Parnassus Investments, an investment management company, released the “Parnassus Value Equity Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) returned -3.81% (net of fees) underperforming the Russell 1000 Value Index’s -2.17% return. Stock selection in the Health Care sector drove most of the portfolio’s underperformance. The firm believes the Fund is well positioned for future returns with AI-related investments in Information Technology complemented by holdings that should benefit from improved performance across other sectors. If investor uncertainty increases, it anticipates finding more bargain opportunities. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Value Equity Fund highlighted stocks like Global Payments Inc. (NYSE:GPN), in the second quarter 2024 investor letter. Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for card, check, and digital-based payments. The one-month return of Global Payments Inc. (NYSE:GPN) was -12.46%, and its shares lost 16.40% of their value over the last 52 weeks. On September 25, 2024, Global Payments Inc. (NYSE:GPN) stock closed at $97.06 per share with a market capitalization of $24.696 billion.
Parnassus Value Equity Fund stated the following regarding Global Payments Inc. (NYSE:GPN) in its Q2 2024 investor letter:
“Global Payments Inc. (NYSE:GPN) stock fell on investor fears that a slowing economy could weigh on payment processing companies. The company will host an investor day focused on improving efficiencies and strategic redeployment of assets in the fall, which we believe will unlock hidden value in the undervalued shares.”
A payment terminal in action with customers apart of the experience.
Global Payments Inc. (NYSE:GPN)is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Global Payments Inc. (NYSE:GPN) at the end of the second quarter which was 52 in the previous quarter. Global Payments Inc. (NYSE:GPN) reported adjusted net revenue of $2.32 billion for the quarter, up 6% from the prior year’s quarter. While we acknowledge the potential of Global Payments Inc. (NYSE:GPN)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 Global Payments Inc. (NYSE:GPN) and shared the list of best cheap technology stocks to buy according to hedge funds. During Q2 2024, TimesSquare Capital U.S. Mid Cap Growth Strategy sold its holdings in Global Payments Inc. (NYSE:GPN). 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.