Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Palm Valley Capital Fund appreciated 0.82% compared to a 4.90% gain for the S&P SmallCap 600 and a 7.28% rise in the Morningstar Small Cap Total Return Index. Cash was 76.7% of Fund assets at the start of the quarter and 73.6% at the conclusion. Year-to-date, the fund gained 1.39% compared to a 4.46% decline for the S&P SmallCap 600 and a 0.75% rise for the Morningstar Small Cap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Healthcare Services Group, Inc. (NASDAQ:HCSG). Headquartered in Bensalem, Pennsylvania, Healthcare Services Group, Inc. (NASDAQ:HCSG) engages in managing housekeeping, laundry, linen, facility maintenance, and dietary services within the healthcare sector. The one-month return of Healthcare Services Group, Inc. (NASDAQ:HCSG) was 1.30%, and its shares gained 41.61% of their value over the last 52 weeks. On July 7, 2025, Healthcare Services Group, Inc. (NASDAQ:HCSG) stock closed at $14.77 per share, with a market capitalization of $1.077 billion.
Palm Valley Capital Fund stated the following regarding Healthcare Services Group, Inc. (NASDAQ:HCSG) in its second quarter 2025 investor letter:
“The Fund acquired four new names during the second quarter: Healthcare Services Group, Inc. (NASDAQ:HCSG), Chord Energy (ticker: CHRD), RPC (ticker: RES), and Papa John’s International (ticker: PZZA).
