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 Gogo Inc. (NASDAQ:GOGO) in the fourth quarter 2023 investor letter. Headquartered in Broomfield, Colorado, Gogo Inc. (NASDAQ:GOGO) provides broadband connectivity services to the aviation industry. On January 16, 2024, Gogo Inc. (NASDAQ:GOGO) stock closed at $8.84 per share. One-month return of Gogo Inc. (NASDAQ:GOGO) was -10.16%, and its shares lost 45.26% of their value over the last 52 weeks. Gogo Inc. (NASDAQ:GOGO) has a market capitalization of $1.139 billion.
Madison Small Cap Fund stated the following regarding Gogo Inc. (NASDAQ:GOGO) in its fourth quarter 2023 investor letter:
“Our investment in Gogo Inc. (NASDAQ:GOGO) was a material detriment to our relative performance. GOGO is a ground-to-air internet service provider for private jets. Unfortunately, GOGO’s subscriber numbers were hurt by a significant number of planes grounded for deferred maintenance in 2023. During these maintenance periods, GOGO typically pauses the subscription for its clients. GOGO also pushed back its rollout of 5G service, a key strategic initiative for the company and the stock, due to an error in its chip design from one of its suppliers. We believe these issues are transitory and the stock could recover meaningfully as these issues are resolved by the second half of 2024.”
A high-speed internet connection providing fast data rates to customers.
Gogo Inc. (NASDAQ:GOGO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Gogo Inc. (NASDAQ:GOGO) at the end of third quarter which was 20 in the previous quarter.
We discussed Gogo Inc. (NASDAQ:GOGO) in another article and shared Madison Small Cap Fund’s 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.
