Should You be Optimistic on Bio-Rad Laboratories's (BIO) Outlook?
Longleaf Partners, managed by Southeastern Asset Management, released its 'Partners Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -5.14% in the first quarter, compared to the S&P 500's -4.27% return and Russell 1000 Value's 2.14% return. The firm's stock price performance was volatile, but its confidence in future returns grew as the quarter progressed. The firm invested in quality companies that it thinks are strong and resilient to difficult circumstances. The portfolio has significantly outperformed the index, demonstrating this resiliency since the market peak on February 19th. The rise of its underlying value per share outpaced the performance of the stock price during the quarter. For more information on the fund's best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as Bio-Rad Laboratories, Inc. (NYSE:BIO). Bio-Rad Laboratories, Inc. (NYSE:BIO) is a life science company that manufactures and distributes life science research and clinical diagnostic products. The one-month return of Bio-Rad Laboratories, Inc. (NYSE:BIO) was -6.40%, and its shares lost 15.24% of their value over the last 52 weeks. On April 17, 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) stock closed at $238.18 per share with a market capitalization of $6.691 billion.
Longleaf Partners Fund stated the following regarding Bio-Rad Laboratories, Inc. (NYSE:BIO) in its Q1 2025 investor letter:
"Bio-Rad Laboratories, Inc. (NYSE:BIO) – Life sciences company Bio-Rad detracted for the quarter. The company remains a stable business with growth potential. The quarter was a story of two halves. Early on, industry trends showed improvement after a period of normalization post-Covid, prompting us to trim on the back of price appreciation. However, later in the quarter, news of government funding cuts and a disappointing quarter of results weighed on the stock price. Despite this, we remain optimistic about Bio-Rad's outlook. Academic and government spending in the US accounts for only a low single-digit percentage of this company's revenue, even though public perception suggests otherwise. Meanwhile, the company has a net cash balance sheet, a large hidden asset in its Sartorius stake and a proven history of smart capital allocation."
A scientist performing a blood test on a patient using life sciences tools & services.
Bio-Rad Laboratories, Inc. (NYSE:BIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Bio-Rad Laboratories, Inc. (NYSE:BIO) at the end of the fourth quarter which was 38 in the previous quarter. While we acknowledge the potential of Bio-Rad Laboratories, Inc. (NYSE:BIO) 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 addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
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