Diamond Hill Capital has announced its investment in Revvity, Inc. (NYSE:RVTY) as part of its third-quarter 2025 Mid Cap Strategy. The investment comes during a period of significant market growth, with U.S. stocks gaining over 8% as measured by the Russell 3000 Index. Small-cap stocks led the rally, rising by more than 12%, while mid-cap stocks saw an increase of 5%.
Despite this positive market trend, the Diamond Hill Mid Cap Strategy underperformed the Russell Midcap Index, returning 4.49% net compared to the Index’s 5.33%. The company’s investor letter indicates that while overall market conditions improved, certain individual stocks, including Revvity, were perceived as undervalued.
Investment Rationale and Revvity’s Performance
Revvity, a health sciences solutions and technologies company, has garnered attention for its potential in the life sciences sector. As of December 30, 2025, Revvity’s shares closed at $97.43, giving it a market capitalization of $11.309 billion. However, the company has faced challenges, with a one-month return of -5.16% and a loss of 12.70% over the past year.
In its investor letter, Diamond Hill Capital 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.” This sentiment led to the initiation of new positions, including Revvity, as well as Toro Company, Equitable Holdings, and Cooper Companies.
Revvity specializes in providing tools and diagnostics for preclinical drug research. The company has recently upgraded its product portfolio to focus on offerings that yield higher margins. According to Diamond Hill, this strategic shift presents an opportunity to capitalize on current investor concerns surrounding biopharmaceutical policy uncertainty, allowing them to acquire shares at a valuation attractive relative to their intrinsic value estimate.
Market Context and Hedge Fund Interest
Revvity is not currently among the 30 most popular stocks held by hedge funds. At the end of Q3 2025, it was included in the portfolios of 22 hedge funds, a decrease from 27 in the previous quarter. For the third quarter, Revvity reported a revenue of $699 million, reflecting a modest organic growth rate of 1%.
While acknowledging the risks associated with investing in Revvity, Diamond Hill’s letter emphasizes their belief in the potential of some artificial intelligence (AI) stocks to deliver higher returns in a shorter time frame. The letter suggests that investors seeking promising AI stocks with significant upside potential may want to explore alternatives beyond Revvity.
For those interested in further insights, additional articles and reports are available, including a summary of stocks discussed by notable financial commentators.
In summary, Diamond Hill Capital’s investment in Revvity showcases their strategy to identify undervalued companies amid a generally bullish market. As the health sciences sector evolves, the performance of Revvity will be closely monitored by both investors and analysts alike.
