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 Autodesk, Inc. (NASDAQ:ADSK) in its Q3 2024 investor letter. Autodesk, Inc. (NASDAQ:ADSK) offers 3D design, engineering, and entertainment technology solutions. The one-month return of Autodesk, Inc. (NASDAQ:ADSK) was 3.41%, and its shares gained 27.67% of their value over the last 52 weeks. On December 12, 2024, Autodesk, Inc. (NASDAQ:ADSK) stock closed at $309.34 per share with a market capitalization of $66.666 billion.
Parnassus Mid Cap Fund stated the following regarding Autodesk, Inc. (NASDAQ:ADSK) in its Q3 2024 investor letter:
“In Software, we added Autodesk, Inc. (NASDAQ:ADSK) and Cloudflare while exiting Bill.com. We believe Autodesk’s dominant position in architecture, engineering and construction software allows it to increase margins and offer attractive revenue growth. Autodesk is a market-leading vertical software company with the ability to meaningfully improve its margins, while its revenue growth should accelerate as it completes its sales channel re-alignment.”
A software engineer using AutoCAD Civil 3D to create a 3D design in a modern office setting.
Autodesk, Inc. (NASDAQ:ADSK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Autodesk, Inc. (NASDAQ:ADSK) at the end of the third quarter which was 55 in the previous quarter. Autodesk, Inc. (NASDAQ:ADSK) finished the third quarter with strong results, achieving 12% constant currency revenue growth and raising its full-year outlook. While we acknowledge the potential of Autodesk, Inc. (NASDAQ:ADSK) 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 Autodesk, Inc. (NASDAQ:ADSK) and shared the list of best augmented reality stocks to buy. 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.