Conestoga Capital Advisors, an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.
In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Bio-Techne Corporation (NASDAQ:TECH). Bio-Techne Corporation (NASDAQ:TECH), with a market capitalization of $7.846 billion, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets. The one-month return of Bio-Techne Corporation (NASDAQ:TECH) was -9.53%, and its shares lost 34.35% of their value over the last 52 weeks. On May 1, 2025, Bio-Techne Corporation (NASDAQ:TECH) stock closed at $49.63 per share.
Conestoga Capital Advisors stated the following regarding Bio-Techne Corporation (NASDAQ:TECH) in its Q1 2025 investor letter:
“Bio-Techne Corporation (NASDAQ:TECH) makes and distributes biological research supplies used by researchers around the globe. The company reported a strong quarter, with 9% organic revenue growth and a recovery in large pharmaceutical customer orders. That said, shares came under pressure due to increased uncertainty around the U.S. regulatory and funding environment. We believe the noise around the funding environment is a near-term headwind but the long-term demand for new drug development will remain robust.”
A biopharmaceutical researcher proficiently using laboratory instruments.
Bio-Techne Corporation (NASDAQ:TECH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Bio-Techne Corporation (NASDAQ:TECH) at the end of the fourth quarter compared to 25 in the third quarter. In the second quarter of fiscal 2025, the company generated $297 million in revenues, up 9% year-over-year on both reported and organic basis. While we acknowledge the potential of Bio-Techne Corporation (NASDAQ:TECH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered Bio-Techne Corporation (NASDAQ:TECH) and shared Aristotle Atlantic Large Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.