Cisco Systems (CSCO, Financial) added 113 basis points to the Fund’s return, as its stock appreciated from $39.31 to $46.64 for a total return of 19.7%. The company reported better-than-expected quarterly results despite significant headwinds from COVID-19. Many of Cisco’s customers have paused spending due to the uncertainty, but the company was still able to deliver healthy margins, while their software portfolio benefitted from the accelerated adoption of digital tools. We believe Cisco’s scale and incumbency along with their strong balance sheet will help them emerge stronger from this pandemic.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) second-quarter 2020 commentary.
