Latest news with #ParnassusInvestments
Boston Globe
30-04-2025
- Business
- Boston Globe
Under Trump, stocks have the worst start to a presidential term since 1974
That swiftly changed when Trump unveiled his marquee suite of tariffs April 2 -- not the first new import taxes announced by his administration, but by far the most sweeping. Volatility erupted. Wall Street frantically began to grapple with the economic consequences of the new government's policies. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The S&P 500 tumbled more than 10% in two days, a drop comparable to some of the worst days of the pandemic-induced sell-off in March 2020 and, before that, the financial crisis in 2008. Advertisement Stocks have since stabilized, but the shock waves from the chaotic tariff rollout continue to send tremors through the global financial system. Some investors have questioned the United States' role at the heart of that financial system and the safety of the nation's assets during periods of market turmoil, threatening the long-held market order. There remain some optimists who note that the market turmoil did seem to eventually prompt Trump to back down on his steepest tariffs. But for many investors, even hopes of trade deals, tax cuts and deregulation -- a return to the more pro-business policies on the president's agenda -- remain marred by the sheer uncertainty over what else could happen next. Advertisement 'It's a very unstable situation,' said Michael Purves, chief investment officer at Tallbacken Capital. Promises of Prosperity Ahead It didn't start out like this. One month into Trump's term, the S&P 500 notched a record high. Investors were encouraged by the seemingly unlimited potential of artificial intelligence and a new president who had campaigned on a pro-growth agenda. Addressing the Future Investment Initiative Institute in Miami on Feb. 19, Trump assured investors of economic prosperity ahead. 'There's no better place on earth than the current and future United States of America under a certain president named Donald J. Trump,' he said. Investors were jubilant. 'There was so much optimism in the air,' said Todd Ahlsten, chief investment officer at Parnassus Investments, adding, 'There were few warning signs on the horizon.' Within a day of Trump's speech, however, worries over inflation started to weigh on the market, intensifying at the beginning of March with the announcement of 25% tariffs on Mexico and Canada. Economists expect tariffs, which are a tax on imports paid by the importer, to lead to higher prices for consumers and businesses. Investors, who once believed that Trump's aggressive campaign talk about trade imbalances would not become policy, were suddenly confronting a new reality. The president was serious about imposing tariffs, and he was willing to risk a sell-off in the stock market to achieve his goals. Advertisement Investors were still not prepared for what came next. 'A Huge Change in the Paradigm' The announcement of double-digit tariffs on countries across the globe incited the worst two-day sell-off for the S&P 500 since March 2020. The difference this time was that the slide came in direct response to government policy. 'It was a rapid sell-off, especially when you consider that there was no external shock like the pandemic,' said Mohamed El-Erian, president of Queens' College at Cambridge University and the former CEO of Pimco, one of the largest asset managers in the world. Economists began sounding the alarm that the economy, which had been experiencing steadily slowing job growth as inflation cooled, was now headed toward a much sharper downturn. The administration again shrugged off the stock slide. Investors rushed to protect their portfolios from further losses. 'The U.S. economy has gone from being celebrated for economic exceptionalism to concerns that it is slipping into stagflation or recession,' El-Erian said. 'That is a huge change in the paradigm for the world's most important economy.' The week before the tariffs were expected to go into effect, both the tech-heavy Nasdaq Composite index and the Russell 2000 index of smaller companies -- which tend to be more of a barometer of the outlook for the economy than much larger, multinational companies -- had fallen into bear markets. A bear market, in which an index falls 20% from its peak, is rare. When one occurs, it is a marker of extreme investor pessimism. In this case, analysts and economists say, it's over the direction of the economy in response to tariffs. It's a line in the sand for a sell-off turning into a sustained down market. Advertisement