Policy Uncertainty Pulled Down Avantor (AVTR)

Broyhill Asset Management, an investment advisor, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 2.8% net of all fees and expenses in the first quarter, surpassing a -1.2% return for the MSCI All Country World Index. Volatility was the dominant theme in the first quarter, particularly among a few US technology companies that have come to influence the performance of passive indices. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks such as Avantor, Inc. (NYSE:AVTR). Avantor, Inc. (NYSE:AVTR) provides mission-critical products and services to biopharma, healthcare, education, and government, advanced technologies, and applied materials industries. The one-month return of Avantor, Inc. (NYSE:AVTR) was 2.22%, and its shares lost 46.78% of their value over the last 52 weeks. On May 30, 2025, Avantor, Inc. (NYSE:AVTR) stock closed at $12.91 per share with a market capitalization of $8.8 billion.

Broyhill Asset Management stated the following regarding Avantor, Inc. (NYSE:AVTR) in its Q1 2025 investor letter:

“Shares of Avantor, Inc. (NYSE:AVTR) declined 23% in the first quarter, as policy uncertainty around budget cuts for academic institutions and pharmaceutical companies weighed on the life sciences sector. With shares trading at valuations not previously seen in its history as a public company, we believe this is a dramatic overreaction as the market is essentially discounting a halting or meaningful slowdown in scientific progress at these levels. It is rare for companies benefiting from such strong secular growth trends to be valued at trough multiples on trough earnings, but that’s exactly how we view AVTR today, and exactly why we’ve capitalized on recent weakness to continue building our position.”

Avantor, Inc. (NYSE:AVTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Avantor, Inc. (NYSE:AVTR) at the end of the first quarter, which was 39 in the previous quarter. While we acknowledge the potential of Avantor, Inc. (NYSE:AVTR) 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 Avantor, Inc. (NYSE:AVTR) and shared the list of most undervalued stocks with smart money ratings. 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.