Will Brighthouse Financial (BHF) Benefit From the Deal?

Middle Coast Investing, an investment advisor firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for Middle Coast Investing. Its collective portfolio outperformed the S&P 500 and is ahead of benchmarks year to date. In Q3 2025, the US Portfolios returned 9.6% compared to 7.8% for the S&P 500. It’s Core U.S. portfolios returned 10% while the Russell 2000 returned 12%, the S&P 600 returned 8.7% and the Nasdaq generated 11.2% for the same period. Also, its European Portfolios appreciated by 5.5%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Middle Coast Investing highlighted stocks such as Brighthouse Financial, Inc. (NASDAQ:BHF). Brighthouse Financial, Inc. (NASDAQ:BHF) offers annuity and life insurance products in the United States. The one-month return of Brighthouse Financial, Inc. (NASDAQ:BHF) was 4.57%, and its shares gained 13.95% of their value over the last 52 weeks. On October 6, 2025, Brighthouse Financial, Inc. (NASDAQ:BHF) stock closed at $51.04 per share, with a market capitalization of $2.917 billion.

Middle Coast Investing stated the following regarding Brighthouse Financial, Inc. (NASDAQ:BHF) in its third quarter 2025 investor letter:

“You’ll notice in the winners section that we had luck with a couple reported deals that finally came to fruition. Hillenbrand and Brighthouse Financial, Inc. (NASDAQ:BHF) are similar type bets.

There is also extensive reporting that Brighthouse is in the insurance company’s biggest shareholders has negotiations to be sold. One of come out in favor of the deal.  That could be a bad sign about management’s intentions to sell, but the company – which is a spin-off of Metlife and sells life insurance, with a complicated hedging strategy has been a bit of a mess as a public company. Our position is smaller here, as I feel worse about owning this in a no-deal scenario.”

Brighthouse Financial, Inc. (NASDAQ:BHF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Brighthouse Financial, Inc. (NASDAQ:BHF) at the end of the second quarter, up from 39 in the previous quarter.  While we acknowledge the risk and potential of Brighthouse Financial, Inc. (NASDAQ:BHF) 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 Brighthouse Financial, Inc. (NASDAQ:BHF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Brighthouse Financial, Inc. (NASDAQ:BHF) and shared the list of best and cheap stocks to buy. 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.