Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 8.55% (net of fees) outperforming the Russell Midcap Index’s 6.54% return. Stock selection in Health Care sector drove the outperformance of the portfolio while stock selection within Real Estate detracted. The Fund's focus on quality characteristics has benefited from reduced cyclical pressures and company-specific opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Mid Cap Fund highlighted stocks like Trane Technologies plc (NYSE:TT) in the Q3 2024 investor letter. Trane Technologies plc (NYSE:TT) provides solutions for heating, ventilation, air conditioning, and transport refrigeration. The one-month return of Trane Technologies plc (NYSE:TT) was -2.42%, and its shares gained 66.33% of their value over the last 52 weeks. On December 13, 2024, Trane Technologies plc (NYSE:TT) stock closed at $399.36 per share with a market capitalization of $89.866 billion.

Parnassus Mid Cap Fund stated the following regarding Trane Technologies plc (NYSE:TT) in its Q3 2024 investor letter:

"Trane Technologies plc (NYSE:TT), a leading global climate solutions company, provides sustainable HVAC systems for commercial and residential applications. The company benefits from several long-term secular trends, such as global warming and sustainability mandates."

A worker inspecting a newly installed heating unit in a modern home.

rane Technologies plc (NYSE:TT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Trane Technologies plc (NYSE:TT) at the end of the third quarter which was 57 in the previous quarter. While we acknowledge the potential of Trane Technologies plc (NYSE:TT) 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 Trane Technologies plc (NYSE:TT) and shared the list of best European stocks to buy according to hedge funds. Trane Technologies plc (NYSE:TT) contributed to the performance of Aristotle Focus Growth Strategy in Q3 2024, as it exceeded earnings and revenue expectations. In addition, please check out our hedge fund investor letters Q3 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.