Madison Large Cap Fund Chose to Sell Starbucks (SBUX). Here’s Why

1 hour ago 5

Soumya Eswaran

Tue, June 16, 2026 astatine 8:29 AM CDT 2 min read

Madison Investments, an concern advisor, released its first-quarter 2026 capitalist missive for the "Madison Large Cap Fund". A transcript of the missive is disposable to download here. The Madison Large Cap Fund (Class I) declined 2.7% successful the quarter, outperforming the S&P 500's -4.33% return. The money focuses connected semipermanent superior appreciation. The 4th saw a displacement successful the equity marketplace beyond the mega-cap exertion stocks into carnal system stocks, influenced by fears of AI disruption. Additionally, rising commodity prices owed to the Middle East struggle reignited ostentation concerns, benefiting sectors specified arsenic Energy, Materials, Utilities, Staples, and Real Estate, which the Fund does not put in, impacting its comparative performance. Please reappraisal the Fund's apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, Madison Large Cap Fund highlighted Starbucks Corporation (NASDAQ:SBUX). Based successful Seattle, Washington, Starbucks Corporation (NASDAQ:SBUX) is simply a starring java institution and coffeehouse chain. On June 15, 2026, Starbucks Corporation (NASDAQ:SBUX) closed astatine $101.59 per share. One-month instrumentality of Starbucks Corporation (NASDAQ:SBUX) was -4.50%, and its shares gained 10.92% implicit the past 52 weeks. Starbucks Corporation (NASDAQ:SBUX) has a marketplace capitalization of $115.78 billion.

Madison Large Cap Fund stated the pursuing regarding Starbucks Corporation (NASDAQ:SBUX) successful its Q1 2026 capitalist letter:

"The concern we sold was Starbucks Corporation (NASDAQ:SBUX) , a specialty java edifice chain. We are encouraged by CEO Brian Niccol's turnaround program and judge margins volition materially summation implicit the coming years. However, successful our view, the valuation already incorporates steadfast borderline enlargement and gross growth. Thus, determination is small country for mistake if it takes longer for margins to amended oregon income maturation has a hiccup, truthful we elected to merchantability our shares."

CEO Brian Niccol Will Do What's Right, Says Jim Cramer

Starbucks Corporation (NASDAQ:SBUX) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge money portfolios held Starbucks Corporation (NASDAQ:SBUX) astatine the extremity of the archetypal quarter, up from 59 successful the erstwhile quarter. While we admit the imaginable of Starbucks Corporation (NASDAQ:SBUX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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