Institutional Research Archive

Hedge Fund Letters Archive

Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.

Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

Home Letters Funds Account

Madison Mid Cap Fund 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Madison Mid Cap Fund)

Primary Source Intelligence • Q3 2024 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+7.17%

Annualized+10.01%

Digest Analysis

Quick Take

"Madison Mid Cap Fund underperformed in Q3 but actively deployed capital into quality businesses at attractive valuations. Added industrial leader Graco and auto dealers Lithia/Asbury for consolidation potential."

Executive Summary

Madison Mid Cap Fund returned 7.17% in Q3 2024, underperforming the Russell Midcap Index's 9.21% return. Top contributors included Liberty Broadband on acquisition discussions with Charter Communications, Floor & Décor benefiting from competitor closures and rate cut optimism, and Moelis on M&A activity recovery. Key detractors were Dollar Tree facing consumer weakness, MKS Instruments on semiconductor cycle uncertainty, and PACCAR on freight market softening. The fund added three new positions: Graco for its premium fluid handling equipment business with strong margins, and auto dealers Lithia Motors and Asbury Automotive for their stable parts/service revenue and consolidation opportunities. Managers increased positions in Microchip Technology and Dollar Tree on attractive valuations despite cyclical headwinds, while trimming Moelis after appreciation. The portfolio maintains focus on quality businesses with pricing power and long-term earnings potential, taking advantage of market dislocations to add positions at reasonable valuations.

Unlock Full Institutional Analysis

Sign in or create a free account to unlock full commentary, extracted equity pitches, and direct outbound manager source links with your 3 quarterly credits.

Sign In to Unlock (3 Free Credits)View Pricing Tiers

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 holds 33 concentrated positions with clear thesis explanations for each holding. Managers provide specific rationale for additions and trims, demonstrate willingness to add to positions during weakness, and express long-term confidence in holdings despite cyclical challenges. High-moderate conviction with named positions and sizing decisions.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The managers acknowledge challenging conditions including weakening consumer/housing markets, declining freight rates, and elongated semiconductor cycle, but express optimism about lower interest rates benefiting M&A activity and housing-related businesses. Mixed outlook with cautious optimism.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund added three new positions and increased two existing holdings, showing selective risk-taking. However, they also trimmed positions and managed sector exposures, indicating measured rather than aggressive positioning. Net long with selective additions.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

The fund added three new positions and increased two existing holdings while trimming two others. This represents selective net deployment activity. No cash level data provided, but the addition of new names and increases to existing positions suggests modest net deployment.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

Managers are selectively adding to positions they view as attractively valued with long-term potential, but acknowledge near-term cyclical headwinds. They express confidence in specific holdings while remaining cautious about broader conditions. Mild deployment bias with selectivity.

Language Signal

15%

BearishBullish

Bearish (15%)

Language includes positive terms like 'encouraged,' 'attractive valuation,' 'strong long-term outlook,' and 'good entry point,' but also significant risk language including 'headwinds,' 'challenging,' 'weakness,' and 'uncertainty.' Slightly more positive than negative overall.

Perceived Risk

55%

Low RiskElevated

Moderate Risk (55%)

Managers identify multiple specific risks including weakening consumer/housing markets, declining freight rates, softening economic backdrop, elongated semiconductor cycle, and competitive pressures. These risks are discussed in context of individual holdings with meaningful detail, indicating moderate risk awareness.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The managers found three new attractive investment opportunities and increased positions in two existing holdings based on valuation. They describe finding 'good entry points' and 'attractive valuations' while maintaining selectivity, suggesting a moderately rich opportunity set in their focused mid-cap universe.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The managers emphasize 'long-term prospects,' 'long-term earnings power,' and 'long runway to create value' while acknowledging near-term cyclical headwinds. They demonstrate willingness to add to positions during temporary weakness, indicating a multi-year investment horizon with patience through cycles.