Conestoga Discovery Fund
Overview
Fund Investment Approach (as of 6/30/24)
CMIRX
CMCMX
Benchmark
Overview
Total Net Assets (as of 6/30/24)
CMIRX
CMCMX
Benchmark
Fund Objective
The Fund seeks to provide long-term growth of capital.
Fund Investment Approach
The Fund strives to generate long-term investment returns favorable to its benchmarks with lower risk. The Fund typically holds 25-40 micro capitalization stocks that the investment team believes are attractively valued relative to their growth prospects. Conestoga seeks companies which we believe have sustainable earnings growth rates, high returns on equity, low debt levels, and capable management teams.
Daily
Performance
Total Returns vs. Benchmark
| 1 Month | 1 Year | 3 Years | 5 Years | Since Inception (11/30/2018) |
|
|---|---|---|---|---|---|
| Conestoga Discovery Fund (CMIRX) | -4.43% | 15.43% | -10.85% | 6.39% | 6.86% |
| Conestoga Discovery Fund (CMCMX) | -4.46% | 15.19% | -11.07% | 6.12% | 6.60% |
| Russell Microcap Growth Index | 0.43% | 26.37% | -8.31% | 6.86% | 4.24% |
| 3 Months | 1 Year | 3 Years | 5 Years | Since Inception (11/30/2018) |
|
|---|---|---|---|---|---|
| Conestoga Discovery Fund (CMIRX) | 7.79% | 15.43% | -10.85% | 6.39% | 6.86% |
| Conestoga Discovery Fund (CMCMX) | 7.69% | 15.19% | -11.07% | 6.12% | 6.60% |
| Russell Microcap Growth Index | 8.56% | 26.37% | -8.31% | 6.86% | 4.24% |
All periods greater than one year are annualized. Performance is based upon closing NAV calculation on listed dates and represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the performance quoted. Performance data includes reinvestment of dividends. Investment returns and principal value of an investment in Conestoga Discovery Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For the Fund’s daily NAV, list of additional holdings, total return as of the most recent month-end and a copy of the Fund’s prospectus, please visit www.conestogacapital.com or call 1-800-494-2755.
Effective April 18, 2023, the Conestoga Micro Cap Fund was renamed the Conestoga Discovery Fund. There is no change to the investment objective, strategies, or investment limitations. The Fund commenced operations as a series of Conestoga Funds on December 17, 2021, when all of the assets of Conestoga Micro Cap Fund, LP (the “Predecessor Fund”) transferred to Institutional Class and Investors Class shares of the Fund. The Fund’s investment objectives, policies, guidelines and restrictions are in all material respects equivalent to those of the Predecessor Fund, and the investment adviser and portfolio managers for the Fund will be the same as those of the Predecessor Fund. Accordingly, the performance information shown for periods prior to December 17, 2021 is that of the Predecessor Fund. The Predecessor Fund was not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and thus was not subject to certain investment and operational restrictions that are imposed by the 1940 Act. If the Predecessor Fund had been registered under the 1940 Act, its performance may have been adversely affected. The Predecessor Fund performance information has been adjusted to reflect the Investors and Institutional Class expenses. Accordingly, future Fund performance may be different than the Predecessor Fund’s restated past performance. After-tax performance returns are not included for the Predecessor Fund. The Predecessor Fund was not a regulated investment company under Subchapter M of the Internal Revenue Code and therefore did not distribute current or accumulated earnings and profits and was not subject to the diversification and source of income requirements applicable to regulated investment companies. Monthly returns since the inception of the Predecessor Fund are provided in Appendix A of the Statutory Prospectus. Russell Micro Cap Growth Index measures the performance of those Russell Micro Cap companies with higher price-to-book ratios and higher forecasted growth values. An individual cannot invest directly in an index.
Portfolio
Sector Weightings
Sectors are defined according to the ICB industry classifications.
Top Ten Equity Holdings
Top Ten Equity Holdings presented as a percent of the Fund’s assets. The security holdings are presented to illustrate examples of the securities that the Fund has bought and the diversity of areas in which the Fund may invest, and may not be representative of the Fund’s current or future investments. Portfolio holdings are subject to change and should not be considered to be investment advice. Current and future holdings are subject to risk.
