Particle.news
Download on the App Store

Conestoga and Wedgewood Detail Q1 Results and Portfolio Moves in Investor Letters

Managers cite war shocks alongside AI repricing as key drivers of positioning.

Overview

  • The investor letters, published Monday through Wednesday, describe a volatile quarter shaped by Middle East conflict and changing rate expectations.
  • Conestoga said its Small Cap Composite fell 5.01% versus a 2.81% drop for the Russell 2000 Growth because stock picks in technology and health care lagged.
  • The firm detailed moves that include a new Enpro position, exits from Vertex and Hillman, and a focus on Legence, which it calls an AI data‑center bottleneck with a $3.7 billion backlog up 49% year over year.
  • Conestoga also flagged SPS Commerce after management guided 2026 revenue growth to 7%, which it said points to a smaller market and slower sales cycles.
  • Wedgewood pointed to Motorola Solutions as a positive outlier, noting 7% organic growth and double‑digit orders and stressing that land mobile radios let first responders talk radio‑to‑radio when power or cell networks fail.