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]

Core Insights - ClearBridge Investments reported strong equity performance in Q3 2025, with the S&P 500 Index rising 8.1% and the Nasdaq Composite increasing by 11.2% to record highs, driven by favorable economic conditions and strong corporate earnings, particularly in technology [1] - The ClearBridge Large Cap Growth Strategy underperformed the benchmark due to underexposure to perceived AI winners and holding stocks considered AI losers [1] Company-Specific Insights - Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is highlighted as a key investment, focusing on therapies for cystic fibrosis, with a one-month return of 1.81% and a 52-week loss of 11.42% [2] - As of October 3, 2025, Vertex Pharmaceuticals had a market capitalization of $103.402 billion, with shares closing at $403.30 [2] - ClearBridge upgraded its biopharmaceutical exposure by purchasing Vertex Pharmaceuticals, viewing it as a high-quality biotech with significant opportunities in pain treatments [3] Hedge Fund Interest - Vertex Pharmaceuticals was held by 53 hedge fund portfolios at the end of Q2 2025, a decrease from 60 in the previous quarter [4] - The company reported $2.96 billion in revenue for Q2 2025, reflecting a 12% growth compared to Q2 2024 [4] - Despite the potential of Vertex Pharmaceuticals, some analysts believe that certain AI stocks present greater upside potential and lower downside risk [4]