Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund (Class I) returned 1.9% compared to the 5.3% increase for the Russell Midcap Index. The Russell Mid Cap Index experienced significant growth in the third quarter of 2025. Information Technology led the performance both in the quarter and YTD. In addition, please check the fund’s top five holdings to know its best picks ...

Core Viewpoint - Amphenol Corporation (NYSE:APH) is recognized as a strong investment opportunity due to its growth potential and market position, despite being considered expensive relative to its growth rate [1]. Company Overview - Amphenol Corporation manufactures electrical, electronic, and fiber optic connectors, cables, and sensors for various industries, including automotive, aerospace, communications, and industrial technology [1]. Market Sentiment - Jim Cramer highlighted Amphenol as a "great stock" during a recent discussion, emphasizing its strong performance and growth trajectory [1]. - Cramer referred to Amphenol as an "amazing company," noting its evolution from a coaxial cable company to a significant player in the data center market [1]. Valuation Insights - The stock is currently valued at a high multiple in the 30s, indicating that while it is not cheap, it is still a solid investment for long-term holders [1]. - Cramer advised against chasing the stock at its current valuation but suggested holding it if already owned [1].

Core Insights - Baron Asset Fund's third-quarter 2025 investor letter indicates a decline of 4.23% for the fund, contrasting with a 2.78% decline for the Russell Midcap Growth Index and an 8.18% return for the Russell 3000 Index, driven primarily by expectations of Federal Reserve interest rate cuts [1] Company Highlights - Amphenol Corporation (NYSE:APH) reported a one-month return of 12.25% and an impressive 89.47% increase in share value over the past 52 weeks, closing at $139.09 per share with a market capitalization of $170.254 billion as of November 7, 2025 [2] - The company is recognized as a leading global supplier of advanced interconnect systems for data centers, benefiting from rising expectations for data center capital spending due to the accelerating adoption of AI [3] - Amphenol's acquisition of CommScope's Connectivity and Cable Solutions business for $10.5 billion was positively received by investors, showcasing the company's commitment to shareholder value through strategic capital deployment and disciplined acquisitions [3] Financial Performance - Amphenol's third-quarter sales surged by 53% in US dollars and 52% in local currencies, reaching $6.194 billion, reflecting strong demand in the market [4] - The number of hedge funds holding Amphenol shares increased from 69 to 81 in the second quarter, indicating growing interest among institutional investors [4]

Core Viewpoint - Amphenol Corporation is highlighted as a strong investment opportunity for the next decade, with recent price target increases from major analysts indicating robust demand in the IT and datacom sectors [1][3]. Group 1: Analyst Upgrades - JPMorgan raised Amphenol's price target to $145 from $125, maintaining an Overweight rating due to increased estimates based on strong market demand [1][2]. - BofA analyst Wamsi Mohan upgraded Amphenol to Buy from Neutral, with a new price target of $150, up from $120, reflecting positive market sentiment [3]. Group 2: Market Demand - The IT and datacom markets are identified as key growth drivers for Amphenol, with expectations that demand will persist as hyperscalers deploy dense compute racks that require numerous connectors [2].

Core Insights - Amphenol Corporation reported record sales and Adjusted Diluted EPS for the third quarter of 2025, significantly exceeding guidance, with sales increasing by 53% year-over-year [2][11] - The company achieved an operating margin of 27.5%, reflecting strong profitability driven by organic growth across various end markets, particularly in IT datacom [2][11] - Amphenol returned approximately $354 million to shareholders through share repurchases and dividends during the quarter [2][11] Financial Performance - Third quarter 2025 net sales reached $6.2 billion, a 53% increase in U.S. dollars and a 41% increase organically compared to the third quarter of 2024 [11] - GAAP Diluted EPS was $0.97, up 102% year-over-year, while Adjusted Diluted EPS was $0.93, an 86% increase from the prior year [11] - Operating income for the quarter was $1.7 billion, with a gross profit of $2.4 billion [11][16] Shareholder Returns - The Board of Directors approved a 52% increase in the quarterly dividend, raising it from $0.165 to $0.25 per share, payable on January 7, 2026 [5] - Total capital returned to shareholders in the third quarter included $201 million in dividends and $153 million in share repurchases [2][5] Growth Strategy - Amphenol is focused on expanding growth opportunities through technology development, market diversification, and acquisitions [3][4] - The company completed the acquisition of Rochester Sensors in August 2025, which has annual sales of approximately $100 million [3] - Amphenol anticipates closing the acquisitions of the CCS business from CommScope and Trexon by early 2026 [4] Future Outlook - For the fourth quarter of 2025, Amphenol expects sales between $6.0 billion and $6.1 billion, representing a 39% to 41% increase year-over-year [6] - Adjusted Diluted EPS for the fourth quarter is projected to be between $0.89 and $0.91, a 62% to 65% increase from the fourth quarter of 2024 [6] - For the full year 2025, sales are expected to be in the range of $22.66 billion to $22.76 billion, a 49% to 50% increase over the previous year [6]

