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 Workday, Inc. (NASDAQ:WDAY), in the second quarter 2024 investor letter. Workday, Inc. (NASDAQ:WDAY) offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was -4.64%, and its shares gained 7.21% of their value over the last 52 weeks. On September 20, 2024, Workday, Inc. (NASDAQ:WDAY) stock closed at $248.29 per share with a market capitalization of $65.797 billion.
Parnassus Growth Equity Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q2 2024 investor letter:
“Within Information Technology, we added Workday, Inc. (NASDAQ:WDAY) and funded it with the sale of Palo Alto Networks. Workday is a category leader serving a large, growing enterprise software market. Despite near-term macro uncertainty across software, we believe Workday is well positioned long term, and key initiatives such as its partnership with other service providers can drive incremental growth over the next few years.”
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Workday, Inc. (NASDAQ:WDAY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the second quarter which was 83 in the previous quarter. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) 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 Workday, Inc. (NASDAQ:WDAY) and shared stock picks that could change your investment game according to Jim Cramer. Workday, Inc. (NASDAQ:WDAY) detracted from the performance of Baron Technology Fund in Q2 2o24. 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.