Shares of transportation provider FedEx (FDX, Financial) contributed 396 basis points to the Fund's performance, as its stock soared from our cost of $148.83 to $259.62, for a total return of 70.0%. Earnings in FedEx's ground shipping segment jumped as the pandemic-induced surge in e-commerce led to a sharp acceleration in parcel shipments. FedEx's air cargo profits were also boosted by the pandemic, as the reduction in passenger air travel sharply reduced overall cargo capacity, and profits surged as FedEx's planes filled, and pricing rose. We believe these pandemic-induced effects will last, as we expect more consumers to shift purchases online while global air cargo capacity should remain constrained for several years by reduced international travel.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) fourth-quarter 2020 commentary.
