Madison Investments, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Mid Cap Fund”. The Madison Mid Cap Fund (Class I) declined 4.28% in the quarter, compared to the Russell Midcap Index’s 1.29% return. A copy of the letter can be downloaded here. The first quarter saw a market shift from tech stocks to companies in the physical economy driven by a better economic outlook and AI disruption fears. This transition favored the ‘HALO trade’ (Heavy Assets, Low Obsolescence), benefiting resilient businesses. In March, geopolitical conflicts and rising commodity prices heightened inflation concerns, leading to strong performance in Energy and Materials sectors, while Utilities also gained. This trend posed challenges for the Madison Mid Cap Fund due to its limited exposure to these sectors. In this environment, the fund identifies opportunities in high-quality, underappreciated businesses and is actively investing in them. Please review the Fund’s top five holdings to gain insights into its key selections for 2026.
In its first-quarter 2026 investor letter, Madison Mid Cap Fund highlighted Formula One Group (NASDAQ:FWONK). Formula One Group (NASDAQ:FWONK) is a motorsports company holding commercial rights for the Fédération Internationale de l’Automobile (FIA) Formula One World Championship. On June 29, 2026, Formula One Group (NASDAQ:FWONK) closed at $93.48 per share. One-month return of Formula One Group (NASDAQ:FWONK) was 4.66%, and its shares lost 8.19% over the past 52 weeks. Formula One Group (NASDAQ:FWONK) has a market capitalization of $23.43 billion.
Madison Mid Cap Fund stated the following regarding Formula One Group (NASDAQ:FWONK) in its Q1 2026 investor letter:
“We increased our position in Formula One Group (NASDAQ:FWONK) as the stock sank following Iran war induced race cancellations in the Middle East, which we believe will have very little impact on the long-term earnings power of the company.”
Formula One Group Formula One Group (NASDAQ:FWONK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 78 hedge fund portfolios held Formula One Group Formula One Group (NASDAQ:FWONK) at the end of the first quarter, up from 71 in the previous quarter. While we acknowledge the risk and potential of Formula One Group Formula One Group (NASDAQ:FWONK) 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 Formula One Group Formula One Group (NASDAQ:FWONK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Formula One Group Formula One Group (NASDAQ:FWONK) and shared richest hedge fund managers in the world and their top stock picks. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
