Madison Mid Cap Fund’s Q1 2026 Investor Letter

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. 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.

A copy of Madison Mid Cap Fund’s Q1 2026 investor letter can be downloaded here.

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