Connor Young: Silver-rated Parnassus Core Equity and Neutral-rated Parnassus Endeavor have much in common. The managers--Todd Ahlsten and Ben Allen for Parnassus Core Equity and Jerome Dodson and Billy Hwan for Parnassus Endeavor--seek firms with sustainable competitive advantages, relevant products, capable management, and ethical practices. Management buys with conviction and tends to hang on for the long term; indeed, both funds hold just 30 to 40 names and have below average portfolio turnover.
Despite the similar approach, the funds have distinct portfolios. Parnassus Core Equity has a clear quality tilt, which has helped protect against losses in down markets and dampen volatility. The fund has a Morningstar Risk rating of low. By contrast, Dodson and Hwan are less willing to pay up for quality in Parnassus Endeavor; they purchase only stocks trading at a
Both funds receive positive process ratings, but greater conviction in Parnassus Core Equity's management earns it a higher Morningstar Analyst Rating.