Madison Investments, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Large Cap Fund”. A copy of the letter is available to download here. The Madison Large Cap Fund (Class I) declined 2.7% in the quarter, outperforming the S&P 500’s -4.33% return. The fund focuses on long-term capital appreciation. The quarter saw a shift in the equity market beyond the mega-cap technology stocks into physical economy stocks, influenced by fears of AI disruption. Additionally, rising commodity prices due to the Middle East conflict reignited inflation concerns, benefiting sectors such as Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not invest in, impacting its relative performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Madison Large Cap Fund highlighted Deere & Company (NYSE:DE). Deere & Company (NYSE:DE) is a leading industrial company that manufactures and distributes equipment used in agriculture, construction, forestry, and turf care. On June 15, 2026, Deere & Company (NYSE:DE) closed at $575.47 per share. One-month return of Deere & Company (NYSE:DE) was 3.12%, and its shares gained 10.01% over the past 52 weeks. Deere & Company (NYSE:DE) has a market capitalization of $155.34 billion.
Madison Large Cap Fund stated the following regarding Deere & Company (NYSE:DE) in its Q1 2026 investor letter:
“The top five contributors for the quarter were Keysight Technologies, Analog Devices, Texas Instruments, Deere & Company (NYSE:DE), and PACCAR. Deere and PACCAR were also strong contributors in the quarter. While end market conditions remain subdued in agriculture equipment and commercial trucking, it appears that the worst of the recent downcycle is likely behind us. Furthermore, Deere and PACCAR stocks also benefited from investors favoring the “HALO trade” during the quarter. As a result, we modestly trimmed our holdings in both companies when valuations, in our view, began to incorporate a recovery in profits.”
Deere & Company (NYSE:DE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held Deere & Company (NYSE:DE) at the end of the first quarter, up from 60 in the previous quarter. While we acknowledge the potential of Deere & Company (NYSE:DE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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