Fund Facts
| CMIRX CMCMX |
Russell Microcap Growth Index | |
| Weighted Avg. Market Cap. | $1,182.3 Mil | $1,106.4 Mil |
| Revenue Growth (3 Yr. CAGR Median) | 26.3% | 13.9% |
| Earnings Growth (3-5 Yr. Est.) | 15.6% | 16.2% |
| Gross Margin (LTM) Median | 45.5% | 36.1% |
| Operating Margin (LTM) Median | 1.9% | 4.2% |
| Return on Equity (5 Yr. Median) | 3.3% | 1.4% |
| LT Debt/Capital (Wtd. Avg.) | 24.3% | 28.4% |
| Insider Ownership (Wtd. Avg.) | 12.4% | 17.7% |
| NTM P/E (excl. negatives) | 22.2x | 16.2x |
| NTM PEG Ratio | 1.43 | 1.00 |
Wtd. Avg. is a calculation that takes into account the varying degrees of importance of the numbers in a data set. In calculating a weighted average, each number in the data set is multiplied by a predetermined weight before the final calculation is made. Wtd. Avg. Market Cap. is determined by multiplying the current market price by the number of outstanding shares and then taking an average to determine weighting. Revenue Growth (3 Yr. CAGR Median), “3 Year Compound Annual Average Growth Rate”, measures the growth rate in revenue over the 3 yr. period. Earnings Growth (3-5 Yr. Est.) is the forecasted earnings over the next 3-5 years. LTM is last 12 months. Median is average. Gross Margin is Revenue minus cost. A company’s Operating Margin is the percent of revenue it retains after operating expenses. Return on equity (ROE) is a profitability ratio that measures the ability of a firm to generate profits from its shareholders investments in the company. Long-Term Debt/Capital is a measure of how much debt a company is using to finance its operations and is determined by dividing long-term debt by total capitalization. Insider Ownership is calculated as the total number of shares owned by insiders. NTM is next 12 months. P/E is the ratio of a stock’s price to forecasted earnings over the next year. PEG Ratio represents the ratio of P/E over Earnings Growth rate and is a widely used valuation metric. Forecasted data is sourced from FactSet Research Systems and represents the average of sell-side analyst forecasts.
Annual Fund Operating Expenses
| CMIRX | CMCMX | |
| Management Fees | 1.00% | 1.00% |
| Distirbution (12b-1) Fees | 0.00% | 0.25% |
| Other Expenses | 10.38% | 21.95% |
| Service Fees1 | 0.10% | 0.25% |
| Other Operating Expenses | 10.28% | 21.70% |
| Total Annual Fund Operating Expenses | 11.38% | 23.20% |
| Expense Limitation | -10.13% | -21.70% |
| Total Net Operating Expenses | 1.25% | 1.50% |
These are expenses that you pay each year as a percentage of the value of your investments. Conestoga Capital Advisors, LLC (the “Adviser”) has contractually agreed to limit the Fund’s ‘Total Annual Fund Operating Expenses’ to 1.25% (for the Institutional Class) and 1.50% (for the Investors Class) of the Fund’s average daily net assets until at least January 31, 2025, subject to termination at any time at the option of the Fund. There is no guarantee that the agreement to limit the Fund's net annual operating expense will be renewed or extended.
Portfolio Management Team
How to Invest
Individual Investors
To open a new Conestoga Fund Account or to view an Existing Fund Direct Account, please access the secure site above. Please contact a member of our Shareholder Services department at 1-800-494-2755 with any questions. Representatives are available Monday through Friday, 8:00am – 6:00pm EST.
Institutional & Financial Professionals
Disclosures
An investor should consider investment objectives, risks, charges, and expenses carefully before investing. Download a prospectus, which contains this information or call toll free 1-800-494-2755. Read the prospectus carefully before investing or sending money.
Important Risk Information:
Mutual Fund Investing involves risk, principal loss is possible. Investment in the Fund is subject to investment risks, including, without limitation, equity risk, market risk, management risk, small company risk, foreign investment risk, currency risk, large redemption risk. Funds that invest in micro cap stocks are often more volatile than large cap stocks. Micro- sized companies generally face higher risks due to their limited product lines, markets and financial resources. For more information about the Fund, including the Fund’s objectives, charges, expenses and risks (including more information about the risks listed above), please read the prospectus.
1) The Fund has adopted a Shareholder Servicing Plan on behalf of the Institutional and Investors Class shares that will allow the Fund to pay an annual fee of up to 0.10% (for Institutional Class) and 0.25% (for Investors Class) of its average daily net assets for providing services to the Fund’s Institutional and Investors Class shareholders, respectively.
Ultimus Fund Distributors, LLC. (Member FINRA & SIPC) serves as the Distributor to the Conestoga Funds.
Ultimus Fund Distributors, LLC. (Member FINRA & SIPC) and Conestoga Funds are non affiliated.