Madison Small Cap Fund’s Q2 2025 Investor Letter

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” second-quarter 2025 investor letter. 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.

A copy of Madison Small Cap Fund’s Q2 2025 investor letter can be downloaded here.