Parnassus Mid Cap Fund Sold Guidewire Software (GWRE) After Achieving Investment Thesis

3 days ago 3

Soumya Eswaran

Tue, March 31, 2026 astatine 9:33 AM CDT 3 min read

Parnassus Investments, an concern absorption company, released the “Parnassus Mid Cap Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive is disposable to download here. The Q4 2025 marked the fund’s consecutive 4th of outperformance, returning 1.17% (net of fees) successful the quarter, surpassing 0.16% instrumentality for the Russell Midcap Index. The show was supported by investments successful the Information Technology sector, arsenic good arsenic holdings successful Utilities. During the quarter, the marketplace started to turn beyond artificial intelligence. YTD, the Fund returned 12.85% (net of fees) compared to 10.60% instrumentality for the index. Looking up to 2026, the Fund is optimistic, arsenic mid-cap stocks whitethorn thrust the marketplace upward if economical maturation continues to grow beyond AI. In the lawsuit of a marketplace decline, the Fund believes that its portfolio of starring companies with coagulated fiscal positions volition supply downside protection. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Parnassus Mid Cap Fund highlighted stocks similar Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) is simply a starring supplier of cloud-based bundle for spot and casualty (P&C) security companies. On March 30, 2026, Guidewire Software, Inc. (NYSE:GWRE) banal closed astatine $144.90 per share. Guidewire Software, Inc. (NYSE:GWRE) delivered a -4.63% instrumentality successful the past month, and its shares mislaid 23.96% implicit the past 12 months. Guidewire Software, Inc. (NYSE:GWRE) has a marketplace capitalization of $12.27 billion.

Parnassus Mid Cap Fund stated the pursuing regarding Guidewire Software, Inc. (NYSE:GWRE) successful its 4th fourth 2025 capitalist letter:

"We exited 3 stocks arsenic we felt their valuations were excessively precocious for their expected maturation rates. We exited Guidewire Software, Inc. (NYSE:GWRE) due to the fact that it had fulfilled our concern thesis and instrumentality people and we saw opportunities to redeploy the capital."

Why Guidewire Software Inc (GWRE) is Skyrocketing So Far successful 2025?

Guidewire Software, Inc. (NYSE:GWRE) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 69 hedge money portfolios held Guidewire Software, Inc. (NYSE:GWRE) astatine the extremity of the 4th quarter, compared to 72 successful the erstwhile quarter. While we admit the imaginable of Guidewire Software, Inc. (NYSE:GWRE) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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