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 such as Chipotle Mexican Grill, Inc. (NYSE:CMG). Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. On March 30, 2026, Chipotle Mexican Grill, Inc. (NYSE:CMG) closed at $31.16 per share. One-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was -15.62%, and its shares lost 39.69% over the past 52 weeks. Chipotle Mexican Grill, Inc. (NYSE:CMG) has a market capitalization of $41.202 billion.
Parnassus Mid Cap Fund stated the following regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) in its fourth quarter 2025 investor letter:
“Our third addition was Chipotle Mexican Grill, Inc. (NYSE:CMG), the fast-casual restaurant chain. The company’s growth stalled in 2025 in part due to inflationary pressures on its price-sensitive customers and a lack of new initiatives to drive growth. We think 2026 will be a better year for the company as new menu items have been introduced, its marketing message is evolving and inflationary pressures could subside. Chipotle is a leader in the fast-casual dining category, bolstered by strong brand affinity, popularity with Gen Z, and the growing trend toward healthy eating. We think the company’s value proposition is unique and store operations are attractive, giving the company a long runway for growth.”
Chipotle Mexican Grill, Inc. (NYSE:CMG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 77 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of the fourth quarter, up from 65 in the previous quarter. While we acknowledge the risk and potential of Chipotle Mexican Grill, Inc. (NYSE:CMG) 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 Chipotle Mexican Grill, Inc. (NYSE:CMG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Chipotle Mexican Grill, Inc. (NYSE:CMG) and shared the list of best restaurant stocks to buy for growth in 2026. In its Q4 2025, Brown Advisory Mid-Cap Growth Strategy noted that Chipotle Mexican Grill, Inc. (NYSE:CMG) declined due to softer-than-expected comparable sales. 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.
