Parnassus Mid Cap’s Bets on Industrials and Tech Take Off
The past year was full of highs and lows in the stock market overall. But for midsize company stocks, 2020 was less extreme. “I would put it smack in the middle,” says Parnassus Mid Cap ( PARMX ) comanager Matt Gershuny. Over the past 12 months, the fund, a member of the Kiplinger 25 , the list of our favorite no-load funds, gained 9.5%. That beat 76% of its peers, but lagged the 10.0% gain in the fund’s benchmark, the Russell Midcap index. SEE MORE The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks Gershuny and comanager Lori Keith took over at Mid Cap in late 2008, during the financial crisis. The duo have beaten the benchmark since then by investing in growing, well-run midsize firms that pass strenuous environmental, social and governance measures. Mid Cap’s 11.6% annualized return since the pair took over edges the 11.5% average annual gain in the Russell Midcap index. “We keep up in strong markets and do better when markets go down,” says Gershuny. Recently, the fund has gained from strong performances in a handful of industrial stocks, including shipping company FedEx ( FDX ) (up 73% over the past 12 months) and global logistics company Expeditors International ( EXPD ) (up 16%), which helps get goods to market or to customers. “Shipping capabilities are down on commercial flights, and FedEx and Expeditors have picked up the slack,” says Gershuny.
Parnassus Mid Cap’s Bets on Industrials and Tech Take Off
The past year was full of highs and lows in the stock market overall. But for midsize company stocks, 2020 was less extreme. “I would put it smack in the middle,” says Parnassus Mid Cap ( PARMX ) comanager Matt Gershuny. Over the past 12 months, the fund, a member of the Kiplinger 25 , the list of our favorite no-load funds, gained 9.5%. That beat 76% of its peers, but lagged the 10.0% gain in the fund’s benchmark, the Russell Midcap index. SEE MORE The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks Gershuny and comanager Lori Keith took over at Mid Cap in late 2008, during the financial crisis. The duo have beaten the benchmark since then by investing in growing, well-run midsize firms that pass strenuous environmental, social and governance measures. Mid Cap’s 11.6% annualized return since the pair took over edges the 11.5% average annual gain in the Russell Midcap index. “We keep up in strong markets and do better when markets go down,” says Gershuny. Recently, the fund has gained from strong performances in a handful of industrial stocks, including shipping company FedEx ( FDX ) (up 73% over the past 12 months) and global logistics company Expeditors International ( EXPD ) (up 16%), which helps get goods to market or to customers. “Shipping capabilities are down on commercial flights, and FedEx and Expeditors have picked up the slack,” says Gershuny.