Core Insights - PGIM Jennison Health Sciences Fund's second-quarter 2025 investor letter highlights significant volatility in equities, with the S&P 1500 Health Care Index declining 6.9% while the S&P 500 returned 10.9% [1] - The fund's top holdings include Neurocrine Biosciences, Inc., which has shown a one-month return of 5.56% and a 52-week gain of 26.52% [2] Market Performance - The S&P 1500 Health Care Index underperformed the S&P 500 in June, gaining only 1.9% compared to the S&P 500's 5.1% [1] - Health care providers & services, life sciences tools & services, biotechnology, and pharmaceuticals underperformed the Index, while healthcare technology and medtech sectors gained [1] Company Focus: Neurocrine Biosciences, Inc. - Neurocrine Biosciences, Inc. reported stronger than expected first-quarter results and remains optimistic about its second-quarter performance, indicating a recovery from previous guidance issues [3] - As of September 24, 2025, Neurocrine's stock closed at $146.67 with a market capitalization of $14.547 billion [2] - The number of hedge funds holding Neurocrine decreased from 63 to 59 in the second quarter, suggesting a shift in investment interest [3]

Group 1 - The core viewpoint of the article highlights the significant rise in the stock prices of Alibaba and other tech giants in the Hong Kong market, driven by the integration of AI technologies and the positive sentiment surrounding the "new productive forces" in the market [2][13][14] - Alibaba's stock surged by 9.16%, reaching a four-year high, indicating strong investor interest and confidence in the company's growth potential within the AI sector [2][13] - The article emphasizes the strategic positioning of Hua Bao Fund in the Hong Kong market, with multiple ETFs focusing on sectors like innovative drugs, low-volatility dividends, and internet consumption, which are heavily invested in leading tech companies like Alibaba [2][3][11] Group 2 - The Hong Kong Top 30 ETF (520560) launched by Hua Bao Fund is set to track the Hang Seng China (Hong Kong-listed) 30 Index, which consists of the largest 30 companies by market capitalization, reflecting the performance of major Chinese companies listed in Hong Kong [3][6] - The top ten constituents of the Hang Seng China (Hong Kong-listed) 30 Index include Alibaba, Tencent, and Xiaomi, with Alibaba holding an 18.41% weight in the index, showcasing its dominance in the tech sector [4][6] - The article notes that the Hong Kong Internet ETF (513770) has also seen significant growth, with assets exceeding 11.5 billion, and Alibaba being the largest weight in its index at 18.11%, indicating strong performance and investor interest in tech stocks [7][11] Group 3 - The article discusses the favorable market conditions for Hong Kong stocks, driven by the revaluation of Chinese assets and the global liquidity environment, which has contributed to the bullish trend in the market [11][15] - Analysts predict a potential long-term bull market for both A-shares and Hong Kong stocks, driven by a shift in wealth allocation towards equities and a positive feedback loop in the Hong Kong market ecosystem [15][16] - The article highlights the increasing inflow of southbound capital into Hong Kong stocks, with net inflows exceeding 1 trillion HKD in 2025, further supporting the bullish outlook for the market [15][16]

Core Insights - The article highlights the significant rise of Alibaba's stock, which surged by 9.16%, marking a four-year high, and reflects the growing enthusiasm for tech stocks in the Hong Kong market, particularly in the context of AI integration [1][7] - The article discusses the strategic positioning of Huabao Fund in the Hong Kong market, emphasizing its focus on sectors like innovative drugs, low-volatility dividends, and internet consumption, with several ETFs heavily invested in tech companies like Alibaba [1][2] Group 1: Market Performance - Alibaba's stock performance is seen as a symbol of the broader appeal of core assets in the Hong Kong market, attracting global capital due to its valuation advantages and growth potential [1][7] - The Hong Kong market is experiencing a bullish trend, with significant inflows of southbound capital, exceeding 1 trillion HKD in 2025, indicating a positive shift in investor sentiment [8][9] Group 2: Fund Strategies - Huabao Fund's Hong Kong Large Cap 30 ETF (520560) and other related funds are designed to track the performance of the Hang Seng China (Hong Kong Listed) 30 Index, which consists of the largest 30 companies by market capitalization [2][3] - The Hong Kong Internet ETF (513770) has seen rapid growth in assets, exceeding 11.5 billion, and is heavily weighted towards Alibaba, which constitutes 18.11% of its index [4][5] Group 3: AI Integration and Future Outlook - Alibaba's collaboration with NVIDIA on Physical AI and its plans for a 380 billion investment in AI infrastructure signal a robust commitment to advancing its technological capabilities [7] - Analysts predict a potential long-term bull market for both A-shares and Hong Kong stocks, driven by a shift in wealth allocation towards equities and a favorable market environment [8][9]

