Madison Mid Cap Fund Trimmed Amphenol (APH) Due to Elevated Valuation

Group 1: Madison Mid Cap Fund Overview - Madison Investments released its fourth-quarter 2025 investor letter for the Madison Mid Cap Fund, noting a challenging market environment favoring volatile and speculative companies, which impacted the Fund's performance [1] - The Russell Midcap Index achieved a full-year return of 10.6% in 2025, with an annual increase of over 14%, while the Madison Mid Cap Fund decreased by 1.2% in Q4 2025, lagging behind the Index's 0.2% increase [1] Group 2: Amphenol Corporation Insights - Amphenol Corporation (NYSE: APH) is highlighted as a top contributor to the Madison Mid Cap Fund, with its IT/Datacom business experiencing significant organic growth driven by AI-related data center spending [3] - The stock closed at $136.74 per share on March 10, 2026, with a one-month return of -5.07% and a remarkable 117.63% gain over the past 52 weeks, while its market capitalization stands at $168.08 billion [2] - Amphenol reported record sales of $6.439 billion in Q4 2025, reflecting a 49% increase in US dollars compared to Q4 2024 [4] Group 3: Investment Positioning - The Madison Mid Cap Fund trimmed its position in Amphenol during the quarter due to valuation considerations, adjusting the position size to align with the stock's current risk/reward profile after a strong performance [3] - Despite Amphenol's potential, the Fund suggests that certain AI stocks may offer greater upside potential with less downside risk [4]