Broyhill Views Avantor (AVTR) as a Costly Mistake. Here’s Why

Core Insights - Broyhill Asset Management's fourth-quarter 2025 investor letter highlights extreme market concentration and a strong focus on artificial intelligence, leading to underperformance in many sectors [1] - The portfolio experienced a decline of 1.4% for the year, significantly underperforming the MSCI ACWI's return of 22.9% [1] - The firm emphasizes a contrarian and strategic approach, adapting quickly to changing market conditions [1] Company-Specific Insights - Avantor, Inc. (NYSE:AVTR) is identified as a significant detractor from performance, with a one-month return of -16.19% and a 52-week loss of 45.06% [2] - Avantor's market capitalization is reported at $6.18 billion [2] - The company faced challenges due to financial leverage and execution missteps, which masked the broader industry upturn [3] - Broyhill Asset Management reduced its position in Avantor by half after disappointing management changes and second-quarter results [3] - Despite challenges, Avantor is viewed as a strategic asset with potential for recovery, supported by reaccelerating revenues and favorable agreements with big pharma [3]