Group 1: Fund Performance - Parnassus Mid Cap Growth Fund returned 13.29% (net of fees) in Q2 2025, underperforming the Russell Midcap Growth Index which returned 18.20% [1] - Stock selection in the Industrials and Information Technology sectors negatively impacted the fund's performance, while holdings in the Financials sector contributed positively [1] Group 2: StandardAero, Inc. Overview - StandardAero, Inc. (NYSE:SARO) is an aerospace engine aftermarket services provider, with a one-month return of -4.15% and a year-to-date gain of 4.36% as of September 24, 2025, when its stock closed at $25.84 per share and had a market capitalization of $8.643 billion [2] - The fund initiated a position in StandardAero due to its resilient business model, which provides strong recurring revenue from non-discretionary services [3] Group 3: Investment Sentiment - StandardAero, Inc. was held by 48 hedge fund portfolios at the end of Q2 2025, a slight decrease from 50 in the previous quarter [4] - While StandardAero is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Group 1 - Parnassus Mid Cap Growth Fund reported a return of 13.29% (net of fees) for Q2 2025, underperforming the Russell Midcap Growth Index which returned 18.20% [1] - The fund's performance was negatively impacted by stock selection in the Industrials and Information Technology sectors, while holdings in the Financials sector contributed positively [1] - The fund highlighted SharkNinja, Inc. (NYSE:SN) as a key investment, noting its innovative product design across multiple consumer categories [2][3] Group 2 - SharkNinja, Inc. (NYSE:SN) experienced a one-month return of -7.41% and a 52-week gain of 1.55%, with a market capitalization of $15.192 billion as of September 24, 2025 [2] - The company is recognized for its potential growth driven by market share gains, expansion into new categories, and international growth opportunities [3] - SharkNinja, Inc. was held by 65 hedge fund portfolios at the end of Q2 2025, a decrease from 69 in the previous quarter, indicating a shift in hedge fund interest [4]

Core Viewpoint - Axon is identified as a strong investment opportunity due to its solid growth, robust business model, dominant brand presence, strong financial results, and significant untapped potential in AI [1]. Company Analysis - Axon demonstrates solid growth and has a strong business model that positions it well in the market [1]. - The company has established a dominant brand, which contributes to its competitive advantage [1]. - Financial results indicate that Axon is performing well, further supporting its attractiveness as an investment [1]. - There is considerable untapped potential in AI for Axon, suggesting future growth opportunities [1].

Core Viewpoint - Parnassus Mid Cap Growth Fund's second quarter 2025 performance was below the benchmark, with a return of 13.29% compared to the Russell Midcap Growth Index's 18.20% [1] Fund Performance - The Fund's stock selection in the Industrials and Information Technology sectors negatively impacted its performance, while holdings in the Financials sector contributed positively [1] Company Focus: Royal Caribbean Cruises Ltd. - Royal Caribbean Cruises Ltd. (NYSE:RCL) is highlighted as a key investment within the Consumer Discretionary sector, with a one-month return of -10.88% and a 52-week gain of 78.34% [2][3] - As of September 24, 2025, Royal Caribbean's stock closed at $327.03 per share, with a market capitalization of $88.83 billion [2] - The cruise industry is viewed as attractive due to favorable demographic shifts, and Royal Caribbean is seen as a high-quality operator due to its newer, larger ships and private island destinations, which support pricing power [3] Hedge Fund Interest - Royal Caribbean Cruises Ltd. was held by 43 hedge fund portfolios at the end of the second quarter, a decrease from 57 in the previous quarter [4]

Group 1: Fund Performance - Parnassus Mid Cap Growth Fund returned 13.29% (net of fees) in Q2 2025, underperforming the Russell Midcap Growth Index which returned 18.20% [1] - Stock selection in the Industrials and Information Technology sectors negatively impacted the fund's performance, while holdings in the Financials sector contributed positively [1] Group 2: Alcon Inc. Overview - Alcon Inc. (NYSE:ALC) is a market leader in the eye care industry, headquartered in Geneva, Switzerland, focusing on research, development, manufacturing, and distribution of eye care products [2][3] - Alcon Inc. reported a one-month return of -5.59% and a 52-week loss of 24.30%, with a closing stock price of $75.00 and a market capitalization of $37.352 billion as of September 24, 2025 [2] Group 3: Investment Insights on Alcon Inc. - Parnassus Mid Cap Growth Fund initiated a position in Alcon Inc., expecting its culture of innovation to drive market share gains and revenue growth [3] - Alcon Inc. reported sales of $2.6 billion in Q2 2025, reflecting a 3% increase compared to the previous year [4] - Despite recognizing Alcon's potential, the fund believes certain AI stocks present greater upside potential and lower downside risk [4]

Group 1 - The 2025 Yunqi Conference is held in Hangzhou, Zhejiang Province from the 24th to the 26th, gathering over 2,000 guests from more than 50 countries to discuss cutting-edge directions in AI, cloud computing, and industrial applications [1]

Group 1 - Parnassus Mid Cap Growth Fund reported a return of 13.29% (net of fees) for Q2 2025, underperforming the Russell Midcap Growth Index which returned 18.20% [1] - The fund's performance was negatively impacted by stock selection in the Industrials and Information Technology sectors, while holdings in the Financials sector contributed positively [1] - The fund highlighted J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) as a key stock, which experienced a one-month return of -7.72% and a 52-week decline of 22.53% [2] Group 2 - J.B. Hunt Transport Services, Inc. is a leading logistics and intermodal transportation provider in the U.S., but its stock declined due to a sluggish freight cycle and guidance that fell short of expectations [3] - As of September 24, 2025, J.B. Hunt's stock closed at $132.87 with a market capitalization of $12.862 billion [2] - The number of hedge funds holding J.B. Hunt decreased from 40 to 37 in the second quarter, indicating a decline in popularity among hedge fund portfolios [4]