Parnassus Investments, an investment management company, spotlighted GE Vernova Inc. (NYSE: GEV) as a new position in its second-quarter 2026 investor letter for the Parnassus Core Equity Fund.
The fund delivered a return of 16.83% in the second quarter of 2026, outperforming the S&P 500’s gain of 15.20% over the same period.
Performance was driven by holdings in Information Technology and Communication Services, while the fund’s absence of Energy exposure also contributed positively to relative returns.
Financials and Health Care were identified as detractors from overall fund performance during the quarter, partially offsetting gains made elsewhere in the portfolio.
Looking ahead, the fund’s manager remains constructively bullish on U.S. equities while flagging concerns around narrow market leadership, trade tensions, inflation, and geopolitical risks.
The fund is positioning for long-term growth through AI infrastructure, semiconductors, electrification, and industrial automation, while maintaining defensive exposure to quality compounding businesses.
In its quarterly letter, Parnassus Core Equity Fund described GE Vernova as a compelling value opportunity after a significant prior selloff had brought the stock to an attractive valuation.
The fund stated: “GE Vernova (NYSE: GEV), another new position, had previously sold off significantly and reached a valuation that we found compelling. Shares of the energy equipment manufacturer gained on increasing confidence about the durability of AI supply chain power needs.”
GE Vernova provides power generation, electrification, and grid solutions globally, positioning it directly in the path of rising electricity demand driven by AI data center buildouts.
Shares of GE Vernova traded between $530.16 and $1,195.94 over the past 52 weeks, closing at approximately $1,039.90 on August 13, 2026, giving the company a market capitalization of roughly $279.50 billion.
The stock posted a one-month return of -0.80%, though longer-term momentum remains a focus for institutional investors tracking AI-linked infrastructure themes.
According to available data, 118 hedge fund portfolios held GE Vernova at the end of the first quarter of 2026, up from 115 in the prior quarter, reflecting growing institutional conviction in the stock.
GE Vernova ranks 29th on a widely tracked list of the 40 most popular stocks among hedge funds heading into 2026, underscoring its rising profile among large institutional allocators.
The broader investment thesis centers on the long-term durability of power demand tied to AI supply chains, with energy infrastructure companies like GE Vernova seen as structural beneficiaries of that trend.
