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 Cisco Systems, Inc. (NASDAQ:CSCO) in the second quarter 2024 investor letter. Cisco Systems, Inc. (NASDAQ:CSCO) manufactures and supplies Internet Protocol-based networking and other products related to the communications and information technology industry. The one-month return of Cisco Systems, Inc. (NASDAQ:CSCO) was 4.49%, and its shares lost 2.28% of their value over the last 52 weeks. On September 25, 2024, Cisco Systems, Inc. (NASDAQ:CSCO) stock closed at $52.65 per share with a market capitalization of $210.112 billion.
Parnassus Value Equity Fund stated the following regarding Cisco Systems, Inc. (NASDAQ:CSCO) in its Q2 2024 investor letter:
“During the second quarter, the Fund’s overweight position in the Information Technology sector decreased slightly as we sold our position in Cisco Systems, Inc. (NASDAQ:CSCO) and used most of the proceeds to buy Broadcom, a leading semiconductor company and provider of custom silicon products. Both stocks provide similar exposure to networking technology, but we believe Broadcom offers more upside from AI infrastructure spend and defensiveness due to its software assets.”
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Cisco Systems, Inc. (NASDAQ:CSCO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Cisco Systems, Inc. (NASDAQ:CSCO) at the end of the second quarter which was 58 in the previous quarter. While we acknowledge the potential of Cisco Systems, Inc. (NASDAQ:CSCO) 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 Cisco Systems, Inc. (NASDAQ:CSCO) and shared the list of hidden AI stocks to buy. 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.