Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. For the second consecutive year, U.S. equity indices ended the year with double-digit returns after generating modest returns in the fourth quarter of 2024. Conestoga's investment plans were hindered by the enthusiasm for everything artificial intelligence (AI) related, which the firm believes led to a more speculative investing climate. The Conestoga Small Cap Composite surged 1.67% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s 1.70% return. The Conestoga SMid Cap Composite returned -0.68% (net) trailing the Russell 2500 Growth Index’s 2.43% return. The Conestoga Micro Cap Composite advanced 9.91% (net) vs the Russell Microcap Growth Index’s return of 11.55%. Finally, the Conestoga Mid Cap Composite returned -4.63% (net) underperforming the Russell Midcap Growth Index’s 8.14% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.

In its fourth quarter 2024 investor letter, Conestoga Capital Advisors emphasized stocks such as Old Dominion Freight Line, Inc. (NASDAQ:ODFL). Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a less-than-truckload motor carrier that provides regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. The one-month return Old Dominion Freight Line, Inc. (NASDAQ:ODFL) was 10.12%, and its shares lost 4.54% of their value over the last 52 weeks. On February 11, 2025, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) stock closed at $205.77 per share, with a market capitalization of $43.931 billion.

Conestoga Capital Advisors stated the following regarding Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in its Q4 2024 investor letter:

"Based in Thomasville, NC, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the country’s largest less-than-truckload (LTL) carriers, an industry which has high barriers to entry. The company generated industry leading profit margins because of the durable competitive advantages it has created over decades including a balanced network and superior service. The freight industry is coming off a two plus year volume recession and we anticipate ODFL will resume its historical cadence of share gains in the next freight upcycle."

A large fleet of freight trucks travelling down an interstate highway.

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Old Dominion Freight Line, Inc. (NASDAQ:ODFL) at the end of the third quarter which was 43 in the previous quarter. Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) revenue totaled $1.39 billion in the fourth quarter of 2024, a 7.3% decrease from the prior year quarter. While we acknowledge the potential of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article we discussed Old Dominion Freight Line, Inc. (NASDAQ:ODFL) and shared the list of best logistics stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 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.