Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund (Class Y) decreased 1.86% compared to the 0.62% increase for the Russell Midcap Index. The Fund returned 10.46% in the full year 2024 period, compared to 15.34% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Madison Mid Cap Fund highlighted stocks like Microchip Technology Incorporated (NASDAQ:MCHP), in the fourth quarter 2024 investor letter. Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was -1.49%, and its shares gained 34.58% of their value over the last 52 weeks. On January 29, 2024, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $56.03 per share with a market capitalization of $30.089 billion.
Madison Mid Cap Fund stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its Q4 2024 investor letter:
“We didn’t make any new investments in the quarter, but added to two holdings: Microchip Technology Incorporated (NASDAQ:MCHP) and CDW. Microchip has been working through channel inventory adjustments and weak end market demand. Recently, the company’s Chairman (and previously long-time CEO) Steve Sanghi returned to the CEO role and has embarked on a plan to revitalize operations. New design activity and product releases have been strong across the portfolio, implying that the core innovation engine remains strong. Thus, we have full confidence that Steve need only to tweak some operational processes to re-position the company for success.”
A semiconductor wafer at various stages of fabrication, showing the company’s range of expertise.
Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the third quarter which was 46 in the previous quarter. In the September quarter, Microchip Technology Incorporated (NASDAQ:MCHP) reported $1.164 billion in net sales, down 6.2% sequentially. While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Microchip Technology Incorporated (NASDAQ:MCHP) and shared Aristotle Value Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.