Parnassus Core Equity Fund Reestablished a Position in BILL Holdings (BILL). Here's Why

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a robust second quarter in which markets rebounded from the sell-off, the Russell Mid Cap Index continued to rise, delivering impressive returns for the quarter. The Fund (Investor Shares) returned 5.49% (net of fees) in the quarter, compared to a 5.33% return for the Russell Midcap 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 BILL Holdings, Inc. (NYSE:BILL). BILL Holdings, Inc. (NYSE:BILL) provides cloud-based software solutions to simplify, digitize, and automate complex back-office financial operations. The one-month return of BILL Holdings, Inc. (NYSE:BILL) was 16.66%, and its shares lost 45.78% of their value over the last 52 weeks. On December 03, 2025, BILL Holdings, Inc. (NYSE:BILL) stock closed at $51.76 per share, with a market capitalization of $5.196 billion.

Parnassus Core Equity Fund stated the following regarding BILL Holdings, Inc. (NYSE:BILL) in its third quarter 2025 investor letter:

"We reinitiated a position in BILL Holdings, Inc. (NYSE:BILL), a category-leading financial operations platform in the vast and underpenetrated market for small and medium-sized businesses. We believe there is meaningful room for revenue acceleration as more small and medium-sized businesses digitize back-office workflows, and management is refocusing on operating margin improvement. The company benefits from a wide moat driven by its distribution partnerships, network effects with thousands of accounting firms and relationships with leading financial institutions. BILL's large and underpenetrated addressable market provides a long runway for growth, and we took advantage of buying the stock at a compelling valuation."

BILL Holdings, Inc. (NYSE:BILL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held BILL Holdings, Inc. (NYSE:BILL) at the end of the third quarter, which was 45 in the previous quarter. While we acknowledge the potential of BILL Holdings, Inc. (NYSE:BILL) 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 BILL Holdings, Inc. (NYSE:BILL) and shared 13D Activist 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.