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]

Core Insights - Bristol Gate Capital Partners emphasizes investing in companies with strong free cash flows, disciplined capital allocation, and high dividend growth for superior risk-adjusted returns [1] - The market has shifted towards AI leaders since late 2022, leading to underperformance for the fund due to narrow market breadth [1] - Recent market breadth expansion, along with advancements in the firm's Data Science team's Distant Future Model, presents strong investment opportunities [1] Company Highlights - Applied Materials, Inc. (NASDAQ:AMAT) is highlighted as a leading contributor in Bristol Gate's Q4 2025 investor letter, with a market capitalization of $267.581 billion [2] - The stock closed at $337.17 per share on March 27, 2026, with a one-month return of -9.41% and a 52-week gain of 132.34% [2] - Despite mixed results, optimism around AI-driven demand for advanced logic and high bandwidth memory chips has led to multiple expansions for Applied Materials [3] Market Position - Applied Materials ranks 39th on the list of the 40 Most Popular Stocks Among Hedge Funds heading into 2026, with 111 hedge fund portfolios holding the stock, an increase from 89 in the previous quarter [4] - While Applied Materials is recognized for its potential, certain AI stocks are believed to offer greater upside potential with less downside risk [4] - Morgan Stanley has increased the target price for Applied Materials based on a strong outlook for DRAM spending [5]

Market Performance - The US stock market experienced modest gains in Q4 2025, with the S&P 500 index returning 2.6% and the Russell 1000 Growth index returning 1.1% [1] - The RiverPark Large Growth Fund appreciated by 1.4% during the same period, with a full-year increase of 13.3% compared to 17.4% and 18.6% gains for the respective indexes [1] Fund Insights - The performance of the Russell 1000 Growth Index was uneven, with market leadership remaining concentrated and underlying divergence deepening [1] - Investors showed a preference for companies with durable earnings and progress in monetizing growth, particularly in health care and parts of the AI value chain [1] - The Fund is optimistic about its portfolio, which consists of attractively valued companies expected to generate significant cash flow [1] Company Spotlight: Applied Materials, Inc. - Applied Materials, Inc. (NASDAQ:AMAT) was highlighted as a leading contributor in Q4 2025, benefiting from a rally in semiconductor equipment stocks due to improved wafer-fab spending visibility [2][3] - As of March 24, 2026, Applied Materials' stock closed at $373.99 per share, with a one-month return of -5.31% and a 52-week gain of 148.20% [2] - The company has a market capitalization of $296.802 billion [2] - Management indicated that orders related to AI capacity were tracking ahead of plan, leading to mid-teens growth in semiconductor systems revenue [3] - Strength in services and spares continued, with installed base revenues growing at a high single-digit rate [3] - Investor enthusiasm increased following major foundries raising their 2026 capital expenditure plans, indicating durable multi-year demand for Applied Materials' technologies [3]

Company Overview - TKO Group Holdings, Inc. is headquartered in New York and provides sports entertainment services, focusing on organizing live events and merchandising various products including video games, apparel, and memorabilia, with a market cap of $37.7 billion [1] Market Position - TKO is classified as a large-cap stock due to its market cap exceeding $10 billion, reflecting its substantial size and influence in the entertainment industry, primarily driven by its dominant UFC and WWE brands [2] Stock Performance - TKO's stock has experienced a decline of 14.7% from its 52-week high of $226.94, reached on February 26, and has underperformed the Nasdaq Composite with an 11.2% drop over the past three months compared to the Nasdaq's 7.8% losses [3] - Over a six-month period, TKO shares fell 1.2%, but increased by 26.5% over the past 52 weeks, outperforming the Nasdaq's six-month dip of 3.3% and 19.7% returns over the last year [6] Financial Results - In Q4, TKO reported a revenue of $1.04 billion, exceeding Wall Street forecasts of $1.02 billion, although it reported a loss of $0.08 per share, which was below the expected EPS of $0.14. The company anticipates full-year revenue between $5.7 billion and $5.8 billion [7] Competitive Landscape - TKO's competitor, Madison Square Garden Sports Corp. has outperformed TKO with a 44.6% gain over the past six months and a 57.6% increase over the past 52 weeks [8] Analyst Sentiment - Wall Street analysts maintain a "Moderate Buy" rating for TKO, with a consensus price target of $233.06, indicating a potential upside of 20.5% from current price levels [8]

Core Thesis - Applied Materials, Inc. (AMAT) is positioned for growth due to the accelerating AI-driven semiconductor equipment cycle, with strong demand in packaging and advanced logic sectors [2][5] Financial Performance - For fiscal Q1 2026, AMAT reported revenue of $7.01 billion, exceeding consensus estimates by 2%, and a non-GAAP EPS of $2.38, beating estimates by 7.7% [2] - The Q2 guidance projects revenue of $7.65 billion, approximately 9% above Street expectations, with a non-GAAP EPS of $2.64 [5] Segment Performance - Semiconductor Systems segment achieved record DRAM equipment revenue of $1.75 billion, driven by high-bandwidth memory (HBM) stacking and advanced tools [3] - DRAM now constitutes 34% of the segment's revenue, indicating increased equipment usage as technology advances from 12-Hi to 16-Hi and eventually 20-Hi HBM stacks [3] Innovations and Capacity Expansion - AMAT launched three new systems for 2nm Gate-All-Around transistors and advanced wiring, enhancing process improvements and tool sales for leading-edge fabs [4] - The company is doubling manufacturing capacity and increasing inventory to meet rising demand, reflecting strong customer commitment [3] Market Dynamics - Global Services revenue reached $1.56 billion, contributing to a recurring, high-margin revenue stream [5] - The company noted a slight decline in exposure to China, while growth in Taiwan and Korea helped offset regional challenges [5] - Overall, the results indicate that AI-driven memory and advanced logic are leading to a structurally higher and accelerating equipment cycle, positioning AMAT for sustained multi-year growth [5]

