Loomis Sayles, an investment management company, released its “Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 18.58% compared to 17.84% for the Russell 1000 Growth Index. The fund focused on a highly selective, long-term private equity approach to investing. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Loomis Sayles Growth Fund highlighted stocks such as Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. The one-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was 8.60%, and its shares lost 20.33% of their value over the last 52 weeks. On September 02, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) stock closed at $487.53 per share, with a market capitalization of $184.097 billion.
Loomis Sayles Growth Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its second quarter 2025 investor letter:
“Thermo Fisher Scientific Inc. (NYSE:TMO) is a comprehensive provider of scientific research tools including analytical instruments, laboratory equipment, consumables (such as reagents, chemicals, and lab supplies), software solutions, and services. The company serves various end markets that include pharma and biotech (approximately 57% of revenues), diagnostics and healthcare (15% of revenues), academic and government (15%), and industrial and applied (13%), worldwide. The company generates approximately 52% of its revenue in the United States, with Europe, Asia-Pacific, China and the rest of the world contributing 24%, 10%, 8% and 5%, respectively. TMO was formed through the 2006 merger of Thermo Electron Corp, a provider of analytical instruments and scientific equipment, and Fisher Scientific, a leading supplier of laboratory supplies and chemicals. The company is known to almost all labs through the massive Fisher supply catalog, which offers virtually everything needed for the laboratory and in turn provides entrée for the company to sell higher value equipment and services. About 83% of the company’s revenue can be considered recurring in nature, with 43% coming from consumables and 40% from services. The remaining 17% comes from non-recurring instrument sales.
A fund holding since the third quarter of 2023, TMO reported quarterly financial results that were solid and better than consensus expectations, despite a challenging operating environment that included weakness in government and academic end markets and a headwind from the runoff of pandemic-related revenues. While revenues and adjusted operating margins were roughly flat year over year, the company continued to gain market share and further embed itself into customer operations. The company also announced an agreement to acquire the purification and filtration business of Solventum, for approximately $4.1 billion in cash. The products, used in the production of biologics as well as in medical technologies and industrial applications, are complimentary to and expand the company’s bioproduction business. Acquisitions have been a routine part of TMO’s corporate strategy, and we believe the company has a demonstrated track record of rigorous selection criteria to ensure the assets add value to customers while exercising financial discipline to not overpay, demonstrated by sustained high cash flow returns on invested capital… (Click here to read the full text)
Thermo Fisher Scientific Inc. (NYSE:TMO) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 117 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the second quarter, which was 101 in the previous quarter. Thermo Fisher Scientific Inc.’s (NYSE:TMO) revenue in the second quarter grew 3% to $10.85 billion. While we acknowledge the risk and potential Thermo Fisher Scientific Inc. (NYSE:TMO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Thermo Fisher Scientific Inc. (NYSE:TMO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Thermo Fisher Scientific Inc. (NYSE:TMO) and shared Artisan Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
