Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) declined -5.80% (net of fees) underperforming the Russell Midcap Index’s -3.35% return. Stock selection drove the underperformance of the portfolio. The portfolio’s strong holdings can mitigate market downturns and capitalize on growth opportunities as cyclical pressures decrease and long-term trends prevail. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Mid Cap Fund highlighted stocks like Pool Corporation (NASDAQ:POOL), in the second quarter 2024 investor letter. Pool Corporation (NASDAQ:POOL) is a swimming pool supplies, equipment, and related leisure products distributor. The one-month return of Pool Corporation (NASDAQ:POOL) was -2.25%, and its shares lost 0.84% of their value over the last 52 weeks. On September 6, 2024, Pool Corporation (NASDAQ:POOL) stock closed at $341.37 per share with a market capitalization of $13.06 billion.
Parnassus Mid Cap Fund stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q2 2024 investor letter:
“Pool Corporation (NASDAQ:POOL), a swimming pool supply distributor, lowered its full-year earnings estimates as demand for new pool construction fell more than expected due to high interest rates impacting big ticket purchases. Most of its revenue comes from maintenance of installed pools, which should be resilient.”
Aerial view of a swimming pool with outdoor furniture surrounding it.
Pool Corporation (NASDAQ:POOL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the second quarter which was 40 in the previous quarter. Pool Corporation (NASDAQ:POOL) recorded $1.8 billion in net sales in the second quarter, 5% less than the previous year. While we acknowledge the potential of Pool Corporation (NASDAQ:POOL) 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 Pool Corporation (NASDAQ:POOL) and shared Conestoga Capital Advisors’ views on the company. Pool Corporation (NASDAQ:POOL) detracted from the performance of The London Company Mid Cap Strategy in Q2 2024. In addition, please check out our hedge fund investor letters Q2 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.
