Madison Investments released its “Madison Small Cap Fund” third-quarter 2025 investor letter, reporting a 1.3% decline in the small-cap index, significantly underperforming benchmarks. The underperformance was attributed to stock selection and a speculative market. Check the fund’s top five holdings for insights into its 2025 picks. Hexcel Corporation (NYSE:HXL) was highlighted in the letter, with a one-month return of -3.08% and a market capitalization of $5.616 billion. Madison Small Cap Fund initiated a new investment position in Hexcel, praising its advanced composite materials and strong market position in aerospace and defense sectors. Although not among the 30 most popular stocks among hedge funds, Hexcel offers potential upside with less downside risk compared to AI stocks. Another article covered Hexcel’s soaring stock performance and provided insights from hedge fund investor letters in Q3 2025. For more information, check out The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Read more at Yahoo Finance: Here’s What Drove Madison Small Cap Fund to Invest in Hexcel Corp. (HXL)