4 / 5 Stars
4 4 3 5 5
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
4 / 5 Stars
#7 in Small Growth
U.S. News evaluated 215 Small Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 36.16 percent over the past year, 18.19 percent over the past three years, and 23.49 percent over the past five years.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-4.8%|
|3 Years (Annualized)||18.2%|
|5 Years (Annualized)||23.5%|
|10 Years (Annualized)||10.3%|
Conestoga Small Cap could afford to play better offense.
As of February 05, 2014, the fund has assets totaling almost $761.67 million invested in 51 different holdings. Its portfolio consists primarily of shares of small companies.
Since this fund's launch in late 2002, it has finished all but two calendar years trailing the average for Morningstar's small-growth category. Nonetheless, as of the end of July, the fund's trailing five-year returns beat the average for that same category by two percentage points per year. This paradox of sorts stems largely from the fund's performance in 2008. As most of its peers took a nosedive, this fund managed to contain its losses to under 30 percent. That number, while painful on an absolute scale, is quite impressive on a relative one. While this defensive feat is surely impressive, the fund hasn't yet shown a tendency to stand out during more normal market conditions.
Lately, the fund has been heavily invested in industrials and technology names. As of the end of the second quarter, six of its top 10 holdings were in the tech sector. Some of these picks, including Tyler Technologies and Quality Systems, have boosted performance this year. Overall, management pursues a long-term, buy-and-hold strategy, as evidenced by the fund's 23 percent turnover ratio. The fund has returned 36.16 percent over the past year, 18.19 percent over the past three years, and 23.49 percent over the past five years.
According to the fund's prospectus: "The Adviser generally invests the Fund's assets in small-cap companies with expected earnings growth that exceed that of the average of all U.S. publicly traded companies, where valuations seem reasonable compared to the expected earnings growth, where fundamental financial characteristics appear to be strong, where (in the Adviser's opinion) the business model offers sustainable competitive advantage, and where management has an important ownership stake in the company. The Adviser uses a bottom-up approach in selecting securities."
Role in Portfolio
Morningstar calls the fund a "supporting player."
Robert M. Mitchell and William Martindale manage the fund.
Conestoga Small Cap has an expense ratio of 1.10 percent.
Like all stock funds, this one comes with some risks.