Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for “Madison Mid Cap Fund”. A copy of the letter can be downloaded here. The Russell Midcap Index ended an incredibly successful three-year run with a full-year return of 10.6%, amounting to an annual increase of more than 14%. The market favored more volatile and speculative companies in 2025. This market environment poses challenges for the Madison Mid Cap portfolio, which is focused on high-quality, profitable businesses. Historically, this focus has supported long-term investment success, and the firm remains committed to it, is optimistic about the opportunities this year has presented, and has actively capitalized on them. Against this backdrop, the Fund decreased 1.2% in Q4 2025, lagging the Russell Midcap Index’s 0.2% increase. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks like Brown & Brown, Inc. (NYSE:BRO). Brown & Brown, Inc. (NYSE:BRO) is a leading insurance products and services company. On March 10, 2026, Brown & Brown, Inc. (NYSE:BRO) stock closed at $68.58 per share. One-month return of Brown & Brown, Inc. (NYSE:BRO) was 2.33%, and its shares lost 41.52% over the past 52 weeks. Brown & Brown, Inc. (NYSE:BRO) has a market capitalization of $23.415 billion.
Madison Mid Cap Fund stated the following regarding Brown & Brown, Inc. (NYSE:BRO) in its fourth quarter 2025 investor letter:
“The bottom five detractors for the quarter were Trex, Brown & Brown, Inc. (NYSE:BRO), CDW, Floor & Décor, and Liberty Broadband. Brown & Brown reported another quarter of slowing organic growth and management suggested the fourth quarter will see more of the same. While growth is slowing, it is simply moderating to a more normalized level and profitability remains high, setting up the company well to continue to compound value over the long run.”
Brown & Brown, Inc. (NYSE:BRO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge fund portfolios held Brown & Brown, Inc. (NYSE:BRO) at the end of the fourth quarter, compared to 44 in the previous quarter. While we acknowledge the potential of Brown & Brown, Inc. (NYSE:BRO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
