Is Bio-Rad Laboratories (BIO) Entering a Period of More Sustained Recovery?

Prosper Stars & Stripes, a long/short equity fund, recently released its second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund underperformed and generated a net return of +9.6% compared to a total return of +8.5% for the long-only small-cap Russell 2000 Index (the “Russell”), and a total return of +5.0% for the long/short equity hedge fund peer group represented by the HFRX Equity Hedge Index (the “HFRX”). For the six months ended 2025, Prosper Stars & Stripes returned a net return of (0.8%) compared to (1.8%) for the Russell and +5.9% for the HFRI. The portfolio demonstrated strong outperformance relative to its net exposure during the quarter. In the second quarter of 2025, US equities reversed the declines seen in the first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Prosper Stars & Stripes 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 7.62%, and its shares lost 11.69% of their value over the last 52 weeks. On August 29, 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) stock closed at $297.88 per share, with a market capitalization of $7.858 billion.

Prosper Stars & Stripes stated the following regarding Bio-Rad Laboratories, Inc. (NYSE:BIO) in its second quarter 2025 investor letter:

“One area where we see particular promise is bioprocessing, which we believe is entering a period of more sustained recovery. Our position in Bio-Rad Laboratories, Inc. (NYSE:BIO) reflects this conviction. BIO’s valuation is underpinned by its approximately 38% ownership stake in Sartorius, a global leader in bioprocessing, currently worth about $5.5 billion. Adjusting for this stake, the core business is currently trading at roughly 6x FY2026 EBITDA, compared to peers that currently trade at double or even triple that level. On a more normalized valuation multiple, the stock would imply a potential upside of more than 40%. Encouragingly, recent earnings results demonstrated a stronger-than-anticipated commitment to profit improvement, and the company’s planned analyst day early next year could serve as a meaningful catalyst as the market reassesses its profitability trajectory.”

Is Palvella Therapeutics Inc. (PVLA) the Best Performing NASDAQ Stock So Far in 2025?

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 second quarter, which was 36 in the previous quarter. While we acknowledge the risk and potential of Bio-Rad Laboratories, Inc. (NYSE:BIO) 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 Bio-Rad Laboratories, Inc. (NYSE:BIO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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