Should You Still Invest in Brown-Forman Corporation (BF)?

Fundsmith LLP, an investment management firm, published its “Fundsmith Equity Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The T Class Accumulation shares, the most commonly held share class, rose by +22.1% in 2021 and compares with a rise of +22.9% for the MSCI World Index in sterling with dividends reinvested. The Fund marginally underperformed this comparator in 2021 but is still the best performer since its inception in November 2010 in the Investment Association Global sector with a return 357 percentage points above the sector average which has delivered just +213.9% over the same timeframe. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Fundsmith Equity Fund, in its Q4 2021 investor letter, mentioned Brown-Forman Corporation (NYSE: BF-A) and discussed its stance on the firm. Brown-Forman Corporation is a Louisville, Kentucky-based wine company with a $31.2 billion market capitalization. BF-A delivered a -8.73% return since the beginning of the year, while its 12-month returns are down by -10.49%. The stock closed at $61.87 per share on January 13, 2022.

Here is what Fundsmith Equity Fund has to say about Brown-Forman Corporation in its Q4 2021 investor letter:

“Brown-Forman struggled under the twin impacts of the on trade shutdowns caused by the pandemic and EU tariffs on American sprits which gave us the opportunity to increase our stake. We expect both these headwinds to dissipate.”

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Our calculations show that Brown-Forman Corporation (NYSE: BF-A) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. BF-A was in 31 hedge fund portfolios at the end of the third quarter of 2021, compared to 31 funds in the previous quarter. Brown-Forman Corporation (NYSE: BF-A) delivered a -5.25% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.