New York City-based DSC Meridian Capital fully exited its position in Bausch + Lomb during the third quarter, reducing its holdings by 510,090 shares, a move totaling approximately $6.6 million.
What Happened
According to a filing with the Securities and Exchange Commission (SEC) released on November 14, DSC Meridian Capital LP sold out of its entire stake in Bausch + Lomb (BLCO 5.26%) during the third quarter. The fund disposed of approximately 510,090 shares, valued at an estimated $6.6 million based on quarterly average prices, leaving it with no remaining shares in the company.
What Else to Know
DSC Meridian Capital's Bausch + Lomb position previously accounted for roughly 1.35% of its reportable AUM.
Top holdings after the filing:
- NYSEMKT: BKLN: $43.8 million (21.9% of AUM)
- NASDAQ: CORZ: $40.9 million (20.5% of AUM)
- NYSE: VST: $26.3 million (13.2% of AUM)
- NASDAQ: COOP: $22.9 million (11.5% of AUM)
- NYSE: TECK: $22.9 million (11.4% of AUM)
As of Wednesday, shares of Bausch + Lomb were priced at $16.90, down 9% over the past year and well below the S&P 500's 12% gain.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5 billion |
| Net Income (TTM) | ($305 million) |
| Price (as of Wednesday) | $15.69 |
| One-Year Price Change | (9%) |
Company Snapshot
- Bausch + Lomb offers a broad portfolio of vision care products, ophthalmic pharmaceuticals, and surgical devices, including contact lenses, eye drops, and surgical instruments for eye conditions.
- The company generates revenue primarily through the sale of proprietary and generic eye health products to healthcare professionals, clinics, and retail channels worldwide.
- It serves ophthalmologists, optometrists, surgical centers, and consumers seeking vision correction and eye health solutions globally.
Bausch + Lomb Corporation is a global leader in eye health, operating across vision care, pharmaceuticals, and surgical segments. The company leverages a diverse product portfolio and international distribution to address a wide range of ocular conditions and procedures. Its scale and longstanding presence in the industry support a competitive position in the medical instruments and supplies market.
Foolish Take
Bausch + Lomb is delivering steady top-line growth and margin improvement, but its shares continue to trade with a solid amount of volatility. The company’s latest quarter showed real progress. Third-quarter revenue climbed 7% year over year to $1.28 billion, driven by growth across the Vision Care, Pharmaceuticals, and Surgical segments. Adjusted EBITDA rose to $243 million, up from $212 million a year earlier. Management also nudged full-year adjusted EBITDA guidance higher, signaling confidence in execution despite currency and macro noise.
Yet the stock remains volatile, down 9% over the past year and trailing the broader market. That disconnect likely explains the full exit. Compared with the fund’s remaining holdings, which tilt toward infrastructure, power generation, and commodity-linked names, Bausch + Lomb stands out as a lower-conviction, healthcare-specific bet with slower sentiment recovery.
For patient investors, the takeaway is nuanced. Bausch + Lomb is not a turnaround story, but it is not broken either. Its diversified revenue base, expanding product pipeline, and improving profitability suggest durability. The risk is less about fundamentals and more about whether the market is willing to reward steady execution in a sector that investors have been quick to trade around rather than hold through volatility.
Glossary
13F AUM: Assets under management reported by institutional investment managers in quarterly SEC Form 13F filings.
Alpha: A measure of an investment's performance relative to a benchmark, showing excess return or underperformance.
Liquidated: The process of selling all holdings in an investment, resulting in a zero position.
Stake: The amount of ownership or investment a fund or individual holds in a company.
Proprietary: Products or technologies owned and controlled by a specific company, not available for use by others.
Ophthalmic pharmaceuticals: Medications specifically formulated to treat eye conditions and diseases.
Ocular: Relating to the eye or vision.
TTM: The 12-month period ending with the most recent quarterly report.
Reportable AUM: The portion of a fund's assets under management that must be disclosed in regulatory filings.
Quarterly average prices: The average price of a security over a specific quarter, used for valuation or reporting.
Vision care products: Items designed to maintain or improve eye health, such as contact lenses and eye drops.
Distribution: The process of delivering products from a company to customers or sales channels.
