Parnassus Core Equity Fund Sold Verizon Communications (VZ) as it Fell Short of Expectations
Parnassus Investments, an investment management company, released the 'Parnassus Core Equity Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund (Investor Shares) fell -2.44% (net of fees) in the quarter, outperforming the S&P 500 Index's -4.27% return. U.S. equities fell in the first quarter, showing a shift from the robust gains of the previous quarter. 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 Core Equity Fund highlighted stocks such as Verizon Communications Inc. (NYSE:VZ). Verizon Communications Inc. (NYSE:VZ) engages in the provision of communications, technology, information, and entertainment products and services. The one-month return of Verizon Communications Inc. (NYSE:VZ) was -4.23%, and its shares gained 2.09% of their value over the last 52 weeks. On June 26, 2025, Verizon Communications Inc. (NYSE:VZ) stock closed at $42.10 per share, with a market capitalization of $177.504 billion.
Parnassus Core Equity Fund stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q1 2025 investor letter:
"In the Communication Services sector, we increased the Fund's underweight versus the benchmark by selling Verizon Communications Inc. (NYSE:VZ), as we see deteriorating fundamentals in the wireless business and found more attractive defensive exposure elsewhere.
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Verizon Communications Inc. (NYSE:VZ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Verizon Communications Inc. (NYSE:VZ) at the end of the first quarter, which was 74 in the previous quarter. While we acknowledge the potential of Verizon Communications Inc. (NYSE:VZ) 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.
In another article, we covered Verizon Communications Inc. (NYSE:VZ) and shared the list of best dividend leaders. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of VZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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