Parnassus Mid Cap Fund Added Workday (WDAY) on Dip
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 Workday, Inc. (NASDAQ:WDAY), in the second quarter 2024 investor letter. Workday, Inc. (NASDAQ:WDAY) offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was 20.12%, and its shares gained 1.58% of their value over the last 52 weeks. On September 6, 2024, Workday, Inc. (NASDAQ:WDAY) stock closed at $254.60 per share with a market capitalization of $67.469 billion.
Parnassus Mid Cap Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q2 2024 investor letter:
"Workday, Inc. (NASDAQ:WDAY), a provider of human capital and financial management software, warned of slower growth in subscription revenue even as first-quarter revenue and earnings topped expectations. We added to our position as it fell to a valuation that we believe does not reflect its revenue growth and increasing operating margins."
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Workday, Inc. (NASDAQ:WDAY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the second quarter which was 83 in the previous quarter. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) 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 Workday, Inc. (NASDAQ:WDAY) and shared Baron Technology Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.