IDEXX Laboratories (IDXX): From a Detractor to a Revivor

Fundsmith, an investment management firm based in London, has released its annual 2025 investor letter for its “Fundsmith Equity Fund.” A copy of the letter can be downloaded here. The fund focuses on investing in equities globally. The T Class Accumulation shares where the firm invested returned 0.8% in 2025, compared to 12.8% for the MSCI World Index (‘Index’) in sterling with dividends reinvested. Since its inception, the fund has returned 1.7% p.a. more than the index. The fund attributed its underperformance during 2025 to index concentration, the growth of assets in Index Funds, and weakness in the dollar. In addition, please check the fund’s top five holdings to know its best picks in 2025.

 In its fourth-quarter 2025 investor letter, Fundsmith Equity Fund highlighted stocks such as IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. The one-month return of IDEXX Laboratories, Inc. (NASDAQ:IDXX) was 4.56%, and its shares gained 73.13% of their value over the last 52 weeks. On January 12, 2026, IDEXX Laboratories Inc. (NASDAQ:IDXX) stock closed at $724.76 per share, with a market capitalization of $57.98 billion.

Fundsmith Equity Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its fourth quarter 2025 investor letter:

"IDEXX Laboratories, Inc. (NASDAQ:IDXX), the veterinary diagnostic equipment business, makes its sixth appearance having resurrected its position from being a detractor last year when it was suffering from the ebbing of the Covid era mania for pet adoption."

IDEXX Laboratories, Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 55 hedge fund portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) at the end of the third quarter, up from 48 in the previous quarter. IDEXX Laboratories Inc.’s (NASDAQ:IDXX) revenue increased 13% as reported and 12% organically in the third quarter of 2025. While we acknowledge the potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) 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 IDEXX Laboratories, Inc. (NASDAQ:IDXX) and shared Baron Asset Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.