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 MKS Inc. (NASDAQ:MKSI) as one of its leading contributors. MKS Inc. (NASDAQ:MKSI) is a leading technology company that provides foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications. On March 10, 2026, MKS Inc. (NASDAQ:MKSI) stock closed at $225.28 per share. One-month return of MKS Inc. (NASDAQ:MKSI) was -13.04%, and its shares gained 178.05% over the past 52 weeks. MKS Inc. (NASDAQ:MKSI) has a market capitalization of $15.15 billion.
Madison Mid Cap Fund stated the following regarding MKS Inc. (NASDAQ:MKSI) in its fourth quarter 2025 investor letter:
“The top five contributors for the quarter were Ross Stores, MKS Inc. (NASDAQ:MKSI), Waters, PACCAR, and Amphenol. MKS shares advanced nicely during the quarter as the business continues to benefit from end markets picking up. Specifically, their Electronics and Packaging business is showing accelerating growth, partly due to AI-related applications.”
MKS Inc. (NASDAQ:MKSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 52 hedge fund portfolios held MKS Inc. (NASDAQ:MKSI) at the end of the fourth quarter, up from 40 in the previous quarter. In Q4 2025, MKS Inc. (NASDAQ:MKSI) reported revenue of $1.03 billion, up 5% sequentially and 10% year-over-year. While we acknowledge the potential of MKS Inc. (NASDAQ:MKSI) 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.
