Latest news with #investmentmanagement
Yahoo
3 hours ago
- Business
- Yahoo
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. A smiling customer receiving customer contact center solutions on their smartphone. 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.
Yahoo
3 hours ago
- Business
- Yahoo
Parnassus Core Equity Fund Sold D.R. Horton (DHI) Due to Uncertain Housing Demand
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 D.R. Horton, Inc. (NYSE:DHI). D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company. The one-month return of D.R. Horton, Inc. (NYSE:DHI) was 7.70%, and its shares lost 9.78% of their value over the last 52 weeks. On June 26, 2025, D.R. Horton, Inc. (NYSE:DHI) stock closed at $127.15 per share, with a market capitalization of $39.058 billion. Parnassus Core Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q1 2025 investor letter: "We also repositioned to increase our underweight in Consumer Discretionary by selling homebuilder D.R. Horton, Inc. (NYSE:DHI) amid uncertainty and increasing risk to housing fundamentals. D.R. Horton's cycle risk is now more accurately priced in. Additionally, housing demand prospects in the areas where the company operates remain uncertain." A construction site of a multi-family residential complex, a modern urban skyline in the background. D.R. Horton, Inc. (NYSE:DHI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held D.R. Horton, Inc. (NYSE:DHI) at the end of the first quarter, which was 60 in the previous quarter. In the fiscal second quarter of 2025, D.R. Horton, Inc. (NYSE:DHI) reported revenue of $7.7 billion, down 15% from prior year's quarter. While we acknowledge the potential of D.R. Horton, Inc. (NYSE:DHI) 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 D.R. Horton, Inc. (NYSE:DHI) and shared the list of stocks Jim Cramer recently discussed. 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 DHI 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.
Globe and Mail
15 hours ago
- Business
- Globe and Mail
AIMCo interim CEO could earn millions in bonus pay after leadership overhaul
Alberta Investment Management Corp.'s interim chief executive officer could earn a multimillion dollar compensation package after the provincial pension fund manager's senior ranks were overhauled and its former chief investment officer received millions of dollars in severance pay. Ray Gilmour stepped in as interim CEO last November after a career as a senior public servant, following the Alberta government's abrupt purge of AIMCo's board and senior management. Mr. Gilmour was paid $241,869 in less than five months on the job, to March 31, according to AIMCo's annual report released Friday. That included $210,796 in base salary, plus pension contributions and other pay. When prorated for a full fiscal year, Mr. Gilmour could be paid an annual base salary of more than $500,000. Mr. Gilmour is also part of AIMCo's corporate incentive plan, which sets his base target for bonus pay at 355 per cent of his salary, or about $1.78-million, according to a copy of his employment contract obtained by The Globe and Mail under an access to information request. Alberta's purge at AIMCo followed a clash of visions, complaints about leadership However, the agreement says that Mr. Gilmour can earn a maximum of 2.5 times that incentive target, and it has been customary for previous AIMCo CEOs to earn approximately 1.75 times the target payment for good performance. At that level, Mr. Gilmour would earn about $3.1-million in incentive pay, for total compensation of at least $3.6-million. AIMCo's annual report does not list any incentive payments to Mr. Gilmour as of March 31. His base salary is redacted in the documents released to The Globe. 'Our compensation structure is based on market salaries in similar Canadian institutional investment organizations, with executive compensation and associated terms discussed and validated by the Board's independent compensation adviser,' AIMCo spokesperson Sabrina Bhangoo said in an e-mailed statement. Though Mr. Gilmour was appointed as interim CEO, his employment agreement says that AIMCo wishes to employ him 'as Chief Executive Officer,' and does not mention his interim status. AIMCo's annual report shows that the pension fund manager also appears to have paid millions of dollars to former CIO Marlene Puffer as a 'transition agreement payment.' Ms. Puffer left AIMCo in September, roughly six weeks before Alberta's government dismissed other senior leaders. Ms. Puffer was paid $5.91-million in 'other compensation,' which includes the transition payment that would have been agreed to under previous leadership. She also earned more than $250,000 in base salary. 'The separation arrangement disclosed is in keeping with our contractual obligations made by previous leadership. No additional compensation is owing,' AIMCo's statement said. Former CEO Evan Siddall, who was dismissed in November, appears not to have come to terms financially with AIMCo as of March 31. He was paid $1.56-million in total compensation last fiscal year but received no transition arrangement payment during the fiscal year, according to the annual report. In his last full fiscal year as CEO, Mr. Siddall was paid $3.77-million in total compensation, and nearly $4.6-million in total direct compensation, including $585,000 in base salary. The report also says AIMCo paid $957,397 to third parties on behalf of the former CEO, and that $458,312 had not yet been reimbursed as of March 31, 'inclusive of imputed interest.' AIMCo has included that amount in 'accounts receivable.' Stephen Harper, the former prime minister who was appointed chair of AIMCo's board in November, said 'there is more work ahead in our task of restoring confidence and stability in Alberta's investment manager,' in a message in the annual report. 'We are making progress with the new management team on ensuring that sound governance, ambitious objectives, professional operation, and responsible risk management permeate the firm,' Mr. Harper said. In his own message in the annual report, Mr. Gilmour said that in the coming months AIMCo 'will be focused on the continuation of a business transformation program to improve the technology, data and processes that are the foundation of the work we do on behalf of our clients.'
