Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the market saw slight improvements in previously lagging sectors like Healthcare, Financials, and Consumer Discretionary. Still, mega-cap technology companies remained the primary drivers of the S&P 500’s overall return, indicating high stock concentration. Against this backdrop, the Madison Large Cap Fund (Class I) appreciated 3.43% compared to the S&P 500 Index’s 2.65% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks like PACCAR Inc (NASDAQ:PCAR). PACCAR Inc (NASDAQ:PCAR) is a light, medium, and heavy-duty commercial trucks manufacturer headquartered in Bellevue, Washington. On February 24, 2026, PACCAR Inc (NASDAQ:PCAR) stock closed at $126.25 per share. One-month return of PACCAR Inc (NASDAQ:PCAR) was 2.59%, and its shares gained 19.07% over the past 52 weeks. PACCAR Inc (NASDAQ:PCAR) has a market capitalization of $66.394 billion.
Madison Large Cap Fund stated the following regarding PACCAR Inc (NASDAQ:PCAR) in its fourth quarter 2025 investor letter:
“The top five contributors for the quarter were Alphabet, Parker-Hannifin, Keysight Technologies, Danaher, and PACCAR Inc (NASDAQ:PCAR). Improving end market conditions was also the theme at Danaher and PACCAR. At PACCAR, a heavy duty truck manufacturer, current results continued to be pressured by the depressed end market environment, but tariff relief, environmental regulations, and a cyclical end market recovery point to results improving from here.”
PACCAR Inc (NASDAQ:PCAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held PACCAR Inc (NASDAQ:PCAR) at the end of the fourth quarter, compared to 34 in the previous quarter. In Q4 2025, PACCAR Inc (NASDAQ:PCAR) reported revenues of $6.8 billion, and net income of $557 million. While we acknowledge the risk and potential of PACCAR Inc (NASDAQ:PCAR) 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 PACCAR Inc (NASDAQ:PCAR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered PACCAR Inc (NASDAQ:PCAR) and shared a list of best NASDAQ dividend stocks to buy. 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.
