ManpowerGroup rises as staffing volumes improve

Palm Valley Capital Management identified ManpowerGroup Inc. (NYSE: MAN) as a leading contributor to its fund's performance in the third quarter of 2026, citing a developing recovery in the staffing sector. The firm's Q3 2026 investor letter for the Palm Valley Capital Fund noted that Manpower shares were bid on improved volumes, marking the first such increase in several years. The fund gained 1.61% during the period, outperforming the S&P SmallCap 600 Index, which fell 7.93%, and the Morningstar Small Cap Total Return Index, which decreased by 5.60%. As of the end of the quarter, 75.5% of the fund's assets were allocated to Treasury bills, while its equity-only performance stood at 4.8%.

ManpowerGroup, which operates under the Manpower, Experis, and Talent Solutions brands, closed at $54.16 on October 02, 2026. The company has a market capitalization of $2.52 billion and posted an approximate 82.17% year-to-date gain. Its shares traded within a 52-week range of $25.15 to $63.88 during this period. The letter highlighted that Manpower's constant currency growth in the second quarter was 6%, supported by strong U.S. demand.

Palm Valley Capital Fund listed Kelly Services (ticker: KELYA) and Amdocs (ticker: DOX) as the other top contributors to its return alongside ManpowerGroup. The letter described high volatility in stocks during a rising market as similar to conditions seen during the tech bubble. It argued that current trends favor protecting present wealth over ensuring future prosperity, a shift that drives wealth redistribution through rising asset prices and societal disparities. The firm pointed to federal debt exceeding $40 trillion as an example of resources consumed today leading to future obligations.

Hedge fund interest in ManpowerGroup has declined recently. Database records show that 26 hedge fund portfolios held the stock at the end of the second quarter, down from 36 in the previous quarter. The company is not currently on the list of the 40 most popular stocks among hedge funds. While acknowledging ManpowerGroup's investment potential, Palm Valley Capital Management stated that certain AI stocks offer greater upside potential and carry less downside risk.