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 Ross Stores, Inc. (NASDAQ:ROST) as one of its leading contributors. Ross Stores, Inc. (NASDAQ:ROST) is a US-based off-price retail apparel and home fashion store operator. On March 10, 2026, Ross Stores, Inc. (NASDAQ:ROST) stock closed at $212.93 per share. One-month return of Ross Stores, Inc. (NASDAQ:ROST) was 10.13%, and its shares gained 67.60% over the past 52 weeks. Ross Stores, Inc. (NASDAQ:ROST) has a market capitalization of $68.92 billion.
Madison Mid Cap Fund stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its fourth quarter 2025 investor letter:
“The top five contributors for the quarter were Ross Stores, Inc. (NASDAQ:ROST, MKS, Waters, PACCAR, and Amphenol. Ross Stores reported very strong sales results in the quarter and management offered an optimistic outlook for the rest of the year. The company is benefiting from its strategy to offer even better value, by further emphasizing familiar brands at low prices. Sales are up across all categories and more consumers are visiting Ross stores.”
Ross Stores, Inc. (NASDAQ:ROST) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held Ross Stores, Inc. (NASDAQ:ROST) at the end of the fourth quarter, up from 58 in the previous quarter. While we acknowledge the risk and potential of Ross Stores, Inc. (NASDAQ:ROST) 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 Ross Stores, Inc. (NASDAQ:ROST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ross Stores, Inc. (NASDAQ:ROST) and shared Carillon Eagle Mid Cap Growth Fund’s views on the company. 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.
