Supply Chain Disruptions Dragged Mercury Systems (MRCY) in Q2
Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 4.93% net-of-fees in the second quarter, compared to the Russell 2000 Growth Index’s 7.05% return. The key source of underperformance was poor stock selection, with allocation effects providing little benefit. The underperformance was mostly concentrated in the Industrials sector with minor declines in the Technology and Basic Materials sectors. Gains in the Consumer Discretionary and Utilities sectors partially offset these losses. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like Mercury Systems, Inc. (NASDAQ:MRCY) in the second quarter 2023 investor letter. Headquartered in Andover, Massachusetts, Mercury Systems, Inc. (NASDAQ:MRCY) is a technology company that serves the defense and aerospace industries. On August 8, 2023, Mercury Systems, Inc. (NASDAQ:MRCY) stock closed at $37.34 per share. One-month return of Mercury Systems, Inc. (NASDAQ:MRCY) was 5.15%, and its shares lost 26.32% of their value over the last 52 weeks. Mercury Systems, Inc. (NASDAQ:MRCY) has a market capitalization of $2.173 billion.
Conestoga Small Cap Strategy made the following comment about Mercury Systems, Inc. (NASDAQ:MRCY) in its second quarter 2023 investor letter:
"Mercury Systems, Inc. (NASDAQ:MRCY): MRCY is a leading manufacturer of microelectronic technologies for the aerospace and defense sectors. MRCY has been hampered by supply chain disruptions and delays in defense programs due to budget uncertainty. MRCY has also failed to adequately integrate and optimize recent acquisitions. MRCY announced that they would consider strategic alternatives in the first quarter. Late in June, they announced the company would not be purchased and that CEO Mark Aslett had resigned. We think new leadership and the natural thawing of supply chain issues may enable MRCY to execute against its strategic plan."
Photo by Thisisengineering Raeng on Unsplash
Mercury Systems, Inc. (NASDAQ:MRCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Mercury Systems, Inc. (NASDAQ:MRCY) at the end of first quarter which was 18 in the previous quarter.
We discussed Mercury Systems, Inc. (NASDAQ:MRCY) in another article and shared the list of stocks whose price targets were recently trimmed by analysts. In addition, please check out our hedge fund investor letters Q2 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.
