Bristol Gate Capital Partners, an investment management company, published its Q4 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. Bristol Gate prioritizes companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns. These resilient businesses align management interests with shareholders through sustainable dividends. Since late 2022, the market has shifted towards AI leaders, resulting in the fund’s underperformance due to narrow breadth. While the firm invests in data science and AI, the focus remains on high dividend growth companies. Recently, this narrow focus was shifting, supported by the outperformance of the S&P US Dividend Growers, S&P 500 Dividend Aristocrats, and S&P 500 Equal Weight. This market breadth expansion, along with the firm’s Data Science team’s advancements in the Distant Future Model, offers a strong opportunity for investors to buy the strategy and mitigate risks in the current concentrated market. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Bristol Gate Capital Partners US Equity Strategy highlighted Thermo Fisher Scientific Inc. (NYSE:TMO) as one of its leading contributors. Thermo Fisher Scientific Inc. (NYSE:TMO) is a life science and clinical research company focusing on providing life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services. On March 27, 2026, Thermo Fisher Scientific Inc. (NYSE:TMO) closed at $473.36 per share. One-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was -6.93%, and its shares lost 4.87% over the past 52 weeks. Thermo Fisher Scientific Inc. (NYSE:TMO) has a market capitalization of $175.846 billion.
Bristol Gate Capital Partners US Equity Strategy stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its fourth quarter 2025 investor letter:
“Thermo Fisher Scientific Inc.’s (NYSE:TMO) foundation for the Q4 rally, hitting a new 52-week high in late December, started with a strong Q3 earnings release near the end of October that were ahead of consensus expectations. TMO reported pharma clients are feeling more confident navigating the dynamic US policy environment and are planning U.S. capacity expansions with strong pipelines that TMO will benefit from via equipment sales and their CDMO network in coming years. The company expects growth to build in 2026 as headwinds abate, exiting the year at a run rate inline with its long term organic revenue growth target of 3-6%.”
Thermo Fisher Scientific Inc. (NYSE:TMO) ranks 34 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 113 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the fourth quarter, compared to 121 in the previous quarter. While we acknowledge the risk and potential of 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 the list of stocks Jim Cramer discussed. Thermo Fisher Scientific Inc. (NYSE:TMO) contributed to the performance of the Emerald Growth Equity Strategy during Q4 2025. In addition, please check out our hedge fund investor letters Q4 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.
