Here’s Why Madison Sustainable Equity Fund Sold Automatic Data Processing (ADP)

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund’s performance lagged behind the S&P 500 Index, which returned 7.5% in the quarter, with a very narrow market. Both Sector Allocation and Stock Selection affected the performance of the fund in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Sustainable Equity Fund highlighted stocks like Automatic Data Processing, Inc. (NASDAQ:ADP) in the first quarter 2023 investor letter. Headquartered in Roseland, New Jersey, Automatic Data Processing, Inc. (NASDAQ:ADP) is a global human capital management solutions company. On April 18, 2023, Automatic Data Processing, Inc. (NASDAQ:ADP) stock closed at $217.32 per share. One-month return of Automatic Data Processing, Inc. (NASDAQ:ADP) was 1.90%, and its shares lost 6.58% of their value over the last 52 weeks. Automatic Data Processing, Inc. (NASDAQ:ADP) has a market capitalization of $90.047 billion.

Madison Sustainable Equity Fund made the following comment about Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q1 2023 investor letter:

“We eliminated Automatic Data Processing, Inc. (NASDAQ:ADP) from the portfolio due to concerns that the economy is close to a peak job market and interest income on the company’s float has also peaked along with interest rates. The company’s valuation does not reflect the potential downside in the job market from a weakening economy.”

Automatic Data Processing, Inc. (NASDAQ:ADP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Automatic Data Processing, Inc. (NASDAQ:ADP) at the end of the fourth quarter which was 48 in the previous quarter.

We discussed Automatic Data Processing, Inc. (NASDAQ:ADP) in another article and shared the list of best tech stocks to buy on the dip. In addition, please check out our hedge fund investor letters Q1 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.