Solid Course, Gentle Setbacks: Parnassus Core Equity Fund in the Third Quarter

The Parnassus Core Equity Fund was able to please its investors in the third quarter of 2024, even though it lagged slightly behind the S&P 500 Index, which rose by 5.89%, with a return of 5.50%. The targeted selection of stocks in the materials and financial sectors had a particularly positive impact. In contrast, decisions in the information technology and industrial sectors weighed on the overall result. A look at the fund's top five could therefore provide interesting insights into its best picks of 2024. Applied Materials experienced exciting developments. The leading company in semiconductor production suffered certain setbacks due to concerns about declining investments in the memory sector. Despite this headwind, the company posted a remarkable 17.89% increase in its stock last year. Nonetheless, Applied Materials is less favored by hedge funds, as the number of portfolios decreased from 77 in the previous quarter to 74. The company's revenues rose by 2.5% to $27.2 billion in the fiscal year 2024. While the fundamentals of Applied Materials appear quite solid, some investors are increasingly focusing on artificial intelligence—a sector considered promising and lucrative. Investors interested in an affordable entry into this dynamic area should potentially look for alternatives that are more cost-effective compared to high-flyers like NVIDIA. In the context of further developments on the stock exchanges and the dynamic movements in the AI-driven stock world, recent investor letters from hedge funds provide additional insights into the strategies of leading investors.