Madison Investments, an investment advisor, released its “Madison Sustainable Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the S&P 500 had a total return of -4.3%, with a significant -5.6% drop in March. This decline was mainly due to the impact of tariffs, which hurt business and consumer confidence. Expectations for strong economic growth and deregulation have decreased as the new administration’s trade priorities have become clearer. The strategy returned -3.32% (Gross) in the quarter compared to -4.27% for the index. Both sector allocation and security selection were positive during the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first-quarter 2025 investor letter, Madison Sustainable Equity Strategy highlighted stocks such as Costco Wholesale Corporation (NASDAQ:COST). Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses that offer a range of merchandise categories. The one-month return of Costco Wholesale Corporation (NASDAQ:COST) was -1.35%, and its shares gained 17.83% of their value over the last 52 weeks. On June 11, 2025, Costco Wholesale Corporation (NASDAQ:COST) stock closed at $996.78 per share, with a market capitalization of $442.049 billion.
Madison Sustainable Equity Strategy stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q1 2025 investor letter:
“Costco Wholesale Corporation (NASDAQ:COST) continues to deliver market share gains due to its focus on being the low-price leader and its differentiated business model with high turnover and limited SKUs. The company reported a strong second fiscal quarter with U.S. comparable sales up 8.6% excluding gas deflation. E-commerce sales were up 22.2% after adjusting for foreign exchange. Operating income increased by 12.3%. Paid household members increased by 6.8% and renewal rates remain strong in the U.S. and Canada at 93%. Costco added one new warehouse in the first quarter and plans for 27 more openings throughout the rest of the fiscal year.
Earlier this year, Costco strongly defended its sustainability efforts and initiatives. The company aligns its efforts with seven of the UN Sustainable Development Goals that relate most closely to its business. Its three pillars consist of People & Communities, Operations, and Merchandising. Within People & Communities, the company focuses on providing an environment that celebrates the differences within its workforce and creates career opportunities for all employees. The company further states that all decisions regarding recruiting, hiring, promotion, assignment, training, termination, and other terms and conditions of employment will be made without unlawful discrimination based on race, color, national origin, religion, sex, sexual orientation, gender identity, or expression. Costco also reaffirmed its commitment to working with qualified diverse suppliers.”
A customer in a warehouse aisles, browsing the wide range of branded and private-label products.
Costco Wholesale Corporation (NASDAQ:COST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held Costco Wholesale Corporation (NASDAQ:COST) at the end of the first quarter, which was 96 in the previous quarter. While we acknowledge the potential of Costco Wholesale Corporation (NASDAQ:COST) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Costco Wholesale Corporation (NASDAQ:COST) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q1 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.
