17 hours ago
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Soumya Eswaran
Fri, June 12, 2026 astatine 10:10 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 Workiva Inc. (NYSE:WK). Workiva Inc. (NYSE:WK) is simply a bundle institution that provides cloud-based reporting solutions for fiscal reporting, compliance, and hazard management. On June 11, 2026, Workiva Inc. (NYSE:WK) closed astatine $49.13 per share. One-month instrumentality of Workiva Inc. (NYSE:WK) was 3.65%, and its shares mislaid 25.25% implicit the past 52 weeks. Workiva Inc. (NYSE:WK) has a marketplace capitalization of $2.76 billion.
Madison Small Cap Fund stated the pursuing regarding Workiva Inc. (NYSE:WK) successful its Q1 2026 capitalist letter:
"We proceed to spot opportunities successful bundle and made respective caller investments arsenic the monolithic selloff led to charismatic valuations. We are focused connected beardown franchises successful captious applications that we judge are overmuch little apt to beryllium disrupted by AI autochthonal competition. Investments similar Workiva Inc. (NYSE:WK), which provides compliance and regulatory bundle for enterprises, are overmuch much resilient businesses than the marketplace fears. Our conversations with WK customers springiness america assurance that they bash not mean connected ripping and replacing specified a profoundly integrated and important strategy of grounds immoderate clip soon, if ever."
Workiva Inc. (NYSE:WK) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge money portfolios held Workiva Inc. (NYSE:WK) astatine the extremity of the archetypal quarter, the aforesaid arsenic successful the erstwhile quarter. In Q1 2026, Workiva Inc. (NYSE:WK) reported gross of $247 million, an summation of 20% year-over-year. While we admit the imaginable of Workiva Inc. (NYSE:WK) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.
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