Parnassus Investments, an investment management company, has released the investor letter for the third quarter of 2024 “Parnassus Mid Cap Fund”. You can download a copy of the letter here. In the third quarter, the Fund (investor shares) returned 8.55% (net of fees), which outperformed the 6.54% return of the Russell Midcap Index. Stock selection in healthcare drove the portfolio’s outperformance, while stock selection in the real estate sector had a negative impact. The Fund’s focus on quality attributes has benefited from reduced cyclical pressures and company-specific opportunities. Plus, take a look at the fund’s top five investments to find out what the best choices are in 2024.
Parnassus Mid Cap Fund highlighted stocks like Guidewire Software, Inc. in its Q3 2024 investor letter. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) provides a platform for property and casualty (P&C) insurers. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was -13.10%, and the shares have gained 75.26% of their value over the past 52 weeks. On December 12, 2024, shares of Guidewire Software, Inc. closed. (NYSE:GWRE) at $173.72 per share with a market cap of $14.256 billion.
Parnassus Mid Cap Fund stated the following about Guidewire Software, Inc. (NYSE:GWRE) in its Q3 2024 investor letter:
Guidewire Software, Inc. (NYSE:GWRE), the leading software provider for property and casualty insurers, is reaping the benefits of its cloud migration efforts as it continues to penetrate the market with its comprehensive platform of claims, billing and policy management solutions.”
An insurance adjuster who reviews images and paperwork to process a claim.
Guidewire Software, Inc. (NYSE:GWRE) isn’t on our list of the 31 most popular stocks among hedge funds. According to our database, 51 hedge fund portfolios held Guidewire Software, Inc. at the end of the third quarter. (NYSE:GWRE), up from 43 in the previous quarter. Guidewire Software, Inc.’s total revenue (NYSE:GWRE) was $263 million in fiscal first quarter 2025, above the upper end of expectations and up 27% year over year. While we recognize the potential of Guidewire Software, Inc. (NYSE:GWRE) as an investment, our belief lies in the belief that AI stocks hold greater promise for delivering higher returns in a shorter time frame. If you’re looking for an AI stock that’s as promising as NVIDIA, but trades at less than five times earnings, check out our report on the cheapest AI stocks.
In another article we discussed Guidewire Software, Inc. (NYSE:GWRE) and shared Artisan Small Cap Fund’s view on the company. Additionally, check out our letters to hedge fund investors Q3 2024 page for more investor letters from hedge funds and other leading investors.
