Parnassus Core Equity Fund (Investor Shares) returned -6.17% (net of fees) during the quarter, underperforming the S&P 500 Index's -4.33%.
Our holdings in the Health Care sector hurt performance, along with a lack of exposure to the Energy and Utilities sectors. On the upside, holdings in the Industrials and Consumer Discretionary sectors buoyed relative results.
We have not made any event-driven positioning shifts in response to the geopolitical conflicts in the Middle East as we continue to pursue downside mitigation while remaining open to compelling opportunities.
We continuously review our position sizes and valuations in response to evolving risk/reward opportunities.
We remain committed to our disciplined investment process, seeking increasingly relevant, competitively advantaged businesses at attractive valuations with the goal of creating enduring value for our investors.
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Market Review
The S&P 500 Index faced a volatile first quarter, shaped by escalating geopolitical tensions and a spike in oil prices related to the conflict in Iran, which supported Energy and defense stocks. Despite the uncertainty, the
