What Makes Medpace Holdings (MEDP) an Investment Choice?

Giverny Capital Asset Management, LLC, an investment management company, recently published its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio generated good results in the third quarter and returned 6.78% compared to 8.12% for the S&P 500. YTD, the fund returned 12.57% compared to 14.83% for the index. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.

In its third-quarter 2025 investor letter, Giverny Capital Asset Management 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 -8.89%, and its shares gained 60.60% of their value over the last 52 weeks. On December 08, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $549.17 per share, with a market capitalization of $15.47billion.

Giverny Capital Asset Management stated the following regarding Medpace Holdings, Inc. (NASDAQ:MEDP) in its third quarter 2025 investor letter:

“I’ll give an example of why I am happy to be invested alongside these types of managers. Last year, we acquired shares in Medpace Holdings, Inc. (NASDAQ:MEDP) at about $381. Our partners in Montreal owned Medpace and knew it well, and the more John Bleday and I studied the business, the more impressed we were. Medpace is a contract research organization that does clinical trials for early stage biopharmaceutical companies. These are often start-ups with a promising drug compound that need help conducting trials on hundreds of patients to demonstrate efficacy.

After we bought the stock, there were concerns that the US Food & Drug Administration under Robert F. Kennedy, Jr. would be hostile to new drug discovery, and that this hostility could cause funding for drug trials to dry up. Medpace suffered some cancellations in its backlog and shares dropped steadily towards $300. As they dropped, we bought more. Throughout, we believed the company was a credible communicator and took notice that it consistently said business was okay and that it would be adding workers to prepare for future growth.

In July, Medpace released a terrific earnings report. In that report, it disclosed that it had repurchased 9% of its outstanding shares at depressed prices in the second quarter. The stock rose more than 50% in one day. Subsequently, it rose even more, closing on September 30 at $514 and becoming our sixth largest holding…” (Click here to read the full text)

In another article, we covered Medpace Holdings, Inc. (NASDAQ:MEDP) and shared Madison Mid Cap Fund’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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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