Palm Valley Capital Management has released its third-quarter 2026 investor letter for the Palm Valley Capital Fund. The fund gained 1.61% during the quarter, outperforming the S&P SmallCap 600 Index, which declined 7.93%, and the Morningstar Small Cap Total Return Index, which fell 5.60%. Treasury bills accounted for 75.5% of the fund’s assets at quarter-end, while its equity holdings returned 4.8%.
The letter examines a market in which small-cap stocks lagged their larger peers even as the S&P 500 approached its highs. The managers draw parallels between sharp stock-price swings in a rising market and conditions during the technology bubble. They also question whether policies aimed at preserving today’s wealth come at the expense of future prosperity, arguing that rising asset prices deepen economic disparities while shifting financial burdens to future generations. Citing federal debt exceeding $40 trillion, the managers frame the debate around how wealth and obligations are distributed across generations, alongside the familiar divide between rich and poor.
Kelly Services Inc. (NASDAQ:KELYA) is a staffing and workforce solutions company that helps employers recruit, place, and manage workers across industries. Its services include temporary staffing, permanent placement, outsourcing, and specialized recruitment for science, engineering, technology, and education roles. On October 29, 2026, its Class A shares closed at $16.26, a decrease of 1.28% from the previous session, giving the company a market capitalization of approximately $564.74 million.
Here’s what Palm Valley Capital Management has to say about Kelly Services Inc. (NASDAQ:KELYA):
“During the quarter, the three positions contributing the most to the Fund’s return were Kelly Services (ticker: KELYA), ManpowerGroup (ticker: MAN), and Amdocs (ticker: DOX). Kelly and Manpower shares were bid on a developing recovery in the staffing sector, which has experienced improved volumes in 2026 for the first time in several years. Manpower’s constant currency growth in Q2 was +6%, supported by strong U.S. demand. Kelly’s second quarter results improved significantly sequentially and exceeded guidance.”
Kelly Services, Inc. (NASDAQ: KELYA) announced on October 29, 2026, that it added generative AI assistance, voice-enabled hiring requests, and live labor-market data to its Sevayo workforce technology platform. The enhancements are designed to help hiring managers evaluate staffing options, compare market pay rates, and initiate recruitment requests more efficiently. The platform also connects information across staffing, recruitment, and human resources systems to improve visibility into workforce activity and spending.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
