N-Q 1 conestoganq082005.htm CONESTOGA SMALL CAP FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549



FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

 MANAGEMENT INVESTMENT COMPANY


Investment Company Act file number 811-21120


Conestoga Funds

(Exact name of registrant as specified in charter)


Conestoga Capital Advisors

259 N. Radnor-Chester Road

Radnor Court, Suite 120

Radnor, PA 19087

 (Address of principal executive offices)

(Zip code)


Conestoga Capital Advisors

259 N. Radnor-Chester Road

Radnor Court, Suite 120

Radnor, PA 19087

 (Name and address of agent for service)


With Copy To:

Carl Frischling, Esq.

Kramer Levin Naftalis & Frankel LLP

919 Third Avenue

New York, NY 10022


Registrant's telephone number, including area code: (800) 320-7790


Date of fiscal year end: September 30


Date of reporting period: June 30, 2005


Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5).  The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, and 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.



ITEM 1. SCHEDULE OF INVESTMENTS.



CONESTOGA SMALL CAP FUND

 

 

 

     
   

Schedule of Investments

 

 

 

June 30, 2005 (Unaudited)

 Shares/Principal Amount

 

 Market Value

% of Total Net Assets

     

 COMMON STOCKS

   
     

AUTO AND TRANSPORTATION

   
     

Recreational Vehicles and Boats

   

3,900

Polaris Industries, Inc.

 

$210,600

2.36%

7,500

Winnebago Industries, Inc.

 

245,625

2.75%

   Recreational Vehicles and Boats Industry Total

 

456,225

5.11%

     

Truckers

    

8,750

Knight Transportation, Inc. *

 

212,888

2.38%

     

Auto Trucks and Parts

   

1,500

Oshkosh Truck Corp.

 

117,420

1.32%

     

 

AUTO AND TRANSPORTATION SECTOR TOTAL

786,533

8.81%

     

CONSUMER DISCRETIONARY

   
     

Consumer Products

   

6,000

Matthews International Corp.

 

233,760

2.62%

6,600

Yankee Candle Co. , Inc.

 

211,860

2.37%

    Consumer Products Industry Total

 

    445,620

4.99%

     

Education Services

 

 

 

5,500

Renaissance Learning, Inc.

 

111,650

1.25%

     

Household Furnishings

   

6,500

American Woodmark Corp.

 

195,065

2.19%

     

Leisure Time

    

6,500

SCP Pool Corp.

 

228,085

2.56%

     

Retail

    

2,750

School Specialty, Inc. *

 

127,875

1.43%

     

Services Commercial

   

4,850

Coinstar, Inc. *

 

109,853

1.23%

6,250

Ritchie Bros Auctioneers, Inc.

 

240,937

2.70%

10,000

Rollins, Inc.

 

200,400

2.24%

   Services Commercial Industry Total

 

551,190

6.17%

     

 

CONSUMER DISCRETIONARY SECTOR TOTAL

1,659,485

18.59%

     

FINANCIAL SERVICES

   
     

Banks

    

9,000

Boston Private Financial Holdings, Inc.

 

226,800

2.54%

5,500

Private Bancorp, Inc.

 

194,590

2.18%

   Banks Industry Total

 

421,390

4.72%

     

Finance Companies

   

8,000

World Acceptance Corp. *

 

240,400

2.69%

     

Financial Data Processing Services

   

4,750

Kronos, Inc. *

 

191,853

2.15%

     

Financial Information Services

   

7,750

Factset Research Systems, Inc.

 

277,760

3.11%

     

Financial Miscellaneous

   

6,000

Financial Federal Corp.

 

231,840

2.60%

10,125

TSX Group, Inc.

 

296,845

3.33%

   Financial Miscellaneous Industry Total

 

528,685

5.92%

     

 

FINANCIAL SERVICES SECTOR TOTAL

 

1,660,088

18.60%

     

HEALTHCARE

    
     

Bio-Technology Research and Production

   

6,250

Integra Lifesciences Holdings Co. *

 

    182,500

2.04%

6,500

Kensey Nash Corp. *

 

196,560

2.20%

   Bio-Technology Research and Production Industry Total

 

379,060

4.25%

     

Healthcare Management Services

   

8,000

Computer Programs & Systems, Inc.

 

298,160

3.34%

     

Medical and Dental Instruments and Supplies

 

 

 

5,500

Landauer, Inc.

 

285,505

3.20%

4,750

Mentor Corp.

