Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for “Madison Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index ended an incredibly successful three-year run with a full-year return of 10.6%, amounting to an annual increase of more than 14%. The market favored more volatile and speculative companies in 2025. This market environment poses challenges for the Madison Mid Cap portfolio, which is focused on high-quality, profitable businesses. Historically, this focus has supported long-term investment success, and the firm remains committed to it, is optimistic about the opportunities this year has presented, and has actively capitalized on them. Against this backdrop, the Fund decreased 1.2% in Q4 2025, lagging the Russell Midcap Index’s 0.2% increase. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks like ServiceTitan, Inc. (NASDAQ:TTAN). ServiceTitan, Inc. (NASDAQ:TTAN) is an American cloud-based software company that provides solutions for connecting and managing a range of business workflows. On March 10, 2026, ServiceTitan, Inc. (NASDAQ:TTAN) stock closed at $77.90 per share. One-month return of ServiceTitan, Inc. (NASDAQ:TTAN)) was 28.25%, and its shares lost 8.92% over the past 52 weeks. ServiceTitan, Inc. (NASDAQ:TTAN) has a market capitalization of $7.3 billion.
Madison Mid Cap Fund stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its fourth quarter 2025 investor letter:
“We added four new investments to the portfolio: Bio-Techne, ServiceTitan, Inc. (NASDAQ:TTAN), A.O. Smith, and MSA Safety. ServiceTitan is the dominant provider of software to residential trade contractors, such as HVAC technicians, plumbers, and pest control employees. Its software helps run all aspects of their business, including dispatching, marketing, invoicing, and estimating, and the company boasts high retention rates and strong recurring revenue. We see a long runway of growth ahead as penetration among contractors has lagged other industries. Investor caution regarding near-term growth rates provided us with a buying opportunity.”
ServiceTitan, Inc. (NASDAQ:TTAN)) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 48 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of ServiceTitan, Inc. (NASDAQ:TTAN)) 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 ServiceTitan, Inc. (NASDAQ:TTAN)) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ServiceTitan, Inc. (NASDAQ:TTAN) and shared a list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 2025 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.
