Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” fourth-quarter 2025 investor letter. A copy of the letter is available to download here. The Q4 2025 marked the fund’s consecutive quarter of outperformance, returning 1.17% (net of fees) in the quarter, surpassing 0.16% return for the Russell Midcap Index. The performance was supported by investments in the Information Technology sector, as well as holdings in Utilities. During the quarter, the market started to grow beyond artificial intelligence. YTD, the Fund returned 12.85% (net of fees) compared to 10.60% return for the index. Looking ahead to 2026, the Fund is optimistic, as mid-cap stocks may drive the market upward if economic growth continues to expand beyond AI. In the event of a market decline, the Fund believes that its portfolio of leading companies with solid financial positions will provide downside protection. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Parnassus Mid Cap Fund highlighted Brookfield Renewable Corporation (NYSE:BEPC) as one of its leading contributors. Brookfield Renewable Corporation (NYSE:BEPC) is a renewable energy company that owns and operates a portfolio of renewable power and sustainable solution assets. On March 30, 2026, Brookfield Renewable Corporation (NYSE:BEPC) closed at $38.98 per share. One-month return of Brookfield Renewable Corporation (NYSE:BEPC) was -6.09%, and its shares gained 36.29% over the past 52 weeks. Brookfield Renewable Corporation (NYSE:BEPC) has a market capitalization of $7.03 billion.
Parnassus Mid Cap Fund stated the following regarding Brookfield Renewable Corporation (NYSE:BEPC) in its fourth quarter 2025 investor letter:
“Brookfield Renewable Corporation (NYSE:BEPC) is another beneficiary of the AI build out. The stock was supported during the quarter due to an $80 billion strategic partnership that Westinghouse, a majority-owned investment of Brookfield, signed with the U.S. Department of Commerce to build nuclear reactors for data centers.”
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Brookfield Renewable Corporation (NYSE:BEPC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 25 hedge fund portfolios held Brookfield Renewable Corporation (NYSE:BEPC) at the end of the fourth quarter, compared to 27 in the previous quarter. While we acknowledge the risk and potential of Brookfield Renewable Corporation (NYSE:BEPC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Brookfield Renewable Corporation (NYSE:BEPC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Brookfield Renewable Corporation (NYSE:BEPC) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
