| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.31% | -6.17% | -6.17% |
Parnassus Core Equity Fund returned -6.17% in Q1 2026, underperforming the S&P 500's -4.33% due to healthcare holdings and lack of energy exposure. The fund is navigating AI disruption by balancing exposure between AI beneficiaries and AI-resistant companies. Semiconductor equipment names Applied Materials and KLA were top contributors, benefiting from AI infrastructure spending. Healthcare holdings like Boston Scientific and life sciences tools companies underperformed on competitive and funding concerns. The managers made strategic portfolio changes, exiting software names ServiceNow and Workday due to AI uncertainty while adding infrastructure plays Old Dominion Freight Line and Vulcan Materials to benefit from reshoring trends. Geopolitical tensions in the Middle East created market volatility but the fund maintained its disciplined approach without event-driven positioning changes. Looking ahead, the managers expect earnings growth rather than multiple expansion to drive returns in 2026, remaining cautiously optimistic on strong fundamentals despite elevated geopolitical risks and AI-driven uncertainty creating greater market dispersion.
The fund pursues long-term outperformance by owning a concentrated portfolio of high-quality U.S. large cap businesses available at attractive prices, focusing on increasingly relevant, competitively advantaged businesses that can compound underestimated long-term value across market cycles.
The managers remain cautiously optimistic about the S&P 500 given a relatively strong earnings and macroeconomic backdrop, though they expect returns to be more driven by earnings growth than multiple expansion in 2026. They believe geopolitical uncertainty is creating greater dispersion across sectors and companies, requiring companies to deliver durable cash flow and real productivity gains.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 17 2026 | 2026 Q1 | AMAT, BRO, BSX, CRM, DE, DHR, KLAC, LIN, NOW, O, ODFL, SPGI, TMO, VMC, WDAY | AI, Geopolitical, healthcare, industrials, large cap, Quality, semiconductors |
ODFL VMC |
Parnassus underperformed in Q1 on healthcare weakness and energy underweight. The fund is strategically repositioning around AI disruption, keeping semiconductor equipment exposure while exiting software names and adding infrastructure plays. Geopolitical tensions create near-term volatility but strong earnings backdrop supports cautious optimism for 2026 returns driven by fundamentals over multiple expansion. |
| Jan 18 2026 | 2025 Q4 | AAPL, AMAT, AMD, AZO, BALL, BRO, CRM, DHR, EFX, FISV, GOOGL, HD, KLAC, LIN, LLY, MSFT, ORCL, TMO, VRTX, WDAY | AI, growth, healthcare, large cap, Quality, semiconductors, technology, value | - | Parnassus Core Equity underperformed in Q4 but maintains bullish 2026 outlook, expecting market broadening to favor active management. The fund balances defensive positioning with offensive AI investments in semiconductors, hyperscalers, and software. Strong conviction in quality companies like Eli Lilly and Applied Materials drives long-term outperformance strategy despite near-term volatility. |
| Oct 15 2025 | 2025 Q3 | AAPL, AMD, AVGO, AZO, BRO, BSX, CRM, DE, FI, GOOGL, GWW, ICE, INTU, KLAC, LLY, NVDA, ORCL, SYK, TMO, WDAY | AI, Defensive, financials, industrials, large cap, Quality, semiconductors, technology |
BSX US GWW US |
Parnassus Core Equity underperformed in Q3 as defensive positioning hurt amid risk-on sentiment, though AI infrastructure and semiconductor holdings provided support. The Fund balances defensive quality names with offensive AI exposure, remaining constructively bullish on stable growth and corporate profits while monitoring inflation, Fed independence, and AI monetization risks through concentrated high-quality positioning. |
| Jun 30 2025 | 2025 Q2 | AAPL, AMZN, AVGO, BRO, DE, DHR, FERG, FIS, GOOGL, ICE, INTU, LIN, MA, MSFT, NVDA, ORCL, SPGI, TMO, VRTX, WM | AI, defensives, financials, large cap, Quality, technology | - | Parnassus Core Equity underperformed in Q2 but maintains bullish outlook on U.S. large caps driven by AI transformation and American exceptionalism. Portfolio balances defensive quality holdings with offensive AI positioning in semiconductors and hyperscalers. Despite trade policy uncertainty, managers see continued opportunity in high-quality businesses with durable competitive advantages. |
