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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Madison Mid Cap Fund 2023 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Madison Mid Cap Fund)

Primary Source Intelligence • Q2 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 beneficiaries like Amphenol and Arista drove gains while value-oriented holdings lagged."

Executive Summary

The Madison Mid Cap Fund returned 1.9% in Q3 2025, underperforming the Russell Midcap Index's 5.3% gain. Top contributors included Medpace, which posted accelerating revenue and bookings growth, and technology holdings Amphenol, Arista Networks, and MKS, which benefited from AI-related data center spending and improving semiconductor cycle sentiment. Ross Stores also contributed on improved sales growth and tariff mitigation commentary. Detractors included Gartner, which faced growth slowdown attributed to macro headwinds and potential AI disruption, Liberty Broadband on Charter's disappointing results, and Brown & Brown on slower organic growth. The fund trimmed Arista and MKS due to higher valuations while maintaining positive business outlooks, and sold the GCI Liberty spin-off. Management acknowledges their value-oriented approach focusing on quality companies below intrinsic value is temporarily out of favor as markets prefer momentum over durability, but believes their concentrated, all-weather portfolio remains well-positioned for attractive risk-adjusted returns across market environments.

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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%)

The fund maintains a concentrated 33-stock portfolio with named positions and specific thesis explanations for each holding. Management provides detailed rationale for position sizing decisions, trimming winners on valuation while maintaining business conviction. The clear articulation of investment philosophy and specific portfolio actions demonstrates moderate-high conviction despite market headwinds.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The managers acknowledge challenging market conditions where their value-oriented style is out of favor, with markets preferring short-term over long-term and momentum over durability. While not explicitly bearish on markets, they express concern about current market dynamics working against their investment philosophy.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The fund maintains a concentrated 33-stock portfolio and continues to search for quality opportunities, but is taking profits by trimming winners like Arista and MKS due to valuation concerns. This suggests a cautiously constructive but selective approach to risk-taking.

Capital Deployment

43%

De-riskingDeploying

Net Neutral (43%)

The fund trimmed two positions (Arista and MKS) due to valuation concerns and sold one spin-off (GCI Liberty), indicating modest profit-taking activity. While they continue searching for opportunities, the net activity was reducing exposure to appreciated positions rather than deploying new capital.

Forward Guidance

25%

CautiousExpansionary

Cautious (25%)

Management expresses confidence that their all-weather portfolio remains well-positioned to deliver attractive risk-adjusted returns across various market environments, indicating a mildly positive deployment bias despite current headwinds to their style.

Language Signal

10%

BearishBullish

Bearish (10%)

Language is balanced with positive terms around business quality and prospects offset by concerns about market dynamics. Terms like 'well-positioned' and 'attractive' are balanced against 'out of favor' and 'headwinds,' resulting in slightly positive but cautious tone.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Management acknowledges specific risks including market style rotation away from value, tariff impacts on corporate spending, and potential AI disruption to certain holdings like Gartner. However, risks are discussed in measured terms without alarm, suggesting moderate risk awareness rather than high concern.

Opportunity Density

50%

ScarceAbundant

Selective (50%)

The fund continues its search for quality companies below intrinsic value but acknowledges their style is currently out of favor. No mention of abundant opportunities or difficulty finding ideas, suggesting a neutral view on opportunity availability in current market conditions.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Management emphasizes their focus on long-term performance and describes their philosophy as working 'for decades.' They explicitly state willingness to maintain positions despite short-term market preferences, indicating a multi-year investment horizon with patience for thesis realization.