Madison Small Cap Fund Sold Hillman Solutions Corp. (HLMN) for Better Opportunities

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started as a continuation of the first quarter. As the liberation day tariffs were catastrophic, sending both equities and treasuries steeply lower. Later, the administration set a pause in the tariff implementation, which led equities to rebound, supported by better-than-expected macroeconomic data, particularly regarding inflation and employment. The Russell 2000 Index is up 8.5% for the quarter and down only 1.79% year-to-date. The Madison Small Cap Fund (class Y) returned 4.42% in the quarter, lagging the Russell 2000 and Russell 2500. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Madison Small Cap Fund highlighted stocks such as Hillman Solutions Corp. (NASDAQ:HLMN). Hillman Solutions Corp. (NASDAQ:HLMN) offers hardware-related products and related merchandising services. The one-month return of Hillman Solutions Corp. (NASDAQ:HLMN) was -1.34%, and its shares lost 10.32% of their value over the last 52 weeks. On September 17, 2025, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $9.52 per share, with a market capitalization of $1.889 billion.

Madison Small Cap Fund stated the following regarding Hillman Solutions Corp. (NASDAQ:HLMN) in its second quarter 2025 investor letter:

“Hillman Solutions Corp. (NASDAQ:HLMN) is a home and hardware distribution company whose two largest customers are Home Depot and Lowe’s. We decided to exit HLMN in favor of GMS, which has more formidable and durable moats, in our opinion, and more visible long term growth opportunities.”

Is Hillman Solutions Corp. (HLMN) The Most Undervalued Stock With Smart Money Ratings?

Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of the second quarter, compared to 21 in the previous quarter. In the second quarter of 2025, Hillman Solutions Corp. (NASDAQ:HLMN) reported net sales of $402.8 million, reflecting a 6.2% increase compared to the second quarter of 2024. While we acknowledge the risk and potential of Hillman Solutions Corp. (NASDAQ:HLMN) 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 Hillman Solutions Corp. (NASDAQ:HLMN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Hillman Solutions Corp. (NASDAQ:HLMN) and shared Conestoga Capital Advisors’ views on the company in the previous year. 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.