ClearBridge Investments released its third-quarter 2025 investor letter, reporting strong market performance with the S&P 500 up 8.1% and Nasdaq rising 11.2%. The strategy underperformed the benchmark due to underexposure to AI winners and holding stocks deemed losers. Check the fund’s top five holdings for 2025’s best picks.

In the third quarter, ClearBridge Large Cap Growth Strategy highlighted Vertex Pharmaceuticals (NASDAQ:VRTX), a biotech company focused on cystic fibrosis treatments. The stock had a one-month return of 1.81% and closed at $403.30 on October 3, 2025. The fund sees Vertex’s pain treatments as a significant opportunity and views its valuation as moderate.

Vertex Pharmaceuticals (NASDAQ:VRTX) was not among the 30 most popular stocks among hedge funds in the second quarter. Despite delivering $2.96 billion in revenue, the stock is not favored by hedge funds due to perceived greater potential in AI stocks with less downside risk. Check our report on the best short-term AI stock for more information.

Read more at Yahoo Finance: What Makes Vertex Pharmaceuticals (VRTX) an Investment Bet?