Bio-Rad (BIO) Surged as the Earnings Exceeded Expectations
Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third-quarter 2025 investor letter. The letter can be downloaded here. The fund returned -0.33% in the third quarter, compared to the S&P 500’s 8.12 % return and the Russell 1000 Value’s 5.33% return. The firm is not happy with the flat performance of the portfolio, emphasizing its investments in real assets and brands that generate growing free cash flow (FCF) per share. Despite facing market pressures from speculation and government uncertainty, it anticipates that the Fund's ~10x FCF multiple could rise to the mid-teens as management implements strategies to improve margins and increase share repurchases. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its third-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 research and clinical diagnostic products company. The one-month return of Bio-Rad Laboratories, Inc. (NYSE:BIO) was 24.80%, and its shares gained 5.76% of their value over the last 52 weeks. On October 23, 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) stock closed at $338.67 per share, with a market capitalization of $8.893 billion.
Longleaf Partners Fund stated the following regarding Bio-Rad Laboratories, Inc. (NYSE:BIO) in its third quarter 2025 investor letter:
"Bio-Rad Laboratories, Inc. (NYSE:BIO) - Bio-Rad Laboratories, a healthcare products manufacturer, was a positive contributor after the company reported steadier earnings than the market expected in a difficult environment. This sets the company up for the ability to grow earnings in 2026 and beyond, more in-line with previous industry trends. The company’s important investment in Sartorius has also shown encouraging year-over-year trends following a difficult couple of years, and we are getting closer to a period when both companies will have increased strategic flexibility. In the meantime, Bio-Rad continues to be a material share repurchaser with its nearly net cash balance sheet."
Bio-Rad Laboratories, Inc. (NYSE:BIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Bio-Rad Laboratories, Inc. (NYSE:BIO) at the end of the second quarter, up from 36 in the previous quarter. While we acknowledge the potential of Bio-Rad Laboratories, Inc. (NYSE:BIO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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