Here’s Why Apple (AAPL) is on Detractors’ List of Parnassus Growth Equity Fund

Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here.  In the third quarter, the Fund (Investor Shares) returned 3.29% (net of fees) outperforming the Russell 1000 Growth Index’s 3.19% gain. Stock selection in the Health Care sector primarily drove the portfolio’s outperformance. Also, overweight position and stock selection in the Financials sector buoyed the gains. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Growth Equity Fund highlighted stocks like Apple Inc. (NASDAQ:AAPL), in the third quarter 2024 investor letter. Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 10.06%, and its shares gained 25.16% of their value over the last 52 weeks. On December 10, 2024, Apple Inc. (NASDAQ:AAPL) stock closed at $247.77 per share with a market capitalization of $3.745 trillion.

Parnassus Growth Equity Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:

“Apple Inc. (NASDAQ:AAPL) shares rose during the quarter, making our underweight position a relative detractor. Investors reacted positively to the new iPhone 16 lineup and its advanced features, including generative artificial intelligence, greater durability and increased processing power.”

Evercore ISI Maintains "Outperform" Rating on Apple Inc. (NASDAQ:AAPL), Sees AI Benefits Driving Future Growth

An Apple store displaying the latest in consumer electronics, from smartphones to wearables.

Apple Inc. (NASDAQ:AAPL) is in 9th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the third quarter which was 184 in the previous quarter. In the September quarter Apple Inc. (NASDAQ:AAPL) delivered $94.9 billion in revenues, up 6% from a year ago. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) 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 Apple Inc. (NASDAQ:AAPL) and shared the list of buzzing AI stocks making headlines. 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.