Here’s Why Polen Capital Sold its Medpace (MEDP) Stake

Polen Capital, an investment management firm, published its “Polen U.S. Small Company Growth Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the first quarter, the Polen U.S. Small Company Growth Composite Portfolio (the “Portfolio”) returned -21.98% gross and -22.18% net of fees, respectively, underperforming the Russell 2000 Growth Index’s (the “Index’) -12.63% return.   Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022. 

In its Q1 2022 investor letter, Polen U.S. Small Company Growth Fund mentioned Medpace Holdings, Inc. (NASDAQ:MEDP) and explained its insights for the company. Founded in 1992, Medpace Holdings, Inc. (NASDAQ:MEDP) is a Cincinnati, Ohio-based clinical contract research organization with a $4.7 billion market capitalization. Medpace Holdings, Inc. (NASDAQ:MEDP) delivered a -32.40% return since the beginning of the year, while its 12-month returns are down by -13.90%. The stock closed at $147.12 per share on June 03, 2022.

Here is what Polen U.S. Small Company Growth Fund has to say about Medpace Holdings, Inc. (NASDAQ:MEDP) in its Q1 2022 investor letter:

“We sold the Portfolio’s position in Medpace due to the potentially challenging biotech funding environment and because the company faces wage inflation that could jeopardize the profitability of its existing contracted business. Combined with a less compelling return potential relative to other Portfolio holdings, based on our research, the sale of Medpace provided us with a good source of funds to apply to what we believed to be more attractive investment opportunities.”

Photo by CDC on Unsplash

Our calculations show that Medpace Holdings, Inc. (NASDAQ:MEDP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Medpace Holdings, Inc. (NASDAQ:MEDP) was in 25 hedge fund portfolios at the end of the first quarter of 2022, compared to 26 funds in the previous quarter. Medpace Holdings, Inc. (NASDAQ:MEDP) delivered a -0.98% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Medpace Holdings, Inc. (NASDAQ:MEDP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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