Madison Mid Cap Fund Added Arista Networks (ANET) on a Dip

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) returned 5.2% compared to the 8.5% increase for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Madison Mid Cap Fund highlighted stocks such as Arista Networks, Inc. (NYSE:ANET). Arista Networks, Inc. (NYSE:ANET) is a technology company that engages in the development and distribution of data-driven, client-to-cloud networking solutions. The one-month return of Arista Networks Inc (NYSE:ANET) was 10.06%, and its shares gained 52.59% of their value over the last 52 weeks. On September 18, 2025, Arista Networks Inc. (NYSE:ANET) stock closed at $146.66 per share, with a market capitalization of $184.332 billion.

Madison Mid Cap Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its second quarter 2025 investor letter:

“The top five contributors for the quarter were Amphenol, Microchip Technology, Arista Networks Inc (NYSE:ANET, MKS, and Liberty Formula One. Shares of Arista Networks also gained on the market’s renewed enthusiasm for everything AI related in the quarter. The company continues to produce strong growth and profitability in its core networking business and is well positioned with attractive products for AI customers.

We added to three stocks during the quarter, CDW, Arista Networks, and Floor and Decor. The stock price of Arista Networks fell early in the quarter when investors temporarily soured on AI-exposed investments, particularly those exposed to infrastructure build out. This drove valuation in Arista to what we viewed as compelling levels.”

Jim Cramer on Arista Networks Inc (ANET) Stock: “I Don't Understand Why It's Down This Much”

Arista Networks Inc (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 81 hedge fund portfolios held Arista Networks Inc (NYSE:ANET) at the end of the second quarter, up from 75 in the previous quarter. While we acknowledge the risk and potential of Arista Networks Inc (NYSE:ANET) 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 Arista Networks Inc (NYSE:ANET) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Arista Networks Inc (NYSE:ANET) and shared the list of best fast growth stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.