Toy manufacturer Mattel (NASDAQ:MAT) added 172 basis points to the Fund’s performance, as its stock rose from $9.99 to $13.00, posting a total return of 30.1%. Sales during the all-important holiday season were better than expected, and Mattel regained its position as the #1 global toy manufacturer in 2018, according to market researcher NPD Group. Management’s restructuring plan is also ahead of schedule, and profits increased significantly as a result. The shares soared to a high of $17.07 in February, as investors cheered the upbeat quarterly results. We were reminded that the road ahead remains bumpy, however, as the stock plunged after Mattel’s 2019 financial guidance didn’t meet investors’ recently elevated expectations. We were pleased by the green shoots that started to show this quarter, and we believe the bumpy ride will be well worth it in the end.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund first-quarter 2019 shareholder commentary.
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