Conestoga Capital Advisors’ second-quarter investor letter revealed that the Conestoga Micro Cap Composite appreciated 15.65% net-of-fees but underperformed the Russell Microcap Growth Index’s 20.92% return. The firm anticipates continued market volatility and divergence from index performance due to high-beta and lower-quality stock focus.

OrthoPediatrics Corp. (NASDAQ: KIDS), highlighted in the investor letter, is a medical device company specializing in orthopedic care for children. With a one-month return of 5.91%, the stock lost 28.59% over the last year. On July 25, 2025, shares closed at $22.75 with a market cap of $563.495 million.

Conestoga Capital Advisors noted in their letter that OrthoPediatrics Corp. (NASDAQ: KIDS) is a leader in pediatric orthopedic care. Despite a slight decline in the second quarter, the company reported revenue growth exceeding expectations and raised full-year revenue guidance.

OrthoPediatrics Corp. (NASDAQ: KIDS) saw an increase in hedge fund portfolios holding their stock, with revenue of $52.4 million in Q1 2025, up 17% from Q1 2024. Although OrthoPediatrics Corp. (NASDAQ: KIDS) offers investment potential, other AI stocks may present greater upside with less downside risk.

Read more at Yahoo Finance: Here’s Why OrthoPediatrics Corp. (KIDS) Drifted Lower in Q2