Madison Investments, an investment advisor, released its second-quarter 2026 investor letter for the "Madison Mid Cap Fund". You can download a copy of the letter here. U.S. stock market indices posted their strongest second-quarter performance since 2020, driven largely by enthusiasm for Artificial Intelligence.
Nine of the ten largest companies in the Russell Midcap Index benefit directly from the AI data-center boom; one rose 257%, while the others gained between 17% and 136%. A small group of AI-related stocks has powered most of the index's year-to-date returns, reversing the broader market participation seen earlier this year. Although AI will reshape society and the economy, today's apparent winners may not remain so, and current valuations may prove unsustainable.
Other risks include unpredictable federal policy, partisan gridlock, expanding deficits, inflation, higher interest rates, stretched consumer finances, and geopolitical volatility. The Class Y of the Fund returned 8.58% in the quarter compared to Russell Midcap's 13.83% return. The firm believes its Mid Cap portfolio combines strong long-term growth prospects with resilience amid potential challenges.
Please review the Fund's top five holdings to gain insights into its key selections for 2026. In its second-quarter 2026 investor letter, Madison Mid Cap Fund highlighted Ross Stores, Inc. (NASDAQ:ROST). Ross Stores, Inc. (NASDAQ:ROST) is a US-based off-price retail apparel and home fashion store operator.
On September 22, 2026, Ross Stores, Inc. (NASDAQ:ROST) closed at $232.51 per share. Over the past month, Ross Stores, Inc. (NASDAQ:ROST) declined 1.59%, but its shares are up 55.60% over the past year. Ross Stores, Inc. (NASDAQ:ROST) has a market capitalization of $74.28 billion, and its stock has traded within a 52-week range of $146.00 to $257.00.
Madison Mid Cap Fund stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its Q2 2026 investor letter: > "Discount retailer **Ross Stores, Inc.** (NASDAQ:ROST) posted one of the strongest same store sales quarters in its history, but shares were flattish in the quarter as the strong risk-on/ momentum rally left behind more defensive businesses. > We trimmed our position in Ross Stores (ROST) following strong stock performance. While the business is performing very well, valuation and the position size reached extended levels." Is Ross Stores (ROST) One of Billionaire Steven Cohen’s To Move upMove downToggle panel: Featured image Barclays Lifts Ross Stores (ROST) PT after Strong Q1 Comparable Sales Growth Click the image to edit or update Remove featured image Move upMove downToggle panel: Publish Preview(opens in a new tab) Status: Draft EditEdit status Visibility: Public EditEdit visibility Publish immediately EditEdit date and time Move upMove downToggle panel: Categories All Categories Most Used Bitcoin Business CEF Trading Commodities Dividend Stocks Earnings Report Economy ETF Trading Ethereum and Other Cryptocurrencies Futures/Forex Gambling Gold Hedge Fund Analysis Hedge Funds Activism Hedge Fund Investor Letters Industries Insider Trading IPOs Lists Macroeconomic Predictions Market Movers Marketing Mergers & Acquisitions News Options Press Releases Quantitative Investing Retirement Stock Analysis Tech The Smart Set Transcripts Uncategorized We Disagree + Add New Category Move upMove downToggle panel: Tags Add New Tag Separate tags with commas Remove term: Yahoo Finance Yahoo Finance Choose from the most used tags Add MediaVisualText Paragraph Word count: 333 Move upMove downToggle panel: AMP Is AMP Enabled? Check this box to make AMP page available for this post Move upMove downToggle panel: Yahoo Finance Fields Primary Tickers Exchange * Exhange NYSE, NASDAQ,..
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