BLCO Stock Still 16% Below IPO — Is Silver Point’s $38.7 Million Bet a Turning Point?

Connecticut-based Silver Point Capital initiated a new position in Bausch + Lomb Corporation (NYSE:BLCO), adding nearly 2.6 millino shares for an estimated $38.7 million, per its November 14 SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, Silver Point Capital disclosed a new stake in Bausch + Lomb Corporation (NYSE:BLCO). The fund reported ownership of 2.6 million shares, representing a position valued at approximately $38.7 million at the quarter’s end. This new holding brings Silver Point’s reportable U.S. equity portfolio to 19 positions.

What Else to Know

The BLCO stake accounts for 2.8% of Silver Point’s reported AUM as of September 30.

Top five holdings after the filing:

• NYSE:GPOR: $677 million (49.1% of AUM)
• NYSE:MSC: $111.7 million (8.1% of AUM)
• NYSEMKT:IAU: $97.1 million (7% of AUM)
• NASDAQ:SATS: $82.1 million (6% of AUM)
• NYSEMKT:IWM: $71.6 million (5.2% of AUM)

As of Wednesday, BLCO shares were priced at $16.95, down 13% over the past year and well underperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

Bausch + Lomb Corporation operates in eye health globally, with a portfolio spanning vision care, pharmaceuticals, and surgical solutions. It offers contact lenses, lens care products, ophthalmic pharmaceuticals, and surgical devices for eye health across three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. The company generates revenue primarily through the sale of branded and generic eye health products, surgical tools, and consumer health items distributed globally to healthcare professionals and retail channels. It serves ophthalmologists, optometrists, healthcare institutions, and consumers seeking vision correction and eye care solutions worldwide.

Foolish Take

Even with shares still trading below their post-IPO highs, Bausch + Lomb’s steady operating progress has started to matter again—especially for long-term investors watching whether the turnaround is building real momentum. A new position from Silver Point Capital suggests institutional money is noticing the shift. The firm added nearly 2.6 million shares in the third quarter, giving it meaningful exposure to a business that’s quietly putting up consistent growth while working through a multiyear reset.

The fund’s $38.7 million BLCO stake now represents 2.8% of its reported U.S. equity assets, placing it just outside its top five holdings—far smaller than its dominant Gulfport Energy position but still a noteworthy bet in a concentrated portfolio. Bausch + Lomb reported 7% revenue growth to $1.3 billion in the third quarter, with strength across its vision Care, surgical, and pharmaceutical segments. Adjusted EBITDA rose to $243 million, and management reaffirmed full-year revenue guidance alongside slightly higher EBITDA expectations. On the other hand, the net loss totaled $28 million, compared to income of $4 million one year earlier.

The key question is whether this operational stability can translate into sustained earnings growth—and whether the stock, still down ~16% from its 2022 post-IPO levels, can regain investor confidence as new products move through the pipeline.

Glossary

13F portfolio: The collection of U.S. equity holdings that institutional investment managers must report quarterly to the SEC.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Reportable U.S. equity assets: U.S. stocks that institutional managers are required to disclose in regulatory filings.
Position: The amount of a particular security or asset held in a portfolio.
Trailing-twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Forward price-to-earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
Enterprise value to EBITDA ratio: A valuation measure comparing a company's total value to its earnings before interest, taxes, depreciation, and amortization.
Net loss: When a company's total expenses exceed its total revenues over a specific period.
Stake: The ownership interest or investment a person or institution holds in a company.
Filing: An official document submitted to a regulatory authority, often containing financial or ownership information.
Ophthalmic pharmaceuticals: Medications specifically formulated for the treatment or management of eye conditions.
Consumer health care: Products and services aimed at maintaining or improving the health of the general public, sold directly to consumers.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.