Conestoga Capital Reports 14.32% Second Quarter Return

Conestoga Capital Advisors reported a 14.32% net-of-fees return for its Small Cap Composite in its second-quarter 2026 investor letter. The firm noted that its quality-focused strategies lagged behind the Russell 2000 Growth Index, which rose 25.7% during the period due to the performance of semiconductor and AI stocks.

In the letter, the asset manager highlighted FirstService Corporation, a Canadian real estate services company. Conestoga observed that FirstService stock weakened because of cyclical softness in its roofing segment and higher interest rates. Despite these headwinds, the firm stated that the company's acquisition strategy and market-leading positions provide a long-term runway for growth.

As of August 5, 2026, FirstService Corporation held a market capitalization of $6.35 billion, with shares closing at $144.67.