Insight into the Investment Shifts of a Renowned Value Investor

Jerome Dodson (Trades, Portfolio), the founder and chairman of Parnassus Investments, has made significant portfolio adjustments in the third quarter of 2024. Known for his ethical investment philosophy, Dodson focuses on mid-cap companies with strong competitive advantages and sustainable practices. His investment decisions this quarter reflect a strategic approach to capitalizing on market dynamics while adhering to his commitment to environmental, social, and governance (ESG) criteria.

Summary of New Buys

Jerome Dodson (Trades, Portfolio) added a total of three stocks to his portfolio. Notably, he invested in:

• JB Hunt Transport Services Inc (NASDAQ:JBHT), purchasing 123,265 shares, which now represent 2.43% of the portfolio, valued at $21.24 million.
• Autodesk Inc (NASDAQ:ADSK), acquiring 68,094 shares, making up approximately 2.15% of the portfolio, with a total value of $18.76 million.
• Cloudflare Inc (NYSE:NET), with 130,793 shares, accounting for 1.21% of the portfolio, totaling $10.58 million.

Key Position Increases

Dodson also increased his stakes in seven stocks, with significant additions to:

• Atlassian Corp (NASDAQ:TEAM), adding 38,630 shares, bringing the total to 114,584 shares. This adjustment represents a 50.86% increase in share count, impacting the portfolio by 0.7%, and valued at $18.20 million.
• West Pharmaceutical Services Inc (NYSE:WST), with an additional 20,376 shares, bringing the total to 58,389. This represents a 53.6% increase in share count, valued at $17.53 million.

Summary of Sold Out Positions

In a significant portfolio adjustment, Jerome Dodson (Trades, Portfolio) exited four holdings in the third quarter of 2024, including:

• IQVIA Holdings Inc (NYSE:IQV), selling all 83,124 shares, impacting the portfolio by -2.13%.
• BILL Holdings Inc (NYSE:BILL), liquidating all 317,035 shares, causing a -2.02% impact on the portfolio.

Key Position Reductions

Dodson also reduced his positions in six stocks, with notable reductions in:

• Cintas Corp (NASDAQ:CTAS), reducing holdings by 58,705 shares, resulting in a -47.76% decrease and a -1.24% portfolio impact. The stock traded at an average price of $192.98 during the quarter and has returned 15.43% over the past three months and 37.67% year-to-date.
• CoStar Group Inc (NASDAQ:CSGP), cutting back by 125,810 shares, a -36.13% reduction, impacting the portfolio by -1.13%. The stock's average trading price was $75.84 during the quarter, with a 4.16% return over the past three months and a -14.37% return year-to-date.

Portfolio Overview

As of the third quarter of 2024, Jerome Dodson (Trades, Portfolio)'s portfolio comprised 39 stocks. The top holdings included 6.29% in Guidewire Software Inc (NYSE:GWRE), 4.96% in Equifax Inc (NYSE:EFX), 3.99% in Trane Technologies PLC (NYSE:TT), 3.42% in Teradyne Inc (NASDAQ:TER), and 3.39% in MercadoLibre Inc (NASDAQ:MELI). The holdings are mainly concentrated in seven industries: Technology, Industrials, Healthcare, Consumer Cyclical, Financial Services, Basic Materials, and Real Estate.

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.

This article first appeared on GuruFocus.