Investment management firm Diamond Hill Capital has announced its acquisition of shares in Revvity, Inc. (NYSE:RVTY) during the third quarter of 2025. This decision comes as part of its ongoing strategy to identify undervalued companies amid a broader market rally, as detailed in the firm’s latest investor letter.
The third quarter saw US stocks rise over 8% according to the Russell 3000 Index, with small-cap stocks leading the way with gains exceeding 12%. In contrast, mid-cap stocks managed a gain of 5%, while large-cap stocks increased by about 8%. Despite these overall market trends, the Diamond Hill Mid Cap Strategy underperformed the Russell Midcap Index, achieving a net return of 4.49% compared to the index’s 5.33%.
Investment Focus on Revvity, Inc.
In its Q3 investor letter, Diamond Hill highlighted its new position in Revvity, a company specializing in health sciences solutions and technologies. Revvity’s stock has faced challenges, recording a one-month return of -5.16% and a 12.70% decline over the past year. As of December 30, 2025, Revvity shares closed at $97.43, with a market capitalization of $11.309 billion.
According to the investor letter, Diamond Hill expressed its rationale for investing in Revvity: “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. Accordingly, we initiated several new positions in Q3, including Toro Company, Equitable Holdings, Cooper Companies, and Revvity, Inc.” The firm noted that Revvity has upgraded its product offerings to generate higher margins, positioning it well for future growth.
While Revvity is not among the 30 most popular stocks held by hedge funds, data shows that 22 hedge fund portfolios included Revvity at the end of Q3, down from 27 in the previous quarter. The company reported revenue of $699 million for the third quarter, translating to 1% organic growth.
Investment Outlook and AI Considerations
Diamond Hill acknowledges the inherent risks associated with investing in Revvity. The firm believes that while Revvity holds potential, some artificial intelligence stocks may offer more promising returns in the near future. The investor letter suggests that certain AI investments could yield returns of up to 10,000%.
For those interested in exploring more about AI investment opportunities, Diamond Hill has provided insights into stocks that may outperform Revvity. Additionally, the firm encourages readers to review its hedge fund investor letters from Q3 2025 for further insights and analyses.
As the investment landscape continues to evolve, Diamond Hill Capital remains committed to leveraging its expertise to identify compelling opportunities within the market.
