Here's Why Medpace (MEDP) Shares Roared in 2025

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted Medpace Holdings, Inc. (NASDAQ:MEDP) as one of its leading contributors. 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 3.86%, and its shares gained 69.86% of their value over the last 52 weeks. On January 29, 2026, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $593.07 per share, with a market capitalization of $16.706 billion.

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

"Medpace Holdings, Inc. (NASDAQ:MEDP) is a clinical research organization whose stock dipped on fears that funding for biopharmaceutical drug trials would dry up, and then roared after the funding did not, in fact, dry up. Medpace has outstanding management and bought back about 9% of its shares earlier in the year when the stock price was weaker."

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.

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 Q4 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.