Headwaters Capital Management released its Q3 2025 investor letter, focusing 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. Check the fund’s top 5 holdings for 2025 picks. Download the letter here.

In the investor letter, Headwaters Capital Management highlighted Medpace Holdings, Inc. (NASDAQ:MEDP), a clinical research-based drug and medical device development services provider. MEDP had a one-month return of 7.46% and gained 49.28% over the last 52 weeks. As of October 13, 2025, MEDP closed at $527.40 per share with a market cap of $14.816 billion.

The Q3 2025 investor letter praised Medpace Holdings, Inc. (NASDAQ:MEDP) as a top contributor, with a 64% increase. The company saw strong bookings and aggressive share repurchases, making it a core long-term holding in the HCM portfolio. MEDP’s disciplined capital allocation and market share gains were highlighted.

Medpace Holdings, Inc. (NASDAQ:MEDP) is not among the 30 Most Popular Stocks Among Hedge Funds. However, 42 hedge fund portfolios held MEDP at the end of Q2 2025. MEDP reported revenue of $603.3 million in Q2 2025, a 14.2% year-over-year increase. While MEDP shows investment potential, certain AI stocks may offer greater upside with less downside risk.

Read more at Yahoo Finance: Robust Booking Growth Boosted Medpace Holdings (MEDP) in Q3