Madison Mid Cap Fund Exited Microchip Technology Incorporated (MCHP) Following Valuation Recovery

Core Insights - Madison Mid Cap Fund's fourth-quarter 2025 investor letter indicates a challenging market environment for high-quality, profitable businesses, as the Russell Midcap Index recorded a full-year return of 10.6% with a focus on more volatile and speculative companies [1] - The Fund experienced a decrease of 1.2% in Q4 2025, underperforming the Russell Midcap Index, which increased by 0.2% [1] Company Insights - Microchip Technology Incorporated (NASDAQ:MCHP) is highlighted as a significant holding, with a market capitalization of $35.35 billion [2] - The stock closed at $65.33 per share on March 10, 2026, with a one-month return of -19.10% and a 52-week gain of 25.88% [2] - The company has faced supply chain challenges over the past 24 months, leading to customer over-ordering due to lengthening production lead times [3] - The return of founder Steve Sanghi as CEO has been noted as a positive development, with efforts to reduce excess inventory and position the company for market share recovery [3] Investment Sentiment - Microchip Technology is not included in the list of the 40 Most Popular Stocks Among Hedge Funds heading into 2026, although it was held by 61 hedge fund portfolios at the end of Q4, up from 56 in the previous quarter [4] - The investment community acknowledges the potential of Microchip Technology but suggests that certain AI stocks may offer greater upside potential with less downside risk [4]