Qualcomm (QCOM, Financial), the leading manufacturer of mobile phone chips, contributed 141 basis points to the Fund’s performance, as the stock soared from $56.91 to $88.23 for a total return of 60.7%. The stock saw its biggest one-day jump in nearly 20 years after Qualcomm reached an agreement with Apple to settle all litigation between the two companies worldwide. The years-long dispute centered around what royalties Apple should pay for the chip that powers the Apple iPhone. Ultimately, Apple paid Qualcomm for the chips it received, and further agreed to long-term license and supply agreements. Though Qualcomm’s victory was later tempered by antitrust rulings in the US and EU, we applaud management’s commitment to R&D, and believe the stock has more upside in the years ahead.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) fourth-quarter 2019 commentary.
