Conestoga Capital Advisors, an asset administration firm, launched its third-quarter 2025 investor letter. A replica of the letter might be downloaded right here. Fairness markets continued their momentum that started in early April, reaching new all-time highs within the third quarter. Within the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Progress Index’s spectacular 12.2% acquire. A lot of the Index’s good points come from low-quality inventory management, the place unprofitable, high-beta names have significantly outperformed. Please examine the highest 5 holdings of the fund for a greater understanding of their finest picks for 2025.
In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted shares similar to Mercury Techniques, Inc. (NASDAQ:MRCY). Mercury Techniques, Inc. (NASDAQ:MRCY), with a market capitalization of $4.691 billion, is a expertise firm that manufactures and sells parts, merchandise, modules, and subsystems for the aerospace and protection industries. The one-month return of Mercury Techniques, Inc. (NASDAQ:MRCY) was 1.37%, and its shares gained 127.25% of their worth over the past 52 weeks. On October 15, 2025, Mercury Techniques, Inc. (NASDAQ:MRCY) inventory closed at $78.15 per share.
Conestoga Capital Advisors acknowledged the next concerning Mercury Techniques, Inc. (NASDAQ:MRCY) in its third quarter 2025 investor letter:
“Mercury Techniques, Inc. (NASDAQ:MRCY) is a number one designer and producer of superior electronics and subsystems for aerospace and protection purposes. Shares of MRCY traded sharply larger on optimism round protection spending, robust order momentum, and easing provide chain pressures that improved supply and margins. Investor sentiment additionally improved with expectations of accelerating development in safe, mission-critical protection electronics.”
Mercury Techniques, Inc. (NASDAQ:MRCY) isn’t on our checklist of 30 Most Widespread Shares Amongst Hedge Funds. In line with our database, 28 hedge fund portfolios held Mercury Techniques, Inc. (NASDAQ:MRCY) on the finish of the second quarter, up from 23 within the earlier quarter. Within the fiscal fourth quarter of 2025, Mercury Techniques, Inc. (NASDAQ:MRCY) generated income of $273 million, up 9.9% year-over-year. Whereas we acknowledge the potential of Mercury Techniques, Inc. (NASDAQ:MRCY) as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back danger. When you’re searching for an especially undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
