(PUB) Investing 2016

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5 Morningstar FundInvestor May 2016
Data through April 30, 2016 FINRA members: For internal or institutional use only.
Conestoga Small Cap Investors Ticker
CCASX
Yield
0.0%
Total Assets
$681 mil
Mstar Category
Small Growth
Benchmark 1: Russell 2000 Growth TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 04-18-16
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
9 9 9 9 9 9 9 9 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
( ( & ( ( & ( & ) & ( Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 04-16 History
18.44 19.11 13.82 17.84 22.12 22.62 24.98 36.65 33.70 35.74 34.25 NAV
9.45 6.43 -27.38 29.09 23.99 4.55 11.00 49.26 -8.05 8.03 -4.17 Total Return %
-3.90 -0.62 11.16 -5.38 -5.10 7.46 -3.59 5.95 -13.65 9.41 -0.44 +/- Bmark 1
-6.34 0.93 9.62 2.62 8.93 2.44 -5.00 16.87 -21.74 6.65 -5.91 +/- Bmark 2
0.00 0.19 0.29 0.00 0.00 0.00 0.10 0.00 0.00 0.00 0.00 Income Return %
9.45 6.24 -27.67 29.09 23.99 4.55 10.90 49.26 -8.05 8.03 -4.17 Capital Return %
58 55 2 74 71 4 75 9 97 3 59 Total Rtn % Rank Cat
0.00 0.03 0.05 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.00 Income $
0.11 0.49 0.00 0.00 0.00 0.51 0.10 0.63 0.00 0.67 0.00 Capital Gains $
1.35 1.31 1.30 1.29 1.24 1.27 1.22 1.21 1.24 1.30 . Expense Ratio %
-0.26 -0.01 0.39 0.01 -0.26 -0.36 -0.50 -0.09 -0.64 -0.37 . Income Ratio %
19 14 23 14 23 18 16 15 18 12 . Turnover Rate %
21 30 33 79 126 185 317 716 617 458 470 Net Assets $mil
Performance 04-30-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 9.90 -0.40 0.57 0.84 11.00
2013 13.93 2.25 15.43 11.00 49.26
2014 -5.95 -1.62 -9.41 9.70 -8.05
2015 5.10 3.22 -8.45 8.77 8.03
2016 -3.47 — — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 5.32 -2.65 -1.73 80 10,532
6 Mo -2.55 2.41 -2.98 27 9,745
1 Yr -0.38 7.89 -1.58 9 9,962
3 Yr Avg 8.80 0.30 -2.46 26 12,878
5 Yr Avg 7.93 0.78 -3.08 18 14,649
10 Yr Avg 6.93 0.79 0.02 15 19,536
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 8.47 9 0.30 8
5 Yr (estimated) 7.65 8 0.27 9
10 Yr (estimated) 6.69 4 0.22 7
Potential Capital Gain Exposure: 30% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -0.38
3 Yr 8.80 +Avg +Avg QQQ
5 Yr 7.93 +Avg Avg QQQQ
10 Yr 6.93 +Avg Low QQQQ
Incept 10.51
Other Measures Standard Index Best Fit Index
Alpha -2.3 1.3
Beta 1.07 1.01
R-Squared 53 87
Standard Deviation 16.66
Mean 8.80
Sharpe Ratio 0.58
Portfolio Analysis 03-31-16
Total Stocks: 45
Share change since 02-29-16 Sector YTD Ret % % Assets
TStamps.com Inc Technology — 3.48
TBottomline Technologies I Technology — 3.45
TAAON Inc Basic Mat — 3.43
TCantel Medical Corp Hlth Care — 3.35
TOmnicell Inc Technology — 3.21
TProto Labs Inc Industrl — 3.14
TBlackbaud Inc Technology — 3.04
TNeogen Corp Hlth Care — 3.03
TLigand Pharmaceuticals In Hlth Care — 2.95
TMesa Laboratories Inc Hlth Care — 2.91
TDorman Products Inc Cnsmr Cyc — 2.85
TSimpson Manufacturing Co Industrl — 2.68
TVascular Solutions Inc Hlth Care — 2.66
TSPS Commerce Inc Technology — 2.42
TTyler Technologies Inc Technology — 2.38
TACI Worldwide Inc Technology — 2.26
THealthcare Services Group Industrl — 2.26
TFleetMatics Group PLC Technology — 2.18
THealthStream Inc Technology — 2.17
TWestwood Holdings Group I Finan Svcs — 2.17
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 0.0
Large 0.0
