Overview
- Madison Mid Cap Fund returned 1.9% in Q3 2025 versus a 5.3% gain for the Russell Midcap Index, while the Madison Small Cap Fund fell 1.3% and materially underperformed benchmarks.
- Tech exposure led contributors, with Amphenol’s sales up 53% to $6.194 billion and MKS Instruments posting $988 million in revenue, up 2% sequentially and 10% year over year.
- The team trimmed Arista Networks and MKS on elevated valuations and exited GCI Liberty shortly after its spin-out due to modest growth prospects and small size.
- Portfolio additions included Eagle Materials, with an intrinsic value estimate of $269 per share, and Hexcel, with an estimated intrinsic value of $85.
- Small-cap detractors were driven by company-specific issues, including Primo’s Texas tornado and integration disruptions, a staples rerating that pressured Simply Good Foods, and weak end markets at WillScot despite a $46 intrinsic value estimate.