Here’s Why Madison Sustainable Equity Fund Sold UPS (UPS)

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 United Parcel Service, Inc. (NYSE:UPS). United Parcel Service, Inc. (NYSE:UPS) is a package delivery and logistics company that offers transportation and delivery services. The one-month return of United Parcel Service, Inc. (NYSE:UPS) was 0.81%, and its shares lost 25.01% of their value over the last 52 weeks. On June 11, 2025, United Parcel Service, Inc. (NYSE:UPS) stock closed at $101.16 per share, with a market capitalization of $85.66 billion.

Madison Sustainable Equity Strategy stated the following regarding United Parcel Service, Inc. (NYSE:UPS) in its Q1 2025 investor letter:

We sold our remaining position in United Parcel Service, Inc. (NYSE:UPS). We are concerned that the company’s strategy of proactively reducing lower margin volume from its biggest customer, Amazon, will cause additional disruption to the business on top of an uncertain macroeconomic backdrop for the U.S. economy.

Is United Parcel Service, Inc. (UPS) the Best Dividend Growth Stock with High Yields?

A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.

United Parcel Service, Inc. (NYSE:UPS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held United Parcel Service, Inc. (NYSE:UPS) at the end of the first quarter, which was 59 in the previous quarter. While we acknowledge the potential of United Parcel Service, Inc. (NYSE:UPS) 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 United Parcel Service, Inc. (NYSE:UPS) and shared the list 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.