Madison Investments, an investment advisor, has issued a 2025 fourth quarter investor letter for “Madison MedCap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index ended an incredibly successful three-year run with a full-year return of 10.6%, amounting to an annual gain of more than 14%. The market favored more volatile and speculative companies in 2025. This market environment poses challenges for Madison’s mid-cap portfolio, which focuses on high-quality, profitable businesses. Historically, this focus has supported long-term investment success, and the firm remains committed to it, optimistic about the opportunities presented this year, and has actively invested. Against this backdrop, the fund declined 1.2% in Q4 2025, lagging behind the Russell MedCap index’s 0.2% gain. Please review the fund’s top five holdings for 2025 to gain insight into their key picks.
In its fourth quarter 2025 investor letter, Madison MedCap Fund highlighted stocks like Microchip Technology Inc. (NASDAQ: MCHP ). Microchip Technologies Inc. (NASDAQ:MCHP) is an American semiconductor company that develops, manufactures, and sells smart, connected, and secure embedded control solutions. On March 10, 2026, Microchip Technologies Inc. (NASDAQ:MCHP) stock closed at $65.33 per share. Microchip Technology Inc. (NASDAQ:MCHP)’s one-month return was -19.10%, and its shares have moved 25.88% over the past 52 weeks. Microchip Technologies Inc. ( NASDAQ:MCHP ) has a market capitalization of $35.35 billion.
Madison MedCap Fund made the following comments about Microchip Technologies Inc. (NASDAQ:MCHP) in its fourth quarter 2025 investor letter:
“We sold two properties, Trex and Includes microchip technology (NASDAQ: MCHP). Microchip Technologies is one of the leading analog and microcontroller companies that benefit from long product life cycles and diverse end markets. Microchip has struggled with supply chain challenges over the past 24 months as lengthening manufacturing lead times have caused customers to order more. The company’s founder, Steve Sangy, returned to the role of CEO last summer and succeeded in reducing excess inventory and positioning the company to rebuild market share. We are encouraged by Steve’s action plans, but as the stock’s value has recovered, we have decided to sell our small stake.”
Microchip Technologies Incorporated (NASDAQ:MCHP) is not on our list of the 40 Most Popular Stocks Headlined by Hedge Funds in 2026. According to our database, 61 hedge fund portfolios including Microchip Technologies (NASDAQ: MCHP ) ranked fourth at the end of the previous 5rquar. While we recognize the potential of Microchip Technologies Inc. (NASDAQ: MCHP ) as an investment, we believe some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
