Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) returned 3.74% (net of fees) underperforming the Russell 1000 Growth Index’s 8.33%. Stock selection in the Information Technology sector primarily drove the portfolio’s underperformance. Also, overweight position and stock selection in the Financials sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Growth Equity Fund highlighted stocks like Salesforce, Inc. (NYSE:CRM), in the second quarter 2024 investor letter. Salesforce, Inc. (NYSE:CRM) offers Customer Relationship Management (CRM) technology that brings companies and customers together. The one-month return of Salesforce, Inc. (NYSE:CRM) was 0.57%, and its shares gained 29.30% of their value over the last 52 weeks. On September 20, 2024, Salesforce, Inc. (NYSE:CRM) stock closed at $266.80 per share with a market capitalization of $255.061 billion.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2024 investor letter:
“Salesforce, Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”
A team of software developers gathered around a monitor discussing a new CRM platform.
Salesforce, Inc. (NYSE:CRM) is in 8th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 117 hedge fund portfolios held Salesforce, Inc. (NYSE:CRM) at the end of the second quarter which was 154 in the previous quarter. In the fiscal second quarter, Salesforce, Inc. (NYSE:CRM) delivered $9.33 billion in revenue, an increase of 8% year over year. While we acknowledge the potential of Salesforce, Inc. (NYSE:CRM) 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 Salesforce, Inc. (NYSE:CRM) and shared stock picks that could change your investment game according to Jim Cramer. Salesforce, Inc. (NYSE:CRM) detracted from the performance of Ithaka US Growth Strategy in Q2 2024. 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.