| Apr 14 2025 | 2025 Q1 | AMD, AMZN, AZO, BCOM, BRO, CI, CRM, DE, DHI, GOOGL, ICE, MA, MAR, MSFT, NOW, NVDA, O, SNPS, VZ, WM | AI, Defensive, financials, industrials, large cap, Quality, semiconductors | - | Parnassus Core Equity outperformed during Q1's market decline through defensive positioning and quality stock selection. The fund added AI exposure via AMD and ServiceNow while maintaining balanced offense-defense positioning. Despite policy uncertainty creating near-term volatility, managers remain focused on high-quality businesses with long-term growth potential, particularly AI beneficiaries and resilient defensive companies. |
| Dec 31 2024 | 2024 Q4 | AMZN, AVGO, BAC, BALL, CI, CME, CRM, DE, DHI, FERG, FI, INTC, KLAC, LIN, LLY, O, ORCL, SYY, VRTX, WDAY | Cloud, Esg, healthcare, large cap, materials, Pharmaceuticals, technology, value |
FERG LLY WDAY KLAC VRTX |
Parnassus Core Equity underperformed in Q4 and 2024 despite strong AI-related gains, hurt by Materials overweight and Financials selection. The fund added healthcare and technology positions while maintaining balanced positioning. Management sees 2025 driven by AI adoption, fiscal policy debates, and international recoveries, with continued opportunities in Materials and Financials sectors. |
| Oct 28 2024 | 2024 Q3 | ADBE, AMAT, AMZN, BALL, CHTR, CRM, DE, DHI, GOOGL, ICE, INTC, MA, MSFT, MU, NVDA, O, SHW, SNPS, SYK, WM | AI, financials, large cap, materials, Quality, semiconductors, technology | - | Parnassus Core Equity delivered 5.50% in Q3, focusing on high-quality U.S. large caps with AI infrastructure exposure. The fund upgraded portfolio quality by exiting Intel and Micron for Amazon and Stryker. Lower rates benefited REITs and homebuilders while semiconductor concerns pressured tech holdings. Management remains optimistic on AI transition opportunities despite monitoring for overvaluation. |
| Jul 15 2024 | 2024 Q2 | AAPL, ADBE, AMAT, AVGO, BAC, BALL, COST, CRM, DE, FI, GOOGL, INTC, LIN, MA, MSFT, MU, NTR, NVDA, O, ORCL, RHHBY, VRSK | AI, Esg, growth, large cap, Quality, semiconductors, technology, value | - | Parnassus Core Equity underperformed in Q2 due to tech stock selection despite AI tailwinds benefiting top holdings like Alphabet and Oracle. The fund maintains balanced positioning in high-quality large caps, trimming financials and health care while adding to real estate. Managers remain constructive on the investment landscape given moderating inflation and strong earnings growth. |
| Apr 27 2024 | 2024 Q1 | AAPL, AMAT, AVGO, AZO, CHTR, CP, DE, FI, GILD, GOOGL, INTC, MSFT, MU, NVDA, O, ORCL, RHHBY, SPGI, TXN, VZ | large cap, REITs, semiconductors, technology, Telecom, value | - | Parnassus Core Equity returned 9.99% in Q1, slightly trailing the S&P 500. The fund maintains balanced positioning amid soft landing optimism, adding defensive exposure through Verizon and Realty Income while capturing AI and semiconductor recovery themes via Micron and Broadcom. Strong Information Technology stock selection offset Communication Services weakness, with managers remaining disciplined on valuation while positioning for long-term secular growth. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIThe fund is balancing AI opportunity with heightened risks, seeking equilibrium between holdings positioned to benefit from AI adoption and those with growth prospects not dependent on AI. They maintain meaningful exposure to companies benefiting from AI-driven capital spending, particularly in semiconductors and semiconductor equipment, while also looking beyond the semiconductor ecosystem to companies less likely to be disrupted. |
Artificial Intelligence Semiconductors Technology Disruption Infrastructure |
SemiconductorsThe fund continues to seek meaningful exposure to companies benefiting from AI-driven capital spending, particularly in semiconductors and semiconductor equipment. Applied Materials and KLA were top contributors, benefiting from sustained demand tied to AI infrastructure build-out and strong demand for leading-edge chip manufacturing equipment. |
Chip Manufacturing Equipment AI Infrastructure Technology | |
Infrastructure SpendingThe fund added Old Dominion Freight Line and Vulcan Materials to benefit from infrastructure spending trends and reshoring of industry. Vulcan is positioned to benefit from ongoing public infrastructure investment and improving private construction activity. |
Construction Materials Transportation Public Investment | |
