RBC Bearings Incorporated (NYSE:RBC) 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 RBC Bearings Incorporated (NYSE:RBC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered RBC Bearings Incorporated (NYSE:RBC) and shared Wasatch Global Investors’ views on the company. In addition, please check out our hedge fund investor letters Q4 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.
