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 Natera, Inc. (NASDAQ:NTRA), in the second quarter 2024 investor letter. Natera, Inc. (NASDAQ:NTRA) develops and commercializes molecular testing services. The one-month return of Natera, Inc. (NASDAQ:NTRA) was 7.45%, and its shares gained 180.77% of their value over the last 52 weeks. On September 20, 2024, Natera, Inc. (NASDAQ:NTRA) stock closed at $127.78 per share with a market capitalization of $15.696 billion.
Parnassus Growth Equity Fund stated the following regarding Natera, Inc. (NASDAQ:NTRA) in its Q2 2024 investor letter:
“Natera, Inc. (NASDAQ:NTRA), an industry leader in genetic testing, reported favorable financial results for the first quarter of 2024. The company reached cash flow breakeven early and raised full-year guidance. We are optimistic that upcoming catalysts will continue to fuel growth in its women’s health and oncology businesses.”
A modern pharmaceutical laboratory with research scientists working at their desks.
Natera, Inc. (NASDAQ:NTRA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Natera, Inc. (NASDAQ:NTRA) at the end of the second quarter which was 58 in the previous quarter. Natera, Inc.’s (NASDAQ:NTRA) second quarter revenues were up 12% from Q1 2024 and up 58% from Q2 2023. While we acknowledge the potential of Natera, Inc. (NASDAQ:NTRA) 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 Natera, Inc. (NASDAQ:NTRA) and shared Columbia Acorn Fund’s views of the company. Brown Capital Management Mid Company Fund established a position in Natera, Inc. (NASDAQ:NTRA) during 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.