Here's What Raised Investors' Unease Over FirstService Corp. (FSV)

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Small Cap Strategy returned -1.89% net-of-fees, trailing the Russell 2000 Growth Index’s 1.22% return. The returns were volatile in the quarter. The “low quality” stocks rally persisted in the quarter, but at a slower pace compared to earlier quarters. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is a real estate services company that offers residential property management and other essential property services. On February 18, 2026, FirstService Corporation (NASDAQ:FSV) stock closed at $156.86 per share. One-month return of FirstService Corporation (NASDAQ:FSV) was -1.90%, and its shares lost 10.27% of their value over the last 52 weeks. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $7.182 billion.

Conestoga Capital Advisors stated the following regarding FirstService Corporation (NASDAQ:FSV) in its fourth quarter 2025 investor letter:

"FirstService Corporation (NASDAQ:FSV) is a leading provider of essential property services to residential and commercial customers in North America. Shares detracted from performance after the company reported third-quarter revenues that fell short of consensus expectations, despite meeting earnings per share estimates. Investors expressed concern over softer organic growth and near-term headwinds in certain service lines. We continue to believe the company’s recurring revenue model and leadership position in fragmented markets remain intact for the long term."

FirstService Corporation (NASDAQ:FSV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 25 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the third quarter, compared to 27 in the previous quarter.  While we acknowledge the potential of FirstService Corporation (NASDAQ:FSV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered FirstService Corporation (NASDAQ:FSV) and shared Alger Weatherbie Specialized Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.