Here's Why Primo Brands Corporation (PRMB) Traded Down in Q3

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, Madison Small Cap Fund highlighted stocks such as Primo Brands Corporation (NYSE:PRMB). Primo Brands Corporation (NYSE:PRMB) is a branded beverage company. The one-month return of Primo Brands Corporation (NYSE:PRMB) was -32.92%, and its shares lost 48.20% of their value over the last 52 weeks. On November 20, 2025, Primo Brands Corporation (NYSE:PRMB) stock closed at $14.98 per share, with a market capitalization of $5.595 billion.

Madison Small Cap Fund stated the following regarding Primo Brands Corporation (NYSE:PRMB) in its third quarter 2025 investor letter:

"Primo Brands Corporation (NYSE:PRMB) & Simply Good Foods (SMPL) were also down in the quarter. Primo faced some temporary integration challenges mostly in Texas. Recall that Primo was effectively acquired by privately-held Blue Triton, but remained public in a reverse merger. This has been a wonderful stock for us since our initial investment in 2020, but 2025 has been difficult as the company was initially hit with a tornado in Texas, damaging a facility and disrupting operations for a month. This only exacerbated an aggressive restructuring and integration plan that led unanticipated disruptions in water delivery services. We don’t believe the business is broken and the $200 million in cost savings will eventually be realized."

Primo Brands Corporation (NYSE:PRMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge fund portfolios held Primo Brands Corporation (NYSE:PRMB) at the end of the second quarter, up from 66 in the previous quarter.  In the third quarter of 2025, Primo Brands Corporation's (NYSE:PRMB) comparable net sales were $1.766 billion, which declined approximately 1.6% year-over-year. While we acknowledge the potential of Primo Brands Corporation (NYSE:PRMB) 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 Primo Brands Corporation (NYSE:PRMB) and shared the list of consumer defensive stocks with more than 50% upside. 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.