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 The Trade Desk, Inc. (NASDAQ:TTD). The Trade Desk, Inc. (NASDAQ:TTD) is a leading technology company that specializes in digital advertising campaigns. On March 30, 2026, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $22.01 per share. One-month return of The Trade Desk, Inc. (NASDAQ:TTD) was -10.10%, and its shares lost 60.64% over the past 52 weeks. The Trade Desk, Inc. (NASDAQ:TTD) has a market capitalization of around $10.48 billion.
Parnassus Mid Cap Fund stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its fourth quarter 2025 investor letter:
“The Trade Desk, Inc. (NASDAQ:TTD) stock dropped after management released sluggish revenue guidance, sparking concerns that its growth may be secularly slowing as Amazon’s aggressive pricing tactics have increased the competitive intensity of the industry.”
The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 60 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the fourth quarter, up from 42 in the previous quarter. While we acknowledge the risk and potential of The Trade Desk, Inc. (NASDAQ:TTD) 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 The Trade Desk, Inc. (NASDAQ:TTD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Trade Desk, Inc. (NASDAQ:TTD) and shared Brown Advisory Mid-Cap Growth Strategy’s views 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.
