Diamond Hill Capital has announced its acquisition of shares in Revvity, Inc. (NYSE:RVTY) as part of its Mid Cap Strategy during the third quarter of 2025. The investment management firm detailed its decision in the latest investor letter, highlighting Revvity’s potential amidst a buoyant stock market.
During the third quarter, US markets experienced significant gains, with the Russell 3000 Index rising over 8%. Small-cap stocks led the way, surging by more than 12%, while large-cap stocks increased by approximately 8%. Mid-cap stocks, however, saw a more modest gain of 5%. Despite these overall market trends, the Diamond Hill Mid Cap Strategy underperformed the Russell Midcap Index, delivering a net return of 4.49% compared to the Index’s 5.33%.
Investment in Revvity, Inc. and Market Context
Among the stocks highlighted in Diamond Hill’s investor letter was Revvity, Inc., a company specializing in health sciences solutions and technologies. As of December 30, 2025, Revvity’s shares closed at $97.43, with a market capitalization of approximately $11.309 billion. Despite a challenging year for Revvity, which saw its stock decline by 12.70% over the past 52 weeks, Diamond Hill Capital recognized its long-term growth potential.
In their analysis, Diamond Hill noted, “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.” They initiated new positions in several companies during Q3, including Revvity, citing concerns among investors regarding biopharmaceutical policy uncertainty as an opportunity to acquire shares at a discount to their intrinsic value estimate.
Revvity reported revenue of $699 million in Q3 2025, achieving 1% organic growth. Despite acknowledging the risks associated with this investment, Diamond Hill expressed confidence in the long-term potential of Revvity, particularly as it upgrades its product portfolio to feature higher-margin offerings.
Market Trends and Hedge Fund Activity
Interestingly, Revvity is not among the top 30 most popular stocks held by hedge funds. At the end of Q3 2025, 22 hedge fund portfolios included Revvity, a decrease from 27 in the previous quarter. The firm’s strategy reflects a broader trend where investors are increasingly drawn to stocks with promising AI capabilities. Diamond Hill suggested that while Revvity holds potential, there are other AI stocks with even greater upside potential.
In the context of ongoing market performance, investors are encouraged to examine various opportunities within the biotech and AI sectors. The insights provided in Diamond Hill’s investor letter further emphasize the importance of individual stock selection, particularly during periods of market volatility.
For those interested in further analysis, additional resources regarding hedge fund investor letters and market performance can be accessed through Diamond Hill Capital’s publications.
In summary, Diamond Hill Capital’s investment in Revvity underscores a strategic approach to navigating market fluctuations and identifying undervalued opportunities in the health sciences sector. This move may reflect a significant shift in investor sentiment as the market continues to evolve.
