Palm Valley Capital Fund Added Kelly Services (KELYA) Amid Solid Operating Performance

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Palm Valley Capital Fund appreciated 0.57% compared to an 8.93% decline in the S&P SmallCap 600 and a 6.08% drop in the Morningstar Small Cap Total Return Index. Cash was 77.6% of Fund assets at the start of the quarter and 76.5% at the conclusion. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first quarter 2025 investor letter, Palm Valley Capital Fund emphasized stocks such as Kelly Services, Inc. (NASDAQ:KELYA). Kelly Services, Inc. (NASDAQ:KELYA) is a staffing solutions provider to various industries. The one-month return of Kelly Services, Inc. (NASDAQ:KELYA) was -10.46%, and its shares lost 51.59% of their value over the last 52 weeks. On April 4, 2025, Kelly Services, Inc. (NASDAQ:KELYA) stock closed at $12.25 per share with a market capitalization of $415.008 million.

Palm Valley Capital Fund stated the following regarding Kelly Services, Inc. (NASDAQ:KELYA) in its Q1 2025 investor letter:

“During the period, we added to our weightings in Kelly Services, Inc. (NASDAQ:KELYA), Resources Connection (ticker: RGP), and Heartland Express (ticker: HTLD). Kelly Services’ stock price has performed as poorly as many other public staffing companies even though the firm’s operating performance has been extremely solid, bucking industry trends.”

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Kelly Services, Inc. (NASDAQ:KELYA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Kelly Services, Inc. (NASDAQ:KELYA) at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the potential of Kelly Services, Inc. (NASDAQ:KELYA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q1 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.