Conestoga Capital Advisors, an asset management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The letter reports a positive market shift towards Small Caps, with the Russell 2000 Index achieving its best first half since 1991 and the Russell 2000 Growth Index up 25.7% in Q2, fueled by AI enthusiasm and semiconductor stocks. However, market leadership was uneven, with high-beta stocks outperforming while quality companies lagged, affecting Conestoga’s strategies. Management is confident that speculative leadership won’t endure as monetary policy tightens and expects high-quality growth businesses to regain prominence as market leadership broadens. The Conestoga SMid Cap Composite returned 7.04% (net) in the second quarter, underperforming the Russell 2500 Growth Index, which returned 24.02%. A combination of factor and sector-specific headwinds drove the underperformance, along with stock selection challenges, particularly within Technology and Industrials. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Conestoga Capital Advisors highlighted Permian Resources Corporation (NYSE:PR). Headquartered in Midland, Texas, Permian Resources Corporation (NYSE:PR), an independent oil and natural gas company, was added to the firm’s SMid Cap Composite this quarter. On August 06, 2026, Permian Resources Corporation (NYSE:PR) closed at $20.28 per share. The one-month return of Permian Resources Corporation (NYSE:PR) was 5.90%, and its shares gained 52.94% over the past 52 weeks. Permian Resources Corporation (NYSE:PR) has a market capitalization of $16.98 billion.
Conestoga Capital Advisors stated the following regarding Permian Resources Corporation (NYSE:PR) in its Q2 2026 investor letter:
“Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas producer focused on the Delaware Basin. We initiated a position based on the company’s low-cost operating model, disciplined capital allocation, and ability to consistently grow free cash flow across commodity cycles. Continued operational efficiencies, investment-grade balance sheet strength, and a deep inventory of high-return drilling opportunities provide flexibility to create long-term shareholder value.”
Permian Resources Corporation (NYSE:PR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 56 hedge fund portfolios held Permian Resources Corporation (NYSE:PR) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Permian Resources Corporation (NYSE:PR) 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 Permian Resources Corporation (NYSE:PR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Permian Resources Corporation (NYSE:PR) and shared a list of wonderful stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
