Here’s Why Bio-Rad Laboratories (BIO) Traded Lower in Q1

Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The growth stock trade that had driven U.S. stocks higher since late 2022 came undone in the first quarter of 2025. In the quarter, the fund’s Investor Class fund ARTQX returned -1.03%, Advisor Class fund APDQX posted a return of – 0.97%, and Institutional Class fund APHQX returned -0.97%, compared to a -2.11% return for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Artisan Mid Cap Value Fund highlighted stocks such as Bio-Rad Laboratories, Inc. (NYSE:BIO). Bio-Rad Laboratories, Inc. (NYSE:BIO) is a medical device company, engages in the manufacturing and distribution of life science research and clinical diagnostic products. The one-month return of Bio-Rad Laboratories, Inc. (NYSE:BIO) was -5.15%, and its shares lost 23.70% of their value over the last 52 weeks. On June 3, 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) stock closed at $220.57 per share, with a market capitalization of $6.072 billion.

Artisan Mid Cap Value Fund stated the following regarding Bio-Rad Laboratories, Inc. (NYSE:BIO) in its Q1 2025 investor letter:

“Our biggest detractors included Bio-Rad Laboratories, Inc. (NYSE:BIO), nVent Electric and Polaris. Bio-Rad Laboratories (BIO) manufactures and distributes life science research and clinical diagnostics products. Quarterly results were disappointing due to ongoing sluggishness in biopharma R&D, a change to reimbursement policies in China contributing to weaker revenues in its clinical diagnostics business and a lack of clarity on future margin improvement. After a few years of business headwinds related to receding COVID-related revenues, persistent supply chain issues and slowing life science tool end markets, investors are eager to see improvement. A key component of our investment case is BIO’s large investment (~$5.5 billion and 34% of shares outstanding) in German peer Sartorius, a biopharmaceutical research solutions provider. BIO also has net cash and securities outside of its Sartorius stake. For context, BIO is an ~$7.2 billion market cap company. BIO is underfollowed on Wall Street, and screens on enterprise value do not capture BIO’s stake in Sartorius. As a result, we believe quantitative and casual market watchers don’t appreciate BIO’s cheap valuation.”

Close up of a chemist in a lab coat holding a beaker, surrounded by sophisticated life science equipment.

Bio-Rad Laboratories, Inc. (NYSE:BIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Bio-Rad Laboratories, Inc. (NYSE:BIO) at the end of the first quarter, which was 42 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 undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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