What Makes Bio-Rad Laboratories (BIO) an Investment Bet?

Upslope Capital Management, an investment management company, released its third-quarter investor letter. A copy of the letter can be downloaded here. The third quarter was a strong one for the fund despite unusual volatility in the macro environment. The fund returned +8.8% (net) in Q3 compared to +5.5% and +3.8% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as Bio-Rad Laboratories, Inc. (NYSE:BIO). Bio-Rad Laboratories, Inc. (NYSE:BIO) is a life science research and clinical diagnostic products company. The one-month return of Bio-Rad Laboratories, Inc. (NYSE:BIO) was 25.42%, and its shares gained 3.37% of their value over the last 52 weeks. On October 22, 2025, Bio-Rad Laboratories, Inc. (NYSE:BIO) stock closed at $331.27 per share, with a market capitalization of $8.789 billion.

Upslope Capital Management stated the following regarding Bio-Rad Laboratories, Inc. (NYSE:BIO) in its third quarter 2025 investor letter:

"Bio-Rad Laboratories, Inc. (NYSE:BIO) – global producer of clinical diagnostic and life sciences products. The company is the market leader in a majority of its products and largely sells to hospital and other labs, as well as academic, government, and biopharma customers. ~70% of sales are recurring/consumable in nature. Importantly (and somewhat strangely…and impressively), the company owns more than 35% of Germany-based and -listed Sartorius (SRT-DE). As a global leader in bioprocessing, Sartorius provides many of the vital tools, consumables and equipment used by drug-makers to develop and manufacture biologic medicines. Tax-affected, BIO’s SRT stake represents almost 50% of BIO’s enterprise value today and implies a well-below market and peer valuation for BIO’s core operating business. Like most healthcare stocks, both BIO and SRT have seen sharp valuation de-ratings in recent years, as they’ve worked through their own COVID era hangovers (fundamentally and especially valuation-wise). BIO’s underlying valuation (9x 2026 EBITDA accounting for the SRT stake) seems particularly attractive today – especially considering the prospect of troughing fundamentals."

Bio-Rad Laboratories, Inc. (NYSE:BIO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Bio-Rad Laboratories, Inc. (NYSE:BIO) at the end of the second quarter, up from 36 in the previous quarter.  While we acknowledge the potential of Bio-Rad Laboratories, Inc. (NYSE:BIO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.