Overview
- The fund declined 1.2% in Q4 2025 versus a 0.2% gain for the Russell Midcap Index, citing a market that favored more volatile, speculative names.
- During the quarter it initiated four positions: Bio‑Techne, ServiceTitan, A. O. Smith, and MSA Safety.
- The team exited Trex and sold its small stake in Microchip Technology after a valuation rebound, noting operational progress under returning CEO Steve Sanghi.
- Madison said A. O. Smith’s market leadership and high replacement demand position it to benefit from upcoming energy regulations and capital deployment under new CEO Steve Shafer, with China weakness creating a more attractive entry point.
- For Bio‑Techne, the fund highlighted roughly 80% recurring revenue and a new CEO’s plan to extend leadership in protein research, and it flagged Brown & Brown as a quarterly detractor due to slowing organic growth.