Madison Investments, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Large Cap Fund”. A copy of the letter is available to download here. The Madison Large Cap Fund (Class I) declined 2.7% in the quarter, outperforming the S&P 500’s -4.33% return. The fund focuses on long-term capital appreciation. The quarter saw a shift in the equity market beyond the mega-cap technology stocks into physical economy stocks, influenced by fears of AI disruption. Additionally, rising commodity prices due to the Middle East conflict reignited inflation concerns, benefiting sectors such as Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not invest in, impacting its relative performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Madison Large Cap Fund highlighted Analog Devices, Inc. (NASDAQ:ADI). Analog Devices, Inc. (NASDAQ:ADI) is a US-based semiconductor company that engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystems products. On June 15, 2026, Analog Devices, Inc. (NASDAQ:ADI) closed at $427.58 per share. One-month return of Analog Devices, Inc. (NASDAQ:ADI) was 3.82%, and its shares gained 89.13% over the past 52 weeks. Analog Devices, Inc. (NASDAQ:ADI) has a market capitalization of $208.27 billion.
Madison Large Cap Fund stated the following regarding Analog Devices, Inc. (NASDAQ:ADI) in its Q1 2026 investor letter:
“The top five contributors for the quarter were Keysight Technologies, Analog Devices, Inc. (NASDAQ:ADI), Texas Instruments, Deere, and PACCAR. Analog Devices and Texas Instruments reported strong results and a good outlook due to the concurrent improvement of end market conditions and demand for products used in datacenters.”
Analog Devices, Inc. (NASDAQ:ADI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 109 hedge fund portfolios held Analog Devices, Inc. (NASDAQ:ADI) at the end of the first quarter, up from 86 in the previous quarter. In Q2 FY 2026, Analog Devices, Inc. (NASDAQ:ADI) reported revenue of, $3.62 billion, growing 15% sequentially and 37% year-over-year. While we acknowledge the risk and potential of Analog Devices, Inc. (NASDAQ:ADI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANALOG DEVICES, INC. (NASDAQ:ADI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Analog Devices, Inc. (NASDAQ:ADI) and shared the list of best American stocks to buy and hold for the next decade. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
