Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index’s 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index’s 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration’s business-friendly policies. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was -19.57%, and its shares gained 51.12% of their value over the last 52 weeks. On March 11, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $190.09 per share with a market capitalization of $893.79 billion.
Parnassus Core Equity Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) shares gained as the chipmaker achieved record high quarterly revenues driven by AI projects. News that the chipmaker is designing an AI server processor for Apple, in addition to custom chips it makes for other technology giants, further bolstered investor enthusiasm.
Broadcom gained on the strength of better-than-expected sales of AI chips and optimism on the revenue-generating potential of its wide-ranging AI initiatives. We continue to see upside in custom AI chips that Broadcom is well positioned to deliver.”
A technician working at a magnified microscope, developing a new integrated circuit.
Broadcom Inc. (NASDAQ:AVGO) is in 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 161 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the fourth quarter compared to 128 in the third quarter. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Broadcom Inc. (NASDAQ:AVGO) and shared Columbia Threadneedle Global Technology Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.