Madison Large Cap Fund Added Ferguson Enterprises (FERG) to its Portfolio On a Dip

Madison Investments, an investment advisor, released its “Madison Large 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 0.93% compared to the 4.27% decline for the S&P 500 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 Large Cap Fund highlighted stocks such as Ferguson Enterprises Inc. (NYSE:FERG). Ferguson Enterprises Inc. (NYSE:FERG) is a plumbing and heating products distributor. The one-month return of Ferguson Enterprises Inc. (NYSE:FERG) was 5.61%, and its shares lost 20.54% of their value over the last 52 weeks. On April 24, 2025, Ferguson Enterprises Inc. (NYSE:FERG) stock closed at $169.52 per share with a market capitalization of $34.02 billion.

Madison Large Cap Fund stated the following regarding Ferguson Enterprises Inc. (NYSE:FERG) in its Q1 2025 investor letter:

“Finally, we added to Ferguson Enterprises Inc. (NYSE:FERG) as its shares were weak because of concerns over deflationary pricing for some products and general demand trends in residential and non-residential real estate markets. In our view, valuation looked compelling given the solid long-term outlook for end market demand.”

Jim Cramer Backs Ferguson (FERG): “I Like Ferguson a Lot, It’s in Good Shape”

A busy warehouse stocked with a variety of industrial plumbing parts.

Ferguson Enterprises Inc. (NYSE:FERG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held Ferguson Enterprises Inc. (NYSE:FERG) at the end of the fourth quarter which was 62 in the previous quarter. While we acknowledge the potential of Ferguson Enterprises Inc. (NYSE:FERG) 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 Ferguson Enterprises Inc. (NYSE:FERG) and shared the list of best stocks to buy according to Seth Klarman. 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.