Yahoo
2 days ago
- Business
- Yahoo
Here's Why Cigna Group (CI) Surged in Q1
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 The Cigna Group (NYSE:CI). The Cigna Group (NYSE:CI) is a US-based insurance company that offers insurance and related products and services. The one-month return of The Cigna Group (NYSE:CI) was 1.27%, and its shares lost 5.43% of their value over the last 52 weeks. On June 25, 2025, The Cigna Group (NYSE:CI) stock closed at $316.00 per share, with a market capitalization of $84.417 billion. Parnassus Core Equity Fund stated the following regarding The Cigna Group (NYSE:CI) in its Q1 2025 investor letter: "The Cigna Group (NYSE:CI), a manager of health care plans, benefited from the market's perception that it is a more stable investment option than other health insurance companies in the current environment, given its minimal exposure to federal government spending and relatively low exposure to insurance risk." A hospital technician using a laptop to review health benefit plans of a patient in the ward. The Cigna Group (NYSE:CI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held The Cigna Group (NYSE:CI) at the end of the first quarter, which was 72 in the previous quarter. While we acknowledge the potential of The Cigna Group (NYSE:CI) 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 The Cigna Group (NYSE:CI) and shared billionaire Leon Cooperman's stock picks with huge upside potential. The Cigna Group (NYSE:CI) detracted from Parnassus Core Equity Fund's performance in the fourth quarter and 2024. 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 CI 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.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Morgan Stanley Jumps 11.2% in 3 Months: How to Play the Stock?
Morgan Stanley MS shares have gained 11.2% in the past 3 months, outperforming the S&P 500 Index's 5.2% rise and its industry 's 10% growth. Moreover, the stock has performed better than its peers, Bank of America BAC and Citigroup C. The BAC stock has moved up 9%, whereas shares of Citigroup have rallied 10.8% in the same time frame. Price Performance Does the MS stock have more upside left despite showing recent strength in share price? Let us find out. What's Aiding Morgan Stanley's Performance? Increased Focus on Wealth & Asset Management Operations: Morgan Stanley has lowered its reliance on the capital markets for income generation. It has now been focusing on expanding its wealth and asset management operations. The acquisitions of Eaton Vance, E*Trade Financial and Shareworks are also steps in this direction. These moves have bolstered the company's diversification efforts, enhanced stability and created a more balanced revenue stream across market cycles. The wealth and asset management businesses' aggregate contribution to total net revenues jumped to more than 55% in 2024 from 26% in 2010. We project both segments' total contribution (in aggregate) to the top line to be 52.7% in 2025. The wealth management segment's total client assets witnessed a five-year (2019-2024) compound annual growth rate (CAGR) of 18.1%, while the investment management segment's total assets under management saw a CAGR of 24.7% over the same period. The upward momentum is expected to continue as the operating environment becomes more favorable. Strategic Alliances: Morgan Stanley's partnership with Mitsubishi UFJ Financial Group, Inc. will likely keep supporting its profitability. In 2023, the companies announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures. The new alliance saw combined Japanese equity research, sales and execution services for institutional clients at Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities. Also, their equity underwriting business has been rearranged between the two brokerage units. These efforts will solidify the company's position in Japan's market. Also, this has helped the company achieve record equity net revenues in the first quarter of 2025, particularly in Asia, through outperformance in prime brokerage and derivatives, led by solid client activity amid heightened volatility. Further, the company's Asia region revenues jumped 34.5% year over year to $2.35 billion in the quarter. Solid Balance Sheet & Capital Position: Morgan Stanley has a solid balance sheet. As of March 31, 2025, the company had long-term debt of $297 billion, with only approximately $23 billion expected to mature over the next 12 months. The company's average liquidity resources were $351.7 billion as of the same date. MS's capital distribution plans have been impressive. Following the 2024 stress test results, it announced an increase in its quarterly dividend by 8.8% to 92.5 cents per share. It also reauthorized a multi-year share repurchase program of up to $20 billion, effective the third quarter of 2024 and with no expiration date. Given its solid liquidity position and earnings strength, the company is expected to be able to continue with efficient capital distribution activities, thus enhancing shareholder value. What's Hurting MS's Growth Rising Expense Base: Despite Morgan Stanley's restructuring and streamlining efforts that resulted in achieving its cost savings target of $1 billion in 2017, overall expenses have been increasing. Though expenses declined in 2022, the metric witnessed a five-year (ended 2024) CAGR of 7.8%. The rising trend continued in the first quarter of 2025. Expenses are expected to remain elevated on the steady increase in revenues (leading to higher compensation costs) and inflation, as well as the company's investments in franchise and inorganic growth efforts. Expense Trend Reliance on Trading Revenues: Morgan Stanley's over-dependence on trading revenues is worrisome. While sales and trading revenues improved in 2021, 2022 and 2024, they declined in 2023. Because of the uncertainty surrounding the tariff plans, trading revenues increased again in the first quarter of 2025. However, the volatile nature of the business and the expectation that it will gradually normalize toward the pre-pandemic level are likely to make growth challenging in the upcoming quarters. How to Approach Morgan Stanley Stock Now MS's efforts to become less dependent on capital markets-driven revenues, its inorganic expansion efforts/strategic alliances, along with relatively high rates, are expected to support financials. Moreover, supported by a solid balance sheet position, the company is expected to be able to meet near-term debt obligations, even if the economic situation worsens. Earnings Estimates Rising expenses, given higher compensation costs and inorganic growth efforts, will likely hurt the company's profitability in the near term. High reliance on trading revenues is another headwind. Hence, investors should not rush to buy the MS stock now; instead, they should keep this Zacks Rank #3 (Hold) stock on their radars and wait for an attractive entry point. Those who already own the MS stock in their portfolio can hold on to it because it is less likely to disappoint over the long term. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Bank of America Corporation (BAC): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report
