Wasatch Global Investors, an asset management company, released its third-quarter 2025 “Wasatch Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. US small-cap equities rallied strongly in the third quarter. The Fed Reserve’s interest rate cut supported the rally. However, the fund-Investor Class struggled to keep up with the rally and ended the period down -3.17% vs. 12.19% gain for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy 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 -4.76%, and its shares gained 59.52% of their value over the last 52 weeks. On December 12, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $557.90 per share, with a market capitalization of $15.715 billion.
Wasatch Small Cap Growth Strategy stated the following regarding Medpace Holdings, Inc. (NASDAQ:MEDP) in its third quarter 2025 investor letter:
“Medpace Holdings, Inc. (NASDAQ:MEDP) was the top contributor to Fund performance. The contract research organization (CRO) provides drug development, clinical trial management and regulatory services to biotech, pharmaceutical and medical device companies. Medpace’s shares jumped after the company reported strong revenue and earnings growth and raised full-year guidance. We believe Medpace’s results are particularly impressive in light of the fact that there’s been a slowdown in the biotech funding cycle.”
Medpace Holdings, Inc. (NASDAQ:MEDP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Medpace Holdings, Inc. (NASDAQ:MEDP) at the end of the third quarter, which was 42 in the previous quarter. Medpace Holdings, Inc. (NASDAQ:MEDP) reported revenue of $659.9 million in the third quarter 2025, representing an increase of 23.7% year-over-year. While we acknowledge the potential of Medpace Holdings, Inc. (NASDAQ:MEDP) 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.
