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Conestoga adds Knowles to its Small Cap Composite amid Russell rally
In the second quarter, the Russell 2000 Growth Index gained 25.7% while the Conestoga Small Cap Composite returned 14.3% net of fees, and Knowles was added as a newly added position.
Conestoga Capital Advisors said in its second-quarter 2026 investor letter that markets shifted toward small-cap stocks, with the Russell 2000 Index posting its best first half since 1991 and the Russell 2000 Growth Index rising 25.7% in Q2, according to Yahoo Finance.
The letter also described uneven leadership, citing a tilt toward higher-beta names over higher-quality companies, and said the firm expects speculative leadership to fade as monetary policy tightens and market breadth improves.
Conestoga reported that its Conestoga Small Cap Composite returned 14.32% net of fees in the quarter, and it highlighted Knowles Corporation as a newly added position in the composite.
Knowles is a specialty electronic components maker of capacitors, RF and microwave filters, balanced armature speakers, and medtech microphones. On August 4, 2026, the stock closed at $40.40 per share, with a market capitalization of $3.45 billion, and the firm pointed to accelerating organic growth, expanding margins, and strong order activity, including Precision Devices book-to-bill above 1.0x for a sixth straight quarter.
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