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 Western Digital Corporation (NASDAQ:WDC), in the second quarter 2024 investor letter. Western Digital Corporation (NASDAQ:WDC) is a manufacturer and distributor of data storage devices and solutions. The one-month return of Western Digital Corporation (NASDAQ:WDC) was 1.83%, and its shares gained 39.80% of their value over the last 52 weeks. On September 6, 2024, Western Digital Corporation (NASDAQ:WDC) stock closed at $60.77 per share with a market capitalization of $20.872 billion.
Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its Q2 2024 investor letter:
“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”
A data center filled with racks of hard disk drives and solid state drives.
Western Digital Corporation (NASDAQ:WDC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held Western Digital Corporation (NASDAQ:WDC) at the end of the second quarter which was 65 in the previous quarter. Western Digital Corporation (NASDAQ:WDC) achieved robust results in the fiscal fourth quarter, with a non-GAAP gross margin of 36.3%, non-GAAP earnings per share of $1.44, and revenue of $3.8 billion. While we acknowledge the potential of Western Digital Corporation (NASDAQ:WDC) 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 Western Digital Corporation (NASDAQ:WDC) and shared the list of best affordable tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
