Conestoga Capital Advisors, an asset manager, has released its investor letter for the third quarter of 2024. You can download a copy of the letter here. At its September meeting, the Federal Reserve cut the federal funds rate by 50 basis points due to weaker employment growth and subdued inflation. Stock markets welcomed the news, increasing optimism for a soft landing for the US economy. On September 26, the S&P 500 Index reached an all-time high. The Russell 2000 Index also moved higher this quarter, but remains about 10% below its all-time high. The Conestoga Small Cap Composite rose 10.09% (net) in the third quarter, outperforming the Russell 2000 Growth Index’s 8.41% return. The Conestoga SMid Cap Composite delivered a net return of 12.94%, compared to the Russell 2500 Growth Index’s 6.99% return. The Conestoga Micro Cap Composite rose 7.60% (net), but lagged the Russell Microcap Growth Index’s return of 8.57%. Finally, the Conestoga Mid Cap Composite returned 8.36% (net), outperforming the Russell Midcap Growth Index’s 6.54%. Check out the fund’s top 5 investments for a better understanding of their top picks for 2024.
Conestoga Capital Advisors highlighted stocks like Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter. Guidewire Software, Inc. (NYSE:GWRE) provides a platform for property and casualty (P&C) insurers. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was 6.58%, and the shares have gained 109.81% of their value over the past 52 weeks. On October 21, 2024, shares of Guidewire Software, Inc. closed. (NYSE:GWRE) at $189.04 per share with a market cap of $15.583 billion.
Conestoga Capital Advisors stated the following about Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter:
Guidewire Software, Inc. (NYSE:GWRE): This company is a premier provider of core software solutions for property and casualty insurers. GWRE reported another strong quarter, with subscription revenue growth of 37% and earnings well above consensus estimates. GWRE has continued to realize economies of scale as its business model transitions to cloud software.”
An insurance adjuster who reviews images and paperwork to process a claim.
Guidewire Software, Inc. (NYSE:GWRE) isn’t on our list of the 31 most popular stocks among hedge funds. According to our database, 43 hedge fund portfolios held Guidewire Software, Inc. at the end of the second quarter. (NYSE:GWRE), up from 34 in the previous quarter. Guidewire Software, Inc.’s revenues (NYSE:GWRE) for fiscal 2024 exceeded expectations, reaching $980 million thanks to robust performance across all revenue segments. While we recognize the potential of Guidewire Software, Inc. (NYSE:GWRE) as an investment, our belief lies in the belief that AI stocks hold greater promise for delivering higher returns in a shorter time frame. If you’re looking for an AI stock that’s as promising as NVIDIA, but trades at less than five times earnings, check out our report on the cheapest AI stocks.