Exploring the Strategic Moves of Parnassus Value Equity Fund (Trades, Portfolio) in Q1 2025
Parnassus Value Equity Fund (Trades, Portfolio) recently submitted its N-PORT filing for the first quarter of 2025, shedding light on its strategic investment decisions during this period. As part of Jerome Dodson (Trades, Portfolio)’s Parnassus Investments, the fund is known for its fossil-fuel-free and positive workplace investment philosophy. Initially managed by Dodson, the fund transitioned to Billy Hwan's leadership in 2020. In 2021, Affiliated Managers Group acquired a majority stake in Parnassus, further solidifying its market presence. Formerly known as the Parnassus Endeavor Fund, it was renamed on December 30, 2022. The fund focuses on U.S. large-cap companies with long-term competitive advantages, quality management, and strong ESG performance, while avoiding fossil fuel investments. The managers aim to outperform the S&P 500 Index by investing in quality companies at discounted prices, accepting a wide range of outcomes for temporarily undervalued stocks.
Summary of New Buy
Parnassus Value Equity Fund (Trades, Portfolio) added a total of two stocks, among them:
- The most significant addition was JPMorgan Chase & Co (JPM, Financial), with 373,822 shares, accounting for 2.05% of the portfolio and a total value of $91.7 million.
- The second largest addition to the portfolio was Advanced Micro Devices Inc (AMD, Financial), consisting of 479,833 shares, representing approximately 1.1% of the portfolio, with a total value of $49.3 million.
Key Position Increases
Parnassus Value Equity Fund (Trades, Portfolio) also increased stakes in a total of 12 stocks, among them:
- The most notable increase was Novo Nordisk AS (NVO, Financial), with an additional 332,361 shares, bringing the total to 926,083 shares. This adjustment represents a significant 55.98% increase in share count, a 0.52% impact on the current portfolio, with a total value of $64.3 million.
- The second largest increase was FedEx Corp (FDX, Financial), with an additional 68,158 shares, bringing the total to 369,368. This adjustment represents a significant 22.63% increase in share count, with a total value of $90.0 million.
Summary of Sold Out
Parnassus Value Equity Fund (Trades, Portfolio) completely exited two holdings in the first quarter of 2025, as detailed below:
- Ross Stores Inc (ROST, Financial): Parnassus Value Equity Fund (Trades, Portfolio) sold all 676,514 shares, resulting in a -2.13% impact on the portfolio.
- Align Technology Inc (ALGN, Financial): Parnassus Value Equity Fund (Trades, Portfolio) liquidated all 330,007 shares, causing a -1.44% impact on the portfolio.
Key Position Reduces
Parnassus Value Equity Fund (Trades, Portfolio) also reduced positions in 15 stocks. The most significant changes include:
- Reduced Gilead Sciences Inc (GILD, Financial) by 509,284 shares, resulting in a -44.21% decrease in shares and a -0.98% impact on the portfolio. The stock traded at an average price of $103.18 during the quarter and has returned 15.37% over the past 3 months and 12.26% year-to-date.
- Reduced Citigroup Inc (C, Financial) by 473,251 shares, resulting in a -27.42% reduction in shares and a -0.69% impact on the portfolio. The stock traded at an average price of $76.25 during the quarter and has returned -14.06% over the past 3 months and -12.83% year-to-date.
Portfolio Overview
At the first quarter of 2025, Parnassus Value Equity Fund (Trades, Portfolio)'s portfolio included 45 stocks. The top holdings included 3.86% in S&P Global Inc (SPGI, Financial), 3.65% in Deere & Co (DE, Financial), 3.42% in Sysco Corp (SYY, Financial), 3.37% in Bank of America Corp (BAC, Financial), and 3.34% in Verizon Communications Inc (VZ, Financial).
The holdings are mainly concentrated in 9 of the 11 industries: Financial Services, Healthcare, Technology, Industrials, Consumer Cyclical, Communication Services, Real Estate, Consumer Defensive, and Utilities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
