Readystate Asset Management Takes a Giant Step Back From Lab Materials Stock

Readystate Asset Management LP disclosed a significant reduction in its Avantor, Inc. (NYSE:AVTR) stake, selling 1,935,256 shares for a transaction value of approximately $24.94 million, according to its November 07, 2025, SEC filing.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 07, 2025, Readystate Asset Management LP sold 1,935,256 shares of Avantor during the third quarter. The estimated transaction value was $24,935,471, based on average quarterly pricing. The remaining stake at quarter-end was 74,191 shares, valued at $925,904.

What Else to Know

• Following the sale, Avantor represents 0.07% of the fund’s $1.31 billion in reportable equity assets, placing it outside the top five holdings.
• As of November 6, 2025, Avantor shares were priced at $11.32, down 50.72% over the past year; shares have underperformed the S&P 500 by 66.50 percentage points.
• The position was previously 1.24% of the fund's AUM as of the prior quarter, reflecting a substantial cut as part of a broader 40% fund downsizing.

Company Overview

Company Snapshot

Avantor, Inc. is a global provider of mission-critical products and services for scientific research, biopharmaceutical manufacturing, and laboratory operations. With a diversified customer base and a comprehensive offering, Avantor supports innovation and operational efficiency across healthcare, education, and technology sectors. The company's scale and integrated supply chain enhance its ability to serve complex customer needs and maintain a competitive position in the laboratory and life sciences market.

• Avantor provides a broad portfolio of laboratory materials, consumables, equipment, and services, including high-purity chemicals, reagents, lab supplies, and specialized biopharma solutions.
• The company generates revenue by supplying essential products and integrated services to customers in the biopharma, healthcare, education, government, and advanced technology sectors, supporting research, production, and laboratory workflows.
• Primary customers include biopharmaceutical manufacturers, academic and government research institutions, healthcare providers, and companies in advanced technology and applied materials industries worldwide.

Foolish Take

By selling nearly $25 million worth of Avantor shares, Readystate Asset Management has shifted away from the laboratory materials stock. Retail investors may want to take note and perhaps explore other options within the healthcare sector.

To recap, shares of Avantor have vastly underperformed key benchmarks year-to-date. For example, this year alone, Avantor stock has plummeted by 45%, while the S&P 500 has advanced by 16%. Moreover, Avantor has also underperformed within the healthcare sector. The Health Care Select Sector SPDR ETF (XLV) has advanced by 8% year-to-date, far outpacing Avantor stock.

While Readystate didn't close out its entire position in Avantor, it did reduce its overall holdings of the stock by about 96%. That type of reduction is almost certainly due to a shift in sentiment among Readystate's portfolio managers.

For average investors, this transaction can serve as a warning -- indicating that institutional support for Readystate is decreasing, along with its share price. Retail investors may want to consider a broad-based ETF like the XLV if they are looking for healthcare exposure for their portfolio.

Glossary

AUM: Assets Under Management; the total market value of investments managed by a fund or firm.
Reportable equity assets: Equity holdings that must be disclosed in regulatory filings, typically large or significant positions.
Top holdings: The largest investments in a fund's portfolio, usually by market value or percentage of assets.
Stake: The amount of ownership or shares held in a company by an investor or fund.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
Downsizing (fund): Reducing the size of a fund's portfolio, often by selling assets or positions.
Biopharma: The sector focused on developing and manufacturing drugs using biological sources and processes.
Integrated supply chain: A coordinated network of suppliers, manufacturers, and distributors working together to deliver products efficiently.
Consumables: Products that are used up quickly and need regular replacement, such as lab supplies.
Mission-critical: Essential products or services that are vital for the operation of a business or process.
TTM: The 12-month period ending with the most recent quarterly report.
Transaction value: The total dollar amount received or paid in a specific buy or sell of assets.

Jake Lerch has positions in Select Sector SPDR Trust - The Health Care Select Sector SPDR Fund. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.