Carlisle Companies (CSL) Fell Due to Near-Term Challenges

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was difficult for the Small Cap Fund.  The small-cap index’s performance was broad-based. The Madison Small Cap Fund (class Y) was down 1.3% in the quarter, significantly underperforming the benchmarks. The underperformance was driven by stock selection and exacerbated by a very speculative market. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, the Madison Small Cap Fund highlighted stocks such as Carlisle Companies Incorporated (NYSE:CSL). Headquartered in Scottsdale, Arizona, Carlisle Companies Incorporated (NYSE:CSL) engages in the manufacturing and supply of building envelope products and solutions. The one-month return of Carlisle Companies Incorporated (NYSE:CSL) was -8.64%, and its shares lost 34.14% of their value over the last 52 weeks. On November 21, 2025, Carlisle Companies Incorporated (NYSE:CSL) stock closed at $309.35 per share, with a market capitalization of $12.93 billion.

Madison Small Cap Fund stated the following regarding Carlisle Companies Incorporated (NYSE:CSL) in its third quarter 2025 investor letter:

"Underperformance in Industrials was concentrated in three large investments. Carlisle Companies Incorporated (NYSE:CSL), WillScott Holdings (WSC), and Core and Main (CMN) were down in the quarter. Although there is some near-term risk to commercial roofing in 2025 and normalizing inventory levels at its distributors, we expect CSL to generate $40 per share in earnings by 2030, This is an excellent business with high margins, a diverse portfolio and a strong recurring revenue profile."

Carlisle Companies Incorporated (NYSE:CSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held Carlisle Companies Incorporated (NYSE:CSL) at the end of the second quarter, up from 26 in the previous quarter. In the third quarter of 2025, Carlisle Companies Incorporated (NYSE:CSL) reported $1.3 billion in revenues, marking a 1% year-over-year increase. While we acknowledge the potential of Carlisle Companies Incorporated (NYSE:CSL) 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 covered Carlisle Companies Incorporated (NYSE:CSL) and shared the list of best 52-week low stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.