Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” second quarter of 2026 investor letter. A copy of the letter can be downloaded here. The fund returned 16.83% in the second quarter of 2026, outperforming the S&P 500’s 15.20% gain. Performance was supported by holdings in Information Technology and Communication Services, as well as the fund’s lack of Energy exposure, while Financials and Health Care detracted. The fund is positioning for long-term growth through AI infrastructure, semiconductors, electrification and industrial automation, while maintaining defensive positions in quality compounders. Looking ahead, the manager remains constructively bullish on U.S. equities but cautious about narrow market leadership, trade tensions, inflation, and geopolitical risks. The fund continues to favor high-quality, competitively advantaged businesses at attractive valuations, with a balanced approach to capturing AI-driven opportunities while limiting downside risk. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Parnassus Core Equity Fund highlighted stocks like Hubbell Incorporated (NYSE:HUBB). Hubbell Incorporated (NYSE:HUBB) manufactures electrical and utility products that support power transmission, distribution, and industrial infrastructure. The one-month return of Hubbell Incorporated (NYSE:HUBB) was 3.77% while its shares traded between $403.82 and $565.50 over the last 52 weeks. On August 13, 2026, Hubbell Incorporated (NYSE:HUBB) stock closed at approximately $512.90 per share, with a market capitalization of about $26.80 billion.
Parnassus Core Equity Fund stated the following regarding Hubbell Incorporated (NYSE:HUBB) in its Q2 2026 investor letter:
Hubbell Incorporated (NYSE:HUBB), as a leading provider of utility equipment, serves a critical role in helping utilities modernize and expand their networks, supported by a strong market position, a broad product portfolio and a history of successful acquisitions. We believe the company is well positioned to benefit from growing investment in the U.S. electrical grid and the rising demand for power driven by electrification and AI-related infrastructure needs.
Hubbell Incorporated (NYSE:HUBB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 48 hedge fund portfolios held Hubbell Incorporated (NYSE:HUBB) at the end of the first quarter, which was 36 in the previous quarter. While we acknowledge the risk and potential of Hubbell Incorporated (NYSE:HUBB) 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 Hubbell Incorporated (NYSE:HUBB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Hubbell Incorporated (NYSE:HUBB) and shared the list of the best grid modernization stocks to buy for AI infrastructure. In addition, please check out our hedge fund investor letters Q1 2026 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.
