Conestoga Capital Advisors released its Q3 2025 investor letter, reporting a -1.4% return for the Small Cap Composite, underperforming the Russell 2000 Growth Index’s 12.2% gain. The market saw low-quality stocks lead, with unprofitable, high-beta names driving most of the index’s gains.

Simulations Plus, Inc. (NASDAQ: SLP) was highlighted in the investor letter for its drug discovery software using AI and machine learning. Its one-month return was 0.98%, with shares losing 54.90% over 52 weeks, closing at $15.40 per share on October 17, 2025.

Conestoga Capital Advisors decided to sell Simulations Plus, Inc. (NASDAQ: SLP) due to slowing revenue growth, reduced demand, elevated valuation, competition, and performance concerns. They believe other AI stocks offer better potential with lower risk, not listing SLP among the 30 Most Popular Stocks Among Hedge Funds.

Read more at Yahoo Finance: Here’s Why Conestoga Capital Advisors Decided to Sell Simulations Plus (SLP)