17 hours ago
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Soumya Eswaran
Fri, June 12, 2026 astatine 10:06 AM CDT 3 min read
Madison Small Cap Fund, managed by Madison Funds, released its Q1 2026 capitalist letter. A transcript of the missive is disposable to download here. The Madison Small Cap Fund (class I) accrued by 0.10% successful the archetypal quarter, trailing down the Russell 2000 Index (up 0.89%) and the Russell 2500 Index (up 2.04%). Despite somewhat underperforming the benchmark successful the quarter, halfway positions and IT investments showed coagulated performance. From a benignant perspective, worth stocks outperformed growth, with the Russell 2000 Value Index rising ~4.5% and the Russell 2000 Growth Index falling astir 3%. The outperformance of the worth is driven by weakness successful speculative names aligning with the Fund's benignant and penchant for quality, profitable franchises. The Fund believes the marketplace volatility, influenced by AI concerns and geopolitical tensions, presents a imaginable accidental for diligent investors. Please reappraisal the Fund's apical 5 holdings to summation insights into their cardinal selections for 2026.
In its first-quarter 2026 capitalist letter, Madison Small Cap Fund Strategy highlighted Leonardo DRS, Inc. (NASDAQ:DRS). Leonardo DRS, Inc. (NASDAQ:DRS) is simply a starring US-based defence exertion institution that provides physics products and systems, and enactment services to US subject and allied forces. On June 10, 2026, Leonardo DRS, Inc. (NASDAQ:DRS) closed astatine $49.69 per share. One-month instrumentality of Leonardo DRS, Inc. (NASDAQ:DRS) was 18.57%, and its shares gained 6.80% implicit the past 52 weeks. Leonardo DRS, Inc. (NASDAQ:DRS) has a marketplace capitalization of $13.26 billion.
Madison Small Cap Fund stated the pursuing regarding Leonardo DRS, Inc. (NASDAQ:DRS) successful its Q1 2026 capitalist letter:
"Our investments successful energy, materials, and defence had coagulated implicit show successful the quarter. We'd similar to item Leonardo DRS, Inc. (NASDAQ:DRS), an concern we made successful 2023. This smid-cap defence premier contractor has delivered amended than expected results, driven by its physics propulsion thrust connected the Columbia submarine platform, and has further accidental successful the Golden Dome initiative. The Golden Dome is simply a rocket defence programme championed by the Trump Administration to support America's airspace utilizing a premix of abstraction assets to way and people incoming attacks. DRS volition beryllium a supplier for rocket informing satellites, the tracking information of this program. This is simply a well-managed institution that is benefiting from the diversification of the Department of War's procurement distant from larger premier contractors with aggregate opportunities to thrust revenues successful increasing areas of US and allied defence spending."
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