Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index’s 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index’s 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration’s business-friendly policies. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized stocks such as The Cigna Group (NYSE:CI). The Cigna Group (NYSE:CI) is a US-based insurance company that offers insurance and related products and services. The one-month return of The Cigna Group (NYSE:CI) was 3.75%, and its shares lost 11.00% of their value over the last 52 weeks. On March 12, 2025, The Cigna Group (NYSE:CI) stock closed at $311.05 per share with a market capitalization of $85.128 billion.
Parnassus Core Equity Fund stated the following regarding The Cigna Group (NYSE:CI) in its Q4 2024 investor letter:
“The Cigna Group (NYSE:CI) stock declined amid regulatory concerns around its pharmacy benefits business and negative sentiment toward the health care sector more broadly during the quarter.
Cigna Group shares declined along with those of several other large health care providers and insurers amid speculation that the incoming Trump administration could implement reforms to pharmacy benefit managers, along with heightened public scrutiny over the sector’s business practices.”
A business executive reviewing insurance policy documents with a customer.
The Cigna Group (NYSE:CI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held The Cigna Group (NYSE:CI) at the end of the fourth quarter which was 66 in the previous quarter. The Cigna Group (NYSE:CI) reported full-year revenue growth of 27% to approximately $247 billion. While we acknowledge the potential of The Cigna Group (NYSE:CI) 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 The Cigna Group (NYSE:CI) and shared the list of health insurance stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.