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Conestoga highlights Magnolia Oil & Gas in its Q2 2026 investor letter
The letter says the Russell 2000’s best first half since 1991 and a 25.7% Q2 gain for the Russell 2000 Growth Index reflected a market shift toward small-cap risk.
Conestoga Capital Advisors said its Q2 2026 investor letter points to a shift toward small caps, with the Russell 2000 posting its best first half since 1991 and the Russell 2000 Growth Index rising 25.7% in the quarter, helped by investor enthusiasm around AI and semiconductor stocks, according to Yahoo Finance.
The firm also described uneven leadership, saying higher-beta names outperformed while higher-quality companies lagged, a pattern it said resembled the Tech Bubble, potentially affecting the performance of quality-focused strategies.
Conestoga reported that its Conestoga Small Cap Composite returned 14.32% net-of-fees in Q2, while the Russell 2000 Growth Index returned 25.71% for the same period, and it said it expects quality growth businesses to regain favor as market leadership broadens and monetary policy tightens.
In the letter, Conestoga highlighted Magnolia Oil & Gas Corporation, which it included in its Small Cap Composite during the quarter; Yahoo Finance reported that MGY closed at $24.58 per share on August 4, 2026, valuing the company at $5.96 billion, and noted a one-month share return of -6.61% and a 52-week gain of 3.67%.
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