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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Madison Small Cap Fund 2022 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Madison Small Cap Fund)

Primary Source Intelligence • Q3 2022 Letter Analysis

Madison Small Cap Fund Quarterly Analysis

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

Fund Returns

Annualized+11.94%

Digest Analysis

Quick Take

"Analysis pending..."

Executive Summary

No summary available.

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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

75%

CautiousHigh

High Conviction (75%)

The managers demonstrate strong conviction in their long-term thesis for core holdings like Owens & Minor and WillScot, and consolidated the portfolio into 50 of their most durable businesses despite recent benchmark underperformance.

Growth Outlook

40%

BearishBullish

Neutral (40%)

While acknowledging the painful bear market, inflation, rate hikes, and European winter headwinds, the managers view valuations as attractive and foresee potential drivers for future outperformance.

Risk Appetite

20%

DefensiveAggressive

Defensive (20%)

The portfolio remains heavily weighted in Information Technology and initiates positions in growth opportunities, though overall portfolio concentration was streamlined into durable, recurring-revenue businesses.

Capital Deployment

40%

De-riskingDeploying

Net Neutral (40%)

The managers actively rotated capital during the quarter, exiting six underperforming positions and initiating two new holdings while maintaining a low cash balance (5.8%).

Forward Guidance

55%

CautiousExpansionary

Neutral (55%)

The outlook for 2023 is presented constructively, noting that potential rate cuts, attractive valuation, and subdued cyclicality could drive strong future performance once short-term macro friction eases.

Language Signal

60%

BearishBullish

Balanced (60%)

The language is confident and analytical, asserting that key company fundamentals remain intact and that holdings are executing well despite broader macro noise.

Perceived Risk

25%

Low RiskElevated

Low Risk (25%)

The macroeconomic background is viewed as high-risk, characterized by elevated inflation, Fed tightening, European geopolitical tension, and potential recessionary dynamics.

Opportunity Density

50%

ScarceAbundant

Selective (50%)

The market selloff is highlighted as providing attractive entry points to initiate new long-term positions such as BRP Group and Saia at compelling valuations.

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

The letter maintains a clear multi-year, long-term perspective, emphasizing business model durability and private market value over short-term macroeconomic volatility.