Exploring the Strategic Moves of Parnassus Value Equity Fund (Trades, Portfolio) in Q4 2024

Parnassus Value Equity Fund (Trades, Portfolio) recently submitted its N-PORT filing for the fourth quarter of 2024, shedding light on its strategic investment decisions during this period. As part of Jerome Dodson (Trades, Portfolio)’s Parnassus Investments, the fund is known for its fossil-fuel-free and positive workplace investment philosophy, focusing on deeply discounted, out-of-favor stocks with a wide range of expected outcomes. Although Mr. Dodson stepped back from fund management at the end of 2020, Billy Hwan has since taken the helm as the portfolio manager. In mid-2021, Affiliated Managers Group acquired a majority stake in Parnassus, gaining control of the firm. The fund, previously known as the Parnassus Endeavor Fund, was renamed on December 30, 2022. It primarily invests in U.S. large-cap companies with long-term competitive advantages, quality management, and positive ESG performance, while avoiding fossil fuel investments. The fund aims to outperform the S&P 500 Index by purchasing quality stocks at deep discounts, accepting a wide range of outcomes for temporarily undervalued stocks.

Summary of New Buy

Parnassus Value Equity Fund (Trades, Portfolio) added a total of five stocks, among them:

• The most significant addition was Airbnb Inc (ABNB, Financial), with 648,524 shares, accounting for 1.78% of the portfolio and a total value of $85.22 million.
• The second largest addition to the portfolio was Visa Inc (V, Financial), consisting of 250,085 shares, representing approximately 1.65% of the portfolio, with a total value of $79.04 million.
• The third largest addition was AstraZeneca PLC (AZN, Financial), with 1,178,323 shares, accounting for 1.61% of the portfolio and a total value of $77.20 million.

Key Position Increases

Parnassus Value Equity Fund (Trades, Portfolio) also increased stakes in a total of one stock, among them:

• The most notable increase was UnitedHealth Group Inc (UNH, Financial), with an additional 22,709 shares, bringing the total to 211,079 shares. This adjustment represents a significant 12.06% increase in share count, a 0.24% impact on the current portfolio, with a total value of $106.78 million.

Summary of Sold Out

Parnassus Value Equity Fund (Trades, Portfolio) completely exited four holdings in the fourth quarter of 2024, as detailed below:

• Fidelity National Information Services Inc (FIS, Financial): Parnassus Value Equity Fund (Trades, Portfolio) sold all 1,428,387 shares, resulting in a -2.38% impact on the portfolio.
• Nutrien Ltd (NTR, Financial): Parnassus Value Equity Fund (Trades, Portfolio) liquidated all 1,564,307 shares, causing a -1.49% impact on the portfolio.

Key Position Reduces

Parnassus Value Equity Fund (Trades, Portfolio) also reduced positions in eight stocks. The most significant changes include:

• Reduced Oracle Corp (ORCL, Financial) by 435,312 shares, resulting in a -44.73% decrease in shares and a -1.47% impact on the portfolio. The stock traded at an average price of $177.81 during the quarter and has returned -8.66% over the past three months and -4.58% year-to-date.
• Reduced Verizon Communications Inc (VZ, Financial) by 492,006 shares, resulting in a -12.22% reduction in shares and a -0.44% impact on the portfolio. The stock traded at an average price of $42.14 during the quarter and has returned -10.43% over the past three months and -2.03% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, Parnassus Value Equity Fund (Trades, Portfolio)'s portfolio included 45 stocks. The top holdings included 3.53% in S&P Global Inc (SPGI, Financial), 3.31% in $Bank of America Corp(BAC-N)$ (BAC, Financial), 3.25% in Sysco Corp (SYY, Financial), 3.17% in CBRE Group Inc (CBRE, Financial), and 3.08% in Deere & Co (DE, Financial).

The holdings are mainly concentrated in nine of the eleven industries: Financial Services, Healthcare, Technology, Industrials, Consumer Cyclical, Communication Services, Real Estate, Consumer Defensive, and Utilities.

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.