Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 8.55% (net of fees) outperforming the Russell Midcap Index’s 6.54% return. Stock selection in Health Care sector drove the outperformance of the portfolio while stock selection within Real Estate detracted. The Fund’s focus on quality characteristics has benefited from reduced cyclical pressures and company-specific opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Mid Cap Fund highlighted stocks like Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter. Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was -13.10%, and its shares gained 75.26% of their value over the last 52 weeks. On December 12, 2024, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $173.72 per share with a market capitalization of $14.256 billion.
Parnassus Mid Cap Fund stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter:
“Guidewire Software, Inc. (NYSE:GWRE), the leading software provider for property and casualty insurers, is reaping the benefits of its cloud migration efforts as it continues to penetrate the market with its comprehensive platform of claims, billing and policy management solutions.”
An insurance adjuster reviewing images and paperwork to process a claim.
Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the third quarter which was 43 in the previous quarter. Total revenue of Guidewire Software, Inc. (NYSE:GWRE) was $263 million in the fiscal first quarter of 2025, which was above the high end of guidance and up 27% year-over-year. While we acknowledge the potential of Guidewire Software, Inc. (NYSE:GWRE) 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 Guidewire Software, Inc. (NYSE:GWRE) and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.