Here’s Why Fundsmith Equity Fund Sold Brown-Forman Corporation (BF-B)

Fundsmith, an investment management firm based in London, has released its annual 2025 investor letter for its “Fundsmith Equity Fund.” A copy of the letter can be downloaded here. The fund focuses on investing in equities globally. The T Class Accumulation shares where the firm invested returned 0.8% in 2025, compared to 12.8% for the MSCI World Index (‘Index’) in sterling with dividends reinvested. Since its inception, the fund has returned 1.7% p.a. more than the index. The fund attributed its underperformance during 2025 to index concentration, the growth of assets in Index Funds, and weakness in the dollar. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Fundsmith Equity 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 -12.46%, and its shares lost 22.71% of their value over the last 52 weeks. On January 12, 2026, Brown-Forman Corporation (NYSE:BF-B) stock closed at $26.62 per share, with a market capitalization of $12.33 billion.

Fundsmith Equity Fund stated the following regarding Brown-Forman Corporation (NYSE:BF-B) in its fourth quarter 2025 investor letter:

Brown-Forman Corporation (NYSE:BF-B) and PepsiCo’s snack business seem to us to be directly in the crosshairs of the impact of reduced appetites from weight loss drugs. Whether or not our Novo Nordisk investment finally comes good, we believe that weight loss drugs and their impact are here to stay. In addition, the alcoholic drinks business faces headwinds from the impact of Generation Z’s drinking habits (lack of) and the legalisation of cannabis.”

Is Brown-Forman Corporation (BF-B) the Best Alcohol Stock to Buy According to Billionaires?

Brown-Forman Corporation (NYSE:BF-B) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held Brown-Forman Corporation (NYSE:BF-B) at the end of the third quarter, compared to 37 in the previous quarter. While we acknowledge the risk and potential of Brown-Forman Corporation (NYSE:BF-B) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Brown-Forman Corporation (NYSE:BF-B) and that has 10,000% upside potential, check out our report about this cheapest 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.