2 / 5 Stars
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Zacks Investment Research
Standard & Poor's
1 / 5 Stars
#147 in Small Blend
U.S. News evaluated 225 Small Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 18.21 percent over the past year, 7.50 percent over the past three years, and 21.57 percent over the past five years.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-3.4%|
|3 Years (Annualized)||7.5%|
|5 Years (Annualized)||21.6%|
|10 Years (Annualized)||N/A|
Parnassus Small Cap has busted through barriers and kept on running.
As of February 05, 2014, the fund has assets totaling almost $736.16 million invested in 35 different holdings. Its portfolio consists of shares of small companies.
A commonly held belief is that socially responsible funds start at a disadvantage. After all, since the funds necessarily screen out companies that don't match their values, they have a smaller universe from which to pick attractive stocks. But that hasn't stopped Parnassus Small Cap from leaving the competition in the dust. In 2008, for instance, the fund lost 12 percent less than the S&P 500. Meanwhile, it rocketed to a 42 percent gain in 2009. As of the end of September, the fund's trailing three-year returns landed it in the top 1 percent of Morningstar's small blend category.
Jerome Dodson has managed the fund since its 2005 inception. Dodson looks for undervalued companies that pass the fund's social and environmental screens, and he's shown a penchant for consistently picking winners. By sector, Dodson likes technology companies, with names like Electronics for Imaging, Brocade Communications Systems, and Mentor Graphics occupying prominent spots in the fund's portfolio. Lately, Dodson hasn't been afraid of dipping far down into the market capitalization spectrum. According to Morningstar, 12 percent of the fund's stock holdings are currently micro-caps. The fund has returned 18.21 percent over the past year, 7.50 percent over the past three years, and 21.57 percent over the past five years.
Dodson likes undervalued companies with strong business models. Like the rest of the Parnassus funds, this one screens out companies from the alcohol, tobacco, gambling, and weapons-contracting industries, as well as companies that generate electricity from nuclear power. For the most part, the fund's screening process has had a neutral effect on its performance. "I would argue that it doesn't hurt, but it doesn't necessarily help either," says Dodson.
Role in Portfolio
Morningstar calls the fund a "supporting player."
Jerome Dodson manages the fund.
Parnassus Small Cap Fund has an expense ratio of 1.20 percent.
Like all stock funds, this one comes with some risks.