Brighthouse Financial (BHF) to Exit Challenging Situation Following Sale Agreement

Greenlight Capital, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Greenlight Capital’s investment strategy focuses on constructing a bottom-up portfolio comprising undervalued long positions and overvalued short positions, while also including a macro book to hedge risks and capture insights. The Partnership returned 9.0% (net) in 2025 compared to 17.9% for the S&P 500 index. In contrast, it returned 8.5% in Q4, compared to 2.7% for the index. The Partnership has returned $6.1 billion, net of fees and expenses, to its investors since its inception in May 1996.  For more information on the Partnership’s top picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Greenlight Capital highlighted Brighthouse Financial, Inc. (NASDAQ:BHF) as one of its leading contributors in the long portfolio. Brighthouse Financial, Inc. (NASDAQ:BHF) offers annuity and life insurance products in the United States. The one-month return of Brighthouse Financial, Inc. (NASDAQ:BHF) was -0.57%, and its shares gained 4.04% of their value over the last 52 weeks. On January 29, 2026, Brighthouse Financial, Inc. (NASDAQ:BHF) stock closed at $64.20 per share, with a market capitalization of about $3.671 billion.

Greenlight Capital stated the following regarding Brighthouse Financial, Inc. (NASDAQ:BHF) in its fourth quarter 2025 investor letter:

"Brighthouse Financial, Inc. (NASDAQ:BHF): After years of frustration, the company put itself up for sale, which led to a sale process that culminated in a buyer agreeing to purchase the company. While the valuation at less than two-thirds of book value is not exciting, it does provide us with a reasonable exit from a challenged situation. We likely will write more about this after we do, in fact, exit."

Brighthouse Financial, Inc. (NASDAQ:BHF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 39 hedge fund portfolios held Brighthouse Financial, Inc. (NASDAQ:BHF) at the end of the third quarter, compared to 45 in the previous quarter. While we acknowledge the potential of Brighthouse Financial, Inc. (NASDAQ:BHF) 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 Q4 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.