Verisk Analytics (VRSK) Positions Well for Long-Term Expansion

Verisk Analytics (VRSK) Positions Well for Long-Term Expansion

Wed, September 23, 2026 at 3:53 PM GMT+3 3 min read

• VRSK -0.05%

Madison Investments, an investment advisor, released its second-quarter 2026 investor letter for the "Madison Mid Cap Fund". You can download a copy of the letter here. U.S. stock market indices posted their strongest second-quarter performance since 2020, driven largely by enthusiasm for Artificial Intelligence. Nine of the ten largest companies in the Russell Midcap Index benefit directly from the AI data-center boom; one rose 257%, while the others gained between 17% and 136%. A small group of AI-related stocks has powered most of the index's year-to-date returns, reversing the broader market participation seen earlier this year. Although AI will reshape society and the economy, today's apparent winners may not remain so, and current valuations may prove unsustainable. Other risks include unpredictable federal policy, partisan gridlock, expanding deficits, inflation, higher interest rates, stretched consumer finances, and geopolitical volatility. The Class Y of the Fund returned 8.58% in the quarter compared to Russell Midcap's 13.83% return. The firm believes its Mid Cap portfolio combines strong long-term growth prospects with resilience amid potential challenges. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, Madison Mid Cap Fund highlighted Verisk Analytics, Inc. (NASDAQ:VRSK) as a newly added position. Verisk Analytics, Inc. (NASDAQ:VRSK) is a US-based technology company that offers data analytics and technology solutions to the insurance industry. On September 22, 2026, Verisk Analytics, Inc. (NASDAQ:VRSK) closed at $171.94 per share. Over the past month, Verisk Analytics, Inc. (NASDAQ:VRSK) declined 8.48%, but its shares are down 29.23% over the past year. Verisk Analytics, Inc. (NASDAQ:VRSK) has a market capitalization of $22.37 billion, and its stock has traded within a 52-week range of $155.94 to $253.35.

Madison Mid Cap Fund stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q2 2026 investor letter:

"We purchased shares in Verisk Analytics, Inc. (NASDAQ:VRSK), the dominant provider of data and analytics to property and casualty insurers in the U.S. Insurers use Verisk's proprietary data to assess and price risks, and to manage claims. Because its data is so embedded in its clients' daily workflows, it's often the last thing that an insurance client will cut back on, even in weak insurance markets. Since the company went public in 2009, Verisk has never registered a down year in revenue, and with the increasing demand for data, we anticipate that its revenue should continue to grow at a healthy clip for many years. With the market selling off asset-light businesses, we were able to purchase Verisk at an attractive valuation."

Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 63 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the second quarter, compared to 50 in the previous quarter. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) 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.

In another article, we discussed Verisk Analytics, Inc. (NASDAQ:VRSK) and shared Parnassus Core Equity Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.