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 BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) operates warehouse clubs that provide groceries, general merchandise, gasoline and other ancillary services, coupon books, and promotions. The one-month return for BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) was -4.66%, and its shares lost 9.05% over the last 52 weeks. On December 10, 2025, BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) stock closed at $89.61 per share, with a market capitalization of $11.806 billion.
BBH Select Series – Mid Cap Fund stated the following regarding BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) in its third quarter 2025 investor letter:
“We initiated two new positions in the third quarter in ITT Inc. (ITT) and BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ). In addition to exiting Globant and Bruker, we exited Bright Horizons Family Solutions Inc. (Bright Horizons).
In an environment of persistently high prices for basic essentials, value is front and center in the minds of consumers. Warehouse clubs like BJ’s have a track record of market share gains, particularly from grocery stores, due to a structural per unit pricing advantage of typically 25%. Such a price gap is possible due to characteristics of the warehouse club model, which involve concentrated supplier buying power, high inventory turns, efficient in-store labor, and membership-funded margins. The model facilitates a powerful flywheel effect: Membership fees and efficient in-store operations fund consistently low prices, which drive higher volumes and create buyer leverage, further enhancing member value and fueling continued membership growth. BJ’s appears to be at an inflection point with membership momentum, an accelerated new store rollout, and a proven management team. The BJ’s membership base today, as measured by tenured renewal rate and higher tier membership penetration, is in a strong position. In addition, the company has refined its new store formula and plans to open 25 to 30 new clubs over the next two years, representing the fastest rate of openings in the company’s history. BJ’s has carefully crafted its new store playbook, and the current approach is working as new stores generate comparable club sales at two to three times the rate of the legacy footprint. Finally, BJ’s CEO Bob Eddy and the management team have demonstrated skill and discipline as capital allocators, consistently balancing reinvestment in member value and store growth with debt reduction and share repurchases. Overall, membership momentum combined with high performing new store openings and proven management should drive a compelling financial picture of strong comparable club sales, impressive free cash flow generation, and cost leverage.”
BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) at the end of the third quarter, which was 44 in the previous quarter. While we acknowledge the risk and potential of BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) 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 BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered BJ’s Wholesale Club Holdings, Inc. (NYSE:BJ) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 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.
