Madison Investments, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Large Cap Fund”. A copy of the letter is available to download here. The Madison Large Cap Fund (Class I) declined 2.7% in the quarter, outperforming the S&P 500’s -4.33% return. The fund focuses on long-term capital appreciation. The quarter saw a shift in the equity market beyond the mega-cap technology stocks into physical economy stocks, influenced by fears of AI disruption. Additionally, rising commodity prices due to the Middle East conflict reignited inflation concerns, benefiting sectors such as Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not invest in, impacting its relative performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Madison Large Cap Fund highlighted stocks like Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META), the parent company of dominant social media platforms, is a multinational technology company that develops products to connect people. On June 12, 2026, Meta Platforms, Inc. (NASDAQ:META) closed at $566.98 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -7.32%, and its shares lost 19.32% over the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.44 trillion.
Madison Large Cap Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q1 2026 investor letter:
“During the quarter, we initiated positions in Meta Platforms, Inc. (NASDAQ:META) and Salesforce.com. The second new investment was in Meta Platforms, which owns three dominant, global social network and communications apps in Facebook, Instagram, and WhatsApp. We believe revenue growth will remain strong as its user count grows and monetization of its apps improves. Meta is investing heavily in AI and seeing real benefits in the personalization and efficacy of ads in its social network. Additionally, WhatsApp is finally starting to commercialize its business after many years of focusing on acquiring users. Investors are concerned about increasing capital expenditures, but we believe much of it will garner strong returns, and management will remain prudent in managing spending over the long term.”
Meta Platforms, Inc. (NASDAQ:META) holds 5th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 262 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, compared to 256 in the previous quarter. Meta Platforms, Inc. (NASDAQ:META) reported total Q1 2026 revenue of $56.3 billion, up 33% or 29% on a constant currency basis. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) 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.