Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a robust second quarter in which markets rebounded from the sell-off, the Russell Mid Cap Index continued to rise, delivering impressive returns for the quarter. The Fund (Investor Shares) returned 5.49% (net of fees) in the quarter, compared to a 5.33% return for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as StandardAero, Inc. (NYSE:SARO). StandardAero, Inc. (NYSE:SARO) is an aerospace engine aftermarket services provider for fixed and rotary wing aircraft. On January 7, 2026, StandardAero, Inc. (NYSE:SARO) stock closed at $30.36 per share. One-month return of StandardAero, Inc. (NYSE:SARO) was 10.36%, and its shares gained 31.77% of their value over the last 52 weeks. StandardAero, Inc. (NYSE:SARO) has a market capitalization of $10.155 billion.
Parnassus Core Equity Fund stated the following regarding StandardAero, Inc. (NYSE:SARO) in its third quarter 2025 investor letter:
“We also added StandardAero, Inc. (NYSE:SARO), the largest independent provider of aircraft engine maintenance and component repair. StandardAero benefits from aging fleets, original equipment manufacturer outsourcing and long-term growth in global air travel. We believe that StandardAero has an attractive return profile supported by durable demand and margin expansion potential. StandardAero’s ability to quickly and reliably service a variety of aircraft engines in its global shop network makes it a partner of choice in the commercial, military and business aviation markets. Engine maintenance, repair and overhaul work is predictable and nondiscretionary, and StandardAero has opportunities for growth from servicing new engines and working with more aircraft owners.”
StandardAero, Inc. (NYSE:SARO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held StandardAero, Inc. (NYSE:SARO) at the end of the third quarter, compared to 48 in the previous quarter. While we acknowledge the potential of StandardAero, Inc. (NYSE:SARO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
