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 Digi International Inc. (NASDAQ:DGII) in the first quarter 2023 investor letter. Headquartered in Hopkins, Minnesota, Digi International Inc. (NASDAQ:DGII) is a business and Internet of Things products and services provider. On May 24, 2023, Digi International Inc. (NASDAQ:DGII) stock closed at $34.43 per share. One-month return of Digi International Inc. (NASDAQ:DGII) was 14.80%, and its shares gained 56.79% of their value over the last 52 weeks. Digi International Inc. (NASDAQ:DGII) has a market capitalization of $1.235 billion.
Conestoga Small Cap Strategy made the following comment about Digi International Inc. (NASDAQ:DGII) in its Q1 2023 investor letter:
“Digi International Inc. (NASDAQ:DGII): DGII has been a pioneer None. in wireless communication technology and has over 35,000 customers worldwide and owns more than 160 different patents. The company operates two primary segments: Products & Services and Solutions. The Products & Services division primarily sells hardware to enterprise clients to provide business continuity. The Solutions division offers a full suite of solutions for asset monitoring. The Solutions division revenues are recurring as customers typically sign three to five year subscription contracts and they have been installing its sensors and control hubs in 3000-4,000 new sites per quarter for customers such as CVS, Olive Garden and Tim Hortons. We initially purchased DGII for our Micro Cap portfolio in 1Q20 and have now added it to the Small Cap portfolio in 1Q23.”
Digi International Inc. (NASDAQ:DGII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Digi International Inc. (NASDAQ:DGII) at the end of the first quarter 2023 which was 21 in the previous quarter.
We discussed Digi International Inc. (NASDAQ:DGII) in another article and shared Conestoga Capital Advisors’ 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.
