Insight into the Third Quarter Moves of a Leading Value-Oriented Investment Fund
Parnassus Value Equity Fund (Trades, Portfolio), managed by Parnassus Investments, recently disclosed its N-PORT filing for the third quarter of 2024. The fund, known for its commitment to fossil-fuel-free investments and positive workplace environments, focuses on acquiring undervalued, out-of-favor stocks with significant upside potential. Since Jerome Dodson (Trades, Portfolio) stepped back at the end of 2020, Billy Hwan has taken over as the portfolio manager. The fund aims to outperform the S&P 500 by investing in quality U.S. large-cap companies that meet stringent ESG criteria.
Summary of New Buys
Parnassus Value Equity Fund (Trades, Portfolio) expanded its portfolio by adding two new stocks during the quarter:
- UnitedHealth Group Inc (UNH, Financial) was the standout addition with 188,370 shares, making up 2.19% of the portfolio, valued at $110.14 million.
- Amazon.com Inc (AMZN, Financial) also made a significant entry with 503,495 shares, representing about 1.86% of the portfolio, totaling $93.82 million.
Key Position Increases
The fund also increased its stakes in 20 existing holdings:
- Broadcom Inc (AVGO, Financial) saw an addition of 253,770 shares, bringing the total to 589,550 shares. This adjustment increased the share count by 75.58% and impacted the portfolio by 0.87%, with a total value of $101.70 million.
- CBRE Group Inc (CBRE, Financial) increased by 150,082 shares, resulting in a total of 1,156,075 shares. This represents a 14.92% increase in share count, valued at $143.91 million.
Summary of Sold Out Positions
The fund exited positions in two companies during the quarter:
- Charter Communications Inc (CHTR, Financial) was completely sold off with 333,220 shares, impacting the portfolio by -2.04%.
- American Express Co (AXP, Financial) saw all 369,561 shares liquidated, resulting in a -1.75% portfolio impact.
Key Position Reductions
Reductions were made in 13 stocks, with significant cuts in:
- Verizon Communications Inc (VZ, Financial) was reduced by 961,573 shares, a -19.28% decrease, impacting the portfolio by -0.81%. The stock traded at an average price of $41.74 during the quarter.
- Intel Corp (INTC, Financial) saw a reduction of 1,036,015 shares, a -28.17% decrease, impacting the portfolio by -0.66%. The stock traded at an average price of $24.97 during the quarter.
Portfolio Overview
As of the third quarter of 2024, Parnassus Value Equity Fund (Trades, Portfolio)'s portfolio included 44 stocks. The top holdings were:
- 3.59% in Verizon Communications Inc (VZ, Financial)
- 3.49% in S&P Global Inc (SPGI, Financial)
- 3.29% in Oracle Corp (ORCL, Financial)
- 3.27% in D.R. Horton Inc (DHI, Financial)
- 3.16% in Sysco Corp (SYY, Financial)
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
