10 Best Small-Cap Value Stocks to Buy According to Bares Capital

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6. Medpace Holdings, Inc. (NASDAQ:MEDP)

Bares Capital Management’s Stake: $57 Million

Medpace Holdings, Inc. (NASDAQ:MEDP) is a relatively recent addition to the 13F portfolio of Bares Capital. The fund first disclosed a stake in the company back in the first quarter of 2025. This position comprised more than 37,000 shares. The fund added to this stake by over 300% in the next quarter, growing the holding to more than 157,000 shares. Filings for the third quarter of 2025 show that the fund owned 111,000 shares in the firm, down close to 30% compared to filings for the previous quarter. Medpace provides clinical research-based drug and medical device development services in North America, Europe, Asia, South America, Africa, and Australia. The company offers a suite of services supporting the clinical development process from Phase I to Phase IV in various therapeutic areas.

Medpace Holdings, Inc. (NASDAQ:MEDP) consistently operates with higher margins than its larger Contract Research Organization peers. In Q1 2026, the company reported a backlog conversion rate of 23.3%, an improvement that signals highly efficient project execution. While other CROs struggle with rising labor costs, Medpace has managed to grow revenue at a much faster rate than its headcount, over 26.5% revenue versus over 5.7% headcount, a productivity alpha that attracts hedge funds focused on operating leverage. The firm also has an attractive capital return program. In 2025, Medpace ramped up share repurchases to $912.9 million, up from just $174 million the previous year.

While we acknowledge the potential of MEDP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MEDP and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see 5 Best Small-Cap Value Stocks to Buy According to Bares Capital.

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