When markets closed April 8 -- the day before the tariffs were set to take effect -- the S&P 500 had fallen 18.9% below its February peak. With the market continuing the fall further toward a bear market as the tariffs came into force the next morning, Trump announced a 90-day pause for the most punitive tariffs on all countries except China. Stocks rallied, with the S&P 500 recording its best day since 2008. Alarm Bells Across the Financial System But it wasn't the stock market that Trump said had made him blink. That same week, something strange occurred in both the bond and currency markets. Typically, in times of turmoil, investors all over the world seek out U.S. assets as a source of reliability and safety. They buy dollars and U.S. government debt, typically pushing up the value of each. That is what happened as the stock market initially tumbled. But in the days leading up to the tariffs, both the dollar and U.S. government bonds started to fall as well, setting off alarm bells across Wall Street. Traders described a sense of panic and fear as prices lurched lower, sending yields soaring. The 30-year Treasury bond started the week with a yield of just over 4.3%. In overnight trading before the tariffs went into effect, the yield -- which is indicative of the borrowing cost for the U.S. government -- rose above 5%. That was a huge move in a market that typically moves by hundredths of a percentage point each day. 'The bond market is very tricky,' Trump remarked Traders pointed to technical thresholds that were breached in the bond market, setting off a spate of selling from different computer-driven trading strategies that automatically buy and sell based on preset programming. Advertisement Then the sell-off gathered momentum, with some analysts saying the unusual moves were a sign that investors were souring on U.S. assets amid the chaos caused by tariffs. U.S. exceptionalism is rooted in the notion that the United States plays a central role in global financial markets, where the dollar is the reserve currency and the nation's debt underpins borrowing domestically and internationally. That very notion, analysts say, has become vulnerable. Amid the chaos, Trump also ramped up attacks on the people and institutions underpinning U.S. exceptionalism, such as Jerome Powell, the chair of the Federal Reserve, whose independence helps underpin investor confidence in U.S. markets. The president was displeased that Powell had not lowered interest rates, even though Powell has warned that doing so could fuel further inflation. While many investors also long for lower rates, it is more important to them that the Fed maintain its independence. More 'Yo-Yo' Tariffs? Since April 9, there had been a shift in the tone of the administration. Officials have promoted what they say have been positive trade negotiations taking place behind the scenes. Even when the administration's claims of talks are rebuffed for being made up, as in the case of China, investors have taken the cue that the White House is trying to give the market something to cheer. Still, few are willing to bet on what happens next. One bond banker at a U.S. bank said his team was no longer making trading decisions with a time horizon of up to six months, as it was last year. Instead, uncertainty has forced it to make decisions week to week, with much dependent on the eventual level of tariffs that may not be known for weeks or even months. Advertisement Economic data will be watched closely for signs that tariffs are taking hold. Earnings reports will continue to be pored over for signs that tariffs are hitting Main Street. Then it will be July and the end of the 90-day pause that put tariffs and the market's meltdown on hold. 'If the administration moderates the tariff policy soon, and the tariff uncertainty abates, the lasting damage might be modest or negligible,' said James Egelhof, an economist at BNP Paribas. He said he was spending an increasing amount of time fielding questions from clients about what a potential economic downturn might look like if the tariff uncertainty persists. 'If we continue on a course where tariffs behave like a yo-yo, going up, then down, then up again, then this uncertainty won't abate, and it will have a paralyzing effect on businesses in particular,' he said. Highlighting that uncertainty again Wednesday, Trump pushed off blame for the current market turmoil onto his predecessor. 'This is Biden's Stock Market, not Trump's,' Trump wrote on Truth Social. 'I didn't take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. 'BE PATIENT!!' he added. This article originally appeared in
