Helios Technologies (HLIO) Fell on Reduced Guidance
Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the Small Cap Composite outperformed the Russell 2000 Growth Index benchmark and returned 21.93% versus the benchmark’s return of 18.66%. The strategy rose 10.97% net-of-fees in the fourth quarter compared to the 12.75% return for the index. As anticipated, the strategy produced the majority of its outperformance during the down-market times. In general, 2023 had mixed results for better-caliber businesses. Sector allocations contributed more to Conestoga’s relative performance in the Small Cap Composite than stock selection effects did. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Capital Advisors Small Cap Strategy featured stocks such as Helios Technologies, Inc. (NYSE:HLIO) in the Q4 2023 investor letter. Headquartered in Sarasota, Florida, Helios Technologies, Inc. (NYSE:HLIO) is an industrial technology company that operates in the Hydraulics and Electronics segments. On February 16, 2024, Helios Technologies, Inc. (NYSE:HLIO) stock closed at $44.95 per share. One-month return of Helios Technologies, Inc. (NYSE:HLIO) was 7.00%, and its shares lost 34.48% of their value over the last 52 weeks. Helios Technologies, Inc. (NYSE:HLIO) has a market capitalization of $1.486 billion.
Conestoga Capital Advisors Small Cap Strategy stated the following regarding Helios Technologies, Inc. (NYSE:HLIO) in its fourth quarter 2023 investor letter:
"Helios Technologies, Inc. (NYSE:HLIO): HLIO reported disappointing 3Q results as well as lowered guidance for 2023. This is the second quarter in a row that HLIO reduced guidance for 2023. While the company is seeing the economic slowdown adversely impact its business, the company is also significantly investing in capacity expansion to ramp up for expected OEM customer wins. These expected wins are getting pushed out to late 2024 or 2025. The macroeconomic weakness, capacity investments and the new customer pushouts are a difficult combination for investors to digest."
A hydraulic technician in the process of assembling a hydraulic system.
Helios Technologies, Inc. (NYSE:HLIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Helios Technologies, Inc. (NYSE:HLIO) was held by 7 hedge fund portfolios, up from 6 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q4 2023 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.