OnshoringThe fund expects Old Dominion Freight Line and Vulcan Materials to benefit from structural tailwinds such as nearshoring and reshoring of industry, supporting volume growth and margin expansion over time. |
Supply Chain Manufacturing Logistics Structural Trends | |
| 2025 Q4 |
AIThe fund views AI as a generational demand driver creating durable need for faster, more powerful computing. They are leaning into AI beneficiaries including hyperscalers, semiconductors and software companies as an 'anti-bubble' strategy. They believe AI technology is a lasting innovation that will transform the global economy and they are likely in the early stages of a decade-long AI investment cycle. |
Artificial Intelligence Hyperscalers Semiconductors Data Centers Computing |
SemiconductorsApplied Materials and KLA were top contributors due to AI-driven semiconductor demand and exposure to leading-edge AI chip manufacturing. The fund sees sustained AI-driven semiconductor demand with improving customer outlooks supporting the sector. They view this as part of their offensive positioning in areas where convictions are highest. |
Chip Manufacturing AI Chips Semiconductor Equipment Memory Processing | |
FinancialsFinancials sector holdings detracted from performance both quarterly and annually. The fund exited Fiserv due to management turnover and earnings algorithm reset. However, they favor nonbank financials like information exchanges that are using AI to increase the value of their proprietary data. |
Banking Financial Services Information Exchanges Payment Processing | |
BiotechnologyEli Lilly was a top contributor as concerns around GLP-1 weight-loss drugs eased following stronger-than-expected demand data. The fund continues to lean into technology adopters like Eli Lilly that continue to innovate to improve patient outcomes. They also favor life science tools companies that provide valuable equipment for clinical research. |
GLP-1 Pharmaceuticals Drug Development Life Sciences Medical Innovation | |
CloudAlphabet transitioned from being perceived as an AI risk to an AI winner, with growth in YouTube, search and cloud businesses accelerating. The fund sees cloud as part of their AI beneficiary strategy and views these companies as using massive R&D spend to lead their markets. |
Cloud Computing Search Digital Advertising Platform Services | |
| 2025 Q3 |
AIThe Fund maintains offensive positions in AI beneficiaries including hyperscalers, semiconductors and software. The AI buildout continues to exceed expectations, led by U.S. companies that have invested and scaled the technology to drive massive infrastructure transformation. However, rising AI infrastructure investments require greater monetization to avoid overheating. |
Infrastructure Hyperscalers Monetization Investment Buildout |
SemiconductorsThe portfolio includes strategic exposure to semiconductor companies as part of AI infrastructure positioning. KLA benefited as investors rewarded critical players in the AI semiconductor supply chain amid rising expectations for AI-driven chip demand. The Fund trimmed Advanced Micro Devices and Broadcom where valuations have trended higher. |
Supply Chain Equipment Valuations Demand Manufacturing | |
Data CentersRising power demand fueled by the expansion of AI data centers could push electricity prices higher and add inflationary pressure to businesses and consumers alike. This represents both an opportunity and risk as AI infrastructure continues to expand rapidly. |
Power Demand Infrastructure Electricity Expansion AI | |
| 2025 Q2 |
AIAI is viewed as a durable long-term trend that will transform the economy, with U.S. companies at the forefront. The fund has taken advantage of market volatility to lean into secular trends through investing in AI beneficiaries including hyperscalers, semiconductors and certain areas of software. Second-quarter performance of the Information Technology sector confirmed that investments in AI are propelling growth. |
Hyperscalers Semiconductors Software Data Centers Cloud |
QualityThe fund maintains a bias toward higher-quality businesses that will likely remain resilient regardless of economic outcomes. This includes non-bank Financials such as data and exchange companies, high-quality business services companies, and innovative Industrials companies. The strategy focuses on high-quality companies that offer potential for market upside and resilience in market downturns. |
