Conestoga Capital Advisors, an asset management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The first quarter of 2026 began with optimism about the domestic economy and attractive Small Cap valuations, but was impacted by volatility from Middle East geopolitical unrest and changing interest rate expectations. This unrest drove energy prices up and created cautious global markets. Energy, Basic Materials, and Industrials performed well, while software companies faced challenges due to AI disruption concerns. Market sensitivity to geopolitical events, energy prices, and inflation remains high. The Conestoga Small Cap Composite fell 5.01%, underperforming the Russell 2000 Growth’s -2.81% return. The decline was driven by negative stock selection and headwinds in Technology and Health Care, with sector allocation benefits insufficient to offset losses. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Conestoga Capital Advisors highlighted stocks like Repligen Corporation (NASDAQ:RGEN). Repligen Corporation (NASDAQ:RGEN) is a life science company that develops and distributes bioprocessing technologies and systems. On April 24, 2026, Repligen Corporation (NASDAQ:RGEN) closed at $117.60 per share. One-month return of Repligen Corporation (NASDAQ:RGEN) was 6.63%, and its shares lost 18.12% over the past 52 weeks. Repligen Corporation (NASDAQ:RGEN) has a market capitalization of $6.63 billion.
Conestoga Capital Advisors stated the following regarding Repligen Corporation (NASDAQ:RGEN) in its Q1 2026 investor letter:
“Repligen Corporation (NASDAQ:RGEN) develops bioprocessing technologies used in the production of biologic drugs. Despite a solid quarter, the stock underperformed as investors focused on a more measured outlook and lingering concerns around end market demand. While the company delivered 14% organic growth, guidance for 2026 called for a more moderate growth range and incorporated headwinds in gene therapy. The combination of strong recent performance but tempered forward expectations led to a more cautious investor response.”
Repligen Corporation (NASDAQ:RGEN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held Repligen Corporation (NASDAQ:RGEN) at the end of the fourth quarter, compared to 53 in the previous quarter. In Q4 2025, Repligen Corporation (NASDAQ:RGEN) reported revenue of $198 million, marking an increase of 18% year over year. While we acknowledge the risk and potential of Repligen Corporation (NASDAQ:RGEN) 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 Repligen Corporation (NASDAQ:RGEN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Repligen Corporation (NASDAQ:RGEN) and shared Alger Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
