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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Madison Mid Cap Fund 2023 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Madison Mid Cap Fund)

Primary Source Intelligence • Q1 2023 Letter Analysis

Madison Mid Cap Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Madison Mid Cap Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+1.9%

Annualized+10.01%

Positioning StanceConstructive

GeographyUS

Digest Analysis

Quick Take

"Madison Mid Cap underperformed in Q3 as AI-driven momentum favored growth over their quality value approach. Strong technology holdings like Amphenol and Arista benefited from data center spending, while Gartner faced AI disruption concerns."

Executive Summary

The Madison Mid Cap Fund returned 1.9% in Q3 2025, underperforming the Russell Midcap Index's 5.3% gain. Technology stocks drove market performance, benefiting from AI enthusiasm and momentum strategies. Top contributors included Medpace, which posted accelerating growth in contract research, and technology names Amphenol, Arista Networks, and MKS, which capitalized on AI-related data center spending and improving semiconductor cycles. Detractors included Gartner, facing AI disruption concerns, Liberty Broadband due to Charter's disappointing results, and several companies affected by cyclical headwinds. The managers trimmed Arista and MKS after strong performance elevated valuations. They remain committed to their quality-focused, value-oriented approach despite current market preference for momentum over durability. The portfolio maintains 33 concentrated holdings across diverse industries, positioned for long-term risk-adjusted returns. Management believes their all-weather strategy will deliver attractive performance across market environments, even as their style faces temporary headwinds from short-term market dynamics favoring growth and momentum strategies.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

Fund maintains concentrated portfolio of 33 holdings with 46.6% in top 10 positions. Managers name specific holdings, explain individual thesis points, and demonstrate willingness to trim on valuation while maintaining core positions. Clear conviction in quality-focused approach despite style headwinds.

Growth Outlook

38%

BearishBullish

Neutral (38%)

Managers acknowledge their style is temporarily out of favor as markets favor short-term over long-term and momentum over durability. They note widespread AI exuberance and momentum-based strategies but don't express bullish views on overall market conditions.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

Portfolio remains fully invested with 33 holdings and only 3.49% cash. Managers trimmed some winners on valuation concerns but continue to hold concentrated positions. Positioning shows measured risk appetite with selective profit-taking rather than defensive moves.

Capital Deployment

43%

De-riskingDeploying

Net Neutral (43%)

Managers trimmed two positions (Arista Networks and MKS) and sold one holding (GCI Liberty) during the quarter. No evidence of new position additions or cash deployment. Net activity shows modest profit-taking and position management rather than aggressive deployment.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

Managers express confidence their portfolio remains well-positioned for attractive risk-adjusted returns across market environments. They plan to continue their search for quality companies below intrinsic value, showing selective deployment bias despite current headwinds.

Language Signal

10%

BearishBullish

Bearish (10%)

Language is balanced with some positive terms like 'attractive,' 'well-positioned,' and 'strong prospects' offset by cautious language about being 'out of favor,' 'headwinds,' and 'disappointing' results. Net slightly positive but largely neutral.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Managers acknowledge cyclical headwinds in construction markets, AI disruption risks for some holdings, and style rotation risks. Risk discussion is moderate with specific company and sector concerns mentioned but not systemic warnings.

Opportunity Density

35%

ScarceAbundant

Selective (35%)

Managers note difficulty in current environment where their quality attributes are unpopular. They continue searching for opportunities but acknowledge the market's preference for momentum over their style suggests limited attractive opportunities meeting their criteria.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Managers emphasize long-term philosophy, describe their approach as working 'for decades,' and position portfolio for 'a variety of market environments.' They explicitly reject short-term market dynamics in favor of long-term value creation, indicating multi-year investment horizon.