Insightful Analysis of Parnassus Value Equity Fund (Trades, Portfolio)'s Latest 13F Filings
Parnassus Value Equity Fund (Trades, Portfolio), a segment of Jerome Dodson (Trades, Portfolio)'s Parnassus Investments, is known for its unique investment approach that combines value investing with environmental, social, and governance (ESG) criteria. The fund, now under the stewardship of Billy Hwan after Dodson's retirement and following Affiliated Managers Group's majority stake acquisition, focuses on U.S. large-cap companies that are not only undervalued but also boast strong competitive advantages, quality management, and positive workplace environments. The recent name change from Parnassus Endeavor Fund to Parnassus Value Equity Fund (Trades, Portfolio) reflects its commitment to value equity, with a clear avoidance of fossil fuel investments.
Summary of New Buys
The Parnassus Value Equity Fund (Trades, Portfolio) has expanded its portfolio with three new stocks in the fourth quarter of 2023. The additions are as follows:
- Nutrien Ltd (NTR, Financial) is the standout new entry with 1,564,307 shares, making up 1.8% of the portfolio and valued at $88.12 million.
- Taiwan Semiconductor Manufacturing Co Ltd (TSM, Financial) follows with 476,163 shares, representing 1.01% of the portfolio and a total value of $49.52 million.
- CBRE Group Inc (CBRE, Financial) rounds out the top three, holding 493,864 shares, accounting for 0.94% of the portfolio and valued at $45.97 million.
Key Position Increases
The fund also bolstered its positions in 13 stocks, with the most significant increases in:
- The Cigna Group (CI, Financial), where an additional 191,694 shares were purchased, bringing the total to 353,497 shares. This represents a 118.47% increase in share count and a 1.17% impact on the current portfolio, valued at $105.85 million.
- Deere & Co (DE, Financial) saw an addition of 60,840 shares, resulting in a total of 348,570 shares and a 21.14% increase in share count, valued at $139.38 million.
Summary of Sold Out Positions
The fund exited six positions entirely in the fourth quarter of 2023, including:
- Capital One Financial Corp (COF, Financial), where all 700,000 shares were sold, impacting the portfolio by -1.54%.
- Moderna Inc (MRNA, Financial), with a complete liquidation of 644,208 shares, causing a -1.51% impact on the portfolio.
Key Position Reductions
Reductions were made in four stocks, with the most notable being:
- Western Digital Corp (WDC, Financial), which saw a reduction of 570,971 shares, a -28.75% decrease, and a -0.59% portfolio impact. The stock traded at an average price of $46.31 during the quarter and has returned 38.08% over the past three months and 10.23% year-to-date.
- Mastercard Inc (MA, Financial) was reduced by 34,231 shares, a -11.41% decrease, and a -0.31% portfolio impact. The stock's average trading price was $401.73 during the quarter, with a 14.51% return over the past three months and a 3.01% year-to-date return.
Portfolio Overview
As of the fourth quarter of 2023, the Parnassus Value Equity Fund (Trades, Portfolio)'s portfolio comprised 43 stocks. The top holdings included 4% in Verizon Communications Inc (VZ, Financial), 3.77% in Intel Corp (INTC, Financial), 3.31% in Bank of America Corp (BAC, Financial), 3.23% in Progressive Corp (PGR, Financial), and 3.12% in Micron Technology Inc (MU, Financial). The fund's investments are primarily concentrated across 10 industries, spanning Financial Services, Technology, Healthcare, Industrials, Communication Services, Consumer Cyclical, Real Estate, Consumer Defensive, Basic Materials, 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.
