Madison Mid Cap Fund Added Arista Networks (ANET) on a Dip

Core Insights - Madison Investments released its second-quarter 2025 investor letter for the Madison Mid Cap Fund, which reported a return of 5.2%, underperforming the Russell Midcap Index's 8.5% increase [1] - The fund highlighted Arista Networks, Inc. as a significant stock, noting a one-month return of 10.06% and a 52-week gain of 52.59%, with a market capitalization of $184.332 billion as of September 18, 2025 [2][3] Fund Performance - The Madison Mid Cap Fund (Class Y) returned 5.2% in Q2 2025, compared to an 8.5% increase in the Russell Midcap Index [1] - The top five contributors to the fund's performance included Arista Networks, Amphenol, Microchip Technology, MKS, and Liberty Formula One [3] Company Focus: Arista Networks, Inc. - Arista Networks is recognized for its data-driven, client-to-cloud networking solutions, benefiting from market enthusiasm for AI-related technologies [3] - The stock of Arista Networks closed at $146.66 per share on September 18, 2025, reflecting strong growth and profitability in its core business [2][3] Hedge Fund Interest - Arista Networks was held by 81 hedge fund portfolios at the end of Q2 2025, an increase from 75 in the previous quarter, indicating growing interest among institutional investors [4] - Despite its potential, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [4]