FedEx (FDX, Financial) was our biggest loser this quarter. Its shares plummeted -34.2% and detracted -0.7%* from the Fund’s return. Package volumes declined significantly, particularly in the company’s Express segment, due to the economic slowdown in Asia and service challenges in Europe. Additionally, fears of a recession are weighing on investor sentiment, resulting in the stock trading near a historic low valuation. We maintained our position since we believe that expectations are low, and that FedEx has a large opportunity to improve efficiency and margins over the next few years.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) third-quarter 2022 commentary.
