Parnassus Mid Cap Growth Fund Q1 2025 Commentary

Summary

• Parnassus Mid Cap Growth Fund underperformed the benchmark this quarter, but used volatility to add eight high-conviction, innovative stocks at attractive valuations.
• Our portfolio remains thematically focused on freight transport, housing, life sciences tools, and semiconductors, with selective additions to high-conviction names.
• Despite near-term uncertainty and market weakness, we believe our disciplined approach and recent portfolio pivots position us well for the next rally.
• We maintain a long-term perspective, investing in competitively advantaged businesses poised for market share gains and cyclical recovery.

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The strategy pursues long-term outperformance by owning a concentrated portfolio of 35 to 45 high-quality U.S. mid-cap stocks with the potential for long-term growth and business resiliency.

KEY TAKEAWAYS

• The Fund (PARNX, Investor Shares) returned -9.98% (net of fees) for the