Here's Why Bentley Systems (BSY) Traded Lower in Q4

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Mid Cap Strategy returned -5.75% net of fees compared to the Russell Midcap Growth Index’s -3.70% return. The underperformance was driven by negative stock selection in the Technology and Industrials sectors, while positive sector allocation effects partially eased underperformance. The Mid Cap Composite returned -4.73% net of fees for the full year 2025, trailing the benchmark return of 8.66%. 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 Bentley Systems, Incorporated (NASDAQ:BSY). Headquartered in Exton, Pennsylvania, Bentley Systems, Incorporated (NASDAQ:BSY) is an infrastructure engineering software solutions provider. On February 19, 2026, Bentley Systems, Incorporated (NASDAQ:BSY) stock closed at $34.17 per share. One-month return of Bentley Systems, Incorporated (NASDAQ:BSY) was -12.02%, and its shares lost 25.05% over the past 52 weeks. Bentley Systems, Incorporated (NASDAQ:BSY) has a market capitalization of $10.375 billion.

Conestoga Capital Advisors stated the following regarding Bentley Systems, Incorporated (NASDAQ:BSY) in its fourth quarter 2025 investor letter:

"Bentley Systems, Incorporated (NASDAQ:BSY) provides infrastructure engineering software used in the design and operation of transportation, utilities, and industrial assets. The stock traded lower as revenue growth decelerated modestly and margins were affected by increased investment in product development and go-to market initiatives. Concerns around project timing and public-sector spending also weighed on sentiment. Despite durable demand for infrastructure software, the market reacted to near-term execution and growth variability."

Bentley Systems, Incorporated (NASDAQ:BSY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Bentley Systems, Incorporated (NASDAQ:BSY) at the end of the third quarter, compared to 28 in the previous quarter. While we acknowledge the potential of Bentley Systems, Incorporated (NASDAQ:BSY) 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 Bentley Systems, Incorporated (NASDAQ:BSY) and shared a list of oversold NASDAQ stocks to invest in. 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.