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 Fidelity National Information Services, Inc. (NYSE:FIS). Fidelity National Information Services, Inc. (NYSE:FIS) is a multinational financial technology company that provides solutions to financial institutions, businesses, and developers. On March 30, 2026, Fidelity National Information Services, Inc. (NYSE:FIS) closed at $47.45 per share. One-month return of Fidelity National Information Services, Inc. (NYSE:FIS) was -5.61%, and its shares lost 36.37% over the past 52 weeks. Fidelity National Information Services, Inc. (NYSE:FIS) has a market capitalization of $24.572 billion.
Parnassus Mid Cap Fund stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its fourth quarter 2025 investor letter:
“Fidelity National Information Services, Inc. (NYSE:FIS) shares detracted due to concerns that its growth rate is declining due to rising price intensity and fewer bank account openings. Fidelity National offers a comprehensive suite of technology and outsourcing services to facilitate financial transactions and operations. We exited Fidelity National given our reduced conviction in its long term structural growth prospects.”
Fidelity National Information Services, Inc. (NYSE:FIS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held Fidelity National Information Services, Inc. (NYSE:FIS) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Fidelity National Information Services, Inc. (NYSE:FIS) 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 Fidelity National Information Services, Inc. (NYSE:FIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Fidelity National Information Services, Inc. (NYSE:FIS) and shared the list of high PE stocks insiders are buying. 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.
