Diamond Hill Capital Small Cap Strategy's Views on Mesa Laboratories (MLAB)

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with small-cap stocks gaining over 12% as measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index in the quarter, returning 7.93% (net of fees). The relative underperformance was mainly due to the rally being driven by sectors that the portfolio typically does not own. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Capital Small Cap Strategy highlighted stocks such as Mesa Laboratories, Inc. (NASDAQ:MLAB). Mesa Laboratories, Inc. (NASDAQ:MLAB) is a comprehensive provider of life sciences tools and quality control products and services. One-month return of Mesa Laboratories, Inc. (NASDAQ:MLAB) was -0.22%, and its shares lost 33.24% of their value over the last 52 weeks. On November 24, 2025, Mesa Laboratories, Inc. (NASDAQ:MLAB) stock closed at $77.74 per share, with a market capitalization of $429.304 million.

Diamond Hill Capital Small Cap Strategy stated the following regarding Mesa Laboratories, Inc. (NASDAQ:MLAB) in its third quarter 2025 investor letter:

"Bottom contributors in Q3 included FTAI Infrastructure and Mesa Laboratories, Inc. (NASDAQ:MLAB). Mesa Laboratories provides life sciences tools and quality control products and services. The company navigated a challenging macroeconomic environment with modest growth — though profitability was pressured by currency impacts, tariffs and timing delays. These order timing issues also weighed on organic growth, as did China-related headwinds. However, positively, Mesa’s largest segment, sterilization and disinfection control, delivered solid core growth, speaking to the resilience of the company’s diversified portfolio."

Mesa Laboratories, Inc. (NASDAQ:MLAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 12 hedge fund portfolios held Mesa Laboratories, Inc. (NASDAQ:MLAB) at the end of the second quarter, up from 8 in the previous quarter.  While we acknowledge the potential of Mesa Laboratories, Inc. (NASDAQ:MLAB) 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.

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