Artisan Partners, an investment management company, released its “Artisan Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The equity market rally persisted in the third quarter as investors ignored tariffs, buoyed by strong corporate earnings, rising AI investment, and prospects of economic support from US fiscal policy and lower interest rates. Against this backdrop, the fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 0.83%, 0.91%, and 0.90%, respectively, in the third quarter compared to a 5.33% return for the Russell 1000 Value Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.
In its third-quarter 2025 investor letter, Artisan Value Fund highlighted stocks such as Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. The one-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was -0.75%, and its shares gained 11.93% of their value over the last 52 weeks. On December 26, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) stock closed at $580.74 per share, with a market capitalization of $218.19 billion.
Artisan Value Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its third quarter 2025 investor letter:
“On the positive side, the three new purchases we made in Q2 during the post-Liberation Day market meltdown—Lam Research, ASML and Thermo Fisher Scientific Inc. (NYSE:TMO)—were each among our top contributors to returns in Q3. Lam and ASML are semiconductor equipment companies, and Thermo Fisher is a life science tools and clinical research company. As value investors, conditions of fear and uncertainty are fertile ground for creating attractive long-term buying opportunities. Few areas of the market were under greater pressure to start the year than semiconductors & semiconductor equipment stocks.
Thermo Fisher serves a range of end markets, including pharmaceutical, clinical, academia, industrial and applied sciences. Recent results were a little better than expected, and the company’s updated outlook on 2026-2027 provided reassurance that its 10% earnings growth target is feasible despite softer market conditions, if management’s margin expansion objectives are achieved. The company has a leading industry position in a market that has grown about 6%peryear, though we believe core organic growth can be 1%–2%overthatduetoThermoFisher’s dominant positions in a variety of fast-growing end markets, like rare disease and genomics. The company has a solid balance sheet, high free cash flow conversion and a history of good capital allocation comprised of R&D, M&A and return of capital (buybacks and dividends). End markets were already cyclically depressed, but tariffs and government spending cuts may delay a recovery. These concerns allowed us an attractive entry point of 17X 2026 expected earnings. The vast majority of Thermo Fisher’s revenue is recurring, primarily from consumables, which gives us increased confidence in our investment case while the company manages tariff impacts and as we wait for end markets to mend.”
Thermo Fisher Scientific Inc. (NYSE:TMO) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 121 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the third quarter, up from 117 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 Parnassus Core Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
