Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index’s 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index’s 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration’s business-friendly policies. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized stocks such as Mondelez International, Inc. (NASDAQ:MDLZ). Mondelez International, Inc. (NASDAQ:MDLZ) manufactures and markets snack food and beverage products. The one-month return of Mondelez International, Inc. (NASDAQ:MDLZ) was 6.25%, and its shares lost 8.43% of their value over the last 52 weeks. On March 12, 2025, Mondelez International, Inc. (NASDAQ:MDLZ) stock closed at $64.98 per share with a market capitalization of $84.05 billion.

Parnassus Core Equity Fund stated the following regarding Mondelez International, Inc. (NASDAQ:MDLZ) in its Q4 2024 investor letter:

"We sold two positions in the Consumer Staples sector during the quarter, Sysco and Mondelez International, Inc. (NASDAQ:MDLZ). Sysco has not responded convincingly to its industry’s competitive dynamics, while Mondelez faces idiosyncratic challenges to its financial outlook. Mondelez remains a quality company, though challenges such as higher cocoa prices are impacting its financial outlook. We reallocated capital to other holdings that offer superior return potential and similar defensive characteristics."

A colourful array of products like candies, chocolates and gums on a supermarket shelf.

Mondelez International, Inc. (NASDAQ:MDLZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Mondelez International, Inc. (NASDAQ:MDLZ) at the end of the fourth quarter which was 51 in the previous quarter. While we acknowledge the potential of Mondelez International, Inc. (NASDAQ:MDLZ) 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 Mondelez International, Inc. (NASDAQ:MDLZ) and shared the list of some of the best performing stocks that pay dividend. In addition, please check out our hedge fund investor letters Q4 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.