Wasatch Global Investors, an asset management company, recently released its third-quarter 2025 “Wasatch Small Cap Growth Strategy” investor letter. The letter highlighted the performance of US small-cap equities, which rallied strongly in the third quarter with the support of the Fed Reserve’s interest rate cut. However, the fund-Investor Class struggled to keep up with the rally, ending the period down -3.17% compared to a 12.19% gain for the Russell 2000 Growth Index.
One of the stocks mentioned in the investor letter was Medpace Holdings, Inc. (NASDAQ:MEDP), 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. As of December 12, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $557.90 per share, with a market capitalization of $15.715 billion.
According to Wasatch Small Cap Growth Strategy, Medpace Holdings, Inc. (NASDAQ:MEDP) was the top contributor to the fund’s 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 saw a significant jump after the company reported strong revenue and earnings growth and raised full-year guidance. The fund believes that Medpace’s results are impressive, especially considering the slowdown in the biotech funding cycle.
Although Medpace Holdings, Inc. (NASDAQ:MEDP) is not on the list of 30 Most Popular Stocks Among Hedge Funds, 43 hedge fund portfolios held the stock at the end of the third quarter, up from 42 in the previous quarter. In the third quarter of 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) reported revenue of $659.9 million, a 23.7% increase year-over-year. While the fund acknowledges the potential of Medpace Holdings, Inc. (NASDAQ:MEDP) as an investment, it believes that certain AI stocks offer greater upside potential and carry less downside risk.
For investors seeking an undervalued AI stock that could benefit from Trump-era tariffs and the onshoring trend, the fund recommends checking out their free report on the best short-term AI stock. This stock stands to benefit significantly from current market trends and could offer substantial returns for investors looking to capitalize on emerging opportunities in the AI sector.
