Madison Large Cap Fund Maintains Position on Agilent Technologies (A) Amid AI Fears

Madison Investments’ first-quarter 2026 letter says its Large Cap Fund lagged the market in part because it held underweight exposure to sectors that benefited from rising commodity prices and inflation concerns. The piece focuses on Agilent Technologies (A), which the fund kept as a top holding despite short-term disappointment. Agilent’s results were broadly in line with expectations, but investors became more cautious because 2026 guidance pointed to a slower end-market recovery than hoped and because some market participants fear AI could reduce demand for lab instruments and consumables. The fund argues that this AI risk is overstated and unlikely to materially affect revenue, since early-stage R&D is a small part of Agilent’s business. The article is supportive on Agilent’s long-term outlook, even though the stock has faced investor skepticism and mixed sentiment around the AI disruption narrative.