Core Insights - Baron Health Care Fund reported a 13.10% increase in the fourth quarter, outperforming the Russell 3000 Health Care Index's 11.92% and the Russell 3000 Index's 2.40% [1] - For the full year, the Fund returned 10.28%, while the benchmarks gained 14.56% and 17.15% respectively [1] - The Fund focuses on investing in businesses with sustainable competitive advantages and strong management, particularly in the healthcare sector, which is expected to show positive momentum through 2026 [1] Company Specifics - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted as a key stock in the Fund's fourth-quarter letter, with a one-month return of -12.36% and a 52-week loss of 5.09% [2] - As of February 5, 2026, Thermo Fisher's stock closed at $542.36, with a market capitalization of $203.769 billion [2] - The Fund has increased its position in Thermo Fisher, citing improving end markets for life sciences tools and stable biopharmaceutical R&D investment [3] - Management of Thermo Fisher anticipates organic revenue growth of 3% to 6% for 2026 and 2027, with potential for mid-to-high single-digit adjusted operating income growth [3] - Long-term growth drivers in the life sciences tools industry are expected to enable Thermo Fisher to achieve over 7% organic revenue growth beyond 2027 [3]

Core Thesis - Thermo Fisher Scientific Inc. (TMO) is positioned as a strong investment opportunity in the healthcare and pharmaceutical sectors, benefiting from structural demand and a unique business model that minimizes risks associated with drug development [2][3]. Company Overview - Thermo Fisher provides a wide range of life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services globally, making it a key player in the healthcare innovation landscape [2]. - The company commands approximately 15% of the global life sciences tools and services market, forming a duopoly with Danaher [3]. Market Dynamics - The healthcare demand is resilient due to aging populations, rising chronic diseases, and increased healthcare spending in emerging markets, which supports long-term growth for companies like Thermo Fisher [2]. - The shift towards more complex medicine, including biologics and precision therapies, increases the demand for infrastructure providers, positioning Thermo Fisher favorably within the ecosystem [3]. Business Model - Thermo Fisher's business model focuses on embedding itself throughout the drug development lifecycle, which reduces exposure to patent cliffs and demand volatility [4]. - The company generates significant revenue from high-margin consumables tied to its installed base, creating a recurring revenue stream that enhances financial stability [4]. Financial Performance - Recent operational results indicate improving fundamentals, with the company experiencing positive organic growth and an acceleration in demand from the pharmaceutical and biotech sectors [5]. - The disciplined approach to mergers and acquisitions (M&A) is a core value driver, enhancing capabilities and supporting robust free cash flow, which benefits shareholder returns [5].

Core Insights - Bristol Gate Capital Partners' Q3 2025 investor letter indicates that the US Equity Strategy underperformed the S&P 500® Total Return Index this quarter, primarily due to limited exposure to the AI/TMT and Value sectors, which benefited from the Federal Reserve's rate cut [1] - Despite the underperformance, the portfolio achieved a 15% dividend growth over the trailing 12 months, supported by strong underlying fundamentals [1] Company Highlights - Thermo Fisher Scientific Inc. (NYSE:TMO) is highlighted as a key stock, with a one-month return of 0.53% and a 12.15% increase in share value over the last 52 weeks, closing at $583.45 per share on December 30, 2025, with a market capitalization of $219.207 billion [2] - The company reported Q2 2025 revenue of $10.85 billion, exceeding the consensus estimate of $10.68 billion, and earnings per share of $5.36, surpassing the estimate of $5.22 [3] - Thermo Fisher's stock price increased by 9% following the positive earnings release on July 23, driven by 2% organic growth and the maintenance of long-term guidance [3] Investment Sentiment - Thermo Fisher Scientific Inc. ranks 26th among the 30 Most Popular Stocks Among Hedge Funds, with 121 hedge fund portfolios holding the stock at the end of Q3, an increase from 117 in the previous quarter [4] - While acknowledging Thermo Fisher's potential, there is a belief that certain AI stocks may offer greater upside potential and lower downside risk [4]

