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.
Amdocs Limited (NASDAQ:DOX) is a software and services company serving telecommunications, media, entertainment, and other service providers worldwide. It develops and manages technology platforms that support customer experience, business operations, network management, and cloud services, including solutions incorporating artificial intelligence. On October 29, 2026, its shares closed at $62.22, an increase of 0.02% from the previous session, giving the company a market capitalization of approximately $6.50 billion.
Here’s what Palm Valley Capital Management has to say about Amdocs Limited (NASDAQ:DOX):
“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). Amdocs’ shares partly rebounded after a SaaSpocalypse smashing earlier in the year. The business is mature and highly cash generative. Management is responding to the possibility that AI will pressure billed revenue by expanding its scope of responsibility for customers, using automation to streamline the cost of delivery, and potentially expanding into a new industry vertical outside of telecom. Amdocs announced a 10-year strategic engagement with Liberty Latin America to manage and transform its entire IT ecosystem through Amdocs’ agentic (AI) operating system, which they believe could be a springboard for future deals utilizing AI capabilities. Looking ahead over the medium term, our Amdocs base case is for minimal top line growth at good margins.”
Amdocs Limited (NASDAQ: DOX) announced on October 8, 2026, that Premiere Digital acquired its Vubiquity business, a provider of media supply-chain and content licensing services. The transaction closed the same day, with financial terms undisclosed. Management said the divestiture will sharpen the company’s focus on its AI-agent strategy, led by Amdocs aOS, its operating system designed to help telecommunications companies modernize and automate their operations.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
