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Madison Small Cap Fund highlights struggles at Option Care Health
The Q2 investor letter cites reimbursement delays, therapy volume declines, and biosimilar pricing pressure behind the fund's decision to exit OPCH.
Madison Funds, manager of the Madison Small Cap Fund, highlighted Option Care Health as one of its notable holdings in its Q2 2026 investor letter, pointing to multiple headwinds affecting the infusion services company. The fund said Option Care Health had a tough quarter after it lost one of its more profitable specialty drugs, with the related net profitability impact carrying into 2026. Madison Small Cap Fund attributed the ongoing weakness to reimbursement delays, declines in therapy volume, and biosimilar related pricing pressures, according to the investor update. Madison also said it exited its position in Option Care Health following the difficult period. The letter was issued as the small-cap market posted strong Q2 performance, with the fund returning 12.7% in the quarter versus 21.5% for the Russell 2000 and 20.2% for the Russell 2500. The fund cited underperformance linked to recent investments in underperforming software companies, even as it expressed continued confidence in the long-term potential of those software investments.
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