N-Q 1 conestoganq022006.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: December 31, 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

 

 December 31, 2005 (Unaudited)

 Shares/Principal Amount

 Market Value

% of Total Net Assets

    

 COMMON STOCKS

  
    

AUTO AND TRANSPORTATION

  
    

Recreational Vehicles and Boats

  

2,750

Polaris Industries, Inc.

$138,050

1.31%

10,000

Winnebago Industries, Inc.

332,800

3.15%

             Recreational Vehicles and Boats Industry Total

470,850

4.46%

    

Truckers

   

13,500

Knight Transportation, Inc. *

279,855

2.65%

    

 

AUTO AND TRANSPORTATION SECTOR TOTAL

750,705

7.11%

    

CONSUMER DISCRETIONARY

  
    

Consumer Products

  

6,750

Matthews International Corp.

245,767

2.33%

8,000

Yankee Candle Co. , Inc.

204,800

1.94%

              Consumer Products Industry Total

               450,567

4.27%

    

Household Furnishings

  

7,000

American Woodmark Corp.

173,530

1.64%

    

Leisure Time

   

8,500

SCP Pool Corp.

316,370

3.00%

    

Management Services

  

4,500

Advisory Board Co.

214,515

2.03%

    

Retail

   

6,200

Cherokee, Inc.

213,218

2.02%

    

Services Commercial

  

6,750

Ritchie Bros Auctioneers, Inc.

285,188

2.70%

13,000

Rollins, Inc.

256,230

2.43%

             Services Commercial Industry Total

541,418

5.13%

   

 

 

CONSUMER DISCRETIONARY SECTOR TOTAL

1,909,618

18.08%

    

FINANCIAL SERVICES

  
    

Banks

   

9,000

Boston Private Financial Holdings, Inc.

273,780

2.59%

6,750

Private Bancorp, Inc.

240,098

2.27%

             Banks Industry Total

513,878

4.87%

    

Finance Companies

  

12,000

World Acceptance Corp. *

342,000

3.24%

    

Financial Data Processing Services

  

5,250

Kronos, Inc. *

219,765

2.08%

    

Financial Information Services

  

8,500

Factset Research Systems, Inc.

349,860

3.31%

    

Financial Miscellaneous

  

6,500

Financial Federal Corp.

288,925

2.74%

10,125

TSX Group, Inc.

407,751

3.86%

             Financial Miscellaneous Industry Total

696,676

6.60%

    

 

FINANCIAL SERVICES SECTOR TOTAL

2,122,178

20.10%

    

HEALTHCARE

   
    

Bio-Technology Research and Production

  

7,000

Integra Lifesciences Holdings Co. *

               248,220

2.35%

7,000

Kensey Nash Corp. *

154,210

1.46%

             Bio-Technology Research and Production Industry Total

402,430

3.81%

    

Healthcare Management Services

  

9,250

Computer Programs & Systems, Inc.

383,228

3.63%

    

Medical and Dental Instruments and Supplies

 

 

5,500

Landauer, Inc.

253,495

2.40%

3,750

Mentor Corp.

172,800

1.64%

5,500

Techne Corp. *

308,440

2.92%

             Medical and Dental Instruments and Supplies Industry Total

734,735

6.96%

    

 

HEALTHCARE SECTOR TOTAL

1,520,393

14.40%

    

MATERIALS AND PROCESSING

  
    

Building Materials

  

9,650

Simpson Manufacturing Co., Inc.

               350,778

3.32%

    

Metals & Minerals

  

11,100

Amcol International Corp.

227,772

2.16%

    

 

MATERIALS AND PROCESSING SECTOR TOTAL

               578,550

5.48%

    

OTHER ENERGY

  
    

Oil: Crude Producers

  

8,250

St. Mary Land Exploration Co.

303,683

2.88%

    

Machinery: Oil Well Equipment & Service

  

4,125

Carbo Ceramics, Inc.

               233,145

2.21%

    

 

OTHER ENERGY SECTOR TOTAL

               536,828

5.08%

    

PRODUCER DURABLES

  
    

Aerospace

   

2,750

Curtiss Wright Corp.

150,150

1.42%

    

Electrical Equipment & Components

  

7,000

Franklin Electric Co., Inc.

276,780

2.62%

    

Machinery: Equipment

  

8,875

ASV, Inc.*

221,698

2.10%

    

Machinery: Specialty

 

 

5,000

Graco, Inc.

182,400

1.73%

    

Telecommunications Equipment

  

9,000

Plantronics, Inc.

254,700

2.41%

    

 

PRODUCER DURABLES SECTOR TOTAL

1,085,728

10.28%

    

TECHNOLOGY

   
    

Communications Technology

  

9,500

Avocent Corp. *

               258,305

2.45%

13,000

Digi International, Inc. *

               136,370

1.29%

             Communications Technology Industry Total

394,675

3.74%

   

 

Computer Technology

  

7,500

Hutchinson Technology, Inc. *

213,375

2.02%

    

Electronics: Technology

  

8,750

Trimble Navigation, Ltd. *

310,538

2.94%

    

Services- Prepackaged Software

  

3,550

Ansoft Corp.*

120,878

1.14%

6,575

Ansys, Inc.*

280,687

2.66%

8,650

Blackboard, Inc.*

250,677

2.37%

           Services- Prepackaged Software Total

652,241

6.18%

    

 

TECHNOLOGY SECTOR TOTAL

1,570,829

14.87%

    

OTHER

   
    

Multisector Companies

  

12,000

Raven Industries, Inc.

346,200

3.28%

    

 

TOTAL OTHER

346,200

3.28%

    

TOTAL COMMON STOCKS

  

 

(Cost $8,454,609)

         10,421,027

98.68%

    
    

 SHORT-TERM INVESTMENTS  

  

83,494

First American Prime Obligations Fund 3.85%

83,494

0.79%

52,452

First American Government Obligations Fund 2.46%

52,452

0.50%

6,241

First American Treasury Obligations Fund 2.39%

6,241

0.06%

 

(Cost $142,186) (a)

142,186

1.35%

    

TOTAL INVESTMENTS

  

 

(Cost $8,596,795)

10,563,213

100.02%

    
 

Liabilities in excess of other Assets

(2,608)

-0.02%

 

 

 

 

 

TOTAL NET ASSETS

$10,560,605

100.00%

    

* Non-income producing.

(a) Variable rate security; the coupon rate shown represents the yield at December 31, 2005.

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

    
 

 NOTES TO FINANCIAL STATEMENTS

  

 CONESTOGA SMALL CAP FUND

  

1. SECURITY TRANSACTIONS

  

At December 31, 2005, the net unrealized appreciation on investments, based on cost for federal

 

 income tax purposes of $8,596,795 amounted to $1,966,418which consisted of aggregate gross

 

 unrealized appreciation of $2,194,023 and aggregate gross unrealized depreciation of ($227,605).




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 February 22, 2006


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 February 22, 2006


By /s/Robert M. Mitchell

* Robert M. Mitchell

  Treasurer and Chief Financial Officer


Date February 22, 2006


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