Independent investment management company Parnassus Investments was founded by Jerome Dodson (Trades, Portfolio) in 1984. The company's Parnassus Fund sold shares of the following companies during the recently-ended third quarter of 2019.
Cognizant Technology Solutions Corp
Parnassus Investments closed its Cognizant Technology Solutions Corp. (CTSH) position. The portfolio was impacted by -4.26%.
The IT services provider has a market cap of $33.42 billion and an enterprise value of $32.04 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 18.95% and return on assets of 13.37% are outperforming 81% of companies in the application software industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 1.85 is below the industry median of 2.51.
The largest guru shareholder of the company is Dodge & Cox with 3.12% of outstanding shares, followed by Al Gore (Trades, Portfolio) with 1.89% and Richard Pzena (Trades, Portfolio)’s Pzena Investment Management with 1.34%.
Alliance Data Systems Corp
The investor trimmed its Alliance Data Systems Corp. (ADS) holding by 51.03%. The portfolio was impacted by -2.35%.
The company has a market cap of $5.47 billion and an enterprise value of $14.31 billion.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 38.22% and return on assets of 2.91% are outperforming 57% of companies in the Credit Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.31 is above the industry median of 0.18.
The largest guru shareholder of the company is Jeff Ubben (Trades, Portfolio)’s ValueAct Holdings LP with 6.94% of outstanding shares, followed by the Parnassus Endeavor Fund (Trades, Portfolio) with 2.03% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 1.46%.
Cadence Design Systems Inc.
The Cadence Design Systems Inc. (CDNS) position was reduced by 42%, impacting the portfolio by -1.87%.
The maintenance services provider has a market cap of $18.26 billion and an enterprise value of $18.04 billion
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 31.35% and return on assets of 17.02% are underperforming 92% of companies in the Application Software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.5 is below the industry median of 2.51.
The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.59% of outstanding shares, followed by Dodge & Cox with 0.15% and the Parnassus Fund with 0.12%.
Starbucks Corp
The guru reduced the Starbucks Corp. (SBUX) position by 50.68%. The trade had an impact of -1.84% on the portfolio.
The company, which sells coffee, espresso, teas and cold blended beverages, has a market cap of $99.57 billion and an enterprise value of $105.89 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on assets of 17.79% is outperforming 89% of companies in the restaurants industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.43 is below the industry median of 0.47.
The Simons’ firm is the company’s largest guru shareholder with 0.76% of outstanding shares, followed by Bill Ackman (Trades, Portfolio) with 0.75% and Pioneer Investments (Trades, Portfolio) with 0.15%.
Motorola Solutions Inc.
The guru reduced its Motorola Solutions Inc. (MSI) holding by 20.51%. The portfolio was impacted by -1.05%.
The company, which manufactures devices such as two-way portable radios, has a market cap of $27.19 billion and an enterprise value of $32.22 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on assets of 10.87% is outperforming 87% of companies in the Communication Equipment industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is below the industry median of 1.51.
The largest guru shareholder of the company is Philippe Laffont (Trades, Portfolio) with 1.03% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.18% and Pioneer Investments (Trades, Portfolio) with 0.18%.
Signature Bank
The investor curbed his Signature Bank (SBNY) stake by 29.96%. The portfolio was impacted by -0.87%.
The company has a market cap of $6.63 billion and an enterprise value of $5.03 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 13.78% and return on assets of 1.29% are outperforming 71% of companies in the Banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.06 is below the industry median of 1.19.
First Pacific Advisors (Trades, Portfolio) is the company’s largest guru shareholder with 1.49% of outstanding shares, followed by Steven Romick (Trades, Portfolio)’s FPA Crescent Fund with 1.34%.
Thomson Reuters Corp.Â
The guru reduced its Thomson Reuters Corp. (TRI) holding by 13.51%. The portfolio was impacted by -0.60%.
The company has a market cap of $33.62 billion and an enterprise value of $34.70 billion.
GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 39.4% and return on assets of 19.4% are outperforming 94% of companies in the brokers and exchanges industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.67 is below the industry median of 2.4.
The largest guru shareholder of the company is Pioneer Investments (Trades, Portfolio) with 0.12% of outstanding shares, followed by the Parnassus Fund with 0.11% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.04%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 6 High-Yielding Dividend Stocks
- 6 Undervalued Stocks With High Business Predictability
- 6 Underperforming Stocks in Gurus' Portfolios
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