Core Viewpoint - Thermo Fisher Scientific Inc. (TMO) is recognized as one of the best stocks to buy in the S&P 500, with a consensus Strong Buy rating from analysts and a one-year price target indicating a potential upside of 12% [1]. Analyst Updates - Wells Fargo raised its price target for TMO to $675 from $635, citing improved clarity on U.S. pharmaceutical policies and positive growth projections [2]. - Citigroup upgraded TMO's rating to Buy from Neutral and increased its price target to $660 from $580, driven by favorable trends in onshoring and pharmaceutical spending [3]. Company Overview - Thermo Fisher Scientific is a leading provider of life sciences solutions, laboratory products, diagnostics, analytical instruments, and biopharma services, with an 8% gain year-to-date in 2025 [4].

Market Overview - The S&P 500 index fell 1.16% to close at 6,721.43, marking the fourth consecutive day of decline due to an ongoing AI infrastructure selloff [1] - Despite the recent downturn, the S&P 500 is up 14.28% year-to-date, indicating a potential for a third consecutive year of double-digit gains [2] Analyst Insights - Brian Mulberry from Zacks Investment Management noted a rotation from large-cap growth to large-cap value, suggesting investors are adopting a more defensive posture ahead of next year [2] - A survey of nine major investment banks indicated a forecasted 10% gain in the S&P 500 over the next 12 months, with expectations that the index will surpass 7,500 by 2026 [3] Investment Methodology - The article identifies the top 14 S&P 500 stocks based on positive analyst sentiment and hedge fund interest, utilizing data from Insider Monkey's database as of Q3 2025 [5] - The strategy has historically outperformed the market, returning 427.7% since May 2014, significantly beating its benchmark [6] Company Highlights Thermo Fisher Scientific Inc. (NYSE:TMO) - Ranked 14th among the best S&P 500 stocks, with 121 hedge fund holders and a consensus Strong Buy rating [7] - Analysts have set a one-year average price target of $640.30, representing a 12% upside [7] - Wells Fargo raised its price target to $675 from $635, citing favorable U.S. government policies and growth projections [8] - Citigroup upgraded the stock to Buy from Neutral, increasing its price target to $660 from $580, driven by onshoring trends and increased pharmaceutical spending [9] - The stock has gained 8% year-to-date [10] Oracle Corporation (NYSE:ORCL) - Ranked 13th with 122 hedge fund holders and a consensus Moderate Buy rating [11] - Barclays maintains an Overweight rating with a price target of $310, while RBC Capital cut its target to $250 from $310 [11] - Oracle's diluted EPS of $2.26 exceeded estimates, but revenue and other key metrics fell short of expectations [12] - The company anticipates capital expenditures to be $15 billion higher than initially projected [13] - Future share price stability will depend on capital efficiency and free cash flow recovery [14] - Analysts have set a one-year average price target of $308.87, indicating a 67% upside [15]

Group 1 - Harding Loevner's Global Equity Strategy reported a gross return of 2.62% and a net return of 2.52% for Q3 2025, underperforming the MSCI All Country World Index and MSCI World Index, which returned 7.74% and 7.36% respectively [1] - Year-to-date, the strategy has risen 10.61% net, compared to 18.86% and 17.83% for the respective indexes [1] - The last six months have been characterized as one of the strongest momentum phases in over 70 years, with high-momentum stocks outperforming low-momentum stocks by 45 percentage points, largely driven by advancements in AI [1] Group 2 - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted as a key stock, with a one-month return of 2.56% and a 52-week gain of 11.44% [2] - As of December 3, 2025, Thermo Fisher's stock closed at $580.45 per share, with a market capitalization of $218.08 billion [2] Group 3 - The investor letter indicated that the Health Care sector is showing signs of recovery despite previous sales declines attributed to pandemic-inflated levels [3] - Operating fundamentals in key end markets are stabilizing, with improved hospital finances in early 2025 as volumes normalized and revenue growth outpaced expenses [3] - Medical technology and services companies are expected to gain better pricing power and a favorable sales mix if patient utilization stabilizes, while life sciences tools may benefit from improved capital budgets [3] - Thermo Fisher's management forecasted 3-6% organic revenue growth for the next year and 7% beyond 2027, which was better than investor expectations, leading to a positive stock performance [3]

