Health care information technology provider Cerner (NASDAQ:CERN) added 80 basis points to the Fund's return, as its total return was 28.5%. The shares moved higher after activist firm Starboard Value announced an investment in the company. Cerner reached an agreement with the activist, promising to increase its operating margins, repurchase $1.5 billion of stock and add four new directors to its board. We're pleased management is unlocking value, and we believe that Cerner remains well positioned to be a long-term winner in the health care sector.
From Parnassus Fund's second-quarter 2019 commentary.
This article first appeared on GuruFocus.
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- CERN 15-Year Financial Data
- The intrinsic value of CERN
- Peter Lynch Chart of CERN