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 stocks like Ingersoll Rand Inc. (NYSE:IR). Ingersoll Rand Inc. (NYSE:IR) is an industrial machinery company that provides mission-critical air, fluid, clean energy, and medical technologies services and solutions. On March 30, 2026, Ingersoll Rand Inc. (NYSE:IR) closed at $76.94 per share. One-month return of Ingersoll Rand Inc. (NYSE:IR) was -15.95%, and its shares lost 4.55% over the past 52 weeks. Ingersoll Rand Inc. (NYSE:IR) has a market capitalization of $30.13 billion.
Parnassus Mid Cap Fund stated the following regarding Ingersoll Rand Inc. (NYSE:IR) in its fourth quarter 2025 investor letter:
“The first newcomer is Ingersoll Rand Inc. (NYSE:IR), a manufacturer of compressed air systems and fluid management products. The U.S. manufacturing industry has endured a down-cycle for several years, and we believe that Ingersoll Rand is well positioned for an inflection that we expect to happen within our investment horizon. Ingersoll Rand is a global industrial company that manufactures essential equipment, including air compressors, pumps and power tools. We anticipate a recovery in industrial activity as the Fed lowers interest rates and as the large pipeline of construction megaprojects are built as planned. In that scenario, Ingersoll Rand could see accelerating revenue growth.”
Ingersoll Rand Inc. (NYSE:IR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 37 hedge fund portfolios held Ingersoll Rand Inc. (NYSE:IR) at the end of the fourth quarter, compared to 46 in the previous quarter. While we acknowledge the risk and potential of Ingersoll Rand Inc. (NYSE:IR) 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 Ingersoll Rand Inc. (NYSE:IR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ingersoll Rand Inc. (NYSE:IR) and shared a list of growth stock picks by Ken Fisher. 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.
