Here’s Why Conestoga Capital Advisors Liquidated Omega Flex (OFLX)
Conestoga Capital Advisors, an asset management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. At its September meeting, the Federal Reserve lowered the Federal Funds rate by 50 basis points due to weaker employment growth and moderate inflation. Equity markets welcomed the news, raising optimism for a soft landing in the U.S. economy. On September 26th, the S&P 500 Index achieved a record high, the Russell 2000 Index also moved higher over the quarter but remains roughly 10% below its all-time high. The Conestoga Small Cap Composite surged 10.09% (net) in the third quarter outperforming the Russell 2000 Growth Index’s 8.41% return. The Conestoga SMid Cap Composite returned 12.94% (net) versus the Russell 2500 Growth Index’s 6.99% return. The Conestoga Micro Cap Composite advanced 7.60% (net) but trailed 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%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like Omega Flex, Inc. (NASDAQ:OFLX), in the third quarter 2024 investor letter. Omega Flex, Inc. (NASDAQ:OFLX) is a manufacturer and distributor of flexible metal hoses and accessories. The one-month return of Omega Flex, Inc. (NASDAQ:OFLX) was -2.65%, and its shares lost 32.56% of their value over the last 52 weeks. On October 21, 2024, Omega Flex, Inc. (NASDAQ:OFLX) stock closed at $49.57 per share with a market capitalization of $500.374 million.
Conestoga Capital Advisors stated the following regarding Omega Flex, Inc. (NASDAQ:OFLX) in its Q3 2024 investor letter:
"Omega Flex, Inc. (NASDAQ:OFLX: Originally purchased into the Small Cap Growth strategy in 2019, OFLX was sold as it failed to meet our expectations for growth of its revenues and earnings. OFLX manufactures and sells flexible metal hosing that is used across a range of industries. Importantly, the company has not achieved its goals for penetrating the health care markets. Conestoga trimmed OFLX over the past two quarters and fully removed the stock from client portfolios over the third quarter."
A technician in a lab coat troubleshooting a complex corrugated medical tubing system.
Omega Flex, Inc. (NASDAQ:OFLX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Omega Flex, Inc. (NASDAQ:OFLX) at the end of the second quarter which was 5 in the previous quarter. While we acknowledge the potential of Omega Flex, Inc. (NASDAQ:OFLX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Omega Flex, Inc. (NASDAQ:OFLX) and shared the list of oversold dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.