Madison Investments, an investment advisor, released its “Madison Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The small-cap market rebounded in the fourth quarter, with the Russell 2000 Index rising 14%, following a benign inflation report in October. In the fourth quarter, the fund (Class Y) returned 11.2% underperforming the benchmark’s 14.0% return. The fund returned 16.1% YTD compared to a 16.9% return for the benchmark. The broader index, the Russell 2500, posted a 13.4% quarterly return and a 17.4% annual return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Small Cap Fund featured stocks such as LegalZoom.com, Inc. (NASDAQ:LZ) in its Q4 2023 investor letter. Headquartered in Glendale, California, LegalZoom.com, Inc. (NASDAQ:LZ) is an online platform for legal and compliance solutions. On January 16, 2024, LegalZoom.com, Inc. (NASDAQ:LZ) stock closed at $10.58 per share. One-month return of LegalZoom.com, Inc. (NASDAQ:LZ) was -5.79%, and its shares gained 27.93% of their value over the last 52 weeks. LegalZoom.com, Inc. (NASDAQ:LZ) has a market capitalization of $1.988 billion.
Madison Small Cap Fund stated the following regarding LegalZoom.com, Inc. (NASDAQ:LZ) in its fourth quarter 2023 investor letter:
“We have been following Moelis & Company (MC) and LegalZoom.com, Inc. (NASDAQ:LZ) for a few years now and bought both stocks in the fourth quarter. Legal services is an under-digitized market in the early days of becoming an online opportunity and LegalZoom is the market share leader. The legal and regulatory aspects of running a business are still mostly managed through offline law practices, which are costly and inefficient for simple tasks. Much like Intuit did with TurboTax in the tax preparation market, LegalZoom aims to enable small businesses to complete certain legal transactions themselves through software that guides them through the process. Further, the company provides access to attorneys and accountants through monthly subscription plans that enable small business owners to get their legal and tax questions answered in an efficient and cost-effective manner. The company has a strong, cash rich balance sheet with zero debt. Our assessment of PMV is $17.”
A close-up of a person signing a loan agreement, emphasising safety and legality of this company’s fixed & floating rate loan services.
LegalZoom.com, Inc. (NASDAQ:LZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held LegalZoom.com, Inc. (NASDAQ:LZ) at the end of third quarter which was 22 in the previous quarter.
We discussed LegalZoom.com, Inc. (NASDAQ:LZ) in another article and shared the list of best divorce lawyers in each of biggest cities in the US. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
