Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 8.55% (net of fees) outperforming the Russell Midcap Index’s 6.54% return. Stock selection in Health Care sector drove the outperformance of the portfolio while stock selection within Real Estate detracted. The Fund’s focus on quality characteristics has benefited from reduced cyclical pressures and company-specific opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Mid Cap Fund highlighted stocks like Teradyne, Inc. (NASDAQ:TER), in the third quarter 2024 investor letter. Teradyne, Inc. (NASDAQ:TER) manufactures and distributes automated test systems and robotics products. The one-month return of Teradyne, Inc. (NASDAQ:TER) was 18.31%, and its shares gained 17.04% of their value over the last 52 weeks. On December 13, 2024, Teradyne, Inc. (NASDAQ:TER) stock closed at $123.22 per share with a market capitalization of $20.07 billion.
Parnassus Mid Cap Fund stated the following regarding Teradyne, Inc. (NASDAQ:TER) in its Q3 2024 investor letter:
“Teradyne, Inc. (NASDAQ:TER), a supplier of automated test equipment for semiconductors, was affected by a broad sell-off in semiconductor-related stocks. We see some “green shoots” in demand and believe Teradyne is well positioned as artificial intelligence moves to smartphones and PCs.”
A robotic arm holding an optical component as it is being manufactured in a high-tech facility.
Teradyne, Inc. (NASDAQ:TER) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Teradyne, Inc. (NASDAQ:TER) at the end of the third quarter which was 41 in the previous quarter. In the third quarter, Teradyne, Inc.’s (NASDAQ:TER) sales totaled $737 million, which was at the top end of projected guidance. While we acknowledge the potential of Teradyne, Inc. (NASDAQ:TER) 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 Teradyne, Inc. (NASDAQ:TER) and shared TimesSquare Capital U.S. Focus Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.