Yahoo
11-04-2025
- Business
- Yahoo
Fortinet Inc: Jerome Dodson's Strategic Exit with a -2.82% Portfolio Impact
Warning! GuruFocus has detected 3 Warning Sign with EFX. Jerome Dodson (Trades, Portfolio) recently submitted the N-PORT filing for the first quarter of 2025, providing insights into his investment moves during this period. Jerome L. Dodson is the Founder and President of Parnassus Investments. He was the lead Portfolio Manager of the Parnassus Fund and the Parnassus Asia Fund and the sole Portfolio Manager of the Parnassus Endeavor Fund (now the Parnassus Value Equity Fund (Trades, Portfolio)) until he stopped managing money for the firm at the end of 2020, though he remains Chairman of the Board. Prior to founding Parnassus Investments in 1984, he served as President and Chief Executive Officer of Continental Savings of America from 1976 to 1982, where he started the "Solar T-Bill" program to finance solar energy installations and also developed innovative programs to finance low and moderate income housing. Mr. Dodson received his bachelor's degree in political science from the University of California, Berkeley and his master's degree in business administration from Harvard Business School. Affiliated Managers Group gained control of Parnassus in mid-2021 after acquiring a majority stake in the firm. The Parnassus Mid Cap Growth Fund invests in U.S. mid-cap companies with long-term competitive advantages, quality management teams and good ESG practices. It also looks for companies that are gaining market share and have long runways for growth through established business models and proven financials. It also avoids highly leveraged companies and those associated with the production of fossil fuels, tobacco, alcohol and certain other industries. Jerome Dodson (Trades, Portfolio) added a total of 9 stocks, among them: The most significant addition was AppLovin Corp (NASDAQ:APP), with 68,447 shares, accounting for 2.49% of the portfolio and a total value of $18.14 million. The second largest addition to the portfolio was SanDisk Corp (NASDAQ:SNDK), consisting of 329,563 shares, representing approximately 2.15% of the portfolio, with a total value of $15.69 million. The third largest addition was BILL Holdings Inc (NYSE:BILL), with 333,734 shares, accounting for 2.1% of the portfolio and a total value of $15.32 million. Jerome Dodson (Trades, Portfolio) also increased stakes in a total of 2 stocks, among them: The most notable increase was The Trade Desk Inc (NASDAQ:TTD), with an additional 179,642 shares, bringing the total to 383,458 shares. This adjustment represents a significant 88.14% increase in share count, a 1.35% impact on the current portfolio, with a total value of $20.98 million. The second largest increase was PTC Inc (NASDAQ:PTC), with an additional 14,083 shares, bringing the total to 106,415. This adjustment represents a significant 15.25% increase in share count, with a total value of $16.49 million. Jerome Dodson (Trades, Portfolio) completely exited 4 of the holdings in the first quarter of 2025, as detailed below: Fortinet Inc (NASDAQ:FTNT): Jerome Dodson (Trades, Portfolio) sold all 249,593 shares, resulting in a -2.82% impact on the portfolio. Ross Stores Inc (NASDAQ:ROST): Jerome Dodson (Trades, Portfolio) liquidated all 123,305 shares, causing a -2.23% impact on the portfolio. Jerome Dodson (Trades, Portfolio) also reduced positions in 12 stocks. The most significant changes include: Reduced Trane Technologies PLC (NYSE:TT) by 45,050 shares, resulting in a -50.86% decrease in shares and a -1.99% impact on the portfolio. The stock traded at an average price of $361.35 during the quarter and has returned -10.18% over the past 3 months and -8.29% year-to-date. Reduced Atlassian Corp (NASDAQ:TEAM) by 50,043 shares, resulting in a -39.57% reduction in shares and a -1.46% impact on the portfolio. The stock traded at an average price of $263.86 during the quarter and has returned -19.72% over the past 3 months and -20.04% year-to-date. At the first quarter of 2025, Jerome Dodson (Trades, Portfolio)'s portfolio included 42 stocks, with top holdings including 4.87% in Equifax Inc (NYSE:EFX), 4.4% in Old Dominion Freight Line Inc (NASDAQ:ODFL), 3.96% in JB Hunt Transport Services Inc (NASDAQ:JBHT), 3.66% in Broadridge Financial Solutions Inc (NYSE:BR), and 3.4% in MercadoLibre Inc (NASDAQ:MELI). The holdings are mainly concentrated in 6 of the 11 industries: Technology, Industrials, Healthcare, Consumer Cyclical, Financial Services, and Basic Materials. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus.
