Overview
- Parnassus, in a Q4 2025 investor letter published Tuesday, reported a 1.17% net return that beat the Russell Midcap Index’s 0.16%.
- The manager said it expects mid-caps to benefit as leadership spreads beyond AI and is tilting the portfolio to better cushion any downturn.
- It added CMS Energy to gain steadier earnings backed by a supportive Michigan regulatory framework and clear long-term investment plans.
- It also bought Chipotle, citing new menu items, a refreshed marketing push, and easing inflation that could restart growth in 2026.
- It sold FIS and Brown & Brown due to weaker growth drivers, exited Atlassian on AI disruption risk to its seat-based model, and flagged The Trade Desk after Amazon’s pricing pressure raised concern about a slower growth path.