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 Chipotle Mexican Grill, Inc. (NYSE:CMG) in the third quarter 2024 investor letter. Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. The one-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 9.38%, and its shares gained 38.53% of their value over the last 52 weeks. On December 10, 2024, Chipotle Mexican Grill, Inc. (NYSE:CMG) stock closed at $64.83 per share with a market capitalization of $88.337 billion.
Parnassus Growth Equity Fund stated the following regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q3 2024 investor letter:
“Against the backdrop of macro uncertainty, we opportunistically added high-quality businesses that had sold off amid overstated fears of consumer spending weakness. These new holdings include fast-casual chain Chipotle Mexican Grill, Inc. (NYSE:CMG) and Latin American online retail giant MercadoLibre in the Consumer Discretionary sector.
Chipotle is a leader in the fast casual dining category, bolstered by strong brand affinity and the growing trend toward healthy eating. While near-term consumer weakness and margin pressure are expected, we believe Chipotle can navigate it better than peers due to its superior execution and long runway for new store openings.”
A chef plating up a wide variety of dishes for a restaurant chain.
Chipotle Mexican Grill, Inc. (NYSE:CMG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of the third quarter which was 68 in the previous quarter. Chipotle Mexican Grill, Inc.’s (NYSE:CMG) sales grew 13% for the third quarter to reach $2.8 billion. While we acknowledge the potential of Chipotle Mexican Grill, Inc. (NYSE:CMG) 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 Chipotle Mexican Grill, Inc. (NYSE:CMG) and shared Wells Fargo’s top growth stocks and the stocks with the highest consensus EPS growth estimates. 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.