Soumya Eswaran
3 min read
In This Article:
Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Fund (Investor Shares) returned -8.59% (net of fees), outperforming the Russell 1000 Growth Index’s -9.97% decline. In the first quarter, post-election optimism, driven by reduced regulation and a business-friendly environment, drifted away to concerns over fiscal and tariff uncertainties, which increased volatility and raised fears of a recession. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Parnassus Growth Equity Fund highlighted stocks such as Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products. The one-month return of Exact Sciences Corporation (NASDAQ:EXAS) was -4.42%, and its shares gained 26.44% of their value over the last 52 weeks. On June 27, 2025, Exact Sciences Corporation (NASDAQ:EXAS) stock closed at $53.65 per share with a market capitalization of $10.12 billion.
Parnassus Growth Equity Fund stated the following regarding Exact Sciences Corporation (NASDAQ:EXAS) in its Q1 2025 investor letter:
"We were concerned that the longer-than-anticipated reorganization of Exact Sciences Corporation's (NASDAQ:EXAS) salesforce might lead to medium-term growth falling short of our expectations. As a result, we reallocated capital to higher conviction names."
A research team in a laboratory discussing the results of a lab screening test for biomarkers.
Exact Sciences Corporation (NASDAQ:EXAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Exact Sciences Corporation (NASDAQ:EXAS) at the end of the first quarter, which was 49 in the previous quarter. Exact Sciences Corporation’s (NASDAQ:EXAS) first quarter revenue experienced 11% rise on reported and core basis exceeding the mid pint of guidance over $19 million. While we acknowledge the potential of Exact Sciences Corporation (NASDAQ:EXAS) 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 undervalued AI stock set for massive gains.
