Alaska Air Group (ALK, Financial) reduced the Fund's returns by 333 basis points, as the stock dove 42.8% from $67.75 to our average sales price of $38.70. Alaska is the fifth-largest airline in the country with routes primarily on the West Coast. The company stood out to us because of its fortress balance sheet, cost-efficient fleet, and shareholder-oriented management. Nonetheless, Alaska's stock hit the skids as the coronavirus outbreak engulfed the U.S., resulting in collapsing demand for air travel and a $50 billion bailout of the airline industry. Management took decisive action in response to the crisis, including cutting flights, suspending stock buybacks and the dividend to conserve cash, but it was not enough. We exited our position, since a rebound in passenger demand would be elusive for some time.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) fourth-quarter 2020 commentary.
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