Yahoo
11-04-2025
- Business
- Yahoo
Fortinet Inc: Jerome Dodson's Strategic Exit with a -2.82% Portfolio Impact
Warning! GuruFocus has detected 3 Warning Sign with EFX. Jerome Dodson (Trades, Portfolio) recently submitted the N-PORT filing for the first quarter of 2025, providing insights into his investment moves during this period. Jerome L. Dodson is the Founder and President of Parnassus Investments. He was the lead Portfolio Manager of the Parnassus Fund and the Parnassus Asia Fund and the sole Portfolio Manager of the Parnassus Endeavor Fund (now the Parnassus Value Equity Fund (Trades, Portfolio)) until he stopped managing money for the firm at the end of 2020, though he remains Chairman of the Board. Prior to founding Parnassus Investments in 1984, he served as President and Chief Executive Officer of Continental Savings of America from 1976 to 1982, where he started the "Solar T-Bill" program to finance solar energy installations and also developed innovative programs to finance low and moderate income housing. Mr. Dodson received his bachelor's degree in political science from the University of California, Berkeley and his master's degree in business administration from Harvard Business School. Affiliated Managers Group gained control of Parnassus in mid-2021 after acquiring a majority stake in the firm. The Parnassus Mid Cap Growth Fund invests in U.S. mid-cap companies with long-term competitive advantages, quality management teams and good ESG practices. It also looks for companies that are gaining market share and have long runways for growth through established business models and proven financials. It also avoids highly leveraged companies and those associated with the production of fossil fuels, tobacco, alcohol and certain other industries. Jerome Dodson (Trades, Portfolio) added a total of 9 stocks, among them: The most significant addition was AppLovin Corp (NASDAQ:APP), with 68,447 shares, accounting for 2.49% of the portfolio and a total value of $18.14 million. The second largest addition to the portfolio was SanDisk Corp (NASDAQ:SNDK), consisting of 329,563 shares, representing approximately 2.15% of the portfolio, with a total value of $15.69 million. The third largest addition was BILL Holdings Inc (NYSE:BILL), with 333,734 shares, accounting for 2.1% of the portfolio and a total value of $15.32 million. Jerome Dodson (Trades, Portfolio) also increased stakes in a total of 2 stocks, among them: The most notable increase was The Trade Desk Inc (NASDAQ:TTD), with an additional 179,642 shares, bringing the total to 383,458 shares. This adjustment represents a significant 88.14% increase in share count, a 1.35% impact on the current portfolio, with a total value of $20.98 million. The second largest increase was PTC Inc (NASDAQ:PTC), with an additional 14,083 shares, bringing the total to 106,415. This adjustment represents a significant 15.25% increase in share count, with a total value of $16.49 million. Jerome Dodson (Trades, Portfolio) completely exited 4 of the holdings in the first quarter of 2025, as detailed below: Fortinet Inc (NASDAQ:FTNT): Jerome Dodson (Trades, Portfolio) sold all 249,593 shares, resulting in a -2.82% impact on the portfolio. Ross Stores Inc (NASDAQ:ROST): Jerome Dodson (Trades, Portfolio) liquidated all 123,305 shares, causing a -2.23% impact on the portfolio. Jerome Dodson (Trades, Portfolio) also reduced positions in 12 stocks. The most significant changes include: Reduced Trane Technologies PLC (NYSE:TT) by 45,050 shares, resulting in a -50.86% decrease in shares and a -1.99% impact on the portfolio. The stock traded at an average price of $361.35 during the quarter and has returned -10.18% over the past 3 months and -8.29% year-to-date. Reduced Atlassian Corp (NASDAQ:TEAM) by 50,043 shares, resulting in a -39.57% reduction in shares and a -1.46% impact on the portfolio. The stock traded at an average price of $263.86 during the quarter and has returned -19.72% over the past 3 months and -20.04% year-to-date. At the first quarter of 2025, Jerome Dodson (Trades, Portfolio)'s portfolio included 42 stocks, with top holdings including 4.87% in Equifax Inc (NYSE:EFX), 4.4% in Old Dominion Freight Line Inc (NASDAQ:ODFL), 3.96% in JB Hunt Transport Services Inc (NASDAQ:JBHT), 3.66% in Broadridge Financial Solutions Inc (NYSE:BR), and 3.4% in MercadoLibre Inc (NASDAQ:MELI). The holdings are mainly concentrated in 6 of the 11 industries: Technology, Industrials, Healthcare, Consumer Cyclical, Financial Services, and Basic Materials. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus.
