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 Workday, Inc. (NASDAQ:WDAY). Workday, Inc. (NASDAQ:WDAY) is a company that offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was -6.30%, and its shares lost 10.40% of their value over the last 52 weeks. On March 12, 2025, Workday, Inc. (NASDAQ:WDAY) stock closed at $241.67 per share with a market capitalization of $64.62 billion.

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

"We also added several new positions, including two in Information Technology: Workday, Inc. (NASDAQ:WDAY), a category leader for enterprise cloud applications for finance and human resources. We believe Workday’s product stickiness and key initiatives such as its partnership with other service providers position the company well for incremental growth over the next few years."

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Workday, Inc. (NASDAQ:WDAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the fourth quarter which was 84 in the previous quarter. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) 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 Workday, Inc. (NASDAQ:WDAY) and shared the list of best stocks to buy according to Eagle Capital Management. 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.