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 Procore Technologies, Inc. (NYSE:PCOR) in the third quarter 2024 investor letter. Based in Carpinteria, California, Procore Technologies, Inc. (NYSE:PCOR) provides a cloud-based construction management platform and related software products. The one-month return of Procore Technologies, Inc. (NYSE:PCOR) was 9.43%, and its shares gained 31.73% of their value over the last 52 weeks. On December 10, 2024, Procore Technologies, Inc. (NYSE:PCOR) stock closed at $80.34 per share with a market capitalization of $12.318 billion.
Parnassus Growth Equity Fund stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q3 2024 investor letter:
“Procore Technologies, Inc. (NYSE:PCOR), a leading purveyor of construction management software, announced an update to its go-to-market operating model that was not well received by investors. We believe any dislocations resulting from this strategic change will be temporary.”
A computer monitor displaying cloud-based construction management platform software.
Procore Technologies, Inc. (NYSE:PCOR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Procore Technologies, Inc. (NYSE:PCOR) at the end of the third quarter which was 47 in the previous quarter. The third-quarter revenue of Procore Technologies, Inc. (NYSE:PCOR) was $296 million, which represents a 19% year over year increase. While we acknowledge the potential of Procore Technologies, Inc. (NYSE:PCOR) 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 Procore Technologies, Inc. (NYSE:PCOR) and shared Conestoga Capital Advisors’ views on the company. Procore Technologies, Inc. (NYSE:PCOR) detracted from the performance of Parnassus Growth Equity Fund in the previous quarter due to investors’ concerns. 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.