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Madison Investments, an funding advisor, launched its fourth-quarter 2025 investor letter for “Madison Small Cap Fund”. A replica of the letter will be downloaded right here. The fourth quarter was difficult for the fund and continued to underperform its benchmark, the Russell 2000 Index. The fund (Class I) returned -0.4%, lagging the benchmark’s 2.2% return. Sector allocation negatively impacted the Fund’s efficiency this quarter, with healthcare being the weakest sector. The Fund stays optimistic that the speculative market is shedding momentum, however cautious, given the saying “markets can keep irrational longer than you’ll be able to keep solvent”. As well as, you’ll be able to examine the fund’s high 5 holdings to find out its finest picks for 2025.
In its fourth-quarter 2025 investor letter, Madison Small Cap Fund highlighted shares like Confluent, Inc. (NASDAQ:CFLT). Confluent, Inc. (NASDAQ:CFLT) is a expertise firm that gives an information streaming platform that allows clients to attach their purposes, techniques, and knowledge layers within the cloud. On March 13, 2026, Confluent, Inc. (NASDAQ:CFLT) inventory closed at $30.67 per share. One-month return of Confluent, Inc. (NASDAQ:CFLT)was 0.36%, and its shares gained 12.76% over the previous 52 weeks. Confluent, Inc. (NASDAQ:CFLT) has a market capitalization of $11.019 billion.
Madison Small Cap Fund said the next relating to Confluent, Inc. (NASDAQ:CFLT) in its fourth quarter 2025 investor letter:
“We exited our funding in infrastructure software program vendor Confluent, Inc. (NASDAQ:CFLT) following the announcement that IBM would purchase the corporate for $11 billion, or $31 per share, representing a ~35% premium to the earlier Friday’s closing worth. We don’t anticipate competing bids and determined to promote our place at costs over $30 per share to fund different new alternatives.”
Confluent, Inc. (NASDAQ:CFLT) isn’t on our checklist of 40 Most Common Shares Amongst Hedge Funds Heading Into 2026. In line with our database, 71 hedge fund portfolios held Confluent, Inc. (NASDAQ:CFLT) on the finish of the fourth quarter, up from 60 within the earlier quarter. Whereas we acknowledge the potential of Confluent, Inc. (NASDAQ:CFLT) as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back danger. Should you’re on the lookout for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
In one other article, we lined Confluent, Inc. (NASDAQ:CFLT) and shared a listing of finest up and coming AI shares to purchase. As well as, please take a look at our hedge fund investor letters This fall 2025 web page for extra investor letters from hedge funds and different main traders.
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