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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Parnassus Mid Cap Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated semiconductor AI holdings and software models vulnerable to AI pricing risks, adding cyclically-oriented industrials and infrastructure plays."
During the fourth quarter of 2025, the Parnassus Mid Cap Growth Fund (Investor Shares) returned -0.77%, outperforming the Russell Midcap Growth Index's decline of -3.70%. For the full year 2025, the Fund generated a 9.19% return versus 8.66% for the benchmark, led by Information Technology holdings capitalizing on the AI megatrend. To create a more balanced growth profile, the management team executed significant portfolio rebalancing during Q4 by adding six new holdings (DoorDash, Hubbell, Insmed, Old Dominion, Quanta Services, and Waste Connections) and exiting eight names (Alcon, AppLovin, Atlassian, Block, Builders FirstSource, Morningstar, SharkNinja, and Workday). Key reasons for exits included software valuation concerns, corporate governance issues, and the structural threat of AI to seat-based SaaS models. The managers remain constructive on 2026, expecting economic breadth and supportive policy/monetary shifts to benefit high-quality mid-caps.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
High-conviction positioning: Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Growth Outlook
Market outlook remains above average conviction: Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Risk Appetite
Risk appetite posture is above average conviction: Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Forward Guidance
Forward guidance signal: Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Language Signal
Tone analysis indicates above average conviction language: Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Opportunity Density
Opportunity density index indicates above average conviction actionable entry points. Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
Time Horizon
Investment time horizon reflects a high conviction orientation. Parnassus Mid Cap Growth Fund outperformed its index in both Q4 (-0.77% vs -3.70%) and FY2025 (9.19% vs 8.66%). The fund is actively repositioning away from highly concentrated sem...
