Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSoumya EswaranFri, July 17, 2026 at 4:30 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 Belden Inc. (NYSE:BDC) as a newly added position. Belden Inc. (NYSE:BDC) is a US-based networking, connectivity, and industrial automation solutions company that enables data infrastructure to unlock new possibilities for its customers. On July 16, 2026, Belden Inc. (NYSE:BDC) closed at $101.20 per share. One-month return of Belden Inc. (NYSE:BDC) was -17.97%, and its shares lost 20.93% over the past 52 weeks. Belden Inc. (NYSE:BDC) has a market capitalization of $3.94 billion.Madison Small Cap Fund stated the following regarding Belden Inc. (NYSE:BDC) in its Q2 2026 investor update:"Belden Inc. (NYSE:BDC) is a 120-year-old specialty networking and connectivity company that has spent the past six years deliberately transforming from a commodity wire and cable maker to an integrated IT/OT (information technology/operational technology) networking and solutions provider, serving industrial automation, smart buildings, broadband service providers, and data centers. The economics of the business have been steadily improving, with expanding gross and operating margins. Recently, the company announced the acquisition of Ruckus Networks, adding Wi-Fi Enterprise switching and an AI-driven cloud platform. The stock sold off significantly on this news, but we think this is a transformational acquisition with limited integration risk that will step up both the company's profitability and growth rate. Belden is a sticky industrial component and connector business with deepening moats, and we believe this acquisition has the potential to drive a material upward re-rating of the company's valuation. Our intrinsic value estimate is $175."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info