Madison Large Cap Fund Reports Modest Q1 Loss While Beating S&P 500
The firm says strong semiconductor and industrial earnings drove relative gains, prompting valuation trims of cyclicals and an exit from Starbucks as prices rose.
Overview
- Madison published its Q1 2026 investor letter in mid-June reporting a 2.7% loss for the Madison Large Cap Fund that outperformed the S&P 500’s 4.33% decline.
- The letter identifies Keysight, Analog Devices, Texas Instruments, Deere, and PACCAR as the quarter’s top contributors, with semiconductor test gear and datacenter demand cited as key drivers.
- Madison links market moves to a rotation from mega-cap tech into the so-called physical economy driven by investor worries about AI disruption and higher commodity prices tied to Middle East tensions.
- The fund said it modestly trimmed holdings in Deere and PACCAR as valuations began to price a profit recovery and sold its Starbucks stake because expected margin gains looked already reflected in the stock price.
- Third-party reporting supplied hedge-fund ownership counts and company figures that back Madison’s view, for example Keysight revenue growth and ADI and PACCAR quarterly results that supported the fund’s attributions.