Should You be Excited about Medpace Holdings’ (MEDP) Prospects?

Investment management company Vulcan Value Partners recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a good one for the portfolios. The absolute performance was positive across all the strategies, while the relative performance lagged. In the quarter, the Large Cap Composite returned 4.6% net of fees and expenses, the Small Cap Composite returned 4.1% net, the Focus Composite returned 3.7% net, the Focus Plus composite returned 3.7% and the All-Cap Composite returned 5.5% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Vulcan Value Partners highlighted stocks such as Medpace Holdings, Inc. (NASDAQ:MEDP). Medpace Holdings, Inc. (NASDAQ:MEDP) is a clinical research-based drug and medical device development services, provider. The one-month return of Medpace Holdings, Inc. (NASDAQ:MEDP) was 2.47%, and its shares gained 50.00% of their value over the last 52 weeks. On October 15, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $514.32 per share, with a market capitalization of $14.449 billion.

Vulcan Value Partners stated the following regarding Medpace Holdings, Inc. (NASDAQ:MEDP) in its third quarter 2025 investor letter:

“There were two material contributors to performance: Medpace Holdings, Inc. (NASDAQ:MEDP) and Alphabet Inc. Medpace reported strong results in the second quarter. The company’s revenue grew at a mid-teens rate while operating earnings were up 20% year over year. The management team took advantage of the company’s share price weakness throughout the quarter by repurchasing nearly 6% of the outstanding shares. Importantly, Medpace significantly increased its outlook for revenue and earnings for the full year. The combination of a better biotech funding environment, fewer cancellations, and faster client decision making (among other positive trends) is now positioning the company to drive accelerated growth. This is a notable change from our prior expectation for 2025. Higher operating earnings and a meaningfully lower share count has led to a large increase in our value per share estimate. During the quarter, the share price rose faster than our value and following our discipline we trimmed the position and reallocated capital to more discounted businesses. Today, Medpace’s position size in the portfolio is consistent with its price to value ratio. We continue to be impressed with the company’s performance, and even more excited about its prospects.”

Medpace Holdings, Inc. (NASDAQ:MEDP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Medpace Holdings, Inc. (NASDAQ:MEDP) at the end of the second quarter, the same as in the previous quarter. Medpace Holdings, Inc. (NASDAQ:MEDP) reported revenue of $603.3 million in the second quarter 2025, representing an increase of 14.2% year-over-year. While we acknowledge the risk and potential of Medpace Holdings, Inc. (NASDAQ:MEDP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Medpace Holdings, Inc. (NASDAQ:MEDP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Medpace Holdings, Inc. (NASDAQ:MEDP) and shared Headwaters Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.