Parnassus Investments, an investment management company, has published the investor letter “Parnassus Mid Cap Fund” for the third quarter of 2024. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 8.55% (net of fees), exceeding the Russell Midcap Index return of 6.54%. Stock selection in healthcare contributed to the portfolio’s outperformance, while stock selection in real estate detracted from performance. The fund’s focus on quality attributes has benefited from reduced cyclical pressures and company-specific opportunities. Also, please check out the fund’s top five holdings to know the best picks in 2024.

Parnassus Mid Cap Fund highlighted stocks like Atlassian Corporation (NASDAQ:TEAM) in its Q3 2024 investor letter. Atlassian Corporation (NASDAQ:TEAM) is a company that designs, develops, licenses and maintains various software products. Atlassian Corporation (NASDAQ:TEAM)’s one-month return was 11.68%, and its shares gained 25.80% of their value over the last 52 weeks. On December 12, 2024, Atlassian Corporation (NASDAQ:TEAM) stock closed at $279.18 per share with a market cap of $71.528 billion.

Parnassus Mid Cap Fund stated the following regarding Atlassian Corporation (NASDAQ:TEAM) in its third quarter 2024 investor letter:

“Atlassian Corporation (NASDAQ:TEAM), a workflow software provider, faced near-term volatility due to the migration of its on-premises software offerings to the cloud. The company’s growth potential remains strong and its earnings outlook is expected to improve once the transition to the cloud is complete.”

A modern software engineering team sits together at their desks and discusses a software solution.

Atlassian Corporation (NASDAQ:TEAM) isn’t on our list of the 31 most popular stocks among hedge funds. According to our database, 44 hedge fund portfolios held Atlassian Corporation (NASDAQ:TEAM) at the end of the third quarter, up from 47 the previous quarter. While we recognize Atlassian Corporation (NASDAQ:TEAM)’s potential as an investment, we believe that AI Stocks are more promising to deliver higher returns, within a shorter time frame. If you’re looking for an AI stock that has the same promise as NVIDIA but costs less than five times its earnings, check out our report on it cheapest AI stock.

In another article, we talked about Atlassian Corporation (NASDAQ:TEAM) and shared the list of stocks that Jim Cramer recently discussed. You can also find additional investor letters from hedge funds and other leading investors on our Q3 2024 Hedge Fund Investor Letters page.

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