Investment management firm Diamond Hill Capital has revealed its decision to purchase shares of Revvity, Inc. (NYSE:RVTY) in the third quarter of 2025, according to its recently published investor letter for the Mid Cap Strategy. The letter highlights the firm’s strategic moves during a period when US stock markets experienced notable gains, with the Russell 3000 Index rising more than 8% and small-cap stocks outperforming with a surge of over 12%.
Despite this overall market rally, Diamond Hill’s Mid Cap Strategy reported a return of 4.49% net, falling short of the Russell Midcap Index‘s 5.33% return for the same quarter. This underperformance prompted the firm to seek new opportunities, leading to the inclusion of Revvity among its investment picks.
In its investment letter, Diamond Hill noted that Revvity, a company specializing in health sciences solutions and technologies, presented a compelling opportunity. As of December 30, 2025, Revvity’s stock closed at $97.43 per share, with a market capitalization of $11.309 billion. The firm reported a one-month return for Revvity of -5.16% and a 52-week decline of 12.70%.
Strategic Positioning in Health Sciences
Diamond Hill Capital acknowledged the challenges within the biopharmaceuticals sector, which had created a favorable environment for acquiring Revvity shares at a discount. The company has upgraded its product lineup to include higher-margin offerings, which positions it for future growth. The investment firm stated, “Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks.”
In addition to Revvity, the Mid Cap Strategy initiated positions in several other companies during the third quarter, including Toro Company, Equitable Holdings, and Cooper Companies.
As of the end of the third quarter, Revvity was held in 22 hedge fund portfolios, a decrease from 27 in the previous quarter. The company reported revenue of $699 million for Q3 2025, reflecting a modest organic growth of 1%.
Looking Ahead
While Diamond Hill recognizes the potential risks associated with its investment in Revvity, it remains optimistic about the long-term prospects of the company. The firm indicated that it sees greater promise in certain AI stocks for achieving substantial returns in a shorter timeframe. For investors seeking high-potential AI opportunities, the firm points to alternative stocks that may offer more significant upside potential.
This strategic investment in Revvity reflects Diamond Hill Capital’s broader approach to identifying undervalued companies within the evolving health sciences landscape, ensuring its portfolio remains aligned with long-term growth objectives.
For further insights into hedge fund strategies and investment perspectives, readers can explore additional resources and analysis provided by Diamond Hill Capital and other leading investors.
