Diamond Hill Capital Large Cap Fund Added Thermo Fisher Scientific (TMO) on a Dip

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter of 2025, with the Russell 3000 Index gaining 8%, bringing the calendar-year returns to over 14%. The portfolio declined and underperformed the Russell 1000 Value Index in the quarter.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its third-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. The one-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was 6.16%, and its shares gained 2.11% of their value over the last 52 weeks. On November 5, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) stock closed at $567.64 per share, with a market capitalization of $213.267 billion.

Diamond Hill Large Cap Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its third quarter 2025 investor letter:

"Though markets have continued rising throughout the year, we have still found individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated four new positions in Q3, including FedEx, Thermo Fisher Scientific Inc. (NYSE:TMO), Zoetis and Equitable Holdings.

Thermo Fisher Scientific is a leader in the medical tools and diagnostics space. We believe it is a well-run business that is structurally advantaged to take market share given the scale and breadth of its product portfolio. Against the backdrop of a slowdown in its end markets, we capitalized on a depressed share price to add the position to the portfolio."

Thermo Fisher Scientific Inc. (NYSE:TMO) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 117 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the second quarter, which was 101 in the previous quarter. Thermo Fisher Scientific Inc.’s (NYSE:TMO) revenue in the second quarter grew 3% to $10.85 billion. While we acknowledge the potential of Thermo Fisher Scientific Inc. (NYSE:TMO) 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 another article, we covered Thermo Fisher Scientific Inc. (NYSE:TMO) and shared Baron Health Care Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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