Here’s Why Brown & Brown (BRO) Surged in Q1

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund (Class I) decreased 4.15% compared to the 3.40% decrease for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Madison Mid Cap Fund highlighted stocks such as Brown & Brown, Inc. (NYSE:BRO). Headquartered in Daytona Beach, Florida, Brown & Brown, Inc. (NYSE:BRO) provides insurance products and services. The one-month return of Brown & Brown, Inc. (NYSE:BRO) was -3.16%, and its shares gained 41.76% of their value over the last 52 weeks. On April 22, 2025, Brown & Brown, Inc. (NYSE:BRO) stock closed at $117.56 per share with a market capitalization of $33.696 billion.

Madison Mid Cap Fund stated the following regarding Brown & Brown, Inc. (NYSE:BRO) in its Q1 2025 investor letter:

“The top five contributors for the quarter were Brown & Brown, Inc. (NYSE:BRO), W.R. Berkley, Arch Capital, Liberty Broadband, and Teledyne Technologies. Given negative market returns during the quarter, it is no surprise to see three insurance companies top our list of contributors. Industry fundamentals remain sound, but investors no doubt also found favor with their defensive demand profiles and limited tariff exposure. Brown & Brown continues to benefit from strong organic growth and margin expansion.”

Jim Cramer on Brown & Brown (BRO): “Insurance Stock That’s Red Hot!”

A close-up of an insurance product while an employee explains its features to a customer.

Brown & Brown, Inc. (NYSE:BRO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Brown & Brown, Inc. (NYSE:BRO) at the end of the fourth quarter compared to 35 in the third quarter. While we acknowledge the potential of Brown & Brown, Inc. (NYSE:BRO) 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 cheapest AI stock.

In another article, we covered Brown & Brown, Inc. (NYSE:BRO) and shared Headwaters Capital Management’s views on the company. 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.