What Makes Bio-Rad Laboratories (BIO) an Investment Bet?

Upslope Capital Management, an investment management company, released its third-quarter investor letter. A copy of the letter can be downloaded here. The third quarter was a strong one for the fund despite unusual volatility in the macro environment. The fund returned +8.8% (net) in Q3 compared to +5.5% and +3.8% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as Bio-Rad Laboratories, Inc. (NYSE:BIO). Bio-Rad Laboratories, Inc. (NYSE:BIO) is a life science research and clinical diagnostic products company. The one-month return of Bio-Rad Laboratories, Inc. (NYSE:BIO) was 25.42%, and its shares gained 3.37% of their value over the last 52 weeks. On October 22, 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) stock closed at $331.27 per share, with a market capitalization of $8.789 billion.

Upslope Capital Management stated the following regarding Bio-Rad Laboratories, Inc. (NYSE:BIO) in its third quarter 2025 investor letter:

“Bio-Rad Laboratories, Inc. (NYSE:BIO) – global producer of clinical diagnostic and life sciences products. The company is the market leader in a majority of its products and largely sells to hospital and other labs, as well as academic, government, and biopharma customers. ~70% of sales are recurring/consumable in nature. Importantly (and somewhat strangely…and impressively), the company owns more than 35% of Germany-based and -listed Sartorius (SRT-DE). As a global leader in bioprocessing, Sartorius provides many of the vital tools, consumables and equipment used by drug-makers to develop and manufacture biologic medicines. Tax-affected, BIO’s SRT stake represents almost 50% of BIO’s enterprise value today and implies a well-below market and peer valuation for BIO’s core operating business. Like most healthcare stocks, both BIO and SRT have seen sharp valuation de-ratings in recent years, as they’ve worked through their own COVID era hangovers (fundamentally and especially valuation-wise). BIO’s underlying valuation (9x 2026 EBITDA accounting for the SRT stake) seems particularly attractive today – especially considering the prospect of troughing fundamentals.”

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Bio-Rad Laboratories, Inc. (NYSE:BIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Bio-Rad Laboratories, Inc. (NYSE:BIO) at the end of the second quarter, up from 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 Q3 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.