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Soumya Eswaran
Fri, July 17, 2026 astatine 9:52 AM CDT 3 min read
Madison Small Cap Fund, managed by Madison Funds, released its Q2 2026 capitalist letter. A transcript of the missive tin beryllium downloaded fhere. The small-cap marketplace showed exceptional spot successful Q2, mostly owed to anticipated bid successful 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% successful the quarter, underperforming the Russell 2000's 21.5% and Russell 2500's 20.2%. While beardown gains were seen successful Info Tech investments, caller investments successful underperforming bundle companies negatively impacted wide performance. Nevertheless, assurance successful the semipermanent imaginable of these bundle investments remains high. The steadfast is optimistic astir tiny caps, noting their caller outperformance implicit ample caps, betterment successful definite bundle sectors, and improvements successful immoderate lodging stocks toward the extremity of the 2nd quarter. Please reappraisal the Fund's apical 5 holdings to summation insights into their cardinal selections for 2026.
In its Q2 2026 capitalist letter, Madison Small Cap Fund highlighted Extreme Networks, Inc. (NASDAQ:EXTR). Extreme Networks, Inc. (NASDAQ:EXTR) is simply a unreality driven endeavor networking institution that develops and markets web infrastructure instrumentality and related software. On July 16, 2026, Extreme Networks, Inc. (NASDAQ:EXTR) closed astatine $29.76 per share, reflecting a marketplace capitalization of $3.93 billion. Extreme Networks, Inc. (NASDAQ:EXTR) posted a one-month instrumentality of -3.92%, portion its shares gained 71.86% implicit the past 52 weeks.
Madison Small Cap Fund stated the pursuing regarding Extreme Networks, Inc. (NASDAQ:EXTR) successful its Q2 2026 capitalist update:
"Extreme Networks, Inc. (NASDAQ:EXTR) (market capitalization of ~$4 billion) is simply a planetary supplier of unreality driven endeavor networking solutions. The institution designs and manufactures wired and wireless LAN (local country network) hardware, software-defined networking (SDN) fabric, and cloud-native absorption tools. They alteration captious connectivity for precocious density, high-security environments, including nonrecreational sports stadiums, healthcare systems, and large-scale authorities and backstage enterprises. Extreme has successfully pivoted from a bequest hardware vendor to a cloud-managed, software-defined platform, creating heavy "stickiness" wrong its lawsuit base. In endeavor networking, the "specification moat" is significant. Once an enactment builds its web cloth and information policies wrong Extreme's unreality dashboard, the operational hazard and outgo of migrating to a rival are prohibitively high. Their strategy of offering superior simplicity and faster deployment times allows them to aggressively instrumentality marketplace stock from slower-moving, larger incumbents similar Cisco and Juniper. The existent industry-wide modulation to Wi-Fi 7 is simply a catalyst, arsenic these caller hardware deployments inherently thrust higher connect rates for Extreme's cloud-management software. We besides judge that arsenic enterprises statesman deploying AI astatine scale, Extreme's hardware could go the hardware foundation. Our intrinsic worth estimation is $40."
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