Group 1: Market Overview - In the fourth quarter of 2025, the S&P 500 returned 2.65%, leading to a full-year return of 17.9% for 2025, with annual growth of over 21% over the last three years [1] - Market leadership was characterized by High Beta and Momentum factors, with narrow participation, although sectors like Healthcare, Financials, and Consumer Discretionary showed slight improvements [1] - Mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration [1] Group 2: Madison Large Cap Fund Performance - The Madison Large Cap Fund (Class I) appreciated 3.43% in the fourth quarter, outperforming the S&P 500 Index's return of 2.65% [1] - The fund's investor letter highlighted its top five holdings, showcasing its best picks for 2025 [1] Group 3: Copart, Inc. (NASDAQ: CPRT) Analysis - Copart, Inc. is an online vehicle auction and remarketing services company with a market capitalization of $34.15 billion [2] - The stock closed at $35.28 per share on February 24, 2026, with a one-month return of -13.15% and a 52-week loss of 37.30% [2] - Copart was among the bottom five detractors for the quarter, with slowing volume growth attributed to more under-and-uninsured auto drivers and shifting market share among insurance carriers [3] - Despite recent challenges, Copart's earnings have grown healthily over the past few years, and its competitive position remains strong [3] Group 4: Hedge Fund Interest in Copart - At the end of the fourth quarter, 68 hedge fund portfolios held Copart, up from 59 in the previous quarter, indicating growing interest [4] - While acknowledging Copart's potential, the company believes certain AI stocks offer greater upside potential and less downside risk [4]

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]