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 Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -1.96%, and its shares gained 24.57% of their value over the last 52 weeks. On September 20, 2024, Alphabet Inc. (NASDAQ:GOOG) stock closed at $164.64 per share with a market capitalization of $2.019 trillion.
Parnassus Growth Equity Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2024 investor letter:
“Alphabet Inc.’s (NASDAQ:GOOG) stock rose on the strength of robust first-quarter revenue growth underpinned by noteworthy gains in search advertising, YouTube advertising and the cloud business. Signs that the company is accelerating its development of AI solutions buoyed investor optimism.”
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter which was 165 in the previous quarter. In the first quarter, Alphabet Inc. (NASDAQ:GOOG) generated $80.5 billion in revenues, up 15% year-over-year (see the details here). While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared the AI news and analyst ratings that you should not miss. 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.