Madison Investments, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Mid Cap Fund”. The Madison Mid Cap Fund (Class I) declined 4.28% in the quarter, compared to the Russell Midcap Index’s 1.29% return. A copy of the letter can be downloaded here. The first quarter saw a market shift from tech stocks to companies in the physical economy driven by a better economic outlook and AI disruption fears. This transition favored the ‘HALO trade’ (Heavy Assets, Low Obsolescence), benefiting resilient businesses. In March, geopolitical conflicts and rising commodity prices heightened inflation concerns, leading to strong performance in Energy and Materials sectors, while Utilities also gained. This trend posed challenges for the Madison Mid Cap Fund due to its limited exposure to these sectors. In this environment, the fund identifies opportunities in high-quality, underappreciated businesses and is actively investing in them. Please review the Fund’s top five holdings to gain insights into its key selections for 2026.
In its first-quarter 2026 investor letter, Madison Mid Cap Fund highlighted 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 June 29, 2026, ServiceTitan, Inc. (NASDAQ:TTAN) closed at $70.20 per share. One-month return of ServiceTitan, Inc. (NASDAQ:TTAN) was -6.41%, and its shares lost 35.75% over the past 52 weeks. ServiceTitan, Inc. (NASDAQ:TTAN) has a market capitalization of $6.69 billion.
Madison Mid Cap Fund stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its Q1 2026 investor letter:
“The bottom five detractors for the quarter were Gartner, Brown & Brown, ServiceTitan, Inc. (NASDAQ:TTAN), Thor Industries, and Medpace Holdings. ServiceTitan was also down as investor fears around AI disrupting software businesses led to indiscriminate selling across the industry. We believe both of these stocks are being unfairly punished and over time the results of each business will prove their resiliency to the AI threat.
We added to current holdings ServiceTitan, Brown & Brown, Moelis, and Liberty Media- Formula One. As mentioned above, ServiceTitan and Brown & Brown were down on AI concerns, which we believe provided an opportunity to add. ServiceTitan dominates its niche of residential and commercial contractors with low-cost software that provides essential services, thus making it very sticky and difficult to displace.”
ServiceTitan, Inc. (NASDAQ:TTAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the first quarter, compared to 48 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 Osterweis Opportunity Fund’s insights on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
