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 Danaher Corporation (NYSE:DHR) in the Q3 2024 investor letter. Danaher Corporation (NYSE:DHR) manufactures, and markets professional, medical, industrial, and commercial products and services. The one-month return of Danaher Corporation (NYSE:DHR) was -2.98%, and its shares gained 3.30% of their value over the last 52 weeks. On December 10, 2024, Danaher Corporation (NYSE:DHR) stock closed at $234.34 per share with a market capitalization of $170.392 billion.
Parnassus Growth Equity Fund stated the following regarding Danaher Corporation (NYSE:DHR) in its Q3 2024 investor letter:
“In Health Care, we continue to favor catalyst-rich names across subsectors, including medical devices, biopharma, life science tools and payors companies. We chose to consolidate our exposure in the Life Sciences Tools and Services industry by selling Danaher Corporation (NYSE:DHR) while maintaining our position in Thermo Fisher Scientific.
Our position in Danaher has been profitable, and we have opted to consolidate our life science tools bet in Thermo Fisher Scientific. Danaher has rerated since we initiated our position, and we believe the anticipated 2025 bioprocessing recovery is largely priced in.”
A healthcare professional in a lab coat holding a microscope and looking at a slide under the lens.
Danaher Corporation (NYSE:DHR) is in 24th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 98 hedge fund portfolios held Danaher Corporation (NYSE:DHR) at the end of the third quarter which was 83 in the previous quarter. The third quarter sales of Danaher Corporation (NYSE:DHR) were $5.8 billion, representing 0.5% core revenue growth. While we acknowledge the potential of Danaher Corporation (NYSE:DHR) 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 Danaher Corporation (NYSE:DHR) and shared Madison Sustainable Equity 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.