Core Insights - The third quarter of 2025 was marked by strong performance in US equities, driven by optimism regarding the Federal Reserve's dovish stance and a boom in artificial intelligence (AI) [1] - Mar Vista U.S. Quality Strategy reported a return of +3.29% net of fees, underperforming compared to the Russell 1000 Index (+8.00%) and the S&P 500 Index (+8.12%) [1] Company Highlights: Amphenol Corporation (NYSE:APH) - Amphenol Corporation's stock experienced a one-month return of 5.63% and a remarkable 93.70% increase over the past 52 weeks, closing at $125.79 per share with a market capitalization of $153.58 billion on October 8, 2025 [2] - The company reported strong Q2 results and an optimistic Q3 outlook, with revenue growth driven by AI-related product design wins, particularly contributions to NVIDIA's Blackwell NVL platform expected to ramp in the second half of 2025 [3] - Amphenol benefits from a diversified portfolio across various end markets, capitalizing on the trend of increased connectivity and intelligence in devices, while maintaining best-in-class margins and returns on invested capital [3] Market Position and Hedge Fund Interest - Amphenol Corporation was held by 81 hedge fund portfolios at the end of Q2 2025, an increase from 69 in the previous quarter, indicating growing interest among institutional investors [4] - The company's second quarter sales surged by 57% in U.S. dollars and 56% in local currencies, reaching $5.650 billion [4]

Core Insights - Comfort Systems USA, Inc. (NYSE:FIX) is recognized as one of the best non-tech stocks to buy, supported by hedge fund interest [1] - UBS has maintained a Buy rating on FIX with a price target of $875.00, citing strong fundamentals and a significant year-to-date stock increase of 67% [2] - The company emphasizes consistent earnings revisions, long-term value development, and robust cash flow return on investment, despite a high valuation of approximately 23 times EBITDA for the next 12 months [3] Company Overview - Comfort Systems USA, Inc. provides design, installation, and maintenance services for mechanical, electrical, and plumbing contracts across the United States [4]

Core Viewpoint - The article discusses the shift in investment focus towards non-tech stocks, particularly those favored by Reddit investors, as a response to changing market conditions and interest rate forecasts [1][2][3]. Group 1: Market Trends - The top-performing sectors of the S&P 500 in 2025 include utilities, financials, and industrials, indicating a broader market leadership beyond technology [1]. - Recent months have seen non-tech sectors achieving new all-time highs, contrasting with 2023-2024 when growth was primarily driven by IT and communication services [2]. - The market's response to U.S. Federal Reserve signals has led to a rotation away from tech stocks, with concerns about overvaluation amid high interest rate forecasts [2]. Group 2: Investment Strategy - Reddit investors are increasingly selecting non-tech companies for stability and long-term growth, highlighting better fundamentals and reduced exposure to Fed policy risks [3]. - The article presents a list of the top ten non-tech stocks to buy, based on trending discussions on Reddit and hedge fund interest as of Q2 2025 [6]. Group 3: Company Highlights - **Comfort Systems USA, Inc. (NYSE:FIX)**: - Supported by hedge fund interest, the stock has seen a 67% year-to-date increase, reaching a record high of $825.78 [10]. - UBS maintains a Buy rating with a price target of $875.00, citing strong fundamentals and a capital-light business model [10][11]. - The company provides mechanical, electrical, and plumbing services across the U.S. [12]. - **Woodward, Inc. (NASDAQ:WWD)**: - Also trending on Reddit with significant hedge fund interest, the company is well-positioned due to growth in the China LNG heavy-duty truck market [14]. - UBS has a Buy rating with a price target of $299, emphasizing the company's revenue projections and demand for LNG [14][15]. - Woodward manufactures control system components for various sectors, including aerospace and energy [16].

Group 1: Company Overview - Comfort Systems USA, Inc. (NYSE:FIX) is a leading provider of mechanical and electrical contracting services in the U.S., specializing in HVAC, plumbing, electrical, piping, and related off-site construction and monitoring solutions [2] - The company serves a diverse range of commercial, institutional, and industrial clients, positioning itself strongly in the market [2] Group 2: Financial Performance - In the second quarter, Comfort Systems reported a revenue increase of 20.1% year-over-year and earnings per share surged over 70%, driven by rising demand for data center infrastructure [4] - The company has consistently exceeded market expectations this year, with its latest quarter guidance topping forecasts [4] Group 3: Strategic Initiatives - On September 26, 2025, shares rose 2.92% following the announcement of a new strategic HVAC partnership aimed at enhancing cost efficiency and procurement channels [3] - To support its expansion, the company amended and expanded its credit facility to $1.1 billion, providing greater financial flexibility for larger projects [5] - Comfort Systems also raised its quarterly dividend to $0.50 per share, signaling financial strength and commitment to long-term shareholder returns [5]

Core Viewpoint - Eaton Corporation plc (NYSE:ETN) is recognized as a significant player in the AI sector, with Melius upgrading the stock to "Buy" from Neutral and setting a price target of $495, indicating a potential upside of 35% from the current price [1]. Group 1: Stock Upgrade and Valuation - Melius has raised Eaton's price target from $412 to $495, reflecting a positive outlook on the stock's performance [1]. - Concerns regarding Eaton's valuation and slowing earnings momentum have diminished due to increased AI capital spending and a more favorable valuation [1]. Group 2: Market Demand and Growth Potential - Analysts at Melius predict that demand for Eaton's products will continue to exceed supply, even with the addition of new capacity [2]. - The cyclical segments of Eaton appear to be reaching a bottom, suggesting a potential growth phase starting in 2026 and beyond [2]. Group 3: Company Overview - Eaton Corporation plc is a global power management company that provides solutions in electrical, aerospace, vehicle, and eMobility sectors [2].