Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Micro Cap Composite declined -1.53% net of fees in the second quarter, compared to the Russell Microcap Growth Index’s 6.35% return. Despite eight of the eleven sectors adding value to relative performance, negative stock selection effects in the Industrials, Health Care, and Technology sectors proved too much to overcome. The portfolio was also hindered by stylistic headwinds. Positive sector allocation effects contributed modestly to performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Micro Cap Strategy highlighted stocks like Digi International Inc. (NASDAQ:DGII) in the second 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 August 9, 2023, Digi International Inc. (NASDAQ:DGII) stock closed at $31.01 per share. One-month return of Digi International Inc. (NASDAQ:DGII) was -25.49%, and its shares lost 7.04% of their value over the last 52 weeks. Digi International Inc. (NASDAQ:DGII) has a market capitalization of $1.112 billion.
Conestoga Micro Cap Strategy made the following comment about Digi International Inc. (NASDAQ:DGII) in its second quarter 2023 investor letter:
“Digi International Inc. (NASDAQ:DGII): DGII provides mission-critical Internet of Things connectivity products, services, and solutions. DGII beat expectations for revenue and earnings for the quarter ending March 31, 2023. For fiscal 2023 (September), management now expects revenue growth of 12%, above their previous guidance for 10% growth. The company has also experienced growth in their Annual Recurring Revenue (ARR) and expects ARR and adjusted EBITDA to grow faster than revenue.”
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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 which was 21 in the previous quarter.
We discussed Digi International Inc. (NASDAQ:DGII) in another article and shared the list of oversold growth stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
