BBH Select Series - Mid Cap Fund Sold Bruker Corporation (BRKR) Due to Policy Uncertainty

Brown Brothers Harriman, an investment management company, released its Q3 2025 investor letter for the BBH Select Series - Mid Cap Fund. A copy of the same can be downloaded here. In the quarter, the fund decreased by -0.9% on a total return basis compared to the Russell Midcap Index’s 5.3% return. The Fund has decreased by a total return of -1.8%, YTD, compared to 10.4% for the Index. The third quarter experienced a boost in the low-quality rally that started late last year and gained momentum throughout 2025. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, BBH Select Series - Mid Cap Fund highlighted stocks such as Bruker Corporation (NASDAQ:BRKR). Bruker Corporation (NASDAQ:BRKR) focuses on the development and manufacturing of scientific instruments and analytical and diagnostic solutions. The one-month return of Bruker Corporation (NASDAQ:BRKR) was 12.28%, and its shares lost 19.82% of their value over the last 52 weeks. On December 10, 2025, Bruker Corporation (NASDAQ:BRKR) stock closed at $46.92 per share, with a market capitalization of $7.129 billion.

BBH Select Series - Mid Cap Fund stated the following regarding Bruker Corporation (NASDAQ:BRKR) in its third quarter 2025 investor letter:

"The Fund’s largest detractors to performance in the quarter were Shift4 Payments Inc. (Shift4), Globant S.A. (Globant), and Bruker Corporation (NASDAQ:BRKR). We exited both Globant and Bruker during the quarter following sustained underperformance and to opportunistically harvest tax losses. These two companies have been our most impacted by tariffs and life science and academic funding cuts, and any re-entry would be predicated on a stabilization in performance.

Bruker declined -18.4% during the quarter through the date of our exit. Bruker is a leading provider of high-per formance scientific instruments, analytical and diagnostic solutions, and related services. BBH Mid Cap has long admired Bruker’s innovative track record that has allowed the company to consistently grow its revenue alongside operational excellence that has facilitated strong margin expansion and earnings growth. Bruker is diversified across a wide variety of end markets including academic, government, biopharma, industrial, and semiconductor. Bruker is also geographically diversified with about a third of its revenues each in North America, Europe, and Asia. However, this diversification has provided no safe harbor from academic and government life science funding cuts and prolonged tariff uncertainty. These include restrictions on federal research funding to colleges and universi ties; efforts to cut the National Institutes of Health (NIH) and National Science Foundation (NSF) budgets and limit the pace of grant disbursements; tariffs on China, the EU, and Switzerland; and policy to re-shape the biopharma industry via sector-specific pharmaceutical tariffs and most-favored-nation drug pricing. While the impact was ini tially contained to direct funding cuts among academic customers in the US (approximately 10% of revenues), more recently we have seen a sharp slowdown in activity across Europe and China, and in industrial and biopharma end markets. Given continued policy uncertainty, both at the country and healthcare sector level, we have chosen to step aside at this time while we await a stabilization of the policy landscape and to redeploy proceeds to readily available opportunities."

Bruker Corporation (NASDAQ:BRKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held Bruker Corporation (NASDAQ:BRKR) at the end of the third quarter, which was 42 in the previous quarter. While we acknowledge the potential of Bruker Corporation (NASDAQ:BRKR) 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 Bruker Corporation (NASDAQ:BRKR) and shared The London Company Large Cap Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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