Our top position and biggest winner was global biopharmaceutical company Merck (MRK, Financial). Its stock surged 44.8%, contributing 1.8% to the Fund’s total return. Merck’s steady cash flow and consistent execution made it a defensive haven this year among large capitalization pharmaceutical stocks. We remain confident in the company’s current pipeline and its ability to extend cancer drug Keytruda’s patent protection, HPV vaccine Gardasil’s growth and M&A capabilities. Moreover, Merck trades at a reasonable valuation while offering a healthy 2.5% dividend yield.
From the Parnassus Value Equity Fund (Trades, Portfolio)'s fourth-quarter 2022 commentary.
