Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. US equities experienced solid returns in 2025, with double-digit gains across all major indices. A copy of the letter can be downloaded here. In 2025, the Conestoga Micro Cap Composite met its purpose of preserving capital during negative market returns and capturing upside during strong market returns. Micro Caps faced significant volatility in 2025. During the course of events, Conestoga Micro Cap Composite returned -1.91% net of fees in the fourth quarter and 16.24% net of fees for the full year 2025, trailing the Russell Microcap Growth Index’s 2.14% and 21.84% gains in the fourth quarter and full year, respectively. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks like Universal Technical Institute, Inc. (NYSE:UTI). Universal Technical Institute, Inc. (NYSE:UTI) is a US-based educational institution that provides transportation, skilled trades, and healthcare education programs. On February 19, 2026, Universal Technical Institute, Inc. (NYSE:UTI) stock closed at $31.72 per share. One-month return of Universal Technical Institute, Inc. (NYSE:UTI) was 11.93%, and its shares gained 19.70% over the past 52 weeks. Universal Technical Institute, Inc. (NYSE:UTI) has a market capitalization of $1.745 billion.
Conestoga Capital Advisors stated the following regarding Universal Technical Institute, Inc. (NYSE:UTI) in its fourth quarter 2025 investor letter:
“Universal Technical Institute, Inc. (NYSE:UTI) is a leading provider of vocational education for automotive, skilled trades, and energy sectors. Shares sold off in November after the company issued a financial outlook for fiscal 2026 that fell below Wall Street expectations. Although UTI reported strong fiscal fourth quarter results that beat estimates on both the top and bottom lines, the softer forward guidance regarding EBITDA and earnings growth weighed on investor sentiment. We continue to monitor their execution on diversifying program offerings.”
Universal Technical Institute, Inc. (NYSE:UTI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held Universal Technical Institute, Inc. (NYSE:UTI) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of Universal Technical Institute, Inc. (NYSE:UTI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.