Conestoga Capital Advisors, an asset management company, recently released its second-quarter 2025 investor letter, outlining the performance of its Conestoga Mid Cap Composite. The quarter started off poorly but gained momentum as tariff fears subsided and market volatility decreased significantly. Despite these challenges, the fund returned 3.46% net-of-fees, although it trailed behind the Russell Mid Cap Growth Index’s 18.20% return.
One of the highlighted stocks in the investor letter was Veeva Systems Inc. (NYSE:VEEV), a cloud-based software provider for the life sciences industry. Veeva Systems saw a one-month return of 0.84% and a remarkable 51.52% gain over the past 52 weeks. As of July 25, 2025, Veeva Systems’ stock closed at $290.41 per share, with a market capitalization of $47.456 billion.
Conestoga Capital Advisors praised Veeva Systems in its letter, citing the company’s strong start to the fiscal year and its impressive performance across various metrics. VEEV added 28 new Vault CRM customers in the quarter, showcasing significant growth compared to the previous year. The company anticipates having around 200 Vault CRM customers by the following year, highlighting its positive outlook.
Veeva Systems Inc. (NYSE:VEEV) is not among the 30 Most Popular Stocks Among Hedge Funds, according to Insider Monkey’s database. While 55 hedge fund portfolios held Veeva Systems at the end of the first quarter, down from 60 in the previous quarter, the company’s solid first-quarter results exceeded expectations. With total revenue reaching $759 million and a robust non-GAAP operating margin, Veeva Systems continues to show promise as an investment opportunity.
While Veeva Systems presents potential for investors, Conestoga Capital Advisors believes that certain AI stocks offer greater upside potential with lower downside risk. For those seeking undervalued AI stocks that could benefit from current economic trends, the report recommends exploring alternative investment opportunities.
In conclusion, Conestoga Capital Advisors’ second-quarter investor letter provides valuable insights into the performance of the Conestoga Mid Cap Composite and highlights Veeva Systems Inc. as a standout stock in the portfolio. Investors interested in tech and life sciences sectors may find Veeva Systems’ growth trajectory and market position compelling for their investment portfolios.
