Madison Large Cap Fund Sold Its Position in Accenture (ACN) Amid AI Concerns
Madison Investments, an investment advisor, recently published its first-quarter 2026 investor letter for the “Madison Large Cap Fund”. The fund experienced a decline of 2.7% in the quarter, outperforming the S&P 500’s -4.33% return. The primary focus of the fund is on long-term capital appreciation. During the quarter, there was a shift in the equity market away from mega-cap technology stocks towards physical economy stocks, driven by concerns about AI disruption. Additionally, escalating commodity prices due to the Middle East conflict reignited worries about inflation, benefiting sectors such as Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not invest in, impacting its relative performance. To gain insights into Madison Investments’ key selections for 2026, let’s review the top five holdings of the Fund.
In the first quarter of 2026, Madison Large Cap Fund highlighted Accenture plc (NYSE:ACN). Accenture plc, a professional services company specializing in consulting, technology, and outsourcing, was one of the leading detractors from performance during the quarter. As of June 12, 2026, Accenture plc closed at $170.28 per share, with a one-month return of -4.09% and a 45.83% loss over the past 52 weeks. The market capitalization of Accenture plc stands at $104.79 billion.
Madison Large Cap Fund’s investor letter for Q1 2026 mentioned the following regarding Accenture plc: “The bottom five detractors for the quarter were Gartner, Danaher, Workday, Accenture plc (NYSE:ACN), and Agilent Technologies. At Accenture, performance continues to be muted as clients eschew large discretionary projects and Department of Government Efficiency (“DOGE”) efforts weigh on its Public Service customer group. While we’ve long admired Accenture’s ability to retool its nearly 800,000 employee workforce to adapt and commercialize the latest technology with its large enterprise customer base, we sold our position in the quarter. The company has recently started to limit its disclosure of customer bookings related to AI technology and evolved its capital allocation framework to emphasize acquisitions outside its core business. In light of these developments and range of outcomes related to the impact of AI on its business, we elected to sell our investment.”
Accenture plc (NYSE:ACN) is not included in our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 64 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter, up from 71 in the previous quarter. In the first quarter of fiscal 2026, Accenture plc reported revenues of $18.7 billion, reflecting a 5% increase in local currency. While we recognize the potential of Accenture plc as an investment, we believe that certain AI stocks offer greater upside potential and carry less downside risk. If you’re on the lookout for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short-term AI stock.
