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Parnassus Still Finds Value When Value Investing Lags: (PARNX)
One interesting holding of PARNX is Mattel (MTTL).
Hurt by troubles in toyland (Toys R Us) as well it its own restructuring MTTL is off almost 50% this year.
Vanguard Primecap (VPMCX) holds an almost 6% stake in MTTL. In September, PARNX added 25% to its already large fund position of MTTL. In June, VPMCX bought 16% more of MTTL.
I tend not to be an individual stock investor, but one strategy that I use to form a potential list of individual stocks is by evaluating the holdings of concentrated mutual funds like PARNX. Especially when these funds pride themselves on finding value.
MTTL seems to be one of those holdings that is under performing at the moment and talented fund managers (both VPMCX and PARNX) see the stock as a worthy hold and buy.
Just a teacher being a (retired) teacher. Details matter. Thanks for the shout out. Wish I had acted on this, but owning Primecap (POAGX up .5% tonight and VHCOX up slightly tonight) helps soothes the wishful "gain pain" or "investors remorse"...whatever you call, "choking on your wine as you hear this "20% gain" on Nightly Business Report".
Observations are a lot different than the credit that these fund managers deserve for the conviction that they display for identifying the value in these particular companies and the conviction to buy when it was low and out of favor.
Comments
Hurt by troubles in toyland (Toys R Us) as well it its own restructuring MTTL is off almost 50% this year.
Vanguard Primecap (VPMCX) holds an almost 6% stake in MTTL. In September, PARNX added 25% to its already large fund position of MTTL. In June, VPMCX bought 16% more of MTTL.
I tend not to be an individual stock investor, but one strategy that I use to form a potential list of individual stocks is by evaluating the holdings of concentrated mutual funds like PARNX. Especially when these funds pride themselves on finding value.
MTTL seems to be one of those holdings that is under performing at the moment and talented fund managers (both VPMCX and PARNX) see the stock as a worthy hold and buy.
Just a teacher being a (retired) teacher. Details matter. Thanks for the shout out. Wish I had acted on this, but owning Primecap (POAGX up .5% tonight and VHCOX up slightly tonight) helps soothes the wishful "gain pain" or "investors remorse"...whatever you call, "choking on your wine as you hear this "20% gain" on Nightly Business Report".
Observations are a lot different than the credit that these fund managers deserve for the conviction that they display for identifying the value in these particular companies and the conviction to buy when it was low and out of favor.
This is why you should own them!