Parnassus Mid Cap Growth Fund's Q2 2025 Performance and Royal Caribbean Cruises (RCL) Analysis
The Parnassus Mid Cap Growth Fund released its second-quarter 2025 investor letter, revealing a 13.29% return (net of fees) compared to the Russell Midcap Growth Index’s 18.20%. The letter highlights stock selection challenges in the Industrials and Information Technology sectors, while holdings in the Financials sector were beneficial. The fund also discussed its position in Royal Caribbean Cruises Ltd. (NYSE:RCL).
Royal Caribbean Cruises Ltd. (RCL) Overview
Royal Caribbean Cruises Ltd. (NYSE:RCL) is a global cruise company operator. Despite a one-month return of -10.88%, its shares have gained 78.34% over the past 52 weeks. As of September 24, 2025, RCL stock closed at $327.03 per share, with a market capitalization of $88.83 billion.
Parnassus' Investment Rationale for RCL
The Parnassus Mid Cap Growth Fund's investor letter stated, "Within the Consumer Discretionary sector, we invested in Royal Caribbean Cruises Ltd. (NYSE:RCL). We find the cruise industry attractive due to favorable demographic shifts, and we believe Royal Caribbean is positioned well because it is differentiating itself through new, larger ships and private island destinations. We believe that Royal Caribbean is the highest-quality major cruise operator, differentiating itself with newer and larger ships and private island destinations that support pricing power."
Hedge Fund Sentiment and Alternative Investment Opportunities
While 43 hedge fund portfolios held Royal Caribbean Cruises Ltd. (NYSE:RCL) at the end of the second quarter (down from 57 in the previous quarter), the article suggests exploring alternative investment opportunities, particularly in AI stocks. The article proposes that select AI stocks may offer greater upside potential with less downside risk.
The Undervalued AI Stock Powering the Future
The article shifts focus to a "little-known" company that could be a key beneficiary of the AI energy boom. This company owns critical energy infrastructure assets and is positioned to profit from the increasing electricity demands of AI data centers. It is a debt-free company with a significant cash reserve. The firm is quietly collecting fees on every drop of exported LNG. It is tied to the AI infrastructure supercycle, the onshoring boom driven by Trump-era tariffs and the surge in U.S. LNG exports.
The Investment Opportunity
This company is trading at less than 7 times earnings excluding cash and investments. It also owns a stake in another AI play. With the world’s brightest minds flocking to AI and a looming energy crisis the time to invest is NOW.
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