Resilience Business Services Moats Defensives Stability | |
| 2025 Q1 |
AIThe portfolio maintains positioning in AI beneficiaries including hyperscalers, semiconductor companies, and software companies that are building the computing foundation of the future. The fund added AMD and ServiceNow during the quarter to strengthen its AI theme exposure. Despite near-term volatility, the managers remain optimistic about long-term opportunities in AI infrastructure providers. |
Semiconductors Cloud Data Centers Enterprise Software GPUs |
SemiconductorsThe fund maintains overweight positioning in semiconductor stocks despite sector volatility during the quarter. Added Advanced Micro Devices as a strong player in multiple end markets including AI accelerators, taking advantage of share price decline. Broadcom declined as investors grew pessimistic about the current chip cycle, but the fund continues to see long-term potential in the semiconductor space. |
AI GPUs Memory Semi Equipment Chip Designers | |
ResilienceThe portfolio emphasizes high-quality resilient defensive stocks that can weather economic uncertainty and volatility. Companies like Waste Management benefited from their defensive characteristics as their core business is relatively unaffected by economic slowdowns. The fund seeks businesses with stable earnings and defensive positioning amid heightened market volatility. |
Quality Waste Management Utilities Consumer Staples Healthcare | |
| 2024 Q4 |
AIAI remained a dominant theme throughout 2024, with companies like Oracle gaining market share in cloud-based training of generative AI models and Broadcom benefiting from AI chip sales. The fund expects the path and continuation of frontier AI model scaling to be a notable driver of investment returns in 2025, along with greater AI usage and workflow integration across consumer and enterprise businesses. |
Cloud Semiconductors Enterprise Software Data Centers Automation |
MaterialsThe fund maintains its largest overweight in Materials despite the sector being the worst performer in Q4. Ball Corp faced mixed demand for aluminum packaging with end-market weakness in some regions, though the fund anticipates a recovery in demand. The fund continues to see attractive opportunities across the Materials sector. |
Aluminum Packaging Industrial Chemicals Commodity Chemicals Recycling | |
GLP1The fund initiated a position in Eli Lilly during Q4, citing the company's exceptional GLP-1 franchise and strong track record of innovation. A rare revenue miss and political concerns around the health secretary nomination created an attractive entry point for exposure to the drugmaker's product suite and pipeline. |
Diabetes Pharmaceuticals Biotechnology Obesity Innovation | |
CloudCloud infrastructure and enterprise applications were key themes, with Oracle's Cloud Infrastructure helping reaccelerate growth and Workday being added as a category leader for enterprise cloud applications. The fund sees continued growth potential in cloud-based solutions for finance and human resources. |
SaaS Enterprise Software Data Centers IT Services Workflow Automation | |
| 2024 Q3 |
AIThe fund maintains exposure to companies benefiting from the shift away from legacy computing infrastructure to AI infrastructure, including accelerated and cloud computing, semiconductors, software and other companies benefiting from these capabilities. They have a portfolio theme around companies with hyperscale exposure and are monitoring for overinvestment and excessive valuations. |
Hyperscale Cloud Semiconductors Infrastructure |
SemiconductorsThe fund made significant adjustments in semiconductor holdings, selling lower-quality businesses Intel and Micron Technology due to market compression, uncertainty around memory cyclicality, and declining market share. They view the semiconductor industry with caution regarding durability of growth and capital expenditure cuts in memory spending. |
Memory Cyclicality Equipment Foundries | |
QualityThe fund emphasizes increasing portfolio quality by making adjustments across sectors. They sold lower-quality semiconductor businesses and cable providers while adding higher-quality names like Amazon and Stryker, focusing on competitively advantaged businesses with strong fundamentals. |
Fundamentals Competitive Advantage Defensive Resilience | |
| 2024 Q2 |
