Parnassus Core Equity Fund Q1 2025 Commentary

Summary

• Parnassus Core Equity Fund outperformed the S&P 500 this quarter by focusing on high-quality U.S. large caps, especially in Industrials and Financials, while avoiding Energy.
• Our balanced approach between offense and defense, with overweights in Materials and Financials and underweights in Communication Services and Energy, supported relative performance.
• We remain disciplined, adding resilient defensive stocks and select secular growth names like AMD and ServiceNow, while trimming weaker positions amid market volatility.
• Despite ongoing uncertainty, we stay focused on fundamentals and long-term opportunities, particularly in AI infrastructure, to deliver strong returns for investors.

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Parnassus Core Equity Fund

The strategy pursues long-term outperformance by owning a concentrated portfolio of high-quality U.S. large cap businesses that are available at attractive prices due to cyclical concerns or underappreciation of earnings potential.

KEY TAKEAWAYS

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