Parnassus Core Equity Fund Details Q3 Repositioning After Trailing the S&P 500
The investor letter outlines reallocation from higher‑valuation tech plus select health holdings into Grainger and Boston Scientific to pursue steadier growth.
Overview
- The fund returned 2.57% in Q3 2025 versus the S&P 500’s 8.12%, with year‑to‑date gains also below the index.
- We trimmed Advanced Micro Devices and Broadcom as valuations climbed and opened a new Industrials position in W.W. Grainger based on scale, e‑commerce strength, and service advantages.
- In Health Care, we reduced Eli Lilly and Stryker to establish Boston Scientific, citing first‑mover technology, strong clinical data, and execution under CEO Mike Mahoney.
- We exited Intuit to lock in gains and redirected capital to higher‑conviction software names Salesforce and Workday, modestly reducing overall software exposure.
- Thermo Fisher rebounded on better‑than‑expected results and guidance, Intercontinental Exchange weakened due to rotation out of lower‑beta names, and Apple detracted on a relative basis given our below‑benchmark weight despite its strong quarter.