Insight into the Third Quarter Moves of a Leading Value-Oriented Investment Fund

Parnassus Value Equity Fund (Trades, Portfolio), managed by Parnassus Investments, recently disclosed its N-PORT filing for the third quarter of 2024. The fund, known for its commitment to fossil-fuel-free investments and positive workplace environments, focuses on acquiring undervalued, out-of-favor stocks with significant upside potential. Since Jerome Dodson (Trades, Portfolio) stepped back at the end of 2020, Billy Hwan has taken over as the portfolio manager. The fund aims to outperform the S&P 500 by investing in quality U.S. large-cap companies that meet stringent ESG criteria.

• Warning! GuruFocus has detected 6 Warning Signs with VZ.

Summary of New Buys

Parnassus Value Equity Fund (Trades, Portfolio) expanded its portfolio by adding two new stocks during the quarter:

• UnitedHealth Group Inc (NYSE:UNH) was the standout addition with 188,370 shares, making up 2.19% of the portfolio, valued at $110.14 million.

• Amazon.com Inc (NASDAQ:AMZN) also made a significant entry with 503,495 shares, representing about 1.86% of the portfolio, totaling $93.82 million.

Key Position Increases

The fund also increased its stakes in 20 existing holdings:

• Broadcom Inc (NASDAQ:AVGO) saw an addition of 253,770 shares, bringing the total to 589,550 shares. This adjustment increased the share count by 75.58% and impacted the portfolio by 0.87%, with a total value of $101.70 million.

• CBRE Group Inc (NYSE:CBRE) increased by 150,082 shares, resulting in a total of 1,156,075 shares. This represents a 14.92% increase in share count, valued at $143.91 million.

Summary of Sold Out Positions

The fund exited positions in two companies during the quarter:

• Charter Communications Inc (NASDAQ:CHTR) was completely sold off with 333,220 shares, impacting the portfolio by -2.04%.

• American Express Co (NYSE:AXP) saw all 369,561 shares liquidated, resulting in a -1.75% portfolio impact.

Key Position Reductions

Reductions were made in 13 stocks, with significant cuts in:

• Verizon Communications Inc (NYSE:VZ) was reduced by 961,573 shares, a -19.28% decrease, impacting the portfolio by -0.81%. The stock traded at an average price of $41.74 during the quarter.

• Intel Corp (NASDAQ:INTC) saw a reduction of 1,036,015 shares, a -28.17% decrease, impacting the portfolio by -0.66%. The stock traded at an average price of $24.97 during the quarter.

Portfolio Overview

As of the third quarter of 2024, Parnassus Value Equity Fund (Trades, Portfolio)'s portfolio included 44 stocks. The top holdings were: