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 Sysco Corporation (NYSE:SYY). Sysco Corporation (NYSE:SYY) markets and distributes various food and related products to the food service or food-away-from-home industry. The one-month return of Sysco Corporation (NYSE:SYY) was 2.46%, and its shares lost 7.98% of their value over the last 52 weeks. On March 12, 2025, Sysco Corporation (NYSE:SYY) stock closed at $73.64 per share with a market capitalization of $36.46 billion.
Parnassus Core Equity Fund stated the following regarding Sysco Corporation (NYSE:SYY) in its Q4 2024 investor letter:
“We sold two positions in the Consumer Staples sector during the quarter, Sysco Corporation (NYSE:SYY) and Mondelez International. Sysco has not responded convincingly to its industry’s competitive dynamics. Sysco continues to operate in a challenging competitive environment. It has not yet shown signs of improved competitiveness, reducing its resiliency in times of economic downturns. We swapped our position in Sysco for Ferguson.”
A butcher shop showcasing fresh meats and seafood for customers.
Sysco Corporation (NYSE:SYY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Sysco Corporation (NYSE:SYY) at the end of the fourth quarter which was 32 in the previous quarter. Sysco Corporation (NYSE:SYY) delivered over $20 billions of total revenue in the fiscal second quarter of 2025, a growth of 4.5% versus fiscal 2024 Q2. While we acknowledge the potential of Sysco Corporation (NYSE:SYY) 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 Sysco Corporation (NYSE:SYY) and shared the list of best alternative meat stocks to buy. 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.