 

197,030

2.21%

5,000

Techne Corp. *

 

229,550

2.57%

   Medical and Dental Instruments and Supplies Industry Total

 

712,085

7.98%

     

 

HEALTHCARE SECTOR TOTAL

 

1,389,305

15.56%

     

MATERIALS AND PROCESSING

   
     

Building Materials

   

8,500

Simpson Manufacturing Co., Inc.

 

    259,675

2.91%

     

Metals & Minerals

   

10,650

Amcol International Corp.

 

200,114

2.24%

     

Textile Products

    

13,200

Unifi, Inc. *

 

55,968

0.63%

     

 

MATERIALS AND PROCESSING SECTOR TOTAL

    515,757

5.78%

   

 

 

OTHER ENERGY

   
     

Oil: Crude Producers

   

7,000

St. Mary Land Exploration Co.

 

202,860

2.27%

25,000

Meridian Resources Corp. *

 

119,500

1.34%

   Oil: Crude Producers Industry Total

 

322,360

3.61%

     

Machinery: Oil Well Equipment & Service

   

2,750

Carbo Ceramics, Inc.

 

    217,140

2.43%

     

 

OTHER ENERGY SECTOR TOTAL

 

    539,500

6.04%

     

PRODUCER DURABLES

   
     

Aerospace

    

2,250

Curtiss Wright Corp.

 

121,387

1.36%

     

Electrical Equipment & Components

   

7,000

Franklin Electric Co., Inc.

 

270,550

3.03%

     

Machinery: Specialty

 

 

 

7,000

Graco Inc.

 

238,490

2.67%

     

Telecommunications Equipment

   

7,500

Plantronics, Inc.

 

272,700

3.05%

     

 

PRODUCER DURABLES SECTOR TOTAL

 

903,127

10.12%

     

TECHNOLOGY

    
     

Communications Technology

   

8,750

Avocent Corp. *

 

    228,725

2.56%

13,000

Digi International, Inc. *

 

    154,180

1.73%

   Communications Technology Industry Total

 

382,905

4.29%

     

Computer Technology

   

5,000

Hutchinson Technology, Inc. *

 

192,550

2.16%

     

Electronics: Semi-Conductor

   

7,400

Integrated Circuit Systems, Inc. *

 

152,736

1.71%

     

Electronics: Technology

   

5,250

Trimble Navigation, Ltd. *

 

204,591

2.29%

     

 

TECHNOLOGY SECTOR TOTAL

 

932,782

10.45%

     

OTHER

    
     

Multisector Companies

   

10,700

Raven Industries, Inc.

 

250,594

2.81%

     

 

TOTAL OTHER

 

250,594

2.81%

     

TOTAL COMMON STOCKS

   

 

(Cost $7,099,002)

 

 8,637,171

96.75%

     
     

 SHORT-TERM INVESTMENTS  

   

394,921

First American Prime Obligations Fund 2.43%

 

394,921

4.44%

210,030

First American Government Obligations Fund 2.46%

210,030

2.89%

204,558

First American Treasury Obligations Fund 2.39%

 

204,558

0.02%

 

(Cost $809,509) (a)

 

809,509

9.07%

     

TOTAL INVESTMENTS

   

 

(Cost $7,908,511)

 

9,446,680

105.82%

  

 

  
 

Liabilities less other Assets

 

(519,720)

-5.82%

 

 

 

 

 

 

TOTAL NET ASSETS

 

$8,926,960

100.00%

     

* Non-income producing.

(a) Variable rate security; the coupon rate shown represents the yield at June 30, 2005.

The accompanying notes are an integral part of the financial statements.

     
 

 NOTES TO FINANCIAL STATEMENTS

   

 CONESTOGA SMALL CAP FUND

   

1. SECURITY TRANSACTIONS

   

At June 30, 2005, the net unrealized appreciation on investments, based on cost for federal

 

 income tax purposes of $7,908,511 amounted to $ 1,538,169 which consisted of aggregate gross

 unrealized appreciation of  $1,614,113 and aggregate gross unrealized depreciation of $75,944.


ITEM 2. CONTROLS AND PROCEDURES.


(a)

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective.

(b)

CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.


ITEM 3. EXHIBITS.


Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Conestoga Funds


By /s/W. Christopher Maxwell

* W. Christopher Maxwell

   Chairman and Chief Executive Officer


Date August 29, 2005


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By /s/W. Christopher Maxwell

* W. Christopher Maxwell

   Chairman and Chief Executive Officer


Date August 29, 2005


By /s/Robert M. Mitchell

* Robert M. Mitchell

  Treasurer and Chief Financial Officer


Date August 29, 2005


* Print the name and title of each signing officer under his or her signature.