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 CMS Energy Corporation (NYSE:CMS). CMS Energy Corporation (NYSE:CMS) is a Michigan-based energy company that provides electricity and natural gas utility operations. On March 30, 2026, CMS Energy Corporation (NYSE:CMS) closed at $77.21 per share. One-month return of CMS Energy Corporation (NYSE:CMS) was -0.76%, and its shares gained 2.75% over the past 52 weeks. CMS Energy Corporation (NYSE:CMS) has a market capitalization of $23.66 billion.
Parnassus Mid Cap Fund stated the following regarding CMS Energy Corporation (NYSE:CMS) in its fourth quarter 2025 investor letter:
“We also added Michigan-based utility CMS Energy Corporation (NYSE:CMS), which operates in a constructive regulatory backdrop and offers clear visibility to long-term growth. CMS Energy is a stable, well-managed utility with a strong track record of consistent growth, supported by a highly constructive regulatory environment in Michigan. The company’s current capital investment plan and other initiatives are expected to modestly accelerate earnings growth. Adding CMS Energy enhances the portfolio’s defensive positioning and reduces the portfolio’s underweight to Utilities.”
CMS Energy Corporation (NYSE:CMS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 52 hedge fund portfolios held CMS Energy Corporation (NYSE:CMS) at the end of the fourth quarter, up from 42 in the previous quarter. While we acknowledge the risk and potential of CMS Energy Corporation (NYSE:CMS) 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 CMS Energy Corporation (NYSE:CMS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CMS Energy Corporation (NYSE:CMS) and shared a list of best regulated electric stocks to buy according to hedge funds. 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.
