The Fund Exited Insmed (INSM) After the Investment Thesis Played Out

Parnassus Investments announced in its second-quarter 2026 investor letter that it had exited its position in Insmed Incorporated (NASDAQ:INSM), a clinical-stage biotechnology company. The Fund's holdings in Information Technology and Consumer Discretionary sectors contributed to its 17.49% net return, outpacing the Russell 1000 Growth Index's 16.74%.

However, Insmed shares declined 7.49% over the past month, and 16.51% over the past year, leading to the Fund's decision to redeploy capital to Twist Bioscience. Despite positive TPIP data and upward revisions to Brinsupri sales, the Fund believed that Insmed's growth potential had largely been realized. The Fund currently holds 88 hedge fund portfolios in Insmed, down from 67 in the previous quarter, and still perceives AI stocks as offering greater upside potential with less downside risk.