Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSoumya EswaranFri, July 17, 2026 at 4:28 PM GMT+2 3 min readMadison Small Cap Fund, managed by Madison Funds, released its Q2 2026 investor letter. A copy of the letter can be downloaded here. The small-cap market showed exceptional strength in Q2, largely due to anticipated peace in the Middle East. The Russell 2000 Index began to rally, propelled by Information Technology, Health Care, and Industrials. The Madison Small Cap Fund (Class I) returned 12.7% in the quarter, underperforming the Russell 2000's 21.5% and Russell 2500's 20.2%. While strong gains were seen in Info Tech investments, recent investments in underperforming software companies negatively impacted overall performance. Nevertheless, confidence in the long-term potential of these software investments remains high. The firm is optimistic about small caps, noting their recent outperformance over large caps, recovery in certain software sectors, and improvements in some housing stocks toward the end of the second quarter. Please review the Fund's top five holdings to gain insights into their key selections for 2026.In its Q2 2026 investor letter, Madison Small Cap Fund highlighted Indie Semiconductor, Inc. (NASDAQ:INDI). Indie Semiconductor, Inc. (NASDAQ:INDI) designs and develops various semiconductor and infrastructure software solutions. On July 16, 2026, Indie Semiconductor, Inc. (NASDAQ:INDI) closed at $3.81 per share, reflecting a market capitalization of $864.5 million. Indie Semiconductor, Inc. (NASDAQ:INDI) posted a one-month return of -13.06%, while its shares lost 21.05% over the past 52 weeks.Madison Small Cap Fund stated the following regarding Indie Semiconductor, Inc. (NASDAQ:INDI) in its Q2 2026 investor update:"Indie Semiconductor, Inc. (NASDAQ:INDI) is an industrial semiconductor company (market capitalization of ~$1 billion) that is largely focused on the automotive market. The company is in the process of closing two transformative transactions: the sale of a commodity semiconductor business focused on China, and the acquisition of a company focused on industrial robotics or physical AI from German industrial firm Osram. We believe these two transactions will materially improve both the balance sheet and the business's economics, which are not reflected in the current valuation. The automotive semiconductor market has been depressed for several years and is poised for a recovery as inventory overhangs have been largely cleared. INDI has a significant opportunity to increase content per car by leveraging its impressive intellectual property in vision and LiDAR (Light Detection and Ranging). We estimate the intrinsic value for INDI to be $15."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info