Here’s Why Madison Small Cap Fund Sold Xometry (XMTR)

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 Xometry, Inc. (NASDAQ:XMTR) in the fourth quarter 2023 investor letter. Headquartered in North Bethesda, Maryland, Xometry, Inc. (NASDAQ:XMTR) is an online marketplace for manufacturing solutions.  On January 16, 2024, Xometry, Inc. (NASDAQ:XMTR) stock closed at $31.20 per share. One-month return of Xometry, Inc. (NASDAQ:XMTR) was 4.80%, and its shares gained 9.98% of their value over the last 52 weeks. Xometry, Inc. (NASDAQ:XMTR) has a market capitalization of $1.5 billion.

Madison Small Cap Fund stated the following regarding Xometry, Inc. (NASDAQ:XMTR) in its fourth quarter 2023 investor letter:

“We placed Magnite on watch after disappointing Q3 guidance, and after tepid Q3 results, we sold the stock. We sold Xometry, Inc. (NASDAQ:XMTR) due to our concern about the cyclical nature of its services in the current economic environment. Both Magnite and Xometry held promise given the size of the opportunity for each of their respective platforms, but we ultimately soured on their ability to capitalize on the opportunity economically.”

A wide shot of a large manufacturing facility, with workers bustling around the machinery.

Xometry, Inc. (NASDAQ:XMTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Xometry, Inc. (NASDAQ:XMTR) at the end of third quarter which was 16 in the previous quarter.

We discussed Xometry, Inc. (NASDAQ:XMTR) in another article and shared the list of Cathie Wood stocks that are on sale. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 15 States With the Highest Income Taxes in the US
• 20 Worst States for Dividend Income Investors
• Best Malpractice Lawyers in Each of 30 Biggest Cities in the US

Disclosure: None. This article is originally published at Insider Monkey.