Insightful Analysis of Parnassus Value Equity Fund (Trades, Portfolio)'s Latest N-PORT Filing
The Parnassus Value Equity Fund (Trades, Portfolio), a segment of Jerome Dodson (Trades, Portfolio)'s Parnassus Investments, is known for its unique investment approach that combines value investing with environmental, social, and governance (ESG) criteria. The fund, which was previously known as the Parnassus Endeavor Fund, underwent a name change on December 30, 2022, and is now managed by Billy Hwan after Dodson stepped back at the end of 2020. With a focus on U.S. large-cap companies that exhibit long-term competitive advantages, quality management, and positive ESG performance, the fund avoids fossil fuels and prioritizes companies with outstanding workplaces. The Parnassus Value Equity Fund (Trades, Portfolio) aims to outperform the S&P 500 Index by investing in quality companies at discounted prices, accepting a wide range of outcomes for stocks they believe are undervalued only temporarily.
Summary of New Buys
Parnassus Value Equity Fund (Trades, Portfolio) expanded its portfolio with 5 new stocks in the third quarter of 2023. Noteworthy additions include:
- Bio-Rad Laboratories Inc (BIO, Financial), with 220,791 shares, making up 1.8% of the portfolio and valued at $79.14 million.
- The Walt Disney Co (DIS, Financial), comprising 852,784 shares, or approximately 1.57% of the portfolio, with a total value of $69.12 million.
- The Estee Lauder Companies Inc (EL, Financial), with 441,407 shares, accounting for 1.45% of the portfolio and valued at $63.81 million.
Key Position Increases
The fund also raised its stakes in 7 stocks, with significant increases in:
- Verizon Communications Inc (VZ, Financial), adding 1,435,501 shares for a total of 4,956,916 shares, marking a 40.76% increase in share count and a 1.06% impact on the current portfolio, valued at $160.65 million.
- Intel Corp (INTC, Financial), with an additional 713,270 shares, bringing the total to 3,492,364 shares, a 25.67% increase in share count, valued at $124.15 million.
Summary of Sold Out Positions
The fund completely exited 5 holdings in the third quarter of 2023, including:
- Merck & Co Inc (MRK, Financial), selling all 1,337,970 shares, impacting the portfolio by -3.33%.
- Target Corp (TGT, Financial), liquidating all 725,358 shares, with a -2.06% impact on the portfolio.
Key Position Reductions
Reductions were made in 6 stocks, with the most significant being:
- FedEx Corp (FDX, Financial), reduced by 158,475 shares, a -34.47% decrease in shares and a -0.85% impact on the portfolio. The stock traded at an average price of $259.97 during the quarter and has returned 5.86% over the past 3 months and -0.89% year-to-date.
- Cisco Systems Inc (CSCO, Financial), reduced by 501,014 shares, a -27.45% reduction in shares and a -0.56% impact on the portfolio. The stock traded at an average price of $53.95 during the quarter and has returned -0.12% over the past 3 months and 3.20% year-to-date.
Portfolio Overview
As of the third quarter of 2023, Parnassus Value Equity Fund (Trades, Portfolio)'s portfolio consisted of 46 stocks. The top holdings included 4% in Verizon Communications Inc (VZ, Financial), 3.77% in Intel Corp (INTC, Financial), 3.31% in Bank of America Corp (BAC, Financial), 3.23% in Progressive Corp (PGR, Financial), and 3.12% in Micron Technology Inc (MU, Financial). The fund's investments are mainly concentrated across 10 industries, covering Financial Services, Technology, Healthcare, Industrials, Communication Services, Consumer Cyclical, Consumer Defensive, Real Estate, Utilities, and Basic Materials.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
