Madison Investments, an investment advisor, released its “Madison Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund (Class Y) returned 5.1% compared to a 5.2% each rise for the Russell 2000 and the Russell 2500 Index. The best-performing sectors of the portfolio were Industrials, Materials, and Financials while Consumer Staples, Information Technology, and Healthcare were the worst-performing sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Small Cap Fund highlighted stocks like Ciena Corporation (NYSE:CIEN) in the second quarter 2023 investor letter. Headquartered in Hanover, Maryland, Ciena Corporation (NYSE:CIEN) provides network and communication infrastructure. On July 18, 2023, Ciena Corporation (NYSE:CIEN) stock closed at $41.58 per share. One-month return of Ciena Corporation (NYSE:CIEN) was -3.41%, and its shares lost 15.57% of their value over the last 52 weeks. Ciena Corporation (NYSE:CIEN) has a market capitalization of $6.216 billion.
Madison Small Cap Fund made the following comment about Ciena Corporation (NYSE:CIEN) in its second quarter 2023 investor letter:
“In Technology, our overweight was a sail in the wind, but two stocks disappointed: Alteryx (AYX) and Ciena Corporation (NYSE:CIEN). Although we continue to hold both stocks, we are closely monitoring the developments at AYX. Some investors fear the rise of artificial intelligence (AI) may pose a headwind to AYX. Although the evidence for this thesis is thin, we will not hesitate to cut our losses should we find this to be the case. Ciena’s fundamentals continue to recover but investors are concerned that the large backlog the company is currently monetizing will not be replenished quickly enough. We believe these fears are unjustified and continue to like this business in the long run as this business is an underappreciated beneficiary of AI infrastructures build outs.”
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Ciena Corporation (NYSE:CIEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Ciena Corporation (NYSE:CIEN) at the end of first quarter which was 33 in the previous quarter.
We discussed Ciena Corporation (NYSE:CIEN) in another article and shared the list of most promising robotics stocks according to analysts. In addition, please check out our hedge fund investor letters Q2 2023 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.
