Core Insights - Madison Small Cap Fund experienced a challenging third quarter in 2025, with a decline of 1.3% in its performance, underperforming benchmarks due to stock selection and a speculative market environment [1] Company Overview: Hexcel Corporation - Hexcel Corporation is a leader in advanced composite materials, producing carbon fiber reinforcements, resin systems, and honeycomb structures for commercial aerospace, space, and defense applications [2][3] - The stock of Hexcel Corporation had a one-month return of -3.08% but gained 15.30% over the last 52 weeks, closing at $70.55 per share with a market capitalization of $5.616 billion on November 20, 2025 [2] Investment Position - The small cap team initiated a new investment position in Hexcel Corporation, citing its critical role in lightweight, high-performance applications, particularly in aerospace [3] - Major clients include industry leaders such as Airbus and Boeing, benefiting from a duopoly market structure and significant competitive moats [3] - The company faces challenges from previous COVID-related supply chain issues, but these headwinds are believed to be largely resolved [3] - The competitive landscape is characterized by high capital intensity and regulatory hurdles, leading to substantial switching costs for customers [3] - The intrinsic value of Hexcel's franchise is estimated at $85 [3]

Core Insights - J-Star Holding Co., Ltd. has appointed Sam Van as the new CEO, effective October 1, succeeding Jonathan Chiang, who will remain as Chairman of the Board [1][4] - The company is at a critical juncture following its recent IPO, with plans to optimize its manufacturing facility in Taiwan and expand into the U.S. market [2][5] - Under Mr. Van's leadership, J-Star aims to accelerate growth through both organic means and strategic mergers and acquisitions [2] Company Overview - J-Star is a leading provider of carbon fiber and composite solutions, serving various sectors including sports equipment, healthcare, and automotive parts [1][5] - The company has over 50 years of experience in the material composites industry and operates through subsidiaries in Taiwan, Hong Kong, and Samoa [5] Leadership Background - Sam Van has extensive experience in capital markets and has assisted over 70 companies with IPOs, including listings on major exchanges [3] - His previous roles include CEO of SRO Partners and senior positions at the New York Stock Exchange and FINRA [3] Strategic Vision - The new CEO emphasizes the importance of innovation and engineering excellence, aiming to enhance J-Star's global presence and create long-term shareholder value [4] - The company is launching its own brands of sporting goods and electric bicycles as part of its growth strategy [2]