Diamond Hill Capital has announced its investment in Revvity, Inc. (NYSE:RVTY) as part of its Mid Cap Strategy for the third quarter of 2025. The decision follows a broader market rally, with U.S. stocks gaining over 8% during the quarter, as indicated by the Russell 3000 Index. Small-cap stocks led the surge, rising more than 12%, while large-cap stocks increased by approximately 8%. In contrast, mid-cap stocks experienced a more modest gain of 5%.
Despite the positive market conditions, the Mid Cap Strategy underperformed relative to the Russell Midcap Index, achieving a return of 4.49% net compared to the Index’s 5.33%. The investor letter released by Diamond Hill details the firm’s rationale for adding Revvity to its portfolio, among other new positions taken in Q3.
Diamond Hill’s Perspective on Revvity
In the investor letter, Diamond Hill Capital emphasized its ongoing search for undervalued companies. The letter states, “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 perspective led to the initiation of several new positions, including Revvity, which is recognized for its contributions to life sciences tools and diagnostics.
Revvity, Inc. specializes in providing instruments and consumables for preclinical drug research. The company has recently upgraded its product offerings to include higher-margin solutions. As of December 30, 2025, Revvity’s stock closed at $97.43 per share, and its market capitalization stood at approximately $11.309 billion. Despite the company’s challenges, including a one-month return of -5.16% and a 12.70% decline over the past 52 weeks, Diamond Hill sees potential in Revvity’s business model.
The letter further outlines the firm’s strategy to capitalize on current investor concerns regarding biopharmaceutical policy uncertainty, positioning Revvity as a strategic addition at a price considered to be below its intrinsic value.
Market Position and Future Outlook
As of the end of Q3 2025, Revvity was included in the portfolios of 22 hedge funds, a decrease from 27 in the previous quarter. The company reported revenue of $699 million during the same period, reflecting a modest 1% organic growth. While acknowledging the risks associated with investing in Revvity, Diamond Hill has expressed a stronger belief in the potential of other AI stocks to yield higher returns in a shorter timeframe.
For investors looking for more promising alternatives in the AI sector, Diamond Hill refers to a report highlighting stocks with substantial upside potential, while also indicating that Revvity does not feature in their list of the 30 most popular stocks among hedge funds.
As the market continues to evolve, the strategic decisions made by firms like Diamond Hill Capital will be crucial for investors navigating the complexities of the financial landscape. For further insights and detailed analyses from hedge funds, readers can explore additional investor letters from Q3 2025 and other market commentary.
