Conestoga Capital Advisors Micro Cap Strategy’s Q3 2026 Investor Letter

Conestoga Capital Advisors released its third-quarter 2026 investor letter, outlining a shifting macroeconomic backdrop for small-cap equities. After a strong start to 2026, 3Q26 headwinds—including elevated oil prices, persistent inflation, and a September Fed rate hike—drove a 9.4% quarterly drop in the Russell 2000 Growth Index (vs. +2.3% for the S&P 500). Small caps remain up 10.7% YTD, trailing large caps (+12.7%). As the market pivots toward higher-quality growth, short-term...