Core Insights - Thermo Fisher Scientific Inc. (TMO) is a leading provider of life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products, with a market cap of $220.3 billion [1] Performance Overview - TMO shares have underperformed compared to the broader market, gaining 8.7% over the past year, while the S&P 500 Index has increased by nearly 14.5% [2] - In 2025, TMO stock is up 13%, compared to the S&P 500's 16.5% rise year-to-date [2] Sector Comparison - TMO has outperformed the Health Care Select Sector SPDR Fund (XLV), which gained about 3.8% over the past year, and TMO's year-to-date gains surpass the ETF's 11.1% returns [3] Market Challenges - TMO's underperformance is attributed to economic weakness in China, pricing pressures, and cautious spending by academic institutions and governments [4] - Diagnostics in China are struggling, while Europe shows modest improvement, and the U.S. market remains stable but uncertain [4] Financial Performance - On October 22, TMO reported Q3 results, with an adjusted EPS of $5.79, exceeding Wall Street expectations of $5.50, and revenue of $11.1 billion, beating forecasts of $10.9 billion [5] - For the current fiscal year ending in December, analysts expect TMO's EPS to grow by 4% to $22.74 on a diluted basis [5] - TMO has a strong earnings surprise history, beating consensus estimates in each of the last four quarters [5] Analyst Ratings - Among 23 analysts covering TMO, the consensus rating is a "Strong Buy," with 16 "Strong Buy" ratings, two "Moderate Buys," and five "Holds" [6] - This rating configuration is less bullish than a month ago, when 17 analysts suggested a "Strong Buy" [7]

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite a market rally, with the Russell 3000 Index gaining 8% and calendar-year returns exceeding 14% [1] Company Highlights - Thermo Fisher Scientific Inc. (NYSE:TMO) was highlighted in the investor letter, showing a one-month return of 6.16% and a 52-week gain of 2.11%, with a closing stock price of $567.64 and a market capitalization of $213.267 billion as of November 5, 2025 [2] - The company reported a revenue growth of 3% in Q2, reaching $10.85 billion, and is ranked 26th among the 30 Most Popular Stocks Among Hedge Funds, with 117 hedge fund portfolios holding its stock at the end of Q2 2025 [4] - Diamond Hill Capital initiated four new positions in Q3 2025, including Thermo Fisher Scientific Inc., indicating a belief that its stock price does not reflect its long-term growth potential [3]

Core Viewpoint - Baron Health Care Fund's performance in Q3 2025 was a 5.39% increase, slightly outperforming the Russell 3000 Health Care Index's 5.05% gain, but lagging behind the broader Russell 3000 Index's 8.18% increase, primarily due to stock selection offset by negative impacts from sub-industry allocations and cash holdings during a rising market [1] Group 1: Fund Performance - The Baron Health Care Fund rose 5.39% in Q3 2025 compared to a 5.05% gain for its benchmark [1] - The fund's performance was similar to the benchmark, with solid stock selection being offset by negative effects from active sub-industry allocations and cash holdings [1] Group 2: Thermo Fisher Scientific Inc. (NYSE:TMO) - Thermo Fisher Scientific Inc. is highlighted as a key stock in the fund's portfolio, with a one-month return of 4.31% and a 52-week gain of 2.15% [2] - As of October 31, 2025, Thermo Fisher's stock closed at $567.39, with a market capitalization of $214.253 billion [2] - The fund added to its position in Thermo Fisher, which is expected to achieve 3% to 6% organic revenue growth in 2026 and 2027, with potential for mid-to-high single-digit adjusted operating income growth [3] - Management anticipates that beyond 2027, Thermo Fisher could deliver over 7% organic revenue growth due to positive long-term drivers in the life sciences tools industry [3] - Thermo Fisher Scientific's revenue grew 3% to $10.85 billion in Q2 2025, and it ranks 26th among the 30 most popular stocks among hedge funds, with 117 hedge fund portfolios holding its shares [4]