Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the Fund (Investor Shares) returned 3.74% (net of fees) underperforming the Russell 1000 Growth Index’s 8.33%. Stock selection in the Information Technology sector primarily drove the portfolio’s underperformance. Also, overweight position and stock selection in the Financials sector detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Growth Equity Fund highlighted stocks like Adyen N.V. (OTC:ADYEY) in the second quarter 2024 investor letter. Adyen N.V. (OTC:ADYEY) is a payment platform operator. Adyen N.V. (OTC:ADYEY) one-month return was 4.77%, and its shares gained 125.34% of their value over the last 52 weeks. On June 3, 2024, Adyen N.V. (OTC:ADYEY) stock closed at $15.41 per share with a market capitalization of $48.217 billion.

Parnassus Growth Equity Fund stated the following regarding Adyen N.V. (OTC:ADYEY) in its Q2 2024 investor letter:

Adyen N.V. (OTC:ADYEY) shares tumbled during the quarter as investors were disappointed that the payments processor met but did not exceed revenue expectations. Encouragingly, the company reported an expansion of its relationship with a key digital customer and reiterated optimistic medium-term guidance.

A customer making a purchase at a modern retail store terminal, showing the ubiquity of the company’s payment solutions.

Adyen N.V. (OTC:ADYEY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Adyen N.V. (OTC:ADYEY) 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 cheapest AI stock.

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