Madison Investments, an investment advisor, released its “Madison Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The small-cap market rebounded in the fourth quarter, with the Russell 2000 Index rising 14%, following a benign inflation report in October. In the fourth quarter, the fund (Class Y) returned 11.2% underperforming the benchmark’s 14.0% return. The fund returned 16.1% YTD compared to a 16.9% return for the benchmark. The broader index, the Russell 2500, posted a 13.4% quarterly return and a 17.4% annual return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Small Cap Fund featured stocks such as Confluent, Inc. (NASDAQ:CFLT) in its Q4 2023 investor letter. Headquartered in Mountain View, California, Confluent, Inc. (NASDAQ:CFLT) is a data streaming platform. On January 16, 2024, Confluent, Inc. (NASDAQ:CFLT) stock closed at $22.59 per share. One-month return of Confluent, Inc. (NASDAQ:CFLT) was -4.32%, and its shares gained 6.36% of their value over the last 52 weeks. Confluent, Inc. (NASDAQ:CFLT) has a market capitalization of $6.955 billion.
Madison Small Cap Fund stated the following regarding Confluent, Inc. (NASDAQ:CFLT) in its fourth quarter 2023 investor letter:
“Software vendor New Relic was acquired by a private equity consortium for an 18% premium. We decided to sell the position prior to the deal closing to fund the purchase of a new software investment in Confluent, Inc. (NASDAQ:CFLT). Confluent’s software provides the plumbing that connects a company’s various cloud infrastructure architectures to its proprietary data, making the dream of real-time data transfer and decision making a reality. Confluent has no competition and boasts a cash rich, debt free balance sheet, is profitable, and generates free cash flow. We believe CFLT is a strategic asset and has the potential to be a materially larger company. we conservatively assess its private market value (PMV) at $28.”
A team of consultants in suits, discussing the importance of stream governance for real-time data.
Confluent, Inc. (NASDAQ:CFLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Confluent, Inc. (NASDAQ:CFLT) at the end of third quarter which was 36 in the previous quarter.
We discussed Confluent, Inc. (NASDAQ:CFLT) in another article and shared the list of best mid-cap growth stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
