Madison Investments logo
A woman sits at a desk working on a laptop in a modern office with wooden accents, glass walls, and plants. The image is taken from a hallway, capturing a quiet, focused atmosphere.

Equity

Madison Small Cap Equity

Strategy Overview

Madison Small Cap is an actively managed, high-conviction strategy that aims to provide superior long-term returns while assuming lower-than-average risk. To pursue this goal, we conduct intensive fundamental research to build a concentrated, all-weather portfolio of small cap companies that exhibit high-quality, durable growth characteristics purchased at a significant discount to what we believe their true value to be.

Key Facts

Benchmarks Russell 2000 Index, Russell 2500 Index
Strategy Inception October 2001
Positions 40-60
Investment Vehicles Separate Account
Mutual Fund
Fact Sheet
Commentary
Mutual Fund

Experienced Management

See full team

Investment Process

The strategy employs a research-intensive, bottom-up approach to identify high-quality, durable, and growing small companies strategically positioned in attractive industries. Our research revolves around three major categories:

  • Strong business models with a special focus on sustainable competitive advantages, durable earnings growth, and strong balance sheets
  • Astute management teams that create shareholder value
  • Valuation assessment focused on future earnings potential

Defining Characteristics

Active management

High-conviction portfolio of quality, durable, and growing small companies.

Risk-conscious

Proprietary Risk Portal and valuation discipline help manage downside risk.

Flexible

Flexible mandate empowers portfolio managers to seek alpha from a wide opportunity set ($100M to $15B market).

Madison U.S. Equity Department

Contact us
Contact us

Consider the investment objectives, risks, and charges and expenses of Madison Funds carefully before investing. Each fund’s prospectus contains this and other information about the fund. Call 800.877.6089 or visit madisonfunds.com to obtain a prospectus and read it carefully before investing.

An investment in small cap securities is subject to risk and there can be no assurance that the account will achieve its investment objective. The risks associated with an investment can increase during times of significant market volatility. The principal risks of investing include: equity risk, small cap price volatility risk, small cap illiquidity risk, value investing risk, ETF risk, capital gain realization risks to taxpaying shareholders, and foreign security and emerging market risk. Investing in small, mid size or emerging growth companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. Contact Madison for more detailed information regarding these risks.

Madison’s expectation is that investors in the strategy will participate near fully in market appreciation during bull markets and experience something less than full participation during bear markets compared with investors in portfolios holding more speculative and volatile securities. Therefore, the investment philosophy is intended to represent a conservative investment strategy. There is no assurance that Madison’s expectations regarding this investment strategy will be realized.

Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only, and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance.

Russell 2000® Index is a small-cap market index that measures the performance of the smallest 2,000 companies in the Russell 3000® Index.

Russell 2500™ Index is a broad index, featuring 2,500 stocks that cover the small- and mid-cap market capitalizations of the U.S. equity universe.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.