Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the mark ...

Core Insights - Madison Investments reported a 3.43% appreciation for the Madison Large Cap Fund in Q4 2025, outperforming the S&P 500's 2.65% return [1] - The S&P 500 achieved a full-year return of 17.9% for 2025, with a three-year annual growth rate exceeding 21% [1] - Market leadership was characterized by High Beta and Momentum factors, with notable improvements in Healthcare, Financials, and Consumer Discretionary sectors [1] Company Summary: CDW Corporation - CDW Corporation, an IT solutions company, had a market capitalization of $16.138 billion and closed at $123.13 per share on February 23, 2026 [2][4] - The stock experienced a one-month return of -3.35% and a 52-week decline of 34.05% [2] - In Q4 2025, CDW reported consolidated net sales of $5.5 billion, reflecting a 5% increase from Q4 2024 [4] Performance Analysis - CDW Corporation was listed among the bottom five detractors for the Madison Large Cap Fund in Q4 2025, with revenue growth improving but operating expenses rising faster, leading to muted earnings growth [3] - Despite the challenges, there is a belief that expenses will stabilize, allowing for a rebound in earnings growth in the long term [3] - CDW Corporation was included in 57 hedge fund portfolios at the end of Q4 2025, an increase from 48 in the previous quarter [4]