Here’s What Pulled Down Bio-Techne Corporation (TECH)

Baron Funds, an investment management company, released its “Baron Asset Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. After a strong start to 2025, U.S. equities dropped sharply in late February, with most broad market indexes finishing the quarter down mid- to high single digits. Initially, investors were optimistic about the economy during President Trump’s second term. However, market sentiment shifted due to Trump’s plans for sweeping tariffs on key U.S. trade partners. Additionally, investors tempered their enthusiasm for AI beneficiaries, leading to a sell-off in the Magnificent Seven and other companies within the AI ecosystem. Against this backdrop, Baron Asset Fund had a robust first quarter, returning -2.89% (Institutional Shares) compared to the Russell Midcap Growth Index’s -7.12% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron Asset Fund highlighted stocks such as Bio-Techne Corporation (NASDAQ:TECH). Bio-Techne Corporation (NASDAQ:TECH), with a market capitalization of $8.078 billion, develops, manufactures, and sells life science reagents, instruments, and services for the research and clinical diagnostic markets. The one-month return of Bio-Techne Corporation (NASDAQ:TECH) was 4.84%, and its shares lost 32.08% of their value over the last 52 weeks. On June 12, 2025, Bio-Techne Corporation (NASDAQ:TECH) stock closed at $51.53 per share.

Baron Asset Fund stated the following regarding Bio-Techne Corporation (NASDAQ:TECH) in its Q1 2025 investor letter:

“Weakness in Health Care was driven by sharp declines from pharmaceutical packaging manufacturer West Pharmaceutical Services, Inc. and life sciences tools developer Bio-Techne Corporation (NASDAQ:TECH). Bio-Techne’s stock fell after the National Institutes of Health announced a new policy on funding for indirect costs for scientific research at academic laboratories that could have a negative impact on some of its customers.”

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A research scientist in a lab wearing safety glasses, surrounded by laboratory equipment testing life science samples.

Bio-Techne Corporation (NASDAQ:TECH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Bio-Techne Corporation (NASDAQ:TECH) at the end of the first quarter, which was 24 in the previous quarter. In the second quarter of fiscal 2025, Bio-Techne Corporation (NASDAQ:TECH) generated $316.2 million in revenues, up 6% year-over-year on an organic basis and 4% on reported basis. While we acknowledge the potential of Bio-Techne Corporation (NASDAQ:TECH) 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 undervalued AI stock set for massive gains.

In another article, we covered Bio-Techne Corporation (NASDAQ:TECH) and shared Polen U.S. Small Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of TECH 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 the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.