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 Danaher Corporation (NYSE:DHR). Danaher Corporation (NYSE:DHR) is a healthcare and life science tools company that operates through Biotechnology, Life Sciences, and Diagnostics segments. On June 12, 2026, Danaher Corporation (NYSE:DHR) closed at $180.10 per share. One-month return of Danaher Corporation (NYSE:DHR) was 9.78%, and its shares lost 10.55% over the past 52 weeks. Danaher Corporation (NYSE:DHR) has a market capitalization of $127.47 billion.
Madison Large Cap Fund stated the following regarding Danaher Corporation (NYSE:DHR) in its Q1 2026 investor letter:
“Our two life science tools investments, Danaher Corporation (NYSE:DHR) and Agilent, round out the top five detractors. Both companies reported results broadly consistent with expectations. However, while each respective company’s outlook for 2026 calls for continued end market recovery, it was at a slower pace than investors hoped. Furthermore, investors appear to also have ascribed some level of “AI risk” to these companies on the belief that AI technology could enable customers to simulate research experiments, thus reducing the need to purchase instruments and consumables used for physical experiments in the lab. We believe that there is a low likelihood that this will ultimately occur, and even if it did happen, early-stage R&D activity represents a very small percentage of Agilent and Danaher’s revenue.”
Danaher Corporation (NYSE:DHR) ranks 24 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 110 hedge fund portfolios held Danaher Corporation (NYSE:DHR) at the end of the first quarter, up from 125 in the previous quarter. While we acknowledge the risk and potential of Danaher Corporation (NYSE:DHR) 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 DANAHER CORPORATION (NYSE:DHR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Danaher Corporation (NYSE:DHR) and shared the list of best and cheap stocks to buy. 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.