Mid 8.9
Small 57.9
Micro 33.2
Avg $mil:
1,456
Value Measures Rel Category
Price/Earnings 33.79 1.46
Price/Book 3.85 1.37
Price/Sales 3.60 2.28
Price/Cash Flow 19.90 1.86
Dividend Yield % 0.62 0.71
Growth Measures % Rel Category
Long-Term Erngs 20.29 1.34
Book Value 10.24 1.27
Sales 8.89 1.25
Cash Flow 3.30 0.26
Historical Erngs 15.70 1.36
Profitability %
Return on Equity 12.73
Return on Assets 8.70
Net Margin 10.47
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 16.91 0.53
r BasicMat 7.85 1.39
t CnsmrCyc 4.68 0.27
y FinanSvcs 2.33 0.48
u Real Est 2.05 0.54
j Sensitive 55.55 1.35
i CommSrvs 0.00 0.00
o Energy 1.76 2.32
p Industrl 17.76 1.14
a Technlgy 36.03 1.55
k Defensive 27.54 1.02
s CnsmrDef 1.96 0.40
d Hlthcare 25.58 1.17
f Utilities 0.00 0.00
Composition - Net
Cash 6.6
Stocks 93.4
Bonds 0.0
Other 0.0
Foreign 0.0
(% of Stock)
Morningstar's Take by Susan Wasserman 04-18-16
Conestoga Small Cap’s 0.8% loss over the past year
through March 2016 may not impress at first glance, but
that showing fared much better than the 11.8% loss of
its small-cap growth benchmark--the Russell 2000
Growth Index. Plus, it is a welcomed turnaround after a
rough 2014. The recent success builds upon the fund's
legacy of strong returns and tempered volatility going
back to its 2002 inception. The impressive long-term
record comes from a tenured team that sticks to a proven
process, earning the fund a Morningstar Analyst Rating
of Silver.
Management’s longer-term outlook and patient
approach drive the fund’s success. Comanagers Joseph
Monahan and Robert Mitchell, along with three analysts,
scour the small-cap universe for stocks that they believe
will appreciate at least 100% over a three- to five-year
period. They pay particular attention to companies with
strong earnings growth, high return on equity, low debt/
capitalization, and significant management ownership.
The team goes beyond these fundamental metrics,
seeking to understand a company’s strategy and
management’s execution success. This measured
approach translates to a relatively concentrated portfolio
of 45-50 stocks that has remained fairly steady, as the
fund's annual turnover typically hovers around 20% but
fell as low as 12% in 2015.
While this approach has rewarded investors over the
long run, the fund stumbled in 2014. Subpar stock picks
in the heavily weighted technology sector damaged
performance. Although the team trimmed shares across
most technology picks throughout 2015, the fund
maintains a sizable overweighting in the sector. That
helped the fund trounce the benchmark in 2015 when the
fund posted a 8.0% gain compared with the benchmark’s
1.4% loss.
Since its October 2002 inception through March
2016, the fund's 10.6% annualized gain only edges the
Russell 2000 Growth's 10.5% return, but it has produced
those results with much less volatility. That showing also
handily beats the typical small-growth peer.
Address: Conestoga Funds Minimum Purchase: $2500 Add: — IRA: $2500
Radnor, PA 19087 Min Auto Inv Plan: $500 Add: —
800-494-2755 Sales Fees: No-load
Web Address: Management Fee: 0.90%
Inception: 10-01-02 Actual Fees: Mgt:0.90% Dist:0.25%
Advisor: Conestoga Capital Advisors, LLC Expense Projections: 3Yr:$435 5Yr:$781 10Yr:$1756
Subadvisor: None Income Distribution: Annually
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