Madison Investments, an advisory firm, published its investor letter for the “Madison Large Cap Fund” covering the fourth quarter of 2025. A full copy of this letter is available for download here. During the fourth quarter, the S&P 500 saw a return of 2.65%, culminating in an annual return of 17.9% for the entirety of 2025. Over the preceding three years, the Index demonstrated an average annual growth exceeding 21%. Consistent with recent patterns, market leadership was characterized by High Beta and Momentum factors, with limited overall participation. Nevertheless, the fourth quarter brought slight improvements to previously underperforming sectors such as Healthcare, Financials, and Consumer Discretionary. Despite this, giant technology companies continued to be the main contributors to the S&P 500’s overall performance, indicating significant stock concentration. In contrast to these market conditions, the Madison Large Cap Fund (Class I) achieved a 3.43% appreciation, outperforming the S&P 500 Index’s 2.65% return. Furthermore, investors are encouraged to review the Fund’s top five holdings to identify its leading selections for 2025.
Within its investor letter for the fourth quarter of 2025, the Madison Large Cap Fund drew attention to companies such as Workday, Inc. (NASDAQ:WDAY). Workday, Inc. (NASDAQ:WDAY) operates as a prominent enterprise software provider, offering cloud-based applications for human resources and financial management. On February 23, 2026, shares of Workday, Inc. (NASDAQ:WDAY) closed at a price of $129.21. The stock experienced a one-month decline of -32.30%, and its value fell by 50.65% over the previous 52 weeks. Workday, Inc. (NASDAQ:WDAY) holds a market capitalization of $34.499 billion.
The Madison Large Cap Fund’s fourth-quarter 2025 investor letter included the following assessment regarding Workday, Inc. (NASDAQ:WDAY):
“The portfolio experienced a dynamic quarter. We initiated new positions in Workday, Inc. (NASDAQ:WDAY) and Honeywell. Workday is a top-tier software firm specializing in human resources and financial management solutions. Over the past couple of years, the company has transitioned to a new executive team, which is committed to both maintaining double-digit revenue growth and enhancing profit margins. To ensure sustained double-digit growth, Workday has broadened its product offerings to cater to underserved customer segments, including public institutions, international corporations, and mid-sized enterprises. The company is also dedicating resources to the commercialization of AI agents, which are expected to contribute positively to revenue growth. Similar to trends observed in other leading software companies, we also anticipate that margins have the potential for significant expansion under the new leadership. In the coming years, this combination of robust revenue growth, expanding margins, and share repurchases is poised to generate substantial growth in earnings per share. We believe this growth outlook is undervalued, particularly given Workday’s excellent balance sheet, strong cash flow, and industry-leading customer retention rates.”
