Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for “Madison Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index ended an incredibly successful three-year run with a full-year return of 10.6%, amounting to an annual increase of more than 14%. The market favored more volatile and speculative companies in 2025. This market environment poses challenges for the Madison Mid Cap portfolio, which is focused on high-quality, profitable businesses. Historically, this focus has supported long-term investment success, and the firm remains committed to it, is optimistic about the opportunities this year has presented, and has actively capitalized on them. Against this backdrop, the Fund decreased 1.2% in Q4 2025, lagging the Russell Midcap Index’s 0.2% increase. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks like Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology Incorporated (NASDAQ:MCHP) is an American semiconductor company that develops, manufactures, and sells smart, connected, and secure embedded control solutions. On March 10, 2026, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $65.33 per share. One-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was -19.10%, and its shares gained 25.88% over the past 52 weeks. Microchip Technology Incorporated (NASDAQ:MCHP) has a market capitalization of $35.35 billion.
Madison Mid Cap Fund stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its fourth quarter 2025 investor letter:
“We sold two holdings, Trex and Microchip Technology Incorporated (NASDAQ:MCHP). Microchip Technology is one of the leading analog and microcontroller companies, benefiting from long product lifecycles and diverse end markets. Microchip struggled with supply chain challenges over the past 24 months as lengthening production lead times led to customer over-ordering. The company’s founder, Steve Sanghi returned to the CEO role this past summer and has been successful in reducing excess inventory and positioning the company for a recovery in market share. We are encouraged by Steve’s action plans, but as the stock’s valuation has recovered, we elected to sell our small stake.”
Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the fourth quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of Microchip Technology Incorporated (NASDAQ:MCHP) 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 Microchip Technology Incorporated (NASDAQ:MCHP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Microchip Technology Incorporated (NASDAQ:MCHP) 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.
