Robust Booking Growth Boosted Medpace Holdings (MEDP) in Q3

Headwaters Capital Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter results were mainly focused on AI. The portfolio returned -2.7% (-2.9% net) in the quarter compared to a +5.3% gain for the Russell Mid Cap Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Headwaters Capital 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 7.46%, and its shares gained 49.28% of their value over the last 52 weeks. On October 13, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $527.40 per share, with a market capitalization of $14.816 billion.

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

"Top Contributor: Medpace Holdings, Inc. (NASDAQ:MEDP) +64%. Medpace had a phenomenal quarter highlighted by strong bookings in a difficult biotech funding environment. The strong bookings growth was enhanced by aggressive share repurchases as the company has taken advantage of stock price weakness to repurchase 10% of shares outstanding over the last year. I wrote about MEDP in detail as part of the Q3 ’24 letter when the stock was the largest detractor. The end markets for MEDP are inherently cyclical due to biotech funding, but the company’s disciplined capital allocation and steady market share gains make this a core long-term holding in the HCM portfolio."

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 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.

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.

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