Prosper Stars & Stripes, a long/short equity fund, recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2025, Prosper Stars & Stripes achieved a net return of +9.8%. In comparison, its long/short equity hedge fund peer group, as indicated by the HFRX Equity Hedge (Total) Index (the “HFRX”), reported a total return of +3.8%. Additionally, the long-only small-cap Russell 2000 Index (the “Russell”) had a total return of +12.4%. Year to ...

Core Insights - U.S. pharmaceutical imports reached nearly $213 billion in 2024, significantly increasing from a decade ago [1] - The U.S. administration plans to impose tariffs on pharmaceuticals to encourage domestic manufacturing, a move already being pursued by companies like Eli Lilly and Johnson & Johnson [2][3] - Concerns have been raised about the feasibility and cost of reshoring production, which could disrupt supply chains and increase drug prices for patients [4][5] Industry Trends - The pharmaceutical industry has seen a dramatic decline in domestic manufacturing, with production moving to countries like China and India due to lower costs [2] - Analysts suggest that tariffs may not effectively shift manufacturing back to the U.S., as companies already have established operations domestically [5] - A group of House Democrats is advocating for the protection of medical supply chains, warning of potential negative impacts on U.S. patients due to trade tensions [6][7] Company Responses - Eli Lilly has invested $27 billion in U.S. manufacturing but expressed concerns about the impact of tariffs on research and development [8] - Johnson & Johnson announced a $55 billion investment in U.S. manufacturing and R&D over the next four years, but has not publicly commented on the tariffs [9]