Based in Wayne, Pennsylvania, Conestoga has a compelling business structure and investment approach. The small firm, founded in 2001, has just 16 employees. Nearly all have equity in the business. This aids retention and binds staff to Conestoga’s overall success. Its four equity strategies use clear parameters and sensible principles to seek steadily growing, profitable, low-debt companies. The firm’s moderate asset base—just $6.1 billion in September 2022—reflects decent capacity management. (Its successful flagship, Conestoga Small Cap, has been closed to most investors since 2018.)
Conestoga doubled its investment offerings in 2021, launching micro- and mid-cap equity mutual funds as bookends to its existing small- and smid-cap products. One investment team supports all four strategies. Under veteran investor and CIO Bob Mitchell, the team has sensibly doled out portfolio management duties to ensure personnel overlap and consistency of approach. The new funds have been slow to gather assets so far, but their fine pedigree and their relevance to the firm’s more-established offerings make them reasonable additions and key to Conestoga’s future growth. What’s more, the investor-friendly firm offers generous waivers to keep its fund fees competitive.