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 Adyen N.V. (OTC:ADYEY). Based in Amsterdam, the Netherlands, Adyen N.V. (OTC:ADYEY) is a payments platform. The one-month return of Adyen N.V. (OTC:ADYEY) was -2.90%, and its shares gained 53.88% of their value over the last 52 weeks. On June 27, 2025, Adyen N.V. (OTC:ADYEY) stock closed at $18.38 per share, with a market capitalization of $58.18 billion.
Parnassus Growth Equity Fund stated the following regarding Adyen N.V. (OTC:ADYEY) in its Q1 2025 investor letter:
“We remain overweight in Financials despite selling two positions—MSCI and Adyen N.V. (OTC:ADYEY)—and deploying the proceeds to higher-conviction ideas. Adyen stock had risen since our 2023 purchase, but with no significant improvement in competition, we expect future upside to be limited. We sold the profitable position and redeployed capital to Brown & Brown for its defensive characteristics.”
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Adyen N.V. (OTC:ADYEY) is not on our list of 30 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 undervalued AI stock set for massive gains.
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 ADYEY 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.
