Group 1: Fund Performance - Madison Small Cap Fund underperformed its benchmark, the Russell 2000 Index, with a return of -0.4% compared to the benchmark's 2.2% return in Q4 2025 [1] - Sector allocation negatively impacted the Fund's performance, particularly in the healthcare sector, which was the weakest [1] - The Fund remains cautious about the speculative market, acknowledging that "markets can stay irrational longer than you can stay solvent" [1] Group 2: Cogent Communications Holdings, Inc. - Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is an internet services company with a market capitalization of $941.169 million [2] - The stock closed at $18.80 per share on March 13, 2026, with a one-month return of -28.95% and a 52-week loss of 73.49% [2] - The Fund decided to exit its position in Cogent Communications due to the company's dividend suspension and elevated leverage, which could lead to extreme swings in equity value [3] Group 3: Hedge Fund Interest - Cogent Communications Holdings, Inc. was held by 26 hedge fund portfolios at the end of Q4 2025, down from 31 in the previous quarter [5] - While acknowledging Cogent's potential, the Fund believes that certain AI stocks offer greater upside potential and less downside risk [5]

Core Viewpoint - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Cogent Communications Holdings, Inc., focusing on possible false or misleading statements made by the company and its executives [1]. Company Overview - Cogent Communications provides high-speed internet access, private network, and data center colocation space services [3]. Financial Performance - On November 6, 2025, Cogent Communications reported a nearly 6% year-over-year decrease in service revenue for the third quarter of 2025 [3]. - The company announced a significant dividend cut of 98%, reducing it from $1.015 per share in the previous quarter to $0.02 per share [3]. - Following the financial disclosures, Cogent Communications' share price fell nearly 35% [3].

Core Insights - Recurve Capital's third-quarter 2025 investor letter reported a composite return of +4% gross and +3% net, underperforming the S&P 500's +8% and Nasdaq's +11% returns [1] - The letter emphasized a thematic investment approach, particularly highlighting the momentum of AI stocks in late Q3 while noting that many cyclical sectors lagged [1] Company Analysis: Cogent Communications Holdings, Inc. (NASDAQ:CCOI) - Cogent Communications experienced a significant decline, with a one-month return of -52.75% and a 52-week loss of 76.99%, closing at $19.00 per share with a market capitalization of $934.471 million as of November 27, 2025 [2] - The investment management company expressed concerns regarding Cogent's performance, particularly noting a -59% drawdown in November alone, and emphasized the importance of transparency in assessing the situation [3] - Despite acknowledging Cogent's potential, the company indicated that certain AI stocks present greater upside potential and lower downside risk, suggesting a shift in focus towards AI investments [4]

Core Insights - Alphyn Capital Management's Master Account returned 3.0% net in Q3 2025, underperforming the S&P 500 Index which returned 8.1% [1] - The top ten holdings represented approximately 68% of the portfolio, with around 17% held in cash as of Q3 2025 [1] - The market narrative during the quarter was influenced by advancements in AI, credit cycles, and geopolitical uncertainties [1] Company Focus: Cogent Communications Holdings, Inc. - Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is highlighted as a key stock, providing high-speed Internet access, private network, and data center colocation services [2] - The stock experienced a one-month return of 15.10% but has lost 45.99% of its value over the past 52 weeks, closing at $44.14 per share with a market capitalization of $2.171 billion on October 27, 2025 [2] - The investment thesis for Cogent hinges on significant revenue growth from wavelength services, targeting approximately 500 installations per month with an average monthly revenue per wave of $2,000, leading to a potential revenue run rate of roughly $144 million at a contribution margin exceeding 90% [3]