AIAI-related narratives drove the largest positive and negative contributions to performance. Companies like Alphabet, Applied Materials, and Oracle rose on confidence about AI infrastructure build-out and adoption. The fund continues to focus on companies well positioned to capitalize on emerging AI opportunities. |
Artificial Intelligence Infrastructure Cloud Technology Growth |
SemiconductorsApplied Materials benefited from accelerated industry spend due to AI and share gains as the world's largest supplier of wafer fabrication technologies. Intel showed progress on technology roadmaps albeit at a slower-than-expected pace. |
Wafer Fabrication Technology Manufacturing Equipment | |
| 2024 Q1 |
AIThe artificial intelligence related momentum and optimism that characterized much of 2023's market activity continued in the quarter, especially within the Semiconductors industry. Broadcom benefits from the adoption and proliferation of AI and has established itself as one of the leading providers of custom silicon products. Rising investment in AI fuels demand for memory providers like Micron. |
Semiconductors Custom Silicon Memory Adoption |
Semiconductor CycleApplied Materials gained as a resurgent environment for semiconductor chip production improved sentiment around the stock. Micron Technology is a memory provider entering a cyclical recovery supported by secular trends after a cyclical downturn. The DRAM and NAND memory markets are recovering. |
Memory DRAM NAND Equipment Recovery | |
DividendsVerizon offers an attractive dividend yield and decent margin growth potential. Realty Income demonstrated resiliency during the pandemic and offers a desirable dividend yield, providing defensiveness in an environment with potentially lower rates. |
Yield Income Defensiveness REIT |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 17, 2026 | Fund Letters | Parnassus Core Equity Fund | ODFL | Old Dominion Freight Line, Inc. | Trucking | Ground Transportation | Bull | NASDAQ | capital allocation, Freight, Industrial Consolidation, Logistics, LTL Transportation, Nearshoring, network effects | Login |
| Apr 17, 2026 | Fund Letters | Parnassus Core Equity Fund | VMC | Vulcan Materials Co. | Building Materials | Construction Materials | Bull | New York Stock Exchange | aggregates, barriers to entry, construction materials, Construction Recovery, Geographic Moats, infrastructure, Quarries | Login |
| Oct 15, 2025 | Fund Letters | Todd Ahlsten | BSX US | Boston Scientific Corp. | Health Care | Medical Devices | Bull | NYSE | growth, healthcare, innovation, leadership, Margins, Medical devices | Login |
| Oct 15, 2025 | Fund Letters | Todd Ahlsten | GWW US | W.W. Grainger Inc. | Industrials | Distribution & Logistics | Bull | NYSE | Distribution, e-commerce, efficiency, Industrials, Logistics, MRO, Nearshoring | Login |
| Dec 31, 2024 | Fund Letters | Parnassus Core Equity Fund | VRTX | Vertex Pharmaceuticals Inc. | Health Care | Biotechnology | Bull | NASDAQ | Acquisitions, biotechnology, Clinical Outcomes, Cystic fibrosis, Diabetes, innovation, pipeline, rare diseases | Login |
| Dec 31, 2024 | Fund Letters | Parnassus Core Equity Fund | FERG | Ferguson Enterprises Inc. | Industrials | Trading Companies & Distributors | Bull | NYSE | construction, Distributor, Housing, Industrials, infrastructure, market consolidation, Plumbing, Scale Advantages | Login |
| Dec 31, 2024 | Fund Letters | Parnassus Core Equity Fund | LLY | Eli Lilly & Co. | Health Care | Pharmaceuticals | Bull | NYSE | Biotech, Diabetes, GLP-1, healthcare, innovation, Obesity, pharmaceuticals, pipeline | Login |
| Dec 31, 2024 | Fund Letters | Parnassus Core Equity Fund | WDAY | Workday Inc. | Information Technology | Application Software | Bull | NASDAQ | Cloud Applications, Enterprise software, Finance, Human Resources, Partnerships, Product Stickiness, SaaS, technology | Login |
| Dec 31, 2024 | Fund Letters | Parnassus Core Equity Fund | KLAC | KLA Corp. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | Advanced Semiconductors, China risk, manufacturing, Metrology, process control, semiconductor equipment, switching costs, technology | Login |
| TICKER | COMMENTARY |
|---|---|
| DE | Deere advanced on expectations for an agricultural cycle recovery and continued adoption of precision agriculture technologies, with investors viewing the agricultural equipment business as both durable and future proofed. |
| AMAT | Applied Materials, which supplies semiconductor manufacturing equipment, benefited from sustained demand tied to AI infrastructure build-out, as hyperscalers increased capital spending to support accelerating compute needs. |
