Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) declined -5.80% (net of fees) underperforming the Russell Midcap Index’s -3.35% return. Stock selection drove the underperformance of the portfolio. The portfolio’s strong holdings can mitigate market downturns and capitalize on growth opportunities as cyclical pressures decrease and long-term trends prevail. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Mid Cap Fund highlighted stocks like CNH Industrial N.V. (NYSE:CNH) in its Q2 2024 investor letter. CNH Industrial N.V. (NYSE:CNH), is an equipment and services company, that engages in the design, production, marketing, sale, and financing of agricultural and construction equipment. The one-month return of CNH Industrial N.V. (NYSE:CNH) was 6.56%, and its shares lost 25.63% of their value over the last 52 weeks. On September 6, 2024, CNH Industrial N.V. (NYSE:CNH) stock closed at $10.07 per share with a market capitalization of $12.626 billion.
Parnassus Mid Cap Fund stated the following regarding CNH Industrial N.V. (NYSE:CNH) in its Q2 2024 investor letter:
“Within industrials, we exited CNH Industrial N.V. (NYSE:CNH) following the CEO’s surprise resignation. We think the recent unexpected departure of CEO Scott Wine creates significant risk to our thesis that CNH Industrial will be able to execute on its operational improvement plan.”
A tractor plowing a field in the warm golden light of a setting sun.
CNH Industrial N.V. (NYSE:CNH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held CNH Industrial N.V. (NYSE:CNH) at the end of the second quarter which was 31 in the previous quarter. In the second quarter the CNH Industrial N.V.’s (NYSE:CNH) consolidated revenues were down 16% and industrial net sales were down 19%. While we acknowledge the potential of CNH Industrial N.V. (NYSE:CNH) 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 CNH Industrial N.V. (NYSE:CNH) and shared Longleaf Partners Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.