Funds of Parnassusinvestment management company, released the “Parnassus Mid Cap” investor letter for the fourth quarter of 2025. A copy of the book is available for download here. Q4 2025 marked a consecutive quarter of outperformance for the fund, returning 1.17% (net of fees) for the quarter, surpassing the 0.16% return of the Russell Midcap Index. Performance is supported by investments in the Information Technology sector, and allocations to Utilities. During the quarter, the market began to grow beyond artificial intelligence. YTD, the Fund has returned 12.85% (fee value) compared to a 10.60% return for the index. Looking ahead to 2026, the Fund is optimistic, as mid-cap stocks may outperform the market if economic growth continues to expand beyond AI. In the event of a market downturn, the Fund believes that its portfolio of leading companies with strong financial positions will provide downside protection. In addition, please check the Fund’s top five funds to know their best choices in 2025.
In its 2025 Q4 investor note, Parnassus Mid Cap Fund highlighted stocks like CMS Energy Corporation (NYSE:CMS). CMS Energy Corporation (NYSE:CMS) is a Michigan-based energy company that provides electric and natural gas services. On March 30, 2026, CMS Energy Corporation (NYSE:CMS) closed at $77.21 per share. One month return of CMS Energy Corporation (NYSE:CMS) was -0.76%, and its shares gained 2.75% in last 52 weeks. CMS Energy Corporation (NYSE:CMS) has a market capitalization of $23.66 billion.
Parnassus Mid Cap Fund said the following about CMS Energy Corporation (NYSE:CMS) in its fourth quarter 2025 investor letter:
“We have also added services based in Michigan Company CMS Energy Corporation (NYSE:CMS), operating on a positive regulatory backdrop and providing clear visibility into long-term growth. CMS Energy is a stable, well-managed utility with a strong history of consistent growth, supported by Michigan’s most constructive regulatory environment. The company’s current investment program and other initiatives are expected to accelerate earnings growth. Adding CMS Energy improves the portfolio’s defensive position and reduces the portfolio’s underweight in Utilities.”
CMS Energy Corporation (NYSE:CMS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds Entering 2026. According to our data, 52 hedge fund portfolios held CMS Energy Corporation (NYSE:CMS) at the end of the fourth quarter, up from 42 last quarter. While we acknowledge the potential of CMS Energy Corporation (NYSE:CMS) as an investment, we believe certain AI stocks offer greater potential and carry less downside risk. If you’re looking for an extremely overlooked AI stock that will benefit greatly from the Trump-era costs and sea trend, check out our free report best short term AI stock.
