Vertex Pharmaceuticals Incorporated (VRTX) Surged On a Recovery in Investor Sentiment

Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.54% (Institutional Shares) in the quarter compared to a 3.87% gain for the Russell 3000 Health Care Index (benchmark) and a 4.72% decline for the Russell 3000 Index (the Index). The fund trailed the benchmark due to stock selection and, to a lesser extent, active sub-industry weights. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company focusing on developing and commercializing therapies for treating cystic fibrosis (CF). The one-month return of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was -11.28%, and its shares gained 1.61% of their value over the last 52 weeks. On May 8, 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock closed at $429.60 per share with a market capitalization of $110.32 billion.

Baron Health Care Fund stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q1 2025 investor letter:

"Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a leading biotechnology company with a cystic fibrosis franchise and a pipeline of drugs for other conditions. Shares increased on a recovery in investor sentiment after disappointing data from Journvax in lumbar spinal radiculopathy in December. We remain bullish on Vertex’s cystic fibrosis business and its evolving pipeline, including Journvax, a non-opioid NaV inhibitor currently in launch for the treatment of acute pain. Although Vertex needs to finalize utilization management criteria with payers, we see a high level of unmet need and large potential market. Vertex’s broader pipeline for pain treatment includes several additional non-opioid NaV inhibitor assets. We are also encouraged by its pipeline in kidney disease, including inaxaplin for APOL1-mediated kidney disease and povetacicept for IgA nephropathy."

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) at the end of the fourth quarter which was 55 in the previous quarter. In the first quarter Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported $2.77 billion in revenues, up 3% from Q1 2024. While we acknowledge the potential of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and shared the list of stocks on Jim Cramer’s radar. In the first quarter of 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) ranked as GreensKeeper Asset Management's second-largest holding. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.