Palm Valley Capital Management released its fourth-quarter 2025 investor letter for the Palm Valley Capital Fund, showing an appreciation of 0.66%. The Fund’s equity holdings rose by 1.12% and allocated 76.3% to Treasury bills. Top holdings include investments in precious metals like silver. For more details, check the fund’s top five picks for 2025.

In the fourth quarter, Palm Valley Capital Fund highlighted Kelly Services, Inc. (NASDAQ:KELYA), a staffing solutions provider. With a one-month return of -1.70%, Kelly Services, Inc. (KELYA) stock closed at $8.69 per share on January 5, 2026. The company’s shares lost 37.12% over the past 52 weeks.

Palm Valley Capital Fund noted that Kelly Services, Inc. (KELYA) was among the top detractors from performance in the fourth quarter of 2025. The company faced challenges after missing third quarter guidance and providing a weak outlook. Despite industry trends and AI concerns, the Fund believes AI may not be the sole reason for staffing challenges.

Kelly Services, Inc. (NASDAQ:KELYA) was not among the 30 most popular stocks among hedge funds, with 21 hedge fund portfolios holding it in Q3 2025. The company reported revenue of $935 million in Q3 2025, a 9.9% decrease from the previous year. While the potential for Kelly Services, Inc. (KELYA) exists, certain AI stocks may offer better upside potential with less downside risk.

Read more at Yahoo Finance: Here’s Why Kelly Services (KELYA) Slid in Q3