Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSoumya EswaranTue, June 30, 2026 at 3:47 PM GMT+2 3 min readMadison Investments, an investment advisor, released its first-quarter 2026 investor letter for the "Madison Mid Cap Fund". The Madison Mid Cap Fund (Class I) declined 4.28% in the quarter, compared to the Russell Midcap Index's 1.29% return. A copy of the letter can be downloaded here. The first quarter saw a market shift from tech stocks to companies in the physical economy driven by a better economic outlook and AI disruption fears. This transition favored the 'HALO trade' (Heavy Assets, Low Obsolescence), benefiting resilient businesses. In March, geopolitical conflicts and rising commodity prices heightened inflation concerns, leading to strong performance in Energy and Materials sectors, while Utilities also gained. This trend posed challenges for the Madison Mid Cap Fund due to its limited exposure to these sectors. In this environment, the fund identifies opportunities in high-quality, underappreciated businesses and is actively investing in them. Please review the Fund's top five holdings to gain insights into its key selections for 2026.In its first-quarter 2026 investor letter, Madison Mid Cap Fund highlighted Bentley Systems, Incorporated (NASDAQ:BSY). Headquartered in Exton, Pennsylvania, Bentley Systems, Incorporated (NASDAQ:BSY) is an infrastructure engineering software solutions provider. On June 29, 2026, Bentley Systems, Incorporated (NASDAQ:BSY) closed at $29.72 per share. One-month return of Bentley Systems, Incorporated (NASDAQ:BSY) was -12.59%, and its shares lost 44.65% over the past 52 weeks. Bentley Systems, Incorporated (NASDAQ:BSY) has a market capitalization of $9.03 billion.Madison Mid Cap Fund stated the following regarding Bentley Systems, Incorporated (NASDAQ:BSY) in its Q1 2026 investor letter:"Amid all the concern regarding the potential for AI to disrupt software companies, we opportunistically added two new software investments to the portfolio, both companies with unique characteristics that we believe will prove to be resilient to AI disruption, Tyler Technologies and Bentley Systems, Incorporated (NASDAQ:BSY). Founded in 1984 by five Bentley brothers, Bentley Systems maintains a leadership position in software that enables the design, construction and monitoring of civil infrastructure assets. Although the company hired its first outside CEO in 2024, it remains an owner-operator, with Greg Bentley serving as Executive Chairman, and the family holding just under 50% of the equity. Bentley is growing recurring subscription revenues at a consistent low-double digit rate while expanding operating margins annually. AI is beginning to enhance the productivity of designers, and will help the architecture, engineering, and construction industry attack the growing backlog of both developed and emerging market infrastructure projects. We foresee many years of strong growth ahead."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info