Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) appreciated 1.86% (net of fees) underperforming the S&P 500 Index’s 4.28% return. The negative stock selection in the Information Technology sector led to the underperformance of the strategy in the quarter, partially offset by its favorable overweight position. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Core Equity Fund highlighted stocks like Nutrien Ltd. (NYSE:NTR), in the Q2 2024 investor letter. Nutrien Ltd. (NYSE:NTR) is a company that offers crop inputs and services. The one-month return of Nutrien Ltd. (NYSE:NTR) was 3.49%, and its shares lost 15.99% of their value over the last 52 weeks. On September 30, 2024, Nutrien Ltd. (NYSE:NTR) stock closed at $48.06 per share with a market capitalization of $23.799 billion.
Parnassus Core Equity Fund stated the following regarding Nutrien Ltd. (NYSE:NTR) in its Q2 2024 investor letter:
“Our Materials exposure also declined with the sale of Nutrien Ltd. (NYSE:NTR), a distributor of agricultural products. Nutrien is grappling with cyclically weak fertilizer prices, which are likely to impact its profitability. Its growth prospects are also curtailed due to reduced capacity expansion. We sold Nutrien and reallocated to higher-conviction stocks in the portfolio.”
Aerial view of a vibrant wheat field, a representation of the fertilizers and crop nutrients this company provides.
Nutrien Ltd. (NYSE:NTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Nutrien Ltd. (NYSE:NTR) at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of Nutrien Ltd. (NYSE:NTR) 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 Nutrien Ltd. (NYSE:NTR) and shared the list of cheap Canadian stocks to invest in. 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.