Parnassus Mid Cap Fund Exited Pool Corp. (POOL) Due to Sluggish Demand in the Pool Market

Performance Summary - Parnassus Mid Cap Fund achieved a return of 1.17% in Q4 2025, outperforming the Russell Midcap Index which returned 0.16% [1] - Year-to-date, the Fund returned 12.85%, compared to the index's 10.60% [1] - The Fund's performance was bolstered by investments in the Information Technology sector and Utilities [1] Outlook - The Fund is optimistic about mid-cap stocks driving market growth in 2026, contingent on continued economic expansion beyond artificial intelligence [1] - In case of a market downturn, the Fund believes its portfolio of financially solid companies will provide downside protection [1] Pool Corporation Analysis - Pool Corporation (NASDAQ:POOL) is a leading distributor of swimming pool supplies with a market capitalization of $7.38 billion [2] - The stock closed at $200.49 on March 30, 2026, with a one-month return of -15.95% and a 52-week decline of 37.52% [2] - Parnassus Mid Cap Fund exited its position in Pool Corporation due to high valuation relative to growth potential amid sluggish demand in the pool market [3] Hedge Fund Interest - Pool Corporation was held by 45 hedge fund portfolios at the end of Q4 2025, an increase from 41 in the previous quarter [4] - Despite its potential, the Fund believes that certain AI stocks present greater upside and lower downside risk compared to Pool Corporation [4] - Pool Corporation's total sales in Q4 2025 were $982 million, just 1% below the previous year's level [4]