Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) returned 3.74% (net of fees) underperforming the Russell 1000 Growth Index’s 8.33%. Stock selection in the Information Technology sector primarily drove the portfolio’s underperformance. Also, overweight position and stock selection in the Financials sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Growth Equity Fund highlighted stocks like Procore Technologies, Inc. (NYSE:PCOR) in the second quarter 2024 investor letter. Based in Carpinteria, California, Procore Technologies, Inc. (NYSE:PCOR) provides a cloud-based construction management platform and related software products. The one-month return of Procore Technologies, Inc. (NYSE:PCOR) was -3.87%, and its shares lost 7.95% of their value over the last 52 weeks. On September 20, 2024, Procore Technologies, Inc. (NYSE:PCOR) stock closed at $59.49 per share with a market capitalization of $8.756 billion.
Parnassus Growth Equity Fund stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q2 2024 investor letter:
“Procore Technologies, Inc. (NYSE:PCOR) declined, even though the construction management software company reported solid earnings. Investors are concerned about weak demand among Procore’s client base and across industrials. We believe this weakness is temporary and still like the long-term growth prospects and digital transformation opportunity for the industry.”
A computer monitor displaying cloud-based construction management platform software.
Procore Technologies, Inc. (NYSE:PCOR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Procore Technologies, Inc. (NYSE:PCOR) at the end of the second quarter which was 45 in the previous quarter. The second-quarter revenue of Procore Technologies, Inc. (NYSE:PCOR) was $284 million, which represents a 24% increase year over year. While we acknowledge the potential of Procore Technologies, Inc. (NYSE:PCOR) 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 Procore Technologies, Inc. (NYSE:PCOR) and shared the list of best small-cap tech stocks to buy. Baron Discovery Fund initiated a position in Procore Technologies, Inc. (NYSE:PCOR) during Q2 2024. In addition, please check out our hedge fund investor letters Q2 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.