| KLAC | KLA outperformed along with its semiconductor peers, driven by strong demand for leading-edge chip manufacturing equipment to support the expanding adoption of AI technologies across industries. |
| LIN | Linde, a multinational provider of industrial gases, gained as investors favored companies with durable, hard-to-disrupt business models tied to both the global economy and semiconductor manufacturing. |
| O | Realty Income served as a defensive beneficiary amid geopolitical uncertainty in the quarter, as investors seeking stability turned to its long-term income-generating model from its real estate leases. |
| BSX | Boston Scientific, a leading medical device company, declined on concerns about increased competition for its main atrial fibrillation products and mixed clinical data, though we believe its long-term growth prospects remain intact. |
| CRM | Salesforce stock fell sharply as investor sentiment on software companies broadly weakened amid AI disruption concerns, despite the company's favorable sales figures and margin growth. We view Salesforce as well positioned to avoid AI disruption given its moats around data, platform and distribution incumbency. |
| DHR | Danaher, a maker of life sciences tools and diagnostics technology, lagged as biotechnology companies faced a variety of headwinds, including funding challenges and higher interest rates. We believe Danaher is positioned to benefit from a recovery in its markets for clinical research and personalized medicine, aided by AI discoveries. |
| SPGI | S&P Global underperformed as uncertainty around the theoretical ease of replacing financial data providers with AI tools weighed on sentiment. We expect the company to remain an important player in its debt rating, data and risk management market segments. |
| TMO | Thermo Fisher Scientific, a global provider of pharmaceutical research instruments and services, declined alongside life sciences peers as investors remained cautious on the pace of end-market recovery, despite fundamentals tracking expectations. |
| ODFL | Old Dominion has consistently outperformed peers by pairing superior service with disciplined pricing and steady reinvestment in its network, creating a virtuous cycle of share gains and attractive returns. Following a pullback in the stock, we believed the risk/reward opportunity had become compelling given the company's strong balance sheet, minimal leverage and long history of prudent capital allocation. Over time, we expect normalization in freight demand, industry consolidation and structural tailwinds such as nearshoring to support volume growth, margin expansion and continued value compounding. |
| VMC | Vulcan benefits from irreplaceable quarry locations, high barriers to entry and favorable positions in fast-growing regions, which together create local market advantages and resilient unit economics. Supported by ongoing public infrastructure investment, improving private construction activity and disciplined execution, Vulcan is well positioned to grow earnings and compound value across market cycles, in our view. |
| NOW | We exited our position in ServiceNow to bring the portfolio's software exposure closer to market weight. While we continue to see opportunities in the software space, uncertainty around software has risen. We trimmed this exposure and diversified the proceeds across a number of more defensive holdings in a range of industries and sectors in pursuit of a more balanced and risk-aware approach to software. |
| WDAY | We exited our position in Workday to bring the portfolio's software exposure closer to market weight. While we continue to see opportunities in the software space, uncertainty around software has risen. We trimmed this exposure and diversified the proceeds across a number of more defensive holdings in a range of industries and sectors in pursuit of a more balanced and risk-aware approach to software. |
| BRO | While Brown & Brown remains a high-quality business, we saw rising near-term risks as the company navigates an industry downturn, integrates a large acquisition and works to close an AI capability gap versus larger peers. We reallocated capital to Vulcan Materials, which offers a more compelling risk/reward profile, supported by its irreplaceable geological assets and long-term public infrastructure demand. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
