Parnassus Investments, an investment management company, released the “Parnassus Value 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 7.28% (net of fees) underperforming the Russell 1000 Value Index’s 9.43% return. The Information Technology sector was the largest detractor, due to both stock selection and an overweight position. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Value Equity Fund highlighted stocks like American Express Company (NYSE:AXP) in the Q3 2024 investor letter. American Express Company (NYSE:AXP) operates as an integrated payments company. The one-month return of American Express Company (NYSE:AXP) was 6.31%, and its shares gained 63.43% of their value over the last 52 weeks. On December 16, 2024, American Express Company (NYSE:AXP) stock closed at $303.57 per share with a market capitalization of $213.848 billion.
Parnassus Value Equity Fund stated the following regarding American Express Company (NYSE:AXP) in its Q3 2024 investor letter:
“The Fund’s overweights in the Communication Services and Financials sectors decreased due to the sale of Charter Communications and American Express Company (NYSE:AXP), respectively. We sold American Express at a profit after its stock reached full valuation. While American Express has performed well this year, its risk/reward profile is less appealing now as the company is fairly valued given the slowing prospects for consumer and corporate spending.”
A close-up view of a payment terminal, capturing the sophistication of a payment network.
American Express Company (NYSE:AXP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held American Express Company (NYSE:AXP) at the end of the third quarter which was 68 in the previous quarter. In the third quarter, American Express Company’s (NYSE:AXP) revenues were $16.6 billion, up 8% from the previous year. While we acknowledge the potential of American Express Company (NYSE:AXP) 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 American Express Company (NYSE:AXP) and shared the list of best digital currency and payments stocks to invest in. American Express Company (NYSE:AXP) was one of the largest contributors of GreensKeeper Asset Management during Q3 2024. 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.