According to CoinMeta, the investment strategy letter for small-cap funds, Madison, in the second quarter of 2026 indicated that the small-cap market performed exceptionally strongly during that period. The market correctly predicted the end of the conflicts in the Middle East at the end of the first quarter; the Russell S&P 500 index almost hit its bottom the day before the quarter-end and then rebounded sharply, driven mainly by the technology, healthcare, and industrial sectors. The main themes in these sectors were the boom in capital expenditure on artificial intelligence. The Madison small-cap fund (Class I) achieved a return of 12.7% in the second quarter, whereas the Russell S&P 500 index returned 21.5%. Although technology investments performed well during the quarter, recent investments in software companies still dragged down the overall performance. The fund's investments in the healthcare sector were not successful, especially Option Care, which faced difficulties due to the loss of a profitable drug. The fund also made several portfolio adjustments during the quarter, selling three stocks and adding four new investments.