Conestoga Capital Advisors , an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here . Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.
In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Olo Inc. (NYSE: OLO ) . Headquartered in New York, New York, Olo Inc. (NYSE:OLO) offers a SaaS platform for restaurants. The one-month return Olo Inc. (NYSE:OLO) was 1.94%, and its shares gained 28.25% of their value over the last 52 weeks. On April 29, 2025, Olo Inc. (NYSE:OLO) stock closed at $6.31 per share with a market capitalization of $1.05 billion.
Conestoga Capital Advisors stated the following regarding Olo Inc. (NYSE:OLO) in its Q1 2025 investor letter:
OLO is a SaaS technology platform that enables its greater than 700 restaurant brand customers to reach their customers across over 85,000 locations. After appreciating 55% in the fourth quarter, shares pulled back despite a very strong fourth quarter earnings report. The company beat across all metrics and announced a partnership with payment gateway provider FreedomPay that should materially accelerate their penetration in card-present payments. OLO also introduced 2025 revenue and operating profit guidance ahead of the street.
A business executive showcasing a mobile ordering app to a busy restaurant staff.
Olo Inc. (NYSE:OLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds . As per our database, 30 hedge fund portfolios held Olo Inc. (NYSE:OLO) at the end of the fourth quarter, compared to 19 in the third quarter. While we acknowledge the potential of Olo Inc. (NYSE:OLO) 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 covered Olo Inc. (NYSE:OLO) and shared the list of best rides sharing and food delivery stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks .
Disclosure: None. This article is originally published at Insider Monkey .