Medpace Holdings (MEDP) Generated Strong Results in Q3

Optimist Fund, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned +9.1% in the third quarter compared to 7.9% for the benchmark. The firm focuses on acceleration in several cyclical holdings in the portfolio that have been in multi-year downswings, while the world holds attention on the latest developments in AI. 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, Optimist Fund 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 8.99%, and its shares gained 81.62% of their value over the last 52 weeks. On October 30, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $580.37 per share, with a market capitalization of $16.348 billion.

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

"Medpace Holdings, Inc. (NASDAQ:MEDP) – We initiated a position in Medpace in April. We view it as a market-leading business led by an ambitious, founder/CEO, with substantial long-term growth potential that remains underappreciated by the market. At the time of our purchase, we believed the company was on the verge of a meaningful revenue and profit inflection — creating a highly compelling risk-reward opportunity.

We were fortunate with our timing, as in August Medpace reported one of the strongest quarters I have seen from any company. In Q2 2025, Medpace experienced meaningfully accelerating revenue and profits which had been slowing for the last 6 quarters…” (Click here to read the full text)

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 $659.9 million in the third quarter of 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.

In another article, we covered Medpace Holdings, Inc. (NASDAQ:MEDP) and shared Vulcan Value Partners 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.