Madison Large Cap Fund Picks Salesforce (CRM) Despite Market Sell-Off

Soumya Eswaran Mon, June 15, 2026 at 10:16 AM EDT 3 min read **

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Madison Investments**, an investment advisor, released its first-quarter 2026 investor letter for the “Madison Large Cap Fund”. A copy of the letter is available to download here. The Madison Large Cap Fund (Class I) declined 2.7% in the quarter, outperforming the S&P 500's -4.33% return. The fund focuses on long-term capital appreciation. The quarter saw a shift in the equity market beyond the mega-cap technology stocks into physical economy stocks, influenced by fears of AI disruption. Additionally, rising commodity prices due to the Middle East conflict reignited inflation concerns, benefiting sectors such as Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not invest in, impacting its relative performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.

In its first-quarter 2026 investor letter, Madison Large Cap Fund highlighted Salesforce, Inc. (NYSE:CRM). Salesforce, Inc. (NYSE:CRM) is a cloud computing company that offers Customer Relationship Management (CRM) technology that brings companies and customers together. On June 12, 2026, Salesforce, Inc. (NYSE:CRM) closed at $165.89 per share. One-month return of Salesforce, Inc. (NYSE:CRM) was -7.57%, and its shares lost 37.13% over the past 52 weeks. Salesforce, Inc. (NYSE:CRM) has a market capitalization of $135.86 billion.

Madison Large Cap Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q1 2026 investor letter:

"During the quarter, we initiated positions in Meta Platforms and Salesforce, Inc. (NYSE:CRM). Salesforce is the leading provider of customer relationship management and related software with an especially strong position among large enterprises. The business generates immense cash flow, and over the past several years, has appropriately shifted its capital allocation policies to reflect its more mature status. For example, shortly after we initiated our investment, Salesforce announced a $25 billion accelerated share repurchase plan, which we expect will be additive to per share value. While AI presents a potential threat, we believe Salesforce can leverage its operating platform, distribution, and deep customer relationships to commercialize its own suite of AI products. The market has punished its shares on the AI disruption risk and the stock trades for a low to-mid-teens P/E ratio, which is unduly low in our view."

Northland Trims Salesforce (CRM) Valuation Following Earnings Report Salesforce, Inc. (NYSE:CRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 101 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the first quarter, compared to 115 in the previous quarter. In the first quarter of fiscal 2027, Salesforce, Inc. (NYSE:CRM) generated revenue of $11.13 billion, up 13% year over year on a nominal basis and 12% at constant currency. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Story Continues In another article, we covered Salesforce, Inc. (NYSE:CRM) and shared the list of best tech stocks to invest in on the dip. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.