Parnassus Investments, an investment management company, released the “Parnassus Value 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 -3.81% (net of fees) underperforming the Russell 1000 Value Index’s -2.17% return. Stock selection in the Health Care sector drove most of the portfolio’s underperformance. The firm believes the Fund is well positioned for future returns with AI-related investments in Information Technology complemented by holdings that should benefit from improved performance across other sectors. If investor uncertainty increases, it anticipates finding more bargain opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Value Equity Fund highlighted stocks like Brookfield Renewable Corporation (NYSE:BEPC), in the second quarter 2024 investor letter. Brookfield Renewable Corporation (NYSE:BEPC) owns and operates renewable power and sustainable solution assets. The one-month return of Brookfield Renewable Corporation (NYSE:BEPC) was 11.32%, and its shares gained 29.03% of their value over the last 52 weeks. On September 25, 2024, Brookfield Renewable Corporation (NYSE:BEPC) stock closed at $31.87 per share with a market capitalization of $5.756 billion.
Parnassus Value Equity Fund stated the following regarding Brookfield Renewable Corporation (NYSE:BEPC) in its Q2 2024 investor letter:
“Brookfield Renewable Corporation (NYSE:BEPC) shares climbed sharply after the firm announced a $10 billion agreement with Microsoft to expand its renewable power capacity. The agreement is the largest corporate clean energy deal to date. Focusing largely on wind and solar, the buildout will seek to address rising electricity demand from data centers.”
A stunning aerial view of a mountainside with a hydroelectric power station in the foreground.
Brookfield Renewable Corporation (NYSE:BEPC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Brookfield Renewable Corporation (NYSE:BEPC) 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 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.