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The Parnassus Fund Exits Cognizant, Cuts Alliance Data Systems

Independent investment management company Parnassus Investments was founded by Jerome Dodson (Trades, Portfolio) in 1984. The company's Parnassus Fund sold shares of the following companies during the recently-ended third quarter of 2019.


Cognizant Technology Solutions Corp

Parnassus Investments closed its Cognizant Technology Solutions Corp. (CTSH) position. The portfolio was impacted by -4.26%.

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The IT services provider has a market cap of $33.42 billion and an enterprise value of $32.04 billion.


GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 18.95% and return on assets of 13.37% are outperforming 81% of companies in the application software industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 1.85 is below the industry median of 2.51.

The largest guru shareholder of the company is Dodge & Cox with 3.12% of outstanding shares, followed by Al Gore (Trades, Portfolio) with 1.89% and Richard Pzena (Trades, Portfolio)'s Pzena Investment Management with 1.34%.

Alliance Data Systems Corp

The investor trimmed its Alliance Data Systems Corp. (ADS) holding by 51.03%. The portfolio was impacted by -2.35%.

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The company has a market cap of $5.47 billion and an enterprise value of $14.31 billion.


GuruFocus gives the company a profitability and growth rating of 9 out of 10. The return on equity of 38.22% and return on assets of 2.91% are outperforming 57% of companies in the Credit Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.31 is above the industry median of 0.18.

The largest guru shareholder of the company is Jeff Ubben (Trades, Portfolio)'s ValueAct Holdings LP with 6.94% of outstanding shares, followed by the Parnassus Endeavor Fund (Trades, Portfolio) with 2.03% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 1.46%.

Cadence Design Systems Inc.

The Cadence Design Systems Inc. (CDNS) position was reduced by 42%, impacting the portfolio by -1.87%.

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The maintenance services provider has a market cap of $18.26 billion and an enterprise value of $18.04 billion

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 31.35% and return on assets of 17.02% are underperforming 92% of companies in the Application Software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.5 is below the industry median of 2.51.

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.59% of outstanding shares, followed by Dodge & Cox with 0.15% and the Parnassus Fund with 0.12%.

Starbucks Corp

The guru reduced the Starbucks Corp. (SBUX) position by 50.68%. The trade had an impact of -1.84% on the portfolio.

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The company, which sells coffee, espresso, teas and cold blended beverages, has a market cap of $99.57 billion and an enterprise value of $105.89 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on assets of 17.79% is outperforming 89% of companies in the restaurants industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.43 is below the industry median of 0.47.

The Simons' firm is the company's largest guru shareholder with 0.76% of outstanding shares, followed by Bill Ackman (Trades, Portfolio) with 0.75% and Pioneer Investments (Trades, Portfolio) with 0.15%.

Motorola Solutions Inc.

The guru reduced its Motorola Solutions Inc. (MSI) holding by 20.51%. The portfolio was impacted by -1.05%.

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The company, which manufactures devices such as two-way portable radios, has a market cap of $27.19 billion and an enterprise value of $32.22 billion.


GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on assets of 10.87% is outperforming 87% of companies in the Communication Equipment industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is below the industry median of 1.51.

The largest guru shareholder of the company is Philippe Laffont (Trades, Portfolio) with 1.03% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.18% and Pioneer Investments (Trades, Portfolio) with 0.18%.

Signature Bank

The investor curbed his Signature Bank (SBNY) stake by 29.96%. The portfolio was impacted by -0.87%.

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The company has a market cap of $6.63 billion and an enterprise value of $5.03 billion.


GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 13.78% and return on assets of 1.29% are outperforming 71% of companies in the Banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.06 is below the industry median of 1.19.

First Pacific Advisors (Trades, Portfolio) is the company's largest guru shareholder with 1.49% of outstanding shares, followed by Steven Romick (Trades, Portfolio)'s FPA Crescent Fund with 1.34%.

Thomson Reuters Corp.

The guru reduced its Thomson Reuters Corp. (TRI) holding by 13.51%. The portfolio was impacted by -0.60%.

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The company has a market cap of $33.62 billion and an enterprise value of $34.70 billion.


GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 39.4% and return on assets of 19.4% are outperforming 94% of companies in the brokers and exchanges industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.67 is below the industry median of 2.4.

The largest guru shareholder of the company is Pioneer Investments (Trades, Portfolio) with 0.12% of outstanding shares, followed by the Parnassus Fund with 0.11% and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.04%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.