In the fourth quarter of 2025, Madison Large Cap Fund demonstrated a robust performance, surpassing the S&P 500 Index. The fund's investor letter highlighted its continued confidence in CDW Corporation, an information technology solutions provider, despite a recent downturn in its stock performance. The fund acknowledged that CDW's operating expenses had outpaced revenue growth in the previous quarter, leading to a temporary dip in earnings. However, Madison's long-term investment strategy hinges on the belief that CDW will effectively manage its expenses, paving the way for renewed earnings expansion. This strategic foresight underscores Madison's commitment to identifying and nurturing companies with strong fundamental prospects, even amidst short-term challenges. The broader market saw sustained growth, predominantly driven by mega-cap technology firms, yet Madison's diversified approach allowed it to navigate these trends successfully.
Madison Large Cap Fund Backs CDW Corporation for Enduring Growth
In a noteworthy disclosure from its fourth-quarter 2025 investor letter, Madison Large Cap Fund, a prominent investment advisory entity, reaffirmed its strong belief in the future trajectory of CDW Corporation (NASDAQ: CDW). This announcement, made following a period where CDW's stock closed at $123.13 per share on February 23, 2026, reflects the fund's strategic long-term vision for the IT solutions giant. Despite experiencing a modest one-month decline of 3.35% and a more substantial 34.05% decrease over the preceding 52 weeks, Madison Investments views these fluctuations as temporary, anticipating a resurgence in the company's financial performance.
CDW Corporation, a key player in the information technology sector, specializes in providing comprehensive IT solutions. The company's market capitalization stands at a significant $16.138 billion, underscoring its substantial presence in the industry. Madison Large Cap Fund's analysis from the final quarter of 2025 indicated that while CDW registered an improvement in revenue growth, this was temporarily overshadowed by a more rapid increase in operational expenditures, resulting in a moderation of earnings growth. However, the fund's conviction is rooted in the expectation that CDW will diligently manage its expenses, thereby facilitating a rebound in profitability in the foreseeable future.
This steadfast commitment to CDW comes as Madison Large Cap Fund itself delivered an impressive performance in Q4 2025, achieving a 3.43% appreciation. This figure notably surpassed the S&P 500 Index's return of 2.65% for the same period. The broader market context revealed that the S&P 500 had an annual growth of 17.9% for the entirety of 2025, marking an impressive three-year annual growth exceeding 21%. While market leadership was largely concentrated in High Beta and Momentum factors, with mega-cap technology companies being primary drivers, Madison's fund showcased its ability to generate superior returns through its considered investment choices, including its continued support for CDW Corporation.
The Madison Large Cap Fund's unwavering support for CDW Corporation, an information technology solutions powerhouse, provides a compelling narrative for investors. This scenario highlights the strategic importance of long-term vision over short-term market volatility. It teaches us that astute investment decisions often involve looking beyond immediate challenges, such as elevated operating expenses, to the underlying strengths and future potential of a company. By identifying businesses with robust fundamentals and a clear path to expense management and earnings growth, funds like Madison not only secure their own success but also offer a beacon of confidence to the broader market. This approach underscores the value of diligent research and a belief in a company's capacity to adapt and thrive, even when the immediate financial indicators might suggest caution. It's a reminder that true investment acumen lies in discerning enduring value amidst transient market dynamics.