The BBH Select Series – Mid Cap Fund has divested its entire position in Bright Horizons Family Solutions (BFAM), following a 42% increase in the stock's value over the past 12 months. The move signals a strategic rebalancing amid rising valuation concerns.
- BBH Select Series – Mid Cap Fund fully exited Bright Horizons Family Solutions (BFAM) in late 2025
- BFAM shares rose 42% over the prior 12 months, from ~$24.00 to ~$34.10
- Fund's initial investment was made in Q2 2024 at a lower valuation
- Total market cap of BFAM surpassed $1.8 billion by December 2025
- Portfolio rebalancing cited as primary reason for divestment
- No residual position remains following the sale
The BBH Select Series – Mid Cap Fund has fully exited its holdings in Bright Horizons Family Solutions (BFAM), according to regulatory filings. The decision follows a significant 42% rise in BFAM's share price over the trailing 12 months, which pushed the company's market capitalization above $1.8 billion as of December 2025. The fund had initially acquired the stake during the second quarter of 2024, when BFAM shares traded near $24.00 per share. By the time of the sale, the stock had climbed to approximately $34.10, reflecting strong performance in the early childhood education and workforce solutions sector. The divestment underscores the fund's strategy of taking profits on high-performing mid-cap names that have reached valuation thresholds consistent with its risk-return framework. While the fund did not disclose the exact timing or volume of the sale, the filing indicates a complete exit, suggesting no residual exposure. This marks the second major exit from the fund’s portfolio in 2025, following a similar disposition in a healthcare technology firm earlier in the year. Market analysts note that the exit may signal a short-term caution toward the mid-cap growth segment, particularly in consumer-facing services. BFAM continues to report strong revenue growth, with third-quarter 2025 results showing a 12% year-over-year increase in operating income. However, rising interest rates and increased competition in the family care sector have prompted some institutional investors to reassess exposure to the stock. The fund’s actions are likely to draw attention from other active managers monitoring mid-cap rotations.