Madison Mid Cap Fund Trimmed its Position in Brown-Forman (BF-B)

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) returned 5.2% compared to the 8.5% increase for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Madison Mid Cap Fund highlighted stocks such as Brown-Forman Corporation (NYSE:BF-B). Brown-Forman Corporation (NYSE:BF-B) is a company that engages in the production and distribution of alcoholic beverages. The one-month return of Brown-Forman Corporation (NYSE:BF-B) was -11.47%, and its shares lost 41.58% of their value over the last 52 weeks. On September 19, 2025, Brown-Forman Corporation (NYSE:BF-B) stock closed at $27.48 per share, with a market capitalization of $12.888 billion.

Madison Mid Cap Fund stated the following regarding Brown-Forman Corporation (NYSE:BF-B) in its second quarter 2025 investor letter:

"We also sold our small position in Brown-Forman Corporation (NYSE:BF-B). While liquor sales spiked during the Covid years, they have failed to bounce back post Covid, likely for a combination of reasons, including a secular decline in liquor consumption among the younger age cohorts, weight loss drugs, healthier lifestyle trends, and increasingly relaxed cannabis restrictions. While we believe sales may eventually rebound to some extent, these societal cycles can often be elongated and last for years. Additionally, tariffs create a lot of uncertainty as American whiskey is often a targeted export product, further adding to the risk profile."

Brown-Forman Corporation (NYSE:BF-B) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 37 hedge fund portfolios held Brown-Forman Corporation (NYSE:BF-B) at the end of the second quarter, same as 37 in the previous quarter.  While we acknowledge the potential of Brown-Forman Corporation (NYSE:BF-B) 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 addition, please check out our hedge fund investor letters Q2 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.