Vita Coco Company (COCO) Gained from Strong Momentum and Outpaced Revenue Growth

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. US equities experienced solid returns in 2025, with double-digit gains across all major indices. A copy of the letter can be downloaded here. In 2025, the Conestoga Micro Cap Composite met its purpose of preserving capital during negative market returns and capturing upside during strong market returns. Micro Caps faced significant volatility in 2025. During the course of events, Conestoga Micro Cap Composite returned -1.91% net of fees in the fourth quarter and 16.24% net of fees for the full year 2025, trailing the Russell Microcap Growth Index’s 2.14% and 21.84% gains in the fourth quarter and full year, respectively. 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 like The Vita Coco Company, Inc. (NASDAQ:COCO). The Vita Coco Company, Inc. (NASDAQ:COCO) is a non-alcoholic beverage company that specializes in the manufacturing and distribution of coconut water products under the Vita Coco brand name. On February 19, 2026, the Vita Coco Company, Inc. (NASDAQ:COCO) stock closed at $51.76 per share. One-month return of The Vita Coco Company, Inc. (NASDAQ:COCO) was -1.03%, and its shares gained 37.73% over the past 52 weeks. The Vita Coco Company, Inc. (NASDAQ:COCO) has a market capitalization of $2.948 billion.

Conestoga Capital Advisors stated the following regarding The Vita Coco Company, Inc. (NASDAQ:COCO) in its fourth quarter 2025 investor letter:

"The Vita Coco Company, Inc. (NASDAQ:COCO) develops and markets coconut water and better for-you beverage products. Shares advanced as brand momentum remained strong and revenue growth outpaced expectations. Improved pricing discipline and cost efficiencies supported margin expansion, while international and adjacent product growth enhanced the outlook. Investors rewarded the company’s category leadership and its ability to translate brand strength into consistent cash generation."

The Vita Coco Company, Inc. (NASDAQ:COCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 28 hedge fund portfolios held The Vita Coco Company, Inc. (NASDAQ:COCO) at the end of the third quarter, compared to 29 in the previous quarter. While we acknowledge the potential of The Vita Coco Company, Inc. (NASDAQ:COCO) 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 The Vita Coco Company, Inc. (NASDAQ:COCO) and shared a bullish thesis 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.

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