Core Insights - Conestoga Capital Advisors reported a decline of -1.4% in its Conestoga Small Cap Composite for Q3 2025, underperforming the Russell 2000 Growth Index which gained 12.2% [1] - The performance of the Russell 2000 Growth Index was largely driven by low-quality stocks, particularly unprofitable, high-beta names [1] Company Overview: AAON, Inc. - AAON, Inc. (NASDAQ:AAON) has a market capitalization of $7.928 billion and specializes in engineering, manufacturing, marketing, and selling HVAC systems [2] - The stock experienced a one-month return of 4.63% but has seen a decline of 11.45% over the past 52 weeks, closing at $97.24 on October 17, 2025 [2] Financial Performance and Challenges - AAON's Q2 results initially disappointed investors, but were later viewed as a clearing event due to a strong backlog of $1.1 billion and growth in its BASX business [3] - The company faced challenges including sluggish demand in its core rooftop HVAC business, manufacturing inefficiencies from an ERP implementation, and expansion costs for its Memphis facility [3] - In Q2, AAON's net sales decreased by $2 million year-over-year to $311.6 million [4] Market Sentiment and Hedge Fund Interest - AAON, Inc. was held by 29 hedge fund portfolios at the end of Q2 2025, an increase from 18 in the previous quarter [4] - Despite its potential, the company is considered less favorable compared to certain AI stocks that are perceived to offer greater upside potential and lower downside risk [4]