Core Viewpoint - Circumference Group has established a new position in Avantor by acquiring 305,000 shares valued at $3.5 million, representing 3.77% of its reportable assets as of December 31, 2025 [1][2][8]. Company Overview - Avantor, Inc. is a leading global provider of mission-critical products and services for the life sciences and advanced technology industries, leveraging a broad product portfolio to support research and production needs [6]. - The company reported a total revenue of $6.55 billion and a net income loss of $530.20 million for the trailing twelve months (TTM) [4]. Financial Performance - Avantor's quarterly sales decreased by 1% to $1.66 billion, while full-year revenue exceeded $6.5 billion [10]. - The company generated an adjusted EBITDA of over $1 billion and free cash flow approaching $500 million, despite a full-year loss due to one-time charges [10]. Market Position - Avantor's market capitalization stands at $5.1 billion, with shares priced at $7.51, reflecting a 54% decline over the past year, underperforming the S&P 500, which increased by about 15% during the same period [4][8]. Strategic Initiatives - The management's "Revival" program aims to address execution and cost structure issues, focusing on improving go-to-market strategies and supply chain efficiencies [11]. - Unlike high-growth biotech firms, Avantor benefits from stable demand for lab consumables and production workflows, which could enhance its cash generation capabilities if margins recover effectively [11].

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Company Overview - Snap-on Incorporated, based in Kenosha, Wisconsin, manufactures and markets tools, equipment, diagnostics, and repair information systems for professional users globally, with a market capitalization of $18.8 billion [1]. Market Position - Snap-on fits into the "large-cap stocks" category, reflecting its substantial size and influence in the tools and accessories industry [2]. Stock Performance - The stock reached a 52-week high of $390.13 on February 12 and has since declined by 7.2%. Over the past three months, the stock rose by 4.6%, underperforming the State Street Industrials Select Sector SPDR ETF's (XLI) 5.2% increase [3]. - Over the past 52 weeks, Snap-on's shares increased by 9.9%, but this was still below XLI's 22.7% rise during the same period [6]. Earnings Report - On February 5, Snap-on released its Q4 2025 earnings, reporting net sales of $1.2 billion, a 2.8% increase from the previous year, and adjusted EPS of $4.94, both surpassing estimates. However, the stock dropped by 3.2% following the announcement [7]. Investor Sentiment - Despite the earnings report, investor confidence has been declining due to disappointing organic revenue growth and flat EPS over the past two years. There are concerns about diminishing returns on capital [8]. - Compared to its peer, RBC Bearings Incorporated, Snap-on has underperformed, with RBC's stock surging by 63.3% over the past 52 weeks. The sentiment on Snap-on remains moderately optimistic, with a consensus rating of "Moderate Buy" among analysts and a mean price target of $376.86, indicating a 4.1% upside potential from current levels [9].

Group 1 - Applied Materials, Inc. (NASDAQ:AMAT) is highlighted as one of Billionaire Ken Fisher's notable investment moves for 2026, showcasing Fisher's stock picking skills [1] - The company has had a fluctuating relationship with Fisher's fund, being part of his 13F portfolio during significant tech trends, including the rise of smartphones and AI [1][2] - Despite the increasing demand for chips driven by AI, geopolitical tensions and trade wars have created uncertainty in the semiconductor sector [2] Group 2 - Applied Materials provides materials engineering solutions, equipment, services, and software to the semiconductor industry across various regions, including the US, China, and Europe [3] - While there is potential for AMAT as an investment, some analysts suggest that other AI stocks may offer greater upside potential with less risk [4]

Company Overview - Avantor provides products and services for the life sciences, healthcare, and advanced technology industries, supporting complex research, development, and production workflows for clients [5] - The company offers a broad portfolio of laboratory materials, consumables, equipment, and specialty procurement services, generating revenue through high-purity chemicals, reagents, lab supplies, and value-added services [7] Financial Performance - Avantor reported a revenue of $6.55 billion for the trailing twelve months (TTM), reflecting a 3% decline compared to the previous year [8] - The company experienced a net loss of $530.2 million for the full year, a significant drop from a profit of $711.5 million in 2024 [8] - As of the latest data, Avantor's stock price was $7.80, down 50% over the past year, underperforming the S&P 500's approximately 20% gain during the same period [6] Recent Developments - Eversept Partners increased its position in Avantor by acquiring 2,252,202 shares, valued at an estimated $27.72 million, bringing its total holdings to 3,176,644 shares worth $36.40 million [2][6] - The value of Eversept's stake in Avantor rose by $24.87 million, influenced by both trading activity and stock price movement [2] - Avantor's "Revival program," aimed at optimizing its go-to-market strategy, upgrading its e-commerce channel, and relaunching its VWR brand, was highlighted by CEO Emmanuel Ligner as a key initiative for recovery [8][10] Investment Strategy - Eversept's investment in Avantor represents 1.83% of its reported U.S. equity holdings, indicating a diversified strategy focused on the broader life sciences ecosystem, alongside other biotech and healthcare innovators [6][9] - The success of Avantor's "Revival" program is seen as critical for long-term investors, with potential for improved growth and margin stabilization, which could enhance the company's valuation in the future [10]