Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index’s 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index’s 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration’s business-friendly policies. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized 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 7.75%, and its shares gained 18.18% of their value over the last 52 weeks. On March 11, 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock closed at $488.34 per share with a market capitalization of $125.401 billion.
Parnassus Core Equity Fund stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q4 2024 investor letter:
“In the Health Care sector, we added drugmaker Eli Lilly, which has an exceptional GLP-1 franchise and a strong track record of innovation, and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Vertex is a high-quality biotech company run by a strong management team that has made a promising acquisition and advanced its diabetes pipeline. The developments gave us confidence that Vertex’s innovative approach and high-quality management team will continue to achieve positive clinical outcomes and strengthen its competitive advantage.”
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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 fourth quarter Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported $2.91 billion in revenues up 16% from Q4 2023. 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 discussed Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and shared the list of best pharma stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2024 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.