Our biggest loser was Western Digital (WDC, Financial), a memory semiconductor company. Its stock sank -51.6% subtracting -1.5%* from the Fund’s total return. Rapid decline in demand for consumer electronics post COVID-19 and inventory buildup at customers significantly depressed pricing for memory chips. We increased our position, as we believe that the industry glut will turn to shortage and lift pricing once inventories have been depleted and demand growth returns. The company is undervalued and stands to benefit if the trend of industry consolidation continues.
From the Parnassus Value Equity Fund (Trades, Portfolio)'s fourth-quarter 2022 commentary.
