N-Q 1 conestoganq200612.htm UNITED STATES

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, 2006


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, 2006

 Shares

 

 Market Value

% of Total Net Assets

 COMMON STOCKS

   
    

AUTO AND TRANSPORTATION

  
    

Recreational Vehicles and Boats

  

17,000

Winnebago Industries, Inc.

559,470

 
    

Truckers

   

24,501

Knight Transportation, Inc.

417,742

 

    

 

AUTO AND TRANSPORTATION SECTOR TOTAL

977,212

4.73%

    

COMPUTER SERVICES

   
    

Software & Systems

   

22,050

Ansoft Corp.*

612,989

 

20,500

Blackbaud, Inc.

533,000

 

    

 

COMPUTER SERVICES SECTOR TOTAL

1,145,989

5.55%

    

CONSUMER DISCRETIONARY

  
    

Consumer Products

   

21,500

Select Confort Corp. *

373,885

 
    

Commercial Services

 

 

 

9,000

The Advisory Board Co. *

481,860

 
    

Electronics

   

27,000

Lojack Corp.*

461,160

 
    

Leisure Time

   

7,500

Pool Corp.

293,775

 
    

Services Commercial

   

10,500

Ritchie Bros Auctioneers, Inc.

562,170

 

23,000

Rollins, Inc.

508,530

 

             Services Commercial Industry Total

1,070,700

 
    

Shoes

   

15,500

Iconix Brand Group, Inc.*

300,545

 
    

                    CONSUMER DISCRETIONARY SECTOR TOTAL

2,981,925

14.44%

    

FINANCIAL SERVICES

   
    

Banks

   

19,000

Boston Private Financial Holdings, Inc.

535,990

 

11,000

PrivateBancorp, Inc.

457,930

 

             Banks Industry Total

993,920

 
    

Finance Companies

   

10,000

World Acceptance Corp. *

469,500

 
    

Financial Data Processing Services

  

10,250

Kronos, Inc. *

376,585

 
    

Financial Information Services

  

9,500

FactSet Research Systems, Inc.

536,560

 
    

Financial Miscellaneous

   

17,250

Financial Federal Corp.

507,323

 

6,500

TSX Group, Inc.

260,224

 

             Financial Miscellaneous Industry Total

767,547

 
    

 

FINANCIAL SERVICES SECTOR TOTAL

3,144,112

15.22%

    

HEALTHCARE

   
    

Bio-Technology Research and Production

  

11,000

Integra Lifesciences Holdings Co. *

         468,490

 

13,250

Kensey Nash Corp. *

421,350

 

             Bio-Technology Research and Production Industry Total

889,840

 
    

Healthcare Management Services

  

21,000

Computer Programs & Systems, Inc.

713,790

 
    

Healthcare Services

   

24,500

Psychemedics Corp.

471,625

 
    

Medical and Dental Instruments and Supplies

 

 

10,250

Landauer, Inc.

537,818

 

6,250

Mentor Corp.

305,438

 

15,000

Surmodics, Inc.*

466,800

 

7,000

TECHNE Corp. *

388,150

 

             Medical and Dental Instruments and Supplies Industry Total

1,698,206

 
    

 

HEALTHCARE SECTOR TOTAL

3,773,461

18.27%

    

MACHINERY

   
    

Construction & Handling

   

32,150

ASV, Inc. *

         523,080

 
    

                        MACHINERY SECTOR TOTAL

         523,080

2.53%

    

MATERIALS AND PROCESSING

  
    

Building Materials

   

19,250

Simpson Manufacturing Co., Inc.

         609,263

 
    

Metals & Minerals

   

17,500

AMCOL International Corp.

485,449

 

    

                        MATERIALS AND PROCESSING SECTOR TOTAL

      1,094,712

5.30%

    

OTHER ENERGY

   
    

Oil: Crude Producers

   

9,250

St. Mary Land & Exploration Co.

340,770

 
    

Machinery: Oil Well Equipment & Service

  

                           14,001

Carbo Ceramics, Inc.

         523,217

 
    

 

OTHER ENERGY SECTOR TOTAL

         863,987

4.18%

    

PRODUCER DURABLES

  
    

Aerospace

   

7,500

Curtiss-Wright Corp.

278,100

 
    

Electrical Equipment & Components

  

12,000

Franklin Electric Co., Inc.

616,680

 
    

                       PRODUCER DURABLES SECTOR TOTAL

894,780

4.33%

    

TECHNOLOGY

   
    

Communications Technology

  

14,750

Avocent Corp. *

         499,287

 

18,250

Digi International, Inc. *

         251,668

 

             Communications Technology Industry Total

750,955

 
    

Computer Technology

   

11,350

Quality Systems, Inc.

423,015

 

14,750

Rimage Corp.*

383,500

 

              Computer Technology Total

806,515

 
    

Computer Services Software & Systems

  

12,250

Ansys, Inc. *

532,753

 

23,000

Blackboard, Inc. *

690,920

 

              Consumer Services Software & Systems Total

      1,223,673

 
    

Electronics: Technology

   

8,500

Trimble Navigation Ltd. *

431,205

 

23,000

II-VI, Inc. *

642,620

 

              Electronics Technology Total

1,073,825

 
    

 

TECHNOLOGY SECTOR TOTAL

3,854,968

18.68%

    

MULTISECTOR

   
    

Multisector Companies

   

26,000

Raven Industries, Inc.

696,800

 
    

 

TOTAL MULTISECTOR

696,800

3.37%

TOTAL COMMON STOCKS

  

 

(Cost $17,001,755)

    19,951,026

96.60%

    
    

 SHORT-TERM INVESTMENTS  

  

                         824,144

UMB Money Market Fiduciary  3.66%(a)

824,144

 

 

(Cost $824,144)

824,144

3.99%

    

TOTAL INVESTMENTS

   

 

(Cost $17,825,899)

20,775,170

100.59%

    
 

Liabilities in excess of other assets

(121,753)

-0.59%

 

 

 

 

 

TOTAL NET ASSETS

$20,653,417

100.00%

    

* Non-income producing.

(a) The rate shown represents the yield at December 31, 2006.

 

 

 NOTES TO FINANCIAL STATEMENTS

  

Conestoga Small Cap Fund

  

1. SECURITY TRANSACTIONS

  

At December 31, 2006, the net unrealized appreciation on investments, based on cost for federal income

tax purposes of $17,825,899 amounted to $2,949,271 which consisted of aggregate gross unrealized appreciation of

 $3,659,830  and aggregate gross unrealized depreciation of $710,559.

  





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 20, 2007


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 20, 2007


By /s/Robert M. Mitchell

* Robert M. Mitchell

  Treasurer and Chief Financial Officer


Date  February 20, 2007


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