Brasada Capital Management, an investment management company, released its Q2 2025 investor letter. A copy of the letter can be downloaded here. This year’s financial markets have been highly volatile, with the S&P 500 experiencing a 6.20% year-to-date performance despite a dramatic 22% drop following “Liberation Day” on April 2nd. This turbulence impacted nearly all asset classes, including bonds and the U.S. dollar. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.
In its second quarter 2025 investor letter, Brasada Capital Management highlighted stocks such as West Pharmaceutical Services, Inc. (NYSE:WST). West Pharmaceutical Services, Inc. (NYSE:WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products. The one-month return of West Pharmaceutical Services, Inc. (NYSE:WST) was 1.28%, and its shares lost 29.03% of their value over the last 52 weeks. On July 11, 2025, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $227.18 per share with a market capitalization of $16.322 billion.
Brasada Capital Management stated the following regarding West Pharmaceutical Services, Inc. (NYSE:WST) in its second quarter 2025 investor letter:
“The best way to demonstrate this is with examples. We want to highlight two recent purchases where we think great businesses were undeservingly sold off by the market due to short-term fears. The first is West Pharmaceutical Services, Inc. (NYSE:WST), which we purchased through our Friedberg Focused Equity and GCI Select Equity strategies. The second is Uber Technologies (Ticker: UBER), which we purchased through our Brasada Equity and GCI Select Equity strategies.
West designs and manufactures advanced integrated containment and delivery systems for injectable drugs and healthcare products globally. Their product portfolio includes proprietary primary packaging, such as stoppers, seals, syringe and cartridge components, and drug delivery systems like auto-injectors and pens. They also offer contract manufacturing and integrated solutions to leading biologic, generic, pharmaceutical, diagnostic, and medical device companies worldwide. In short, West partners with customers to deliver safe and effective drug products. GLP-1s are a good example.
As far as quality, West’s components are essential for the safe and effective delivery of injectable medicines. While the price of a single West component, such as a stopper or a plunger, may be measured in cents, the value it provides in ensuring the stability of a multi million-dollar drug product is immense. Once West’s components are specified into regulatory approvals for a drug, switching suppliers would be extremely costly and difficult, leading to sticky recurring revenue that can last for decades. West also benefits from scale through its extensive global manufacturing footprint and diversified supply chain. All of this creates significant pricing power and durability…” (Click here to read the full text)
A closeup of multiple drug containment systems in an array of colors.
West Pharmaceutical Services, Inc. (NYSE:WST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held West Pharmaceutical Services, Inc. (NYSE:WST) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the risk and potential of WST 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 WST and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered West Pharmaceutical Services, Inc. (NYSE:WST) and shared Parnassus Mid Cap Growth Fund’s views on the company in the previous quarter. 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.
