Parnassus Growth Equity Fund Increased its Position in GE Vernova (GEV)

Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Fund (Investor Shares) returned -8.59% (net of fees), outperforming the Russell 1000 Growth Index’s -9.97% decline. In the first quarter, post-election optimism, driven by reduced regulation and a business-friendly environment, drifted away to concerns over fiscal and tariff uncertainties, which increased volatility and raised fears of a recession. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Growth Equity Fund highlighted stocks such as GE Vernova Inc. (NYSE:GEV). GE Vernova Inc. (NYSE:GEV) is an energy company that offers products and services that generate, transfer, orchestrate, convert, and store electricity. The one-month return of GE Vernova Inc. (NYSE:GEV) was 7.15%, and its shares gained 195.50% of their value over the last 52 weeks. On June 26, 2025, GE Vernova Inc. (NYSE:GEV) stock closed at $506.81 per share, with a market capitalization of $138.326 billion.

Parnassus Growth Equity Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q1 2025 investor letter:

"GE Vernova Inc. (NYSE:GEV), an energy equipment manufacturer, was impacted by concerns around the durability of AI and semiconductor spending and the durability of AI supply chain power needs.

GE Vernova has exceeded market expectations since its spin-off from General Electric in April 2024. As a global leader in the gas turbine market, it stands to gain from rising power demand, decarbonization and grid modernization. The experienced management team has executed effectively, positioning the company for a multiyear turnaround through organizational simplification, focused product offerings and cost reduction measures."

GE Vernova Inc. (NYSE:GEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 111 hedge fund portfolios held GE Vernova Inc. (NYSE:GEV) at the end of the first quarter, which was 111 in the previous quarter. While we acknowledge the potential of GE Vernova Inc. (NYSE:GEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered GE Vernova Inc. (NYSE:GEV) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of NOW 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.

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Disclosure: None. This article is originally published at Insider Monkey.