Parnassus Core Equity Fund Sold Intuit (INTU) After Share Price Appreciation

Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index surged in the third quarter, driven by investor optimism that grew on expectations of monetary easing, strong consumer demand, and solid corporate earnings. The Fund (Investor Shares) returned 2.57% (net of fees) in the quarter, trailing the S&P 500 Index’s 8.12% return. YTD, the fund returned 9.89% compared to 14.83% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management and compliance products and services. The one-month return of Intuit Inc. (NASDAQ:INTU) was 4.19%, and its shares gained 4.64% of their value over the last 52 weeks. On December 22, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $675.21 per share, with a market capitalization of $187.977 billion.

Parnassus Core Equity Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its third quarter 2025 investor letter:

"In the IT sector, we sold Intuit after strong performance to lock in gains and shift capital to higher-conviction and more-defensive positions in the portfolio. We sold Intuit Inc. (NASDAQ:INTU) to lock in gains following outperformance, while adding to Salesforce and Workday, resulting in a slight trim to our overall software allocation but a focus on higher-conviction names."

Intuit Inc (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, which was 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an increase of 18% year-over-year. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared Magellan Global Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 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.