Harding Loevner Global Equity’s Views on Vertex Pharmaceuticals Incorporated (VRTX)

Core Insights - 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 seen 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] Company Insights: Vertex Pharmaceuticals Incorporated - Vertex Pharmaceuticals focuses on developing therapies for cystic fibrosis, with a one-month return of 11.26% and a 52-week gain of 0.70% [2] - As of December 3, 2025, Vertex's stock closed at $463.13 per share, with a market capitalization of $117.5 billion [2] - Vertex is a significant holding in Harding Loevner's portfolio, representing the fourth-largest sector holding in Health Care, with expected earnings growth of about 15% annually over the next five years [3] Market Position and Performance - Vertex Pharmaceuticals generated $3.08 billion in revenue in Q3 2025, reflecting an 11% growth compared to Q3 2024 [4] - Despite its potential, Vertex is not among the top 30 most popular stocks among hedge funds, with 61 hedge fund portfolios holding its stock at the end of Q3, up from 53 in the previous quarter [4] - The analysis suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Vertex Pharmaceuticals [4]