Madison Small Cap Fund Sold Magnite (MGNI) on Disappointing Q3 Guidance

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The small-cap market rebounded in the fourth quarter, with the Russell 2000 Index rising 14%, following a benign inflation report in October. In the fourth quarter, the fund (Class Y) returned 11.2% underperforming the benchmark’s 14.0% return. The fund returned 16.1% YTD compared to a 16.9% return for the benchmark. The broader index, the Russell 2500, posted a 13.4% quarterly return and a 17.4% annual return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Small Cap Fund featured stocks such as Magnite, Inc. (NASDAQ:MGNI) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Magnite, Inc. (NASDAQ:MGNI) is an independent sell-side advertising platform.  On January 16, 2024, Magnite, Inc. (NASDAQ:MGNI) stock closed at $8.75 per share. One-month return of Magnite, Inc. (NASDAQ:MGNI) was -8.38%, and its shares lost 7.01% of their value over the last 52 weeks. Magnite, Inc. (NASDAQ:MGNI) has a market capitalization of $1.206 billion.

Madison Small Cap Fund stated the following regarding Magnite, Inc. (NASDAQ:MGNI) in its fourth quarter 2023 investor letter:

“We placed Magnite, Inc. (NASDAQ:MGNI) on watch after disappointing Q3 guidance, and after tepid Q3 results, we sold the stock. We sold Xometry due to our concern about the cyclical nature of its services in the current economic environment. Both Magnite and Xometry held promise given the size of the opportunity for each of their respective platforms, but we ultimately soured on their ability to capitalize on the opportunity economically.”

An experienced advertiser analyzing the programmatic advertising inventory space.

Magnite, Inc. (NASDAQ:MGNI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Magnite, Inc. (NASDAQ:MGNI) at the end of third quarter which was 17 in the previous quarter.

We discussed Magnite, Inc. (NASDAQ:MGNI) in another article and shared Choice Equities’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 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.