Major Funds Rebalance Waters
Avidity Partners and Marshall Wace Lead Institutional Investor Rebalancing in Waters Stock
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Key Points
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Avidity Partners Management LP’s added stake in Waters totaled 8,100 shares worth about $3.077 million, and the company said Waters represented roughly 0.9% of Avidity’s investment portfolio—its 26th-largest position.
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Brown Advisory Inc. increased its Waters position by 14.1% in the fourth quarter, moving to 6,223 shares (valued around $2.364 million) after purchasing an additional 768 shares.
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Marshall Wace LLP expanded its Waters holdings dramatically—up 1,611.3%—to 581,063 shares (about $220.705 million) after adding 547,109 shares in the fourth quarter.
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Bank of Nova Scotia increased its Waters stake by 34.4% in the fourth quarter, ending with 9,849 shares (approximately $3.741 million) after purchasing an additional 2,521 shares.
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Evelyn Partners Asset Management Ltd’s trimmed stake (down 13.1%) left it with 24,171 shares, after selling 3,638; Waters was described as about 2.1% of Evelyn Partners’ holdings and its 13th-largest position, worth $9.181 million at quarter-end. Separately, one report cited that 94.01% of Waters stock is held by institutional investors and hedge funds.
Multiple major investors reshuffled their stakes in Waters Corporation (NYSE: WAT) during the fourth quarter, with Avidity Partners Management LP adding 8,100 shares worth about $3.08 million, according to MarketBeat. The moves signal renewed institutional confidence in the medical instruments maker, even as the company navigated a 4.5% drop in year-over-year revenue.
The flurry of filings reveals a divided Wall Street. Some funds bet big on a rebound. Others quietly trimmed. But nearly everyone stayed in — institutional investors and hedge funds now hold 94.01% of Waters' outstanding stock, per Holdings Channel.
Marshall Wace's 1,611% Surge Dominates the Quarter
The headline move belonged to Marshall Wace LLP. The global hedge fund expanded its Waters position by 1,611.3% in Q4, adding 547,109 shares to end with 581,063 shares worth roughly $220.7 million, according to Watchlist News. That is not a gradual rebalance — it is a high-conviction bet on a recovery.
Marshall Wace appears to be positioning for a cyclical rebound. Waters has significant exposure to China, where lab spending slowed throughout 2023. The fund may be betting that Asian demand recovers in 2024, lifting Waters' top line after two straight quarters of revenue declines.
Smaller Funds Add Shares as Avidity and Scotia Buy In
Avidity Partners Management LP added 8,100 shares in Q4, making Waters its 26th-largest position at 0.9% of its portfolio. Bank of Nova Scotia raised its stake by 34.4%, purchasing an additional 2,521 shares to reach 9,849 shares worth about $3.74 million, according to Ticker Report.
Brown Advisory Inc. also bought in, raising its Waters position by 14.1% after adding 768 shares. It now holds 6,223 shares worth around $2.36 million. Epoch Investment Partners took a smaller step, increasing its stake by 1.1% with 2,356 new shares, bringing its total to 222,473 shares, per Watchlist News.
Evelyn Partners Trims but Keeps Waters as a Top-15 Hold
Not every firm added shares. Evelyn Partners Asset Management Ltd cut its Waters stake by 13.1%, selling 3,638 shares. It now holds 24,171 shares valued at $9.18 million. Yet Waters remains Evelyn's 13th-largest position, representing 2.1% of the UK wealth manager's portfolio — hardly a vote of no confidence.
The trim looks more like routine portfolio gardening than a strategic exit. Evelyn Partners made similar moves elsewhere in Q4 — cutting its Alphabet stake by 37.0%, according to Watchlist News. The pattern suggests a broader risk rebalancing rather than any specific concern about Waters.
Waters CEO Points to Margins as Revenue Slides
Waters reported Q4 2023 revenue of $819 million, down 4.5% year over year. Despite that top-line pressure, CEO Dr. Udit Batra said the company delivered "exceptional margin expansion even in difficult market conditions," with adjusted operating margins holding near 31%. That combination of falling sales and rising margins is exactly what value-focused buyers look for.
Analysts remain cautiously optimistic. Barclays resumed coverage with an "Overweight" rating and a $400 price target. Stifel set a $380 target but flagged the stock's high price-to-earnings ratio of roughly 30x as a risk. Zacks currently rates Waters a "Hold," noting that revenue growth remains under pressure from macro headwinds, per Zacks Investment Research.
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