Yahoo
12-03-2025
- Business
- Yahoo
Here's What Lifted Investors' Confidence in Amazon.com (AMZN)
Parnassus Investments, an investment management company, released the 'Parnassus Core Equity Fund' fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index's 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index's 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration's business-friendly policies. In addition, please check the fund's top five holdings to know its best picks in 2024. In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized stocks such as Inc. (NASDAQ:AMZN). Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operate through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Inc. (NASDAQ:AMZN) was -14.13%, and its shares gained 11.35% of their value over the last 52 weeks. On March 11, 2025, Inc. (NASDAQ:AMZN) stock closed at $196.59 per share with a market capitalization of $2.083 trillion. Parnassus Core Equity Fund stated the following regarding Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter: " Inc. (NASDAQ:AMZN) posted better-than-expected quarterly earnings, lifting investor confidence in the e-commerce giant's ability to generate margin while continuing to invest into its large AI and retail end markets. Photo by Sunrise King on Unsplash Inc. (NASDAQ:AMZN) is in first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 339 hedge fund portfolios held Inc. (NASDAQ:AMZN) at the end of the fourth quarter compared to 286 in the third quarter. In Q4 2024, Inc. (NASDAQ:AMZN) achieved global revenue of $187.8 billion, representing an 11% year-over-year growth excluding the impact of foreign exchange. While we acknowledge the potential of Inc. (NASDAQ:AMZN) 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 Inc. (NASDAQ:AMZN) and shared the list of most profitable large cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Here's What Lifted Investors' Confidence in Amazon.com (AMZN)
Parnassus Investments, an investment management company, released the 'Parnassus Core Equity Fund' fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index's 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index's 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration's business-friendly policies. In addition, please check the fund's top five holdings to know its best picks in 2024. In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized stocks such as Inc. (NASDAQ:AMZN). Inc. (NASDAQ:AMZN) provides consumer products, advertising, and subscription services through online and physical stores that operate through North America, International, and Amazon Web Services (AWS) segments. The one-month return of Inc. (NASDAQ:AMZN) was -14.13%, and its shares gained 11.35% of their value over the last 52 weeks. On March 11, 2025, Inc. (NASDAQ:AMZN) stock closed at $196.59 per share with a market capitalization of $2.083 trillion. Parnassus Core Equity Fund stated the following regarding Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter: " Inc. (NASDAQ:AMZN) posted better-than-expected quarterly earnings, lifting investor confidence in the e-commerce giant's ability to generate margin while continuing to invest into its large AI and retail end markets. Photo by Sunrise King on Unsplash Inc. (NASDAQ:AMZN) is in first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 339 hedge fund portfolios held Inc. (NASDAQ:AMZN) at the end of the fourth quarter compared to 286 in the third quarter. In Q4 2024, Inc. (NASDAQ:AMZN) achieved global revenue of $187.8 billion, representing an 11% year-over-year growth excluding the impact of foreign exchange. While we acknowledge the potential of Inc. (NASDAQ:AMZN) 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 Inc. (NASDAQ:AMZN) and shared the list of most profitable large cap stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
