Summary

• The Conestoga Small Cap Composite returned -5.01% net-of-fees in the first quarter, compared to the Russell 2000 Growth Index's return of -2.81%.
• Market conditions were characterized by a growing disconnect between underlying company fundamentals and stock price behavior, which created a challenging backdrop for relative performance.
• The most significant headwind came from the Technology sector, where software stocks experienced broad-based declines driven by valuation compression and reduced investor appetite for future-oriented earnings streams.
• Stock selection was most positive in the Industrials sector and gains were broad-based with 14 of our 21 holdings providing a boost to results.
• Many of our top performing Industrial holdings benefited from strong backlog and order-driven demand, providing clear near-term earnings visibility.

Small Cap Composite – 1Q26 Performance & Attribution

The Conestoga Small Cap Composite returned -5.01% net-of-fees in the first quarter, compared to the Russell 2000 Growth Index's return of -2.81%. While periods of market weakness have historically been supportive for

30 Followers