Overview
- Madison Investments published its Q2 2026 investor letter in mid‑August and said the U.S. market’s best quarter since 2020 was driven by a very small group of AI-related stocks.
- The Madison Large Cap Fund returned 8.4% in Q2 while the S&P 500 rose 15.2%, a gap Madison attributes to the market’s extreme concentration in a few winners.
- Madison highlighted Keysight Technologies as a top‑five holding and pointed to the company’s fiscal Q2 results showing $1.72 billion in revenue, up 31% year over year.
- Investor interest in Keysight has risen recently, with hedge fund ownership climbing to 66 portfolios and J.P. Morgan raising a price target as the stock traded near $319 on Aug. 19, 2026.
- Other fund letters from mid‑August show managers trimming crowded AI positions to limit concentration and warn that political, fiscal and inflation risks could amplify any correction.